Glossary

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Hedge fund
A type of investment scheme in which the fund manager can use a number of specialist investment techniques, including the use of derivatives, short selling and borrowing to generate a higher return or make gains despite a falling stock market. These are a type of unregulated investment.
Hedging
An investment technique designed to reduce financial risk, often through the use of derivatives.
High water mark
The high water mark ensures that a performance fee is charged only if the fund has beaten its previous high point over a performance period.
Historic yield
For equity fund, the historic yield reflects distributions declared by the fund over the previous twelve month period as a percentage of the share price.
Hurdle
The performance level a fund has to exceed before a performance fee can be charged.