The amount a company charges to set up your investment portfolio.

Where a company exercises discipline and prudence in how much money it borrows, raises and spends, in order to deliver the best returns to its shareholders and ensure its long-term stability.

The distribution of income to unit holders of pooled funds in proportion to the number of units held.

A type of swap. The most common form of interest rate swap is where one party pays a fixed rate of interest in return for a floating rate.

The total range of investments from which a fund manager can pick - as defined by a fund's stated investment objective.

Funds which are managed with an objective of generating a positive return over rolling 12 month periods.

An absolute return investment strategy aims to deliver positive returns whatever the market does, rather than simply aiming to outperform a benchmark index.

Units in a collective investment scheme where any income is automatically reinvested into the scheme. See also income units.

An investment management approach where a manager aims to beat the market through research, analysis and their own judgement. See also Passive management.

To try to beat the returns of the benchmark the active investment manager must take different investment positions to the benchmark. Where positions are different, risks are also different. The risk that the manager takes relative to the risk of the benchmark is known as active risk. The higher the level of active risk, the greater the chance that [..]