Table of Contents for Index

herding and myopic thinking

real and nominal assets

Bank of England (BOE)

base rate, 2^nd, 3^rd, 4^th, 5^th, 6^th

interest rates

banks, 2^nd, 3^rd

behavioural finance

cognitive biases

know yourself

mental accounting

prospect theory

benchmarks in portfolio management

beta returns, 2^nd, 3^rd, 4^th

Blind Person’s Allowance

bonds, 2^nd

and active management

asset allocation, 2^nd, 3^rd, 4^th, 5^th

asset classification, 2^nd, 3^rd

alpha returns

blended portfolios

corporate bonds, 2^nd, 3^rd

cost of default

currency management

emerging markets, 2^nd, 3^rd

expected return on

high yield

inflation-linked

and infrastructure investing

investment bonds

and lifecycle investing

and monetary policy

over-the counter (OTC) trading

risk measures, 2^nd, 3^rd

yield curves, 2^nd, 3^rd

yield to maturity (YTM), 2^nd, 3^rd, 4^th

see also gilts; government bonds (govies)

buy-to-let, 2^nd, 3^rd, 4^th

mortgages, 2^nd, 3^rd, 4^th

rental yield

selling

taxes, 2^nd

CAPE (cyclically adjusted price-to-earnings) ratio, 2^nd

Capital Asset Pricing Model (CAPM)

Capital Gains Tax (CGT), 2^nd, 3^rd

allowable losses

Annual Exempt Amount

buy-to-let properties, 2^nd, 3^rd

chargeable assets/gain

exemptions

capital market assumptions see CMAs (capital market assumptions)

capital preservation, 2^nd, 3^rd, 4^th

CAPM (Capital Asset Pricing Model)

career average

cash assets, 2^nd, 3^rd, 4^th

allocations, 2^nd, 3^rd, 4^th, 5^th

expected return on

liquidity constraints, 2^nd

cash flow management

cash ISAs, 2^nd, 3^rd, 4^th

CEFs (closed-end funds)

Child Trust Funds

children

and inheritance tax

Junior ISAs, 2^nd, 3^rd

pensions for

CIRP (Covered Interest Rate Parity)

CISs (collective investment schemes), 2^nd

CMAs (capital market assumptions)

and asset allocations, 2^nd, 3^rd

calculating portfolio volatility

commodities, 2^nd, 3^rd, 4^th, 5^th

conservative capital preservation

contrarian investing

corporate bonds, 2^nd, 3^rd

counterparty risk, 2^nd

couples, 2^nd

Covered Interest Rate Parity (CIRP)

CRE (commercial real estate)

credit ratings

DB (defined benefit) pensions, 2^nd, 3^rd, 4^th

final salary pensions, 2^nd, 3^rd

liabilities and risks, 2^nd

DC (defined contribution) pensions, 2^nd

Additional Voluntary Contributions (AVCs)

money purchase annual allowance

taking lump sums from

death in service benefits

death-dependent annuity

default investment strategies, 2^nd

deferred annuities

derivatives, 2^nd, 3^rd, 4^th, 5^th

DGFs (Diversified Growth Funds), 2^nd, 3^rd

discounted cash flow (DCF) model

diversification, 2^nd, 3^rd, 4^th

blended portfolios

local versus global

and Modern Portfolio Theory (MPT)

multi-asset investing

three buckets approach to, 2^nd

Diversified Growth Funds (DGFs), 2^nd, 3^rd

dividend discount model (DDM)

dividend tax

dollar-cost averaging

double-dip recession

downside risk, 2^nd, 3^rd

dynamic SAA, 2^nd, 3^rd, 4^th, 5^th, 6^th

economic cycle

depressions

growth/expansion, 2^nd

the investment clock

output gap

recession, 2^nd, 3^rd, 4^th

Efficient Market Hypothesis (EMH)

emerging market debt (EMD), 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th

emerging market equities (EME), 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th

emerging markets, 2^nd, 3^rd

endowment effect

Enterprise Investment Scheme (EIS)

