Accrued Interest
This is the interest that has accumulated on a bond or debenture since the last interest payment date, i.e. interest owing to you.

Annual Information Form
A legal document filed with securities regulators that explains in greater detail information contained in the simplified prospectus of a mutual fund. Accrued Interest
This is the interest that has accumulated on a bond or debenture since the last interest payment date, i.e. interest owing to you.

Asset Class
This is a method of grouping assets by type. For example, stocks, bonds and treasury bills are three separate asset classes.

Asset Mix
The allocation of your investment dollars between different classes of assets.

Averages and Indices
These are statistical tools that measure the stock market or economy. They are based on specific stock performance or on other meaningful data. For example, the Dow Jones Industrial Average, the TSE 300 Composite Index, the Consumer Price Index (CPI).

Additional Voluntary Contributions
In addition to basic contributions, you can make additional voluntary contributions (AVCs). These are contributions over and above the required basic contributions. AVCs are deposited in your member account.

Aggressive Portfolio
Silver Thatch Pensions offers an aggressive portfolio – made up almost entirely of equities. This portfolio is intended for individuals who are looking to maximize their returns and who are willing to accept greater short-term risk.



Balanced Fund
A mutual fund where professional investment counsellors determine the asset mix of bonds, stocks and short-term securities according to their assessment of the future investment outlook.

Basis Point
This refers to one one-hundredth of a percentage point and is used to describe differences in the interest rate. For example, two bonds may differ in return by 10 basis points, 8.25% versus 8.35%.

Bear Market
This term is used to refer to a declining market.

Blue Chip
This term is used to describe widely known common stock with a record of continuous dividend payments, as well as other attractive investment qualities.

When you buy a bond, you are lending money to the government or a company. When a bond is issued, it includes a specified maturity date and a particular interest rate.

Bull Market
This term is used to describe a rising market.

Basic Contribution
You and your employer are required to contribute an amount that, when combined, equals 10% of your “earnings” (up to a maximum combined contribution of CI$6,000 a year). Your employer’s share must equal at least 5% of your earnings. If your employer contributes more than 5%, your share of the total 10% contribution will be reduced accordingly.

These contributions – referred to as your basic contributions – are deposited in a member account set up in your name. Your employer will make the contributions on your behalf once each month.

Balanced Portfolio
Silver Thatch Pensions offers a balanced portfolio – made up of about 50% equities,50% bonds. This portfolio is designed to enhance investment returns over the long term while ensuring the short-term preservation of capital.

There are two typical forms of pension benefits. Those that are defined benefits, or those that are defined contributions. Defined benefit plans promise to pay a fixed benefit to you upon your retirement and is usually proportionate to your years of service and your income during that period. Defined contribution pension plans pay benefits solely based upon payments (contributions) into the fund plus the investment earnings on those contributions. The Silver Thatch Pension Plan is a defined contribution pension plan.



Commercial Paper
This generic term describes all short-term (i.e. less than one year) negotiable debt instruments issued by non-financial companies.

Common Stock
When you buy common stock, you are buying shares of ownership in a company. Common stock gives you voting privileges at the company’s annual general meeting.

Compound Returns
You can experience the benefits of compounding when you re-invest the investment profits you earn, for an additional return. Over the long term, compounding can generate significant capital growth.

Consumer Price Index (CPI)
The Consumer Price Index (CPI) reflects the change in the rate of inflation.

Current Return
You can calculate the current return on stock by dividing annual dividends by its market price. On bonds, you divide the annual interest by its current price.

Usually a bank or trust company that holds the cash and securities of a mutual fund for safekeeping.

Conservative Portfolio
Silver Thatch Pensions offers a conservative portfolio – made up of about 25% equities,75% bonds. This portfolio is intended for individuals who want to protect the assets they have already accumulated, but who also want some potential growth.



You can purchase preferred stock or bonds below their par value. The difference between par value and the purchase price is called the discount.

You can spread your investment risk by buying a number of securities in different companies in different industries or locations.

Dollar Cost Averaging
You can reduce the average cost you pay for stock or funds by investing a fixed amount in that stock or fund at regular intervals, for example, $100 monthly contribution to your mutual fund in your RRSP.



Expense Ratio
The total of all expenses paid or payable by a mutual fund during the year divided by the average net asset value of the fund during the year. The ratio is expressed as a percentage by multiplying by 100. The expense ratio of the Integra Fund does not include management fees since management fees are not an expense of the Integra Mutual Funds.

Common and preferred shares, representing ownership in a corporation.



Face Value
Face value is the amount the issuer of a bond or debenture will pay to the investor at maturity. It is the value appearing on the certificate only, and is no indication of market value.

Fixed Income Securities
You may choose to invest in fixed-income securities, as these will regularly pay interest or dividend income, for example, bonds, debentures and preferred shares.

Fixed-Income Instruments or Vehicles
To guarantee income, you may choose these instruments that pay a fixed rate of interest for a specific period, for example, term deposits, Treasury Bills or GICs.

Fundamental Analysis
Among the many ways to analyse securities, this type of analysis is based on a company’s fundamental data, for example, sales, earnings, dividend prospects etc.

Futures allow you to buy something in the future at a price agreed in the present. Originally connected with agriculture commodities, they may now involve government bonds, foreign exchange and Eurodollar deposits.