Glossary
A
Autocallable
A type of Callable product, which will automatically be redeemed ("autocalled") prior to the scheduled Maturity Date if the Underlier satisfies a specified Contingency(ies), often that the Underlier is at or above a specified level on a predetermined date or dates. If autocalled, the investor receives Principal invested plus any potential Coupon or Autocall Premium earned on the given Observation Date.
B
Barrier
A type of Buffer that absorbs a fixed percentage of the Underlier's decline; however, if the Underlier declines beyond a specified level, the protection disappears and losses are one-for-one from the Underlier's Initial Level. Barriers may be observed continuously, daily, or at maturity. Barriers are generally considered the riskiest type of Buffer associated with Structured Investments.
Buffer
A specified percentage decrease in the value of a Reference Asset for which an m+ fund seeks to protect unitholders against losses, at the maturity date and subject to decreases due to fees and expenses.
C
Call Observation Date
The date or dates on which a Structured Investment may be redeemed prior to maturity and an investor's Principal returned. On each Call Observation Date, Structured Investments can either be called at the Issuer's discretion or autocalled if the Underlier satisfies a specified Contingency(ies), depending on the terms of the Structured Investment.
Callable
The ability for a Structured Investment to be redeemed prior to maturity. Structured Investments can be callable at the Issuer's discretion or autocalled if the Underlier satisfies a specified Contingency(ies) on a predetermined date or dates, depending on the terms of the Structured Investment.
Capped Return
A maximum percentage return per unit an m+ fund seeks to provide, at the maturity date and subject to decreases due to fees and expenses.
Contingency
A condition that must be met in order for an event to happen or a payment to be paid.
Contingent Coupon
A type of Coupon offered on some Income Products. The investor receives a Coupon if a specified Contingency(ies) is satisfied, typically that the Underlier is at or above a specified level on a predetermined date or dates.
Coupon
A periodic payment received by the investor over the life of an investment, or paid at maturity, subject to the terms described in the Prospectus or offering document of the Structured Investment.
Coupon Contingency
The specified level that the Underlier must be at or above on a predetermined date or dates in order for investor to accrue or receive a Coupon. A Coupon Contingency is associated with Income Products with Contingent Coupons and Accrual Coupons.
Credit Risk
The risk that the Issuer will default and not meet its principal and interest obligations. This factor must be considered when evaluating Structured Investments relative to traditional equity investments. Credit Risk can also be known as default risk.
CUSIP
A unique product identifier that is assigned to each Structured Investment and other securities.
D
Determination Date
The date on which the Final Level of the Underlier is determined and the Settlement Amount of the investment is calculated.
E
Enhanced Upside
A multiple of any percentage increase in the value of the Reference Asset which an m+ fund seeks to provide, at the maturity date and subject to decreases due to fees and expenses.
Expiration
The final possible event observed for a given Structured Investment.
F
Final Level
The value of the Underlier, set on the Determination Date, against which the Initial Level is measured to determine the payout of the Structured Investment.
Fixed Coupon
A type of Coupon offered on some Income Products. The investor receives a fixed payment on a periodic basis throughout the life of the trade, regardless of the performance of the Underlier.
Fixed Term
A type of Structured Investment that is not Callable. It will remain outstanding until the scheduled Maturity Date and investors will remain invested for the full term as stated in the Prospectus or offering document.
Flex Options
Customized option contracts available through national securities exchanges that are guaranteed for settlement by the Options Clearing Corporation. They provide investors with the ability to customize assets and indices referenced by the options, exercise prices, exercise styles (i.e., American-style, or European-style) and expiration dates.Each option contract entitles the holder thereof to purchase or sell 100 shares of the Reference Asset at the strike price.
I
Income Product
An investment designed for an investor looking to earn income/yield on his/her assets, generally characterized by the potential to earn Coupon payments during the life of the investment.
Inception Date
The effective date of an m+ fund.
Inception Value
The initial value of an m+ fund, on the Inception Date and not subject to sales charges, fees or expenses.
