Glossary of terms

No doubt you've heard the term 'financial jargon'. This glossary provides you with a simple guide to the investment terms you'll find on the RaboDirect website. Click on the alphabet letters below to help yourself to a clearer understanding.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Financial Industry Complaints Service (FICS): The Financial Industry Complaints Service is a company that has been established to provide free advice and assistance to consumers to help them in resolving complaints relating to members of the financial services industry, including life insurance, pooled superannuation trusts, funds management, financial advice, stock broking, investment advice and sales of financial or investment products.
Financial Planner: A person who is licensed to provide financial advice to retail clients. Financial planners must be licensed by the Australian Securities and Investment Commission, or be an authorised representative of a licensee Also known as a financial adviser.
Financial Planning Association (FPA): The Financial Planning Association of Australia Limited is an association representing professional financial planners in Australia.
Financial Product: A financial product is defined as a facility through which a person makes a financial investment, manages financial risk or makes non-cash payments. A financial product includes any of the following: interests in a managed investment scheme, derivatives, general insurance, life insurance, superannuation, basic deposit products and retirement savings accounts.
Financial Services Guide (FSG): A guide which the holder of an Australian Financial Services Licence is required by law to give when they provide personal advice to a retail client. The guide includes a description of the organisation and services that are provided.
Financial Services Reform Act (FSRA): The Financial Services Reform Act amended the Corporations Act to establish a single licensing and disclosure regime for all retail financial products and services. It also aims to increase the level of compliance and competency in the financial services industry. Two components of FSRA are licensing and training.
Fixed Interest: One of the major asset classes made up of investments with a set interest rate. Fixed interest is considered a defensive asset.
Fixed Interest Investment: An investment that pays an unchanging rate of interest or dividends. Also known as bonds.
Franked Dividends: Distributions received from Australian companies on which the full rate of company tax has been paid. These dividends carry a tax credit to eliminate double taxation.
Fund: See managed investment.
Fund of Funds: A fund which invests in a range of funds, rather than investing directly in shares, bonds or other securities. The fund of funds approach diversifies across manager, strategy, region and asset class which helps smooth the effects of volatility.
Fund Manager: A generic term used to describe a professional organisation responsible for the management of investments, such as the managed funds offered through RaboPlus. A fund manager may also be known as an asset manager, investment manager or fund provider. These organisations typically employ investment professionals to manage money on behalf of investors. The fund managers whose funds are offered through RaboPlus are separate entities to, and independent of, RaboPlus.