| Price Trend |
See Trend
|
| Principal Protection |
An arrangement or mechanism
built into an investment product whereby investors are
assured that their initial or investment is secure and
that this amount will at the very least be returned
to them when such a product reaches its maturity date.
Principal protection features can take a variety of
forms, including capital guarantees provided by banks.
Corporate and Government Bonds usually protect principal
Protected Investments, where a major bank usually guarantees
Capital Guaranteed Investments. |
| Proforma |
A representation of
a track record [see Track record] that is developed
to show the effect on actual performance of intended
or potential adjustments for different fee structures,
portfolio allocations or other variations in the investment
structure upon which the original track record is based.
It is important to note that a proforma is based on
actual trading results and differs from a simulation,
which models the hypothetical performance of a portfolio
or investment approach that has yet to be applied or
implemented in actual trading |
| Performance Fee |
Often referred to as
an incentive fee, this is the fee earned by a manager
on profits that surpass the previous high watermark
- the peak level in the net asset value of an investment
since inception (see Net new highs]. The calculation
of performance fees is sometimes based on that portion
of the new highs which exceeds a hurdle rate such as
the risk-free interest rate. |
| Portfolio Efficient
Frontier |
By plotting the intersection
of risk and reward for different investments or weightings
of assets, one can generate a risk/reward curve or 'frontier'
for those investments. The efficient frontier is the
point on such curve where an investment combination
delivers the most favourable balance of risk and reward.
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