Glossary of Terms

This glossary of terms contains definitions of commonly used terms by Truelytics Customer Support and Subject Matter Experts.

Advisor Annuity Income

Income earned for the sale of annuity products, independent of type of annuity sold

Advisor Insurance Commissions

Also referred to as "first year insurance premiums", this is the amount collected by an advisor for selling a new policy or insurance product

Advisor Insurance Trails

Payments made annually to the advisor of record to continue servicing the insurance client for products sold in previous years

Advisory Investment Commissions

Commissions paid on new investments

Advisor Investment Fees

Fees earned as a percentage of AUM

Advisor Investment Trails

Trails, or income earned annually on prior period investments

AUM

Assets Under Management

AUM with Client Beneficiary

What percent of assets held by this client will transfer to existing advisor clients upon death?

AUM Weighted by Age

Assets under management adjusted and weighted by age

AUM Weighted by Distance

Assets under management adjusted and weighted by physical distance from home office

AUM Weighted by Relationship

Assets under management adjusted and weighted by length of relationship with primary advisor

Average New Client First Year Revenue

The dollar amount that typically represents the revenues generated in the first year of a new client relationship

Beneficiary Adjusted Revenue

Post-death expected revenue based on expected assets under management and the percentage of those assets associated with beneficiaries who are existing clients

Beneficiary Cash Flows

The intrinsic value of the cash flows from the client's investments following death as a result of the relationship with the client beneficiaries

Cash

Cash includes cash and shorttermtreasury accounts (91 days or less) and may include money market accounts and money market funds.

Client Addition Rate

Rate expressed as a percentage of clients added in a given year

Client Departure Rate

Rate expressed as a percentage of clients lost in a given year

Client Portal

Client data portals allow two-way data sharing allowing clients to more readily send information in secure and convenient fashion

Commodities

Direct investments in commodities or indirect investments in funds owning commodities

Expected Term Insurance Annual Sales

Annual term insurance commissions generated and paid to advisor

Expected Whole Insurance Annual Renewals

Annual renewals/trails paid on insurance product sales to advisor

Expected Whole Insurance Annual Sales

Annual first year whole insurance commissions generated and paid to advisor

Extraordinary Investments

Investments not considered "typical" based on age, prior investing behavior, or annual income

Extraordinary Withdrawals

One-time or extraordinary withdrawals that are expected to occur.

Fee Grid

A Fee Grid is the typical payment schedule for which fee-based advisors charge for services.  Enter the break points here for specialized payment schedules

TEI

Truelytics eValuation Index: The cumulative score (out of 100) measuring the quality of your firm, your practice, or your individual client relationship based on core factors of influence

High Net Worth

Estimated Total net worth in excess of $2.5 million (Total assets less total indebtedness)

Industry Portfolio Accounting Software

Provides institutional investment accounting to report return on investment data for compliance and other purposes

Industry Portfolio Management Software

Manages client portfolio data and monitors (typically real-time) mark-to-market reporting

International Debt

Direct investments in debt of Foreign listed companies or indirect investments in funds generally considered "International Debt"

International Diversified

Funds and investments classified as international diversified invest in debt and equity instruments across a global environment.

International Equity

Direct investments in Foreign listed companies or indirect investments in funds generally considered "International Equity"

Intrinsic Value

The true value of an asset based on the unique characteristics of that particular asset or investment irrespective of the market.  

Investment Rate

Percentage of annual income that is invested annually in products provided as part of the financial plan instituted by the advisor of record

Lifetime Cash Flows

The intrinsic value of the expected income generated through the projected life of the client

Lost Cash Flows

The lost intrinsic value associated with the inability of the advisor to generate "next generation" relationships with the client's beneficiaries.

Post-Death Expected Revenue

Annual expected revenues following the actuarial-determined date of death.

Real Estate

Real estate investment assets may include REITs, Closed end real estate funds, or direct property investments.

Recurring Revenue

Fee, trail, planning or other revenue that occurs annually in exchange for the continued management of the client relationship or portfolio

Referral Level

Percentage of new clients generated via existing clients

Retirement Depletion Rate

Rate in percentage of AUM that will support your client in their retirement years.

Revenue During Life of Client

Annual expected revenues generated by a client relationship, taking into account the unique demographic factors associated with each particular client.

Trails Earned Percent

The payment collected on AUM by certain types of product to compensate an advisor for the effort associated with ongoing client support

US Debt

Direct investments in US debt on US listed companies or indirect investments in funds generally considered "US Debt"

US Diversified

Investments in funds generally considered "US Diversified"

US Equity

Direct investments in US listed companies or indirect investments in funds generally considered "US Equity"