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.

A portfolio analysis software tool enables you to assess the performance of your investments and their overall impact on your portfolio’s returns.

Passive investment can refer to 2 concepts: An investment strategy that follows the composition and returns of existing market instruments (e.g. Indices). A buy-and-hold strategy in which investor purchases securities with the intention of keeping them long term,...

This is simply the ratio between the number of sub-periods where the account return (or relative return) has been ≥ 0 and the total number of sub-periods.

The QuantLib project is aimed at providing a comprehensive software framework for quantitative finance.

Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and...

R² is also referred to as the Coefficient of Determination and represents the proportion of variation in the dependent variable that has been explained or accounted for by the regression equation. It is the square of the correlation. R² can therefore be used to...

Period of time for which ex-ante risk figures are being forecasted. The most popular time frames for risk forecasts are 1 day and 1 week

The recovery period is the number of days which were necessary, to fill the maximum loss gap.

Amount of risk factors to be used in the calculation of risk factors history, e.g. 1 year or 2 years.

The term Registered Investment Adviser (RIA) is used to describe an Investment Adviser in the US who is registered with the Securities and Exchange Commission or a state's securities agency. An RIA is defined by the Securities and Exchange Commission as an individual...

Relative Return (also referred to as Geometric Excess Return or Geometric Active Return) measures the proportional out-performance (or under-performance) of a portfolio relative to the associated benchmark.  It is the return of the portfolio divided by the return of...

The risk-free rate is the minimum return an investor expects for any investment because he or she will not accept additional risk unless the potential rate of return is greater than the risk-free rate. Risk-free rate in most (developed) markets has, until recently,...