Environmental, Social and Governance (ESG)

equities, 2^nd, 3^rd

asset allocation, 2^nd, 3^rd, 4^th, 5^th

asset classification, 2^nd, 3^rd, 4^th

alpha

risk premiums

and bonds

capital market assumptions, 2^nd, 3^rd

currency management

dividend tax

dividend yield, 2^nd, 3^rd, 4^th

earnings growth

and the economic cycle, 2^nd

EME, 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th

equilibrium

global, 2^nd, 3^rd, 4^th, 5^th

and inflation

Initial Public Offering (IPO)

investment principles

liquidity constraints

price and value

private equity, 2^nd, 3^rd

UK, 2^nd, 3^rd

historic performance, 2^nd

portfolio diversification, 2^nd

volatility of

equity commodities

equity release

equity risk premium (ERP), 2^nd, 3^rd, 4^th

estate planning, 2^nd

ETFs (exchange traded funds)

European debt crisis

Eurozone, 2^nd

exchange rates

expected liquidity needs

factor investing

factor-based investment cycles

fair-weather investing

Fama-French three-factor model

fat tails, 2^nd

fee budget

financial advisers, 2^nd

Financial Conduct Authority (FCA), 2^nd

financial crisis (2008), 2^nd, 3^rd, 4^th

Financial Services Compensation Scheme (FSCS)

fiscal policy

fixed income investments see bonds

fixed income risks

fixed-rate mortgages, 2^nd

Flexible-Access Drawdown (FAD)

flight to quality, 2^nd

FoFs (fund of funds)

frontier markets

FTSE 100 Index, 2^nd, 3^rd

expected returns

market leadership

return objectives, 2^nd, 3^rd

fund managers

active management, 2^nd

active versus passive, 2^nd

manager risk

performance fees

philosophy, 2^nd

funds

selection based on past performance

versus individual securities

futures, 2^nd

FWI (Fundamentally Weighted Index)

IG bonds, 2^nd, 3^rd

IG credit, 2^nd, 3^rd, 4^th

market cap indices

impact investing

income drawdown, 2^nd

income generation, 2^nd, 3^rd

income and growth strategy

income protection insurance

income tax, 2^nd

on rental profits, 2^nd

index trackers, 2^nd, 3^rd

passive

tracking errors, 2^nd, 3^rd, 4^th

inflation, 2^nd

and asset classes, 2^nd

and DB pensions

deflation

and interest rates, 2^nd

and investment outcomes, 2^nd

return objectives

and lifecycle investing, 2^nd, 3^rd

nominal and real return on, 2^nd

and real assets

and residential property prices

risk, 2^nd

stagflation, 2^nd

inflation-linked bonds (linkers)

infrastructure investing, 2^nd, 3^rd, 4^th, 5^th

inheritance tax (IHT), 2^nd, 3^rd

buy-to-let properties

insurance, 2^nd

insured funds

interest rates

bank deposits

Bank of England (BOE) base rate, 2^nd, 3^rd, 4^th, 5^th, 6^th

Investment Association (IA)

investment bonds

investment clock

investment constraints

fund managers, 2^nd

legal and regulatory, 2^nd, 3^rd

liquidity, 2^nd

special circumstances, 2^nd

taxes, 2^nd, 3^rd

time horizons, 2^nd

investment management agreements (IMAs)

investment objectives, 2^nd, 3^rd

lifecycle investing

investment opportunity set

investment outcomes

annuities, 2^nd, 3^rd

required versus desired outcomes, 2^nd

hedge liabilities

income

and inflation, 2^nd

Investment Policy Statement (IPS)

investment spectrum

investment strategy, 2^nd, 3^rd, 4^th

and asset allocation

governance budget

investment-linked annuities

see also SAA (Strategic Asset Allocation)

investment trusts

IPS (Investment Policy Statement)

