Glossary of Financial Terms
We have included some of the main terms used in our reports to help clients understand the terminology.
Please feel free to contact us if you require help and additional support on the listed terms or a definition of any other term used.
ADVICE FEE
A one-off fee will be charged for recommending investments and ISAs based on your circumstances, goals, and risk profile. This fee also includes up to 30 minutes of discussion about our recommendations.
BOND
In investment terms, a security typically pays a fixed interest rate for a fixed term and can be issued by a government or a company. It is also known as a fixed-interest investment.
CAPITAL GAINS TAX
A personal tax payable on the profits made on an investment or other asset (e.g. the difference between the value when it is bought and when it is sold, net of costs).
CASH ISA
An individual savings account that holds savings deposits.
FINANCIAL CONDUCT AUTHORITY (FCA)
The chief financial regulator in the UK oversees the activities of banks, financial advisers, and product providers.
FINANCIAL OMBUDSMAN SERVICE
An independent service to which consumers can appeal if they believe poor advice or service from an FCA authorised firm has resulted in financial loss.
FUND FACTSHEET
A regular factsheet detailing an investment fund’s latest performance, its charges, underlying investment holdings, current strategy and the market outlook.
INDIVIDUAL SAVINGS ACCOUNT (ISA)
A tax-free investment wrapper that protects investments from income tax and capital gains tax liabilities.
INVESTMENT CHARGES
The charges payable on the investment funds held in your portfolio. These cover the cost to the fund manager of managing and administering the investment fund.
INVESTMENT PLATFORM
An online service that allows investments to be viewed and managed in one place.
INVESTMENT SUSTAINABILITY
A measure of the impact on society and the environment faced by an investment. Sustainability research considers how well companies manage such risks relative to their peers across similar business sectors and industries, ultimately to help assess their long-term business sustainability.
ISA CHARGE
An annual charge is charged for providing tax-free stocks and shares ISA wrapper to hold your investments. This fee goes to the ISA provider.
KEY INVESTOR INFORMATION DOCUMENT
A standardised document provides all the essential information about an investment fund, including its objectives and investment policy, charges, risk and reward profile and past performance, to help investors decide if it suits their investment goals.
ONGOING ADVICE CHARGE
An annual charge, paid in monthly instalments, to cover the cost of receiving ongoing support and reviews of your investment portfolio from us (optional).
PLATFORM CHARGE
An annual charge for an investment platform service that enables you to monitor and manage your investments easily and securely online. This fee goes to the platform provider.
RISK
The potential for an investment to fluctuate in value or lose money.
RISK PROFILE
An assessment of an investor’s attitude to, and capacity for, investment risk based on their circumstances and preferences.
SUSTAINABILITY PREFERENCES
An assessment of an investor’s preferences concerning a wide range of Environmental, Social and Governance factors and personal values with their investments.
