Glossary

Just click on the appropriate letter of the alphabet below to find the word, acronym or term that you'd like explained.

ALPHA

In the context of Sub-Funds categorised as Alpha Plus, the term "Alpha" refers to risk adjusted performance of an investment.

ABSOLUTE RETURN

The appreciation or depreciation (expressed as a percentage of the Net Asset Value) that a Sub-Fund achieves over a given period of time as opposed to relative return which refers to a return that a Sub-Fund achieves over a given period of time in comparison to its benchmark or any other measure.

AGENCY MORTGAGE-BACKED SECURITY

A mortgage-backed security issued by a U.S. government-sponsored agency such as the Student Loan Marketing Association (Sallie Mae), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). See Mortgage-backed Security

AGGRESSIVELY MANAGED

A Sub-Fund that is typically managed with a lower reference to its benchmark. It is likely to have higher turnover and risk.

ASSET-BACKED SECURITY

An interest in a pool of assets, such as credit card debt or car loans, which is structured as a debt security. Asset-backed securities derive cash flow and credit characteristics from a pool of underlying assets. See Security

AUD

Australian Dollar

AVERAGE LIFE

A measure of how long it takes, on average, for the assets underlying an asset-backed security to repay their principal. See Asset-Backed Security