Explanation

See Asset-backed security

A measure of the gain or loss on an investment portfolio or security expressed as a percentage of invested capital. Absolute return differs from relative return because it looks at the return of a particular asset in isolation and does not measure it against a benchmark.

Aim to achieve positive returns across all stock market conditions, regardless of whether prices are rising or falling. In managing such a strategy, investment managers employ a range of techniques including the short–selling of securities and the use of derivatives.

A policy of increasing the money supply in an economy in order to lower interest rates so that they reach a level which stimulates borrowing and economic growth.

Companies are accountable to their owners (shareholders). In addition, companies that are providers of financial services in the UK are subject to authorisation and regulation by either the Financial Conduct Authority (FCA), Prudential Regulation Authority or both authorities.

Interest that has accumulated, and is recognised from an accounting perspective, since the last coupon payment of a bond.

Units or shares where the net income from dividend payments is re-invested rather than distributed to unitholders/shareholders.

Where a fund manager seeks to enhance returns through effective stock selection, asset allocation and currency selection decisions.

The additional return that is delivered by a fund manager’s skill, knowledge and expertise.