Glossary: g

Gearing: The use of debt financing. The debts of a company expressed as a percentage of its equity capital. If a fund is geared it means that it has the ability to borrow money and therefore take advantage of greater investment opportunities.

 

Gilt edged security: Gilts are bonds issued by the UK Government which pay a fixed rate of interest for a set period of time. At the time of purchasing the bonds the purchaser knows the income that will be received over the life of the bond.

 

Global property securities funds: Fund that invests in shares of property companies around the world.

 

Greenfield site: An area of land which is, or is potentially, available for development but which has not been developed before, eg agricultural land. This is a highly contentious issue, particularly in the UK, where the development of land is split between Greenfield and brownfield sites.

 

Gross fund: A fund which does not pay corporation tax or any other type of tax on income or capital gains, eg pension funds.

 

Ground lease: Is an agreement in which a tenant is permitted to develop a piece of property during the lease period.

 

Ground rent: Rent paid for vacant land which is suitable for development. The ground rent disregards the value of any buildings or other improvements of the land.

 

Growth fund: A fund whose main objective is capital appreciation. Contrasts with an income fund where the main aim is to provide higher than average income in the form of a dividend payment.

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