Glossary

What is the "RBA cash rate"? 

The RBA cash rate is the interest rate set by the Reserve Bank of Australia, which determines the cost of borrowing for banks, and influences the overall interest rate environment in Australia. 

What are "fixed-income" investments? 

Fixed-income investments are usually loans made by investors to a borrower, typically for a fixed return, in the form of interest, such as government bonds and corporate bonds. 

What is "diversification"? 

Diversification is an investment risk management strategy that involves spreading investments across asset classes, sectors, and individual securities to reduce overall risk. 

What is "liquidity"? 

Liquidity refers to the ease with which an investment can be converted into cash without significant loss of value. 

What is "leverage"? 

Leverage is the application of borrowed funds, typically used to increase investment exposure. While leverage can magnify potential gains, it also increases potential losses. 

What are "derivatives"? 

Derivatives are financial contracts whose value is derived from an underlying asset (such as bonds or currencies). 

What is "short selling"? 

Short selling is an investment strategy where an investor borrows an asset and sells it, hoping to buy it back at a lower price in the future. It is a way to potentially profit from a decline in the price of an asset. 

What is a "PDS"? 

PDS stands for Product Disclosure Statement. It is an important document that provides investors with key information about a financial product, including its features, risks and fees. You can find the PDS of the fund here.