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Website Glossary
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A
Accumulation units/shares
With this type of *unit*/*share* any *income* earned on your investment remains accumulated within the price of your units/shares, increasing the value of your holding.
Active managed funds
The IMA definition of an active managed fund is: Funds which offer investment in a range of assets, with the Manager being able to invest up to 100% in equities at their discretion. At least 10% of the total fund must be held in non-UK equities. There is no minimum Sterling/Euro balance and equities are deemed to include convertibles. At any one time the asset allocation of these funds may hold a high proportion of non-equity assets such that the asset allocation would by default place the fund in either the Balanced or Cautious sector. These funds would remain in this sector on these occasions since it is the Manager's stated intention to retain the right to invest up to 100% in equities.
Authorised Corporate Director (ACD)
The term used to describe the manager of an *OEIC* fund. An ACD must manage the OEIC in much the same way as a manager of a *unit trust* (*fund manager*). The ACD manages the OEIC in accordance with the fund's objectives and decides which assets to hold in order to meet those objectives.
Annual management charge (AMC)
A fee paid to the *fund manager* which covers the cost of investment management and administration. It is normally 0.75% - 1.5% p.a. and is charged to the fund on a daily basis. The AMC forms part of the total expense ratio (*TER*) of a fund.
Annual Report
Includes details of the fund's investments and how it has performed with more general financial information relating to the fund. It is available from your *fund manager* at the end of each financial year. See also "*Short Report*".
Assets
The “building blocks” in which a fund invests, for example *stocks and shares*, *cash*, *fixed interest securities* and *property funds*.
Asset allocation
A term to describe how your money is invested. In most cases, the *fund manager* will spread money across a range of different *assets* and companies in order to diversify your holdings and help to spread *risk*.
Authorised investment fund
A *unit trust* or *OEIC* that is regulated by the *Financial Services Authority* (FSA) for promotion to the general public in the UK. All unit trusts and OEICs which are on sale to a retail investor in the UK are authorised by the FSA.