General Information

Investment Acronym Glossary

A


AiCIO

Asset International Chief Investment Officer Magazine – A magazine and online media covering Chief Investment Officers across the globe.


ACGA

Asian Corporate Governance Association


ACWI

All World Country Index – A global equity benchmark by MSCI index that includes Developed and Emerging markets.


ADR

American Depository Receipt – A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange.


AHT

After-Hours Trading


AUD/USD

Australian Dollar/U.S. Dollar

B


BPS

Basis Point – A unit equal to 1/100th of 1 percent and is used to denote change in a financial instrument.


BOE

Barrel Of Oil Equivalent


BRIC

Brazil, Russia, India and China

C


CAC 40

France’s version of the Dow Jones comprised of 40 top stocks in France


CAD

Canadian Dollar


CAIA

Chartered Alternative Investment Analyst


CBOE

Chicago Board Options Exchange


CD&A

Compensation Discussion & Analysis – Explain and justify the material elements of a company’s compensation of named executive officers relative to the following items: the objectives of the compensation program(s); what each compensation program is designed to reward; each element of compensation; why each element was chosen; how amounts and formulas for pay are determined; and how each compensation element and the company’s decisions regarding that element fit into its overall compensation objectives and affect decisions regarding other elements.


CDO

Collateralized Debt Obligation


CDP

Carbon Disclosure Project


CDR

Chinese Depositary Receipt


CERES

Coalition for Environmentally Responsible Economies


CFAI

Chartered Financial Analyst Institute – The CFA Institute is the global, not– for– profit association of investment professionals that awards the CFA and CIPM designations and offers a range of educational opportunities online and around the world.


CG

Corporate Governance – The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, formal policy, and rule of law.


CIC

Chartered Investment Counselor


CII

Council of Institutional Investors – The Council of Institutional Investors is a non-profit association of public, union and corporate pension funds with combined assets that exceed $3 trillion. Member funds are major long-term shareholders with a duty to protect the retirement assets of millions of American workers. The Council strives to educate its members, policymakers, and the public about good corporate governance, shareowner rights, and related investment issues and to advocate on its members’ behalf.


CLO

Collateralized Loan Obligations – Security backed by the receivables on loans.


CME

Chicago Mercantile Exchange (MERC)


CPFF

Commercial Paper Funding Facility


CTA

Commodity Trading Advisor – An individual or firm that advises clients on or manages a managed future account which contains options and futures. CTAs must register with the Commodity Futures Trading Commission and the National Futures Association.

D


DAX

The main German stock market index.


DM

Developed Market as defined by an index provider. The classification differs between the equity and fixed income universe.

E


EAFE

Europe Australia Far East index – A global equity benchmark by MSCI index of 21 major developed nations.  The index covers the top 80 percent of the publicly traded equities in each market.


EM

Emerging Market as defined by an index provider. The classification differs between the equity and fixed income universe.


EPS

Earnings Per Share – The portion of a company’s profit allocated to each outstanding share of common stock.


ESG

Environmental, Social, and Governance topics such as climate change, energy use, political contributions, labor and human rights.


ETF

Exchange Traded Fund – A listed stock that owns or tracks a group of stocks or an industry. The competing product is “I Shares” which are managed by Blackrock.

F


FASB

Financial Accounting Standards Board


FI

Fixed Income


FM

Frontier Market – An investment market in an early developed nation such as African nations.


FTSE (Footsie)

The Financial Times Stock Index – The main UK stock index and a major global equity index provider.

G


GASB

Government Accounting Standards Board


GBP/USD

British Pound/U.S. Dollar


GDR

Global Depository Receipt – A bank certificate issued in more than one country for shares in a foreign company.


GE

Global Equity


GRESB

Global Real Estate Sustainability Benchmark – GRESB is an industry-driven organization committed to assessing the sustainability performance of real estate portfolios (public, private and direct) around the globe. The dynamic benchmark is used by institutional investors to engage with their investments with the aim to improve the sustainability performance of their investment portfolio, and the global property sector at large.

H


HAMP

Home Affordable Modification Program


HY

High Yield fixed income investments.

I


ICGN

International Corporate Governance Network


IFE

Institute of Fiduciary Education


INCR

Investor Network on Climate Risk


IPO

Initial Public Offering – The sale or distribution of a stock or a portfolio company to the public for the first time.


IRR

Internal Rate of Return – The discount rate at which the present value of future cash flows of an investment equals the cost of the investment. It is determined when the net present value of the cash outflows (the cost of the investment) and the cash inflows (returns on the investment) equal zero. The rate of discount being used is the IRR.


IRRCi

Investor Responsibility Research Center Institute – The IRRC Institute (IRRCi) is a not-for-profit organization established in 2006 that serves as a funder of environmental, social and corporate governance research. The IRRCi provides unbiased research that does not advocate for any side of an issue. Instead, the research is a tool for investors, policymakers and interested stakeholders to make informed, fact-based decisions.