Initial Level
The value of the Underlier, set on the Trade Date, against which the Final Level is measured to determine the payout of the Structured Investment.
Issuer
A legal entity, typically a large financial institution, responsible for the issuance of the Structured Investment. Issuers may use multiple different legal structures to register and issue Structured Investments, referred to as issuing entities. Holders of the Structured Investments are exposed to the Credit Risk of the issuing entity specific to each Structured Investment.
Issuer Callable
A type of Callable product, where, on any Call Observation Date, the Issuer may choose, in its discretion, to redeem the investment prior to scheduled Maturity Date. If called by the Issuer, the investor receives Principal invested plus any Coupon earned on the given Observation Date.
M
Market Linked Note
A type of Structured Investment where the Principal Amount is invested in a debt obligation of the Issuer, with returns linked to the performance of an Underlier (e.g. S&P 500). Like traditional corporate bonds, Market Linked Notes carry the Credit Risk of the Issuer.
Maturity Date
Maturity Date refers to the date at which the Structured Investment will be redeemed subject to the possibility of it being called or automatically redeemed prior to such date.
Maximum Amount Per Unit
A maximum dollar gain per unit an m+ fund seeks to provide, at the maturity date and subject to decreases due to fees and expenses.
Maximum Loss per Unit
A maximum dollar gain per unit an m+ fund seeks to provide, at the maturity date and subject to decreases due to fees and expenses.
Max Return
The highest possible settlement amount, as a percentage of the Notional Amount invested, that the investor could receive on the Maturity Date.
Memory
A feature, offered on some Contingent Coupon Products, which allows investors to receive any past unpaid Coupon payments on a future Payment Date, provided that the Underlier is above the Coupon Contingency on the associated Observation Date.
N
Non-Call Period
The period following Trade Date during which Callable Structured Investments are not eligible to be called for redemption.
Notional Amount
The nominal or face amount that the investor originally purchased on Trade Date and used to calculate payments made on that investment. This term may also be referred to as Principal Amount.
O
Observation Date
A date on which the level of the Underlier is measured in order to calculate payments made on the investment for a given event.
P
Par Value
The original face value of a Structured Investment at issuance.
Payment Date
The date on which payment is due for a given event.
Portfolio Dividend Return Rate
The sum of the Dividend Returns for all Underliers in a portfolio, based on their respective weighting, over a predetermined amount of time.
Principal Amount / Principal
The nominal or face amount that is originally invested on Trade Date and used to calculate payments made on that investment. Principal Amount can also be known as the Notional Amount.
Proximity to Coupon Contingency
The difference between the Underlier's Current Level and the Coupon Contingency Level. The Coupon Contingency must be met in order for a coupon to be paid on the Structured Investment. Generally, if the Underlier's Current Level is at or above the Coupon Contingency Level on a given Observation Date, a coupon would be paid on the Structured Investment with respect to such Observation Date.
Proximity to Current Call Level
The difference between the Underlier's Current Level and the Call Contingency Level. The Call Contingency must be met in order for the Structured Investment to be automatically redeemed. Generally, if the Underlier's Current Level is at or abovethe Current Call Level on a given Observation Date, the investment would be automatically called on such Observation Date.
R
Reference Asset
An exchange-traded fund that generally tracks the performance of an index.
S
Sales Concession
The percentage of the Notional Amount invested that will be paid as a commission on the sale of the Structured Investment. Sales Concessions are published in the Prospectus or offering document and publicly available for investors to view.
T
Tenor
A finite time period at the end of which the Structured Investment will be redeemed, subject to the possibility of it being called prior to Maturity Date. Only Callable or Autocallable Structured Investments can be called prior to Maturity Date. This term may also be referred to as maturity.
U
Underlier
All Structured Investments provide a return that are based on or linked to the performance of a reference asset, or the Underlier. Which is typically an index, ETF, stock, or basket of reference assets.
Underlier Return
The difference between the Underlier's Current Level and Initial Level, divided by the Underlier's Initial Level.