Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
More terms
American Depository Receipt (ADRs)
Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.
An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.
A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
