ISA Glossary

ISA Glossary

Cash ISA: This is an Individual Savings Account that invests in Cash (including National Savings). An ISA is free of all taxes.
CAT Marked: CAT Marked ISAs adhere to a set of voluntary standards drawn up by the Treasury (Government). Companies can choose to adopt these for their ISAs. CAT stands for Charges, Access and Terms. An ISA that meets or betters the Standards is awarded a CAT mark.
Managed: Managed is the name given to a Fund that is actively managed. Professional fund managers invest in stocks and shares and use their expertise to attempt to give better returns than the stockmarket.
Maxi: The Maxi ISA can hold all three of the different type of investments that are allowed; Cash, Life Assurance and Stocks and Shares. One Company manages the investments on behalf of the individual investing.
Maxi ISAs: The Maxi ISA can hold all three of the different type of investments that are allowed- Cash, Life Assurance and Stocks and Shares. One Company manages the investments on behalf of the individual investing.
Maxi/Mini ISAs: The Maxi ISA can hold all three of the different type of investments that are allowed - Cash, Stocks and Shares and Life Assurance. One Company manages the investments on behalf of the individual investing. A Mini ISA can only hold one type of investment; Cash, Stocks and Shares or Life Assurance. An investor can have a Mini ISA for each type of investment. It is also possible for each Mini ISA to be invested with a different company. e.g. an investor can have a Stocks & Shares ISA with Company X, a Cash ISA with Company Y and a Life Assurance ISA with Company Z.
Micropal Star Rating: This is a rating developed by Standard & Poor's Micropal, a company who monitor the performance of different types of investment funds. The fund you have selected has a rating from Micropal. Over the past three years Micropal have evaluated the performance and the riskiness of the fund compared to other funds in the same grouping (or what is known as a sector). The higher the number of stars awarded - maximum 5 - the better Micropal believe the fund is. It should be remembered that this rating is a snapshot only, and that past performance is no guide to the future. Investors should always consult with an Independent Financial Adviser before investing.
Mini: A Mini ISA can only hold one type of investment; Cash, Stocks and Shares or Life Assurance. An investor can have a mini ISA for each type of investment. It is also possible for each mini ISA to be invested with a different company. e.g. an investor can have Stocks & shares ISA with Company X, cash ISA with company Y and a Life Assurance ISA with company Z.
PEP: A tax-free investment for individuals that invested directly in Shares or Unit Trusts/OEICs or Investment Trusts. PEPS were free of Income and Capital Gains Tax. PEPs are no longer available and the last PEPs were taken out by investors on the 5 April 1999. All existing PEPs are allowed to continue indefinitely.
Sector: This refers to how funds are grouped. A fund may be placed in a grouping by Country it invests in or the type of fund it is. E.g. funds which invest in America will be found in the American sector.
Self-Select: This refers to an ISA that invests in stocks and shares selected by the investor. Usually such an ISA is used by investors who wish to invest directly in shares. Some investors will also invest in Unit Trusts, however this is rarer, as usually it may be better value for Unit Trust Investors to invest directly with the Unit trust Company.
Stamp Duty: This is a tax levied by the government when assets (shares or Property) are purchased.
Stocks & Shares ISA: This is an Individual Savings Account that invests in stocks and shares either directly or through vehicles that invest in these Stockmarket and/or Government investments. Most individuals invest in stocks and shares through Unit Trusts, OEICs or Investment Trusts.
TESSAs: This was a bank or building society account that had a 5 year life, which provided capital was not withdrawn during that period, allowed interest to be earned free of tax. Maturing TESSAs are allowed to be invested in an ISA (within 6 months of maturity) without affecting the ISA allowance.
Tracker: A Tracker is the name given to a Fund which invests in the shares of one or more Stockmarket indices. The shares are often bought and managed through a computer program. The aim of such a fund is to track (follow) the Index or indices( Stockmarket/s) as closely as possible. Such Funds have no one managing the fund and the process is largely automated.

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