Glossary

Glossary 

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  • Absolute return
    • The rise or fall in the value of an asset in a particular period of time, expressed as a percentage. 
  • Accumulation shares
    • A type of share where distributions are automatically reinvested and reflected in the value of the shares.
  • Accumulation units
    • A type of unit where distributions are automatically reinvested and reflected in the value of the units.
  • Active management
    • An approach to investing whereby capital is allocated according to the judgment of the investor or fund manager(s). The active investor aims to beat the returns from the stockmarket or specified benchmark index/sector, rather than to match them.
  • Active manager
    • A fund manager who follows an active management  approach to investing. The active investor aims to beat the returns from the stockmarket or specified benchmark index/sector rather than to match them.
  • Alpha
    • The excess return of a fund relative to the return of its benchmark. It is often considered to represent the value that a fund manager adds to or subtracts from a fund’s return. Also known as relative return.
  • Annual Charge
    • A charge covering costs, fees and expenses for the operation and management of each share class, representing a percentage of the Net Asset Value (NAV) of each share class. It is calculated daily as one-365th of the annual percentage, applied to the NAV on the previous dealing day. Shareholders may benefit from potential discounts due to economies of scale if there is significant growth in assets under management. Details of these potential savings can be found in the fund’s prospectus.
  • Artificial Intelligence (AI)
    • The process by which a computer algorithm, trained to think and learn like humans, simulates human intelligence and makes decisions based on what it learns.
  • Asset
    • Anything having commercial or exchange value that is owned by a business, institution or individual.
  • Asset allocation
    • Allocating a portfolio's assets according to risk tolerance and investment goals.
  • Asset-backed securities
    • Bonds (fixed income securities) backed by assets that produce cashflows, such as mortgage loans, credit card receivables and auto loans.
  • Asset class
    • Category of assets, such as cash, company shares, fixed income securities (bonds) and their sub-categories, as well as tangible assets such as real estate.