ISAs (Individual Savings Accounts), 2^nd, 3^rd, 4^th, 5^th

allowance

benefits of

cash flow management

cash ISAs, 2^nd, 3^rd, 4^th

compared with pensions, 2^nd, 3^rd

investment constraints, 2^nd

stocks and shares ISAs, 2^nd

Junior ISAs, 2^nd, 3^rd

and lifecycle investing, 2^nd, 3^rd, 4^th, 5^th, 6^th

lifetime

and mortgages

self-select

transferring

joint life annuities, 2^nd

Junior ISAs, 2^nd, 3^rd

KIID (Key Investor Information Document)

lagging indicators

LDI (Liability Driven Investment), 2^nd

leading indicators

legal constraints on investment, 2^nd

leverage

hedge funds

mortgages

liabilities

hedging, 2^nd, 3^rd, 4^th

life expectancy, 2^nd

and longevity risk, 2^nd

life insurance, 2^nd, 3^rd

lifecycle investing

accumulation phase, 2^nd, 3^rd, 4^th

consolidation phase, 2^nd

de-accumulation phase, 2^nd, 3^rd

financial life plan

lifestyle funds

lifetime allowance (LTA), 2^nd, 3^rd

lifetime mortgages (term trackers), 2^nd

limit order

linkers (inflation-linked bonds)

liquid alternatives

liquid investments

generating income from

liquidity

bonds, 2^nd

constraints, 2^nd

investment trusts

listed alternatives, 2^nd

and property investment

liquidity risk, 2^nd

premium

local diversification

long-only funds

longevity risk, 2^nd, 3^rd

and lifecycle investing, 2^nd

lottery winnings

lump sums

and annuities, 2^nd, 3^rd

from pension pots, 2^nd, 3^rd, 4^th, 5^th

NEST pensions

net return

NICs (National Insurance Contributions), 2^nd

nominal assets

normal distribution

NURS (non-UCITS Retail Scheme)

OCF (Ongoing Charge Figure), 2^nd

OEICs (open-ended investment companies), 2^nd

offset mortgages

offshore funds (SICAV)

offshore pension schemes

oil prices

options, 2^nd

output gap

P/E (price to earnings ratio), 2^nd, 3^rd

passive index trackers

passive investors

path-dependent dynamic risk budgeting

peer group benchmarking

Pension Benefit Statement, 2^nd

pension commencement lump sum (PCLS)

Pension Protection Fund

Pension Tracking Service

Pension Wise

pensions, 2^nd, 3^rd, 4^th

children’s

compared with ISAs, 2^nd, 3^rd

drawing income from

exhaustion rates

inheritance tax (IHT)

investment constraints, 2^nd

maximising contributions, 2^nd

pension pots

personal pensions, 2^nd, 3^rd

retirement age

see also DB (defined benefit) pensions; DC (defined contribution) pensions

Pensions Advisory Service (TPAS)

Pensions and Lifetime Savings Association (PLSA)

personal pensions, 2^nd

contributing to someone else’s

Phillips curve

platforms, 2^nd, 3^rd

portfolio management

budgets

cash flow

core-satellite construction

reviewing performance, 2^nd

trade orders

see also diversification; fund managers

PPP (Purchasing Power Parity)

Premium Bonds

price movement, 2^nd

price return, 2^nd

principal-agent problem

private equity, 2^nd, 3^rd

property, 2^nd, 3^rd, 4^th

capital market assumptions, 2^nd

classification of, 2^nd

direct

REITs, 2^nd, 3^rd

rental yield, 2^nd, 3^rd

UK IPD TR All Property Index, 2^nd

see also buy-to-let; residential property

prospect theory

quantitative easing (QE), 2^nd

random walk theory

RDR (retail distribution review)