ISS (Risk Metrics)

A leader in proxy voting and corporate governance matters and delivers corporate governance solutions that enhance the interaction between shareholders and companies in order to help shareholders manage risk and drive value. Owned by MSCI.

L


LBO

Leverage Buyout – This is a buyout that is financed with a high proportion of debt (or leverage).


LIBOR

London Interbank Offering Rate – This is a series of rates set everyday by the British Bankers Association based on a survey of the estimate borrowing rates of major global banks.  The rates include one day to one year.  LIBOR is then posted for the day.


LINKERS

Inflation Linked Bonds – Bonds that adjust its value for inflation.

M


M&A

Merger and Acquisitions


MBO

Management Buyout – Buyout by the existing company’s management.


MBS

Mortgage Backed Securities is a structured debt security created from a pool of residential mortgage loans.


MVO

Mean Variance Optimization


MERC

Chicago Mercantile Exchange (CME)


MLP

Master Limited Partnership – A limited partnership that is publicly traded on a securities exchange. The entity combines the tax benefits of a limited partnership with the liquidity of publicly traded securities.


MSCI

A public company that publishes major global indices such as EAFE and ACWI; formally owned by two firms, Morgan Stanley and Capital International.


MSCI EAFE PLUS CANADA INDEX

The Morgan Stanley Capital International Europe, Australia & Far East Plus Canada Index. This index is a capitalization weighted index of all of the companies found in the developed country indices from Europe, Australasia, the Far East and Canada that are in the MSCI World Index as well.

N


NACD

National Association of Corporate Directors


NASDAQ

A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the NASDAQ was the world’s first electronic stock market.


NASIO

National Association of State Investment Officers – The association of state pension chief investment officers.


NASRA

National Association of State Retirement Association – The association of state pension CEO’s/executive directors.


NAV

Net Asset Value – Represents total assets at fair market value minus liabilities.


NCREIF Index

National Council of Real Estate Investment Fiduciaries Index – A property–level performance benchmark for institutionally owned real estate, calculated on a quarterly basis.


NCTR

National Council on Teacher Retirement


NOI

Net Operating Income – Rental and other income of a property, less operating expenses, but before the deduction of capital expenditures and debt service.


NYMEX

New York Mercantile Exchange


NYSE

A stock exchange based in New York City, which is considered the largest equities– based exchange in the world based on total market capitalization of its listed securities. Also known as the “Big Board”, the NYSE relied for many years on floor trading only, using the open outcry system. Today, more than half of all NYSE trades are conducted electronically, although floor traders are still used to set pricing and deal in high volume institutional trading.

O


ODCE (Odyssey)

Open End Diversified Core Equity Index – A capitalization weighted return index consisting of infinite life vehicles with multiple investors and the ability to enter and exit on a periodic basis. Funds maintain low leverage; equity ownership in U.S. stabilized office, retail, industrial, and multi– family and hotel properties.


OECD

The Organization for Economic Co-operation and Development – An organization that acts as a meeting ground for 34 countries (including the U.S. and Canada) which are advocates of the free market system and promotes policies that will improve the economic and social well-being of people around the world. The OECD provides a forum in which governments can work together to understand what drives economic, social and environmental change.


OTC

Over-The-Counter-Market – The trading of commodities, contracts or other instruments directly between two parties off of a regulated exchange.

P


PCAOB

Public Company Accounting Oversight Board – A non-profit organization that regulates auditors of publicly traded companies.


PE

Private Equity


P&I

Pension and Investment Magazine – The major media source covering pensions across the U.S.


PPI

Pacific Pension Institute – An educational non-profit that focuses on the Pacific Rim investments.


PPP

Public Private Partnerships – A government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, P3 or P3.


PSLRA

Private Securities Litigation Reform Act of 1995

R


R1

Russell 1000 Index – Measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92 percent of the U.S. market.


R2

Russell 2000 Index – The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000 Index representing approximately 10 percent of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.


R3

Russell 3000 Index – The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98 percent of the investable U.S. equity market.


RE

Real Estate


REOC

Real Estate Operation Company – The corporation that manages real estate assets. whose shares trade on a public exchange.

S


SEK

Swedish Krona


SGD

Singapore Dollar


SOX

Sarbanes Oxley – The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. The legislation not only affects the financial side of corporations, but also affects the IT departments whose job it is to store a corporation’s electronic records.


SWAP

SWAP Agreement – An arrangement between two parties to exchange one security for another, to change the mix of a portfolio or the maturities of the bonds it includes, or to alter another aspect of a portfolio or financial arrangement.

T


TIPS

Treasury Inflation Protected Securities – aka Linkers. These are U.S. Treasury issued inflation linked notes.

U


UNPRI

United Nations Principles of Responsible Investment


USD/CHF

U.S. Dollar/Swiss Franc


USD/JPY

U.S. Dollar/Japanese Yen

Z


ZAR

South African Rand

Commands