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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A.E.D.A.K. (Mutual Fund Management Company S.A.)
A company whose exclusive purpose is the operation and management of Mutual Funds. Additionally the company may provide services according to Article 4 of Law 3283/04.
ASSETS (of a Mutual Fund)
The total property of the Fund in current prices. Prices of bonds, interests, cash, stocks, foreign exchange, etc. are calculated on a daily basis and added up to give the assets. The value of assets is affected both by the fluctuation of the value of investments and by the subscriptions and redemptions performed each day.
ANNUAL & INTERIM FINANCIAL REPORT
The report drafted by the Management Company at the end of the financial year and at the end of the first semester, that unitholders may obtain if they so wish. These reports include items on the Fund's assets, the profit and loss account, the distributed or re-invested profits, the inflows-outflows of shares.
CAPITAL MARKET COMMISSION
The Supervisory and Regulatory Body of M.F. Management Companies and Portfolio Investment Companies. It is the equivalent of the Bank of Greece for Banks. It comes under the jurisdiction of the Ministry of National Economy and controls the operation of all M/Fs available in Greece. Receives and investigates complaints of citizens concerning M/Fs and PICs.
CUSTODIAN
A bank legally operating in Greece (Greek or foreign) which safeguards the property, cares for collections and payments and for the correct performance of transactions. The Custodian controls the lawfulness of all movements and the observance of the regulation, at any moment.
CO-UNITHOLDERS
Persons participating in the same units of M/Fs. They have the same rights and obligations as the co-beneficiaries of a joint bank account. Each and every co-unitholder may redeem shares.
DIVIDEND
The proceeds of the Mutual Fund from interests, dividends, and profits from above par drawing, may be distributed to the shareholders, annually, after having deducted the total expenses for the financial year.
FULL PROSPECTUS AND SIMPLIFIED PROSPECTUS
Documents describing everything that the prospective shareholder needs to know about the Mutual Fund, e.g. Purpose of the Mutual Fund, allowed investments, charges, taxation, structure of the company.
FRONT-END COMMISSION
A percentage fee of the deposited capital, which is withheld during the subscription in a Mutual Fund to cover various expenses. It fluctuates depending on the M/F class, and the amount of the fee is provided for in the Regulation of the Fund, and is mentioned on the subscription application.
FUND PROFITS
The profits realised by the Mutual Fund from the sale of stocks, bonds and/or foreign exchange, at a price higher than the one they were purchased.
INVESTMENTS CONSULTANT
A specialised company or Bank advising the AEDAK on the investments of the M/F. In case its fee is paid for by the M/F, it should be mentioned in the regulation.
LEGAL PROOF OF ACQUISITION OF INCOME
Unitholders are not required to explain the source of income when purchasing unit in Mutual Funds. On the contrary, the dividends and profits from the Fund earned by the unitholder, may be used to justify acquisition of further assets.
NET PRICE (of a unit)
The net price is the result of the division of the value of the Fund's assets of each day, with the total number of units that day. The net price (appearing in the newspapers every day) is used to calculate the return on investments as well as the offer and redemption prices.
OFFER PRICE
The offer price is the net price, increased by the front-end commission.
REDEMPTION APPLICATION
It is usually found on the back of the title of units, and is absolutely necessary for the "withdrawal" of funds invested (part of or the entire capital).
REPRESENTATIVE
The Authorised Representative of an AEDAK may be another AEDAK,a Bank, an insurance company, a Greek Asset Management company (EPEY), or a securities company. It is the Representative's responsibility to explain exactly what is each Mutual Fund, its costs (commissions, fees, etc.) for the shareholder, while at the same time, is obliged to provide regulations and brochures of Mutual Funds.
RETURN
Mutual Funds do not offer interest but profit. This profit is considered as return and is nothing more than the increase achieved in the unitholder's capital, i.e. the price difference and the dividend he/she receives each year.
REDEMPTION
The procedure for the "withdrawal" of invested funds from the Mutual Fund. It may be a partial redemption (a specific amount, part of the total capital) or a total redemption, and the filling-in of an application is required. Funds are credited back within five days at the latest from the date of the application, ,based on the redemption price on the day the application was submitted. All co-unitholders have separate redemption rights separately.
RE-INVESTMENT
Refers to the dividends that may be distributed each year by the Mutual Fund. The unitholder, instead of collecting the dividend, chooses to use it to purchase new shares.
REGULATION
The document describing the purpose of each Mutual Fund, its obligations, how it operates, and anything concerning the Fund. This document is binding for the shareholders, the Custodian, and the AEDAK, and must always be read by prospective shareholders.
RISK
All investments have a certain degree of risk, even the seemingly risk-free ones, such as bank deposits or Government Bonds. The risk is nothing more than the possibility not to achieve the return anticipated by the investor. In equity and foreign M/Fs this possibility is greater, due to the nature of the investment, while it is smaller in Bonds and Money Market M/Fs.
REDEMPTION COMMISSION
A percentage fee of the liquidated amount which is withheld upon exiting the Mutual Fund, and varies depending on the M/F class. It is provided for in the Regulation of the Fund, and if it exceeds a specific percentage, it is mentioned on the subscription application.
REDEMPTION PRICE
The redemption price is the price that will ensue following the deduction of the redemption commission.
SUBSCRIPTION APPLICATION
It is always signed after the regulation has been read and accepted.
SHARE
The capital of Mutual Funds is divided into units, not stocks or bonds. When a person is subscribed in a M/F, the amount deposited is transformed into units (usually a fractional number) which do not change, unless money is added or withdrawn. So, if a unitholder wishes to know the value of his/her capital today, he/she will have to multiply the number of units held by the redemption price appearing in the newspaper.
SUBSCRIPTION
The admission in a M/F. The subscription date is the value date of cash deposited in the Mutual Fund, or the value date when proceeds (e.g. from cheques) are made available to the Mutual Fund. The subscription price is the offer price on the value date.
TITLE OF UNITS
A registered security issued in the name of the unitholder and the co-unitholders, following the subscription in the M/F. It also mentions the number of units, the purchase price, and the subscription date. The AEDAK, with the consent of the unitholder, is entitled not to issue a title of units; in this case the company sends a subscription certificate to the unitholder.
UNITHOLDER
Any person who has invested in a Mutual Fund and is holder of units.