A United Nations-sponsored commission that seeks to create a forum for countries to come together and set international trade law standards. The United Nations Commission on International Trade Law (UNCITRAL) meets annually to discuss matters of international trade, with meetings alternating between Austria and the United States. Working groups meet outside the annual conference. |||UNCITRAL was established by the UN General Assembly in 1966. The rise of international trade during the 20th century necessitated that countries cooperate in order to increase trade efficiencies and reduce the possibility of a trade way. While the commission has a set membership, non-member countries and organizations are able to contribute during the work sessions but are not allowed to vote.
An international organization formed in 1945 to increase political and economic cooperation among member countries. The organization works on economic and social development programs, improving human rights and reducing global conflicts. The United Nations is composed of the General Assembly (for legislation), a Security Council (for the promotion of peace), an Economic and Social Council (for economic development), a Secretariat (administration and information and the International Court of Justice (for judicial matters). It is also responsible for the World Health Organization (WHO), UNICEF and the World Food Programme. |||The United Nations was formed in the wake of WWII as a way to reduce tensions among countries and to reduce the possibility of other large-scale conflicts. Almost every country and sovereign state is represented, and the organization's leader, the Secretary-General, is appointed by the General Assembly. Funding for the organization comes from its members, with the United States contributing the largest amount to the budget.
An unincorporated mutual fund structure that allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund. The investment fund is set up under a trust deed. The investor is effectively the beneficiary under the trust. See also "unit investment trust". |||The success of a unit trust depends on the expertise and experience of the management company. Common types of investments undertaken by unit trusts are property, securities, mortgages and cash equivalents. In the U.K. the term "unit trust" is synonymous with "mutual fund" as it is used in North America.
A type of insurance vehicle in which the policyholder purchases units at their net asset values and also makes contributions toward another investment vehicle. Unit linked insurance plans allow for the coverage of an insurance policy, and provide the option to invest in any number of qualified investments, such as stock, bonds or mutual funds. |||A unit linked insurance plan acts just like a savings vehicle, but also has the benefits of an insurance contract. When an investor purchases units in a ULIP, he or she is purchasing units along with a larger number of investors, just like an investor would purchase units in a mutual fund.Different ULIPs offer different qualified investments. Be sure to read the plan's prospectus before purchasing any ULIP.
An entity (investee) in which the investor has obtained less than a majority-owned interest, according to the United States Financial Accounting Standards Board. A variable interest entity (VIE) is subject to consolidation if certain conditions exist.If a firm is the primary beneficiary of a VIE, the holdings must be disclosed on the balance sheet. The primary beneficiary is defined as the person or company with the majority of variable interests. Also known as a conduit. |||VIEs are commonly used within financial firms for their subprime mortgage-backed securities. They can be a special-purpose vehicle (SPV) that allows firms to keep assets off of their balance sheets. A VIE refers to the way a firm's exposure to the SPV can change. This is the key to whether or not it can be excluded from the balance sheet. A corporation can use such a vehicle to finance an investment without putting the entire firm at risk. The problem, as with SPVs in the past, is that they have become a method of hiding things (such as subprime exposure).
An index that tracks the monthly performance of a hypothetical $1000 investment. The calculation for the current month's VAMI is:= Previous VAMI x (1 + Current Rate of Return) |||The value-added monthly index charts the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding. The VAMI index is sometimes used to evaluate the performance of a fund manager.
In currencies, this is the abbreviation for the U.S. dollar. |||The currency market, also known as the forex market, is the largest financial market in the world, with a daily average volume of over US$1 trillion.
Income regularly generated by a tax-exempt entity by means of taxable activities. This income is not related to the main function of the entity, but is needed to generate a small portion of income. |||If an investor holds an Individual Retirement Arrangement (IRA), and the fund generates income which qualifies as UBTI, the fund may be subject to taxation.