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The difference between portfolios returns and benchmarks returns.

Variation in absolute returns, often measured as a standard deviation. Also known as volatility.

The management of a portfolio where the objective is to diverge from a benchmark (i.e. to take active positions) in order to improve return on investment. The difference between active and enhanced mandates is that the latter permits a more limited deviation from the benchmark.

Computer software application used with the Internet. Users type a Web address or URL into the browser's address bar to view a website. The most popular browser is Microsoft's Internet Explorer. Other common browsers used today and in the past include Opera, Firefox and Netscape Navigator for MS Windows and Safari for the Apple Mac platform.

A claw-back option requires the GP in an investment fund to return capital to the LP to the extent that the GP has received more than its agreed profit split. A GP claw-back option ensures that, if an investment fund exits from strong performersearly in its life and weaker performers are left at the end, the LP get back their capital contributions, expenses and any preferred return promised in the partnership agreement

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper usually range between 1 month, 3 months and 6 months but not more than 1 year. The debt is usually issued at a discount, reflecting prevailing market interest rates.

The amount disbursed to the LP in a private equity fund

A fund's intended method for liquidating its holdings while achieving the maximum possible return. These strategies depend on the exit climates including market conditions and industry trends. Exit strategies can include selling or distributing the portfolio company's

Employers are organisations such as Statutory Bodies, Local Authorities and (Secondment) Agencies which contribute to KWAP for the employees with pension status.

Government's Portion is the refund of employers' share remitted to KWAP by Employees' Provident Fund (EPF), Armed Forces Fund Board (LTAT) and Teachers' Provident Fund (KWSG).

The partner in a limited partnership responsbile for all management decisions of the partnership. The GP has fiduciary responsibility to act for the benefit of the limited partners (LPs), and is fully liable for its actions.

The internal rate of return that a fund must achieve before its generatl partners or managers may receive an increased interest in the proceeds of the fund. Often, if the expected rate of return on an investment is below the hurdle rate, the project is not undertaken

A investor in a limited partnership (i.e Private Equity Fund)

The legal structure used by private equity funds. The partnership is usually a fixed-life investment vehicle, and consists of a GP and LPs. The GP receives a management fee and a percentate of the profits. The LPs receive income, capital gains, and tax benefits. The GP manages the partnership using policy laid down in a Partnership Agreement. The agreement also covers terms, fees, structures and other items agreed between the LPs and the GP.

Members are employees of Statutory Bodies, Local Authorities and Agencies with pension status.

All bonds and notes issued before the most recently issued bond or note of a particular maturity. Off-the-run securities are less frequently traded, they typically are less expensive and carry a slightly greater yield.

The most recently issued bond or note of a particular maturity

Pension Contributions are remittance made to KWAp at 17.5% of the employees' basic salaries.

The year in which the venture firm began making investments. Often, those funds with "vintage years" at the top of the market will have lower than average returns because portfolio company valuations.