KII (Key Investor Information) are key documents designed to provide investors with an overview of an investment product, including its risks, returns, and costs. This document aims to help investors better understand the terms and characteristics of an investment before deciding to invest. KII typically includes information about the investment strategy, historical performance, fees, and the risks associated with the investment. It is an important tool for ensuring transparency and informed investment decisions.
KII
Related terms
| Term | Definition |
|---|---|
| LTV | LTV (loan-to-value) is a financial ratio that measures the proportion between the loan amount and the value of the collateralized asset, typically real estate. LTV is often used in mortgages or other types of loans to assess the risk and stability of the loan. It is calculated as the ratio of the loan amount to the property value, expressed as a percentage. For example, if the loan amount is €80,000 and the property value is €100,000, the LTV is 80 percent. A lower LTV means less risk for the lender, as the debt represents a smaller proportion of the property's value. Conversely, a higher LTV may indicate greater risk and often leads to higher interest rates or stricter terms. |
| M&A | M&A (mergers and acquisitions) refers to mergers and acquisitions, which are processes in which two or more companies merge (merger) or one company acquires another (acquisition). The goal is growth, increased efficiency, or gaining new technologies or access to new markets. |
| Management fee | A management fee is a fee charged by investment or management companies for managing an investment fund or portfolio. This fee covers the costs of managing and overseeing investments, including analysis, asset selection, and performance monitoring. It is typically charged as a percentage of the assets under management, either annually or quarterly. |
| MBO | MBO (management buyout) is a process in which the current managers of a company acquire a controlling stake or buy out the company they work for. This process allows the managers to take ownership and control of the company, often with the goal of streamlining operations, increasing value, or maintaining strategic independence. MBOs are often financed through a combination of the managers' own equity and external funding, such as bank loans or venture capital investments. |
| Mutual fund | A mutual fund is an investment fund that gathers funds from various investors and invests them in a diversified portfolio of assets such as stocks, bonds, commodities, or other investment instruments. Investors are issued shares of the fund, which represent their share of the total assets of the fund. Mutual funds are managed by professional managers who decide on the investment strategy and selection of assets. There are different types of mutual funds, including open-end and closed-end funds, which differ in terms of trading methods and liquidity. Mutual funds provide investors with the opportunity to achieve diversification and professional management of their investments. |