lexique

Glossary

Beneficiary clause

Clause in a life insurance policy whereby the subscriber designate the person(s) who will be beneficiaries of the sums guaranteed on the death of the insured(s) (Beneficiary in case of death) or at the end of the term policy (Beneficiary in case of life).

Bond

Units in borrowings /Debt securities issued by a company or a state.

Custodian bank

Bank mandated by the issuer of a fund to safeguard the securities of the fund and carry out transactions on behalf of the fund.

Death benefit

Sums guaranteed by the insurance policy in the event of the death of the insured.

Discretionary management

Type of management of a portfolio of assets or of a fund whereby the financial manager takes the investment decisions itself on behalf of its client, often in the context of a predefined investment profile.

External fund

An external fund is a collective investment undertaking established outside the insurance company and subject to an approval procedure and to continuous prudential oversight on the part of a state supervisory authority. (Example: UCITS, investment funds, etc.)

FPS (Free Provision of Services) or Services Directive

European Directive granting all approved insurance companies established in a member state of the European Union (EU) the benefit of a European passport allowing it to exercise its activity in all the other EU countries without having to be physically established there.

Insured

Person on whose life the risk of the insured event rests.

Internal fund

Collective or dedicated segregated set of assets of an insurance undertaking, with or without a guaranteed return.

Internal collective fund

Limited set of assets of an insurance undertaking, with or without a guaranteed return, open to a large number of subscribers.

Internal dedicated fund

Internal fund with no guaranteed return and serving as the vehicle for a single policy.

Manager / Financial Manager

An entity duly approved by the competent controlling body of its country of residence, mandated by the insurance company to execute the management mandate of a fund, whether internal collective or internal dedicated.

Net Asset Value

Total value of the assets of a fund or of a unit of a fund at a given date.

Share

Part of a company's capital in the form of a negotiable security.

Subscriber or insurance taker

Natural or legal person entering into commitments with the insurance company.

Switch

(In the context of a life insurance policy in units of account) Transactions consisting in buying units in one or more funds with the proceeds from the sale of units in one or more other funds.

Technical provisions / Technical reserves

Sum of the commitments of an insurance company vis-à-vis all its subscribers and policies.

Undertaking for Collective Investment in Transferable Securities (UCITS)

Fund / Investment vehicle investing in transferable securities and allowing collective management.

Unit of account

Unit or share in an investment fund.

Unlisted securities

A share is said to be unlisted when it cannot be traded in a stock exchange. In this case, the unlisted company has not called upon the public for its savings.