Batting average in finance measures an investment manager's ability to meet or beat an index. A batting average of 50% is a minimum for investment success.

An investment manager's "batting average" is a statistical technique used to measure a manager's ability to meet or beat an index. In general, for investment managers to be deemed successful, they would need to achieve a minimum threshold batting average of 50%.
The information ratio (IR) is a similar measure of a money manager's success that measures portfolio returns beyond the returns of the benchmark compared to the volatility of those returns.
One disadvantage of relying on batting average is that it focuses only on returns and does not take into consideration the level of risk taken by a manager to achieve those returns.
An investment manager who outperforms the market in 15 out of a possible 30 days would have a statistical batting average of 50%. A batting average is calculated by dividing the number of days (or months, quarters, etc.) in which the manager beats or matches the index by the total number of days (or months, quarters, etc.) in the period of question and multiplying that factor by 100.
The higher the batting average, the better. In investing, batting average refers to a statistical method used to measure an investment manager's ability to meet or beat the returns of a benchmark index. The IR not only measures the investment manager's ability to generate high returns relative to the benchmark but it also endeavors to identify the manager's performance consistency.

Batting Average

Funds management is the management of a financial institution's cash flow.

Funds management is the overseeing and handling of a financial institution's cash flow. When classifying fund management according to client type, the fund managers are either business fund managers, corporate fund managers, or personal fund managers who handle investment accounts for individual investors. Personal fund managers cover smaller investment portfolios compared to business fund managers. Some funds are managed by hedge fund managers who earn from an upfront fee and a certain percentage of the fund's performance, which serves as an incentive for them to perform to the best of their abilities. The fund manager's duties include studying the client's needs and financial goals, creating an investment plan, and executing the investment strategy.

Funds Management

Maintenance margin, currently at 25% of the total value of the securities, is the minimum amount of equity that must be in a margin account.

Title 12: Banks and Banking. Chapter II - Federal Reserve System. Subchapter A. Part 220 - Credit by Brokers and Dealers (Regulation T)

Margin: Borrowing Money to Pay for Stocks

Maintenance margin is the minimum equity an investor must hold in the margin account after the purchase has been made; it is currently set at 25% of the total value of the securities in a margin account as per Financial Industry Regulatory Authority (FINRA) requirements. If the equity in a margin account falls below the maintenance margin, the broker issues a margin call, which requires that the investor deposit more cash into the margin account bring the level of funds up to the maintenance margin or liquidate securities in order to fulfill the maintenance amount. Maintenance margin is the minimum equity an investor must hold in the margin account after the purchase has been made; it is currently set at 25% of the total value of the securities in a margin account as per Financial Industry Regulatory Authority (FINRA) requirements. It stipulates the minimum amount of equity—the total value of securities in the margin account minus anything borrowed from the brokerage firm—that must be in a margin account at all times as long as the investor holds on to the securities purchased. Once an investor buys a security on margin, the maintenance margin goes into effect with FINRA requiring that at least 25% of the total market value of the securities be in the account at all times.

Maintenance Margin

Money management is the process of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.

Money management refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans.
Money management broadly refers to the processes utilized to record and administer an individual's, household's, or organization's finances. Global investment managers offer retail and institutional investment management funds and services that encompass every investment asset class in the industry. Investment company money management offers individual consumers investment fund options that encompass all investable asset classes in the financial market. Investment company money managers also support the capital management of institutional clients, with investment solutions for institutional retirement plans, endowments, foundations, and more.

Money Management

Portfolio margin is the modern composite-margin requirement that must be maintained in a derivatives account containing options and futures contracts. 

Additionally, the New York Stock Exchange’s Rule 431, Nasdaq’s Rule 2860, and the brokerage industry’s self-regulatory agency, the Financial Industry Regulatory Authority's (FINRA) Rule 721, govern how brokers manage margin accounts.
Among FINRA's requirements, broker-dealers who offer portfolio margin accounts must meet “specific criteria and standards to be used in evaluating the suitability of a customer for writing uncovered short option transactions,” and establish and monitor “a minimum equity requirement.” Portfolio margin is a set of risk-based margin requirements designed to offset risks to the lender by aligning margin requirements with the general risk of a portfolio. Margin is the collateral that an investor has to deposit with their broker or exchange to cover the credit risk the holder poses when they borrow cash from the broker to buy financial instruments, borrow financial instruments to sell them short, or enter into a derivatives contract.
Portfolio margin requirements have only been recently instituted in the options market, although futures traders have enjoyed this system since 1988. This revised system of derivative margin accounting has freed up capital for options investors, allowing them more leverage, which previously was required for margin deposits under the old strategy-based margin requirements that were instituted in the 1970s.

Portfolio Margin

Retrocession fees are commissions or kickbacks paid to a wealth manager or other money manager by a third party.

J.P. Morgan to Pay $267 Million for Disclosure Failures.

Retrocession refers to kickbacks, trailer fees or finders fees that asset managers pay to advisers or distributors. A one-off payment is generally called a finder’s fee, referral fee or acquisition commission.
There are three types of retrocession fees:
1.  **Custody banking retrocession fees** are where a wealth manager receives compensation for attracting a new customer who brings that customer's investment funds into the custody institution. Some consider retrocession fees a dubious compensation model because they can influence a bank or wealth manager’s decision to recommend products that may not be in the best interest of their clients. **Financial product purchase retrocession fees** are part of the recurring total expense ratio (TER), which customers must pay and are typical with investment funds. Retrocession refers to kickbacks, trailer fees or finders fees that asset managers pay to advisers or distributors.

Money Management

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Terms in Money Management

Batting Average

Funds Management

Maintenance Margin

Money Management

Portfolio Margin

Retrocession