Advance-decline line
The advance-decline line (AD line for short) is a historical time series that provides information about the trend behavior of a market/index. The current value of the AD line results from the cumulative difference between the stocks that rose on the previous day ("advancers") and the stocks that fell on the previous day ("decliners"). The weighting of the individual stocks and the intensity of the price increase are not taken into account. An intact trend exists if the market and the AD line are moving in the same direction.

All-in fee
An "all-in fee" is a percentage fee that indicates all costs incurred in connection with a fund investment, with the exception of the front-end load. The all-in fee includes in particular the management and custodian bank fees.

Investment fee
The investment fee is payable once with each deposit and is deducted from the investment amount, which reduces the amount available for investment.

Bonds
Bonds are fixed-interest securities that the issuer (e.g. federal government, federal states, municipalities, credit institutions and companies) uses to finance itself on the capital market.

Shares above the 200-day line
This indicator provides information about the phase a market is currently in. If many shares are quoted above the 200-day line, the market is in an upward trend. Conversely, a downward trend can be derived from this. Extreme values close to 100 % or 0 % can indicate that an existing trend is already well advanced and a correction is becoming more likely.

Asset allocation
Term for the allocation (diversification) of invested assets across various asset classes, such as bonds, equities, real estate, currencies and precious metals.

ATE
Accumulated distribution equivalent yield

Issue premium
Is a premium or surcharge that can be charged in addition to the purchase price for certain types of transaction. It is a premium on the nominal value.

Payout plan
With a payout plan, the investor agrees that a certain amount of money will be paid out of his investment fund in monthly installments or at other intervals within an individually selected term. This can be a fund withdrawal plan or a bank payout plan, for example.

Cash ratios of investment funds
The cash ratio of an investment fund is the portion of the fund assets not invested in securities. Managing this ratio is a central component of a fund manager's tasks. High cash ratios create flexibility and reduce losses in the event of price setbacks, but also ensure that the fund misses opportunities during upward movements.

Advisor fee
Is the fee for the portfolio manager's advisory services.

Beta
Beta is the result of a risk comparison between the fund and the benchmark index. A result of over 1.00 indicates that the fund will tend to outperform when prices rise and underperform when markets fall. A beta of less than 1.00 indicates the opposite.

Balance sheet and earnings analysis
In the balance sheet and earnings analysis, the focus in terms of balance sheet quality is on a solid equity ratio and intrinsic value. In terms of a company's earnings power, continuous profit development, a high level of free cash flow and good market positioning with high barriers to market entry are seen as important selection criteria. The quality of the management is also closely scrutinized: Does it have sufficient industry experience? Has it proven itself in times of crisis? The critical assessment of the management is carried out, among other things, through discussions with the company's management on site.

Credit rating
The credit rating describes the creditworthiness and solvency of a debtor (issuer) and is regarded as a benchmark for the security of a bond.

Credit risks
A credit risk is the possibility that a borrower will be unable or unwilling to meet its future payment obligations. A fundamental credit risk always exists with target transactions, i.e. transactions where the mutual performance - in this case payment - does not take place immediately.

BVI method
Internationally recognized standard method for calculating performance. The performance of the investment is the percentage change between the invested assets at the beginning of the investment period and their value at the end of the investment period.

Call option (short: call)
By paying an option premium, the buyer of a call option acquires the right to buy an underlying asset (share, commodity, etc.) at a fixed price for a certain period of time. He will only exercise the right if the price of the underlying asset is higher than the fixed price. The seller of the call option, on the other hand, undertakes to deliver the underlying asset during the term of the option. He speculates on a falling price of the underlying asset because he then receives the option premium without having to deliver the underlying asset.

Cash flow
Cash flow is the term for an economic measure that represents the net inflow of liquid funds during a period. Cash flow provides information on the liquidity situation of companies, for example.

DAX
The most important German share index, comprising the 30 largest and highest-turnover German companies.

Custody account fee
Fee charged by the bank to its custody account customers for its services of safekeeping and managing securities as part of the custody account business. The basis for calculation varies and is graduated according to nominal value and market value, holdings and turnover, types of securities, custody type, etc.

Custodian and custody account management
The custodian is a bank where the securities and account balances are deposited. A custody account is an account for the booking of securities. Banks, online brokers and fund companies offer custody account management.

Derivatives
Derivatives are financial instruments that are settled with a time delay and whose value is derived directly or indirectly from the performance of an underlying asset (e.g. shares, bonds, commodities, currencies). These financial instruments can be executed as purchase, exchange or other financial market transactions.

