Main Menu

Glossary

Information for LifeStages advisers and their clients

A
B
C
D
E
F
G
H
I
L
M
N
O
P
Q
R
S
T
U
V
W
Y
Z

A

Absolute return
An investment, group of investments or fund aimed at providing a positive return in all market conditions over a period of time. It can also mean the rise or fall in the value of an asset over a particular period of time, expressed as a percentage.
Active management
An approach to investing whereby a fund manager invests according to their judgement. The active investor aims to beat the returns from an asset class, such as company shares or bonds, or specified benchmark index/sector, rather than to match them.
Accumulation shares
A fund may have accumulation and income shares. If an investor selects this share type, any income generated by the fund is automatically reinvested. The amount of the reinvested income is reflected in the increased price of each accumulation share.
Alpha

The excess return of an asset or fund relative to the return of its benchmark. It is often considered to represent the value that a fund manager adds to or subtracts from a fund’s return.

Alternative investments / assets
Typically investments other than the more traditional company shares or bonds which could include, for example, commodities (such as gold), infrastructure, private equity, real estate, and hedge funds. Alternative investments can be useful to help with diversification, as some of them are not expected to perform in the same way as more traditional investments.
Annual management charge (AMC)
The yearly fee paid to Premier Miton for managing a fund, expressed as a percentage of your investment. The AMC does not typically change from year to year.
Assets
Different groups of investments such as company shares, bonds, commodities or property.
Asset-backed bonds
A bond collateralised by a pool of assets such as mortgages or consumer loans.
Authorised Corporate Directors (ACDs)

Authorised Corporate Directors (ACDs) are responsible for the running of an investment fund. They have a duty to act in the best interests of the fund’s investors, and ensure that the fund is well managed in line with regulations and with the investment objectives and policies set out in its prospectus.

B

Bear market
A term that is used to describe a significant fall, usually of more than 20%, in a financial market or asset.
Beta
The measure of the volatility of a security or portfolio compared to the market, which it is a part of.
Bonds (or fixed income)
Types of investments that allow investors to loan money to governments and companies, usually in return for a regular fixed level of interest until the bond’s maturity date, plus the return of the original value of the bond at the maturity date. The price of bonds will vary and the investment terms of bonds will also vary.
Bond yield
This is calculated by taking the level of interest paid by the bond, divided by the price of the bond, expressed as a percentage. As the price rises, the yield falls and vice versa.
Bottom-up selection
Selecting companies (stocks or bonds) in which to invest based on the attractiveness of the key characteristics of companies, such as earnings growth or dividends.
Bull market
A term that is used to describe a significant rise, usually of 20% or more, in a financial market or asset

C

Call options
A type of derivative. Call options can be used for a number of reasons such as generating income or to gain exposure to an asset. They give the buyer the right, but not the obligation, to buy underlying shares at a pre-agreed price, (the strike price), on a specific date in the future (the expiry date). The seller (writer) of the option has an obligation to sell the underlying shares at the strike price if the option is exercised.
Capital
Describes financial assets, particularly cash, or other assets, such as shares, owned by a person or organisation.
Capital Expenditure (CapEx)
Money invested by a company to acquire, upgrade, and maintain physical assets such as property, land, technology, or equipment.
Capital growth
The increase in the value of an asset or investment over time, measured by its current value compared to its purchase cost.
Capital return
Capital return is a payment, or return, received from an investment that is not considered a taxable event and is not taxed as income.
Cash Compounders
These are companies that typically have durable businesses, whose products or services have consistent demand and are in a strong financial position.
Certificate of deposit
Typically these are low risk investments that offer a fixed interest rate for a fixed amount of time and are usually offered by banks.
Closed-ended funds
A portfolio of pooled assets that raises a fixed amount of capital through an initial public offering (IPO) and then lists shares for trade on a stock exchange.
Collective Investment Schemes
A generic term for investment funds with more than one investor, such as unit trusts, Open Ended Investment Schemes (OEICs) and investment trusts.
Compounding
The process in which a company’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.
Compound return
The rate of return, usually expressed as a percentage that represents the cumulative effect that a series of gains or losses has on an original amount of capital over a period of time, expressed in annualised terms.
Commercial paper
A form of short term borrowing by a company which pays a fixed rate of interest and which is repaid on a set date.
Commodities
These are natural resources such as gold, oil, gas, metals or agricultural products that have practical uses and can be bought and sold on financial markets.
Convertible bonds
A type of bond that the holder can convert into shares of the issuing company in certain circumstances.
Contingent convertible bonds (CoCos)
A form of debt security usually issued by a financial institution that can either convert into equity or have the principal value written down, resulting from certain events relating to regulatory requirements.
Correlation
A statistical measure that indicates the extent to which two or more variables fluctuate together. For example, this usually refers to the level of correlation of two or more asset prices. If the correlation is high, the prices behave similarly.
Credit market
The market through which companies and governments issue debt to investors, such as investment grade (higher quality) and non-investment grade (lower quality) bonds and other fixed income securities.
Credit rating
A rating or score awarded by an independent agency, to indicate the financial strength of the issuer of a bond, and the potential for a default on payments. Bonds issued and backed by developed market governments are generally considered to have the highest rating. As the financial strength or quality of the issuing entity diminishes, so does the credit rating. Higher quality bonds are considered investment grade. Lower rated bonds may be considered to be ‘sub-investment grade’ or ‘high yield’. Not all bonds are rated and these are ‘non rated bonds’ which may vary in quality.
Credit rating agencies
Independent agencies that assign credit ratings to governments, companies and other institutions. Each agency has its own rating methodology and rating or scoring system.
Credit risk
The risk of loss to a lender when a borrower is unable to make the required payments to repay a loan for example.
Credit spread
The difference in yield between two different bonds, usually a corporate bond and the government bond, with a similar date of repayment. It is typically used to describe the additional risk of owning a corporate bond.
Credit strategies
Different approaches to investing in bonds or bond like assets.
Cyclical stocks
A company whose business follows the economic cycle of expansion and recession, for example, restaurants, hotel chains, airlines and car manufacturers. These types of business typically benefit from economic expansion when their products and services are more in demand, but can experience declining sales and profits during recessions and other challenging economic conditions.

