Glossary

A 
Active ShareThe active share measures the extent to which the holdings of an 
equity portfolio differ from the benchmark. The ratio can take values 
between 0 and 1, where 0 is a complete match between the portfolio 
and the benchmark and 1 where is no overlap between the portfolio 
and the benchmark. The higher the Active Share, the more active the 
fund manager.
B 
BetaThe beta measures the volatility of a fund in relation to the 
benchmark. A beta of 0 means that there is no dependency. If the 
beta fluctuates between 0 and 1, the price change of the share is 
on average less than that of the benchmark. A beta greater than 1 
indicates that the price change of the security is on average higher 
than that of the benchmark.
I 
Information RatioThe information ratio expresses the ratio of additional returns 
generated to the extra risk involved. The over or underperformance 
of the fund relative to its performance comparison index is divided 
by the tracking error.
J 
Jensen's AlphaJensen’s alpha is a risk adjusted measure of a fund's performance r
elative to its performance comparison benchmark. Beta: A measure 
of the volatility of a fund relative to its performance comparison index, 
i.e. how sensitive the fund is to movements.
S 
Share Ratio

Sharpe ratio is the measure of risk-adjusted return of an investment. 
It is the return achieved of the fund above the risk-free interest rate 

divided by the volatility of the returns.

T 
Tracking ErrorA measure of how much a fund’s returns deviate from those of its 
performance comparison index. The lower the number the closer the 
fund’s historic performance has followed that of its performance 
comparison index.
V 
VolatilityVolatility is the degree of variation of a security price or index around 
its mean over a fixed period of time. A security is referred to as volatile 
when its price fluctuates sharply.