A
ABC Strategy: Asset allocation that shifts from Aggressive to Balanced to Cautious over time.
Absolute Return: Strategy aiming to deliver positive returns in any market condition.
Account Value: The total value of an investment account, combining Fund Units and Establishment Units.
Active Management: Investment approach where managers aim to outperform benchmarks by selecting specific assets.
Admin Fee: A charge applied to accounts, mainly over Establishment Units.
Admin User: Platform user with full administrative permissions.
Administrator: Entity responsible for regulatory and administrative oversight.
Advisor Portal: Digital interface for financial advisors.
Allocation Rate: Percentage of a contribution allocated to an investment.
Alpha: Excess return above the benchmark.
Alternatives: Non-traditional assets like real estate, commodities, or private equity.
AMC (Annual Management Charge): Fee charged by fund managers annually.
AML / CFT / CPF: Anti-Money Laundering, Countering Terrorist Financing, and Countering Proliferation of Weapons of Mass Destruction.
Application Form: Document used to apply for an account.
Arrear: Account status indicating missed contributions.
AUM (Assets Under Management): Total value of assets managed by an institution.
B
Beta: Measures a fund’s volatility compared to the market.
BNY Mellon: Custodian bank safeguarding client funds.
Bond: Fixed-income security representing a loan.
Bull Market / Bear Market: Rising / falling market environments.
C
Capital Protection: Mechanism to protect a portion of investment value.
Cash: Safest asset class, offering high liquidity and low return.
Client Monies Account: Segregated bank account for client funds.
Client Portal: Web-based investor access to account and documentation.
Collection: Credit card billing process for account payments.
Compliance Form: Documentation required to meet regulatory standards.
Contribution: A payment made into an investment account.
Credit Spread: Yield difference between corporate and government bonds.
Currency Hedging: Strategy to mitigate foreign exchange risk.
Custodian: Institution responsible for safeguarding assets.
D
Dashboard: Summary interface showing account and portfolio data.
Dealing: Execution of buy/sell orders for securities.
Deflation: General decline in prices across an economy.
Delegated Switching Authority (DSA): Allows adviser to switch investments without client approval.
Diversification: Spreading investments to manage risk.
Dividend: Profit distributed to shareholders.
Dollar Cost Averaging: Investing a fixed amount regularly regardless of market conditions.
Drawdown: Decline from a peak in the value of an investment.
Duration: Sensitivity of bond prices to interest rate changes.
E
Equities: Shares representing ownership in companies.
ETF (Exchange-Traded Fund): Index-tracking investment fund traded on exchanges.
EU (Establishment Units): Units reserved to cover product charges.
ESG: Environmental, Social, and Governance investment factors.
Execution SLA: Service standard to process transactions, typically within 24 hours.
Exchange Rate: Value of one currency in relation to another.
F
Factor Investing: Strategy focusing on characteristics that drive asset returns.
Fees: Charges applied to accounts and investments.
Financial Advisor: Professional guiding investment decisions.
Fiscal Policy: Government taxation and spending policy.
Fixed Income: Securities like bonds that provide fixed returns.
FNZ: Technology provider behind the investment platform.
Freeze: Temporary suspension of regular contributions.
Fund Advisory Fee (FAF): Ongoing fee paid to advisors for asset management.
Fund Switch: Moving investments between funds.
Fund Units: Units representing holdings in investment funds.
Fund Value: The portion of the account invested in funds.
Funds Monitor: Tool for viewing fund details on the platform.
G
Gap Payment: Payment to restore account to Protected Value.
GDP (Gross Domestic Product): Total economic output of a country.
GDPR: Data protection regulation in the EU.
Guernsey Financial Services Commission (GFSC): Regulator of financial services in Guernsey.
H
Hurdle Rate: Minimum return needed before performance fees are applied.
High-Water Mark: Highest point an account must surpass before new performance fees are charged.
I
Illustration: Forecasted value of an investment account under different scenarios.
Inflation: General rise in prices over time.
Investment Objective: Target outcome for a portfolio (e.g., growth or income).
Interest Rates: The cost of borrowing or reward for saving.
Index: Group of securities representing a market or segment.
K
KYC (Know Your Customer): Regulatory requirement to verify client identity.
L
Lump Sum: One-time investment.
Liquidity: Ease of buying or selling an asset.
Login / Log out: Access credentials for digital platforms.
M
Market Capitalization: Total value of a company’s outstanding shares.
Mobile App: Smartphone-based access to investment accounts.
Monetary Policy: Central bank actions influencing money supply and rates.
Mutual Fund: Pooled investment vehicle managed by professionals.
N
NAV (Net Asset Value): Value per unit/share of a mutual fund.
Notification: In-app or email message about account activity.
O
OCF (Ongoing Charges Figure): Total annual cost of managing a fund, including performance fees.
Onboarding: Process of opening and activating an investment account.
On Client / On Company / On Compliance: Status indicators showing where a transaction is in the review process.
P
Passive Management: Investing in funds that track a benchmark index.
PIP (Protected Investment Portfolio): Investment strategy offering downside protection.
Portfolio: Group of financial assets owned by an investor.
Processing Time: Expected duration to complete a transaction.
Protected Value: Guaranteed minimum value under PIP.
PwC: External auditor.
Q
Quantitative Easing (QE): Central bank strategy to inject liquidity by purchasing assets.
R
Recurring Contribution: Scheduled investment into a plan.
Redemption: Withdrawal of funds from an investment account.
Redemption Value: Amount available for withdrawal after deducting Establishment Units.
Risk Profile: Assessment of an investor’s risk tolerance.
Running / Redeemed / Surrendered / Lapsed / Live: Account or transaction status descriptions.
S
Sharpe Ratio: Return per unit of risk.
Segregated Account: Client assets held separately from company assets.
Source of Funds / Source of Wealth (SOF/SOW): Origin of investment capital.
Stagflation: Economic stagnation combined with inflation.
Standard Deviation: Measure of volatility.
Switch: Exchange of one investment fund for another.
T
TER (Total Expense Ratio): Total ongoing cost of a fund.
Terms & Conditions: Legal framework governing your account.
Transaction: Any action involving your account.
Transaction Approval / History: Confirmation process and record of account activity.
Trust: Legal structure holding assets on behalf of beneficiaries.
U
Unemployment: Economic measure of those seeking work but unable to find employment.
V
Valuation: Estimation of an asset’s worth.
Volatility: Degree of fluctuation in investment value.
W
WMI (Wealth Management Institution): Advisory firm referring clients to the investment platform.
Withdraw: Action of removing funds from an account.
Yield: Income from an investment, typically from dividends or interest.