Glossary

The name of either the fund management house or fund promoter/sponsor.

Proportion of the value of futures contracts that must be supplied by both buyers and sellers. It is recalculated daily.

The total value of a company's stock.

A variety of indices that give an indication of the overall direction and strength of the market.

Expiry of the term of a contract.

The value mid way between the selling (bid) price and the buying (offer) price of shares.

Short-term security or investment, such as a Gilt, Treasury Bill or Cash Deposit, with a maturity of 365 days or less.

US term for a collective investment scheme.

National Association of Securities Dealer Automated Quotations system, designed to facilitate over-the-counter stock trading.

The value of a collective investment fund based on the market price of securities held in its portfolio. Units in open ended funds are valued using this measure. Closed ended investment trusts have a net asset value but have a separate market value. NAV p!

No initial charge on a collective investment scheme. Costs which would normally form part of the initial charge are often covered by a back end charge or a higher than normal annual charge. Very popular in the US and becoming more common in the UK.

Actual rate of interest paid that comprises the real rate plus inflation.

A company that acts as the registered owner of securities, but looks after them on trust for a beneficial owner e.g. a private individual who wishes to remain anonymous might buy or sell shares using a nominee company.

Open Ended Investment Companies. A UK open-ended fund (see Funds open-ended) which is structured as a company rather than as a unit trust. They were launched in the UK in 1997.

The price at which units may be bought.

The number of units in this type of fund can be increased or decreased to satisfy the demand of buyers or sellers. Unit trusts and open-ended investment companies are examples of open-ended funds.

An option gives the right but not the obligation to buy or sell an underlying commodity or financial instrument by or at a certain date in the future. An option is a derivative.

Shares that carry full voting rights and dividend entitlements.

The date the shares from a split or dividend are sent to the shareholders.

Provider of pensions.

This is when a merchant bank or broker advising a company arranges for other institutions or individuals to buy that company's shares at a fixed price. The advantage of this is that placing the shares for the company then cuts out the broker (i.e. the mid3

As indicated by its name, a pooled fund pools investors' money and invests in a portfolio of shares, bonds and cash. The type of securities held by a fund is governed by the fund's investment objective.

The combination or spread of investments held by an investor or by a fund.

The share price of a company divided by its earnings per share, i.e. if Tim Brown Co has earnings per share of 45.5p and the market price is 400p , the shares have a P/E ratio of 8.8 (400 / 45.5p). Another common way of expressing the P/E ratio is: 'the s3

Initial launch of a company's shares when they first become available for a trading on the Stock Market.

The amount of money that is financed, borrowed or invested.

Option providing its holder with the right to sell an investment at or by a future date but at a price agreed now.

Fund rankings broken down into four sections, each of 25%. For example, in a sector of 12 funds, the top three performing funds would be classed as first quartile, the bottom three as fourth quartile, etc.

Amount of the nominal rate of interest that exceeds inflation.

An instruction to sell (redeem) a holding in a fund.

The total annualised return on owning a fixed interest security, made up of income plus any gain or minus any loss to redemption.

Those trusts that can be marketed freely in the UK. Any Regulated Unit Trusts based in the UK is authorised by the FSA whereas overseas trusts are recognised by the FSA.

Ownership of BlackRock Global Funds registered shares is documented on a Fund's share register - the investor does not receive a share certificate.

The person responsible for maintaining a company's share register which involves keeping the list of shareholders accurate. Unit trusts can also use a registrar to issue trust certificates and send out distributions of income earned on the unit trusts.

Income from a fund that is used to increase the value of the holding rather than being paid out.

Low-risk funds investing in short-dated bonds and cash.

The amount by which an investment may change due to a combination of capital growth and/or interest dividend income. This is normally expressed as a percentage.

Further issue of shares by an existing company to raise funds. Shares are offered to existing shareholders who can sell the right on to other people.

The relationship between an investment's growth potential and its exposure to loss.