Find another term. Follow an explanation link; use Back to return here. Rights, tax and protection depend on local law and the actual arrangement; named-country examples do not establish rules elsewhere.
Asset segregation
Separating client assets from firm property through accounts, records and legal arrangements. Failure protection depends on local rules/implementation; segregation prevents neither market losses nor delayed access.
Returning versus replacing assets
Base currency
A fund’s accounting/value-reporting currency; platforms may mean an account reporting currency. Neither identifies underlying exposure or future spending currency, and neither alone establishes a hedge.
Beneficial owner
Here, the investor whose economic securities interest is recorded through an intermediary despite another registered name, as in US street-name holdings. Rights/terms depend on arrangements; tax/anti-money-laundering definitions can differ.
Broker
A firm arranging client investment trades, possibly providing accounts/custody or using others. One app brand can cover several entities; identify your account’s entity when checking authorisation and protection.
Counterparty risk
Risk that another contract party fails its obligations. A currency hedge can reduce exchange exposure while adding counterparty dependence. Collateral/safeguards can reduce risk according to their terms and effectiveness.
Currency exposure
Sensitivity of value/cash flows to exchange rates, including payment currencies and business sales/costs/financing. An ETF trading currency does not describe it fully; the goal’s spending currency matters too.
Underlying currency dependence
Currency hedge
A position intended to offset specified currency exposure, reducing favourable and adverse currency effects with costs/remaining risks. Identify coverage and target currency; underlying investment losses and inflation remain.
Custodian
A safekeeping firm whose duties can include records, settlement and payments, separate from the broker. Custody of your fund shares and custody inside the fund are distinct arrangements with different responsibilities.
Deposit protection
A scheme covering eligible deposits at failed insured banks within rules/limits. A cash label establishes no coverage: US FDIC insurance, for example, excludes mutual funds. Check deposits and money market funds separately.
Foreign exchange rate
One currency’s price in another. Euros per dollar and dollars per euro are reciprocals. Return conversion requires consistent direction and appropriate dates; reference rates differ from executable rates after charges.
Fund domicile
A fund’s legal jurisdiction, potentially different from its listing, investments and your tax residence. It identifies relevant fund rules without alone resolving eligibility or personal tax.
Hedged share class
A class hedging specified exposure towards a stated currency, sometimes class-to-base currency. Check scope: the label promises neither complete coverage nor stable purchasing power in your spending currency.
Investor compensation
A remedy for specified eligible claims against a financial firm, varying by local scheme. US SIPC helps restore eligible property at failed member brokerages, excluding market-price losses. Check entity, assets and eligibility.
Nominee
A registered securities holder acting for others; intermediary records identify investors’ interests. Your name may therefore be absent from the issuer register. Voting, payments and transfers depend on the arrangement/law.
Registered and beneficial ownership
Omnibus account
An intermediary/custodian account pooling several clients’ assets with individual interests recorded separately. Pooling can coexist with firm-asset segregation; it establishes neither accurate records, recovery rights nor prompt transfers.
Spending currency
The currency of a goal’s expenses. Goals/plans can differ or change. Measure investment funding in that currency; a gain in another reporting currency establishes no adequately funded bill.
Subcustodian
A custodian used by another provider, often for local-market safekeeping. The network can extend beyond statement names. Delegation/liability depend on arrangement and law; its presence alone settles no recovery rights.
Tax residence
Status under a jurisdiction’s tax-residence rules; several jurisdictions’ domestic laws can treat one person as resident. Citizenship, residence permit and broker location alone do not resolve it. Check personal circumstances.
Trading currency
The currency quoted/traded on a venue. Listings of the same unhedged ETF class can use different currencies, changing conversion/dealing costs while leaving underlying investment and currency exposure unchanged.
Unhedged share class
A class without a class-level currency hedge. Translated value reflects investments and exchange rates. It does not exclude hedging inside the fund or its businesses; check both policies.
Related materials
- Evidence and investor behaviour: investing glossary
- Costs, prices and tracking: investing glossary
- Your spending currency and investment risk
- Which currency your investment depends on
- Deciding whether to hedge currency risk
- Where a fund is based and who can buy it
- Who holds your investments across borders