GLOSSARY

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.

Mispriced securities

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

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.

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.

Off market buy-back

An off market buy-back is a tax-efficient way for companies to repurchase some of their own shares.  It enables companies to repurchase shares at a discount to the market price (in cash terms), as part of the repurchase price comes in the form of a fully-franked dividend, such that on an after-tax basis, low tax […]

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.

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.

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.

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.

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.