Glossary


Rating	The measure of the creditworthiness of a borrower by special rating agencies such as Standard & Poor?s or Moody’s. As a rule, UBS bond funds principally invest in bonds issued by prime borrowers.
Real estate funds	Investment funds investing in residential and business properties. UBS real estate funds invest exclusively in Switzerland. These funds enable investors to participate in the real estate sector with just small sums of money without incurring the administrative expenses associated with direct investments.
Real value	Post facto calculation of the actual asset value of a property, i.e. the cost of reconstructing a building of the same standard, taking into account the depreciation due to age that has occurred in the meantime and the value of the land.
Redemption commission	The commission charged by the distribution unit to the investor upon redemption of units.
Redemption of units / stock-exchange trading	Real estate fund units may be traded daily on the stock exchange or presented to the fund management company for redemption at the end of a financial year subject to a 12-month notice period. The repayment is made two months after expiry of the notice period.
Redemption plan	Speciality of the UBS Investment Fund Account: Once the investor’s account has reached CHF/EUR/USD 100,000, he or she can regularly withdraw an amount. The investors determine the amount (by either receiving the gains the account generates or directly drawing down assets) they would like to have transferred, to which account, and on which dates.
Redemption price	The price at which an investment fund is obliged to redeem units, which is charged to the fund assets.
Redemption price	The price at which the fund management is obligated to buy back units, subject to the period of notice prescribed by law (net asset value minus any commission in accordance with the fund regulations).
Reference currency	Currency in which an investor normally thinks, calculates and fulfils his or her liabilities. It is also the currency in which the performance of an investment is measured.
Reference index	See benchmark.
Regional fund	An investment fund which invests in a specific geographic region (e.g. Scandinavia) or a particular economic area (e.g. Euroland).
Reinvestment	The possibility of reinvesting the distribution in the same fund. Certain funds offer investors a special reinvestment discount on the issuing price if the annual distribution is reinvested. This is true of most Swiss-registered funds.
Reinvestment discount	See reinvestment.
Reinvestment fund	An investment fund that continuously reinvests its income in the fund rather than distributing it to unit holders, as opposed to distribution fund. See also tranche.
Reinvestment, continuous	The continuous reinvestment of the income generated by a fund in the same fund.
Relative value	This investment strategy aims to exploit market inefficiencies. Accordingly, simultaneous investments in long and short positions in strongly correlating portfolios are generally entered into.
Representative	In the case of investment funds established under foreign law that can be sold publicly in Switzerland, the representative is the individual or legal entity domiciled in Switzerland that represents the fund vis-à-vis investors and the supervisory authority in Switzerland. Representatives require prior authorisation from the Federal Banking Commission. See UBS Fund Management (Switzerland) AG.
Resource efficiency	Resource-efficient production uses fewer and/or more environmentally friendly resources. This helps protects the environment and offers financial savings.
Return	See performance.
Risk	In portfolio theory the risk of an investment is measured by the amount of volatility. Risk and return are directly related: Markowitz’s portfolio theory posits that a higher return can only be obtained with a higher risk.
Risk	In portfolio theory, risk tends to be defined as the standard deviation of performance values. The standard deviation is a statistical measure of the distribution around an average value over the period being observed. Markowitz’s portfolio theory posits that a higher return can only be "purchased" with a higher risk.
Risk capacity	An investor’s capacity to tie up his money (capital) for a specified period of time without getting into financial difficulties.
Risk tolerance	The degree of possible price fluctuations that an investor is willing to accept in order to attain a specific investment goal. Risk tolerance and an investor?s need for security are important factors when selecting an investment fund. The higher the risk tolerance, the greater the component of equities and foreign currencies.

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