Dictionary
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Coupon

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

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UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
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Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.
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Professional Client

An investor that is able to meet several regulatory criteria.
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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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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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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Equity ETF

An exchange-traded fund that is comprised of a set of stocks.
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Rate of Return

Profit on an investment, expressed as a percentage of the investment.
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Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).
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