Glossary

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Accumulation units/shares
With this type of unit/share any income earned remains accumulated within the price of your unit/share, instead of being paid out as a dividend.
Active managed funds
Active managed funds try to outperform a benchmark index such as the FTSE 100. The aim is for the fund manager to manage the fund's investments in such a way that the fund will generate better returns than you might receive in a passive managed fund.
AIC - www.theaic.co.uk
The Association of Investment Companies (AIC) is the trade organisation for the closed-ended investment company industry. We represent a broad range of closed-ended investment companies, incorporating investment trusts, offshore closed-ended investment companies, venture capital trusts (VCTs), AIM traded investment companies and a Euronext company.
Alternative Investment Market (AIM)
The London Stock Exchange's international market for young and growing companies.
Announcement Date
The date that company dividend details are released to the London Stock Exchange.
Annual General Meeting (AGM)
An annual meeting called by directors of a company that allow shareholders to stay involved with company decisions.
Annual management charge (AMC)
A fee paid to the fund manager covering the investment management and administration costs. The AMC is normally around 0.75% - 1.5% per year, and is taken directly from the fund.
Annual Report
Provides investors with details of how the company has performed in the past twelve months, as well as listing its investments and objectives. The report is sent to investors at the end of each financial year.
Approved Investment Trust Company
An investment trust company that satisfies the requirements of Section 842 of the Income and Corporation Taxes Act 1988, as set out by the Inland Revenue. Approved trusts do pay tax on the capital gains they realise from sales of investments within their own portfolios.
Assets
When applied to investment trusts, asset refers to equities, bonds and cash. The underlying assets of an investment trust will vary depending on the company's objective.
Asset allocation
Describes how your investment is divided into various asset classes - including equities, bonds and cash - and different markets in order to reduce risk, increase diversity and generate investment opportunities.
Asset backed securities
A bond secured against a specific pool of assets, such as credit card receivables, corporate loans or mortgages and collateralised by the future cash flows derived from this specific pool of assets.
Authorised Corporate Director (ACD)
The term used to denote the manager of an OEIC fund. An ACD has the same role and responsibilities as a unit trust fund manager.
Authorised fund
A unit trust or OEIC authorised by the Financial Services Authority (FSA) for promotion to the general public in the UK. All unit trusts and OEICs that are available to UK retail investors must be authorised by the FSA.