Duration
Duration is a sensitivity indicator that describes the average period for which capital is tied up in a fixed-interest security. More precisely and in general terms, duration is the weighted average of the times at which the investor/fund receives payments from a security.

Equity ratio
The equity ratio describes the ratio of equity to total capital (= balance sheet total). Internally, it serves as the basis for financing decisions and externally as an indicator of a company's creditworthiness. As equity is the maximum amount with which a company is liable in the event of insolvency, creditors like to use this ratio to assess risk.

Issuers
Issuers are institutions that issue securities or similar documents on the money or capital markets or have them issued for the purpose of raising capital.

Futures
Futures are standardized forward contracts on a specific commodity. They oblige the buyer to deliver or purchase a certain quantity of the underlying asset at a certain point in the future at a price fixed at the time of conclusion. The seller is subject to the same obligations in mirror image.

Money supply growth
The amount of money in circulation is a control parameter used by central banks in an attempt to ensure price stability.

Overall market valuation
In addition to the valuation of individual securities, analysts are also concerned with the valuation of overall markets. This can be a country or sector, for example. Based on various macroeconomic factors, a statement is made as to whether a market offers investment opportunities.

Hurdle rate
Calculated basic interest rate for investors. Management profit participation is only due once the hurdle rate has been exceeded.

High watermark
The high watermark is the profit level achieved in a mutual fund/asset management mandate that must be exceeded before the manager is entitled to additional profit participation in the investment performance.

Indicative unit price
Calculated value of the fund assets divided by the total number of units issued on a specific reporting date.

Investment grade
Characteristic of a security that has a minimum rating of BBB (Standard & Poors) or Baa (Moody's) or higher.

Inflation
Inflation is the rate of change in prices of selected goods. This indicator is one of the most important in macroeconomics because it has a considerable influence on the currency of an economic area and therefore also on the cost of living and foreign trade, among other things. Sharply rising prices reduce the value of a currency and vice versa. Controlling the inflation rate is one of the central tasks of central banks.

Inflation trends
Inflation trends generally attract a great deal of attention. In the run-up to the publication of current inflation rates, numerous forecasts are made which then reflect the inflation expectations of market participants. If inflation develops contrary to expectations, this can change the ECB's policy. Excessive fluctuations on the financial markets often go hand in hand with unfulfilled expectations.

Annual yield

The annual return is the annual income that an investment has actually generated. The return is expressed as a percentage of the capital invested. For example, if someone has invested EUR 1,000 and the investment yields EUR 30 in a year (e.g. through interest on credit balances), the return is three percent.

Buy zone
If an indicator assumes a value that lies within a defined interval within which the underlying value offers a buying opportunity, this indicator is in the buy zone. Due to their calculation, some indicators can only assume values within a certain interval. The relative strength index moves within a range of 0 and 100. If the indicator moves below 30, it is in the buy zone. Conversely, it is considered overbought if the value is above 70, i.e. in the sell zone.

Account management fee
Account management fees are the costs you pay for managing your current account. They are incurred monthly and are billed monthly or quarterly.

Correlation
Correlation is the percentage of a fund's movement that can be explained by movements in its benchmark index. A perfect correlation is expressed by the figure 1.00, a completely negative correlation by the figure -1.00. The more clearly the figure is below 1, the less dependent the fund's return is on the benchmark index. The correlation is also used to determine the significance of beta. The higher the correlation, the more significant the beta, because it becomes clear how much a higher and lower risk figure is based on active fund management or market development.

Lending
When granting a loan, the bank gives its customer a certain amount of money and at the same time demands repayment in accordance with the repayment schedule. When the loan amount is paid out to the customer, more money comes into circulation that is available for investment and consumption. A high level of lending can therefore have a positive influence on the economic development of an economy.

Price-to-book ratio
The price-to-book ratio (P/B ratio or P/BV) is a valuation indicator that compares the share price of a company with the book value per share. The book value corresponds to the equity of a company (assets minus liabilities). If the current P/BV is above average compared to that of other companies or to the company's own history, the company is considered expensive according to this ratio and is to be classified as unattractive from a valuation point of view.

Price/cash flow ratio
The price/cash flow ratio (KCV or KCF) is a valuation indicator that compares the share price of a company with the cash flow per share. See above for an explanation of cash flow. If the current KCV is above average compared to that of other companies or to the company's own history, the company is considered expensive according to this ratio and is to be classified as unattractive from a valuation point of view.