real assets

recency effect

regret risk

regulatory constraints on investment, 2^nd, 3^rd

REITs (Real Estate Investment Trusts), 2^nd, 3^rd

relative return objectives

relative risk

replication methodology

representativeness bias

residential property, 2^nd, 3^rd, 4^th

owning your house, 2^nd

buying or renting

house prices

selling

see also buy-to-let; mortgages

returns, 2^nd, 3^rd

gross versus net return

historic performance of assets, 2^nd

and investment constraints

and investment strategy, 2^nd

investment versus saving

net return and need to take risk

linking risk and return

nominal and real return on inflation, 2^nd

price return

relative versus absolute return, 2^nd

return versus absolute return strategies

shortfall risk

target return, 2^nd

total return (TR), 2^nd, 3^rd

risk, 2^nd, 3^rd, 4^th, 5^th

asset classes, 2^nd, 3^rd

counterparty risk, 2^nd

expected

asset allocation

and expected returns

historic performance of assets

idiosyncratic

lifecycle investing, 2^nd, 3^rd, 4^th, 5^th, 6^th

linking risk and return

longevity risk

management, 2^nd, 3^rd, 4^th

market-cap indices

measuring, 2^nd

absolute versus relative risk

fixed income risks

liquidity risk

risk-adjusted performance

and Tactical Asset Allocation

and time horizons, 2^nd

tolerance, 2^nd, 3^rd, 4^th, 5^th, 6^th

see also volatility

risk assets, 2^nd, 3^rd

risk diversifiers

risk premiums, 2^nd, 3^rd

robo-advisors

S&P 500 Index

SAA (Strategic Asset Allocation), 2^nd, 3^rd

dynamic, 2^nd, 3^rd, 4^th, 5^th, 6^th

and passive index trackers

portfolio management, 2^nd

saving for retirement, 2^nd, 3^rd

how much to save, 2^nd

and investment returns

see also ISAs (Individual Savings Accounts); pensions

savings, 2^nd, 3^rd

Schiller P/E

securities, 2^nd

funds versus individual

lending, 2^nd

selection bias

self-attribution bias

self-employed pensions, 2^nd, 3^rd

settlement period, 2^nd

share classes, 2^nd, 3^rd

Sharia law

Sharpe ratio, 2^nd, 3^rd, 4^th, 5^th

asset allocations, 2^nd

portfolio diversification, 2^nd

shortfall risk

shorting

SIPP (self-invested personal pensions), 2^nd, 3^rd, 4^th

socially responsible investing (SRI)

stakeholder pensions, 2^nd

stamp duty, 2^nd, 3^rd, 4^th, 5^th, 6^th

standard deviation, 2^nd, 3^rd, 4^th

three-asset

state pension, 2^nd, 3^rd

statistical significance

status quo effect

Statutory Money Purchase Illustration

stocks and shares ISAs, 2^nd

stop loss order

Strategic Asset Allocation see SAA (Strategic Asset Allocation)

TAA (Tactical Asset Allocation), 2^nd, 3^rd, 4^th

MVST framework

target asset allocation

target date funds (TDFs)

target return, 2^nd

tax relief on pensions, 2^nd, 3^rd, 4^th

lifetime allowance (LTA), 2^nd, 3^rd

taxes, 2^nd, 3^rd, 4^th, 5^th

buy-to-let

DB pensions

inheritance tax (IHT), 2^nd, 3^rd

and investment constraints, 2^nd, 3^rd

and mortgage payments

pensions death tax

professional advice on

reporting fund status

stamp duty, 2^nd, 3^rd, 4^th, 5^th

tax efficient schemes

tax-efficient savings

see also Capital Gains Tax (CGT); income tax

TER (Total Expense Ratio), 2^nd

term assurance

term premium

terminal asset allocation

time horizons, 2^nd, 3^rd

asset allocation

investment growth over time

traditional investments, 2^nd

and money market funds

and risk, 2^nd

total return (TR), 2^nd, 3^rd

tracker mortgages

trade orders

trading rules