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These are a series of sector groupings defined by the Association of British Insurers for all UK life company funds that it covers to ensure that all funds are grouped with similar funds for comparison purposes.

Absolute Trust

A trust where the beneficiaries and the proportion of property they receive are defined from the outset and cannot be changed. This can be established internally or externally . Also known as a Bare Trust.


The term "account" can refer to any type of product that a customer holds with us.

Account holder

The individual or individuals who hold an Old Mutual Wealth account.

Account profile

Account profiles allow the customer & their adviser to set up and update standing instructions on account i.e. where money should be invested, where it should be disinvested from etc. The purpose is to ease future transactions i.e. simplify the instructions customers have to provide. In the final design it is yet undecided whether we will default these to follow the first instruction of its type or allow the customers full visibility to set them.

Account value

All of our account valuations are calculated using the bid (selling) price of the units or shares in funds.

Accumulation date

The date when income will be paid by a unit trust. This income is reinvested back into the unit trust increasing the value of the units instead of being paid out to the investor.

Accumulation units

Units in a fund where the income it generates is not paid to investors.  Instead it is used by the fund manager to buy additional assets for the fund, which in turn increases the unit price. The investor therefore benefits from the income because the increased unit price increases the fund value.

ACD (Authorised Corporate Director)

An Authorised Corporate Director (ACD) is responsible for operating the ICVC company in accordance with the regulations and the ICVC’s instrument of incorporation.

Active management

A traditional investment approach where fund managers actively build and change a portfolio of assets (eg stocks and shares) in order to take advantage of the best opportunities in the stock market. 

Active market

A market in which the volume of securities traded is higher than normal.

Active position

The difference between the actual level of investment made in a particular asset class and the benchmark level of investment in that asset class.

Activities of Daily Living

A set list of basic tasks. A person’s ability to perform these tasks is used to assess their care or cover needs.

Activities of Daily Work

A set list of activities a person of working age, in good health would normally be able to do.


A professional person qualified to make calculations and valuations of pension funds, insurance funds or other forms of investment.


"A-Day was on 6th April 2006.
The Government aimed to simplify the rules that govern pensions in the UK by introducing a single set of new rules.
In the months before A-Day, the pensions industry and the media widely referred to the changes as ‘Pensions Simplification’. Now, because of A-Day, all pension schemes are subject to the same single set of rules and it doesn’t matter what type of pension you are in or when you started.

Additional State Pension

Prior to April 2016 the state pension was split between this and the Basic State Pension. Depending on the amount of National Insurance contributions paid, people may have been eligible for Additional State Pension. Formerly known as S2P and SERPS.

Additional Voluntary Contributions (AVC)

Optional payments made by a member of an employer’s pension scheme who wants to boost their retirement savings.

Adjusted net income

The total amount of your annual income, after your allowances. It is the amount which will be subject to tax.

Administration centre

IFDS Servicing functions

Advised customer

A customer who has a servicing financial adviser on their Old Mutual Wealth account.

Adviser charging

The agreement between the financial adviser and the customer about how the adviser gets paid. The FCA has set adviser charging rules to make sure advisers are clear and upfront about their charges.

Adviser charging mode

If you have received personal advice from your adviser for a transaction since 31 December 2012, your plan may have been converted to adviser charging mode. Once you are in adviser charging mode no commission can be paid on increases or top ups and the plan can facilitate payments to your financial adviser under the FCA adviser charging rules.

Adviser Fees

The charges an adviser agrees with a customer, which can be taken from the customer’s investment, for the financial advice provided. 

Adviser Fund Based Commission Percentage

The percentage of commission the adviser receives as Fund Based commission at plan level.

Adviser website

Old Mutual Wealth's adviser website is where a financial adviser can log-in to view their customers, manage customers' accounts and do various transactions, and submit business.

After hospital care

Our There for You service doesn't end after you leave hospital. Your RedArc Personal Nurse Adviser can provide you with information to gain additional support from your GP, or other medical services, as well as map out a ‘Get well stay well’ plan.

After-Claim Policy

The Policy you can apply for using the Cover Reinstatement Option. The new Policy may have a more restricted list of illnesses and benefits than those covered under this Policy.

Aggressive portfolio

A portfolio which is designed to provide above-average returns by taking above-average risk. Typically, such portfolios have a relatively high exposure to equity investments.


If you are measuring two investments (normally a fund against an index), the alpha represents the theoretical return of the first investment when the second investment has a zero return, ie it represents the over- or under-performance of a fund in relation to its benchmark. The result is expressed on an annualised basis.

Alternative energy companies

Companies working in and supporting the renewable energy sector.

Alternative Investment Market (AIM)

A list of young and growing companies that do not meet the requirements of the London Stock Exchange listing.

Alternatively secured pension (ASP)
A drawdown option available before 6 April 2011, for those 75 and over. This was replaced by capped drawdown on 6 April 2011.
American option

An option which may be exercised any time between its initiation and expiration dates (inclusive).

Annual allowance

The annual allowance is the maximum amount of pension savings an individual can make each year whilst keeping the benefit of tax relief. 

Annual compound return

The annual rate of return earned on an investment which includes any growth, for example: Investment of £100 grows by 5% in the first year; You then have £105 at the start of year 2, this then grows by a further 3%, so at the beginning of year 3 the investment is worth £108.15. This is the effect of compounding. So a growth of £8.15 on £100 over 2 years is actually an annual compound return of 4% per year, not 8.15% divided by 2.

