Financial Glossary
Key terms explained in plain English, no jargon, no complexity. We appreciate our industry uses a lot of financial ‘jargon’, which can make it difficult to decipher information and correspondence. In order to try to assist with this, we have created a glossary of many of the terms you may come across. If you would like further clarification on any of the definitions, or cannot find a particular term, we would be happy to assist further.
Base Rate
An interest rate set by the Bank of England which is used as a benchmark by UK lenders.
Benchmark
A tool with which to measure a fund’s performance – often a market Index or model portfolio.
Beneficiary
This is someone who benefits from a will, trust, pension fund or a life assurance policy.
Bond
A fixed-income instrument representing a loan made by an investor to a government or company. Bonds pay regular interest (the coupon) and return the principal at maturity.