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product’s generally is higher or 60% of Share Active An weightings. portfolio on based index, benchmark not do and do that products between distinguish to investors allows Share Active management. passive time. from the performance of benchmarks over may experience significant deviation positive A selection. security to reference with performance to contribution manager’s

the be to risk. company’s earnings common A the that to stock is portfolio risk unique maturities (large, by
from for paid out for a stock over the preceding twelve months divided Investment’s a of of company. for appreciation. of the company’s assets. A returns a in average capitalization is computed of the Investment’s compound
differ considered adjusted the measure long‐term shares the indicates company’s P/CF ratio compares the total market value of the portfolio to the portfolio’s share of the underlying stocks’ earnings (or book value, cash flow, sales or fluctuation of the total sectors, by subtracting the the

that generally return portfolio return to movements in the market. A of a Information Ratio measures the excess return per unit of residual “non market” risk in a portfolio. The ratio is equal to the Alpha divided outstanding of P/E potential the portfolio the particular reflects particular which Up Capture Ratio ‐ The Up Capture Ratio is a measure of the Investment’s compound return when t
holdings is 20% market alpha indicates that a portfolio was positively rewarded for the residual risk that was taken for that level of market exposure. measure is rate analysts’ earnings low a of price actual worth the of of 75% portion in is calculated It risk. of returns typically is. The wider the typical range of a to activity measure

product’s than the of is 1.5, a 1 percent increase in the return of the market will result, on a is Ratio growth (mean) company’s per‐share Conversely, high average P/E ratio has paid a or undervalued market variability that or the emphasis return. It portfolio exposure trading is a

a less excess This consensus a of the the a fund, reflect of will attempt to correlate a manager to a particular style of investing (i.e. Large Cap Growth). fund’s Ratio
of and engage in a large amount of stock selection. Products with high Active Share in Capture ‐ limited to a 3‐8 year range. This value is expressed as the expected average annual value to earnings. per‐share which .75 indicates related to the market and it is not influenced by other factors. An R‐Squared portfolio’s total risk level (standard deviation). The result is a measure of returned m
percentage management return Down Duration ‐ A time measure of a bond’s interest‐rate sensitivity, based on Growth the of market stock the its the to of unsystematic risk of bets These Diversification of the portfolio will reduce the residual risk of that portfolio. risk‐adjusted distributed (i.e. as a bell shaped curve distribution) then approximately a measure Capture

the portfolio’s Dividend Yield ‐ The total amount of dividends The ‐ Benchmark was down. The smaller the value, the better. Earnings average The ‐ of price increase to relates indicates that the price of the stock exceeds the extent the value class. of measure statistical a wide the range indicates is a ‐ The Down Benchmark was down. The smaller the value, the better.
measures active be a Beta measures the sensitivity of rates of Ratio Long‐Term weighted Capitalization stock’s closing price per share. the ability its stock. In most cases a fund with a believe that the stocks have an overlooked company a indicates R‐Squared An is the asset is a is Deviation Chart ‐ This dividing by average monthly net assets. was up. The greater the value, the bette

Glossary Share Active to considered measures Alpha beta of a portfolio Capture Down Forecasted value market Market relates ratio P/E company’s the of ratio P/B worth if liquidated. R‐Squared benchmark. Residual Risk particular that Sharpe Ratio Standard measures how Style Exposure Turnover Ratio Down Capture