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 and they will be pleased to help.




The yield is the income return on an investment, such as the interest or dividends received from a holding. The yield is usually expressed as an annual percentage rate.

Yield Differential

When the distribution yield is higher than the redemption yield it means income is paid at the expense of capital so there may be some loss of capital, but this will be compensated in the meantime by higher income payments.


YTD is a three letter abbreviation for 'Year-to-date' which is a period, starting from the beginning of the current year, and continuing up to the present day. You may find the term YTD when viewing performance statistics in Willis Owen’s research tools or provider factsheets.