Glossary · Ownsight

A

Accrued chargesFees and fund types: Charges that build up over a period but have not yet been paid or taken.; Related:
Accumulating and distributingUK accounts and tax: Two versions of the same fund. A distributing fund pays its income out; an accumulating fund reinvests it inside the fund, so the unit price rises instead.
Accumulation share classUK accounts and tax: A version of a fund that reinvests the income it earns back into the fund, so its price rises instead of paying you cash.; Related:
Active managementFees and fund types: An approach where managers choose investments aiming to do something different from an index, such as beat it.; Related:
Asset allocationInvesting basics: How a portfolio is split between types of investment, such as shares, bonds, cash and gold.; Related:
Average on bad daysModel baskets and risk: The average fall on those worst 1-in-100 days.

B

BacktestingModel baskets and risk: Applying a method to past data to see how it would have behaved.; Related:
Base currencyMarkets, currencies and data: The currency used to show and add up values. Ownsight shows values in pounds.; Related:
BenchmarkInvesting basics: A reference point used to judge how an investment or portfolio has done, usually a market index.; Related:
Benchmark-relative performanceModel baskets and risk: How an investment did compared with a chosen benchmark, rather than on its own.; Related:
Bid–ask spreadFees and fund types: The gap between the highest price a buyer is offering (the bid) and the lowest price a seller is asking (the ask). A wider gap costs more each time you trade.; Related:
Bonds and giltsInvesting basics: Loans to governments or companies that pay interest. Gilts are bonds issued by the UK government.

C

CandlestickMarkets, currencies and data: A chart bar for one day, week or month: the box runs from the opening to the closing price and the thin lines reach the highest and lowest prices. Green means it closed higher than it opened.
Capital gain or lossInvesting basics: The profit or loss when you cash in an investment, compared with what it cost you.; Related:
Capital Gains Tax (CGT)UK accounts and tax: A tax on the gain you make when you cash in or give away certain assets for more than they cost. An annual exempt amount and other rules apply.; Related:
Cash ISAUK accounts and tax: An ISA that holds cash savings rather than investments. Under the current rules, interest earned inside it is generally free of UK income tax.; Related:
Closing priceMarkets, currencies and data: The last price recorded at the end of a trading session.; Related:
Combined exposureHow Ownsight sees your portfolio: The total exposure to one company across every holding that reaches it, directly and through funds.; Related:
ConcentrationHow Ownsight sees your portfolio: How much of your money depends on a small number of companies. We show it as 'like holding N equal companies': the lower N is, the more a few companies drive your results.; Related:
Concentration riskHow Ownsight sees your portfolio: The risk that a large part of a portfolio depends on a few companies, so a problem at one of them has a big effect.; Related:
Conflicts of interestRegulation and responsible use: Situations where one party's interests could affect how a service works or what it shows.; Related:
Consumer DutyRegulation and responsible use: The FCA's standard that firms within its scope must act to deliver good outcomes for retail customers.; Related:
Contribution analysisHow Ownsight sees your portfolio: A breakdown of how much each holding adds to your exposure to one company.; Related:
CorrelationModel baskets and risk: How closely two things moved together, from -1 (opposite) through 0 (unrelated) to 1 (always together).
Currency exposureMarkets, currencies and data: Assets priced in another currency change in pound value when exchange rates move, even if their own price stays the same.
Currency-adjusted returnMarkets, currencies and data: A return worked out after allowing for changes in exchange rates.; Related:

