G
Gilt (Gilt Edged Security) - A fixed-interest
bond or security issued by the British Government.
GPP (Group Personal Pension) - An arrangement
made for employees of a particular employer to participate
in a personal pension scheme on a group basis.
H
Hedging - A strategy designed to offset investment
risk.
I
IFA - Independent Financial Adviser - A professional
financial expert who must by law give impartial "best advice" on
financial companies, markets and products. IFAs are completely
independent and can recommend the products of any company.
IMRO - Investment Management Regulatory Organisation,
the body that regulates the management of unit trusts.
Income Drawdown - Facility by which you can
draw an income from your pension fund while keeping the rest
fully invested until the age of 75 at the latest.
Income Tax - Tax payable if you have income
above the minimum level taxable in the UK.
Index - The means of measuring movement of
statistics over a period of time used as a benchmark by unit
trust managers.
Index-linked - Payments protected against
the effects of inflation by increasing in line with the changes
in the index of retail prices.
Inflation - The amount in percentage terms
by which prices rise or fall year on year.
Inheritance Tax - Tax payable after you die
on the value of your assets in excess of a certain threshold
value (£242,000 at August 2001) although gifts between
husband and wife are exempt. It is also chargeable in certain
circumstances while you are still alive.
Initial Charge - A charge levied by your
investment manager to cover administration and sales commission
when you invest in a fund.
Interest-only Mortgage - A mortgage product
where you make a monthly interest payment and rely on the a
savings plan or other monies to pay off the capital at the
end of the mortgage term.
Investment Trust - A company, quoted on the
Stock Exchange which invests in other companies' shares.
ISA - Individual Savings Account - Tax-efficient
savings plans which can hold cash, shares or life assurance,
or a combination of all three elements, which were introduced
in 1999 to replace TESSAs and PEPs.
J
Joint life - Joint life plans cover two (or
more) people, usually a husband and wife. Benefits can be paid
following the first death, or following the death of both.
K
Keyman insurance - This provides cover, in
the short term, against the loss of profits a company is likely
to suffer following the death of a key employee.
L
Liability - A debt, or amount of money, owed
to others.
Listed company - A company whose shares are
quoted on a recognised stock market. |
