Gilt (Gilt Edged Security) - A fixed-interest bond
or security issued by the British Government.
GPP (Group Personal Pension) - An arrangement made
for employees of a particular employer to participate
in a personal pension scheme on a group basis.
Hedging - A strategy designed to offset investment
risk.
IFA - Independent Financial Adviser - A professional
financial expert who must by law give impartial "best
advice" on financial companies, markets and products.
IFAs are completely independent and can recommend the
products of any company.
IMRO - Investment Management Regulatory Organisation,
the body that regulates the management of unit trusts.
Income Drawdown - Facility by which you can draw
an income from your pension fund while keeping the rest
fully invested until the age of 75 at the latest.
Income Tax - Tax payable if you have income above
the minimum level taxable in the UK.
Index - The means of measuring movement of statistics
over a period of time used as a benchmark by unit trust
managers.
Index-linked - Payments protected against the effects
of inflation by increasing in line with the changes in
the index of retail prices.
Inflation - The amount in percentage terms by which
prices rise or fall year on year.
Inheritance Tax - Tax payable after you die on
the value of your assets in excess of a certain threshold
value (£242,000 at August 2001) although gifts between
husband and wife are exempt. It is also chargeable in
certain circumstances while you are still alive.
Initial Charge - A charge levied by your investment
manager to cover administration and sales commission when
you invest in a fund.
Interest-only Mortgage - A mortgage product where
you make a monthly interest payment and rely on the a
savings plan to pay off the capital at the end of the
mortgage term.
Investment Trust - A company, quoted on the Stock
Exchange which invests in other companies' shares.
ISA - Individual Savings Account - Tax-efficient
savings plans which can hold cash, shares or life assurance,
or a combination of all three elements, which were introduced
in 1999 to replace TESSAs and PEPs.
Joint life - Joint life plans cover two (or more)
people, usually a husband and wife. Benefits can be paid
following the first death, or following the death of both.
Keyman insurance - This provides cover, in the
short term, against the loss of profits a company is likely
to suffer following the death of a key employee.
Liability - A debt, or amount of money, owed to
others.
Listed company - A company whose shares are quoted
on a recognised stock market.
