ITAA

Income Tax Assessment Act

Investment linked fund

Funds directly link the value of the plan’s investments in the fund to the market value of the underlying assets.

Investment grade

Debt securities that have a credit rating high enough for them to be purchased by most institutional investors. Debts rated by Standard & Poor’s at BBB and above and by Moody’s to Baa3 are considered to be investment grade securities that provide adequate financial protection to meet their obligations.

Internal rate of return (IRR)

The return from an investment, calculated to show the rate at which the present value of future cashflows from an investment is equal to the cost of the investment. Effectively it is the compound rate of return over the life of the investment and combines capital gains with income earned.