Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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NASDAQ

A US stock exchange specialising in the shares of technology companies.
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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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Base rate

What's the base rate?
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Conventional gilts

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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Annualised Rate of Return

The average annual return an investor sees over a set period of time.
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LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.
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Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.
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Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.
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Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.
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