Page 20 - Reeftankers - Annexure B Sasfin

PART F

GLOSSARY

8. Glossary

Asset Allocation: The distribution of investments across different categories of assets such as equities,
bonds and cash.

Asset Class: Category of assets available for investments such as equities, bonds and cash.

Benchmark: The benchmark is a combination of the performance of the underlying indices for the
different asset classes according to the portfolio’s ling term asset allocation. The benchmark serves as a
measure against which a portfolio’s performance in terms of stack selection and asset allocation is
assessed.

Bond: A debt instrument issued by a company or government which promises to pay a specific interest
rate for c defined period of time.

CPI: Consumer Price Index (CPI) measures changes in the price level of market basket of consumer
goods and services purchased by households. The CPI is a statistical estimate constructed using the
prices of a sample of representative items whose prices are collected periodically.

Equity: A stock or any other security representing an ownership interest in a company by investors.

Exchange rate: The price of a currency in terms of another currency.

Fixed income: A bond is an example of fixed income investment in which an investor loans money to
an entity, typically a corporation or government, which borrows the funds for a defined period of time at
a fixed interest rate.

Index: An index is an indicator or measure of something, in investments, it typically refers to a
statistical measure of change in the financial markets.

Inflation: Inflation is a sustained increase in the general price level of goods and services in an
economy over a period of time.

PMI: The Purchasing Managers' Index (PMI) is an indicator of the economic health of the manufacturing
sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier
deliveries and the employment environment.

Regulation 28: The Pension Funds Act legislation controlling retirement-fund investments, which is
intended to ensure a prudent investment spread for retirement-funding products, and to protect
members from a permanent loss of value due to inappropriate investment selection.

Investment Report Q1 2018 Page 13 of 14