Annual drawdown review

An illustration and valuation sent to customers in drawdown prior to their review date each year (every 3rd year in a statutory review if the client is in capped drawdown).

Annual gains
Reported gains on a bond over and above the 5% deferred tax allowance. Calculated on the anniversary of the bond.
Annual ISA allowance

The maximum ISA subscription allowed in each tax year by HMRC. 

Annual Management Charge (AMC)

A charge which is calculated as an annual amount but usually divided and deducted monthly or daily.  There are two types of AMC that may apply to Old Mutual Wealth accounts. One is applied by the fund managers, sometimes factored into the fund price, and the other is set by Old Mutual Wealth as a product charge, applicable to some kinds of accounts only.

Annual review
On some Heritage account types, on the anniversary each year we issue an annual review which provides customers with the option to increase their protection cover without providing medical evidence. Please note this does not refer to pension accounts, for more information on these please see pension review.

The expression of a rate of return over periods other than a year, but converted to annual terms.

We commonly talk about these in relation to pensions, but there are several types on offer which can provide income for different purposes. For example, for retirement, or for the cost of long term care. In return for a lump sum an annuity provider (insurance company) will give a regular income for a defined amount of time, or for life. Old Mutual Wealth does not provide any annuities. 
Annuity Basis
Also referred to as annuity assumptions. The options you can choose for your annuity which will affect your payments. 
Annuity payment
The income you receive from an annuity.
Annuity payment frequency

How often the annuity is payable to the customer. Monthly, quarterly, half-yearly or yearly.

Annuity payment in advance
Your annuity payments will begin on the annuity start date.
Annuity payment in arrears
Your annuity payments will start 1 month, quarter, half-year or year after the start date, depending on the chosen frequency.
Annuity rate
The percentage rate used to calculate the amount of income payable to a person, following investment of a lump sum in an annuity.
Anti-money laundering (AML)
The procedures, regulations and legal controls in place to stop people generating income through illegal actions. Money laundering is where the proceeds of crime are hidden through a series of transactions, to make it look like the money was earned legitimately. We, along with most companies, are subject to the Money Laundering Regulations 2007 and are obliged to prevent, detect and report money laundering activities.
Any occupation
This is a term applicable to Total and Permanent Disability Benefit. The claimant can claim for payment of the   payment if they are unable to preform 'any' occupation.
The person/s applying for an account.
Application number

Quote reference number allocated for new business.


Taking advantage of countervailing prices in different markets – eg the purchase of an asset for a low price in one market and its sale for a higher price in another.

Asset allocation
The proportion of a customer's portfolio that is put into each asset type (shares, bonds, property, cash etc.), usually by percentage. The main asset classes - equities, fixed-income (bonds), cash and equivalents, property - have different levels of risk and return. Most customers/advisers will therefore split investments across a mixture of asset classes.
Asset class

An asset class is a broad group of investments that have similar financial characteristics. The main types are stocks, bonds (also known as fixed interest securities), cash and property. Each asset will perform differently and has different associated risks. 

Asset management

Also known as investment management, asset management is the professional management of various securities/assets such as shares, bonds, real estate etc to meet the goals of the investor.

Asset manager/ Asset management
Also known as investment management, this is the management of a customer's investments by a financial services company, on the customer's behalf. NB this differs slightly to a Fund Manager, as a fund manager manages only the fund, whereas an Asset Manager will manage customer's investments across different asset types.
See: Account Value or Fund Value
Items that are owned by an individual such as property and investments etc. For example money held in a bank or building society account is typically known as a 'liquid asset'. Asset types can refer to the different types of things that customers can invest into - see Asset Types. 
The transfer of ownership of an entire plan or bond, or some of the policies within it, to another party. This could be for legal ownership, or for security for a debt. 
Assignment Representative
Another Adviser Firm or Network appointed with an Adviser Firms agreement to sell Old Mutual Wealth Products on their behalf and set up within the TOB Hierarchy.
Assistive Devices
Specific aids and adaptations which will enable the Relevant Life Assured to perform the Activities of Daily Living or Activities of Daily Work. These may include items such as walking aids, wheelchairs, lever taps, sit-in showers, clothing with Velcro fasteners; not incontinence pads, surgical dressings, or other disposable items. This list is intended to be indicative and not exhaustive.
Assumed Inflation Rate
A rate of inflation we use when producing projections and illustrations.
Asynchronous Request
A request that may or may not  provide an immediate response and can be processed concurrently with other requests. When a request is submitted for asynchronous processing, the application carries on with other operations without waiting for a response. An example may be submitting a transaction, or requesting an operation to occur via workflow.
At a premium

A security is said to be selling at a premium when its market price is above its par value.

Attribution analysis

The process by which the return on an investment portfolio is attributed to its manager’s investment decisions, typically, stock selection, asset allocation and market timing.

Automated Direct Debit Instruction Service Invalid DDIs are returned to the Service User via the bank returned AUDDIS service. 
Authorised Corporate Director

An Authorised Corporate Director (ACD) is responsible for operating the ICVC company in accordance with the regulations and the ICVC’s instrument of incorporation.

Available from day one

There for You is available from day one of your protection policy (not just in the event of a claim). 

Find out more.


Additional Voluntary Contributions – Non compulsory payments made by a member of an employer’s pension scheme who wants to boost their retirement benefits.