Established by the CFA Institute, the CIPM program is a specialty credentialing program that develops and recognizes the performance evaluation and presentation expertise of investment professionals. CIPM consists of two exams: Principles and Expert. The Principles...

The CFA® Program (Chartered Financial Analyst) is the professional qualification administered and awarded by the CFA Institute, based in the United States and recognized globally by employers, investment professionals, and investors. To earn the CFA charter, one must...

The amount the segment contributes in percentage to the Expected Shortfall of the total portfolio

Confluence Portfolio Compliance (CPC) is a powerful rules engine and compliance workflow system that supports all regulatory requirements, client mandates, and house rules in a single consistent architecture. CPC provides a comprehensive repository of historical...

Percentage of VaR attributable to given segments or security. The sum of all portfolio constituents contribution to VaR will add to 100%, unlike individual cash VaR's, which, due to diversification effect, will never add up to overall portfolio cash VaR (except a...

The amount the segment contributes in percentage to the Tracking Error of the total portfolio.

Diversification is an in investment concept of spreading the risk by investing in a variety of assets. From risk management perspective, investing in one (or few) very profitable assets carries a risk of a huge loss if they were to suffer an unexpected loss. Investing...

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows. The discount rate takes into account the time value of money (the idea that money available now is worth more than the same amount of money available in the...

Diversification Grade shows how much risk was eliminated ("diversified away") by diversifying within the portfolio at each segment level, as well as in the portfolio as a whole. The risk that can be diversified away is referred to as unsystematic risk. The formula for...

Downside risk is a risk that actual return of the portfolio will be lower than expected return. It is usually measured using semi-standard deviation, which measures the variability of underperformance below a minimum target rate (StatPro Revolution uses risk-free...

Extract, Transform and Load – is a tool developed to aid StatPro in extracting client data from outside sources, transforming it to fit operational needs and loading it into the data repository (StatPro Data Hub).

Equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid.

For fully-funded instruments, it is the absolute monetary value of position, segment of the portfolio, or portfolio, regardless whether the position is long or short. For derivatives, exposure also denotes leverage, i.e. the value of the position we're exposed to,...

After the fact. Ex-post is a term usually used in the context of performance measures, such as total return or attribution. In this case the performance is calculated as a function of actual portfolio returns over time.

See gross weight