D

Defensive barrier
A level that the underlying index of a structured investment needs to be above for it to mature and pay its predefined return on its annual anniversary.
Defensive autocall
A type of structured investment that has the potential to mature early if the underlying index that it is linked to reaches a specified level on the date of its anniversary.
Defensive stocks
A company whose products or services are typically in continual demand regardless of the changes in the economic environment, such as utility companies, healthcare companies and supermarkets.
Deposit
An amount of money placed with a bank or other financial institution; these may take different forms and have different names, such as certificate of deposit. Deposits may pay fixed or variable rates of interest and may have set maturity dates.
Derivative
A financial contract whose value is based on the change in price of a specific asset or index.
Discount

The shares of investment trusts can have a price below the value of their net assets, this difference is known as the discount. The shares can also be at a premium to their net assets.

Dividends
The portion of its capital that a company chooses to return to its shareholders. For a fund or trust, this is the payment of fund’s income to its shareholders.
Dividend yield
The dividend paid by a company or a fund in the previous 12 months, divided by the share price, expressed as a percentage. If the share prices falls, the yield will rise and vice versa.
Diversification
Investing in a number of different investments, which can include different assets, funds and geographic areas, to help spread investment risk.
Duration
A measure of the price sensitivity of a fixed income investment to a change in interest rates.
Duration times spread (DTS)
A measure of the price sensitivity of a bond to duration and credit spread risks. Duration is a measure of the price sensitivity to a change in interest rates and credit spread is the additional yield of a bond over the equivalent government bond. DTS is calculated by multiplying the duration by the credit spread. The weighted average for the fund can then be calculated.

E

Earnings Per Share (EPS)
Calculated as a company’s profit divided by the number of shares that are in issue and is an indicator of a company’s profitability.
Emerging markets
Countries with less developed financial markets and which are generally considered riskier than investing in developed markets.
Emerging market debt
Bonds issued by less developed countries’ governments and companies within those countries.
Equities
Another name for shares (or stock) in a company.
Exchange Traded Commodities (ETCs)
These are investment vehicles, traded on an exchange, that track the performance of an underlying commodity or commodity index.
Exchange Traded Funds (ETF)
A collective investment scheme listed on a stock market that invests in a range of assets that usually replicate an index of stocks, bonds or other investments.

F

Floating rate bond
Bonds which do not pay a fixed rate of interest.
FTSE 100 Put Option
A type of derivative contract in which the underlying value is based on the level of the FTSE 100 index which tracks the performance of the top 100 largest companies by market value listed on the London Stock Exchange. Such contracts can be used to protect the value of an underlying investment or group of investments against a fall in the value of those 100 largest companies and can be thought of as an insurance policy.
Frontier Markets
A country that is more established than the least developed countries but still less established than the emerging markets because it is too small, carries too much inherent risk, or is too illiquid to be considered an emerging market. Frontier markets are also known as “pre-emerging markets”.
Futures
These are financial contracts that obligate the parties to transact an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date. Futures can be traded up until their expiry date on futures markets.

G

Gearing
The level of a company’s debt in relation to its capital. A company with significant debt compared to its capital is considered to be highly geared.
Government bonds
A type of bond, issued by a government. They pay out a regular fixed amount of interest until the bond’s maturity date, when the issue value of the bond should also be repaid. In the UK they are called gilts and in the US they are referred to as treasuries.
GPR 250 Europe Capped Index (GBP Hedged)

This index is composed of the most liquid property companies and real estate investment trusts in Europe with single constituents capped at 10% and the currency exposure hedged to GBP.

Growth stocks/companies
Typically those companies whose profits are less sensitive to economic activity and can grow profits and generate cash at a rate above the average growth for companies listed on the stock market and through different economic conditions; they usually operate in faster growing industries such as technology or healthcare.

