Glossary
Summary of the revenues, costs, and expenses of an organization during an accounting period. Together with a statement of financial position as of the end of an accounting period and a cash flow statement, it constitutes an organization's financial statement.
Statement showing the status of an organization's assets, liabilities and net assets on a given date. Assets are equal to liabilities and net assets, and the statement of financial position is a listing of the items making up the two sides of the equation. Together with a statement of activities for the duration of the accounting period and a cash flow statement, it constitutes an organization's financial statement.
The use of optimization tools to determine long-term asset allocation benchmarks to achieve long-term objectives. The objectives vary, depending on the type of asset owner and its obligations to beneficiaries or other stakeholders. It involves making decisions around allocation to high-level asset classes—that is, equity/fixed split, domestic/international/emerging equity split, duration of fixed income, and the split between nominal and inflation-adjusted fixed income, allocation to unlisted assets and sustainability-themed assets. This is distinct from other considerations such as portfolio structuring (including allocation to capital weightings, styles and sectors, and includes active/passive analysis) and manager selection (the evaluation of manager performance in order to select one suitable for a client's requirements).
The lender takes a subordinate status in relationship to senior debt, in order to leverage more capital into a project. In the case of liquidation (e.g. the company winds up its affairs and dissolves), the subordinated lender would be paid back after senior lenders.
A source of income or cost reduction that is not generated directly from a CDFI's own operations. The Aspen Institute describes subsidy as grant income, third party contracts, or below-market financing from the philanthropic or public sectors.
Investment with long term gains expected in social, environmental and governance areas. A vision of a sustainable future is set as a reference point for developing strategic actions.
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