Here is a simple reference guide to some of the technical terms that you may come across as you explore our funds.
Absolute return funds
Absolute return strategy
Bonds issued by government-sponsored entities or by a federal government department other than the US Treasury.
Annual management charge
Assets under management (AUM)
Bank of England
Bank of England base rate
Below investment grade bonds
Cash and cash equivalents
Cash flow statement
Collective investment scheme
Contract for differences (CFD)
Consumer Price Index (CPI)
Contingent Convertible Bonds
Contingent convertible bonds, often referred to as CoCos, are high-risk, high-yield securities issued by banks that can be exchanged for common stock in the issuing bank.
Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company.
Bonds issued by companies to raise money. The company agrees to pay interest and repay the initial amount invested at a specified point in the future.
A covered bond is a package of loans issued by a bank and then sold to a financial institution. That company then assembles the investments into packages and issues them as bonds.
Credit rating agency
A measure of a bond’s sensitivity to changes in interest rates. The longer the duration, the more sensitive it is.
Earnings per share (EPS)
Often referred to as an initial charge, this is the charge that may be taken from your investment before the deal is placed in your chosen fund.
Exchange-traded fund (ETF)
Financial Conduct Authority (FCA)
Fixed-term savings accounts
Fund of funds
Guaranteed income bonds
High yield bonds
Initial public offering (IPO)
Investment grade bonds
The company appointed by Columbia Threadneedle Investments that is responsible for the management and investment of money held within a fund. The details of this appointment are set out in the fund’s prospectus.
Key Investor Information Document (KIID)
Money market instruments
Mortgage and Asset-backed securities
Mortgage-backed securities are created from the pooling of mortgages while asset-backed securities are created from the pooling of non-mortgage assets. Both are then sold to interested investors.
Net asset value (NAV)
Net and gross exposure
Non-Investment Grade Bonds
Corporate bonds issued by companies with poorer credit quality, rated below investment grade standard by rating agencies.
The cost of management of a fund represented as a percentage. It is usually based on the last year’s expenses and may vary from year to year. It includes charges such as the fund’s annual management charge, registration fee, custody fees and distribution cost but excludes the costs of buying or selling assets for the fund (unless these assets are shares of another fund).
In some cases, the ongoing charges figure may be based on an estimate of future charges, either because the share/unit class is relatively new and has an insufficient track record to be calculated exactly, or if historic figures are unlikely to accurately reflect future ongoing costs. The fund’s annual report for each financial year will include details of the exact charges applied. An OCF shown with an asterisk (*) indicates an estimated figure.
For a more detailed breakdown please visit www.columbiathreadneedle.com/fees.
OEIC (open ended investment company)
Portfolio Turnover (Annual)
Price-to-earnings (P/E) ratio
Profit & loss (P&L)
Property expense ratio (PER)
Prudential Regulation Authority (PRA)
Real estate investment trust (REIT)
Risk and reward profile
Rolling three-year period
SICAV (Société d'investissement à capital variable)
Bonds issued by a government to raise money for spending requirements. These can be issued in the country’s local currency or in a foreign currency.
An account that aims to protect your savings or investments from taxation.