Glossary
Find handy definitions of financial jargon quickly and easily.
Search for a term or browse our alphabetical list.
GAV (gross asset value)
Value of fund's or ETF's assets per share before subtracting any fees.
GIPS Composites
A composite is an aggregation of one or more portfolios managed according to a similar investment mandate, objective, or strategy and is the primary vehicle for presenting performance to prospective clients. The firm must include all actual, fee-paying, discretionary...
Global Investment Performance Standards (GIPS)
The Global Investment Performance Standards (GIPS) are standards used by investment managers for creating performance presentations that ensure a fair representation and full disclosure of investment performance results.
Hedge Fund
A hedge fund is an investment fund that can undertake a wider range of investment and trading activities than other funds, but which is only open for investment from particular types of investors specified by regulators. As a class, hedge funds invest in a diverse...
High Water Mark
The highest NAV of a fund to date is known as the "high water mark".
Hedge Ratio (Delta)
The ratio between the change in the theoretical value of an option and change in price of the underlying stock at a given point in time. In other words an option’s hedge ratio is the change in the price of an option for a $1 change in the stock price.
Hosted Environment (Hosted Client)
A facility in which a third-party holds the data and runs the programs in its own computers. In the context of StatPro, this means clients access our services (applications, market data etc) which are supported by StatPro infrastructure (servers) and can be accessed...
Holding-Period Return (HPR)
"Holding period return (HPR), also referred to as total return, is the percentage by which the value of an asset has grown for a particular period. It is the sum of price appreciation (capital gains) and income (e.g. dividends) divided by the initial price. True...
IFA
Independent Financial Advisers or IFAs ffer independent advice on financial matters to their clients and recommend suitable financial products. The term was developed to reflect a UK regulatory position and has a specific UK meaning, although it has been adopted in...
Index
Index is a basket of securities selected to represent the market (or its section) and is used as a benchmark for investors, showing whether a given investment has out- or underperformed the index. There are different methodologies for index construction (market...
Investment
The action or process of investing money for profit or material result.
Intangible Assets
Intangible assets lack physical substance and usually are very hard to evaluate. They include patents, copyrights, franchises, goodwill, trademarks, trade names, etc. Websites are treated differently in different countries and may fall under either tangible or...
Indexed Performance
This is the cumulative return of a fund indexed at 100 from the inception date of the fund or a specified future date. This differs from monthly returns which show the month by month percentage change in fund performance. Indexed performance is sometimes referred to...
Information Ratio
The Information Ratio measures a fund's return in excess of its benchmark (active return) divided by the standard deviation of the active return (tracking error). The information ratio is a synthetic indicator which allows comparing accounts with active management,...
ISIN – International Securities Identification Number
An ISIN uniquely identifies a security. Its structure is defined in ISO 6166. Securities for which ISINs are issued include bonds, commercial paper, equities and warrants. The ISIN code is a 12-character alpha-numerical code that does not contain information...
IRM – Intranet Reporting Module
The Intranet Reporting Module (IRM) has been specifically designed to allow StatPro clients the capability to host the reporting element of StatPro Composites on an internal company Intranet.
Investment Management Certificate (IMC)
The IMC is recognized by the fund management industry as the entry-level qualification of choice for those working in financial analysis and investment management in the UK. It is an exam which covers a broad base of conceptual issues and investment products in...
Investment Management Software/Investment Portfolio Management Software
At its most basic investment management software is a set of programs used to manage the buying and selling of investments within a portfolio. The term, investment portfolio management software, most often refers to technology enabling the portfolio manager to manage...