Asset allocation, the Glossary

Table of Contents

1. 70 relations: Active management, Annuities in the United States, Asset, Asset classes, Asset location, Bias, Bloomberg US Aggregate Bond Index, Bond (finance), Cash, Catastrophe bond, Coefficient of determination, Convertible bond, Currency, Deposit account, Derivative (finance), Distressed securities, Diversification (finance), Economic capital, Economies of scale, Economy, Efficient frontier, Efficient-market hypothesis, Emerging market, Expected return, Final good, Financial Analysts Journal, Financial correlation, Financial Planning Association, Financial risk, Futures contract, Gary P. Brinson, Goods, Gross domestic product, Index fund, Industry Classification Benchmark, Inflation, Infrastructure asset management, Insurance, Investment strategy, John C. Bogle, Life insurance, Life settlement, Market portfolio, Market timing, Market trend, Modern portfolio theory, Money market fund, Morningstar, Inc., Mutual fund, Option (finance), ... Expand index (20 more) »

2. Corporate development

Active management

Active management (also called active investing) is an approach to investing. Asset allocation and active management are investment management.

See Asset allocation and Active management

Annuities in the United States

In the United States, an annuity is a financial product which offers tax-deferred growth and which usually offers benefits such as an income for life.

See Asset allocation and Annuities in the United States

Asset

In financial accounting, an asset is any resource owned or controlled by a business or an economic entity.

See Asset allocation and Asset

Asset classes

In finance, an asset class is a group of financial instruments that have similar financial characteristics and behave similarly in the marketplace.

See Asset allocation and Asset classes

Asset location

Asset location (AL) is a term used in personal finance to refer to how investors distribute their investments across savings vehicles including taxable accounts, tax-exempt accounts (e.g., TFSA, Roth IRA, ISAs, TESSAs), tax-deferred accounts (e.g., Canadian RRSP, American 401(k) and IRAs, British SIPPs, Irish Personal Retirement Savings Accounts (RPSA), and German Riester pensions), trust accounts (e.g., grantor retainer annuity trusts, generation-skipping trusts, charitable remainder trusts, charitable lead trusts), variable life insurance policies, foundations, and onshore vs.

See Asset allocation and Asset location

Bias

* Bias is a disproportionate weight in favor of or against an idea or thing, usually in a way that is inaccurate, closed-minded, prejudicial, or unfair.

See Asset allocation and Bias

Bloomberg US Aggregate Bond Index

The Bloomberg US Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States.

See Asset allocation and Bloomberg US Aggregate Bond Index

Bond (finance)

In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time).

See Asset allocation and Bond (finance)

Cash

In economics, cash is money in the physical form of currency, such as banknotes and coins.

See Asset allocation and Cash

Catastrophe bond

Catastrophe bonds (also known as cat bonds) are risk-linked securities that transfer a specified set of risks from a sponsor to investors.

See Asset allocation and Catastrophe bond

Coefficient of determination

In statistics, the coefficient of determination, denoted R2 or r2 and pronounced "R squared", is the proportion of the variation in the dependent variable that is predictable from the independent variable(s).

See Asset allocation and Coefficient of determination

Convertible bond

In finance, a convertible bond, convertible note, or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value.

See Asset allocation and Convertible bond

Currency

A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.

See Asset allocation and Currency

Deposit account

A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money.

See Asset allocation and Deposit account

Derivative (finance)

In finance, a derivative is a contract that derives its value from the performance of an underlying entity.

See Asset allocation and Derivative (finance)

Distressed securities

Distressed securities are securities over companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy.

See Asset allocation and Distressed securities

Diversification (finance)

In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk.

See Asset allocation and Diversification (finance)

Economic capital

In finance, mainly for financial services firms, economic capital (ecap) is the amount of risk capital, assessed on a realistic basis, which a firm requires to cover the risks that it is running or collecting as a going concern, such as market risk, credit risk, legal risk, and operational risk. Asset allocation and economic capital are Actuarial science.

See Asset allocation and Economic capital

Economies of scale

In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time.

See Asset allocation and Economies of scale

Economy

An economy is an area of the production, distribution and trade, as well as consumption of goods and services.

See Asset allocation and Economy

Efficient frontier

In modern portfolio theory, the efficient frontier (or portfolio frontier) is an investment portfolio which occupies the "efficient" parts of the risk–return spectrum.

See Asset allocation and Efficient frontier

Efficient-market hypothesis

The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information.

