Generally, a fund choice within a unit-linked policy. Managed funds are often made up of units from a wide spread of other specialist funds or investments. This has the effect of spreading the risk of volatility. See also Tracker Funds.
A bank’s customer writes instructions on a mandate for the bank to follow when operating the customer’s account.
This is the amount of tax paid on each additional pound of income.
Multiply the number of ordinary shares a company has issued by their market price, you get the market capitalisation or value of the company. The definition should also include any bonds issued by the company, but is generally related to share issues only.
If you take money out of a with-profits fund, an adjustment may be made to the value of the withdrawal if the value of the underlying assets is less than the value of your plan including bonuses. This adjustment is known as a market value reduction.
Someone who has been admitted to a pension scheme. Also, the shareholders of a company are referred to as its members.
This is a specialist bank which deals in foreign exchange and advises large companies on mergers, takeovers, raising capital, etc.
Contributions payable to an appropriate personal or stakeholder pension by HMRC in respect of a member who has contracted out of SERPS or the State Second Pension. This may also refer to minimum contribution levels that can be paid into a financial product.
The smallest amount an employer is allowed to pay into a contracted-out money purchase pension plan. This amount will give the employee protected rights.
If a bank, company or salesperson misrepresents what a product or service offers, or misleads you about what it can do, they are mis-selling it. Contact the FSA if you think you were mis-sold a financial product or service.
A way of influencing the economy by controlling the availability and cost of money. This is mainly via changing interest rates and Government bond issues.
A committee of the Bank of England that determines interest rate changes. They are a body of external experts that meet monthly.
These include bank deposits, certificates of deposit or fixed interest securities. The return achieved from money market instruments is a combination of interest and any changes in the value of the instruments. Often regarded as relatively low risk, although their value may fall as well as rise.
A type of pension where your money is invested in, for example, the stock market. The size of your retirement fund depends on how much you pay in and how well your investments do. Upon retirement, funds are used to purchase an annuity. Also known as Defined Contribution Schemes.
A loan to buy a house or flat, secured against the value of that property.