Price/earnings ratio
The price/earnings ratio (P/E ratio) is a valuation indicator that compares a company's share price with its earnings per share. If the current P/E ratio is above average compared to that of other companies or to the company's own history, the company is considered expensive according to this ratio and is to be classified as unattractive from a valuation point of view.

KVG
Capital management company (under German law)

Country risk
The term country risk covers all risks resulting from the fact that the issuer or counterparty of an investment is domiciled abroad. This includes country-related political, economic and legal risks.

Large caps
Large caps are stock corporations with a high market capitalization. Mostly shares of large, international, generally known and respected companies with a high degree of solidity and creditworthiness, which are characterized by substance and profitability.

Ongoing performance
The term "performance" refers to the change in value of an investment within a defined period of time. The term is often understood in the sense of performance. Performance can be determined for all types of investments and trading goods, including indices and key figures.
Performance is generally the change in the value of an investment over a certain period of time. It can be expressed in absolute terms - as the difference between the values at the beginning and end of the period under review - or in relative terms - as a percentage. The term "performance" is often used synonymously with "performance" or "return". In this sense, the performance then shows the investment success or the investment result. Sometimes, however, "performance" also generally refers to the value achieved by an investment. It also includes deposits and withdrawals made in the meantime and is not purely a measure of success, but a term for the development of assets.

Long/short
Long and short are used to describe buy and sell positions in trading transactions. Buyer positions are called "long positions" and seller positions "short positions". The holder of a long position therefore expects prices to rise, while the holder of a short position expects prices to fall.

Management risk
Management risk refers to negative fluctuations in value, measured in absolute terms or relative to a benchmark index, due to incorrect investment decisions by the manager of an actively managed investment fund. This risk does not apply to index funds and index certificates.

Market entry barriers
Market entry barriers are obstacles that partially or temporarily protect a company already operating in the market from competition from other companies. These are often high initial investments, economies of scale, technological advantage, regional advantages, market power or patents.

Market positioning
The fund manager designs his portfolio according to his opinion of a market. In an economic downturn, for example, cash quotas are increased and shares in qualitatively and substantially strong companies are held, while growth-oriented and cyclical companies are often preferred when the economic outlook is positive.

Maximum drawdown
Maximum cumulative loss within the period under review that would have been incurred if the investor had invested at the worst time (highest price) and sold at the worst time (lowest price) within this period. At DJE, this value refers to the period of one year.

Mid Caps
Mid Caps are stock corporations with a medium-high market capitalization, e.g. MDAX participants in Germany.

Modified Duration
It indicates the percentage by which the bond price changes if the market interest rate level changes by one percentage point; it thus measures the price effect triggered by a marginal change in interest rates and therefore represents a kind of elasticity of the bond price to the market interest rate.

MSCI World EUR
Share index that reflects the shares of 23 industrialized countries worldwide and is calculated in the euro currency.

Net asset value
The net asset value is calculated by the custodian bank. It is the sum of all valued assets less all liabilities. The net asset value of a unit corresponds to the net fund assets divided by the number of units in circulation. The net asset value per unit of an investment fund corresponds to the redemption price, unless a redemption fee is charged.

Overlay investment
Overlay generally refers to strategies in which financial derivatives are managed separately from the respective assets or funds for hedging or positioning purposes.

Performance fee
The performance fee is a fee that is charged as a type of management fee. The performance fee is calculated depending on the performance achieved.

Price index
A price index reflects the pure price performance of a selection of shares. The counterpart to the price index is the performance index, which takes dividend distributions into account in addition to price performance. Apart from the DAX, major benchmark indices are generally published as price indices. This should be taken into account when making comparisons.

Put-call ratio
In securities trading, the put-call ratio (PCR) is one of the timing indicators used to value securities. It compares the put options traded with the call options. If put options predominate, this indicates negative market sentiment. If calls predominate, this indicates positive market sentiment. When looking at the put-call ratio, it should be noted that there is normally less demand for puts than calls. If the PCR is therefore balanced, this is already seen by many market participants as a sign of rather negative market sentiment.

Put option (PUT for short)
The buyer of a put option acquires the right to sell an underlying asset (share, commodity, etc.) at a fixed price for a certain period of time by paying an option premium. He will only exercise the right if the price of the underlying asset is below the fixed price. In this way, he hedges against falling prices and limits his maximum risk. The seller of the put option, on the other hand, undertakes to buy the underlying asset during the term of the option. He speculates on a rising price of the underlying asset because he then receives the option premium without having to take delivery of the underlying asset.

