Glossary

Term Definition
Capital Refers to the financial assets, or resources, that a company has to fund its business operations.
Capital return The gain (or loss) achieved on invested capital over a certain period of time, often expressed as a percentage of that invested capital.
Distribution Payments of income and capital gains made by managed funds to their share/unit holders periodically throughout the calendar year.
Episode Occurs when asset prices move for non-fundamental reasons, or in the context of behavioural finance, when market prices may be driven by emotion more than rational analysis and an investment opportunity can therefore arise.
Equities Shares of ownership in a company.
Risk sensitivity Refers here to the premium the market is demanding to take on higher levels of risk, eg the higher the premium demanded, the higher the market's risk sensitivity.
Underlying value The fundamental value of a company, reflecting both tangible and intangible assets, rather than the current market value.
Valuation The current worth of an asset or company.
Volatility The degree to which a given security, fund, or index rapidly change. It is calculated as the degree of deviation from the norm for that type of investment over a given time period. The higher the volatility, the riskier the security tends to be.