A repository of acronyms, jargon, and technical explanations for LOGICLY users and their clients.
Throughout the financial services and wealth management industries, there is a myriad of terms that have interchangeable and differing meanings from firm to firm. Please utilize this section to clarify how LOGICLY defines certain terminology and metrics.
A B C D E F G H I K L M N O P Q R S T U V W
A
Active Return - Active Return is the calculation of % gained or lost compared to the investment's benchmark. It is calculated as Benchmark Returns minus Investment Returns.
Active Risk - Active Risk is the type of risk that arises as a fund or portfolio aims to beat the returns of its respective benchmark.
Asset Allocation - Asset Allocation is the investment strategy aiming to balance risk and returns by allocating between different asset classes based on the client's risk tolerance, time horizon, and desired outcomes.
B
Backfill - Backfilling is the process of replacing the performance history of a security inside a portfolio with a cash position. This is done when there is limited performance history on the fund to allow the analysis to extend returns to the earliest date in the database.
Basket Trading Hours - Basket Trading Hours is LOGICLY's tool that allows advisors to identify localized trading hour information of different baskets and funds that trade outside of US Market hours.
C
Charting Tools - Charting Tools are LOGICLY's in-app technical analysis functions found in multiple tools across the platform.
Compare Tool - LOGICLY's Compare Tool is an application that allows 2 or more holdings within a portfolio to be compared against one another across an array of metrics, be charted in tandem or individually, and breakdown the holdings across the selected funds.
Constituent - When LOGICLY refers to a constituent of a portfolio, we are referring to individual securities amongst a group of other funds within a portfolio. Constituent = Holding.
Correlation - Correlation is the degree to which two securities perform and move in relation to one another. LOGICLY's correlation calculations are vs. the input security and utilize 3 years of weekly return data.
CSV File - A CSV file (comma-separated values file) is a basic text file in which information is separated by commas and can be open in a variety of applications such as Notepad, Excel, Numbers, etc. In LOGICLY, the CSV files are used to download and upload Portfolios and Watchlists.
D
Drawdown - Drawdown is the measurement of the Peak-to-Trough decline calculated during a specific time period of an investment.
Downside Capture Ratio - Downside Capture Ratio is the measurement of a fund or portfolio's performance during low-performing periods of the market vs a benchmark or index. Downside Capture Ratio under 100 is an indication that the fund or portfolio outperformed the index or benchmark during the period.
Downside Volatility - Downside Volatility is the measurement of risk that focuses on funds that fall below the threshold of minimally acceptable returns.
E
Efficient Frontier - The Efficient Frontier refers to a set of portfolios that offer varying levels of optimized risk based on the client's expected level of returns. This is achieved by re-weighting the risk-heavy positions in the input portfolio. The Efficient Frontier tool can be found under 'Risk vs. Perf' in Portfolio Analysis.
ESG - ESG (Environmental, Social, and Governance) refers to a set of standards placed upon a company by investors based on their actions, attitudes, and exposures relative to the environment, internal culture and treatment of employees, and transparency of leadership. LOGICLY utilizes the S-Ray scoring system from Arabesque for ESG scores.
F
Forward Risk Estimate - Forward Risk Estimates are the forecasts of potential portfolio returns based on an assumption of the log-normal distribution of returns.
Fund Flows - Fund Flows is LOGICLY's in-application toolset that can identify the flow of funds across various Asset Classes, Geographical Locations, Issuers, and Peer Groups.
Fund Screener - Fund Screener is LOGICLY's screening tool that allows users to narrow the entire universe of ETFs and MFs by an array of filters and views they please.
G
Geography - In the LOGICLY Platform, Geography refers to the exposures across various countries worldwide within a fund or portfolio.
H
Hamburger Icon - This is the ≡ symbol in the top left corner of the platform that acts as your main menu when using the platform.
Household - LOGICLY classifies Households as the collection of portfolios that are grouped together to represent the totality of the individual's/couple's/families investment portfolio.
I
Integration - An Integration with the LOGICLY platform is the process of coordinating with custodians and data providers to set up a data feed to LOGICLY that allows full portfolio information including cost basis and tax lots to feed into the platform. Please speak to our Sales or CS team if you are interested in requesting an Integration.
K
Knowledge Base - The LOGICLY Knowledge Base is the hub for all information, questions, and updates about the LOGICLY Platform. Home to FAQs, Quick Start Guides, and How-To's for anything LOGICLY.
L
Lookback Period - The time range of data used to calculate a particular analysis or comparison.
