Glossary attachment

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Dealer

A firm or individual that specializes in the buying and selling of securities from or to another firm or the public.

Dealer

A firm or individual that specializes in the buying and selling of securities from or to another firm or the public.

Debenture

An IOU of a municipal government or a corporation backed only by the general credit of the issuer and not secured by specific assets. It is a fixed income security, issued with a maturity of one year or more to raise funds in the long-term. It is an evidence of debt, in which the issuer promises to pay the investor a specific amount of interest for a period of time, and the eventual repayment of the principal on the maturity date.

Debt

Reference to amounts that are owing to be repaid in the future. Examples include bonds, debentures, mortgages and short-term notes.

Debt to Equity Ratio

Financial ratio, identifying the amount of debt incurred by a corporation to fund its growth, relative to its equity.

Default Risk

See Risk.

Depreciation

Systematic charges against earnings to write off the cost of an asset over its estimated useful life representing the loss in value due to 'wear and tear' through use. It is a bookkeeping entry and does not involve the expenditure of cash.

Derivatives

These are securities whose value and returns are determined by or "derived from" the value of an underlying instrument such as a stock, bond, commodity, currency, market index or some other investment. Examples include rights, warrants, options and futures.

Director

An individual elected by shareholders to the Board of Directors to oversee the operation of the business. The directors appoint the President, senior executives and officers of the company. They also decide when dividends are to be paid.

Disclaimer Clause

Regulators require that all prospectuses have a disclaimer clearly indicating that the regulators/ securities authorities have in no way passed upon the merits of the securities being offered for sale.

Distribution Company/Companies

Means individual(s), company (ies), firm(s), Bank(s) or other entity (ies) appointed by the Pension Fund Manager for performing any or all of the Distribution Functions and shall include the Pension Fund Manager itself, if it performs the Distribution Function.

Distributions

Payments made by a fund to its investors representing dividends, capital gains and interest income.

Distributions Function

means with regard to:

a) Receiving applications for issue of Units together with the aggregate Offer Price for Units applied for by the applicants; 

b) Issuing of receipts in respect of (a) above; 

c) Interfacing with and providing services to the Holders including receiving redemption applications, transfer applications, conversion notices and applications for change of address or issue of duplicate Certificates for immediate transmission, in accordance with the instructions given by the Management Company or the Trustee, to the Management Company or the Transfer Agent as appropriate; and 

d) Accounting to the Trustee for all:

  1. moneys received from the applicants for issuance of Units; 
  2. payments made to the Holders on redemption of Units; and 
  3. expenses incurred in relation to the Distribution Function.
Distributor

Financial organizations that have both the authority and infrastructure to buy and sell mutual funds to the investing public. This includes investment dealers, brokers, banks, mutual fund dealers, insurance companies and mutual fund management companies, registered as dealers.

Diversification

Spreading investments among different asset classes; purchasing different securities in different companies, in different businesses, in various locations at different times. A method used to reduce and/ or eliminate unsystematic risk.

Dividend

Generally paid out of retained earnings and determined by the company's board of directors and paid out to its preferred and/or common shareholders. The dividend may be paid in cash or in additional shares. Common share dividends fluctuate with the profitability of a company, while its preferred share dividends are fixed. Dividend payments are not legal obligations.