Glossary

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Tax wrapper
An extra layer surrounding an investment product, sheltering it from paying certain taxes. Such wrappers include pensions, ISAs and TESSAs.
Tied Agent
A type of financial adviser who can only sell products from one financial institution, such as an adviser in a High Street bank who only sells that bank's products.
Top-down investment
This approach describes an investment process that is dominated by the manager's perspective of the 'macro' economic situation. Individual stock selection is made based on firstly, the manager's perspective on the outlook for individual stock markets and/or market sectors. As an example, a top-down manager that does not favour the Banking sector, is unlikely to buy any banks shares at all.
Total assets
The total value of all assets held, less current liabilities (short term loans used for investment purposes are not deducted), before deducting prior charges, including listed investments at their fair value price and unlisted investments at directors' valuation. Income for the current financial year has been excluded. Revenue taken to reserves for the prior financial year is included in the total assets.
Total Expense Ratio (TER)
A Total Expense Ratio (TER) represents the drag on performance caused by all annual operating costs (including administration, trustee and audit fees), not just the basic annual management charge.
Total Return
The return on the share price or net asset value per share taking into account the rise and fall of share prices and the dividends paid to shareholders. Any dividends received by the shareholder are assumed to have been reinvested in additional shares (for share price total return) or the company's assets (for net asset value total return).
Total Return Performance
For AIC statistics purposes the return on an investment, including income from dividends, as well as appreciation or depreciation in the value of the security, over a given time period.
Tracker funds
Tracker funds aim to mirror the progress of a stock market index, e.g. the FTSE 100, by buying and selling shares in the same proportions as represented on the index. These are also sometimes called index (tracker) funds or passive managed funds.
Trade
A deal made on the London Stock Exchange, also referred to as a 'bargain'.
Treasury Shares
Companies are able to buy back their own shares to hold them "in treasury" ("treasury shares") for future disposal (see share buy-backs). This allows companies flexibility to manage their capital structures - i.e. rather than cancel shares which they have bought in through a share buy-back, they are able to hold these shares and then resell the treasury shares to the market. This is also an alternative to other types of transactions such as rights issues and placings of shares which often involve significant underwriting costs. Companies taking advantage of the treasury share regulation are not be able to hold 'in treasury' more than 10% of the aggregate nominal value of the issued share capital of the company. If the maximum is exceeded the company must dispose of or cancel the excess shares within twelve months. Details of shares held in treasury can be found on each companies profile page on this website. The number of shares in treasury is not included in the number of ordinary shares.
Trust deed
This document establishes the legal constitution, structure and organisation of a unit trust. The OEIC equivalent is known as an instrument of incorporation.
Trustee
Responsible for overseeing the fund manager's activities in relation to a unit trust. Usually a large bank, the trustee must be independent of the fund manager where the fund is authorised by the Financial Services Authority. It acts in the interests of the investors, owning the investments in the fund on their behalf. It also ensures the fund is invested according to its investment objectives and that the manager complies with the regulations. The OEIC equivalent is known as the depositary.