S

Secondary Market: After the initial sale, the securities market where trading takes place between investors. When business or government initially offers securities for sale to investors, it is done through the primary market.

Short Term Investments: Investments lasting less than 1 year.

Simple Rate of Return: The current value of an investment minus the value at the time of purchase divided by the value at the time of purchase.

Small Company Risk: The prices of shares issued by smaller companies tend to fluctuate more than those of larger corporations. Smaller companies may not have established markets for their products and may not have solid financing. These companies generally issue fewer shares, which increases their liquidity risk.

Speculative Equities: Speculative investments result in maximum risk over a short-term. They are typically characterized by maximum price volatility. There are typically no earnings or dividends and consequently the P/E ratio is a useless tool for analysis.

Speculative Risk Category (Equities): This category of equity securities is maximum risk, shorter term, with maximum price volatility, no earnings, no dividends, P/E ratio is not significant.

Style: The way a fund manager selects securities to buy, hold or sell in a mutual fund. The two most common styles are referred to as value and growth.

Systematic Risk: The risk associated with being invested in any market. When stock market averages fall, most individual stocks in the market fall and when interest rates rise, most bonds and fixed income securities fall in value.

T

Tactical Asset Allocation Strategy: Tactical Asset Allocation Strategy is the process by which the asset of a fund is changed on a short-term basis to take advantage of perceived differences in relative values of the various asset classes.

T-bills: Short-term government debts issued in denominations ranging from $1,000 to $1 million. Like many other cash-based investment vehicles, T-Bills do not pay interest but are sold at a discount and mature at par (100 per cent of face value). The difference between the purchase price and par at maturity represents the purchaser's return, and is taxed as interest income.

Technical Indicators (for return on equities): This is one of four areas used to help analyze and predict future equity prices. These are the result of analyzing investor attitudes and market psychology through the interpretation of charts of stock price trends and trading volumes.

Term Deposits: Deposit instruments most commonly available from chartered banks, requiring a minimum investment at a pre-determined rate of interest for a stated term. The interest varies according to the amount invested and term to maturity but is competitive with comparable alternative investments. However, a reduced interest rate will usually apply if funds are withdrawn prior to maturity.

Term to Maturity: The length of time remaining until a bond's principal is to be repaid. For example, when a 10-year bond is issued, it is called a "10-year bond" and has a term to maturity of 10 years. After three years, this bond would have a term to maturity of seven years and would be called a "7-year bond".

U

Unitholder: Refers to an individual or organization that owns one or more units of a mutual fund. The unitholder has certain ownership rights, such as the right to vote on key issues affecting the fund.

V

Value Indicators (for return on equities): This is one of four areas used to help analyze and predict future equity prices. These are the result of analyzing the value ratios for a specific company and comparing these to similar companies within the same industry.

Value Managers: Fund managers whose style is to select stocks that are fundamentally undervalued or out of favour - stocks that are "cheap." Value managers also conduct in-depth examinations of companies, then purchase stock from a perceived "good" company and hold it for the long term until the true value emerges.

Venture Equities: Venture capital investments are high risk and generally have low capitalization. They have a limited earnings record, and do not pay dividends. The P/E ratio is of little consequence due to a short operating history or the fact that they are not yet profitable. As a result these investments have prices that are highly volatile.

Volatility: A measure of risk based on the standard deviation of investment fund performance over 3 years.

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