This is defined as the apportionment of the assets in a portfolio according to the chosen combination of assets, risk and geographical area. Both bottom-up and top-down analyses are performed to apportion assets.
The objective of this management system is to produce better returns for the managed portfolio than the market average by using independent criteria based on the manager's information and experience in selecting investments. It is the opposite of passive management which simply mirrors a market index.
A loss in value resulting from the difference between the purchase price and the lower price at which an investment fund's units are sold.
Management system where the aim is for the managed assets to mirror the market performance by building a portfolio that replicates the index.
This consists in selecting the optimum return/risk combination for each investor. The investment process is therefore based on analysing the investor's risk tolerance, selecting investments and executing buy and sell orders for specific securities.
Pledging of units
The unit holder may pledge its units in an investment fund as a guarantee against a loan from a financial institution.
This refers to the set of assets that make up an investment fund.