Glossary of Terms
A
Any income earned on this type of unit is added to the price of your units (no income is distributed....
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AIM (Alternative Investment Market) is the London Stock Exchange's international market for smaller ....
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A measure of the excess return of a portfolio relative to the benchmark, on a risk adjusted basis. I....
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A fee paid to the fund manager once a year which service and administration fees.It is calculated da....
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Describes how your money is invested in the fund. In most cases, the fund manager will split the po....
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The term used to describe the manager of an Open Ended Investment Company (OEIC). An ACD has the sam....
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B
An investor who sells a security in the hope of buying it back at a lower price, as he thinks the ma....
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A measure of market sensitivity. The sign of the beta (+/-) indicates whether, on average, the inves....
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The bid price is the price at which units are sold to investors and are lower than the offer or buyi....
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The standard differential between the price of buying and selling units. Usually quoted as a percen....
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A debt security issued by borrowers and sold to investors. Bonds have a stated rate of interest (cou....
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An investor who buys a security in the hope of selling it at a higher price, as he thinks the market....
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C
This is the lowest possible price at which an investor can sell units back to the fund manager under....
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COLL is a new set of regulations, prescribed by the FSA under the rulebook for New Collective Invest....
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Funds which pool investors' money and invest on their behalf. This term refers to unit trusts and OE....
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This is a regular payment received by the bondholder over the lifetime of a bond. The coupon rate is....
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This is the highest possible price at which an investor can buy units from the manager under FSA reg....
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A major banking group, the custodian is appointed by the fund's trustee or depositary to safeguard t....
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D
The process of buying and selling investments - shares, units in a unit trust, bonds etc....
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The investing of clients’ money by a member firm on a discretionary basis. The customer leaves speci....
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That part of a company's profits after tax which is distributed to shareholders - usually expressed ....
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Unit trusts and OEICs can be dual-priced. Such funds have an offer price at which you buy, and a low....
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E
Also known as Socially Responsible Investments (SRIs). These funds aim to avoid investing in activit....
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The ex-dividend (also known as the ‘XD’ date) defines the date from which the dividend is excluded f....
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With effect from 1 November 1994, under FSA regulations, unit trust managers have been given the opt....
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F
This term used to describe a collective investment scheme, into which investors’ monies is pooled an....
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Units are priced on a forward basis when they are bought or sold by the manager at a price which wil....
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The Financial Services Authority is the regulator of financial services created by the Financial Ser....
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Arithmetic index of the UK's leading 100 shares, weighted according to the company's market capitali....
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A broad index based on 98% of all UK listed companies, in terms of market capitalisation, not number....
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As above, but relating to the 250 shares below the top 100.....
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FTSE Small Cap constitutes the 500 smallest FTSE companies with an approximate market capitalisation....
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This term used to describe a collective investment scheme, into which investors' monies is pooled an....
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G
Domestic Sterling denominated government bond issued by the Treasury.....
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The Gross Redemption Yield of a bond is the return a bond earns on the price at which it was purchas....
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A fund whose main objective is capital appreciation. This contrasts with an income fund where the ma....
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H
The opposite of forward pricing. This is where managers will buy and sell shares on the basis of pri....
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I
A fund whose objective is to provide income growth on a regular basis over time.....
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An adviser not employed by a single firm who can select from all companies' products, i.e. pensions,....
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A grouping of shares or fixed interest securities on the stock market which are often similar in siz....
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An ISA is a scheme of investment with no tax liability on income or capital gains arising from asset....
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The initial charge on a unit trust is made when the units are sold to the investor. The charge is a....
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These bonds have a low risk of the company that issued them being unable to repay them. The most sec....
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The IMA is a trade body for the UK investment management industry. Its members provide UK investmen....
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International Securities Identification Number (ISIN). International code for a listed security.....
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J
These are bonds rated 'BB' or lower because of its high default risk. They are also known as a "high....
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K
A document which must be offered to investors in Non-UCITS Retail Schemes (NURS) before or at the po....
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L
The date on which a unit trust or similar collective investment scheme starts investing its assets.....
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Lipper, a Reuters company, supplys mutual fund information, analytical tools, and commentary. Lipper....
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M
Half-yearly fund accounting and investment report.....
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Market capitalisation is used to indicate the value of a company by multiplying the number of shares....
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A price between the offer and bid price. The mid price is equal to the sum of the best bid price and....
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The Committee is made up of economic experts and examines all the data available and relevant to dec....
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This is the process of passing money gained illegally through the financial system to convert into l....
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N
The total value of a company or fund, based on quoted mid-market prices, together with other assets ....
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Where a client has purchased a unit trust under advice from a professional adviser, the fund provide....
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O
OBSR are investment consultants based in the UK and offer ratings on the premise that a fund selecti....
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Now known as ICVCs (Investment Company with Variable Capital). These are very similar to unit trusts....
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The offer price is the price at which a company is looking to sell units. Usually higher than the ....
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These funds have no limit to the number of units (or shares) they can issue. The price of the units ....
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P
Personal Equity Plans are tax efficient savings and investment plans which were replaced by ISAs in ....
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A group of investments held across asset classes (stocks, bonds, real estate, gold) or within the sa....
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Buying more units when prices are low and fewer units when prices are high.....
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When a company applies for a listing of its securities which are to be offered to the public in the ....
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Q
Quartile rankings are a measure of how well a fund has performed against all other funds. The rankin....
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R
Rating agencies determine the issuer’s ability to meet their debt obligations to their investors. Ag....
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The Redemption Yield shows what the total return on a bond would be if held to its maturity date. It....
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The registrar is responsible for the administration of the share register, distributing shareholder ....
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Income allocations can be reinvested to purchase further units in the existing investment vehicle....
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The risk index is to set out RUTM's definition of risk for each fund. The ratings are determined by ....
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Used to describe the income investors get from their portfolio as a percentage of market value of th....
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These acronyms stand for Rathbone Unit Trust Management Limited....
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S
The Stock Exchange Daily Official List number to identify any security.....
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A measure of the risk adjusted return of an investment/portfolio. It is given by the excess return a....
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Offered to all investors in UCITS funds before the point of purchasing units/shares. This document ....
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In investment terms this is used to describe the difference between the buying and selling price, i.....
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An independent company with two main divisions: Micropal (now managed by Morningstar), which provide....
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T
A calculation of costs expressed as a percentage. TERs provide investors with a clearer picture of ....
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Responsible for overseeing the fund manager's activities in relation to a unit trust. Usually a lar....
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The rate at which securities within a fund are exchanged for other securities of the same class.....
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U
A fund or directive that can be marketed in all countries in the European Union. UCITS stands for ‘U....
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These are open-ended funds where private investors pool their money to be invested in a portfolio of....
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V
The name given to the time of day that unit trusts or OEICs are valued and then priced, (usually mid....
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A measure of risk. It shows the variability of returns over a 5 year period (where that length of hi....
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W
The percentage/share of a portfolio held in a single asset or sector compared with its benchmark/ano....
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Y
The amount of income generated by a fund's investments in relation to the price. Equity funds will q....
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