![]() ![]() Commingled Fund: an investment vehicle that sells units of ownership in itself to one or more investors and uses the proceeds to purchase financial assets for the benefit of the investors.Buyout: a form of private equity in which a partnership buys all the shares of a public company, usually taking on a large debt, to operate the company privately with the intention of eventually making a profit by taking the company public again or selling part or all of it to another business.Bond (also Fixed-Income Security): a type of investment in which the holder lends money to another entity and is then entitled to periodic payments of interest and a return of the capital at a specified time in the future.Benefit Security Ratio: see Funded Ratio.Benefits: periodic payments promised or expected to be made to the designated beneficiaries of a pool of assets.A benchmark portfolio represents a relevant and investable alternative to the investor’s actual portfolio and, in particular, is similar in terms of risk exposure. Benchmark: a portfolio with which the investment performance of an investor can be compared for the purpose of determining investment skill. ![]() Asset Class: a broadly defined generic group of financial assets, such as stocks or bonds.Asset Allocation: the process of determining the desired division of an investor’s portfolio among available asset classes.Alternative Investment: a term used to categorize assets other than traditional publicly traded stocks and bonds, including but not limited to private equity, real estate, hedge funds, commodities, timber, and infrastructure.Agency Conflict: the potential for conflict of interest between an agent and the person or organization for which the agent is acting.Actuary: a person or firm that specializes in estimating the liabilities associated with a benefit plan or an insurance trust.Active Management Risk: the risk taken by an active portfolio manager to earn active management returns by taking positions different from the benchmark typically measured by the standard deviation of active management returns.Active Management Return: the difference between a portfolio’s return and the benchmark’s return.Active Management: a form of investment management that involves buying and selling financial assets with the objective of earning returns greater than a specified benchmark.
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