Copy of `Scandia - Glossary of economics`

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Scandia - Glossary of economics
Category: Economy and Finance
Date & country: 20/09/2007, UK
Words: 329

Top Down Analysis
A country`s economy is considered before deciding which industry in which to invest. Economic conditions determine which industries or sectors will return well and then attractive stocks are bought within those industries.

Top Slicing
A method of calculating Income Tax liability on a chargeable gain from certain packaged products.

Abbreviation for Tokyo Price Index. A Japanese share price index measuring share prices of selected large companies listed on the Tokyo Stock Exchange.

Tracking Error
The degree of proximity with which an actual portfolio follows a representative market index. Technically the tracking error is represented by the standard deviation of the differences in return between the portfolio and the index. Tracking error measures the likelihood (based on historical data) of actual returns differing from index returns.

Treasury Bills
Short term negotiable debt obligations of the US government with maturities of one year or less issued at a discount from face value.

Treasury Bonds
Long term negotiable debt obligations of the US government with maturities of 10 years or longer.

Treasury Notes
Intermediate term negotiable debt obligations of the US government with maturities of 1 to 10 years.

A legal obligation binding a person (the trustee) to deal with property over which he has control for the benefit of certain people (the beneficiaries) of whom the trustee may himself be one.

The name given to the fund analysis reports provided to Financial Advisers by Skandia UK via their online service U Select Online.

UK Resident (for tax purposes)
If you are physically present in the UK for six months in a tax year then you will be resident in the UK and taxable on your income and capital gains.

Under Funded
Generally refers to the valuation of a Final Salary Occupational Pension Fund where the actuary perceives that there are insufficient funds to support liabilities within the investment review period.

Under Insured
When the maximum sum a company will pay out to cover a claim is less than the value of the loss or damage.

Underlying fund
This is the legal entity fund(s) that your investment choice is invested in.

Achievement of a lower investment return than a benchmark or other measure (e.g. competitor portfolios) against which that return is being compared (As opposed to Outperformance).

An individual who decides whether or not to accept a risk and calculates the premium to be paid.

Unit Linked
Where the value of the saver's fund is linked to the value of the units of the Trust or Life Company Fund it is invested in.

Referring to a company and/or shares that are not available for purchase or sale through the stockmarket.

Unlisted Securities
Securities which are not listed on an organised stock exchange.

The value or worth of a portfolio of investments or life/pension policies recorded on a statement. Not necessarily the amount available if cashed-in.

Value Investor
One who seeks to buy shares when they are under priced and to take profits when they appear over valued. The Price/Earnings Ratio is a key valuation measure.

Value Stocks
Shares in companies that are considered to be good value. Usually they are trading at a price that is low either historically or relative to its peer group.

Variable Rate Mortgage
A mortgage where the interest rate can move up and down. It is usually based on base rate.

A measure of dispersion of returns on investments based on deviations from the average or mean value.

Waiver of Premium
An optional feature on some life policies where the insurance company will pay the premiums if the policyholder becomes ill.

Whole Life Policy
Life assurance that a customer pays throughout the whole of their life and that pays out whenever they die.

A legal document which lays out how the estate is to be distributed after the death of the Testator. The estate is administered by Executors on death.

Wrap Account
This is the name given to an individual`s aggregated details available to a financial adviser via the Skandia online Wrap Service.

Wrap Service
This is an online service provider to Financial Advisers by Skandia to enable them to see details of their clients` Skandia holdings in an easy to use format.

A measure of the income received from an investment compared to the price paid for the investment. Normally expressed as a percentage.