Expected return
The return is the return on an investment that is achieved within a year in relation to the capital invested by the investor. The return is therefore an important aspect for measuring the success of capital investments.

Risk indicators
Investments in funds involve a certain degree of risk. The greater the potential return, the higher the corresponding risk. This is where the investor decides what profits he wants to achieve and how high the risk should be. Risk ratios make it possible to compare different funds with the same or similar investment horizons.

(Volatility, tracking error, value at risk, maximum drawdown, sharp ratio, Treynor ratio, beta, correlation)

Risk classes
Since July 1, 2011, every fund company has been required to prepare investor information ("information leaflets") for funds launched in Germany. According to this, each investment fund is classified on a risk scale from 1 (low risk with potentially lower return) to 7 (high risk with potentially higher return).

Risk of price losses
The general market risk indicates that there is a risk of a loss. This loss results from an overall movement in the market. "Overall movement" here means that the market moves as a whole, i.e., for example, that all German shares are exposed to a price loss.

Rolling performance
The rolling performance shows a performance success that is presented periodically and updates a result that has already been achieved on the basis of new fund prices.

Sharpe Ratio
The idea behind this is to use a ratio to provide a way of comparing the return and risk between different investments. The Sharpe ratio describes the extent to which the return on an investment was above the risk-free interest rate (DJE uses the EURIBOR 1 month) and the standard deviation (volatility) at which this return was achieved. The following rule of thumb applies here: the higher the Sharpe ratio, the better the investment.

Short positions of hedge funds
The function of short positions is described in the section "Long and short". This section explains how short positions of hedge funds can be used as a sentiment indicator. If there are a large number of short positions in a market, this suggests that the fund managers are very negative. From an anticyclical point of view, this would be a buy argument based on the statement "at some point sentiment must become more positive again". An improvement in sentiment would lead to fund managers closing out their short positions and thus causing prices to rise (see "Long and short") or opening up more long positions again.

Small caps
Small caps is the term for smaller stock corporations with low equity.

Savings plan
In principle, a savings plan is a standing order or direct debit for the regular purchase of securities.

SRI
The SRI (Summary Risk Indicator) is a 7-level risk classification system specified by financial product providers. In addition to the fluctuation margin, this indicator also takes into account the expected value of the return and statistical key figures. This indicator is a combination of a market risk measure (MRM, range: 1 [low risk] to 7 [high risk]) and a credit risk measure (CRM, range: 1 [low risk] to 6 [high risk]). As the PRIIPs Regulation relates to a broad universe of products, the regulatory authority has divided these into 4 categories. The MRM is calculated differently depending on the PRIIP category.

Standard deviation
Standard deviation (volatility) is the most widely used measure of risk in the investment world. It is a mathematical quantity that is used as a measure of the risk of an investment. As a key figure, it indicates the intensity of fluctuation of the unit price within a certain period - in the case of DJE within two years. The higher the standard deviation, the higher the risk but also the greater the opportunity of an investment in this fund.

Sentiment indicators
' Opinion surveys of investment fund managers and institutional investors
' Cash ratios of investment funds
' Short positions of hedge funds
' Optimistic and pessimistic stock market letters
' Put-call ratio

Transaction fee / transaction charges / transaction cost fee
This refers to the fees incurred when buying and selling securities. These are mainly commissions from the bank or broker. Brokerage fees and fees charged by the respective stock exchange may also be added. Custody account fees, on the other hand, are not included in the transaction costs.

Trend indicators
' Advance-decline line (difference between rising and falling shares)
' Percentage of shares above the 200-day line
' Difference between new highs and lows
' Amount of stock market loans

TER
The TER (Total Expense Ratio) is a key figure that provides information on the annual costs incurred by an investment fund in addition to the front-end load.

Forward contracts / futures
Forward contracts or futures relate to a specific commodity. They oblige the buyer to deliver or purchase a certain quantity of the underlying asset at a certain point in the future at a price fixed at the time of conclusion. The seller is subject to the same obligations in mirror image.

Treynor ratio
This measures the excess return of a fund compared to a risk-free form of investment and divides the resulting difference by the sensitivity of the fund price to market fluctuations, the beta. It thus reflects the excess return - compared to a risk-free investment - per unit of risk.

Tracking error
Tracking error is an indicator of the similarity between the performance of the fund and its benchmark index. The lower the tracking error, the more closely the fund manager follows an index, such as the MSCI World. Index funds have a tracking error close to zero. Actively managed funds, on the other hand, have a relatively high tracking error.

