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Glossary |
A
Actively Managed funds
These funds try to predict market changes in order to beat a market index. These funds carry a higher fee than passively managed funds.
Actuarial
An adjective that describes statistical elements, assumptions,
and techniques used by actuaries. An "actuary" is an expert who
computes insurance or pension risks and plan costs based upon plan
membership, experience, and other factors. Actuaries determine the
level of funding required to provide the benefits promised to you under
the Florida Retirement System.
Annual Fees
The current fees an investment fund charges to cover management, operating and marketing expenses. Actual fees are proportional to the amount you invest in that fund. For example, if the annual fee for a $10,000 investment in a fund is $2 but you only invest $1,000, you would be charged ($1,000 รท $10,000) x $2, or 20 cents for a year. Fees may change in the future. Fees and expenses are only one of several factors that you should consider when making investment decisions.
Annuity
An insurance contract that guarantees you monthly income for the rest of your life, or for the period of time you choose.
Average Final Compensation or AFC
The average of the 5 highest years of salary earned during
covered employment. Salaries are counted by fiscal year (July 1 - June 30).
Average Market Result
An estimate in "Today's Dollars" of what an investment of $10,000 might grow to over a 10-year period. There is a 50% chance that $10,000 would grow to this amount or more in 10 years.
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