See Asset allocation and Efficient-market hypothesis

Emerging market

An emerging market (or an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards.

See Asset allocation and Emerging market

Expected return

The expected return (or expected gain) on a financial investment is the expected value of its return (of the profit on the investment).

See Asset allocation and Expected return

Final good

A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike an intermediate good, which is used to produce other goods.

See Asset allocation and Final good

Financial Analysts Journal

The Financial Analysts Journal is a quarterly peer-reviewed academic journal covering investment management, published by Routledge on behalf of the CFA Institute.

See Asset allocation and Financial Analysts Journal

Financial correlation

Financial correlations measure the relationship between the changes of two or more financial variables over time.

See Asset allocation and Financial correlation

Financial Planning Association

Financial Planning Association (FPA) is the largest membership organization in the US representing financial planners. Current membership is 22,000.

See Asset allocation and Financial Planning Association

Financial risk

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.

See Asset allocation and Financial risk

Futures contract

In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other.

See Asset allocation and Futures contract

Gary P. Brinson

Gary P. Brinson is a former investor and money manager.

See Asset allocation and Gary P. Brinson

Goods

In economics, goods are items that satisfy human wantsQuotation from Murray Milgate, 2008, "Goods and Commodities".

See Asset allocation and Goods

Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and rendered in a specific time period by a country or countries.

See Asset allocation and Gross domestic product

Index fund

An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance ("track") of a specified basket of underlying investments.

See Asset allocation and Index fund

Industry Classification Benchmark

The Industry Classification Benchmark (ICB) is an industry classification taxonomy launched by Dow Jones and FTSE in 2005 and now used by FTSE International and STOXX.

See Asset allocation and Industry Classification Benchmark

Inflation

In economics, inflation is a general increase in the prices of goods and services in an economy.

See Asset allocation and Inflation

Infrastructure asset management

Infrastructure asset management is the integrated, multidisciplinary set of strategies in sustaining public infrastructure assets such as water treatment facilities, sewer lines, roads, utility grids, bridges, and railways.

See Asset allocation and Infrastructure asset management

Insurance

Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.

See Asset allocation and Insurance

Investment strategy

In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Asset allocation and investment strategy are investment management.

See Asset allocation and Investment strategy

John C. Bogle

John Clifton "Jack" Bogle (May 8, 1929 – January 16, 2019) was an American investor, business magnate and philanthropist.

See Asset allocation and John C. Bogle

Life insurance

Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policyholder).

See Asset allocation and Life insurance

Life settlement

A life settlement is the legal sale of an existing life insurance policy (typically of seniors) for more than its cash surrender value, but less than its net death benefit, to a third party investor.

See Asset allocation and Life settlement

Market portfolio

Market portfolio is an investment portfolio that theoretically consisting of a weighted sum of every asset in the market, with weights in the proportions that they exist in the market, with the necessary assumption that these assets are infinitely divisible.

See Asset allocation and Market portfolio

Market timing

Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements.

See Asset allocation and Market timing

Market trend

A market trend is a perceived tendency of the financial markets to move in a particular direction over time.

See Asset allocation and Market trend

Modern portfolio theory

Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. Asset allocation and Modern portfolio theory are corporate development.

See Asset allocation and Modern portfolio theory

Money market fund

A money market fund (also called a money market mutual fund) is an open-end mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper.

See Asset allocation and Money market fund

Morningstar, Inc.

Morningstar, Inc. is an American financial services firm headquartered in Chicago, Illinois, and was founded by Joe Mansueto in 1984.

See Asset allocation and Morningstar, Inc.

Mutual fund

A mutual fund is an investment fund that pools money from many investors to purchase securities.

See Asset allocation and Mutual fund

Option (finance)

In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option.

See Asset allocation and Option (finance)

Panic selling

Panic selling is a large-scale selling of an investment that causes a sharp decline in prices.

See Asset allocation and Panic selling

Pension fund

A pension fund, also known as a superannuation fund in some countries, is any program, fund, or scheme which provides retirement income.

See Asset allocation and Pension fund

Performance attribution

Performance attribution, or investment performance attribution is a set of techniques that performance analysts use to explain why a portfolio's performance differed from the benchmark.

See Asset allocation and Performance attribution

Portfolio (finance)

In finance, a portfolio is a collection of investments.

See Asset allocation and Portfolio (finance)

Portfolio optimization

Portfolio optimization is the process of selecting an optimal portfolio (asset distribution), out of a set of considered portfolios, according to some objective.

