GLOSSARY

MSCI World ex Australia, Net Returns Unhedged Index

The MSCI World Index ex Australia is a broad global equity benchmark that represents large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float-adjusted market capitalization in each country and does not offer exposure to emerging markets.

Model risk

A type of risk that occurs when a financial model is used to measure a firm’s market risk or value.  This risk occurs when the model does not accurately reflect the security or market that it was designed to.

Mispriced securities

These are securities whose price does not correctly match the ‘true’ or intrinsic value of the Company.

Milliman managed risk strategy

The Milliman Managed Risk StrategyTM aims to stabilize the volatility of an investment portfolio during periods of significant and sustained market declines, providing investors with the same risk management techniques used by major financial institutions around the world.

mFunds

An unlisted managed fund admitted under the ASX Operating Rules that investors can invest in through the mFund Settlement Service via their stockbroker or adviser.

Market inefficiencies

The efficient market hypothesis is a theory which asserts that the market prices of assets always accurately reflects all relevant information. Market inefficiencies occur when assets do not accurately reflect “true” value and enable active investors to achieve higher risk adjusted returns than the market.

Management costs

The MER or management expense ratio is expressed as a percentage and is the total fees that is charged to investors in a fund.  This fee is used to contribute to the many operating fees associated with running a fund such fees paid to management, marketing costs, legal, auditing and filing costs, and other administrative […]

Managed risk

Plato’s managed risk products seek to stabilise portfolio volatility and protect against losses during major downturns.