Glossary

Term Definition
Asset Anything having commercial or exchange value that is owned by a business, institution or individual.
Bond A loan in the form of a security, usually issued by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the initial amount borrowed is repaid.
Capital Refers to the financial assets, or resources, that a company has to fund its business operations.
Capital growth
Occurs when the current value of an investment is greater than the initial amount invested.
Consumer Prices Index (CPI)
An index used to measure inflation, which is the rate of change of prices for a basket of goods and services. The contents of the basket are meant to be representative of products and services we typically spend our money on
Developed markets
Well-established economies with a high degree of industrialisation, standard of living and security.
Distribution Refers to the periodical paying-out of interest or dividends received by funds to their shareholders. Dividends represent a share in the profits of a company and are paid out to the owners at certain times during the year.
Inflation The rate of increase in the cost of living. Inflation is usually quoted as an annual percentage, comparing the average price this month with the same month a year earlier.
Yield
Refers to the income received from an investment and is usually expressed annually as a percentage based on the investment's cost, its current market value or face value.