Glossary

Term Definition
Active (asset) management An approach to investing whereby capital is allocated according to the judgment of the investor or fund manager(s). The active investor aims to beat the returns from the stockmarket or specified index/sector, rather than to match them.
Asset classes Category of assets, such as cash, company shares, fixed income securities and their sub-categories, as well as tangible assets such as real estate.
Bond A type of security, usually issued by a government or company, that normally pays a fixed rate of interest over a given time period, at the end of which the initial investment is repaid.
Equity/equities Shares of ownership in a company.
Fixed interest/fixed income securities 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.
Government bonds Fixed income securities issued by governments, that normally pay a fixed rate of interest over a given time period, at the end of which the initial investment is repaid.
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.