D

Data coverageMarkets, currencies and data: How much of a dataset, or of your portfolio, is covered by the information we have.; Related:
Data freshnessMarkets, currencies and data: How recently the information behind a figure was updated.; Related:
Data protectionRegulation and responsible use: The rules on how personal information may be collected, used and kept, set by UK data protection law and overseen by the Information Commissioner's Office.; Related:
Data provenanceMarkets, currencies and data: Where data came from and how it was processed.; Related:
Dealing feeFees and fund types: A charge your platform makes each time you trade an investment.; Related:
Delayed market dataMarkets, currencies and data: Prices shown some time after they happened, often 15 minutes or more.; Related:
Demo dataMarkets, currencies and data: Data assembled for this preview from public sources. Close to reality but not checked for every fund and date.
DistributionInvesting basics: Money a fund pays out to its holders, from the dividends and interest it receives.
DiversificationInvesting basics: Spreading money across different investments so no single one decides how the whole portfolio does.; Related:
DividendInvesting basics: A share of a company's profits paid to its shareholders.
Dividend allowanceUK accounts and tax: The amount of dividend income you can receive in a tax year before dividend tax applies, outside tax wrappers.; Related:
Dividend taxUK accounts and tax: Tax that can apply to dividend income received outside an ISA or pension, once the dividend allowance is used.; Related:
DrawdownInvesting basics: The fall from a high point to a later low point.; Related:
Duplicate holdingsHow Ownsight sees your portfolio: The same company reached through more than one of your holdings.; Related:

E

Emerging marketsInvesting basics: Countries whose economies and stock markets are still developing, such as China, India and Brazil.
Estimated annual costFees and fund types: A projection of what your fund charges would be over a year, based on stated charges and what you hold today.; Related:
Estimated valueMarkets, currencies and data: A value worked out by a stated method rather than taken from a confirmed current price.; Related:
ETFFees and fund types: Exchange-traded fund: a fund whose units trade on a stock exchange like a share.; Related:

F

Financial Conduct Authority (FCA)Regulation and responsible use: The UK regulator of financial services firms and markets.; Related:
Financial guidanceRegulation and responsible use: General information and support that helps people understand money and investing, without pointing them to a particular product.; Related:
Financial promotionRegulation and responsible use: A communication that invites or encourages someone to take part in investment activity, where the legal definition applies. The FCA expects these to be fair, clear and not misleading.; Related:
Foreign-exchange (FX) exposureMarkets, currencies and data: How much of your portfolio's value depends on exchange rates.; Related:
FundInvesting basics: An investment that pools many people's money and invests it for a stated aim. You own a share of the fund, not the investments inside it directly.; Related:
Fund overlapHow Ownsight sees your portfolio: How much two funds hold the same companies, in the same proportions.; Related:
Fund overlap matrixHow Ownsight sees your portfolio: A grid showing the overlap between every pair of your funds. Darker cells mean more in common.; Related:

G

General Investment Account (GIA)UK accounts and tax: An ordinary investment account with no tax wrapper. Gains and income may be taxable, subject to allowances and exemptions.; Related:
Geographic exposureHow Ownsight sees your portfolio: The share of your company shares that sits in each country or region.; Related:

H

Hedged fundMarkets, currencies and data: A fund that uses contracts to cancel out most of the effect of exchange-rate movements.
HMRCUK accounts and tax: His Majesty's Revenue and Customs, the UK tax authority.; Related:
HoldingInvesting basics: One investment inside a portfolio, such as a single fund or a share in one company.; Related:
Hypothetical performanceModel baskets and risk: Performance calculated or simulated, rather than what a real investor actually earned.; Related:

I

Income share classUK accounts and tax: A version of a fund that pays out the income it earns to its investors, usually as regular distributions.; Related:
IndexInvesting basics: A list of companies or bonds chosen by a published rule, such as the largest companies in developed countries, used to describe a market. An index itself can't be held; funds track them.
Index fundInvesting basics: A fund that aims to follow a market index rather than choose investments itself. Many ETFs are index funds.; Related:
Indirect ownershipHow Ownsight sees your portfolio: Exposure to a company through a fund or another intermediary rather than owning its shares yourself.; Related:
Investment horizonModel baskets and risk: How long someone expects to hold investments before needing the money.; Related:
Investment trustFees and fund types: A company listed on the stock exchange whose business is to invest. Its share price can sit above or below the value of what it holds.; Related:
ISA allowanceUK accounts and tax: The most you can pay into ISAs in one tax year. It is set by the government and covers your ISAs together, not each one separately.; Related:
ISINMarkets, currencies and data: International Securities Identification Number: a 12-character code that identifies a specific security worldwide.; Related:

L

Largest fall from a highModel baskets and risk: The biggest drop from a previous peak to a later low (sometimes called drawdown).
Lifetime ISA (LISA)UK accounts and tax: An ISA for adults within set age limits, designed for a first home or for saving for later life. It comes with a government bonus on payments in, and some withdrawals are charged.; Related:
Look-throughHow Ownsight sees your portfolio: Seeing past a fund's name to the companies, bonds and other assets it holds, and how much of each.; Related:
Look-through coverageHow Ownsight sees your portfolio: How much of your portfolio we can see at the level of individual companies or assets.; Related:

M

Market capitalisationMarkets, currencies and data: The market value of all of a company's shares: its share price times the number of shares.; Related:
Market valueInvesting basics: What an investment is worth at its current market price.; Related:
Maximum drawdownModel baskets and risk: The biggest fall from a peak to a later low over a stated period.; Related:
Missing dataMarkets, currencies and data: Information a calculation needs that we do not have.; Related:
Model portfolioModel baskets and risk: A hypothetical mix of funds built by a stated method, used to study how such a mix behaves.; Related:
Monte Carlo simulationModel baskets and risk: Running thousands of made-up months that follow the patterns seen in real prices, to see how wide the range of outcomes is.

N

Net Asset Value (NAV)Markets, currencies and data: The value of a fund's assets minus what it owes, usually shown per unit or share.; Related:

O

OEICFees and fund types: Open-ended investment company: a type of UK fund that creates or cancels shares as people invest or withdraw, so its price follows the value of what it holds.; Related:
Ongoing charge (OCF)Fees and fund types: The yearly running cost of a fund, shown as a percentage of what you hold in it. It is taken from the fund, not billed to you.; Related:
OverlapHow Ownsight sees your portfolio: When the same company sits inside more than one of your funds, or inside a fund and in a share you hold directly. Your total exposure to it is the sum of all those pieces.; Related:

P

Passive managementFees and fund types: An approach that aims to follow an index or a defined market rather than choose investments.; Related:
Past performanceRegulation and responsible use: How an investment did before. It is not a reliable guide to what happens next.; Related:
Pension tax reliefUK accounts and tax: Tax relief that can apply to payments into a registered pension, subject to the rules and limits.; Related:
Personal recommendationRegulation and responsible use: Advice presented as suitable for a particular person, or based on their circumstances.; Related:
Personal Savings AllowanceUK accounts and tax: An allowance that lets some savers earn a set amount of interest without paying tax on it. How much depends on your income tax band.; Related:
Physical replicationFees and fund types: A fund that tracks an index by holding the investments in it, or a sample of them.; Related:
Platform feeFees and fund types: What an investment platform charges for holding your investments, often a percentage of what you hold or a flat amount.; Related:
PortfolioInvesting basics: Everything you hold across your accounts: funds, shares, bonds and cash.; Related:

R

Real-time dataMarkets, currencies and data: Market data delivered with almost no delay.; Related:
RebalancingModel baskets and risk: Adjusting holdings to bring a mix back to its target split after prices have moved it.; Related:
Rebalancing frequencyModel baskets and risk: How often a mix is reviewed and adjusted back to its targets.; Related:
Regulated investment adviceRegulation and responsible use: Advice that falls within the legal definition of investment advice, which only authorised firms may give.; Related:
Risk capacityModel baskets and risk: How much loss someone can afford to take without it harming their finances.; Related:
Risk contributionModel baskets and risk: How much of a portfolio's ups and downs come from one holding. It depends on the holding's size, how much it moves and how it moves with everything else.
Risk disclosureRegulation and responsible use: A clear statement of the main risks of an investment or service.; Related:
Risk profileModel baskets and risk: A description of how much investment risk suits a person or a portfolio.; Related:
Risk toleranceModel baskets and risk: How much of a fall in value someone is willing to sit through.; Related:
Risk-adjusted returnModel baskets and risk: A return viewed alongside the risk taken to earn it, so a steady return and a bumpy one can be compared fairly.; Related:

