Glossary: a

Abandonment: The optional relinquishment of a property or an interest in a property, where there is no intention of resuming possession of the property or of holding rights in it.

 

Accrued interest: Adjustment made to bond prices to allow for the fact that interest is paid at set intervals but earned on a daily basis.

 

Accumulation units: Units which do not pay income but roll the income into the value of the units.

 

Adjusted EPS: Deferred tax associate with invested capital. Earnings per share of revenue profits versus capital investment in property.

 

Adjusted figures: Reported amount adjusted to exclude the results of property sales and bid costs.

 

Adjusted NAV per share: Net asset value per share adjusted to add back deferred tax associated with investment property, together with any accounting deficits in joint ventures that do not represent actual liabilities.

 

Alternative investments: Any investment other than equities and fixed income, such as property, private equity and hedge funds.

 

Anchor tenant(s): One or more large shops or supermarkets introduced to a shopping centre in major positions to tempt shoppers into the centre and encourage other retailers to lease units.

 

Annual charge: A fund’s annual fee, calculated on a daily basis, which covers the cost of running the fund.

 

Annualised net rents: Gross rents plus, where rent reviews are outstanding, any increases to estimated rental value (as determined by external valuers), less any ground rents payable under head leases.

 

Annuity: A regular stream of payments made to an individual for a specified time period, such as a stream of payments made to a policyholder from an insurance company at retirement, or the payment of interest made to a bondholder.

 

Appraisal: The valuation of the expected future performance of an investment which can be used to determine value and/or the risk associated.

 

Appreciation: Increase in the value of an asset.

 

Ask price: Price at which a market maker will sell stock. Also known as the offer price.

 

Asset allocation: The proportion of investment or assets placed in a specific variety of geographic regions, industry sectors or types of security.

 

Asset class: Types of assets that have similar characteristics. Commonly known asset classes are; Cash, Equities, Fixed Income/Gilts and Property.

 

Assets: Any possession that has a resale value. The investments within a fund are assets; they may include shares, bonds and/or cash.

 

Authorised Unit Trust: UK-based unit trust that has applied to FSA for this status, enabling the units to be marketed to all types of customers. FSA rules regulate the assets in which an authorised unit trust is permitted to invest.

 

Average maturity: A statistic relating to bond funds which provides the weighted-average maturity of all the bonds within a fund. The maturity of a bond is the time at which the principal of a bond is repayable and it ceases to exist.

 

Average unexpired lease term: Excludes short term lettings such as car parks and advertising hoardings, residential leases and long ground leases.

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