Advising is a financial service that requires the provision of personalized advice, either at the client's request or at the consultant's initiative, in relation to financial instruments.
An Appointed Representativet is a person, whether natural or legal, not integrated into the organizational structure of a financial intermediary, but who, acting on its behalf and on behalf of the latter, provides services to investors seeking to solicit them for certain financial instruments or financial intermediation activity, pursued by the financial intermediary to whom it maintains a bond, namely that of receiving and transmitting orders, placing financial instruments and providing investment advice.
Asset Management consists of a coordinated set of activities aimed at extracting value from the assets of companies or investors. These activities can be used by organizations in their asset control process in search of a desired and sustainable result.
Backtesting is a process based on mathematical models to see how a strategy or model would have worked ex post. Backtesting assesses the feasibility of an investment strategy by finding out how it would work using historical data.
A Bond is a negotiable instrument issued by a state or company. Anyone who invests in bonds is lending money to one of these entities.
The CFA Institute - initials for Chartered Financial Analyst - is the most recognized certification in the financial area at an international level. The mission of the CFA Institute, and the CFA program, is to promote the integrity of financial markets and standards of professionalism, enhancing the positive contribution of the financial sector to the economy and society.
Consulting is the professional activity of diagnosing and formulating solutions on a subject or specialty. The professional in this area is called a consultant.
It is a statistical measure of how two investments or attributes or variables behaved with each other and can assume values between -1 and 1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means that there is no correlation between assets or variables.
A correlation between two variables does not necessarily mean that if one variable changes, the other will also be affected. In causality, an event is always announced by the occurrence of another event. This is also known as a causal relationship.
Correlation indicates an association between two variables. Causality emphasizes that one variable is responsible for triggering a direct change in another variable.
Discretionary Management is a service provided by a financial intermediary that, upon payment of a commission and a management mandate, invests the available capital depending on the client's profile.
It is a risk management strategy that involves a wide range of instruments, investment vehicles and asset classes in a portfolio. The purpose of diversification is to mitigate the specific risks of an asset or asset classes.
Diversification should also be done among different asset classes, such as stocks and bonds, with low or negative correlation. A correct combination between them will decrease the portfolio's sensitivity to unexpected market movements because asset classes will move in opposite directions.
ESG Investing is an investment approach that includes environmental, social and corporate governance criteria in the decision-making process in order to achieve the investor's long-term goals and a positive impact on the planet.
Exchange-traded Fund is an autonomous asset, also known as a tracker. ETF's are financial products with the objective of reproducing or following an index of stocks, commodities, bonds or product composition. An exchange-traded fund is an investment fund traded on the Exchange as if it were a stock.
Fiancial Assets are intangible assets or rights that a company or individual has and that can generate income. An asset is financial when it exists only as an economic right and its value is derived from a contractual right.
Financial intermediation activities include investment services and activities in financial instruments, auxiliary services to investment services and activities, management of collective investment institutions and the exercise of functions of depository of financial instruments.
Financial Planning is a financial management tool consisting of an organizing process performed by recognizing the current financial situation, along with the determination of the goals where you want to go, and the study of possible paths to be used to achieve those goals.
Financial products are purely financial assets, a definition available to the general public by the institutions.
Goal-based Investing is a wealth management approach that emphasizes investment with specific, pre-defined life goals. This approach involves defining an investment policy between consultant and client to execute and monitor the investment's progress towards concrete goals such as education, home ownership, retirement savings, rather than focusing on generating the greatest possible portfolio return or outperform the market.
Institutional Custody is an electronic securities registration, protection and custody service, provided electronically by a financial institution. The custody service includes custody of assets (segregated by sub-account, if necessary), settlement of securities, dividends and collection and payment of interest, processing of corporate instructions, voting by proxy as directed, provision of tax information.
Invest Bank is a Portuguese bank specialized in savings and Investments managemen, offering an open and independent structure with a global and diversified set of products and services. It also provides corporate financing services for mergers and acquisitions, capital markets, partnerships and restructuring .
Investment means the transaction of capital with the expectation of a future benefit.
An Investment Fund is a financial product, autonomous wealth, which aggregates the interests of several investors in a specific investment policy. It is managed by a team of professionals designated as a management company, whose function is to find the best investment alternatives taking into account the fund's policy.
An Investment Portfolio is a group of assets owned by an investor, individual or legal entity. These assets can be stocks, investment funds, government bonds, bonds, real estate assets, among others.
Monte Carlo Simulation is a method used to model the probability of different outcomes in a process that cannot be easily predicted due to the intervention of random variables. It is a technique used to understand the impact of risk and uncertainty on forecasting and forecasting models.
It is the process of adjusting the weights assigned to each asset or asset class in an investment portfolio. This process involves trading assets within the portfolio to maintain the initial target or desired level of asset allocation or risk.
Rebalancing has the advantage of protecting the investor from over-exposure of assets and from incurring unnecessary or undesirable risks.
Reception and Transmission of orders is a service provided with the purpose of accompanying customers, managing their relationship with the Bank from the initial moment of opening an account.
Risk Management is a set of coordinated activities that aim to manage and control an organization in relation to potential threats, whatever their manifestation.
Savings are the portion of income or wealth that is not spent or consumed in the period in which it is received and, consequently, is saved for use at a future time.
A Share is a title, or unit of ownership, issued by a company. When the company is a publicly-held company, the shares can be traded on the stock exchange or regulated markets.
Time-weighted Rate of Return is a measure to calculate the profitability of an investment or investment portfolio taking into account the capitalization effect. The time-weighted return excludes any variation in capital inflows or outflows in portfolio growth, thus eliminating the distorting effects on growth rates created by cash inflows and outflows.
Volatility is a measure of the dispersion of returns on a security or market index. The more the price of a bond varies over a given period, the greater the risk of making or losing money trading that bond - so volatility is a measure of risk usually presented as a standard deviation.
Wealth means goods, rights and obligations of economic value and belonging to a person or company.
Wealth Management is a service in which professionals control and manage the assets, rights and liabilities of an individual, a family or a company, or only provide consultancy in this area.