S

Sector exposureHow Ownsight sees your portfolio: The share of your company shares that sits in each industry, such as technology or health care.; Related:
Self-Invested Personal Pension (SIPP)UK accounts and tax: A personal pension where you choose the investments from those your provider offers.; Related:
SensitivityModel baskets and risk: How much a portfolio has tended to move when something else moved, such as global shares, oil or the pound. Past relationships, which can change.
Sharpe ratioModel baskets and risk: The return above a cash-like baseline, divided by volatility: how much return came for each unit of ups and downs.; Related:
Size and value factorsModel baskets and risk: Two well-studied patterns in share prices (Fama and French): smaller versus larger companies, and 'value' (cheaper) versus 'growth' companies.
Stale holdings dataHow Ownsight sees your portfolio: Fund holdings information that no longer matches what the fund holds today.; Related:
Stamp Duty Reserve Tax (SDRT)UK accounts and tax: A tax that can apply to some transactions in UK company shares. Funds and ETFs can be treated differently from shares.; Related:
Stocks and Shares ISAUK accounts and tax: An Individual Savings Account that holds investments such as funds and shares. Under the current rules, growth and income inside it are generally free of UK income tax and Capital Gains Tax.; Related:
Strategic asset allocationModel baskets and risk: A long-term target split between asset types, set in advance and not changed with every market move.; Related:
Synthetic replicationFees and fund types: A fund that tracks an index using financial contracts called swaps instead of holding the investments itself.; Related:

T

Ticker symbolMarkets, currencies and data: The short code that identifies a share or fund on a market.; Related:
Total Expense Ratio (TER)Fees and fund types: A measure of a fund's running costs as a share of its value. Providers can calculate it slightly differently from the ongoing charge.; Related:
Total returnInvesting basics: The gain or loss on an investment including income paid out (such as dividends), not just the change in its price.; Related:
Tracking differenceFees and fund types: How far a fund's actual return was from its index's return over a stated period.; Related:
Tracking errorFees and fund types: How much a fund's returns bounce around its benchmark's over time. A low number means it follows the benchmark closely.; Related:
Transaction costsFees and fund types: The costs of trading investments: dealing fees, spreads and taxes such as stamp duty. Funds also pay costs inside the fund when they trade.; Related:
Typical daily moveModel baskets and risk: How much the portfolio's value usually changed in a day, up or down (one standard deviation of daily returns).

U

UCITSFees and fund types: A set of rules for funds sold to ordinary investors. They limit what a fund can hold and how it spreads its investments. The word appears in many fund names, such as 'UCITS ETF'.; Related:
UK tax yearUK accounts and tax: The tax year runs from 6 April to 5 April the following year. Allowances and rates are set for each tax year.; Related:
Underlying exposureHow Ownsight sees your portfolio: How much of your money is tied to a company or asset once funds are looked through, whether you hold it directly or inside funds.; Related:
Unit trustFees and fund types: A UK fund set up as a trust. Investors hold units whose price follows the value of the fund's investments.; Related:

V

VolatilityInvesting basics: How much an investment's price jumps around. Higher volatility means bigger ups and downs.; Related:
Volatility-scaled estimateModel baskets and risk: Past daily moves resized to how lively markets are right now, so a calm period gives smaller figures and a stormy one larger. Also called filtered historical simulation.
VolumeMarkets, currencies and data: How many units or shares changed hands in that day, week or month.

W

Weighted exposureHow Ownsight sees your portfolio: Exposure shown as a percentage of the whole portfolio, so it can be compared across companies.; Related:

Y

YieldInvesting basics: The income from an investment over a year, shown as a share of its price or value.; Related:

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1-in-100 bad dayModel baskets and risk: A day's fall that has been expected to happen about once in 100 trading days under today's market conditions.; Related:

The words we use, in plain English

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