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.
Real Return
The Return from an investment adjusted to take into account the effect of inflation.
Recession
A fall in economic activity. Technically, for an economy to be in Recession, it must have endured two successive quarters of falling GDP.
Retail Prices Index (RPI)
A monthly indication of the average price changes to a particular ‘basket’ of consumer goods, and used as a general indicator of price inflation.
Risk Profile
An assessment of an investor's willingness and ability to accept investment risk in pursuit of returns. Typically expressed on a scale from cautious to aggressive, it informs portfolio construction and asset allocation decisions.