Investor ABC

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  • Acc. (Accumulation)

    Acc. is the abbreviation of the English term "Accumulation", which is a fund that pays no dividend, but adds this to the assets of the fund. This added value is then capitalised further in the fund. The opposite is 'Inc.' or 'Income', or distributing fund.

  • Alpha

    Alfa / α

    Alpha is the outperformance an investment fund has achieved on top of what could be expected according to a certain investment model. If alpha is calculated using the Capital Asset Pricing Model, a positive alpha indicates that a fund has performed better than what could be expected from the beta. Similarly, a negative alpha indicates that the fund has underperformed, given the expectations associated with the beta of the fund.

  • Analyst Rating Scale

    Gold: Best-of-breed fund in its category that distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction.

    Silver: A fund with more positive than negative ratings across the five pillars and with sufficient level of analyst conviction to warrant a positive rating.

    Bronze: A fund with notable positive ratings across perhaps not all of the five pillars—strengths that give the analysts a high level of conviction.

    Neutral: A fund that is unlikely to deliver standout returns but also isn't likely to significantly underperform, according to the analysts.

    Negative: A fund that has at least one remark likely to significantly hamper future performance and that is considered by analysts an inferior alternative to its peers.

  • Annual return

    Annual total returns are calculated on a calendar-year. Total return includes both capital appreciation of the fund as the possibly paid out dividends. This includes both income in the form of dividends or interest payments and capital gains or losses (the increase or decrease in the value of a security). Ideally the total return is calculated by taking the change in a fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV. Total returns do account for management, administrative, and other costs automatically deducted from fund assets.

  • Annualised return and year to date return

    In order to compare returns in an objective way they should be compared over the same period of time. Standard for this is one calendar year. Refers to the conversion of the return on an investment into a yearly rate. For example, if Fund A returned 5% over six months and Fund B returned 4% over four months, Fund A´s annualised return is 10,25% and Fund B´s is 12,49%.

  • Asset allocation

    Deciding how to spread an investment between categories of financial assets (including shares, bonds, cash) and tangible assets (including real estate, commodities, precious metals and collectibles). Asset allocation is generally driven by the desire to optimise the risk-return trade-off according to an investor’s time frame and according to the investment objectives of the investor.