[ A ]

Adjusted yield. Represents what a fund's yield would have been if the fund's manager had not agreed in advance to waive all or a portion of the fund's management fees and/or to reduce expenses. The fund's manager may terminate such agreement at any time upon notice to the fund's board.

Agent bank. Banks that are appointed by the CPF Board to handle CPF members' investments under the CPFIS Scheme.

Alpha. The difference between a fund's actual returns versus its expected performance, given its level of market risk as measured by beta. A positive alpha indicates the fund performed better than its beta would predict while a negative alpha indicates the fund's underperformance based on the expectations indicated by the fund's beta.

Annuity. A contract between the contract owner and an insurance company guaranteeing that in return for a purchase payment(s), a series of fixed or variable income payments will be paid for the life of the annuitant or for a specified period of time, beginning right after purchase (immediate annuity) or after an accumulation period (deferred annuity).

Asset allocation. An investment strategy that involves committing specific percentages of a portfolio to different asset types such as stocks, bonds, or money market instruments. The portfolio is then rebalanced periodically to maintain the target percentages.

Average annual total return (standardized). A US Securities and Exchange Commission (SEC) standardized calculation that represents the average annual change in value of an investment over specified periods and assumes reinvestment of dividends and capital gains. It takes into account the sales charge. Also known as the average annual compounded return in the Singapore context as standardized by the Monetary Authority of Singapore. The formula is:

[ A ]