Homepage ICI Investment Company Institute Investment Company Institute

Mid-cap – The market capitalization of the stocks of companies with market values between $3 to $10 billion. Maturity distribution – The breakdown of a portfolio’s assets based on the time frame when the investments will mature. Management fee – The amount paid by a mutual fund to the investment advisor for its services. Large-cap – The market capitalization of the stocks of companies with market values greater than $10 billion. Impact investing – A sustainable investment style that seeks to generate measurable positive social or environmental impact alongside financial return.

Securities custody

There is a particular focus on regulated utilities (electricity and water networks), low carbon transport (rail) and telecoms (towers). The sector offers more stable earnings growth, lower price volatility and better long-term Sharpe ratios, a measure of risk-adjusted return. YTD – Year-to-date return on an investment including appreciation and dividends or interest. United Nations-Supported Principles for Responsible Investment (PRI) – An official network of investors that works to promote sustainable investment through the incorporation of environmental, social and governance factors. Transfer agent – An agent, usually a commercial bank, appointed to monitor records of stocks, bonds and shareholders. Sustainable investing – A forward-looking investment approach that aims to deliver long-term sustainable financial return in a fast changing world.

Securitisation involves bundling the cash flows from various loans, such as mortgages, car loans and credit card payments, into bonds. The largest securitised sectors are mortgage-backed securities and asset-backed securities. In short, the current market represents one of the most attractive markets in which to invest since the ILS market came into being, with yields at very high, indeed record, levels. The Investment Company Institute (ICI) provides essential data and insights to strengthen the asset management industry and support informed decisions.

Asset Class Capabilities

Macroeconomic uncertainty surrounding inflation, interest rates and corporate earnings, has caused nervous investors to shun riskier assets and flock toward perceived safety. The result has been huge flows into cash and low duration fixed income over the period. Indeed, money market funds and Treasuries are both on track for record years of inflows, according to Bank of America. For those unfamiliar with the strategy, covered call overwriting involves selling a call option on a stock or index that an investor owns.

ICI Welcomes EC Market Integration Package

It encompasses a wide ranging spectrum of approaches, the core of which starts with the incorporation of ESG information. Small-cap – The market capitalization of the stocks of companies with market values less than $3 billion. Share https://transmarana.solbyte.dev/canpeak-resources-review-2025-a-reliable-pathway/ – A unit of ownership in an investment, such as a share of a stock or a mutual fund.

• As well as investment management, our specialist skills include quantitative and actuarial analysis for pension and insurance clients.
• Price-to-earnings (P/E) Ratio – A stock’s price divided by its earnings per share, which indicates how much investors are paying for a company’s earning power.
• Investment objective – The goal of a mutual fund and its shareholders, e.g. growth, growth and income, income and tax-free income.
• Capital gains ex-date – The date that a shareholder is no longer eligible for a capital gain distribution that has been declared by a security or mutual fund.
• United Nations-convened Net-Zero Asset Owner Alliance – An international group of institutional investors delivering on a commitment to transition investment portfolios to net-zero GHG emissions by 2050.

Passing Wealth With Purpose: Smart Strategies for a Smoother Inheritance

Long-term investment strategy – A strategy that looks past the day-to-day fluctuations of the stock and bond markets and responds to fundamental changes in the financial markets or the economy. Expense ratio (date) – Amount, expressed as a percentage of total investment that shareholders pay annually for mutual fund operating expenses and management fees. Equity fund – A mutual fund/collective fund in which the money is invested primarily in common and/or preferred stock. Balanced fund – Mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds. The companies selected typically are in different industries and different geographic regions.

Price-to-book – The price per share of a stock divided by its book value (net worth) per share. For a stock portfolio, the ratio is the weighted average price-to-book ratio of the stocks it holds. P/B Ratio – The price per share of a stock divided by its book value (net worth) per share. Mutual funds are liquid because their shares can be redeemed for current value (which may be more or less than the original cost) on any business day.

Asset allocation – The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs. On 19 March 2019, the EU adopted a regulation to create a system to cooperate and exchange information on investments from non-EU countries that may affect security or public order. The regulation makes sure that the EU is better equipped to protect its interests, while remaining among the world’s most open investment areas. In its Trade Policy Review, the European Commission announced its intention to pursue sustainable investment agreements with Africa and the Southern Neighbourhood, focusing on investment facilitation. This initiative is being developed in negotiations for a Sustainable Investment Facilitation Agreement with Angola, and the EPA deepening negotiations with five countries of Eastern and Southern Africa.

Blue chip – A high-quality, relatively low-risk investment; the term usually refers to stocks of large, well-established companies that have performed well over a long period. The term Blue Chip is borrowed from poker, where the blue chips are the most valuable. Annual report – The yearly audited record of a corporation or a mutual fund’s condition and performance that is distributed to shareholders. We see equity call overwriting as a powerful income tool and right now is a good opportunity for these types of strategies.

Regulated funds are a cornerstone of the U.S. economy, transforming household savings into investments that drive innovation, strengthen infrastructure, and create jobs. Congress will soon weigh a new set of reforms aimed at boosting capital formation that could translate into faster economic growth, more jobs, and greater household wealth. Dow Jones Industrial Average (Dow) – The most commonly used indicator of stock market performance, based on prices of 30 actively traded blue chip stocks, primarily major industrial companies. The Average is the sum of the current market price of 30 major industrial companies’ stocks divided by a number that has been adjusted to take into account stocks splits and changes in stock composition. Capital – The funds invested in a company on a long-term basis and obtained by issuing preferred or common stock, by retaining a portion of the company’s earnings from date of incorporation and by long-term borrowing. Bond – A bond acts like a loan or an IOU that is issued by a corporation, municipality or the U.S. government.