Glossary

Here you’ll find definitions of terms used on the AIC site. Enter the term you want to search for in the box, or click on the letter it begins with.

5 A B C D E F G H I J L M N O P Q R S T U V W Y Z

The London Stock Exchange's principal market for listed companies from the UK and overseas.

The fee charged by a fund manager for managing a portfolio. It’s normally based on a percentage of the assets under management.

A measure of the size of an investment company calculated by multiplying the number of shares in issue by the price of the shares.

For example, if an investment company has 200 million shares in issue, and its share price is £1.50, its market capitalisation would be £300m.

See total assets.

The Member State of reference, for a non-EU investment company which is performing the role of the AIFM, is the Member State in which the investment company is marketed under the AIFM Directive.  If it is marketed in more than one Member State, those Member States decide between them which one is the Member State of reference.

Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC.

Marketing is defined in the AIFM Directive as “a direct or indirect offering or placement at the initiative of the AIFM or on behalf of the AIFM of units or shares of an AIF it manages to or with investors domiciled or with a registered office in the Union”.

More information can be found in the chapter on ‘Marketing’.