Glossary attachment

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Tax Credit

An amount subtracted from the federal tax payable, which will directly reduce the amount of tax payable.

Technical Analysis

A method of evaluating future security prices and market directions, based on statistical analysis of variables such as trading volumes (historic) and price changes, in order to identify patterns.

Total Return

The annual return on an investment including interest income, dividend income and capital gains.

Total Return Calculation

To calculate the return from open-ended mutual funds Investors can apply the following equation and guidelines:

Profit from investment can be calculated as follows:

(RP+D-PP)

Symbol stands for:

a    =    Date of investment
b    =    Date of calculation of return or date of redemption
x    =    (b-a) means period of investment holding
PP =    Purchase Price or NAV at the beginning of relevant year
RP =    Redemption Price or NAV at the end of relevant year
D   =    Dividends received during the investment holding period or relevant year

The return can be worked out by dividing the profit from investment by the PP and then be annualized. Investors can work out the return for the entire holding period (i.e. x), or separately for each year.

Open-ended funds recover a sales charge (called sales load) from unit/ shareholders. Sales load is a certain fixed percentage of NAV. Some mutual funds recover the sales load when investors purchase the units, whereas others do when investors redeem the units. Mutual funds generally do not charge sales load on reinvestment of dividend. The shorter the period of investment, the greater will be the impact of the sales load. Maximum benefit can be derived from mutual fund investment by regularly investing, reinvesting the dividend and holding the investment for a longer period.

Transfer

The redemption of units in one account to purchase units in another account within the same family of funds. The transaction usually takes place at the same time.

Transfer Agent

Means a company including a Bank that the Management Company shall appoint for performing the Registrar Function.

Treasury Bills

Short-term debt instruments issued by governments for a year or less. They are issued at a discount and mature at face value. The difference between the purchase price and the maturity value is considered interest income.

Trust

A legal entity created by a grantor for the benefit of designated beneficiaries, under the laws of the jurisdiction and the valid trust instrument.

Trust Deed

Legal document that includes the conditions under which a fund is issued. It includes the face value, maturity date, coupon rate and any other terms and/ or features.

Trustee

In the case of a mutual fund established as a trust, an individual or person responsible for representing the interests of the unit holders.