Glossary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

  • Capital gains - distributed to Swiss unitholders/shareholders on a separate coupon (applies only to Swiss investment funds)

    Capital gains realized by an investment fund and distributed on a separate coupon. The distribution is paid without deduction of withholding tax and is tax-free for unitholders/shareholders resident in Switzerland.

  • Collective investment scheme

    General term for pools of assets raised from investors for the purpose of collective investment. Investment funds are by far the most important and most widespread form of these schemes.

  • Consolidation currency

    Currency used by an umbrella fund to consolidate the accounts of all subfunds.

  • Contractual investment fund

    Investment fund based on a collective investment contract (Fund Contract) in which the fund management company undertakes to provide the investor with a stake in the investment fund in proportion to the units/shares acquired by the said investor, and to manage this fund in accordance with the provisions of the fund regulations and the law. The custodian bank is party to the fund contract in accordance with the tasks conferred upon it by the law and the fund regulations. The investment fund itself has no legal personality.
    The fund management company can issue new units/shares at the net asset value at any time, and investors are in principle entitled to redeem units/shares at the net asset value at any time. In buying units/shares, the investor acquires a claim against the fund management company in respect of a participation in the assets and income of the investment fund.

  • Convertible arbitrage

    An investment strategy used by hedge funds: Exploiting price imbalances between a convertible bond and the underlying share (e.g. by buying the convertible bond and at the same time selling the corresponding share).

  • Corporate actions

    Collective term for all corporate actions that have an impact of the net asset value of units/shares (e.g. distributions, splits, etc.)

  • Costs

    Commissions and costs charged to the fund. These include in particular

    • Fees charged by the fund management company and custodian bank,
    • Other expenses provided that are not covered by the above fees (such as commissions/costs for administration, asset management and distribution; costs for the publications, calculation of the net asset value, auditing; other expenses).

  • Counterparty risk

    Risk of a counterparty in a credit transaction or as an issuer of a structured product not being able to meet the financial obligations they have entered into.

  • Countries with distribution restrictions

    Countries in which investment funds are subject to distribution restrictions.

  • Custodian bank

    Holds the assets of an investment fund in safekeeping, settles the issue and redemption of units/shares, and handles the payment transactions of the investment fund. It also monitors the fund company's compliance with the laws and regulations.

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