H

Hedge
An investment which aims to mitigate the effect of adverse price movements in an asset or group of assets
Hedge fund
A portfolio of investments that uses advanced investment strategies. Hedge funds range from low risk to very high risk and are usually not regulated. Investing in hedge funds is usually only suitable for sophisticated, experienced investors.
High yield or Non-investment grade or Sub-investment grade bonds
Bonds that are expected to have a higher risk of defaulting on interest payments or repayment of the issue value on maturity and receive lower ratings from credit rating agencies.

I

Investment Association (IA)
The trade association that represents investment management firms in the UK.
IA sectors
To help with comparisons between the thousands of funds available, funds are categorised into different groups or sectors, organised and reviewed by the Investment Association (IA).
IA Europe excluding UK
Funds which invest at least 80% of their assets in European equities and exclude UK securities.
IA Flexible Investment sector

The funds in this sector are expected to have a range of different investments. However, the fund manager has significant flexibility over what to invest in. There is no minimum or maximum requirement for investment in company shares (equities) and there is scope for funds to have a high proportion of shares. The manager is accorded a significant degree of discretion over asset allocation and is allowed to invest up to 100% in equities at their discretion.

  • No minimum equity requirement
  • No minimum fixed income or cash requirement
IA Global sector
Funds which invest at least 80% of their assets globally in equities. Funds must be diversified by geographic region.
IA Global Equity Income sector
Funds which invest at least 80% of their assets globally in equities. Funds must be diversified by geographical region and intend to achieve a historic yield on the distributable income in excess of 110% of the MSCI World Index yield at the fund’s year end. Income shares: if you select this type of share, any income made by the fund is paid out to you.
IA Global Emerging Markets sector

Funds which invest 80% or more of their assets in equities from emerging market countries as defined by the relevant FTSE or MSCI Emerging Markets and Frontier indices. The maximum frontier equity exposure is restricted to 20% of the total fund.

IA Infrastructure
Funds that invest at least 80% of their assets (directly or indirectly) in companies involved in the ownership, operation or maintenance of infrastructure assets (including but not limited to: utilities, energy, transport, health, education, security, communications).
IA Mixed Investment 0-35% Shares sector

Funds in this sector are required to have a range of different investments. Up to 35% of the fund can be invested in company shares (equities). At least 45% of the fund must be in fixed income investments (for example, corporate and government bonds) and/or “cash” investments. “Cash” can include investments such as current account cash, short-term fixed income investments and certificates of deposit.

  • Maximum 35% equity exposure (including convertibles)
  • No minimum equity requirement
  • Minimum 45% investment grade fixed income and cash
  • Minimum 80% investment in established market currencies (US Dollar, Sterling & Euro) of which 40% must be Sterling
  • Sterling requirement includes assets hedged back to Sterling
IA Mixed Investment 20-60% Shares sector

Funds in this sector are expected to have a range of different investments. The fund must have between 20% and 60% invested in company shares (equities). At least 30% of the fund must be in fixed income investments (for example, corporate and Government bonds) and/or “cash” investments. “Cash” can include investments such as current account cash, short-term fixed income investments and certificates of deposit.

  • Maximum 60% equity exposure (including convertibles)
  • Minimum 20% equity exposure
  • Minimum 30% fixed income and cash
  • Minimum 60% investment in established market currencies (US Dollar, Sterling & Euro) of which 30% must be Sterling
  • Sterling requirement includes assets hedged back to Sterling
IA Mixed Investment 40-85% Shares sector

Funds in this sector are expected to have a range of different investments. However, there is scope for funds to have a high proportion in company shares (equities). A fund must have between 40% and 85% invested in company shares.

  • Maximum 85% equity exposure (including convertibles)
  • Minimum 40% equity exposure
  • No minimum fixed income or cash requirement
  • Minimum 50% investment in established market currencies (US Dollar, Sterling & Euro) of which 25% must be Sterling
  • Sterling requirement includes assets hedged back to Sterling
IA North America

Funds which invest at least 80% of their assets in North American equities.

IA North American Smaller Companies sector

Funds which invest at least 80% of their assets in North American equities of companies which form the bottom 20% by market capitalisation.

IA Sterling Corporate Bond sector
Funds which invest at least 80% of their assets in Sterling denominated (or hedged back to Sterling) BBB minus or above corporate bond securities (as measured by Standard & Poors or an equivalent external rating agency). This excludes convertibles, preference shares and permanent interest bearing shares (PIBs).
IA Sterling Strategic Bond sector
Funds which invest at least 80% of their assets in Sterling denominated (or hedged back to Sterling) fixed interest securities. This excludes convertibles, preference shares and permanent interest bearing shares (PIBs).
IA UK All Companies sector
Funds which invest at least 80% of their assets in UK equities which have a primary objective of achieving capital growth.
IA UK Smaller Companies
Funds which invest at least 80% of their assets in UK equities of companies which form the bottom 10% by market capitalisation.
IA UK Equity Income sector
Funds which invest at least 80% in UK equities and which intend to achieve a historic yield on the distributable income in excess of 100% of the FTSE All Share yield at the fund’s year end on a 3 year rolling basis and 90% on an annual basis.
IA Specialist sector
Funds that have an investment universe that is not accommodated by the mainstream sectors. Performance ranking of funds within the sector as a whole is inappropriate, given the diverse nature of its constituents.
IA Standard Money Market sector
Funds which invest their assets in money market instruments and comply with the definition of a ‘Money Market’ fund set out in the COLL Sourcebook.
Income shares
A fund may have accumulation and income shares. If an investor selects this share type, any income generated by the fund is paid out to the investor.
Index
An index is a method of tracking the performance of a group of shares, bonds, other assets or factors. For example, the FTSE 100 Index is made up of the 100 largest companies on the London Stock Exchange.
Inflation

