CIFC flashcards
CIFC · Build recall with a focused review session.
24 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Total return
- The combined effect of income and investment-value change over a stated period, measured consistently with cash-flow and reinvestment assumptions.
- Real return
- The change in purchasing power after adjusting nominal investment growth for inflation, using the approximation or exact relationship specified.
- Duration
- A measure of a bond or portfolio’s sensitivity to small interest-rate changes under its assumptions, distinct from credit quality or a return guarantee.
- Diversification
- Combining different underlying exposures to reduce concentration, while recognizing that shared economic drivers and broad market losses can remain.
- Net asset value
- A fund’s assets less liabilities, expressed per unit by dividing net assets by the applicable number of units outstanding.
- Fund series
- A particular arrangement within a fund that can carry different fees, eligibility or service features despite shared underlying portfolio exposure.
- Tracking difference
- The difference between a tracking fund’s return and its stated benchmark on a compatible basis, affected by costs and implementation conditions.
- Distribution
- A payment or allocation from a fund that must be considered with its source and unit-value effect rather than treated automatically as extra wealth.
- Risk tolerance
- The client’s willingness to accept uncertainty and loss, assessed separately from the financial ability to withstand the consequences of that loss.
- Risk capacity
- The client’s financial ability to bear adverse investment outcomes in light of resources, obligations, liquidity and the purpose of the funds.
- Liquidity need
- A requirement for accessible cash at a relevant time, which can constrain investment choice even when the client has substantial total wealth.
- Portfolio concentration
- The extent to which combined holdings depend on a limited set of issuers, sectors, currencies or economic drivers, including overlap across funds.
- Adjusted cost base
- The cost basis used in a disposition calculation after applicable acquisitions and adjustments, requiring records of reinvestment and relevant return-of-capital amounts.
- Return of capital
- A distribution component that generally reduces adjusted cost base under the applicable rules, rather than automatically representing additional earned return.
- Marginal tax rate
- The rate applied to an additional taxable amount under the relevant assumptions, not necessarily the average rate across all income.
- Tax deferral
- A postponement of taxation under an applicable arrangement, distinct from a permanent exemption, contribution-room entitlement or investment performance guarantee.
- Material conflict
- An interest or incentive significant enough to require assessment and an appropriate response under the applicable client-focused and firm requirements.
- Pre-signed form
- A signed document with incomplete information that can undermine evidence of genuine client review and authorization when later entries are added.
- Authentic instruction
- A direction genuinely provided by the client or properly authorized person through the required process, rather than inferred from familiarity or convenience.
- Complaint handling
- The fair assessment, communication, record and escalation process for a client concern, distinct from an unrelated sales or retention incentive.
- Fund Facts
- Concise Canadian mutual-fund disclosure presenting key information for the particular fund and series, not an individualized suitability decision or return guarantee.
- Registration category
- The defined scope of regulated activities a person or firm may conduct under the applicable framework, separate from a course-completion claim.
- Custody
- The arrangements for holding and safeguarding assets, which must be distinguished from investment management and the risk of market-value changes.
- Legacy course scope
- A historical course subject area retained for study, without implying that its former provider, booking process or syllabus remains currently available.