See Asset allocation and Portfolio optimization

Private equity

Private equity (PE) is capital stock in a private company that does not offer stock to the general public.

See Asset allocation and Private equity

Real estate

Real estate is property consisting of land and the buildings on it, along with its natural resources such as growing crops (e.g. timber), minerals or water, and wild animals; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general.

See Asset allocation and Real estate

Real estate investment trust

A real estate investment trust (REIT, pronounced "reet") is a company that owns, and in most cases operates, income-producing real estate.

See Asset allocation and Real estate investment trust

Risk appetite

Risk appetite is the level of risk that an organization is prepared to accept in pursuit of its objectives, before action is deemed necessary to reduce the risk. Asset allocation and risk appetite are Actuarial science.

See Asset allocation and Risk appetite

Roger G. Ibbotson

Roger G. Ibbotson (born May 27, 1943) is Professor Emeritus in Practice of Finance at the.

See Asset allocation and Roger G. Ibbotson

SEI Investments Company

SEI Investments Company, formerly Simulated Environments Inc., is a financial services company headquartered in Oaks, Pennsylvania, United States.

See Asset allocation and SEI Investments Company

A corporation's share capital, commonly referred to as capital stock in the United States, is the portion of a corporation's equity that has been derived by the issue of shares in the corporation to a shareholder, usually for cash.

See Asset allocation and Share capital

Tactical asset allocation

Tactical asset allocation (TAA) is a dynamic investment strategy that actively adjusts a portfolio's asset allocation. Asset allocation and Tactical asset allocation are investment management.

See Asset allocation and Tactical asset allocation

The Journal of Investing

The Journal of Investing is a quarterly peer-reviewed academic journal that covers research on investment management, asset allocation, performance measurement, benchmarking, mutual funds, investing strategies such as 130/30 funds, global allocation, and practical investment ideas and portfolio strategies for the institutional buy-side such as pension funds.

See Asset allocation and The Journal of Investing

The Journal of Portfolio Management

The Journal of Portfolio Management is a quarterly academic journal for finance and investing, covering topics such as asset allocation, performance measurement, market trends, risk management, and portfolio optimization.

See Asset allocation and The Journal of Portfolio Management

The Journal of Wealth Management

The Journal of Wealth Management is a quarterly academic journal covering the management of high-net-worth taxable portfolios.

See Asset allocation and The Journal of Wealth Management

Two-moment decision model

In decision theory, economics, and finance, a two-moment decision model is a model that describes or prescribes the process of making decisions in a context in which the decision-maker is faced with random variables whose realizations cannot be known in advance, and in which choices are made based on knowledge of two moments of those random variables.

See Asset allocation and Two-moment decision model

Variance

In probability theory and statistics, variance is the expected value of the squared deviation from the mean of a random variable.

See Asset allocation and Variance

Venture capital

Venture capital (VC) is a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number of employees, annual revenue, scale of operations, etc.

See Asset allocation and Venture capital

Wilshire 5000

The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all American stocks actively traded in the United States.

See Asset allocation and Wilshire 5000

See also

Corporate development

• Accounting rate of return
• Added value
• Allocative efficiency
• Asset allocation
• Asset-backed commercial paper
• Asset-backed security
• Asset-based lending
• Business valuation
• Capital asset pricing model
• Capital budgeting
• Capital structure
• Cash concentration
• Compliance requirements
• Concern (business)
• Corporate accelerator
• Corporate development
• Corporate group
• Corporate social responsibility
• Corporatization
• Cost accrual ratio
• Dividend
• Divisional buyout
• Economic cost
• Equity co-investment
• Field inventory management
• Fixed income arbitrage
• Fixed-asset turnover
• Fundamental theorem of asset pricing
• Innovation management
• Leveraged buyout
• Liquid capital
• Managerial finance
• Mergers and acquisitions
• Modern portfolio theory
• Porter's five forces analysis
• Project portfolio management
• Research and development
• Risk assessment
• Variable cost
• Variable costing

References

[1] https://en.wikipedia.org/wiki/Asset_allocation

Also known as Allocation fund, Asset allocation fund.

, Panic selling, Pension fund, Performance attribution, Portfolio (finance), Portfolio optimization, Private equity, Real estate, Real estate investment trust, Risk appetite, Roger G. Ibbotson, SEI Investments Company, Share capital, Tactical asset allocation, The Journal of Investing, The Journal of Portfolio Management, The Journal of Wealth Management, Two-moment decision model, Variance, Venture capital, Wilshire 5000.