The words on this platform, in plain language

In two sentences

This glossary defines the 32 terms used across the Framont Access product pages, grouped into instruments and wrappers, who does what, costs and performance, investor classification, and documents and safeguards. The definitions are a reading aid: where one differs from the Fund Rules, Offering Supplement, prospectus, final terms or Key Information Document of a specific product, that document governs.

Every term used on the product pages, explained without jargon — instruments and wrappers, who does what, costs, investor classification and the documents behind each product.

How to use these definitions

Several of these words are used loosely in the market and precisely in law, and the gap between the two is where investors get caught. Where a term has a regulatory meaning, the definition here follows it. Where a term is industry usage rather than a defined legal concept, it is described as such. Nothing on this page replaces the documentation of a product.

Instruments and wrappers

Exchange Traded Instrument (ETI) (Strumento quotato): A listed security issued by a securitisation vehicle that packages a managed investment strategy into an instrument with its own ISIN. It is traded like a share by ISIN, though not every broker offers the venue, so access should be confirmed for the specific instrument. Whether its assets are segregated or secured is set out in the issuer's base prospectus and the instrument's final terms.
Actively Managed Certificate (AMC) (Certificato a gestione attiva): A securitised certificate whose value tracks a strategy managed on a discretionary or systematic basis by an appointed manager. It gives fund-like exposure in the format of a security, and can be brought to market faster and at lower asset levels than a fund.
Alternative Investment Fund (AIF) (FIA, Fondo di Investimento Alternativo): A collective investment fund that is not a UCITS, managed under the AIFMD and generally reserved for professional and eligible investors. Framont's range includes Italian reserved AIFs and Malta-domiciled Notified AIFs.
Reserved AIF (FIA riservato): An Italian alternative investment fund whose units may be subscribed only by professional investors, or by other investors meeting the minimum set in the fund's rules. Most of Framont's real estate funds are closed-ended reserved AIFs.
Notified AIF (AIF Notificato): A Malta-domiciled alternative investment fund entered in the MFSA's list of notified AIFs, rather than separately licensed, on the responsibility of a fully authorised AIFM. Framont's Malta funds are Notified AIFs: Asymetria Fund and Earth Horizon Fund as sub-funds of Global Series SICAV plc, and CIREDCO Fund 1 as a closed-ended fund in its own right.
Credit-Linked Note (CLN) (Nota legata al credito): A note whose coupon and repayment depend on the performance of an underlying credit exposure, typically a loan. The investor takes the credit risk of that exposure as well as that of the issuer.
Protected cell (PCC) (Cella protetta): A legally ring-fenced compartment inside a protected cell company. Each cell holds the assets and liabilities of one product only, so the performance of one product does not reach the investors of another.
Closed-ended / open-ended (Chiuso / aperto): A closed-ended fund has a fixed life and no ongoing redemptions: capital is returned as assets are sold. An open-ended fund accepts subscriptions and redemptions at set dealing dates: monthly for Asymetria, semi-annual for Earth Horizon.

Who does what

Portfolio Manager (Gestore di portafoglio): The regulated entity that takes the investment decisions inside an instrument. For every product referenced on this platform that entity is Framont & Partners Management Ltd, an AIFM authorised by the MFSA.
Strategy Developer (Sviluppatore della strategia): The person or firm that designs the underlying strategy an instrument follows. A strategy developer provides the strategy only and does not manage the portfolio; results achieved on a developer's personal accounts are independent of the instrument and are not indicative of its performance.
AIFM (Alternative Investment Fund Manager): A manager of alternative investment funds authorised under the AIFMD, subject to requirements on capital, risk management, valuation, delegation and reporting. Framont & Partners Management Ltd is authorised by the MFSA.
Issuer (Emittente): The entity that issues a certificate or listed instrument and owes the investor repayment. Its creditworthiness is the issuer risk carried by every note and certificate, whatever the underlying strategy does.
Depositary (Depositario): The bank appointed under the AIFMD to hold a fund's assets in custody, verify ownership, monitor cash flows and oversee the manager's compliance with the fund rules.
Paying agent (Paying agent): The bank that handles settlement, coupon payments and redemptions on a certificate or note. On the GenTwo products this role is performed by InCore Bank AG.
Market maker (Market maker): The party that quotes buy and sell prices for a listed instrument during market hours. The tightness of those quotes, not the strategy, is what determines how easily an investor can trade in size.

