Terminological research

In this section, our research team offers insights on specific financial topics with a focus on terminological clarification and standardisation. The objective is to actually overcome difficulties by suggesting practical linguistic solutions.

Summary of index replication methods used by ETF providers

Summary of index replication methods used by ETF providers

Exchange-traded funds or ETFs offer the possibility to invest in all the components of an index in a single transaction. To do so, these funds need to efficiently “track” or “replicate” such index, for which they may use various methods. There are several “index replication methods” or “strategies” that have not yet been officially classified and whose terminology is not harmonised. This diagram prepared by Argos TSP’s Research Team offers a practical classification and clarification of the current terminology about index replication methods used by ETF “providers” or “managers”. Here are the terms that are generally used by the various players in the global ETF industry. This typology may evolve over time… and this illustration will be adapted accordingly!

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La prima de riesgo: a Spanish obsession

La prima de riesgo: a Spanish obsession

If you travel to Spain, you will certainly be surprised by the media’s obsession with the prima de riesgo or “risk premium” in English. It has been all over the news since 2007 and it has even become a small talk topic. If you’re stuck in the elevator/lift with your boss and have no idea what to say, you don’t need to talk about the weather anymore! The weather is so 1990’s! Here in Spain, “what’s the weather like?” has become “where does the risk premium stand at?” Few people actually know what it means but when something goes wrong, you can always blame it on the prima de riesgo. Unemployment, sluggish economy, corrupt politicians: all of this might very well be the risk premium’s fault.

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Concept clarification: inter-group companies, intra-group companies, intercompany, related companies

Concept clarification: inter-group companies, intra-group companies, intercompany, related companies
What is a group?

This question is more complex than it seems and would deserve a whole separate study. In many countries, the legal concept of “group” is still unclear, although it is commonly used as a marketing argument by companies and it is a reality in the context of account consolidation and intra-group transactions. For instance, the term “group” is not defined in French law, even though the accounts of several companies may be consolidated under certain conditions for tax purposes.

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Some valuable tips for translating Key Investor Information documents (KIID)

Some valuable tips for translating Key Investor Information documents (KIID)

In the context of EU-standard investment funds called UCITS, Directive 2009/65/EC recently introduced the Key Investor Information document (KIID), which was intended to replace the simplified prospectus. Here are a few tips that translators should bear in mind when it comes to translating KIIDs.

First of all, just so everyone is clear on the title:
- Before 2009, the simplified prospectus was, in Spanish, folleto simplificado and, in French, prospectus simplifié
- Since 2009, the simplified prospectus has been replaced by the KIID, Datos fundamentales para el inversor (DFI) in Spanish and Document d'informations clé pour l'investisseur (DICI) in French.

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