A Real Estate Investment Trust is a company that owns, operates, or finances income-generating real estate. These trusts pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments without having to buy, manage, or finance any properties themselves.

Real return refers to the profit or loss on an investment after adjusting for inflation. The real return is calculated by taking the nominal return (the reported percentage gain or loss) and subtracting the rate of inflation during the period of the investment.

A recession is the downturn in economic activity, beginning after the economy reaches a peak of activity and ends when the economy reaches its trough. It usually leads to reduction in the aggregate output of goods and services, leading to a decline in consumer demand, an increase in unemployment rates, and often a decrease in inflation.

Redemption is the process repayment of an investor exchanging a bond or fund for its underlying monetary value.

Refinancing refers to the process of replacing an existing debt obligation with a new loan that has different terms, often to take advantage of better interest rates, alter the repayment schedule, or adjust the loan structure.

Regulation A+ is a provision in the JOBS Act that allows smaller companies to raise money publicly under less stringent regulatory requirements.

Regulation D is an SEC regulation governing private placement exemptions, allowing companies to raise capital through the sale of equity or debt securities without having to register the securities with the SEC.

Regulatory risk is the risk that a change in laws and regulations will materially impact a security, business, sector, or market.

Reinvestment refers to the practice of taking the income or dividends earned from an investment and using those earnings to purchase additional shares or units of that same investment, rather than receiving the income in cash. This strategy aims to compound the investment's returns over time by leveraging the power of reinvested earnings to potentially generate greater returns in the future.

Renewable energy is energy from sources that are naturally replenishing but flow-limited, such as sunlight, wind, rain, tides, waves, and geothermal heat.

An investment fund structure in Luxembourg that can operate similarly to other alternative investment funds but doesn't require regulatory approval from the CSSF (Commission de Surveillance du Secteur Financier) before launching.

RVPI measures the ratio of the remaining or unrealized value of a private equity fund's portfolio (the residual value) to the amount of capital that the limited partners (investors) have contributed to the fund (the paid-in capital).

Return on Equity is a financial metric used to evaluate the efficiency of generating profits or returns relative to the equity invested in an entity. It assesses the effectiveness of utilizing the ownership stake or capital contributed by investors to generate income or returns.

Riba, in Islamic finance, refers to the prohibition of usury or interest. It is considered a fundamental principle in Sharia (Islamic law) that prohibits the charging or paying of interest on loans or transactions.

Risk assessment is the process of identifying, analysing, and evaluating risks involved in a particular situation or for a specific entity. This process involves determining the likelihood and potential impact of various risks, which can include financial, operational, strategic, or environmental factors, among others.

Risk diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce exposure to any single asset or risk.

Risk exposure refers to the extent to which an entity, such as an individual, company, or organization, is vulnerable to potential losses or adverse effects from external or internal uncertainties and risks. It is determined by considering both the likelihood of an adverse event occurring and the potential impact or severity of the event.

Risk management is the process of identifying, assessing, and mitigating risks to minimize potential losses or negative impacts on investments or business operations.

Risk mitigation refers to the process of planning and implementing strategies to reduce the negative impact of identified risks on a project, business, or operation.

Risk tolerance is the degree of variability in investment returns that an individual or organization is willing to withstand in their investment portfolio. It helps determine the level of risk that is possible to take during investment goals.

Risk-adjusted return measures an investment's return after considering the degree of risk taken to achieve it. Some common risk measures used in investing include alpha, beta, and the Sharpe ratio.

They are prices for recently sold assets in the immediate surroundings of a target property. Sales comps included in the investment thesis during underwriting, serving as evidence of support for projected sale (or exit) price.

The Sarbanes-Oxley act is an American legislation that creates strict new rules for accountants, auditors, and corporate officers, and imposed more stringent recordkeeping requirements.

Secondary private equity involves buying and selling existing stakes in private companies or private equity funds. Investors in the secondary market can acquire positions in established private equity portfolios.

SOFR serves as a reference rate for a wide range of financial products in the United States. It is published daily by the Federal Reserve Bank of New York and is gaining acceptance and usage as a benchmark rate in various financial markets globally. SOFR is based on transactions in the U.S. Treasury repurchase market, where banks and other financial institutions borrow or lend Treasury securities overnight on a collateralized basis.

