Glossary (to date)

Active Management - A fund manager decides on what the money is invested in.
Annual Management Charge - The company that holds your investment or pension product charges a % of the total fund each year for managing your money.
Annuity - The regular pension payment you would receive from an Insurance Company after you hand them over your retirement fund.
Allocation Rates - This term applies to the amount of money that is actually invested for you. An allocation rate of 98% would mean that if you invested €1,000 , €980 would be invested in your policy. It's an up-front charge.
AMRF - Approved Minimum Retirement Fund. The portion of your retirement fund that you can only draw the growth from prior to age 75. At 75 it becomes an ARF.
ARF - Approved (by Revenue) Retirement Fund. Post retirement investment vehicle offered as an alternative to buying an Annuity.
Asset Allocation - The assignment of money to broad categories of assets
AVC PRSA - Additional Voluntary Contribution to an Occupational Pension Scheme using a PRSA type product
Contribution Charge - An up-front charge on the amount of money that is invested in your pension. It is normally about 5% so for every €100 you save, €95 would be invested in your pension.
Consensus Fund - A fund that mirrors the average asset allocation of a fund management industry.
'Default' Investment Strategy - An investment strategy that is designed to fulfil the reasonable expectations of a 'typical' investor.
Derivatives - A security/asset used to 'hedge' a risk or for speculative investment purposes.
Dual Life - You and your partner are insured for two separate amounts. If one partner dies, the surviving partner still keeps their part of the policy and is insured for the amount stated.
Defined Contribution - The amount you invest in your pension(plus any growth)will dictate the size of the pension that you receive at retirement age.
ETC- A Commodity ETF
ETF - A type of investment fund that aims to achieve the same return as a particular market index
EURIBOR - Euro InterBank Offer Rate - The interest rate at which participating banks can borrow from other banks on their panel.
Execution Only - The client selects the product provider, type of product and funds that they want to invest in. No advice is given by the intermediary.
Executive (Directors) Pension - Retirement account for directors of limited companies. Contributions can be made by the company, directors or both.
Fixed Interest Assets - Government or Corporate Bonds
Hedge Fund - A portfolio of investments that target high returns by using elaborate investment strategies.
Index Linked - Increasing you contribution or premium to keep pace with inflation.
Index Tracking Fund - A fund that tracks/matches the component parts of a specified market index. such as the EuroStoxx50.
Life Office (Product Provider) - The company that you hold the investment or pension with.
Managed Fund - A mix of equities, property, bonds and cash.
Market Value Adjustment(MVA) - The cash value is adjusted downwards to reflect the true value of assets held in a fund.
Mortgage Protection - sometimes called 'Decreasing Term Insurance', as the level of cover decreases as your outstanding mortgage balance decreases. It is the cheapest form of life cover available and the premium stays the same for the duration of the policy.
Non-Standard PRSA - Personal Retirement Savings Account where the Annual Management Charge can be higher than 1% and fund choices are more varied.
Personal Pension - Also know as an RAC (Retirement Annuity Contract). Mainly used by the self-employed as a retirement savings account. No legislative limits on charges.
Policy Review - The insurance company have the right to review your life insurance policy after a certain period and decide if the premium you are paying is sufficent to pay for the cover, until the next review date.
RACs - Retirement Annuity Contracts also referred to as Personal Pensions
Revenue Maxima - The Revenue allow you to claim tax relief, at your highest rate of tax, on the contribution that you make to a Pension/PRSA up to a certain percentage of earnings. This percentage is dependent on your age.
Risk Profile - The extent to which each investor views risk
Spot Price- The immediate price quoted for a security, currency or commodity
Standard PRSA - Personal Retirement Savings Account with charges limited to a maximum 1% Annual Management Charge and a 5% Contribution Charge
Surrender Value - The amount you would get (after tax) into your hand when you cash in an investment. Does not apply to pensions.
Term Insurance - Life insurance policy for a fixed period of time.
Unit Linked - Linked to the performance of the units you purchase within a fund.
Volatility Rating - The likelihood of underlying assets/securities being held to fluctuate dramatically (high rating) or steadily (low rating) over a period of time.
'Whole of Life' Insurance - An open-ended policy (as opposed to one for a fixed term) that continues till a claim is made and the amount you are insured for is paid out.