The return that an asset achieves over a period of time, relative to the investment itself. Annual management fee

A performance-evaluation tool used to analyse the abilities of portfolio or fund managers. Attribution analysis uncovers the impact of the manager's investment decisions with regard to overall investment policy, asset allocation, security selection and activity. B Benchmark

See gearing. Bottom-up stock selection

Also known as cash equivalents. A class of investments considered relatively low-risk because of their high liquidity, meaning they can be quickly converted into cash. Cash Equivalent

The price of a security at the end of the day's business in a financial market. Contrarian approach

Every official working day of the week, typically the days between Monday to Friday, not including public holidays. Debenture stocks

A Depositary and a Custodian both perform the same function of safekeeping of securities. A Depository also has legal ownership of the securities. Derivative instruments

The share price does not always reflect the underlying value of the share portfolio held by the investment trust. When the share price is lower than the underlying value of the share portfolio, the investment trust is referred to as trading at a discount to NAV (Net Asset Value). Diversification

The portion of company net profits paid out to shareholders. Downside

Also known as EV. The market value of a company if it were (hypothetically) to be taken over. It is calculated by adding its market capitalisation to its debt, minority interest, and preferred equity at market value, then subtracting its cash or cash equivalents. F Fixed interest