The secured overnight financing rate is a benchmark interest rate for dollar-denominated derivatives and loans.

The U.S. Securities and Exchange Commission is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market manipulation.

Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities.

Security is a financial instrument that represents some type of financial value.

Debt that takes priority over other unsecured or subordinated debt in the event of default. Senior debt has the highest priority and therefore the lowest risk. Thus, typically offers lower interest rates.

Debt backed by specific assets or collateral, giving lenders a claim on those assets in case of default, providing lower risk compared to unsecured debt.

The priority level or ranking of a financial claim or obligation in the event of liquidation or bankruptcy.

"Series A" refers to a significant round of funding that a company raises after it has gone through the initial seed funding or angel investment stage. This round typically occurs once the company has validated its business model, demonstrated growth potential, and has a working product or service.

A settlement is the resolution of a lawsuit before a trial concludes.

Shares are units of ownership of a company or investment.

Sharia Boards are a committee of Islamic scholars available to an Islamic financial institution for guidance and supervision in the development of Shariah compliant products.

Sharia governance refers to the systems, structures, and processes put in place by financial institutions or organizations offering Sharia-compliant products and services to ensure compliance with Islamic law.

Refers to financial activities, products, or services that adhere to Islamic law (Sharia principles). Sharia-compliant finance operates based on ethical and moral guidelines derived from Islamic teachings, primarily the Quran and Hadith

The Sharpe ratio divides a portfolio's excess returns by a measure of its volatility to assess risk-adjusted performance.

Skin in the game refers to owners, executives, or principals having a significant stake in the shares of the investment they manage. It is important to investors because it shows executives share a stake in the company's success.

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code in a distributed, decentralised blockchain network.

Socially responsible investing is an investment strategy which seeks to consider both financial return and social/environmental good to bring about social change regarded as positive by proponents.

A specialized investment vehicle in Luxembourg dedicated to risk capital. SICARs are designed for investments in riskier assets, such as private equity and venture capital.

Sophisticated investors are investors who are deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity.

Source of funds are the origins of the funds used for the transactions or activities that occur within the business relationship or occasional transaction.

A source of wealth refers to the activities which have generated the total net worth of an individual.

A special purpose vehicle is a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.

Special situations investing involves taking advantage of unique investment opportunities such as mergers, acquisitions, spin-offs, restructurings, or other specific events that can create value for investors.

An individual or entity that acts as the driving force behind an investment fund or partnership. Sponsors often take the role of the General Partner (GP), leading the fund's activities, including fundraising, deal sourcing, due diligence, and managing the investment portfolio.

Stamp duty is a type of tax imposed by governments on various transactions, particularly on legal documents and certain types of transactions. It is typically associated with the transfer of assets, such as real estate, stocks, or certain contracts, and is payable by the parties involved in these transactions.

Standard deviation measures the dispersion of a dataset relative to its mean and is a measure of a relative riskiness of an asset. It is calculated as the square root of the variance.

State tax is a direct tax levied by a state on income earned in or from the state.

Statutory foreclosure is a type of foreclosure that occurs when a trust deed or mortgage includes a power of sale clause that allows a trustee to initiate a non-judicial sale of the property.

A step-up in basis is a tax provision that adjusts the value of an asset for tax purposes upon inheritance at its fair market value once the owner has passed away.

SONIA is the effective overnight interest rate paid by banks for unsecured transactions in the British sterling market. It represents the weighted average of interest rates that banks charge each other for overnight loans. SONIA is administered and published by the Bank of England.

Structured data is information that is well-organised and formatted under a distinct model that is easily searchable in relational databases. Examples include names, dates, addresses, credit card numbers and stock information.

Sub-asset classes are a more specific categorization of assets within a broader asset class, defined by more distinct characteristics or strategies.

Subordinated debt is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Subordinated debentures are thus also known as junior securities.

A subscription agreement is a promise by the company to sell a certain number of shares to an investor at a certain price, and a promise by the investor to pay that price.

Sukuk (plural of "sakk") are Islamic financial instruments commonly known as Islamic bonds. They represent a form of investment that complies with Sharia principles.

Sustainable investing is the practice of investing in companies that produce sustainable products and services, and/or have sustainable practices, considering the long-term health of the economy and society.

