Costs paid to the fund’s management for management, portfolio management, administration and audits as well as for marketing and legal expenses. The all-in costs are expressed as a percentage of the fund’s assets and charged to the fund on a daily basis.
A standard against which a fund’s performance can be measured. Both standardized market indices as well as specially designed benchmarks may be useful depending on the fund’s strategy and investment policy.
The allocation or distribution of financial assets among several investment instruments, such as shares, bonds and money market instruments as well as various branches, countries and currencies. Diversification reduces investment risks while keeping the same target returns.
Securities such as mortgage-backed bonds or bonds that bear interest at an agreed rate through the entire period up to their maturity.
Fund assets / net assets
The sum of all assets in a fund minus the accrued costs. The assets of a securities fund consist of securities, bank deposits and other assets.
Fund of funds (umbrella fund)
An investment fund that invests its assets in the units of other investment funds.
A planned approach to investments taking into account the individual needs and requirements of the investor, particularly the risk capacity and risk tolerance as well as the expected return.
Net Asset Value (NAV)
The net asset value per unit is the value of a fund share (cf. “Fund assets / net assets”).
Fund providers compensate banks with retrocessions for the services they perform in connection with their client support and advisory services. For reasons of cost transparency, LLB has completely waived its distribution remuneration for its own funds since 1 July 2014. It passes on 100 percent of the portfolio maintenance commissions for third-party funds to its clients, both in asset management and investment advisory business. By doing this, LLB is also pre-empting foreseeable regulatory developments.
Strategy funds / target funds / portfolio funds
Funds that reflect the Liechtensteinische Landesbank’s official investment strategies for the various risk categories. These funds invest in different investment instruments worldwide; shares and bonds are overweighted depending on the risk category. Investors can choose between two reference currencies und risk categories.
Total expense ratio (TER)
Key performance figure that compares the total costs for operating a fund with the average fund’s assets in a given period of time. Besides management, portfolio management, administration and audit costs, fees for statutory publications, the exchange listing as well as for legal counsel and taxes are included.
The total capital appreciation as a percentage of the original investment within a specific period of time. The return is measured as the actual rate of return on the investment. It is based on the fund’s return (e.g. interest, dividends, realized capital gains) and market price changes affecting the fund’s assets.
Volatility is an indicator to measure the risk of a portfolio. It describes the fluctuation range in which a fund’s return is likely to move.