Investor Presentaiton
APPENDIX II
GLOSSARY
Assets: What a firm or individual owns.
Balanced fund: A mutual fund which has an investment policy of "balancing" its portfolio
generally by including bonds and shares in varying proportions influenced by the fund's
investment outlook.
Board of directors: A committee elected by the shareholders of a company, empowered to
act on their behalf in the management of company affairs. Directors are normally elected
each year at the annual meeting.
Bond fund: A mutual fund whose portfolio consists primarily of bonds.
Broker: An agent who handles the public's orders to buy and sell securities, commodities,
or other property. A commission is generally charged for this service.
Custodian: A financial institution, usually a bank or trust company that holds a mutual
fund's securities and cash in safekeeping.
Debenture: A bond unsecured by any pledge of property. It is supported by the general
credit of the issuing corporation.
Distributions: Payments to investors by a mutual fund from income or from profit realized
from sales of securities.
Diversification: The investment in a number of different securities. This reduces the risks
inherent in investing. Diversification may be among types of securities, companies,
industries, or geographic locations.
Dividend fund: A mutual fund that invests in common shares of senior Canadian
corporations with a history of regular dividend payments at above average rates, as well as
preferred shares.
Equity fund: A mutual fund whose portfolio consists primarily of common stocks.
Fiduciary: An individual or institution occupying a position of trust, i.e., an executor,
administrator, or trustee.
Fixed income investments: Investments that generate a fixed amount of income that
does not vary over the life of the investment.
Guaranteed investment certificates: A deposit instrument paying a predetermined rate
of interest for a specified term; available from banks, trust companies, and other financial
institutions.
Consultation paper
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