Glossary 

An approach of investing a portfolio across numerous assets classes in precise proportions so as to achieve diversification.

A broad investment category, such as equities, fixed income, commodities or real estate.

Another name for a portfolio of equities or other assets.

An alternate name for an index.

The fee you pay a stockbroker to buy or sell a listed security such as an ETF.

An index or basket of equities where the makeup of each stock is weighted in proportion to its market capitalisation.

An investor whose funds and uncertificated securities are in the control of a Settlement Agent and whose settlements take place via a CSDP as if the investor’s funds or uncertificated securities were under the control of a Settlement Agent.

A person who is licensed as a central securities depository under section 32 of the Securities Services Act, No 36 of 2004, being Strate at the time of the Opening Date.

Dividends are generally payments made to owners of a company. These payments can be in the form of cash or the issuance of additional Stock. Dividends are generally used as a way to allow the owners to participate in the profits generated by the company.

The dividend per share shown as a percentage of the last sale price.

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like an equity share on an exchange and experiences price changes throughout the day as it is bought and sold.

The amount, expressed as a percentage of total investment, that shareholders pay annually for mutual and ETF Funds operating expenses and management fees.

An investment management strategy in which, the investor aims to match the performance of a market as a whole, rather than selecting particular stocks or assets.

JSE Limited, a public company duly registered and incorporated with limited liability under the company laws of the Republic of South Africa, under registration number 2005/022939/06, and licensed as an exchange under the Securities Services Act, No 36 of 2004.

‘Large cap’ is a term used to refer to the largest companies on the major exchanges in the world.

Liquidity means how easy it is to buy and sell a financial instrument for cash without causing any significant change in its price. A very actively traded market, where it's easy to sell whatever you're holding for cash, without discounting its price heavily, is said to be a liquid market.

The annual fee charged to investors in a fund.

NewFunds (Proprietary) Limited (registration number 2005/034899/07) (previously known as Lexshell 667 Investments (Proprietary) Limited), a private company duly incorporated in accordance with the laws of the Republic of South Africa or such other Manager of NewFunds as may be appointed in accordance with the provisions of CISCA.

‘Mid cap’ refers to companies below the very largest in the main index of a stock exchange.

The Net Asset Value or NAV is the total value of the fund's portfolio less its liabilities i.e. equal to the closing market value of all securities within a portfolio plus all other assets, subtracting all liabilities, and then dividing the result by the total number of shares outstanding.

An investor, other than a Controlled Client, who has appointed and whose settlements take place directly with a CSDP.

The Offering Circular and Portfolio Supplement are documents issued by all ETFs as required by law, which discloses the fund's investment objectives, history, management, fees, holdings, and related information.

Rebalancing is the action of bringing a portfolio of investments that has deviated away from one's target index back into line.

A CSDP approved in terms of the Applicable Procedures to perform electronic net settlement of both cash and securities on behalf of market participants.

‘Small cap’ companies are those whose market valuations rank between the largest 50% and 80% that are publicly traded.

The electronic settlement system utilised by the JSE and administered by Strate, which facilitates the electronic clearing and settlement for all transactions concluded on the JSE.

Any divergence between an ETF's value and the value of the index or benchmark it is attempting to track.