An increase in the general price level of goods and services in an economy

Infrastructure companies
These are typically companies involved in the movement and storage of goods, people, water, energy and include regulated utilities, telecommunications and transport companies
Investment grade bond
Bonds that are expected to have a lower risk of defaulting on interest payments or repayment of the issue value on maturity and receive higher ratings from credit rating agencies.
Initial Public Offering (IPO)

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors.

Investment Trusts
A type of tax-free scheme, set up by the government, designed to help people make the most of their savings and investments. All income and gains from an ISA investment are exempt from UK Income Tax and Capital Gains Tax. HM Revenue and Customs sets the maximum amounts that you are allowed to invest into an ISA each tax year.
Individual Savings Account (ISA)

A wrapper in which you can place your savings and investments to protect them from some forms of taxation. There are different types of ISA. All of Premier Miton’s funds are available for investing in an ISA. HM Revenue & Customs set the amount that you are allowed to invest into an ISA in each tax year. Further details about ISAs, including the current ISA investment limits, can be found on the Government website www.gov.uk/individual-savings-accounts

Issuer
A legal entity (such as a company or government) that sells securities to finance its operations.

L

Leverage
Where a company borrows money to invest in its business or assets in the expectation that the profit made will be greater than cost of the borrowings. It can also occur when a company cannot generate sufficient revenue to meet its costs. Leverage can be introduced to funds through the use of derivatives or borrowing.
LIBOR
London Interbank Offered Rate (LIBOR) is the interest rate benchmarks used to calculate the average rate at which banks would offer a short term loan to each other. LIBOR has been replaced by SONIA
Liquidity
Refers to how easily an asset can be bought or sold in a financial market. When there is high liquidity, it will be easier to find a buyer (or seller) for that asset and vice versa.
Listed company
A company whose shares are traded on a stock exchange.
Long / short fund
A fund that aims to benefit from the increase in value and decrease in value in the assets held in the portfolio, often with little overall market directional risk.

M

Macroeconomic
The overall economy of a country or region. Macroeconomic factors include; inflation, interest rates, unemployment and gross domestic product, amongst many others. These are used to describe the health of an economy and will effect financial markets.
Market capitalisation
The total value of the shares of a company, often referred to as ‘market cap’. For example, large companies are referred to as ‘large cap’, medium sized companies as ‘mid-cap’ and small companies a as ‘small cap’.
Market neutral
Seeking to profit from both increasing and decreasing prices of specific assets or groups of assets, whilst attempting to avoid the impact of movements in the overall market.
Maturity
The set date on which a bond or similar loan will be repaid by the borrower.
Maturity profile (of a fund)
Where a fund invests in a range of bonds with different maturity dates (on which the bond will be repaid), the maturity profile reflects the overall length of time until the bonds held in the fund will mature. For example, the maturity profile could be described as “short dated”. The maturity profile will change over time, subject to the fund manager’s views and market conditions.
Money markets
Buying and selling of debt, loans and similar investments which are usually repayable within one year.
Multi-asset
A fund that invests across a combination of different asset classes, such as commercial property, company shares, bonds and alternative investments with the aim of increasing diversification and reducing risk, and achieving specific investment objectives such as paying an income

N

Net Asset Value (NAV)
The total of a company’s assets minus its liabilities. The net asset value per share is the total of a company’s assets minus its liabilities divided by the number of shares in issue.
Non-investment grade or High yield or Sub-investment grade bonds
Bonds that are expected to have a higher risk of defaulting on interest payments or repayment of the issue value on maturity and receive lower ratings from credit rating agencies.

O

Ongoing Charges Figure (OCF)
A measure of what it costs to invest in a fund over a year. It includes the fee paid to Premier Miton for the management of the fund (known as the annual management charge), with the remainder covering costs that have to be paid to external companies for other services relating to the ongoing administration and management of a fund, such as the fees paid to the depositary, custodian, regulator, auditor and administrator. The fee is deducted from the value of the fund and reflected in the fund’s share price. The OCF is typically calculated once a year and can change from year to year.
Open ended funds
A diversified portfolio of pooled investor money that can issue an unlimited number of shares. These shares are priced daily based on their current net asset value (NAV).
Ordinary shares
Also called common shares, these are issued by companies. Each share means that the holder owns a part of the company and it gives the right to vote at company shareholder meetings. This is same for companies listed on stock markets or private companies.
Out of the money
This is when the strike price of a put option is below the current price of the underlying asset or when the strike price of a call option is above the current price.

