Glossary

absolute performance: A method of measuring the performance of a fund based on actual returns over a specified period, regardless of index performance; funds that adopt this as a strategy are known as absolute-return or index-unaware funds. See also relative performance.

account-based pension: See market-linked pension account.

administration platform: A reporting and administration system for managed funds, as well as shares and cash assets.

All Ordinaries (All Ords) Index: A market-capitalisation weighted index of the largest 500 Australian companies; widely recognised as the best measure of the overall performance of the Australian sharemarket.

alpha: A managed fund’s return generated over and above the market performance, which is known as beta.

annuity: An annual income paid by a life insurance company from either a superannuation account or another fund; either market-linked or fixed-income based. See also fixed-income pension account, market-linked pension account.

Asia–Pacific Investment Register (APIR): The register that gives a unique industry code to identify each managed fund.

asset allocation: The practice of dividing assets into different asset classes.

asset class: A group of assets with similar underlying investments; typical asset classes are cash, shares, fixed-interest securities (bonds) and property.

Australian real estate investment trust (A-REIT): See listed property trust.

Australian Securities Exchange (ASX): The Australian national stock exchange, ...

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