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index-linked gilts

Index-linked gilts

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.

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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
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Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.
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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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Retail Prices Index (RPI)

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.
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Beta

Learn what Beta stands for in finance.
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Costs and Charges

The money you pay when investing.
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Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..
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Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.
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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.
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