GLOSSARY

Proprietary alpha model

Plato utilities proprietary information and models to forecast future asset returns in order to generate ‘alpha’ or excess return over the benchmark for our investors.

Positive price momentum

Positive price momentum refers to a situation where a security’s historical price has appreciated to a greater extent than the market.

Portfolio volatility

Volatility measures the risk of a security. The higher the volatility of a stock, the greater its up and down swings. Portfolio volatility is often measured as the standard deviation of a portfolio’s returns.

Portfolio allocation

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. The three main asset classes – equities, fixed-income, and cash and equivalents – have different levels of risk and return, so each will behave differently over time.

Pension

A regular payment made by the state Government to people of or above the official retirement age and to some widows and disabled people.