Glossary

Bespoke investment solutions are custom made investments, designed uniquely for an individual.

This is a tax which is calculated on the profit which is made through investing. The tax only realises when the investment asset is sold. (Types of assets that incur CGT: stocks, bonds, property, commodities etc)

An approved benefit is one that is provided by the fund and is paid out together with the member’s retirement savings in the fund.

This is the way in which investments can be grouped together into classes. These classes are determined by similar characteristics, laws and legislation. (Some examples of asset classes; equities, real estate, commodities, futures, bonds)

A nominated beneficiary can be chosen on retirement plans. Should the member die before they retire, the nominates parties will receive the retirement savings.

Is a collective-investment-scheme which is also known as ‘pooled investing’. Unit Trusts were the first collective-investment-scheme.

This is a tax that comes from dividend distributions. When investing in a unit trust, some unit trusts have dividend distributions. These distributions will be subject to tax.

This is the risk connected to a security’s value declining if there is a change in market conditions. It estimates how much an investor could stand to lose in a worst-case scenario.

This can also be called critical illness cover. It gives financial protection should you fall victim to a serious illness like cancer or heart attack. This will pay out a tax-free lump sum if the insured is diagnosed with one of the illnesses listed in their policy.

This is an exchange-traded fund. It is a basket of securities that are traded, just like stocks. Like stocks, ETF’s have share prices that fluctuate throughout the day. They are different from buying stocks individually because of expense ratios and broker commission.