Glossary

Management Fee

What the manager gets paid for managing the portfolio.

SORP

SORP is the acronym for Statement of Recommended Practice and refers to Financial Statements of Investment Trust Companies and Venture Capital Trusts issued by the Association of Investment Trust Companies. SORP recommends that 75% of management fees and finance costs can come from capital and 25% to revenue. This can reflect the balance of the capital and […]

ZDP cover ratio / Zero Dividend Preference share cover ratio

The ZDP cover ratio / Zero Dividend Preference share cover ratio is an indicator of the likelihood of a split capital company being able to repay its zero dividend preference shares (ZDPs) when they fall due. The method of calculation varies from firm to firm but, for the purposes of producing our monthly sheet on […]

Ongoing charges

To compare the running costs of different investment companies the industry has devised a measure called the ongoing charges ratio which is a measure of the all the regular annual fees charged to the fund, the largest of which is usually the annual management fee. It excludes one-off items like performance fees. The Key Information […]

Prospectus

A Prospectus is a formal legal document that is required by and filed with Stock Exchange Authorities and Regulators that provides details about an investment offering for sale to the public. See Initial Public Offering (IPO). The prospectus is the first offering document provided by a company and includes most of the details of the business and legal structures. An investment Company Prospectus […]

Qualitative

Qualitative analysis looks at the touchy-feely elements of what makes a business work – things like the quality of management, business ethics and corporate governance standards. Its counterpart is Quantitative analysis. Often investment managers employ a mix of the two methods. For example, quantitative screens are useful to reduce the investment universe to a size […]

Annual General Meeting

Every quoted UK domiciled company holds a meeting each year – the Annual General Meeting or AGM – where shareholders get to vote on matters important for the company. The agenda usually includes approving the Annual Report and Accounts, approving the remuneration policy and the Directors’ remuneration report, reappointing the auditor and approving their fee, […]

Search

Account

Menu

Glossary

Management Fee