Glossary


Tax at source	Tax levied directly at source, for example withholding tax in Switzerland.
Term to maturity	Remaining life of a bond from the current date to the final due date or the premature repayment of the bond. Not to be confused with duration.
Termination	In the investment fund business, withdrawal of an investor from the collective investment contract. The redemption price is in principle to be paid immediately. Special regulations apply to real estate funds, see redemption of units/stock-exchange trading.
Theme fund	An investment fund which invests in securities which meet a specific criterion (environmentally friendly, ethical commitment, etc.) or which all have the same characteristic (e.g. companies which are undergoing restructuring programmes).
Theoretical yield to maturity (gross) for asset allocation funds	In contrast to bond funds and money market funds, the theoretical yield to maturity in this case is reported as a gross figure to allow meaningful comparisons, as the asset allocation funds can vary considerably with regard to weighting of their interest-bearing investments as well as to their fee structure.
Theoretical yield to maturity (net) for bond and money market funds	The theoretical yield-to-maturity figures published for our bond funds and money market funds represent the yield expected for the next 12 months based on the current fund portfolio. This yield is an estimate and corresponds to the weighted average yield to maturity on all the fund’s investments. In the process, the fund’s own administrative costs are calculated and subtracted from the gross yield to maturity. The theoretical yield to maturity is also affected by changes in the composition of the portfolio and fluctuations in interest rates. In other words, no conclusions can be drawn from a fund’s yield to maturity concerning a possible distribution.
Total risk	See risk.
Tracking error	Measure of the deviation of the return of a fund compared to the return of a benchmark over a fixed period of time. Expressed as a percentage. The more passively the investment fund is managed, the smaller the tracking error.
Trading (strategy)	Generally active yield strategies. Potential for high absolute returns and significant “draw downs”. Low Sharpe ratio and low correlation with equities and bonds.
Trading opportunistic	This term comprises strategies which, depending on the situation, invest in a large number of financial instruments, sectors and markets, according to the opportunities available to the managers. Macro hedge funds follow a trading-opportunistic strategy and attempt to identify and exploit global profit opportunities using macro-economic analysis. Due to the variety of strategies used, the correlations to the markets are also different.
Tranche	A fund or subfund may be divided up into several tranches, i.e. with separate securities numbers, which differ from one another in one or a number of factors such as distribution practice, conditions, or fund currency. However, all tranches of a fund/subfund are always invested in the same portfolio.

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