asset management Flashcards
(28 cards)
Long-Only Strategy
Investment strategy that involves buying and holding securities expected to increase in value.
Core-Satellite Strategy
Combines a core passive investment with actively managed satellite investments.
Thematic Investing
Investing based on macro-level trends like aging population or green energy.
LDI (Liability-Driven Investing)
Strategy focused on aligning assets to meet future liabilities, common in pensions.
Drawdown
The peak-to-trough decline in the value of an investment during a specific period.
Value at Risk (VaR)
Statistical technique to estimate the potential loss of a portfolio under normal conditions.
Stress Testing
Simulation to assess portfolio resilience under extreme market conditions.
Volatility
Degree of variation in investment returns over time.
Correlation
Measure of how two assets move in relation to each other.
AIFMD
EU directive regulating alternative investment fund managers.
Factsheet
A summary document that provides key information about an investment product.
Pitch Book
Marketing presentation used to communicate a fund’s value proposition to investors.
Net Asset Value (NAV)
Value per share of a fund, calculated as (Assets - Liabilities) / Number of shares.
Segregated Mandate
A bespoke investment portfolio managed for a single institutional client.
Information Ratio (IR)
Measures active return over tracking error; evaluates skill of a manager.
Sortino Ratio
Variation of Sharpe Ratio using downside deviation instead of standard deviation.
Convexity
Measure of the curvature in the relationship between bond prices and interest rates.
Liquidity Risk
The risk that an asset cannot be sold quickly without significantly affecting its price.
Credit Spread
Difference in yield between corporate bonds and government bonds of similar maturity.
Mandate
A set of guidelines or objectives for managing a client’s assets.
Overlay Strategy
An additional layer of investment strategy, often for hedging or currency control.
Performance Attribution
Analysis used to explain the sources of a portfolio’s performance relative to a benchmark.
Swing Pricing
A mechanism to protect existing investors from transaction costs caused by inflows/outflows.
Side Pocket
Mechanism in hedge funds to separate illiquid assets from liquid portfolio assets.