M
Marginal Contribution To Risk (MCTR) - MCTR is an output of LOGICLY's Portfolio Analysis tool. MCTR looks at the individual holdings of a portfolio and determines which components add or remove risk to or from the inputted portfolio.
N
Notional - Notional value indicates the total value of the underlying asset or security at its current spot price. Ex: 5 Shares of Tesla at $759 have a notional value of $3,795.
O
Overlap - Overlap is the measure of % of holdings between 2 funds that overlap with one another. LOGICLY calculates Overlap as "100% - Active Share". The Active Share is the non-shared holdings between the funds.
P
Performance Attribution - LOGICLY's Performance Attribution analysis compares the performance of a selected ETF’s portfolio against its benchmark which is represented by an ETF that has been identified as the lowest cost ETF which mimics the chosen benchmark.
Portfolio Analysis - Portfolio Analysis is LOGICLY's solution to providing the widest array of portfolio analytics. Portfolio Analysis helps you create and view a portfolio of a set of securities. The tool helps you evaluate the portfolio through data analytics focusing on the Performance, Risk, Cost, Exposure, Factors, Tax, ESG, and Income statistics.
Portfolio Coach - Portfolio Coach is LOGICLY's "AI for Advisors". This tool sits atop a user's book of business that is 'Synced to the Coach' and monitors each portfolio or household based on 6 IPS metrics selected for each client. When portfolios begin to stray away from the IPS targets, Portfolio Coach alerts the advisor to allow them to proactively manage their client conversations and client portfolios.
Q
Quick Start Guide - Quick Start Guides are LOGICLY's in-depth explanations of the different applications on our platform. Each Quick Start Guide shows you how to utilize each of the tools and walks you through the various data outputs. You can see all the LOGICLY's Quick Start Guides by performing a search or visiting this link.
R
Reverse Lookup - LOGICLY's Reverse Lookup tool allows users to look up what ETFs or Mutual Funds contain the inputted Single Stock, Mutual Fund, or ETF based on the weight of the inputted security.
Risk-Free Rate - The Risk Free Rate is defined as the hypothetical or theoretical returns of an investment if there was zero risk attached to it. Risk Free Rate is an indication of the returns an investor would expect from a Risk-Free investment over a certain period of time.
S
Sharpe Ratio - Sharpe Ratio is a metric used to understand what the return on an investment has been relative to its risk. It is calculated as:
'Return of Portfolio - Risk Free Rate / Standard Deviation of Portfolio's Returns'
Side-by-Side - LOGICLY's Side-by-Side tool allows users to do an in-depth comparison of 2 or more funds/portfolios against one another across an array of metrics.
Similarity Score - The Similarity Score seen in LOGICLY outputs represents one or two categorical scores are aggregated into a single score that help quantify the degree to which pairs of securities would contribute similarly within a portfolio.
Sortino Ratio - Sortino Ratio is a variation of the Sharpe Ratio that utilizes the Downside Standard Deviation of Portfolio Returns instead of the Total Standard Deviation of Portfolio Returns. It is calculated as:
'Return of Portfolio - Risk Free Rate / Downside Deviation of Portfolio's Returns'
Syncing to Coach - Syncing to Coach is the process of integrating a portfolio or household into the Portfolio Coach. This will allow the Portfolio Coach to monitor the IPS and overall portfolio activity.
T
Tags - Tags are a part of LOGICLY's Fund Screener tool filtering capabilities. Filtering by tags allows a user to screen for all funds that contain the selected tag in the Fund Name. Ex: The 'ESG' tag pulls all funds with ESG in the Fund Name.
Tax Loss Prospector - LOGICLY's Tax Loss Prospector tool allows users to input a given ETF, and the Tax Loss Prospector will identify correlated ETFs and their holders in order to highlight potential switch trades from your current holding.
Time frame - A time frame refers to the amount of time that a trend lasts in a market, or in the case of backward-looking analysis and reporting, the length of time on which the reporting and calculations are based on.
U
Upside Capture Ratio - Upside Capture Ratio is the measurement of a fund or portfolio's performance during high-performing periods of the market vs a benchmark or index. Upside Capture Ratio over 100 is an indication that the fund or portfolio outperformed the index or benchmark during the period.
V
Volatility - Volatility is the measure of the dispersion of returns for a given security. LOGICLY calculates Volatility as Standard Deviation.
W
Watchlist - A Watchlist is a portfolio compromised of securities that the user wishes to track and monitor the performance of. Watchlists are treated as hypothetical portfolios as opposed to a "real" portfolio, and cannot be denoted in shares like a real portfolio.