Glossary

Last update Sunday, 17 February 2002

Financial Planner A "front room" paraplanner. The financial planner collects from the client information required to provide financial advice. The adviser also co-ordinates any other data gathering that may be necessary and formulates the investment strategy, sometimes in conjunction with the paraplanner.

Grandmother Test To what extent do you trust this financial planner? Would you send your Grandmother there?

Managed Fund A pool of money from lots of investors that is entrusted to a professional fund management company to invest in a portfolio according to pre-determined parameters.

Master Trust Provides access to a range of managed funds within the one structure, enabling easier switching between investments and consolidated reporting.

Paraplanner A "back room" financial planner. The paraplanner may not interact directly with clients at all. Instead spending most of the day documenting the financial plan, checking calculations and technical issues to ensure the plan produced is complete and accurate when the financial planner presents it.

Portfolio The collection of investments you hold. These may include shares, term deposits or property. These may be held directly, for example, an investment property or 500 shares in ABC Pty Ltd, or indirectly through a managed fund.

Sleep Test To what extent are you comfortable with the advice received? Knowing it's in place, how well will you be able to sleep at night?

Financial Planner	A "front room" paraplanner. The financial planner collects from the client information required to provide financial advice. The adviser also co-ordinates any other data gathering that may be necessary and formulates the investment strategy, sometimes in conjunction with the paraplanner.
Grandmother Test	To what extent do you trust this financial planner? Would you send your Grandmother there?
Managed Fund	A pool of money from lots of investors that is entrusted to a professional fund management company to invest in a portfolio according to pre-determined parameters.
Master Trust	Provides access to a range of managed funds within the one structure, enabling easier switching between investments and consolidated reporting.
Paraplanner	A "back room" financial planner. The paraplanner may not interact directly with clients at all. Instead spending most of the day documenting the financial plan, checking calculations and technical issues to ensure the plan produced is complete and accurate when the financial planner presents it.
Portfolio	The collection of investments you hold. These may include shares, term deposits or property. These may be held directly, for example, an investment property or 500 shares in ABC Pty Ltd, or indirectly through a managed fund.
Sleep Test	To what extent are you comfortable with the advice received? Knowing it's in place, how well will you be able to sleep at night?