Overlay refers to a style of asset management that uses software to reconcile separately managed investor accounts.
The overlay system analyzes any portfolio adjustments to ensure that the entire portfolio is balanced, preventing inefficiencies and coordinating efforts according to the client’s tax situation and risk tolerance.
Overlay often involves the pooling of assets into a single management portfolio under the control of a manager who is advised by individual asset managers.
Attribution analysis is an evaluation tool used to explain and analyze the performance of a portfolio (or portfolio manager), especially when compared to a certain benchmark.
Investing from the bottom up is an investment approach that focuses on the analysis of individual stocks and downplays the importance of macroeconomic and market cycles.
A laissez-faire investor is a more passive investor who prefers to allocate assets and other investment decisions and then make minor adjustments over time.
Horizon analysis compares the predicted discounted return on a security or the total return on an investment portfolio over several time periods, often referred to as the investment horizon.
The hub and beam structure in investment uses multiple portfolio managers or sub-funds, known as “spokes” or “feeders”, who invest in a “center” or “master fund”.
Investment analysis involves researching and evaluating a security or industry to predict its future performance and determine its suitability for a particular investor.