Financial Term Definition
Total Revenue (UGX) Income generated from various investment activities associated with the main operations of the Fund and shown before any costs or expenses are deducted.
Realised Revenue (UGX) Profits or income from completed transactions.
Unrealised Revenue (UGX) Profits or income occurring on paper, but the relevant transactions not yet completed. Also called paper profit or paper income, because it is recorded on paper but has not actually been realised. It includes gains on; Revaluation, Equity Investments and Foreign Exchange.
Cost of Administration Total operating costs/expenses, associated with company management, direction, policy or business activities/operations.
Accumulated Members’ Funds Total amount of money collected over a period of time from employees and other contributors in the private sector plus interest credited to members over time.
Interest to Members Amount credited to members accounts based on the income earned from various investments.
Asset Growth Movement in Total Assets.
Return on Average Investment (%) Gain generated on an investment relative to the amount of money invested.
Cost Income Ratio (%) Total Operating Costs expressed as a percentage of Total Income.
Return on Member’s Fund ( %) Gain generated in the period expressed as a percentage of Member Fund balance.
Compliance Level (%) Active members contributing consistently as a percentage of total active members.
Strategic Assets Allocation A portfolio strategy that involves setting target allocations for various asset classes and re-balancing periodically.
Dividend Income A distribution of a portion of a company’s earnings, decided by the board of directors, paid to a class of its shareholders.
Share of Results/ Profits from Associate/Fair Value Gain on Associates A portion, allocation or share of Investee company profits in which the Fund owns a significant portion of voting shares (20 - 50%).
Fair Value The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Investment Portfolio A compilation of investment assets designed to achieve a specific investment objective based on parameters such as risk tolerance, time horizon, asset preference, and liquidity needs with a potential to achieve the desired returns, while minimising risk and volatility through proper diversification and balance.
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.