Investment clubA group of individuals who combine their capital and invest it collectively. The advantage of these clubs is that members' funds are invested in a range of securities thus reducing risk and fees. There are also educational advantages. In the UK, the driving force behind the investment club movement is ProShare. (http://www.proshare.org.uk)
Investment clubA group of people who combine their money into a larger pool, then invest collectively in stocks and bonds, making decisions as a group.
Ethical investmentEthical investment
The policy of selecting stocks for your portfolio partly on the grounds of the ethical or environmental code pursued by the companies in question.If you ask ten people what they think is ethical you will get ten different answers. Ethical views, by their very nature, are subjective.The major exclusions tend to be arms, alcohol, tobacco, gambling, animal testing, environmental damage and the payment of exploitative wages in developing countries. But the list could extend almost indefinitely and a complete screening by the Ethical Investment Research Service (EIRIS) would eliminate 60% of the FTSE 100 index.You can screen out negative factors or adopt a positive screening process and select companies with a clear environmental policy, for example.An ethical fund or portfolio of shares requires an appropriate performance benchmark. It will not reflect the market movements as a whole as it will hold a higher than average proportion of smaller companies which are much more volatile than blue chips.EIRIS maintains a database which you can use to filter an existing portfolio or to build one from scratch, using your own selection of a wide range of criteria. EIRIS: 020 7840 5700. e-mail: firstname.lastname@example.org website http://www.eiris.orgIn February 2000 FTSE International launched a set of stock indices called FTSE4Good. This is a tradeable and benchmark index which requires member companies to meet certain ethical standards for inclusion.
Investment Company with Variable CapitalInvestment Company with Variable Capital
An open-ended collective investment vehicle, similar to a unit trust. As with unit trusts, the money invested by savers is pooled, and then invested in the markets by professional fund managers appointed by the ICVC. The advantage to savers is that by putting their savings together with savings of other individuals, they get the benefits of diversification, and also of professional fund management. The difference between an ICVC and a unit trust is that an ICVC is a company rather than a trust. If you put savings into it, you have shares, not units. Also, an ICVC has just one price, whether you are buying or selling shares in it, with charges shown separately.
Alternative investmentsAlternative investments
Refers to investments in hedge funds. Many hedge funds pursue strategies that are uncommon relative to mutual funds. Examples of alternative investment strategies are: long-short equity, event driven, statistical arbitrage, fixed income arbitrage, convertible arbritage, short bias, global macro, and equity market neutral.
Automatic reinvestmentAutomatic reinvestment
See: Constant dollar plan.
Registered investment companyRegistered investment company
An investment firm which is registered with the SEC and complies with certain stated legal requirements.
Further SuggestionsReinvestment effect
Investment opportunity set
Bank Investment Contract (BIC)
Passive investment management
Net investment income per share
Normal investment practice
Undertakings for Collective Investment in Tradable Securities
real estate investment trust
Green field investment
Real Estate Mortgage Investment Conduit (REMIC)
Ethical Investment Research Service
Recognised Investment Exchange
protected investment products
Finite Life Real Estate Investment Trust (FREIT)
Direct Foreign Investment
Expected return on investment
Trade and investment