The dates when accounts of an investment fund are finalised. The level of income from a fund is calculated for distribution to shareholders or for accumulation at that time.
Shares where the income from a fund is reinvested back into the fund rather than being distributed to shareholders. This increases the share price.
A fee charged for the day-to-day management of a fund based on a percentage of a fund's value.
Different types of assets that can be invested in. There are four main types: Equities, Bonds, Property and Cash. Other asset types include commodities or hedge funds.
The difference between the offer price and the bid price.
In Collective Investment Schemes, the price that the investment house will buy units from investors on encashment. Also applies to sale of shares.
A loan issued by a company or government. During the life of the bond, the bondholder usually receives regular interest payments based on the coupon rate. During their life, bonds can fluctuate in price. On maturity, the loan is repaid at face value, so a capital gain or loss may result.
A general term for unit trusts, OEICs, investment funds and investment trusts.
A bond issued by a corporation to an investor as a means of raising money. A fixed interest 'coupon' is paid to the bond holder.
Investments whose value depends on the changes in an underlying asset or security. The contract is based on a number of predictions in time or price in the future, but the stock is not physically held during the period of the contract.
Shares where the income generated by a fund can be paid to investors rather than accumulated. This income is known as the Distribution.
A payment made by companies to their ordinary shareholders, generally based on their level of profits. Dividend payments are not guaranteed. Where shares are held indirectly via investment funds, dividends are paid to investors via the Distribution.
For unit trusts. Where units are sold at the Bid Price, and purchased at the Offer Price.
Corporate shares that give ownership interests to holders, including rights to vote and receive share dividends. Different types of equity shares exist giving different rights and obligations.
Gilts is an abbreviated name for fixed interest securities, such as gilt edged securities or index linked securities. These are essentially fixed interest investments issued by the UK Government.
A transaction that involves derivatives, which aims to reduce a particular financial risk, for example currency risk.
A fee charged on the purchase of shares or units in a fund based on the value of the initial investment.
Bonds issued by a company with a higher credit rating, and which are therefore considered more secure.
A Type of Collective Investment where shares are bought in a company, which itself invests in the shares of other companies.
Short for Open Ended Investment Company. A type of collective investment that offers indirect investment in securities and other assets. Individual Investments are pooled with other investors in the fund. The fund manager will use this money to buy investments, for example stocks and shares, in line with the objectives of that fund. The value of units in the fund relates directly to the underlying value of these investments. OEICs are Single Priced.
The price at which investors buy units in an unit trust, or shares.
Investments,, such as shares or bonds, issued by companies, governments or other organisations that offer evidence of debt or equity.
For OEICS. Units in the fund are purchased and sold at the same price.
A tax on share purchases by individuals or fund managers. Up to 0.5% SDRT is charged on transactions in shares in a fund rather than it being charged to the individual investor. SDRT is only payable on funds that invest in UK shares
These tend to be issued by a company that has a lower credit rating and so have a greater possibility of failing to make their repayments (those with the lowest rating may be referred to as Junk Bonds)
A type of Collective Investment scheme where investors purchase units in the unit trust fund. Each unit is an equal share of the value of the fund. The number of units can fluctuate and funds can be Dual Priced.
The measure of how an asset's price changes over time. It is generally a measure to assess risk. The more volatile a fund is, the higher the investment risk involved. Certain types of fund will be more volatile than others; for example, emerging markets funds or funds investing in small companies.
The measure of how an asset's price changes over time. Generally a measure to assess risk. The more volatile a fund is, the higher the investment risk involved. Certain types of fund will be more volatile than others, e.g. emerging markets funds or funds investing in small companies.
A measure of return from interest or dividend income expressed as a percentage of an asset's price. If a bond is bought at a low price, its yield will be higher.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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