1) ACCOUNT VALUE The total rupee value of mutual fund units in a unit holder's account.

Account value is calculated by multiplying the number of fund units held in an account by the current net asset value per unit (NAV). If the account includes more than one fund, the results of this calculation for each fund are added together to obtain the value of the account. 2) ACCOUNT STATEMENT Means statement of transactions in Units in the folio of the Holder. 3) ACCRUED INTEREST Interest income owing on a bond or a debenture since the last payment was made, but not yet paid. The purchaser of the bond or debenture will pay the market price, plus the accrued interest. 4) ACQUISITION COST Cost of acquiring units of a mutual fund, including commissions and fees paid at the time of purchase. 5) ANNUAL MEETING Yearly shareholder's meeting at which the company's directors report on the preceding year and shareholders vote on matters of importance to the company. Annual meetings apply only to funds that are established as mutual fund company. 6) ANNUALIZED RATE The rate of return that would be earned if the security were invested for a one- year term. 7) ANNUAL REPORT An audited formal financial statement and report on its operations, distributed by a publicly held firm to its shareholders after its fiscal year-end. 8) ANNUITY A contract, usually between an insurance company and an individual, under which an amount is paid to the insurance company in exchange for the right to receive future regular payments, over a specified period of time. 9) ASSET Everything a company owns or is due to the corporation. (2) All property (personal and real estate), financial investments (including mutual funds) and other financial resources

owned by an individual. 10) ASSET ALLOCATION The process of selecting the optimal combination of securities from the different asset classes for an institutional or individual portfolio. Over time the portfolio will be rebalanced as markets change or the circumstances of an investor's personal and financial situation change in the case of an individual portfolio. 11) ASSET CLASS Three types of asset classes that can be held in a portfolio: cash or cash equivalents (treasury bills, commercial paper and other short-term promissory notes), fixed income investments (bonds, debentures and preferred shares) and equity securities (common shares). 12) AUDIT An intensive examination of the accounting and financial procedures and practices of a company or mutual fund, and is carried out by auditors. See Auditors. 13) AUDITORS Chartered accountant firm, responsible for conducting an independent audit. They are responsible for professionally examining and verifying a company's accounting documents and supporting data for the purpose of rendering an opinion as to their accuracy, consistency and fairness. 14) AUTHORIZED SHARES The total number of shares declared by a corporation at the time of its incorporation that can be issued, limited by its articles of incorporation. In the case of a mutual fund corporation, the charter permits an unlimited number of shares to be issued on a continuous basis. 15) AVERAGE COST Weighted average of the price paid per unit, based on the total units purchased in an account. 16) AVERAGE MATURITY Average time remaining to maturity of bonds in a portfolio. A longer average term to maturity will provide the investor with a higher yield, but also subjects the investor to potentially higher risk if interest rates were to rise. 17) AVERAGING DOWN

Buying more of a security at a lower price than the original investment. The primary aim is for the investor to reduce the average cost of their security. 18) ALLOCATION SCHEME Means the allocation scheme(s) offered by the Pension Fund Manager in light of the Prescribed Allocation Policy issued by the Commission from time to time. 19) ANNIVERSARY DATE Means the Business Day following the completion of one full year from the opening of the Individual Pension Account with the Pension Fund Manager and thereafter the Business Day following completion of subsequent one full year. 20) BACK-END LOAD Means Sales Load deducted from the Net Asset Value in determining the Redemption Price. 21) BALANCE SHEET A financial statement showing a company's or fund's assets, liabilities and shareholder's equity. 22) BALANCED FUND A mutual fund comprised of a mix of various assets, including money market investments, fixed income securities and equities. The percentage holding of the type of asset class will depend on (1) market conditions and/ or (2) the fund's investment objective. 23) BASIC POINT One basis point equals one one-hundredth of a percentage point. Thus a 250 basis point increase is equal to a 2.5% increase. 24) BANK RATE The rate at which the State Bank makes short-term loans to chartered banks and other financial institutions. It is also the benchmark for prime rates set by financial institutions. 25) BANKERS' ACCEPTANCES A short-term debt instrument issued by a bank for a non-financial company backed by the bank's promise to repay if the borrowing corporation defaults. 26) BEAR MARKET