P

Private equity
An alternative form of financing for companies that, typically, are not listed on stock exchanges. The financing is usually provided by professional investors.
Private Equity Trusts
An alternative investment that consists of companies that are not listed on a public exchange.
Portfolio
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end and exchange traded funds (ETFs)
Potential upside
Describes the potential increase in value of an investment.
Put-option
A type of derivative. They can be used to protect the value of an underlying investment or group of investments against a fall in value and can be thought of as an insurance policy. These can make a fund more volatile from time to time.

Q

Quantitative easing (QE)
A monetary policy whereby a central bank purchases predetermined amounts of government bonds or other financial assets in order to inject money into the economy to expand economic activity. It has the opposite effect to quantitative tightening.
Quantitative tightening (QT)
A monetary policy whereby a central bank decreases the amount of liquidity within an economy. It reduces the financial assets that it holds. It has the opposite effect to quantitative easing and dampens economic growth.
Quoted company
A company whose shares are traded on a stock exchange.

R

Real estate investment trust (REIT)
A company that owns and manages property on behalf of shareholders. A REIT can contain commercial and/or residential property.
Return on Assets (ROA)
A financial ratio that indicates how profitable a company is in relation to its total assets. Corporate management, analysts, and investors can use ROA to determine how efficiently a company uses its assets to generate a profit or cash.
Rights issue
When a company offers its existing shareholders the chance to buy a fixed number of additional shares, probably at a reduced price for a fixed period of time. The money raised can be used by the company for a range of purposes.
Risk capital / Risk assets
Refers to money or other assets that are exposed to a possible loss in value.
Risk on / risk off
When investors are more optimistic on the outlook for asset prices. During a risk on period investors take risk by buying assets and prices are typically rising. Risk off is the opposite.

S

Securitised loans
Pooling various types of loans, debts or other assets and packaging them together to sell onto third parties.
Share price
The amount it would cost to buy one share in a company; it is not fixed but fluctuates for many reasons, including the success of the company and market conditions.
Short dated bonds
A bond with a short period of time until its maturity or date of repayment, usually defined as less than 5 years.
Short position
Investing in such a way that profit will be made if the value of the underlying asset falls.
S&P Global Clean Energy Index

The S&P Global Clean Energy Index is designed to measure the performance of companies in global clean energy-related businesses from both developed and emerging markets, with a target constituent count of 100.

Specialist bonds
Instruments that have bond-like characteristics, but are non-traditional bonds.
Spot price
The current market price at which an asset is bought or sold.
Standard money market funds
These funds are subject to less restrictive investment rules than short-term money market funds. Standard money market funds must be variably priced, and are therefore all classified as Standard VNAV funds. VNAV is where the net asset value (NAV) is variable (V) because it changes in line with the value of the underlying assets the fund holds.
Structured investments
These investments are built around a derivative and have specific criteria that need to be met to deliver a positive return.
SONIA (Sterling Overnight Index Average)
The effective overnight interest rate paid by banks to borrow money overnight from other financial institutions. SONIA replaced LIBOR.
Sub-investment grade bonds or Non-investment grade or High yield
Bonds that are expected to have a higher risk of defaulting on its interest payments or repayment of the issue value on maturity and receive lower ratings from credit rating agencies.

T

Time value
An amount that could be attributed to the value of an asset that reflects its longevity.
Thematic
Thematic investing is an approach which focuses on predicted long-term trends rather than specific companies or sectors, enabling investors to access structural changes that are running through economies, society or financial markets.
Total (Gross) assets
A measure of the size of an investment company. The total value of all assets held, less current liabilities, including income for the current year.
Total return
A way of showing how an investment has performed, and is made-up of the capital appreciation or depreciation and includes any income generated by the investment. Measured over a set period, it is expressed as a percentage of the value of the investment at the start of that period.

U

Unicorn stock
A term used to describe a privately owned start-up company that is not traded on a stock exchange and, due to its success, has a valuation of $1 billion or more. They are referred to as unicorns as historically these types of company have been rare, but are more common today.
Unit Trust

A unit trust manages portfolios of stocks, bonds, and other assets on behalf of investors. Those investors buy units of the trust or fund, and the price of the unit depends on the net asset value of the fund’s underlying investments. It is also what’s known as an open-ended investment product, meaning there’s no limit to how many people can invest or how much can be invested.

Unit Trust Manager

The ‘Unit Trust Manager’ is responsible for the running of a unit trust. They have a duty to act in the best interests of the fund’s investors, and ensure that the unit trust is well managed in line with regulations and with the investment objectives and policies set out in its prospectus.

V

Value chain
A business model that describes the full range of activities needed to create a product or service. For companies that produce goods, a value chain comprises the steps that involve bringing a product from conception to distribution, and everything in between—such as procuring raw materials, manufacturing functions, and marketing activities.
Value stocks / companies
A company whose share price is trading at a lower price than expected given the performance of the company or value of its assets; these types of company can be more sensitive to economic conditions
Volatility
A measure of the frequency and severity with which the price of an investment goes up and down.

W

Weighted Average Life (WAL)

The weighted average amount of time remaining until the securities held in a fund’s portfolio are scheduled to be repaid.

