GLOSSARY

APIR

An APIR code is a standard identifier for Responsible Entities, Trustees and other participants in the wealth management industry. APIR is the industry standard identification regime in Australia, having been endorsed by the Financial Services Council (FSC) in 1999. The APIR Code is universal across the Australian wealth management industry, being used by all the […]

Asset 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.

Australian shares

A unit or share of ownership of a company usually traded on the Australian Stock Exchange.

Behavioural bias

Behavioural biases are common across investors, resulting in sub-optimal investment decision making. Examples included confirmation bias, where people seek opinions that agree with their own and ignore or discount dissenting views, loss-aversion bias, where investors hold on to poor performing stocks so they don’t have to realise a loss, and overconfidence bias, causing investors to […]

Buy/sell spread

A buy-sell spread is the difference between entry price and exit price of an investment option, and is a cost incurred by members each time they invest into or withdraw from an investment option.

Capital appreciation / growth

Increase in the capital value of an asset such as an investment in shares or property etc. It does not take into account distributions such as dividends.

CGT

Stands for “Capital Gains Tax”, a tax on the capital gain made from the sale of assets such as shares or property.

Class A units

Managed funds are broken into units which entitle owners of units to a portion of the ownership of the assets of the managed fund. Sometimes, managed funds have multiple classes of units with different fee levels. Class A unit are the ‘standard’ units of each of our funds.

Diversification

Allocating capital to a variety of investments in order to reduce exposure to any one particular asset or risk, with the aim of reducing the total risk of your investment portfolio.

Dividend run up

This is a phenomenon where share prices on average outperform (relative to the market) in the period leading up to their dividend ex-date.