A declining securities market, with prices decreasing in value over time. Opposite from a Bull Market. 27) BEARER FORM A security which does not have the owner's name registered on the books of the issuer. The name of the owner will not be found on the security. The coupons attached to the bond must be clipped and sent to the issuer in order to receive the coupon payment. Bonds in bearer form should be treated like cash. 28) BENEFICIAL OWNER An individual who benefits from the assets owned in an account. This individual may be different from the registered owner, as in the case of a nominee. 29) BENIFICIARY An individual named as the recipient of a gift which can be made through a trust or who will receive an inheritance upon the death of another individual. 30) BETA Represented by the symbol . A statistical tool used to measure the volatility (risk) of a stock. The volatility of a stock is measured relative to a stock market (represented by an index), which always has a beta of 1. A stock that is more volatile than an index has a beta greater than 1; while a stock which is less volatile than a market has a beta less than 1. For example should a stock market increase by 10%, the price of a stock with a beta of 2 should increase by 20%, indicating that it is twice as volatile as that particular market. 31) BID PRICE The highest price a buyer is willing to pay for a security. 32) BLUE CHIP A high grade investment. Usually an active well known common share with a record of continuous payment of dividends. 33) BOARD OF DIRECTORS A group of individuals elected by the shareholders of a company, who are empowered and given the responsibility to manage the affairs of the company in a diligent and prudent manner. The directors are usually elected at the annual general meeting of the company. 34) BOND An IOU of the federal government, a provincial government or a corporation (if secured by specific assets). It is a fixed income security, issued with a maturity of one year or more to

raise funds in the long-term. It is an evidence of debt, in which the issuer guarantees to pay the investor a specific amount of money, interest, for a period of time, and the eventual repayment of the principal on the maturity date. 35) BOND FUND A mutual fund whose primary investment objective is to invest in high quality fixed-income investments in order to offer its investors regular income streams. 36) BOOK VALUE OR BREAK-UP VALUE The book value of a stock of a company is calculated from a company's balance sheet, by adding all the assets and deducting them from the total liabilities. (2) The original cost of all the investments held within a mutual fund plan, less any withdrawals, plus any reinvested dividends and income. 37) BROKER Securities firm or duly registered individual employed by such a firm. A broker does not usually own the securities that are bought or sold, but rather acts as agent for the buyer or seller and charges a commission for its services. 38) BULL MARKET An advancing securities market, with prices increasing in value over time. Opposite from Bear Market. 39) BUSINESS CYCLE A several year period in which the economy generally grows and then contracts (recession) and then resumes an up-trend. 40) BUSINESS DAY Days when corporations and governments are open for business. It excludes Sundays and certain statutory holidays. 41) BUY-AND-HOLD STRATEGY A long-term investment strategy where investments are purchased for their future potential and are held by the investor regardless of their short-term. 42) CALL OPTION An option contract in which the buyer has the right, but not the obligation, to purchase an underlying security at a fixed price, prior to an agreed-upon expiry date. Call options are usually purchased by investors who believe that the underlying security will go up in value.

43) CALL PREMIUM The difference between the call price and the par value of a callable bond or callable preferred share. 44) CALL PROTECTION Shares that cannot be called for a specific period of time after they have been issued. 45) CALLABLE A bond or preferred share that can be called by the issuer, at a specific price, usually when interest rates have declined since the bond or preferred share was originally issued. 46) CAPITAL From an economic perspective, it represents the inputs into production, such as machinery, factories and buildings. (2) From a company perspective, it represents the equity interest in a business or net worth (the difference between the total assets and total liabilities), consisting primarily of common and preferred shares. (3) From an investor's perspective, it represents all that is owned by an individual, including home, securities, cash and any other investments. (4) In an investment sense, it is the total money available through savings for investment. 47) CAPITAL ASSETS For accounting purposes, fixed assets of a business including land, buildings, machinery or furniture, not intended for sale. (2) For tax purposes a capital asset is a stock, bond, mutual fund, option, real estate and other property, primarily purchased as a long-term investment, with income producing capabilities. 48) CAPITAL COST ALLOWANCE Allowing for the depreciation in value of a fixed asset for tax purposes. 49) CAPITAL GAIN (or Capital Appreciation or Capital Growth) Results when a profit is realized from the difference between the purchase price of a capital asset (stocks, bonds, options, mutual funds, real estate and other property) and the selling price of that asset. 50) CAPITAL LOSS Results when a loss is realized from the difference between the purchase price of a capital asset (stocks, bonds, options, mutual funds, real estate and other property) and the selling price of that asset. 51) CAPITAL STOCK

