AML (Anti-Money Laundering)

Set of procedures, laws, and regulations designed to stop the generation of income through illegal activities.

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Asset

Economic resource owned or controlled by an entity with the expectation that it will provide future benefits.

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AUM (Assets Under Management)
A term generally used to refer to the total value of assets managed by an investment fund or an asset management company on behalf of its clients. It includes investments such as stocks, bonds, cash, and other financial instruments, and is typically calculated at market value.

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Central Custody

Process where securities are registered and stored by a centralized entity, facilitating buying and selling without lengthy verification processes.

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Clearing House

Entity that acts as an intermediary to facilitate the settlement of operations, ensuring compliance with the obligations of the parties involved.

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Credit Risk

Risk that the issuer of a bond or other debt instrument will not meet its payment obligations.

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Derivative

Financial contract whose value is derived from the performance of an underlying asset such as stocks, bonds, indices, etc.​

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Equity

Difference between a company's assets and liabilities, representing the net value belonging to shareholders or owners.​

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ETC (Exchange Traded Commodity)

Exchange-traded securities that track the price of a specific commodity or commodity index.

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ETF (Exchange Traded Fund)

Investment funds traded on stock exchanges that track the performance of an index, sector, commodity, or other asset.

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ETI (Exchange Traded Instrument)

Innovative financial instruments backed by assets traded on exchanges, whose performance is linked to the NAV of the underlying assets.

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ETN (Exchange Traded Note)

Debt instruments issued by financial institutions whose return is linked to the performance of a reference index.​​

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Financial Regulation

Rules and laws designed to supervise and control financial institutions, markets, and their participants to maintain stability and protect investors.

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Fixed Income

Financial instruments such as bonds that represent loans made to an entity, with the promise of periodic interest payments and return of principal at maturity.

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Hedge Fund

Private investment fund that uses advanced risk and asset management strategies to obtain high returns.

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ISIN (International Securities Identification Number)

Unique identification code for securities, facilitating their trading and settlement internationally.

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KYC (Know Your Counterparty

Procedure to verify counterparty identity and assess involved risks.

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Liability

Company obligation representing debts or financial commitments that must be paid in the future.

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Liquidity

Ease with which an asset can be converted into cash without affecting its market price.​​

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Market Maker

Entity or individual that offers to buy and sell assets in the market to provide liquidity and facilitate trading.

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Market Risk

Risk of investment losses due to adverse movements in market prices.​​​​​​

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MSCI ESG Ratings

It evaluates a company's ESG performance against peers and provide insights into ESG risk exposure and risk management.​

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NAV (Net Asset Value)

Net Asset Value, indicator of the value of an asset portfolio minus liabilities.

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Perpetual Bond

Bond with no maturity date that pays interest indefinitely or until the issuer decides to redeem it.

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Private Placement Memorandum (PPM)

Legal document providing details about a private investment offering to potential investors, detailing risks, terms, and conditions of the investment.​​

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Segregated Portfolio

Portfolio of assets that is kept separate from other portfolios and liabilities, providing transparency and security to investors.

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Sustainable Finance Disclosure Regulations (SFDR) - EU

The SFDR is a framework that provides a common language for FMPs in the EU to disclose the impacts of their investment activities.

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Tax Efficiency

Tax advantage of certain financial instruments that minimizes the tax impact on investor gains, such as ETF and ETN structures that allow in-kind redemptions and tax deferral.

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TER (Total Expense Ratio)
The TER is the ratio that measures the total operating costs of an investment fund relative to its average assets under management. It includes expenses such as management fees, administrative costs, custody fees, and other operating expenses.

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Variable Income

Financial instruments such as stocks that represent ownership in a company, whose value can fluctuate according to the market.

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White Label Platform

Software platforms created by one company but rebranded and sold by another as their own. This allows companies to offer services under their own brand.

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