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PAC/PIC It is possible to subscribe to a fund by means of a single initial payment (PIC), making the investment in a one-off payment complying with the minimum entrance threshold which varies from fund to fund, or through a series of payments at the time (PAC, periodic payment plan). In the latter case the subscriber undertakes to make a set number of payments by a certain date for set amounts. This system enables the average purchase price to be lessened. Parent Company Also called a holding company, the controlling company that issues directives as to the financial management policies of the subsidiary companies. Payout The percentage of profit distributed or the ratio between the amount of the dividend (distributed profit) and overall profit. Pension Funds Funds that offer additional pension services to a group of workers (employees and freelance workers) to those provided by the compulsory public social security system. There are two main categories of pension funds: closed funds and open funds. The first are set up on the basis of collective contracts or agreements and are aimed at a similar group of workers (eg, the employees of one company or workers in the same economic sector). The second are set up directly by a special broker (insurance company, bank, brokerage company or credit society) for all workers – employees or freelance - for whom there are no closed funds or the closed funds do not operate. Periodic Payment Plan It is possible to subscribe to a fund through a series of payments at the time ( periodic payment plan). In the latter case the subscriber undertakes to make a set number of payments by a certain date for set amounts. This system enables the average purchase price to be lessened. Periodic Statements and Reports Official documents and certifications that show depositors/investors how investments are made up and the value of the fund. They are deposited and posted at the registered offices and at the Italian Stock Exchange (if the fund is listed) by the day after their approval and within 30 days at the depository bank, as well as in the appropriate sections of the fund's website (for retail funds). |