All the outstanding shares in a corporation, including preferred and common shares. 52) CASH EQUIVALENTS Assets that can be converted quickly into cash without a loss and include T-bills, commercial paper, short-term bonds and short-term paper. 53) CASH FLOW A company's reported net income generated from its operations, plus amounts charged for depreciation, depletion, amortization, deferred income taxes and minority interest. 54) CERTIFICATE A document representing ownership of a certain number of shares or fixed income investments such as bonds. 55) CLOSED-END FUND An investment fund that issues a specific number of shares; its capitalization is fixed. The shares are not redeemable, but are readily transferable and trade on either a stock exchange or the over-the-counter market. 56) COLLATERAL Securities or other property pledged by a borrower as a guarantee for repayment of a loan. 57) COMMERCIAL PAPER Short-term promissory note, issued by well-established corporations to raise funds to meet short-term needs, traded in the money market. 58) COMMISSION A fee charged by a stock broker or financial advisor or mutual funds sales representative for buying or selling securities as agent on behalf of an investor. 59) COMMON SHARES A class of stock that represents ownership in a company. They usually carry a voting privilege and entitle owners to share in the company's profits. 60) COMPANY See Corporation.

61) COMPOUNDING Indicates that the return earned on an investment will increase, if the returns are reinvested, whether it be interest and/ or dividend income and/ or capital gains. The rate that is used to calculate the returns is based not only on the original investment, but also on the accumulated returns of prior terms. 62) CONFIRMATION A printed document identifying details of an investor's purchase and/ or sale of a security. The confirmation is usually sent out by the broker, investment dealer or fund company. 63) CONSTITUTIVE DOCUMENT means the Trust Deed that is the principal document governing the formation, management or operation of the Trust. 64) CONTINUOUS DISCLOSURE Securities regulators require organizations and individuals report information that is material to them within a certain period of time. This may include changes in the affairs of the company to an advisor's business or personal address change. 65) CONVERSION A bond, debenture or preferred share which can be converted into the common stock of the same company. 66) CONVERSION PRICE The price at which investors can convert their bonds or preferred shares into common shares. 67) CONVERTIBLE A bond, debenture or preferred share which is convertible by the investor into the common shares of the issuing company. 68) CORPORATE RESOLUTION Document signed by the Board of Directors of a corporation that identifies the people with signing authority on behalf of a corporation for a mutual fund account. 69) CORPORATION A legal, taxable organization chartered under either provincial or federal law. Ownership of a corporation is held by its stockholders. The corporation can be private (limitations on the number of shareholders as well as restrictions on rights of shareholders to transfer

shares) or public (shares trade in an open market with no restrictions). Also referred to as a company. 70) CORRECTION A short-term drop in stock prices bringing the market back into line as determined by investment professionals. 71) COUPON RATE The annual rate of interest paid on a bond. 72) CREDIT RISK See Risk. 73) CURRENT ASSETS An asset that can be converted into cash within a year. Examples include cash, cash equivalents, and marketable securities, accounts receivable and inventories. 74) CURRENT LIABILITY Money that has to be paid by a business within a year. Examples include accounts payable and short-term loans. 75) CURRENT YIELD The yearly income from an investment, expressed as a percentage of its current market price. On a bond, it is the annual interest divided by the current market price of the bond; for a stock, it is the annual dividend divided by the current market price of the stock. 76) CUSTODIAN A bank or a depository company that according to securities law holds the assets (cash and securities) of a mutual fund on behalf of the fund. This safekeeping of the assets serves to protect investors and helps facilitate easier transactions for the fund when securities are bought or sold. 77) CONTRIBUTION Means an amount as may be voluntarily paid by a Participant at any frequency to the Trustee for credit to the Individual Pension Account of a Participant, subject to any minimum limit as specified in the Offering Document. 78) DEALER

