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An investment company whose assets are managed by its own team of managers or by the directors of the company, rather than by external fund managers.

Redemption price

The amount that a share or security is due to be paid at the end of its life if there are sufficient assets.

Private equity

Investing in shares of private companies, as opposed to companies whose shares are traded on stock markets.

Prior charges

An amount which must be paid by the company before the shares you hold can receive certain payments they are due. Prior charges may include borrowings or shares which are higher in the order of priority.


The amount, expressed as a percentage, by which the share price is more than the net asset value per share.

Pound-cost averaging

Buying shares on a regular basis to smooth out the ups and downs in the share price.

Portfolio yield

The expected income from the portfolio over the next 12 months as a percentage of the total assets.


A collection of different investments selected by fund managers to deliver returns to investors and to spread risk.

Performance fee

A fee sometimes paid on top of a management fee if an investment company outperforms its benchmark or meets other conditions.