Weighted Average Maturity (WAM)
The weighted average amount of time until the securities in a portfolio mature. The higher the WAM, the longer it takes for all of the holdings in the portfolio to mature

Y

Yield (also see bond yield)
The dividend per share divided by the stock’s or fund’s price per share and expressed as a percentage. The historic yield is the dividend income distributed during the past year and expressed as a percentage of the share price on a particular day.
Yield to maturity (bonds)
The annualised percentage rate of return from a bond assuming it is held to maturity. It takes into account the remaining income paid and the return of the original principal amount of the loan.
YieldCos
An emerging asset class of publicly traded companies that are focused on returning cash flows generated from renewable energy assets to shareholders.

Z

Zero dividend preference shares (ZDPs)
Issued by investment trusts. ZDPs have a maturity date, pay no income but pay a set amount at maturity.
Zombie Companies
Zombie companies are ones that earn just enough money to continue operating and service debt but are unable to pay off their debt. Such companies survive by meeting overheads (wages, rent, interest payments on debt, for example), but have no excess capital to invest to spur growth.

This website has been created for the use of LifeStages and clients of LifeStages only. Please note that the portfolios are intended as long term investments. The value of an investment and any income generated by it can go down as well as up and there is the potential of loss to some of the original investment. Reference to any particular portfolio or fund should not be construed as investment advice. We are unable to provide investment advice on the suitability of a portfolio for individual investors. Details of the nature of the investments, the investment commitment required and specific risk warnings are outlined in the Premier Portfolio Management Service Terms and Conditions document.

The Premier Portfolio Management Service is provided by Premier Fund Managers Limited.

For more information

For your protection, calls may be monitored and recorded for training and quality assurance purposes.

Help us improve

Provide your comments below

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Feedback
Sail Graphic
Legal
Other links
Follow us
Have a question?

©Premier Miton Investors. 2023. Issued by Premier Miton Investors. Premier Portfolio Managers Limited is registered in England no. 01235867. Premier Fund Managers Limited is registered in England no. 02274227.  Both companies are authorised and regulated by the Financial Conduct Authority and are members of the ‘Premier Miton Investors’ marketing group and subsidiaries of Premier Miton Group plc (registered in England no. 06306664). Registered office: Eastgate Court, High Street, Guildford, Surrey GU1 3DE.

Choose your investor type

  1. Individual investor
    I am an individual, acting on my own behalf or on behalf of a Charity, trust or Corporate, investing in, or seeking information about Premier Miton's range of products and services.
  2. Financial adviser
    I am a financial adviser or similar investment professional, providing investment advice to individual investors
  3. Wealth manager
    I am a discretionary wealth manager, providing investment management and advice to individual investors
  4. Institutional investor
    I am an institutional investor or investment consultant
  5. Shareholder
    I am looking for information about Premier Miton Group plc

Why are we asking this?

By telling us the type of visitor you are, we can show the most relevant and interesting content for you and provide the best possible experience throughout the website. You can read our privacy policy here

You have selected
Disclaimer:

This section of the website and the content it contains is for retail clients only and by persons who are resident in the United Kingdom [who are not US persons]. Professional advisers should refer to the Professional Advisers site.

The content of the pages of this website is for your general information only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

You acknowledge that such information may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials is entirely at your own risk, for which we shall not be liable.

The information contained on this website does not constitute an offer or solicitation to sell or purchase shares in the funds or portfolios or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

Website terms of use: Please ensure you have read and accept the full 'website terms of use' before continuing.

Read the full 'website terms of use' >

This section of the website and the content it contains is for professional financial advisers only and should not be relied upon, or circulated to, retail clients. Retail clients should refer to the Individual Investor's site.

The content of the pages of this website is for your general information and use only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

You acknowledge that such information may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials is entirely at your own risk, for which we shall not be liable.

The information contained on this website does not constitute an offer or solicitation to sell shares in the funds or portfolio or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products, represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

Website terms of use: Please ensure you have read and accept the full 'website terms of use' before continuing.

Read the full 'website terms of use' >

The information in this site is solely for the purpose of acquiring information as, or for, an Institutional Investor (a corporate or other non-retail investment professional acting for their own account). This information must not be used or relied upon by anyone that may be considered a “retail investor” by the home regulator of the country from which this site is accessed.

The information contained in this website is directed at persons who are resident in the United Kingdom and complies with appropriate UK legislation and regulations and is not directed at, nor intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted.

The information or opinions contained herein should not be construed as an offer, or solicitation to deal in any investment or fund nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful or in which the person making the offer solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

Premier Miton Investors has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

Neither Premier Miton Investors nor any of its group companies or affiliates accepts any liability for any losses arising directly or indirectly from any information accessed from this website, to the fullest extent permitted by law.

By clicking accept you acknowledge that your use of this website is subject to our privacy policy, cookie policy and our general legal and compliance information available on our website.

THE UNITED STATES OF AMERICA:The investment products referred to on this website have not been and will not be registered under the United States Securities Act of 1933, as amended. They may not be offered or sold in the United States of America, its territories and possessions, any State of the United States of America or the District of Columbia or offered, sold or transferred to US Persons (as defined below). The investment products referred to on this website have not been and will not be registered under the United States Investment Company Act of 1940, as amended. Premier Portfolio Managers Limited has not been and will not be registered under the United States Investment Advisers Act of 1940.

