| Accretion |
|
The increase in value of an asset over a period of time in a predictable or pre-determined way. The opposite of amortisation. |
 |
| Active Fund Management |
|
A style of investment management where the fund manager seeks to improve returns or reduce costs by using their expertise to choose which stocks or bonds to buy and sell. The opposite of passive management, where the manager aims to match the performance of a market or index by replicating the composition of that market or index in their fund. |
|
| Actuary |
|
Someone who uses applied mathematics (in particular, probability) to provide solutions to insurance-related problems. Actuarial techniques are used to design new products and to assess the profitability of new and existing business. |
|
| Agency Brokers |
|
Stockbrokers who go into the stock market on behalf of clients to obtain the best possible price for the sale or purchase of shares. See also market-maker. |
|
| Agent/Financial Planning Adviser |
|
An intermediary between an insurance company and a policyholder. Agents usually earn commission or a fee for their advice or on the sale of a policy. |
|
| Allocation Rate |
|
The percentage of a contribution used to buy units for investment purposes. The percentage will vary depending on factors such as the type of contract, time to maturity, commission and amount of contribution. |
|
| Amortisation |
|
An accountancy term for the gradual reduction in value of an asset caused by the passage of time. If something is amortised, it is written off. If the cause is not solely related to time, the effect is described as depreciation. |
|
| Analyst |
|
Someone with expertise innresearching stock markets,companies and financial investments who will analyse and interpret the results of that research to make recommendations to institutional and retail investors to buy, sell or hold their investments in stocks and shares. Most analysts specialise in a single industry or business sector. |
|
| Annual premium equivalent (APE) |
|
A UK industry standard formula for calculating levels of life and pensions new business over a period of time, to smooth out the effect of large, one-off payments. It is the total of new annual premiums plus 10% of single premiums. |
|
| Annuity |
|
Another word for "Pension". An annuity is a regular payment from an insurance company designed to give the policyholder an income for life after retirement. It is paid for by a lump sum saved during the policyholder's working lifetime. Annuity rates are based on yields on gilt-edged securities at the time of purchase. On death, any remaining investments usually become the property of the annuity provider. |
|
