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17 Cards in this Set

  • Front
  • Back
adjusted cost base
the deemed cost of an asset representing the sum of the amount orginally paid plus any additional costs, such as brokerage fees and commisions.
closet indexing
a portfolio strategy whereby the fund manager does not replicate the market exactly but sticks fairly close to the market weightings by industry sector, country or region or by the average market capitalization.
daily valuation method
with this method, the incremental change in value from day to day is expressed as an index from which the return can beb calculated.
equity fund
there are 22 different categories of this equity based fund.
fixed dollar withdrawal plan
this plan is similiar to a ratio withdrawal plan except that the fund holder chooses a specified dollar amount to be withdrawn on a monthly or quarterly basis.
fixed period withdrawal plan
a specified amount is withdrawn over a pre-determined period of time with the intent that all capital will be exhausted when the plan ends.
glide path
this path refers to changes in the funds asset allocation mix over time which allows the fund to pursue a growth strategy by holding more risk assets in the early years of the funds life and then gradually reduce the risk of the fund as the target date approaches.
index fund
this type of fund sets out to match the performance of a broad market index, such as the S&P/TSX composite index for an equity index fund or the DEX universe bond index for a bond index fund.
indexing
a portfolio management style that involves buying and holding a portfolio of securities that matches, closely or exactly, the composition of a benchmark index.
modified dietz method
this method reduces the extensive calculations of the daily valuation method by providing a good approximation. it assumes a constant rate of return through the period, eliminating the need to value the portfolio on the date of each cash flow.
peer group
a group of managed products (particularly mutual funds) with a similiar investment mandate.
ratio withdrawal plan
here the investor receives an annual income from the fund by redeeming a specified percentage of fund holdings each year. the percentage chosen for redemption usually falls between 4% and 10% a year depending on the amount of income the investor requires.
systematic withdrawal plan
a plan that enables set amounts to be withdrawn from a mutual fund or a segregated fund on a regular basis.
t3 form
referred to as a statement of trust income allocations and designations. when a mutual fund is held outside a registered plan, unitholders of an unincorporated fund is sent a this form by the respective fund.
t5 form
referred to a statement of investment income. when a mutual fund is held outside a registered plan, shareholders are sent this form by the respective fund.
target date fund
in 2005 this new type of fund was introduced. these funds have two characteristics that distinguish them from other mutual funds: a maturity date and a glide path.
time weighted rate of return
this rate of return is calculated by averaging the return for each sub period in which a cash flow occurs to create a return for the reporting period. therefore, unlike a total return, it does account for cash flows such as deposits, withdrawals and reinvestments. also known as TWRR.