Outperformance
This is the excess return achieved in relation to the benchmark index, an alternative investment or a defined performance.

Excessliquidity
Excess liquidity expresses a positive or negative deviation from the real money supply (see "Money supply growth"). Excess liquidity also refers to liquidity that is not directly required by the real economy and is therefore available for investment purposes on the capital markets.

Company analysis
Fundamental single stock analysis involves the selection of promising shares and bonds. In the equity sector, selected substance and earnings figures are systematically determined in order to filter out companies with particularly strong balance sheets and good value for money.

Value at risk
This involves determining the maximum expected loss that can arise on the market under normal conditions. The value at risk can be described as the probable change in the present value of a portfolio. The calculation is made for a specific period and a specified probability level. For example, with a 99% probability interval, there is a residual probability of 1% that the loss limit (value at risk) for a certain period (20 days for DJE) will be exceeded by the actual losses.

Comparative index
Indices (e.g. DAX ® - German share index) that are used for comparative analysis of performance with a fund or a fund portfolio.

Sell zone
If an indicator assumes a value that lies within a defined interval within which the underlying value offers a selling opportunity, this indicator is in the sell zone. Due to their calculation, some indicators can only assume values within a certain interval. The relative strength index moves within a range of 0 to 100. If the indicator moves above 70, it is in the sell zone. Conversely, it is considered oversold if the value is below 30, i.e. in the buy zone.

Asset manager
According to banking supervisory law, the correct term in Germany is financial portfolio management. Asset managers actively make investment decisions for private and institutional investors. They buy and sell shares and other financial products, as well as tangible assets such as real estate.

Asset manager fee / asset management fee
If you engage an asset manager, you will incur fees, profit sharing or flat-rate fees in addition to the basic fees, depending on the agreement. The asset manager is authorized to make and implement investment decisions in the interests and on behalf of their clients. He is remunerated for this.

Settlement fee
For an investment amount of EUR 1,000, the individual investment result on the first day is reduced by the settlement fee of EUR 65.00 (6.50 %), which reduces the amount available for investment. In addition, annual individual custody account costs may be incurred which reduce the performance.

Debt
In this case, this refers to all liabilities of an economy towards third parties. How a government deals with a country's debt allows conclusions to be drawn about the economic environment. For example, a high level of new debt is often associated with reforms and economic stimulus programs. Government debt is also taken into account when rating the creditworthiness of countries.

Management fee
Is the fee charged for managing the fund portfolio.

VG
Management company (e.g. under Austrian or Luxembourg law)

Economic analysis
Economic analysis deals with the overall economic situation of an economic area. Key figures on economic performance, income distribution, unemployment and price trends, among others, are used for its assessment. Changes in the key figures provide an indication of the current economic phase and development.

Currency risks
Currency risk, also known as exchange rate risk, refers to the risk that an investment in a foreign currency will return less money than expected due to a poorer exchange rate when the investment is liquidated. On the other hand, a better exchange rate also offers currency opportunities.

Watch list
A watch list is used to collect securities that are interesting in principle but do not currently represent an investment alternative for specific reasons. Nevertheless, it is worth keeping an eye on these stocks so as not to miss a change in the situation. Often a condition (price mark, fundamental event, etc.) is set that must be met to justify a purchase.

Economic growth
Economic growth - usually expressed as a percentage change - refers to the change in gross domestic product (GDP ). The gross domestic product measures the total value of goods and services in an economy in a given year. As a rule, monthly, quarterly or annual growth rates are given. The growth rates are calculated as a quotient of the relative increase (growth) of the domestic product in relation to the value of the domestic product in the previous period.

Certificates
Derivative financial instruments with which the investor participates in the performance of other investments (e.g. security, share basket, index or another financial product). In addition to the price risk, certificates are also subject to issuer risk.

Target funds
Individual investment funds that are included in the fund assets of other investment funds (e.g. fund of funds, equity funds).

Interest rate development
In this case, interest rate development refers to the development of the key interest rate of the European Central Bank. This is the interest rate at which commercial banks can exchange collateral (securities) for central bank money. The commercial banks finance the costs incurred there with the interest income they receive for lending to their customers. For this reason, the key interest rate has a major influence on the economy and the financial markets: if it rises, the banks pass on the increased costs to their customers. High borrowing costs reduce demand and influence the willingness to invest and purchasing power. Falling interest rates make fixed-interest investments less attractive for investors, which has a positive effect on the stock markets.