- Q -
An account is a component of a portfolio. An account can be either
a real account (i.e., it is a copy of an account at a bank
or a custodian) or internal (i.e., it is used for fees, loan
positions or other internal accounting requirements). An
account is normally included in the evaluation of a
portfolio, but it can also be used to represent an external
account which would not be included. An account can be
queried to provide balances for a cash account or
the stock of fund shares for a security account, and the
detailed transactions that make up the balances. Account
types currently supported in Webfolio: Capital Call;
Current; Error; External; Fees; Fiduciary; Loan; Margin;
Payable; Receivable; Security.
An overdrawn account; captured on the Exception Handling
Form for Accounts.
An account type constraint is a test criterion for the
balance of an account either of the weight of the balance
versus the overall value of the portfolio; or the actual
base balance against predetermined limits.
A service provider that hedge funds hire to calculate fund
performance, oversee shareholder relations and perform other
record-keeping functions. U.S.-based fund managers that run
offshore funds employ local administrators to handle
back-office functions for those entities—in order to gain the
tax advantages available to truly offshore vehicles.
A portfolio managed by an external portfolio manager.
Activity on the portfolio is generally limited to providing
allocation recommendations and performing analysis of past
A user-definable short form of a long or formal name.
Webfolio often uses the alias in reports and screen
Prospective investment decisions created in Front Office.
A directive is an allocation for an internally managed
portfolio. A recommendation allocation is used for advisory
portfolios. Typically allocations are assessed and ratified before being sent to
the middle office for execution. Allocations are further sub-divided by
type, including: buy; sell, re-weight; switch; transfer.
Measures the value that an investment manager produces, by
comparing the manager's performance to that of a risk-free
investment (usually a Treasury bill). For example, if a fund
had an alpha of 1.0 during a given month, it would have
produced a return during that month that was one percentage
point higher than the benchmark Treasury. Alpha can also be
used as a measure of residual risk, relative to the market in
which a fund participates
A category of investments that includes arbitrage
vehicles, commodities, distressed securities, hedge funds,
managed funds, oil-and-gas partnerships, private equity, real
estate, timber, venture capital or other assets whose returns
aren't correlated to the stock and bond markets.
A fee can be amortized over a user defined period,
calculated and charged according to the parameters set up for
the fee. The amortization can be linear or actuarial.
rate of return
The compounded gain or loss in a fund's net asset value
during a calendar year.
Assets Under Management
annual return / annualized rate of return / annualized
Cumulative gains and losses over a number of years divided by the number of years
of an investment, with compounding taken into account.
The measure is used to compare returns on investments for
periods ranging from partial to multiple years
gain (gain mean)
This is a simple average (arithmetic mean) of the periods
with a gain. It is calculated by summing the returns for gain
periods, then dividing the total by the number of gain
loss (loss mean)
This is the simple average (arithmetic mean) of the
periods with a loss. It is calculated by summing the returns
for loss periods, then dividing the total by the number of
Cumulative gains and losses over a number of months divided by the number of
months of an investment, with compounding taken into
return / average rate of return
This is a simple average return (arithmetic mean)
calculated by summing the returns for each period and dividing
the total by the number of periods. The simple average does
not take the compounding effect of investment returns into
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