Henderson Diversified Income | Investment Trusts |
- National Savings and Investment (NS and I) Products
These products, including premium bonds and cash ISAs, are available from the Post Office. They were created by the Government to provide a secure means of savings while providing the Exchequer with a source of funding.
- NAV Per Share
Simply the NAV per share is the available shareholders funds divided by the number of shares in issue.
Shareholder funds are the net value of all the company's assets, cash and other net current assets, having deducted all debt, including bank loans, at their fair value and taking into account whether the company has outstanding convertible loan stocks, warrants, options and treasury shares.
The calculation assumes that holders of convertibles have converted, warrants and options have exercised and treasury shares are re-issued at the mid-market price, if dilution would occur i.e. if the NAV per share is higher than the price each of these shares or securities could be 'exercised'. This is known as diluted shareholders funds or the diluted NAV.
(Valuing shares held in treasury, on a mid price basis, when shares are trading at a discount, may differ from the actual discount re-issuance policies of individual companies).
Revenue items for the current financial year are excluded.
Prior charges can be deducted at their par (nominal value) or at their fair value (also known as market value).
The NAV per share, with debt deducted at fair value, is used to calculate the discount.
The NAV per share, with debt deducted at par, is used to calculate the NAV performance data.
- Net asset value (NAV)
NAV is the value of a company's assets less the value of its liabilities.
- NAV Total Return
This measures the performance of shareholders' funds per share and, thus, assesses the management of the company. It is a theoretical total return on shareholders' funds per share, reflecting the change in NAV assuming that net dividends paid to shareholders were reinvested in the net assets.
- NAV total return performance
The theoretical total return on shareholders' funds per share, including the assumed ?100 original investment at the beginning of the period specified, reflecting the change in net asset value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.
- NAV capital performance
The theoretical capital return on shareholders' funds per share, including the assumed ?100 original investment at the beginning of the period specified, reflecting the change in the net asset value (NAV). A simple measure of NAV at the end of the period compared with NAV at the beginning of the period.
- Net income
Dividends and interest paid out after income tax has been deducted.
- New issue
The offer to the public, via a prospectus, of shares or loan capital in a company.
- Nominee Accounts
When buying shares in an investment trust, you may hold the shares in your chosen trust in your own name, in which case you may be issued with share certificates; or they are held for you by the broker or manager on a "nominee basis". Nominee accounts can be a far easier way to hold shares as they avoid some of the paperwork associated with more traditional ways of buying shares. You may, however, lose some of the advantages of holding shares in your own name, such as being sent the report and accounts directly (you may wish to clarify these details with the provider/management group). If you buy shares via a wrapper product, the chances are your shares will be held in a nominee account.
- Nominee Company
A company formed by a bank or other organisation for the purpose of holding shares on behalf of the beneficial owner. Nominee company employees carry out all the paperwork and other tasks associated with the documentation of shareholding and arrange for necessary transfers when a share is purchased or sold.
- Non-investment grade bonds
These bonds have a high risk of the company that issued the bonds being unable to repay them. They are lower rated bonds on the share index, with a poor credit rating often as low as D. They are sometimes referred to as 'junk bonds'.