Actuarial Valuation
Professional assessment undertaken by an actuary to determine whether the assets of a plan are likely to be sufficient to meet the accrued benefits; normally carried out at least every…
Actuarial Assumption
Estimate made for the purposes of an actuarial valuation. Possible variables include life expectancy, return on investments, interest rates and growth in earnings.
Activism
Intervention by shareholders using their ownership rights to influence the actions of corporate management with a view to enhancing the value of the company
Active Risk
Risk measured in terms of volatility of a portfolio’s return compared with that of the benchmark return, arising from active management. Some level of active risk is necessary to achieve…
Active Position
Difference between the actual level of investment made in a particular stock or asset class and the benchmark allocation
Active Management
Approach to investment management which aims to outperform a particular market index or benchmark through asset allocation and/or selection decisions.
Accrued Interest
Interest that has been earned but not yet received. The purchaser of a bond in the market pays the seller the value of the accrued interest, as the former will…
Accrued Benefits
Benefits that an employee has earned to date based on his or her membership of a pension scheme. Accrued benefits are often calculated in relation to the employee’s salary and…
Absolute Return
Investment strategies targeting a positive return in absolute terms rather than relative to an index or other benchmark. These strategies avoid construction limitations imposed by the measurement against a specific…