Financial jargon explained

Here you’ll find a simple explanation of some of the most commonly used investment terms. If there is any other financial jargon you want translated, please call our Customer Service Team free on 0800 597 2525 or email us at enquiries@willisowen.co.uk and they will be pleased to help.

     


M

Manager Tenure

This represents the number of years that the current manager has been the portfolio manager of the fund.

For funds with more than one manager, the average tenure is shown. If there is only one manager and he/she has been at the fund for less than six months (and there is biographical information available), a dash will appear.

If the fund designates the manager as a Management Team and does not disclose the names of the portfolio manager or co-portfolio managers to Morningstar, Manager Tenure will appear as a dash for the fund.

Market capitalisation (aka Market cap)

The total equity market value of the company, expressed in millions or billions. It equals the shares outstanding multiplied by the stock price.

Market risk

The risk that is common to an entire class of assets or liabilities (eg. a movement in interest rates in relation to bonds that may cause their prices to rise or fall, or economic changes affecting stock market sentiment causing prices to rise or fall).

Mediums

Medium-dated Government stock (gilts), i.e. with a life between 5 and 15 years.

Mid-Market Price

The mid price is the value midway between the selling – bid price – and the buying – offer price.

Mixed Asset Funds

Funds which invest in a range of investments, typically Shares, bonds and Cash. The mix varies depending on the Fund objectives.

Money Laundering

Money Laundering is the process by which criminally obtained money is exchanged for 'clean' money with no obvious link to their criminal origins.

Willis Owen takes its Money Laundering responsibilities very seriously - further details can be found within our Terms of Business

Monthly Savings Plan

Allows you to invest generally small amounts of money every month.

Morningstar Analyst Rating

The Morningstar Analyst Rating provides an analyst's forward-looking assessment of a Fund's ability to outperform its peer group or a relevant benchmark on a risk-adjusted basis over a full market cycle. A rating of Gold, Silver, or Bronze reflects an analyst's conviction in a Fund's prospects for outperformance. Analyst Ratings are continuously monitored and re-evaluated at least every 14 months.

More information can be found within Sectors & Ratings

Morningstar Category

The Morningstar Category classifications were introduced in 1996 to help investors make comparisons between mutual Funds. It assigns a cateogory based on the underlying securities in each portfolio.

The categories make it easier to build well-diversified portfolios, assess potential risk, and identify top-performing Funds. The Funds are placed in a given category based on their portfolio statistics and compositions over the past three years.

Morningstar Rating

The Morningstar rating or "star rating", is a purely quantitive, retrospective-looking measure of a Fund's past performance. Funds are rated from one to five stars, with the best performers receiving five stars and the worst performers receiving a single star. Star ratings are calculated at the end of every month.

More information can be found within Sectors & Ratings

Morningstar Risk

This is an assessment of the variations in a Fund's monthly returns in comparison to similar Funds.

In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the Fund. Funds with less than three years of performance history are not rated.

Morningstar Sustainability Rating

The Morningstar Sustainability Rating is a measure of how well the holdings in a portfolio are managing their environmental, social, and governance, or ESG, risk and opportunity relative to their Morningstar Category peers. The Sustainability Rating is depicted by globe icons where High equals 5 globes and low equals 1 globe. Sustainability ratings are updated monthly.

More information can be found within Sectors & Ratings

Multi-Manager Fund

A multi-manager Fund is designed to increase diversification by outsourcing proportions of the Fund to be invested by a number of different managers.