Measures the change in the total portfolio volatility following an increase of investment of 1 unit of portfolio base currency in the asset or segment.

A periodic payment made by investors to fund (or portfolio) manager for portfolio management services. Unlike performance fee, management fee is not linked to the performance of the portfolio. Management fees are typically higher for active investment strategies than...

The price at which investors can buy or sell an investment at a given time multiplied by the quantity held plus any accrued income.

Measures the change in the total portfolio Potential Upside following an increase of investment of 1 unit of portfolio base currency in the asset or segment.

Measures the change in the total portfolio Expected Upside following an increase of investment of 1 unit of portfolio base currency in the asset or segment.

Measures the change in the total portfolio Expected Shortfall following an increase of investment of 1 unit of portfolio base currency in the asset or segment.

Where Alternative Investment Fund Managers are marketing EU and non-EU AIFs to investors based in the EU, the National Private Placement Regime (NPPR) allows AIFMs to seek authorization from the relevant member states as an alternative to the AIFMD up until at least...

Weight of an instrument or segment of the portfolio with long and short positions netted out. For example, for a portfolio that is USD 130mln long and USD 30mln short, net weight of long and short positions would be 130% and -30% respectively, while gross weights...

A fund's or exchange-traded fund's (ETF) per-share value. It is calculated by dividing the total value of all the securities in its portfolio, less any liabilities (such as fees), by the number of fund shares outstanding.

Fund or portfolio return after all the previously agreed-upon fees (e.g. management, performance) have been deducted. It's the actual realized returned available to investors (before applicable taxes).

Also known as systematic risk or market risk is the investment risk which arises from macro-economic changes or events that impact large portions of markets and is common to an entire class of assets or liabilities.

Over-the-counter (OTC) instruments (most frequently derivatives, although any instruments can be traded OTC) are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary.

Oversight within the investor community is the requirement to have a holistic overview of portfolios, performance and risk. Oversight is often managed by a third party but can be managed in house. Third parties can be Authorized Corporate Directors (ACDs) but are also...

A type of collective investment vehicle where the number of investors and the total committed capital are not fixed and is open for subscriptions and/or redemptions.

Portfolio management involves deciding what assets to include in the portfolio, given the goals of the portfolio owner and changing economic conditions. Selection involves deciding what assets to purchase, how many to purchase, when to purchase them, and what assets...

Portfolio is a basket of investments. The investments can be securities, such as stocks and bonds, commodities, real estate, or any other investable asset. The aim of the portfolio is to deliver the best risk/return trade-off for the investors given the portfolio...

A pension fund is any plan, fund, or scheme which provides retirement income. Pension funds are important shareholders of listed and private companies.

Portfolio analysis is often referred to as portfolio analytics at StatPro. In this glossary the two are interchangeable. Portfolio analysis is the study of the performance of a portfolio in order to maximize the expected or future return for a given amount of...

Portfolio management involves deciding what assets to include in the portfolio, given the goals of the portfolio owner and changing economic conditions. Selection involves deciding what assets to purchase, how many to purchase, when to purchase them, and what assets...

Evaluation of portfolio performance over a chosen time-frame. Key components of portfolio performance are return and contribution. Portfolio performance can be measured against a benchmark or in absolute terms.

Evaluation of your investments return.

Portfolio risk is the possibility that an investment portfolio may not achieve its objectives. There are a number of factors that contribute to portfolio risk, and while you are able to minimize them, you will never be able to fully eliminate them.

Portfolio risk analysis can be broken into realized (ex-post) and estimated (ex-ante) risk. Ex-post risk will include factors such as historical volatility or historical VaR, both on securities- and total portfolio level. Ex-ante risk analysis focuses on the losses a...

A payment made to a fund manager for generating returns above agreed-upon level or benchmark. The performance fee is generally calculated as a percentage of investment profits

Wealth management as an investment-advisory discipline incorporates financial planning, investment portfolio management and a number of aggregated financial services. High-net-worth individuals (HNWIs), small-business owners and families who require the assistance of a credentialed financial advisory specialist call upon private wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management.

Absolute or relative potential gain expressed as a cash amount. Potential gain is the opposite of Value at Risk.

Portfolio Aggregate (PA) is in principle a regular portfolio, with positions being the sum of positions of the constituent portfolios. PA stores the breakdown of positions by constituent portfolios, rather than simply adding the securities up. Furthermore, PA remains...

Also known as StatPro Composites is StatPro’s composites product acquired from Performa. The product gathers and processes data to help with all stages of the GIPS audit and verification process.