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Gross asset value, the value of a share of a fund, without deduction for fees.

GICS® sector
The Global Industry Classification Standard (GICS) was developed by Morgan Stanley Capital International (MSCI) and Standard & Poor’s (S&P). GICS classifications aim to enhance the investment research and asset management process for financial professionals worldwide. It responds to the financial community’s need for an accurate, complete and standard industry definition. The GICS structure consists of 10 sectors, 24 industry groups, 62 industries and 132 sub-industries.

Global Investment Performance Standards. GIPS standards are ethical standards to be used by investment managers for creating performance presentations that ensure fair representation and full disclosure.

gross return
Performance with no deduction for fees.


high-water mark
The highest AUM value achieved for a fund since inception. As a threshold for the calculation of incentive fees, it serves to ensure that a fund manager only collects fees on the net gain over the previously recorded high water mark. For example, if the value of an investor's contribution falls to, say, $750,000 from $1 million during the first year, and then rises to $1.25 million during the second year, the manager would collect incentive fees from that investor only on the $250,000 that represented actual growth in the high-water mark. A high-water mark can be reset, that is the high-water mark value can be set to the current fund's value.

hurdle rate
The minimum return necessary before a fund manager can collect incentive fees. The hurdle is often tied to a benchmark rate such as LIBOR or the one-year Treasury bill rate plus a spread. If, for example, the manager sets a hurdle rate equal to 5%, and the fund returns 15%, incentive fees would only apply to the 10% above the hurdle rate.

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