GlossaryThe M&G glossary provides you with an explanation of frequently used investment and website security terms.
A financial adviser is an intermediary authorised to sell or advise on financial products. This will include solicitors, accountants or other business conducting relevant financial business and regulated by RPBs (recognised professional bodies).
The Financial Services Authority (FSA) is an independent body with statutory powers who are responsible for supervising financial firms, maintaining confidence in the financial system, providing protection for consumers and reducing financial crime.
This sector covers:
Hardware or software that allows or denies ‘traffic’ to enter your computer system.
A fixed rate of interest payable each year.
A system of pricing where the price at which investors buy or sell is determined at the next valuation of the fund. Investors are dealing blind in that they do not know the price they will pay or receive.
An index that measures the share price performance of the UK’s largest 100 companies.
An index that measures the performance of around 700 UK companies.
A collective investment which brings together investors’ money to buy a portfolio of shares, bonds, property or other financial instruments to achieve its investment objective. Funds aim to diminish the risk inherent in stockmarket investment by diversifying assets and sharing the cost of professional fund management.
See also Unit trust, Investment trust/investment company, and Sub-fund.
Funds that invest primarily in other authorised collective investment schemes or funds. M&G offers funds of funds that invest across M&G's comprehensive range of funds, and in funds run by other management companies. As a result of regulations introduced in 2006, some funds also have the ability to invest directly in certain securities, although this will be clearly stated within a funds investment policy and governed by appropriate limits set out in that policy.
A future involves negotiating a price today for something to be delivered in the future. Most futures are traded and no physical delivery of the underlying securities takes place. The contract is legally binding.