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
Secondary market: a market on which securities are bought and sold.
Securitisation: technique imported from the United States, in use in France since the 23 December 1988 law, by which a credit institution transfers the customer loans it holds to an entity, known as a securitisation fund, which issues shares in these loans. This technique improves the liquidity of the credit institution as well as various prudential ratios.
Security: generic term encompassing equities, bonds, negotiable debt securities and shares and units in UCITS.
Sensitivity: indicator that enables the variation in price of a bond or of net asset value of the UCITS to be measured following on from a fluctuation in market interest rates of 1%. Thus a sensitivity of 5 indicates that the net asset value will rise by 5% if market interest rates fall by 1%.
The sensitivity of a UCITS represents the average weighting of the sensitivities of the securities of its portfolio.
Share: negotiable securities representing the ownership or a proportion of the capital of an incorporated company.
Shared return funds: often incorrectly compared with ethical funds, shared return funds stand out as a result of their specific investment philosophy. The profits from shared return funds (made up of equities, bonds and traditional SICAVs) are paid, wholly or partly to charitable organisations. The investor enjoys a specific tax benefit (a tax benefit corresponding to 50% of the amounts received, up to a limit of 6% of taxable income) but on the other hand the performance is altered.
In other words ethical and shared return are two quite distinct concepts. One is based on the type of management and the other is structured around tax benefits.
SICAV (Société d'Investissement à Capital Variable) (open-ended collective investment scheme): The SICAV is one of the instruments favoured by individuals when they invest in the stock market. The SICAV undertakes purchases and sales on behalf its shareholders but also the management of securities. Its minimum level of assets is 7.6 million euros.
SICOVAM: Société Interprofessionnelle pour la Compensation de Valeurs Mobilières.
Small Cap: describes companies with relatively small market capitalisations.
Special purpose vehicle securitisation (SPV): joint ownership without separate legal entity that groups together the loans sold by financial institutions as part of a securitisation operation. (Refer Securitisation)
Specialised ethical management: this type of management defines funds that select shares in businesses according to just one of the five criteria. (Refer: Ethical management)
Spin-off: operation by which the capital of the UCITS is represented by two units or shares (capitalisation and distribution), one already existing and the other to be issued. (Refer: Capitalisation and Distribution)
Subscription price: is obtained by adding the subscription price to the net asset value retained for the subscription to the net asset value retained for the investment multiplied by the number of securities subscribed to. It is established on the basis of the last determined price or the next available price. (Refer: Subscription fees, Last determined price, next available price)
