Definitions

Asset category 
Investments can be divided into various types. We call these asset categories. Below is an example of a pension fund that invests in four asset categories: bonds, commodities, equities and real estate.

Asset mix
An asset mix is a distribution of investments across various asset categories, such as bonds, commodities, equities and real estate.  

Benchmark
A benchmark is a measure which a pension administration organisation uses to compare the results of an investment portfolio with. But it also serves as a guideline to which can be adhered when investing.  

Investment portfolio
The investment portfolio is the aggregate of the pension fund’s investments.  

Investment risk
The investment risk is the probability that the return on the investment will be lower than expected.   

Return
The return is the amount of proceeds generated by an investment over a specified period. It is expressed as a percentage.