“US Person” generally includes the following: (a) any natural person resident in the United States; (b) a partnership or corporation organised or incorporated under the laws of the United States; (c) any estate of which any executor, or administrator, is a US Person; (d) any trust of which any trustee is a US Person; (e) any agency or branch of a non-US entity located in the United States; (f) any non-discretionary account or similar account (other than an estate or trust) for the benefit or account of a US Person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the United States; and (h) any partnership or corporation if: i. organised or incorporated under the laws of any non-US jurisdiction; ii. formed by a US Person principally for the purpose of investing in securities not registered under the 1933 Act. In addition, a Shareholder must qualify as a “Non-United States Person” as used in the US Commodity Futures Trading Commission (“CFTC”) Rule 4.7.

Investment products referred to on this website may not be sold or transferred to a US citizen, or an entity taxed as such or required to file a tax return as such under the United States federal income tax laws (a “US Tax Resident”).

The information in this site is solely for the purpose of acquiring information as, or for, an Institutional Investor (a corporate or other non-retail investment professional acting for their own account). This information must not be used or relied upon by anyone that may be considered a “retail investor” by the home regulator of the country from which this site is accessed.  

The information contained in this website is directed at persons who are resident in the United Kingdom and complies with appropriate UK legislation and regulations and is not directed at, nor intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted.

The information or opinions contained herein should not be construed as an offer, or solicitation to deal in any investment or fund nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful or in which the person making the offer solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

Premier Miton Investors has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

Neither Premier Miton Investors nor any of its group companies or affiliates accepts any liability for any losses arising directly or indirectly from any information accessed from this website, to the fullest extent permitted by law.

By clicking accept you acknowledge that your use of this website is subject to our privacy policy, cookie policy and our general legal and compliance information available on our website.

THE UNITED STATES OF AMERICA: The investment products referred to on this website have not been and will not be registered under the United States Securities Act of 1933, as amended. They may not be offered or sold in the United States of America, its territories and possessions, any State of the United States of America or the District of Columbia or offered, sold or transferred to US Persons (as defined below). The investment products referred to on this website have not been and will not be registered under the United States Investment Company Act of 1940, as amended. Premier Portfolio Managers Limited has not been and will not be registered under the United States Investment Advisers Act of 1940.

 “US Person” generally includes the following: (a) any natural person resident in the United States; (b) a partnership or corporation organised or incorporated under the laws of the United States; (c) any estate of which any executor, or administrator, is a US Person; (d) any trust of which any trustee is a US Person; (e) any agency or branch of a non-US entity located in the United States; (f) any non-discretionary account or similar account (other than an estate or trust) for the benefit or account of a US Person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the United States; and (h) any partnership or corporation if: i. organised or incorporated under the laws of any non-US jurisdiction; ii. formed by a US Person principally for the purpose of investing in securities not registered under the 1933 Act. In addition, a Shareholder must qualify as a “Non-United States Person” as used in the US Commodity Futures Trading Commission (“CFTC”) Rule 4.7.

 Investment products referred to on this website may not be sold or transferred to a US citizen, or an entity taxed as such or required to file a tax return as such under the United States federal income tax laws (a “US Tax Resident”). If those investment products are held by a US Person, a US Tax Resident or a person who does not qualify as a “Non-United States Person” within the meaning of CFTC Rule 4.7, Premier Portfolio Managers Limited shall be entitled to redeem such Shareholder’s entire holdings.

Choose your investor type

  1. Individual investor
    I am an individual, acting on my own behalf or on behalf of a Charity, trust or Corporate, investing in, or seeking information about Premier Miton's range of products and services.
  2. Financial adviser
    I am a financial adviser or similar investment professional, providing investment advice to individual investors
  3. Wealth manager
    I am a discretionary wealth manager, providing investment management and advice to individual investors
  4. Institutional investor
    I am an institutional investor or investment consultant
  5. Shareholder
    I am looking for information about Premier Miton Group plc

Why are we asking this?

By telling us the type of visitor you are, we can show the most relevant and interesting content for you and provide the best possible experience throughout the website. You can read our privacy policy here

You have selected
Disclaimer:

This section of the website and the content it contains is for retail clients only and by persons who are resident in the United Kingdom [who are not US persons]. Professional advisers should refer to the Professional Advisers site.

The content of the pages of this website is for your general information only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

You acknowledge that such information may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials is entirely at your own risk, for which we shall not be liable.

The information contained on this website does not constitute an offer or solicitation to sell or purchase shares in the funds or portfolios or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

Website terms of use: Please ensure you have read and accept the full 'website terms of use' before continuing.

Read the full 'website terms of use' >

This section of the website and the content it contains is for professional financial advisers only and should not be relied upon, or circulated to, retail clients. Retail clients should refer to the Individual Investor's site.

The content of the pages of this website is for your general information and use only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

You acknowledge that such information may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials is entirely at your own risk, for which we shall not be liable.

