Glossary of terms

Redemption is the act of selling units or shares in a fund back to the fund manager.

Redemption yield is the estimated total annualised return on a fixed income security (such as a bond), made up of income plus any gain or loss to the date of redemption.

The registered office is the legally-registered address of a corporate entity, such as a company or fund, where all official documents, notices and court papers are sent.

The registrar is the person responsible for keeping a register of shareholders (members) in a company or fund (such as a unit trust or OEIC) and issuing certificates for individual quoted companies. The registrar also deals with other member administration including dividend distribution, rights and scrip issues, etc. For smaller private companies this work is usually done by the company secretary.

Reinvestment of income refers to income or dividends paid by a company or fund which are reinvested to purchase further units or shares in the existing investment vehicle.quishing his or her rights to the beneficial ownership of the units or shares in the fund.

Renunciation refers to a fund investor relinquishing his or her rights to the beneficial ownership of the units or shares in the fund.

In investment terms, a return is the amount by which an investment increases (a positive return) or decreases (a negative return) in value after interest and dividend income and capital growth have been taken into account.

In investment terms, risk refers to the chance of incurring a loss from an investment.

Some funds are riskier than others (ie- have a greater or lesser chance of losing value). One indicator of risk is the Synthetic Risk and Reward Indicator (SRRI), which is intended for investors and potential investors. It displays the historic volatility of a fund’s performance and categorises it accordingly. The SRRI's range of values is from 1 (lower risk) to 7 (higher risk). All collective investment schemes (funds such as OEICs and unit trusts) are required to calculate and disclose the SRRI for the scheme. It is important to understand that the risk rating of a fund is not static as it will be calculated on an ongoing basis using the most recent data about a fund.

The risk/return factor is the relationship between an investment's potential return and its likelihood of losing value. The principle is that potential return rises with an increase in risk. Low levels of uncertainty (low risk) are associated with low potential returns, whereas high levels of uncertainty (high risk) are associated with high potential returns.

A rolling three year-period means any period of three years, no matter which day you start on. A rolling time period, such as three years, is sometimes referred to in the investment objective of a fund and is useful for examining the behaviour of investment returns over the period.

The running yield is the current level of income/dividend payments made by a fund or a bond.