Website Glossary

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A

Accumulation units/shares

With this type of *unit*/*share* any *income* earned on your investment remains accumulated within the price of your units/shares, increasing the value of your holding.

Active managed funds

Funds which aim to outperform a *benchmark index*, such as the *FTSE 100*. The aim is for the *fund manager* to invest the fund’s *assets* in such a way that the fund will generate better *returns* than its benchmark.

Authorised Corporate Director (ACD)

The term used to describe the manager of an *OEIC* fund. An ACD has the same role and responsibilities as their *unit trust* equivalents, known as a *fund manager*.

Annual management charge (AMC)

A fee paid to the *fund manager* once a year which covers the cost of investment management and administration. It is normally 0.75% - 1.5% p.a. and is charged to the fund. The AMC forms part of the total expense ratio (*TER*) of a fund.

Annual Report

Includes details of the fund's investments and how it has performed with more general financial information relating to the fund. It is available from your *fund manager* at the end of each financial year.  See also "*Short Report*".

Assets

The “building blocks” in which a fund invests, for example *stocks and shares*, *cash*, *fixed interest securities* and *property funds*.

Asset allocation

A term to describe how your money is invested. In most cases, the *fund manager* will spread money across a range of different *assets* and companies in order to diversify your holdings and help to spread *risk*.

Authorised investment fund

A *unit trust* or *OEIC* that is regulated by the *Financial Services Authority* (FSA) for promotion to the general public in the UK. All unit trusts and OEICs which are on sale to a retail investor in the UK are authorised by the FSA.