The information contained on this website does not constitute an offer or solicitation to sell shares in the funds or portfolio or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products, represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

Website terms of use: Please ensure you have read and accept the full 'website terms of use' before continuing.

Read the full 'website terms of use' >

The information in this site is solely for the purpose of acquiring information as, or for, an Institutional Investor (a corporate or other non-retail investment professional acting for their own account). This information must not be used or relied upon by anyone that may be considered a “retail investor” by the home regulator of the country from which this site is accessed.

The information contained in this website is directed at persons who are resident in the United Kingdom and complies with appropriate UK legislation and regulations and is not directed at, nor intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted.

The information or opinions contained herein should not be construed as an offer, or solicitation to deal in any investment or fund nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful or in which the person making the offer solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

Premier Miton Investors has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

Neither Premier Miton Investors nor any of its group companies or affiliates accepts any liability for any losses arising directly or indirectly from any information accessed from this website, to the fullest extent permitted by law.

By clicking accept you acknowledge that your use of this website is subject to our privacy policy, cookie policy and our general legal and compliance information available on our website.

THE UNITED STATES OF AMERICA:The investment products referred to on this website have not been and will not be registered under the United States Securities Act of 1933, as amended. They may not be offered or sold in the United States of America, its territories and possessions, any State of the United States of America or the District of Columbia or offered, sold or transferred to US Persons (as defined below). The investment products referred to on this website have not been and will not be registered under the United States Investment Company Act of 1940, as amended. Premier Portfolio Managers Limited has not been and will not be registered under the United States Investment Advisers Act of 1940.

“US Person” generally includes the following: (a) any natural person resident in the United States; (b) a partnership or corporation organised or incorporated under the laws of the United States; (c) any estate of which any executor, or administrator, is a US Person; (d) any trust of which any trustee is a US Person; (e) any agency or branch of a non-US entity located in the United States; (f) any non-discretionary account or similar account (other than an estate or trust) for the benefit or account of a US Person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the United States; and (h) any partnership or corporation if: i. organised or incorporated under the laws of any non-US jurisdiction; ii. formed by a US Person principally for the purpose of investing in securities not registered under the 1933 Act. In addition, a Shareholder must qualify as a “Non-United States Person” as used in the US Commodity Futures Trading Commission (“CFTC”) Rule 4.7.

Investment products referred to on this website may not be sold or transferred to a US citizen, or an entity taxed as such or required to file a tax return as such under the United States federal income tax laws (a “US Tax Resident”).

The information in this site is solely for the purpose of acquiring information as, or for, an Institutional Investor (a corporate or other non-retail investment professional acting for their own account). This information must not be used or relied upon by anyone that may be considered a “retail investor” by the home regulator of the country from which this site is accessed.  

The information contained in this website is directed at persons who are resident in the United Kingdom and complies with appropriate UK legislation and regulations and is not directed at, nor intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted.

The information or opinions contained herein should not be construed as an offer, or solicitation to deal in any investment or fund nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful or in which the person making the offer solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

Premier Miton Investors has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

Neither Premier Miton Investors nor any of its group companies or affiliates accepts any liability for any losses arising directly or indirectly from any information accessed from this website, to the fullest extent permitted by law.

By clicking accept you acknowledge that your use of this website is subject to our privacy policy, cookie policy and our general legal and compliance information available on our website.

THE UNITED STATES OF AMERICA: The investment products referred to on this website have not been and will not be registered under the United States Securities Act of 1933, as amended. They may not be offered or sold in the United States of America, its territories and possessions, any State of the United States of America or the District of Columbia or offered, sold or transferred to US Persons (as defined below). The investment products referred to on this website have not been and will not be registered under the United States Investment Company Act of 1940, as amended. Premier Portfolio Managers Limited has not been and will not be registered under the United States Investment Advisers Act of 1940.

 “US Person” generally includes the following: (a) any natural person resident in the United States; (b) a partnership or corporation organised or incorporated under the laws of the United States; (c) any estate of which any executor, or administrator, is a US Person; (d) any trust of which any trustee is a US Person; (e) any agency or branch of a non-US entity located in the United States; (f) any non-discretionary account or similar account (other than an estate or trust) for the benefit or account of a US Person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the United States; and (h) any partnership or corporation if: i. organised or incorporated under the laws of any non-US jurisdiction; ii. formed by a US Person principally for the purpose of investing in securities not registered under the 1933 Act. In addition, a Shareholder must qualify as a “Non-United States Person” as used in the US Commodity Futures Trading Commission (“CFTC”) Rule 4.7.

 Investment products referred to on this website may not be sold or transferred to a US citizen, or an entity taxed as such or required to file a tax return as such under the United States federal income tax laws (a “US Tax Resident”). If those investment products are held by a US Person, a US Tax Resident or a person who does not qualify as a “Non-United States Person” within the meaning of CFTC Rule 4.7, Premier Portfolio Managers Limited shall be entitled to redeem such Shareholder’s entire holdings.

Main Menu
Help Centre

The content you are trying to access is intended for investment professionals only.

Please use the button below to return to the hompage.

Home page