Dictionary
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Nominal amount

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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OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.
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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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Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.
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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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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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Over-The-Counter (OTC)

A security that is sold outside of an exchange.
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Alpha

The percentage by which an investor outperforms a relevant benchmark.
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Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.
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Securities

Bonds and stocks.
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