Costs and performance

Management fee (Commissione di gestione): The annual fee charged for managing the strategy, accrued on the value of the instrument or fund and deducted before the value the investor sees.
Performance fee (Commissione di performance): A share of the gain above an agreed threshold, paid to the manager. Where a high-water mark applies, it is charged only on new gains above the highest value previously reached.
High-water mark (High-water mark): The highest value an instrument has previously reached. It prevents an investor from paying a performance fee twice on the same recovery after a loss.
Ongoing costs (Costi correnti): The total annual running cost of an instrument as disclosed in its Key Information Document: management, administration and other recurring charges together. That is the figure to compare across products.
Backtest (Backtest): A simulation of how a strategy would have behaved on historical data. It involves no real trading, benefits from hindsight in its design, and is not a reliable indicator of future results.
Settlement T+2 (Regolamento T+2): Trade date plus two business days, the point at which a purchase of a listed instrument is actually settled and the security appears in the investor's account.

Investor classification

Professional investor (Investitore professionale): A client classified as professional under MiFID II, presumed to have the experience and knowledge to take investment decisions and assess the risks involved. Several products on this platform are reserved for this class.
Elective professional client (Cliente professionale su richiesta): A retail client who asks to be treated as professional, and is reclassified only after Framont has verified that the conditions set by MiFID II are met. Opting up means giving up some of the protections a retail client receives; the applicable conditions and their consequences are set out before any reclassification.
Qualified investor (Investitore qualificato): An investor who meets the criteria set out in the offering documentation of a specific product, a threshold defined per product, which may differ from the MiFID II professional classification.
Eligible investor (Investitore idoneo): An investor who, without being professional, meets the conditions a fund's own rules set for subscription, for example a minimum subscription of €500,000 in the Wright fund.
Retail investor (Investitore retail): Any client not classified as professional. Retail clients receive the fullest set of protections under MiFID II, including a mandatory Key Information Document and a suitability assessment before subscription.

Documents and safeguards

Key Information Document (KID) (Documento informativo chiave): A standardised document required by the PRIIPs Regulation, at most three pages, setting out what the product is, its risk indicator, performance scenarios, total costs and how to complain. It is the first document to read before investing.
Prospectus and final terms (Prospetto e condizioni definitive): The full legal documentation of a listed instrument: the prospectus sets out the issuance programme, the final terms the specific instrument. Together they are the binding text behind every summary.
Fund Rules / Offering Supplement (Regolamento di Gestione / Offering Supplement): The constitutional documents of a fund, setting out strategy, terms, costs and risk factors. Italian funds use the Regolamento di Gestione; Malta funds an Offering Supplement alongside the Offering Memorandum.
ISIN (International Securities Identification Number): The twelve-character code that identifies a security uniquely worldwide. It is what an investor gives their bank or broker to place an order on the right instrument.
Issuer risk (Rischio emittente): The risk that the issuer of a note or certificate fails to meet its obligations, independently of how the underlying strategy performs. Collateralisation and segregated portfolios reduce this risk but do not remove it.
Private placement (Collocamento privato): An offer made to a restricted circle of investors rather than to the public, and therefore outside the prospectus obligations that apply to public offers.

Last reviewed 25 August 2026 · Editorial and review policy

Product comparison — Every product open to subscription, side by side.
Structure and safeguards — Who issues, who manages and where each instrument trades.
Insights — Longer guides on ETIs, AMCs, funds, KIDs and private credit.