We believe a glossary is key for any client trying to navigate through the range of complex terms and jargon in our industry.
Our most frequently defined terms are defined below but if there's something you think we should add, please contact us.
Tactical asset allocation
Short-term deviation from a long-term strategic asset allocation to exploit predicted short-term relative movements in markets.
Time weighted rate of return
Rate of return of an asset or a portfolio that adjusts for the effect of cash flows. The time weighted return can be used to compare portfolios’ performance against each other and against market indices since it is unaffected by the size and incidence of external cash flows (which are outside the investment manager’s control). See also money weighted rate of return.
The overall return on a stock or portfolio taking into account changes in capital values and income earned.
Total return swap
A contract where the total return on a specified asset is exchanged for fixed or floating payments.
A mounts billed by a company to its customers when it delivers goods or services to them in the ordinary course of business. These billings are typically documented on formal invoices, which are summarised in an accounts receivable aging report.
A tier created during the process of dividing up access to an underlying pool of assets into securities of varying seniority and/or maturities.
The costs incurred when buying or selling and securities. Also referred to as explicit costs.