Glossary: terms starting with 0-9

Euro short-term rate: the rate for unsecured overnight borrowing between banks, published by the ECB since 2019. Successor to EONIA and the usual risk-free rate for euro investors.

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Rule of thumb for the equity allocation: 110 minus your age, as a percentage, so 70% equities at age 40. It describes a glide path but takes no account of wealth, income or risk tolerance.

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Mandatory filing with the US Securities and Exchange Commission (SEC) for investment managers with discretion over at least US$100 million in reportable securities. Every quarter it shows the long positions in US stocks, ETFs and certain options and convertible bonds, no later than 45 days after quarter-end; short positions are not included. On request, positions may be kept confidential for a time.

Example: Quarter-end June 30, filing due by August 14, i.e. 45 days later.

Source: SEC, Form 13F (2026)

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Rule of thumb from US studies in the 1990s: withdraw 4% of your wealth in the first year of retirement and then raise the amount in line with inflation; historically, in the US, this would mostly have lasted 30 years. For other countries and periods the limit is often lower.

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A diversification requirement for UCITS funds: a single position may make up at most 10%, and all positions above 5% together at most 40%. Extended limits apply to index funds.

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Inflation rate that the market prices in for the five years starting five years from now, calculated from the 5- and 10-year breakevens. Because the near future drops out, it is often regarded as a measure of whether long-term inflation expectations are anchored.

Example: 10-year breakeven 2.30%, 5-year 2.40%: (1.023¹⁰ / 1.024⁵)^(1/5) − 1 = 2.20%.

More: Market expectations: what the yield curve, inflation-linked bonds and options reveal about the future

The classic mix of 60% equities and 40% bonds. It is the benchmark for balanced portfolios; how well it works depends heavily on the correlation between equities and bonds.

More: 60/40 portfolio: the classic mix of equities and bonds

A 60/40 portfolio with leverage of 1.5: 90% equities and 60% bonds on 100% of capital, usually via bond futures. The return is roughly 1.5 × the 60/40 return − 0.5 × the money market rate.

Example: Equities +8%, bonds +4%, money market 3%: 60/40 +6.4%, 90/60 1.5 × 6.4 − 0.5 × 3 = +8.1%.

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