Glossary of terms: a

Accumulation shares

A type of share where distributions are automatically reinvested and reflected in the value of the shares.

Accumulation units

A type of unit where distributions are automatically reinvested and reflected in the value of the units.

Active management

An approach to investing whereby capital is allocated according to the judgment of the investor or fund manager(s). The active investor aims to beat the returns from the stock market or specified index/sector, rather than to match them.

Active manager

A fund manager who follows an active approach to investing. The active investor aims to beat the returns from the stock market or specified index/sector rather than to match them.

AFME

Association for Financial Markets in Europe

Asset

Anything having commercial or exchange value that is owned by a business, institution or individual.

Asset allocation

Apportioning a portfolio’s assets according to risk tolerance and investment goals.

Asset class

Category of assets, such as cash, company shares, fixed income securities and their sub-categories, as well as tangible assets such as real estate.

Average Rating

Calculated on the weighted average rating on the fund’s assets excluding cash with assets rated ‘Non-Rated’ receiving the lowest score.