Zimbabwe » Glossary

A determination of the value of either assets or liabilities. The term is specifically applied to a determination of a life insurance company’s actuarially calculated liability in respect of life insurance business in force at balance sheet date.

The collection of assumptions used by an actuary in his valuation.

The approach used by the actuary in an actuarial valuation. A variety of methods can be used but the method or methods used in a particular case should be made clear in the actuarial report.

A retirement fund that is, in terms of Regulation 2 of the Pension Funds Act, not required to submit an actuarial valuation of its assets and liabilities to the Registrar.

See statutory actuary.

Captures the extent to which a company\'s ongoing business is priced inexpensively in the marketplace.

Lower percentile of a profit or loss distribution over predefined time horizon.

The primary investment objective of these funds is medium to long-term capital appreciation. They seek out value shares with low rice/earnings ratios and shares which trade at a discount to net asset value. This means if you sold off all the assets of the company, the total amount you would get would be worth more than the total value of the shares. These funds frequently offer higher levels of income due to the high dividend yields. Value funds can invest in all sectors of the JSE. The benchmark is the JSE All Share Index.

Typically, shares that trade at lower PE multiples than the market and/or at a discount to net asset value.

A policy where the value of the article insured is agreed between the insurer and the insured, when the policy is prepared, as the sum insured to be paid in the event of loss.

Predicts a company\'s volatility based on its historical behaviour.

Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio.

An annuity in which the amount of payments to be made are specified in units rather than in monetary amounts. When payment is due the amount is determined based on the value of investments in the annuity fund.

A whole life insurance policy that provides a death benefit dependent on the insured\'s portfolio market value at the time of death. Typically the company invests premiums in common stocks, so variable life policies are referred to as equity-linked policies.

Partial ownership by an employee of the retirement account balances or benefits contributed on the employees' behalf by an employer. The Surplus Legislation did away with vesting provisions in retirement funds.

This is a relatively new investment fund which aims to produce steady growth over a long term. Any growth forms part of the investment and cannot be removed if market conditions deteriorate. It remains in force for the full term of the policy until it matures. The growth on the policy takes place by bonuses being declared, based on the expected long-term return on the fund. Up to 70% of the fund can be invested in shares. It is a suitable investment fund for those who invest in Capital Growth or the Retirement Annuity.

Of no legal effect. The insurance policy has no legal effect.

This is a standard risk measure characterised by the standard deviation of portfolio returns.

This is the daily number of shares of a security that change hands between a buyer and a seller.

The right to vote on matters that are put to a vote of share holders, e.g. the right to vote for directors.