Glossary

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Entitled Redemption Value
The predetermined entitlement attributable to the share at wind-up. This is not a guaranteed amount.
Equities
Shares in a company (see also stocks and shares).
Equity exposure
Usually expressed in percentage form. This illustrates the proportion of a fund which is invested in stocks and shares (equities).
Exchange Traded Funds (ETFs)
ETFs are collective investment funds that compete with investment trusts and unit trusts for investors' money. In some ways they are conventional tracker funds, pooling the cash of a large number of investors and investing it in a basket of shares in companies that make up an index (e.g. members of the FTSE A All-Share). Like unit trusts, ETFs are open ended, which means new units can be issued in response to increased demand. This means they trade at a price close to the net asset value of the fund (i.e. the value of its investments).
Ethical funds
Also known as Socially Responsible Investments (SRIs). Ethical funds avoid investing in activities which may be harmful to society, such as tobacco production or child labour. Some funds also aim to actively invest in companies which promote ethical policies such as recycling.
Ex-dividend (xd)
For funds, the period between its accounting date and when it pays out its income. If you buy a unit trust in this period, you do not get the income, but if you sell, you do.
Exempt funds
Refers to funds that are only open to institutional investors and are exempt from paying capital gains tax, such as pension funds and charities.
Exit charge
Also know as a redemption charge, this is a charge taken by the managers of some funds when you sell units. In many cases, the charge will only be applied if you sell within, say, five years. Exit charges are usually applied instead of an initial charge.
Expected income yield
An estimate of the income that you might earn in the coming year if you bought units at the current price.
Expenses charged to capital
Expenses incurred by the fund can either be taken out of the income received by the fund or from the fund's capital. Charging expenses to capital will increase the amount that can be paid out to investors as distributions but will reduce the capital value of the fund.