A firm or individual that specializes in the buying and selling of securities from or to another firm or the public. 79) DEBENTURE An IOU of a municipal government or a corporation backed only by the general credit of the issuer and not secured by specific assets. It is a fixed income security, issued with a maturity of one year or more to raise funds in the long-term. It is an evidence of debt, in which the issuer promises to pay the investor a specific amount of interest for a period of time, and the eventual repayment of the principal on the maturity date. 80) DEBT Reference to amounts that are owing to be repaid in the future. Examples include bonds, debentures, mortgages and short-term notes. 81) DEBT TO EQUITY RATIO financial ratio, identifying the amount of debt incurred by a corporation to fund its growth, relative to its equity. 82) DEFAULT The failure of a debtor (issuer) to make the coupon payments and/ or repayment of principal on the due date. 83) DEFAULT RISK See Risk. 84) DEPRECIATION Systematic charges against earnings to write off the cost of an asset over its estimated useful life representing the loss in value due to 'wear and tear' through use. It is a bookkeeping entry and does not involve the expenditure of cash. 85) DERIVATIVES These are securities whose value and returns are determined by or "derived from" the value of an underlying instrument such as a stock, bond, commodity, currency, market index or some other investment. Examples include rights, warrants, options and futures. 86) DIRECTOR An individual elected by shareholders to the Board of Directors to oversee the operation of the business. The directors appoint the President, senior executives and officers of the company. They also decide when dividends are to be paid.

87) DISCLAIMER CLAUSE Regulators require that all prospectuses have a disclaimer clearly indicating that the regulators/ securities authorities have in no way passed upon the merits of the securities being offered for sale. 88) DISTRIBUTIONS Payments made by a fund to its investors representing dividends, capital gains and interest income. 89) DISTRIBUTIONS FUNCTION means with regard to: a. Receiving applications for issue of Units together with the aggregate Offer Price for Units applied for by the applicants; b. Issuing of receipts in respect of (a) above; c. Interfacing with and providing services to the Holders including receiving redemption applications, transfer applications, conversion notices and applications for change of address or issue of duplicate Certificates for immediate transmission, in accordance with the instructions given by the Management Company or the Trustee, to the Management Company or the Transfer Agent as appropriate; and d. Accounting to the Trustee for all moneys received from the applicants for issuance of Units; payments made to the Holders on redemption of Units; and expenses incurred in relation to the Distribution Function. 90) DISTRIBUTOR Financial organizations that have both the authority and infrastructure to buy and sell mutual funds to the investing public. This includes investment dealers, brokers, banks, mutual fund dealers, insurance companies and mutual fund management companies, registered as dealers. 91) DIVERSIFICATION Spreading investments among different asset classes; purchasing different securities in different companies, in different businesses, in various locations at different times. A method used to reduce and/ or eliminate unsystematic risk. 92) DIVIDENED Generally paid out of retained earnings and determined by the company's board of directors and paid out to its preferred and/or common shareholders. The dividend may be paid in cash or in additional shares. Common share dividends fluctuate with the profitability of a company, while its preferred share dividends are fixed. Dividend payments are not legal obligations. 93) DISTRIBUTION COMPANY/COMPANIES

Means individual(s), company(ies), firm(s), Bank(s) or other entity(ies) appointed by the Pension Fund Manager for performing any or all of the Distribution Functions and shall include the Pension Fund Manager itself, if it performs the Distribution Function. 94) ELECTRONIC FUNDS TRANSFER (EFT) A method of transferring payments electronically between the bank accounts of the payer and payee. 95) EQUITY FUND A mutual fund whose primary investment objective is growth. The fund would invest in growth oriented securities such as common shares, with growth potential. 96) EQUITY INVESTMENT RISK See Risk.