| Financial term | Definition |
|---|---|
| Fixed income portfolio | Assets or securities in an Investment portfolio paying regular income in the form of coupon, interest and principal at maturity. |
| Equity portfolio | Stock or any other security in an investment portfolio representing an ownership interest in Investee companies. |
| Real estate portfolio | Physical securities and assets in investment portfolio purchased, owned, sold, managed for rental income for a profit. |
| Convexity | Convexity is a measure of the degree of the curve, in the relationship between bond prices and bond yields. It demonstrates how the duration of a bond changes as the interest rate changes. We use it as a risk-management tool, to measure and manage out portfolio’s exposure to interest rate risk. |
| Sharpe ratio | Sharpe Ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Subtracting the risk-free rate from the mean return allows us to better isolate the profits associated with risk-taking activities. The greater the value of the Sharpe ratio, the more attractive the risk-adjusted return. |
| Discontinued operations | This relates to operations that were ceased during the financial year due to disposal or cessation. |
| Fund reserves | Fund Reserves relate to accumulated special contributions received in accordance with Section 13 (1) and Section 14 (1) of the National Social Security Fund Act, (Cap 222). |
| Emphasis of matter | A paragraph included in the auditor’s report that refers to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s judgment, is of such importance that it is fundamental to users’ understanding of the financial statements. |
| Key audit matter | A key audit matter is that which in the auditor’s professional judgment was of most significance during the audit of the financial statements. |
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