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Securities that contain similar characteristics and behaviour in the market.
See our section on Benchmarking for more information.
A purchase of debt from a company or government. The issuer of the bond then pays the investor interest at certain intervals over the length of the loan, these payments are called coupons.
The term broadly means the money available for a company to spend on improving itself. It has slightly different definitions depending on where it’s used. Capital expenditure refers to expenditure expected to reap future benefits. Capital appreciation can refer to the rising price of securities, and is a goal for investment funds.
Combined Heat and Power, a form of energy generation that utilises the heat by-product of energy generation.
Combustion Engine Vehicle
A vehicle which uses the burning of fuel to power its engine.
A physical good, such as oil or metal. A commodity used for trading will be homogenous; each individual commodity will not be differentiated.
Crown Ratings are compiled by Financial Express. See their site for more information.
Corporate Social Responsibility
The UK government Department for Energy and Climate Change, which provides policy, legislation and research in these issues.
The UK government Department for Environment, Food and Rural Affairs, which provides policy, legislation and research into environmental and sustainable issues.
The process of distilling water to remove salt and other minerals to make it suitable for use in agriculture, industry or consumption.
A part of the company’s profits paid out to shareholders.
Investing in companies operating in environmental industries such as water, energy efficiency, carbon emissions or forestry. This category also includes funds that are focused on climate change. See: What is an environmental fund?
Environmental, Social, and Governance issues that may be considered for investment.
The application of ethical criteria in order to screen out companies that may be deemed by a fund manager as unsuitable for investing in. See our section on Ethical Screens for more information.
The ratio between distance travelled and fuel used. In the US this is measured in miles per gallon and in the EU as litres per 100km.
A collective investment where many individual investors pool their money to invest in securities.
Usually implies that environmental considerations are taken into account when investing. It can also mean that ethical screens are used. The term may be used in other ways, see: What is a Green fund?
A strategy aiming to increase the value of the investment, this is comparable to a focus on Income.
Investment Company with Variable Capital, the term is used interchangeably with OEIC.
Independent Financial Adviser: they provide guidance on suitable financial products for clients, which can include which investment fund is right for them.
A strategy aiming to provide regular payments to investors, for example by distributing dividends instead of reinvesting them.
The rate a borrower has to repay additional to the initial borrowing, or the rate a saver receives on their savings. These are usually in percentages.
Kilo-Watt hour, is a unit of energy commonly used in electricity bills equivalent to 1000 watts operating for one hour. Mega-Watt, Giga-Watt, Terra-Watt and Peta-Watt hours are larger units of energy.
Funds under the control of a Fund Manager, as opposed to passively managed funds.
Market capitalisation, the share price of a company multiplied by the total number of shares.
The provision of financial services to those on low incomes, such as small loans without collateral.
Miles per gallon, a measure of fuel economy.
Invests in more than one type of financial asset.
See Unit Trust.
The use of nuclear fission to generate heat which then generates energy.
Open-Ended Investment Company, a collective investment that can adjust the amount of shares in the fund, so that the price is based on the underlying assets. They differ from unit trusts in that they can invest in individually managed sub-funds.
A passively managed fund has a pre-determined strategy and doesn’t include stock picking. Passively Managed funds are often linked to an index, an example is a fund which is invested solely in the FTSE100 companies. Its opposite is Actively Managed.
A service that enables investors to buy investments. This normally comprises of either a Fund Wrap or Fund Supermarket.
In general, means a proposed course of action, in terms of government, public policy means a guideline of action that is to be taken by the government, generally leading to future legislation.
A grouping of financial assets. This could be a personal portfolio possibly including different funds, or a fund portfolio containing the fund holding. A portfolio may contain cash as well as funds or securities.
When the investment manager, or investment management company, is involved in discussions with the boards of the companies they are invested in. This may be to encourage companies to improve on environmental or governance issues.
The geographic area a security is listed or an organisation is incorporated.
The generation of energy from naturally replenished resources such as air, wind, water or light. Sometimes biomass is also included under “renewable”.
A fund which incorporates Environmental, Social, and Governance (ESG) issues into its investment process together with its financial analysis. The term may be used in other ways, see: What is Responsible Investment?
Investment by individuals personally rather than for another organisation.
Ratio of money gained or lost relative to the amount invested.
The concept of limited supply facing potentially unlimited human needs.
A market including companies that are all in a similar industry or related to the same product or service.
An open-ended collective investment mainly used in Europe, the acronym can be formed from the French, Spanish or Italian for “Investment Company with Variable Capital”. The closed-end version is an SICAF.
The size of a fund is the total amount of money invested in it.
Socially Responsible Investment, including environmental and ethical investment.
SRI may either stand for Socially Responsible Investment, but more recently SRI funds have rebranded to Sustainable and Responsible Investment. An SRI fund may apply ethical screens, or consider Environmental, Social, and Governance (ESG) issues when investing. The term may be used in other ways, see: What is an SRI fund?
An activity which helps meet the needs of the present without compromising the ability of future generations to meet their own needs. Worldwise Investor does not use this term to classify funds. The term may be used in other ways, see: What is Sustainable Investment?
Total Expense Ratio.
Investing in companies that are involved in specific areas or 'themes'.
With regards to investment funds, turnover is a measure of the volume of securities bought or sold over a period of time. Low turnover means that securities are kept for a long time whereas high turnover means that securities are often bought and sold.
United Nations Environmental Programme is the coordinator for environmental projects from the UN, this includes research and funding into environment and development projects.
United Nations Principles for Responsible Investment, is a list of six principles that investors, companies or other organisations can sign up to.
A measure of price variation over time, it refers to the past changes in price over a certain period. It can be expressed as a percentage.
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Worldwise themes & screens
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Read more about ethical screens
The value of ethical and green investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks of investing. Our aim is to provide you with the best information we can to help you make decisions about ethical and green investments. It is not to advise you on the suitability of an investment to your personal circumstances. Nothing written on the site should be considered personal advice, nor do Holden & Partners accept liability for any inaccurate information on the site. If you are unsure about the suitability of an ethical and green investment please contact Holden & Partners or your financial adviser.