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Glossary

Use our glossary to search for definitions of some commonly used investment terms.

Absolute return

Absolute return: The total return of an asset, portfolio or fund over a given period of time OR an investment approach that attempts to achieve a return which is not benchmarked against an index.

Accumulation units (Acc units)

Units of a fund in which any interest earned or dividends paid are automatically reinvested into the fund.

Active management

Where a fund manager actively selects investments for a portfolio with the goal of performing better than a benchmark index. See also passive funds.

Active share

Active Share is a measure of the stock holdings in a portfolio that differs from the benchmark index.

Alpha

A measure of fund performance that compares the return of a fund with that of its benchmark, taking account of the risk taken by the fund. Alpha is often considered to represent the value that a fund manager adds to or subtracts from a fund's return.

Alternative investments

Investments outside of traditional asset classes of stocks and bonds. Alternatives include commodities, hedge funds, private equity and unlisted companies.

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Glossary

ESG glossary and definitions

Glossary of terms