Modified Dietz
The Modified Dietz method is a way to measure a portfolio’s historical (or ex-post) return. The result of the calculation is expressed as a percentage return over the holding period. Modified Dietz is […]
void rate
The void rate is the percentage of a property or portfolio that is vacant or unoccupied. High void rates could indicate poor demand or letting performance but could also reflect the completion of a […]
Active share
Active share is a measure of active risk. In other words it is a measure of how different a portfolio is from a benchmark. It is calculated by working out […]
Duration – of a bond
Duration, in the context of a bond, is used as a measure of the sensitivity of a bond to changes in interest rates. Expressed in years, it represents the weighted […]
Cash drag
When part of a portfolio is invested in cash or cash-equivalent securities, as opposed to securities which are the portfolio’s main focus, the cash component has no market exposure. This effect is referred […]
bottom up / top down
bottom up / top down – Some managers select individual investments that they like and assemble these into a portfolio – this is called bottom-up stock selection. Others may decide […]
warehousing – in finance
Warehousing – This is a catch-all name for a specific financing activity. Warehousing is where an asset manager takes a number of different assets, usually loans, and gathers them together […]
Real Estate Investment Trust or REIT
Real Estate Investment Trust or REIT – A REIT is a listed property company in a tax efficient structure: REITs must pay out 90% of their property income to shareholders […]
neutral weight
neutral weight – when a portfolio holds the same amount of an asset as the index Neutral weight is used as a relative term, generally regarding an index and in the context of a benchmark. […]
underweight
underweight – when a portfolio holds more of an asset than in the index Underweight is used as a relative term, generally to something neutral, generally an index and often refers […]
