Glossar

The risk that the debtor cannot make the agreed interest and redemption payments on time or only partially.

Derivatives are financial instruments whose price depends on the price development of an underlying asset. Examples of underlying assets are shares, share indices, government bonds, currencies, interest rates and commodities. These can be structured as futures or options transactions, among other things, and are traded either on exchanges or over-the-counter (OTC). They are used primarily to hedge the investment portfolio, but also to generate returns. Derivatives can also be used to extract the volatility of an underlying as an investment object. For more information on Assenagon Volatility strategies please see here.

There are different types of dividends. Corporate dividends are part of a company's profits that are paid out to its equity shareholders. Fund dividends are paid out to unit holders.

The dividend yield is the dividend set per share as a percentage of the (current) share price.

Drawdown represents the rate of loss (in percent) of the value of an investment until it returns to its original value within the period under consideration. The maximum drawdown shows the maximum temporary price loss.

Duration is a measure of the sensitivity of a bond's price to interest rate changes. A longer duration means a higher sensitivity to interest rate changes, or in other words, higher interest rate risks or opportunities.