Glossary - A

This section provides an explanation for some of the jargon used to describe structured retail products. If you would like us to add additional words then please let us know by clicking here.


A return based on the number of days in the period when the underlying stayed above, below or within pre-specified levels.


The Dutch regulator, Autoriteit Financiële Markten (AFM) has been responsible for supervising the operation of the financial markets since 1 March 2002. AFM is the successor of the STE (Securities Board of the Netherlands / Stichting Toezicht Effectenverkeer), which supervised all of the participants in the securities trade.

Airbag product

This is another name sometimes given to a Tracker product. The idea is that these products provide some protection against a market crash, rather like the airbag system in a motor car that cushions the driver against the effects of a car crash.


Underlying is composed of non-traditional asset classes such as hedge funds


A return based on a fixed coupon at maturity provided none of the assets in the basket have fallen. If, however, a specified number of the elements in the basket did fall then the return is calculated on a different basis, usually by a call type payout. More complicated products offer different participations based on the number of assets which break a predetermined barrier.

American Option or Style

American style options are options that can be exercised at any time.


France’s securities regulator, the Autorité des marchés financiers (AMF) was established by the Financial Security Act of 1 August 2003. It was formed from the merger of Commission des Opérations de Bourse (COB), the Conseil des Marchés Financiers (CMF) and the Conseil de Discipline de la Gestion Financière (CDGF).


An AMRF is an Irish fund similar to an ARF. However, in the case of an AMRF, the amount invested cannot be accessed until age 75, at which point it becomes an ARF.


Anleihe is debt instrument by which the investor loans money to an entity (company or government), whose value is determined by the price movement of the underlying asset.


A return based on the maximum of a coupon or a participation in the growth of the underlying. The later the assets which make up the underlying cross a predetermined barrier level the higher the participation in the growth of the underlying.

Annual Management Charges

The charges levied every year for the length of investment. See the product description, for details on whether additional annual charges will apply. (Continuous products).


An ARF is an Irish fund allowing for tax-free growth of investments for pensions.

Asian Option or Style

Asian options are options that use averaging in determining either the strike price or the final settlement price.

Asset or Fund Manager

A financial institution that manages money on behalf of an external client.


A term used to describe any option that has its strike price close to the level of the underlying price.


Many structured products measure either the starting index level or the final index level (or both) using averaging. This means that the index levels used in the calculation of the product’s final return are the average index levels calculated during some pre-specified period.

So for example, if the product uses a final index level that is the average taken over the last 12 months then this would mean that the level of the index is recorded every day (or possibly weekly or monthly) during the last 12 months and then averaged. It is this average figure that is used in the calculation.