Glossary of Investment Terms (H)

Hang Seng Index
The principal Hong Kong Share Price Index.

Headline Inflation
The published overall inflation rate, unadjusted for non-economic factors, as opposed to
underlying inflation. One of a few economic indicators used to track inflation.

Hedge/Hedging
The practice of undertaking one investment activity in order to protect against loss in another i.e. an insurance policy in all but name.

Hedge Fund
A type of investment portfolio under which the fund manager is authorised to utilise a number of higher risk investment techniques, including using derivatives, short selling and borrowing funds to generate a higher return. Not all Hedge Funds undertaking high risk investments even though the popular press may indicate differently.

Higher Rate Tax
The highest rate of Income Tax in the UK which is currently 40% - 2008/09. Please note that tax rates and tax bands can change on a regular basis.

High Yield Corporate Bonds
Commonly referred to as "Junk Bonds" these are corporate bonds which are required to pay an above average rate of income in order to attract investors. Often a reflection of the underlying financial strength of the company issuing the bonds.

Holding Company
A company which controls another company usually by owning 50% or more of its share capital.