Glossar

Risk factors that only affect individual securities/assets or a very specific group of assets. Idiosyncratic risk can be reduced by diversification. Opposite: Systematic risk.

The implied volatility is the expected fluctuation intensity of an underlying asset of an option. The implied volatility of an option results from supply and demand. Via derivative instruments such as options, the volatility of an underlying asset can also be extracted as an investment object. More information on Assenagon's Volatility strategies can be found here.

Investment strategy aimed at generating regular income – for example through interest, dividends or other recurring cash flows. Successful income strategies rely on broad diversification of income sources to achieve stable returns, spread risk and avoid capital erosion. These strategies are particularly suitable for investors with predictable income needs – such as for retirement planning. You can find a more detailed explanation here.

An index is an indicator of the performance or price of a basket of securities (usually of the same asset class) of a specific geography, a theme or even a single industry.

The expected return of an investment strategy, relative to its benchmark, also called alpha, divided by its tracking error. This is a measure of the efficiency with which an investment strategy takes on risk relative to its benchmark.

In general, an investment fund is an "undertaking for collective investment in transferable securities" (UCITS), which collects capital from investors in order to invest it in accordance with a defined investment strategy for the benefit of these investors. An investment fund may be constituted as:

• a common contractual fund (Luxembourg: fonds commun de placement – FCP). The FCP has no legal personality and must be managed by a Luxembourg management company;
• an open or closed ended investment company with fixed/variable capital (Luxembourg: société d'investissement à capital fixe/variable – SICAF/V). Creating such a corporate entity requires the drafting of instruments of corporation.

FCP and SICAV/F can be set up as a single or umbrella fund with multiple compartments. Depending on the investors' needs the fund may have an unlimited number of share classes (unit classes).

The term is used for fixed-income securities rated equally to or above BBB- or Baa3 by a recognized rating agency.

A structured investment approach in which asset classes, allocation, and risk profile are clearly defined. The objective is to achieve specific risk-return targets while taking diversification and market conditions into account.

Abbreviation for "International Securities Identification Number". A unique international code that identifies a security. Each country has a national numbering agency that assigns ISIN numbers for securities in that country. A German securities identification number (WKN) can exist in parallel to this. An overview of all Assenagon investment funds including their ISINs can be found here.

An issue refers to the issue of securities (e.g. bonds or shares) that serve issuers (e.g. states, credit institutions or companies) to raise capital from external investors, i.e. debt capital (via bonds) or equity capital (shares).

That price which investors pay when purchasing shares of an investment fund.