Switzerland's independent regulatory agency overseeing banks, insurance companies, and financial markets. It ensures compliance with Swiss financial laws, promotes stability, and safeguards consumer interests by supervising and regulating financial institutions and activities.

Systematic risk is the risk inherent to the entire market, affecting the overall market based on changes in the economic, geopolitical and financial factors of a state.

Tail risk refers to the risk of extreme or unexpected events occurring in the financial markets that deviate significantly from the norm or the anticipated range of outcomes. These events are often characterized by their rarity and extreme impact, lying in the "tails" of a probability distribution in statistical terms.

Takaful is Islamic insurance which is structured as a charitable collective pool of funds based on mutual assistance.

Tax efficiency involves organizing financial activities to minimize taxes, aiming to preserve and grow wealth. Strategies include using tax-advantaged accounts, tax-loss harvesting, and managing gains to reduce tax liabilities. The goal is to optimize after-tax returns by reducing taxes on income, gains, or assets.

Tax incentives are financial benefits provided by governments to encourage certain behaviours or investments that are seen as beneficial to the economy. They include reduced tax rates, tax credits, tax deductions, tax exemptions, and/ or deferral of taxes.

Tax shield refers to the reduction in taxable income or tax liability resulting from allowable deductions, credits, or other strategies that lower an entity's taxable income. It helps to reduce the amount of taxes owed by individuals or businesses, providing a financial benefit by shielding a portion of income from taxation.

A tax treaty is a bilateral agreement made by two countries to resolve issues involving double taxation of passive and active income of each of their respective citizens.

Tax-advantaged accounts are investment accounts that offer tax benefits to the account holder by making their assets either exempt from taxation or offer the advantage of tax deferrals on earnings.

Tax-loss harvesting is a strategy used in investing to improve tax efficiency. It involves selling securities at a loss to offset capital gains taxes.

A technology incubator programme is a platform that gives new and innovative technological ideas the potential to enter into the market through the development and funding of companies.

Tenancy in Common is a legal arrangement in which two or more parties have ownership interests in a real estate property or parcel of land.

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Top-down investing is an investment strategy that finds the best sectors or industries to invest in, based on analysis of the corporate sector as a whole and general economic trends.

Total Value to Paid-In compares the total value of an investment, including both realized and unrealized returns, to the amount of capital that limited partners have contributed to the fund.

Triple net leases are found in commercial real estate, where a tenant is required to pay a portion, or all, of the taxes, fees, and maintenance costs for a property.

Regulated investment funds that can be marketed to retail investors across the European Union, complying with specific EU directives and regulations.

Underwriting is the process through which an individual or institution takes on financial risk for a fee, such as with the issuance of an insurance policy or a new securities issue.

Units refer to a share or interest in an investment fund or trust.

Unstructured data is information that either does not have a pre-defined data model or is not organized in a pre-defined manner. Examples include data from social media, emails, PDFs, images and survey responses.

Unsystematic risk is a risk that is unique to a specific company or industry.

Valuation is the analytical process of determining the current, or projected, worth of an asset or a company.

An investment approach focused on increasing the worth or attractiveness of a property to enhance its value and potential returns. This strategy involves making targeted improvements, renovations, or operational changes, aiming to boost its desirability, income generation, or overall market value.

Value-based investing is an investment strategy where the investor aligns their portfolio with their ethical, moral, or religious beliefs.

A venture capital fund pools money from investors to finance early-stage high-growth potential companies.

Volatility is how much an asset's price fluctuates around the mean price of the asset.

A warranty deed is a document that guarantees that the title to a piece of real estate is clear and that the seller has the right to sell it to the buyer.

Wealth managers are individuals or firms that provide advisory services, investment management, and financial planning services to private investors.

Windfall profits refer to unexpectedly large profits received by a company or individual, typically resulting from unexpected circumstances.

A withholding tax is an amount deducted from various types of income payments by the payer before distributing funds to the recipient. This tax is withheld at the source and remitted to the government as an advance payment of the recipient's final tax liability. It is applied to income sources like salaries, wages, interest, dividends, royalties, and payments to non-residents.

Financial metric used in investing to calculate the annualized return generated by an investment relative to its original cost or purchase price. It measures the yield or return based on the initial investment amount.

Zakat is an Islamic finance term referring to the obligation that an individual has to donate a certain proportion of wealth each year to charitable causes.