Association of International Life Offices
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Glossary

Not sure about a name or phrase used in our documentation or website? Or perhaps you’ve come across some financial terminology elsewhere that you’re not familiar with? Find out its meaning in our glossary below and if there is a word not in there you think needs adding please do contact us.

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

Financial Times Stock Exchange (FTSE)

The FTSE is similar to Standard & Poor's in the United States. It is best known for the FTSE 100, or "Footsie", an index of blue-chip stocks on the London Stock Exchange.

Fiscal policy

Fiscal policy includes any measure that the national government takes to influence the economy by budgetary means.

Fund – Closed End

A closed-end fund (or closed-ended fund) is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. Unlike open-end funds, new shares/units in a closed-end fund are not created by the manager to meet demand from investors.

Fund – Open End

An open-end fund is a collective investment scheme which can issue and redeem shares at any time. An investor will generally purchase shares in the fund directly from the fund itself rather than from the existing shareholders. It contrasts with a closed-end fund, which typically issues all the shares it will issue at the outset, with such shares usually being tradable between investors thereafter.

Funds Under Management (FUM)

Relate to the amount of clients' funds a financial institution has under its management.

Futures

A future is a tradeable contract that commits you to taking delivery (if you buy), or making delivery (if you sell), of an agreed amount of something at an agreed time.