Active management involves an investor or professional team monitoring an investment portfolio and making decisions to buy, hold, or sell assets. 

Alternative investments refer to options that investors can choose beyond traditional stocks, bonds, and cash. These options can include a diverse array of assets such as real estate, commodities, private equity, hedge funds and art. 

AER is used for savings and investment accounts. It the percentage of interest you’ll receive each year for keeping money within the account. 

An annuity transforms your savings into an annual pension, providing you with a guaranteed income for life or a specified period. 

An asset is a valuable resource owned by an individual, company, or country, expected to provide future benefits. 

Asset allocation is based on the understanding that different types of assets do not move together, and some are more volatile than others. We will measure your portfolio against a risk aligned target asset allocation to show whether it is optimised for your risk/return profile. 

Asset management refers to the process of managing money on behalf of clients. The people responsible for managing these funds are known as asset managers, they develop and implement investment strategies aimed at creating value for their clients.

Bare trusts tend to be used if you want to pass any of your assets to a young person, usually a child or grandchild who is under the age of 18 (or 16 in Scotland). These trusts offer a way to pass on an asset whilst providing for others.

A benchmark in finance is a tool used by investors to analyse the risk and return of a portfolio, helping them understand its performance.

A beneficial owner is an individual who directly or indirectly controls or owns a legal entity, such as a company or trust.

A beneficiary can be an individual, group, or entity, such as a charity, designated to receive benefits, assets, or rights from a will or trust.

When you invest in a Bond, you are lending money to a company or government for a fixed period. During this time, you receive regular interest payments.

Capital assets can include any asset owned for personal or investment purposes. These assets can be tangible, such as properties, or intangible, such as stocks and bonds.

Capital Gains Tax is levied on profits from selling assets that have appreciated in value. The tax applies to the gain made, not the total amount received.

Chartered status reflects a planner’s commitment to professional standards, demonstrating to consumers, employers, and peers that the planner prioritises professionalism and ongoing development.

The CFA charter is widely recognised as the ‘gold standard’ in the finance industry. It proves that an analyst has a thorough understanding of financial markets.

A commission fee is a payment made to someone for their services, usually as a percentage of the sale.

The compound annual growth rate (CAGR) is the average annual growth rate of an investment over a period longer than one year. It is one of the most accurate methods for calculating and assessing returns on individual investment.

Compound interest is interest accumulated from a principal sum and previously accumulated interest.

A deferred annuity doesn’t pay you straight away. Instead, payments are made at a future date previously agreed.

Domicile relates to ‘a country that a person views as their permanent home’. Domicile status is usually established at birth. This is known as a ‘domicile of origin’.

Double taxation occurs when the same income is taxed twice. Double taxation can arise in investments when the same income is taxed by two different countries.

Environmental, social, and governance (ESG) investing is a way of investing that considers environmental, social, and governance factors when making investment decisions.

Estate planning is the process of deciding how to manage and distribute assets after death.

Estate tax refers to the tax payable on your estate after death. In the UK, the standard Inheritance Tax rate is 40%. It is only charged on the portion of your estate that exceeds the threshold.

A Financial Adviser or Financial Planner is a professional who helps individuals and organisations manage their finances, make informed decisions, and achieve their financial goals.

A fixed annuity relates to insurance products which protect against loss and generally offer fixed rates of return.

A Fund or investment Fund is a pool of capital that enables the fund manager to make investment decisions on their behalf.

Fund managers are responsible for executing a fund’s investment strategy and managing its trading activities.

A gilt is a bond issued by the UK government that allows investors to lend money to the government in exchange for interest.

Inheritance tax could be due on your estate after your death. In the UK, the standard Inheritance Tax rate is 40%. It is only charged on the portion of your estate that exceeds the threshold.

ISA stands for an Individual Savings Account. An ISA is an account that allows you to save and invest free from UK tax.

A joint life annuity is a financial product that pays a regular income to a couple or other beneficiaries for life.

Property acquired by either spouse during a marriage is considered marital property.

Mid-cap funds are made up of a collection of investments that focus on companies with a medium market capitalisation.

The term offshore in finance refers to a location outside of one’s home country. The term is frequently used to describe areas where regulations are different from the home country.

Passive investing is an investment strategy that involves buying and holding investments over the long term, rather than frequently buying and selling.

Qualified investor schemes are authorised funds which are intended only for professional clients and for retail clients who are sophisticated investors.

A Qualifying Recognised Overseas Pension Scheme (QROPS) is a useful retirement option for those living, or planning to live, overseas.

Financial regulation refers to the rules and laws firms operating in the financial industry, such as banks, insurance companies, financial brokers and asset managers must follow.

Risk assessment is the maximum expected portfolio return for a given amount of portfolio risk. We will undertake an overall portfolio risk assessment against a risk-aligned target asset allocation.

Stock performance will be undertaken using quantitative ratio analysis to give insight into the liquidity, operational efficiency, and profitability of stocks.

Fund Assessment will be undertaken using a combination of risk adjusted returns and quantitative performance to show the strength of performance trends.

A trust is an arrangement which can be used to hold your assets and determine what happens to them in particular situations.

A trustee is a person or organisation appointed to manage property or assets on behalf of another party, known as the beneficiary.