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Conventional gilts

Conventional gilt

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

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Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
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Total Return

This is the measurement of a fund’s performance in a specific period.
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Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.
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Rate of Return

Profit on an investment, expressed as a percentage of the investment.
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United States Dollar (USD)

The famous greenback our friends in the US use as currency.
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OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.
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Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
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Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.
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