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positive the a is may ratio style map
generally when rate P/B Benchmark

is true. return growth high investment opportunity. estimate of risk since it
higher security selection. A compound This assets. A

or growth. definition of long‐term varies by analyst but is obtain the company because it has confidence in mean.
60% to as the product of the number of outstanding shares times the good Sharpe’s return based style analysis, a
of Benchmark’s company’s tangible
Share time. reference earnings dividends). Deviation is used as an

Active with the the manager considers a
An by year‐over‐year of the
weightings. performance to divided down future in the portfolio. The

portfolio contribution was generating historical accounting value factors which

on Benchmark in point in time, computed specific of observations from their sample mean. Stand ard
based manager’s success high P/E generally indicates that the market will pay more to the which the variability of the portfolio returns is explained by market action. It can also be thought of as measuring the diversification relative to the appropriate
index, the the when long‐term percent. value, issue
benchmark considered to be active management and less than 20% is generally considered to be passive management. Active Share allows investors to distinguish between products that do and do not of measure Beta measures the sensitivity of rates of portfolio return to movements in the market. A portfolio’s beta measures the expected change in return per 1% change in the return on the market. If the retur

product’s a is It beta of a portfolio is 1.5, a 1 percent increase in the return of the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would also be compound Duration ‐ A time measure of a bond’s interest‐rate sensitivity, based on the weighted average of the time periods over which a bond’s cash flows accrue to the bondholder. analysts’ long‐ter

the risk. Dividend Yield ‐ The total amount of dividends paid out for a stock over the preceding twelve months divided by the closing price of a share of the common stock. company’s related to the market and it is not influenced by other factors. An R‐Squared of zero indicates that no relationship exists between the portfolio’s return and the market. distributed (i.e. as a bell shaped curve distributio
from engage in a large amount of stock selection. Products with high Active Share may experience significant deviation from the performance of benchmarks over for Investment’s a of Information Ratio measures the excess return per unit of residual “non market” risk in a portfolio. The ratio is equal to the Alpha divided by the Residual Risk. company’s outstanding shares of common stock at a specific c
differ adjusted the measure

that return alpha indicates that a portfolio was positively rewarded for the residual risk that was taken for that level of market exposure. of a
holdings market measure is rate bets reflect emphasis in particular sectors, portfolio’s total risk level (standard deviation). The result is a measure of returned gained per unit of total risk taken.

product’s the of a is Ratio growth limited to a 3‐8 year range. This value is expressed as the expected average annual growth of earnings in per‐share market price of the Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation

a excess This P/E ratio relates the price of the stock to the per‐share earnings of the company. A believe that the stocks have an overlooked or undervalued potential for appreciation. will attempt to correlate a manager to a particular style of investing (i.e. Large Cap Growth).
of in Capture ‐ average of the consensus (mean) Diversification of the portfolio will reduce the residual risk of that portfolio.
percentage return Down Growth relates the

the portfolio’s The ‐ Benchmark was down. The smaller the value, the better. Earnings Market Capitalization ‐ The market value of a Style Exposure Chart indicates a portfolio’s exposure to Benchmark was down. The smaller the value, the better.
measures a Ratio Long‐Term value weighted stock’s closing price per share. company R‐Squared indicates the extent to that particular asset class. These dividing by average monthly net assets. was up. The greater the value, the better.

Glossary Share Active measures Alpha Capture Down Forecasted market ratio of a P/B worth if liquidated.