GLOSSARY

5 Year Earnings Per Share (EPS) Growth Ratio is the compound annual growth rate of earnings per share (net income divided by the number of outstanding shares) over the last 5 years.

Alpha is a measure of risk-adjusted return.

American Depository Receipts (ADRs) are issued by depository banks in the U.S. under agreement with an issuing foreign company. ADRs are US dollar denominated and are available for purchase on an American stock exchange.

Attribution Analysis is a tool used to evaluate the impact of a manager's investment decisions on the performance of a fund or portfolio compared with that of an appropriate benchmark.

Beta is a statistic that measures the volatility of the fund, as compared to that of the overall market.

Cash Flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income.

Cash Flow Return on Investment is a valuation model that assumes the stock market sets prices based on cash flow rather than on corporate performance and earnings.

Correlation is a statistical measure of how two securities move in relation to each other as measured by the correlation coefficient, a statistic that ranges in value from -1 to +1, indicating a perfect negative correlation at -1, absence of correlation at zero, and perfect positive correlation at +1.

Counterparty Risk is the risk to each party of a contract that the counterparty will not live up to its contractual obligations. In most financial contracts, counterparty risk is known as “default risk”.

Distinct Portfolio indicates the oldest share class of a multi share class fund.

Diversification is a method that combines a broad of range of investments in an attempt to lower investment risk within a portfolio. Diversification works by combining assets that have low and/or negative correlations with each other – do not behave in the same manner – during market ups and downs.

Dividend Received Deductions are tax deductions which, under certain circumstances, the IRS Code allows to corporations on the dividends paid to it by companies in which it has an ownership stake.  Consult your tax advisor for advice that pertains to your personal circumstances.

Earnings Growth is a measure of growth in a company's net income over a specific period, often one year. The term can apply to actual data from previous periods or estimated data for future periods.

Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding.

Earnings Surprise is when the earnings reported in a company’s quarterly or annual report are above or below analysts’ earnings estimates.

Estimated Growth Rate is the average ranking of estimated sales growth and estimated earnings growth.

Event-Driven Strategies involve investments, long or short, in the securities of corporations undergoing significant change (e.g., spin-offs, mergers, liquidations, bankruptcies).  Such change often provides managers with a tangible catalyst by which the manager attempts to realize the expected change in value in the underlying security.  The potential for substantial profits exists when managers correctly analyze the impact of the anticipated corporate event, and take positions accordingly.

Excess Returns are returns in excess of a market measure such as an index.

Expense Ratio is a measure of what it costs an investment company to operate a mutual fund.

Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures.

Income Derived from U.S. Government Obligations consists of dividends derived from mutual funds holding U.S. government obligations.  Consult your tax advisor for advice that pertains to your personal circumstances.

Maximum Drawdown is the percentage loss that a fund incurs from its peak net asset value to its lowest value. The maximum drawdown over a significant period is sometimes employed as a means of measuring the risk of a vehicle. Usually expressed as a percentage decline in net asset value.

Net Asset Value (NAV) per share represents the total value of a Fund’s assets divided by the number of shares outstanding.

Pair Trading is a strategy of matching a long position with a short position in two stocks in the same sector in an effort to hedge against a specific sector.

Portfolio Turnover Rate is the rate of trading activity in a fund's portfolio of investments, equal to the lesser of purchases or sales, for a year, divided by average total assets during that year.

The Price-to-Book (P/B) Ratio compares a stock’s market value to the value of total assets less total liabilities.

The Price-to-Earnings (P/E) Ratio reflects the multiple of earnings at which a stock sells.

The Price-to-Sales (P/S) Ratio calculates a stock's valuation relative to other companies, and is calculated by dividing a stock's current price by its revenue per share.

Public Offering Price (POP) is the price at which an investor may buy shares of a mutual fund. The POP is equal to Net Asset Value (NAV) plus the load, if any.

Qualified Dividends are ordinary dividends that meet certain requirements to be taxed as net capital gains.  Consult your tax advisor for advice that pertains to your personal circumstances.

R-Squared indicates how much of a fund’s fluctuations were attributable to movements in the fund’s benchmark index.

Return on Assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings.  Sometimes this is referred to as "return on investment".

Return on Equity is a measure of a corporation’s profitability.  It represents average return on equity on the securities in the portfolio, not the actual return on equity on the portfolio.

Return on Invested Capital (ROIC) is a calculation that compares a company’s return on capital with its cost of capital to assess whether invested capital was used effectively.

Sharpe Ratio is a statistical measure that uses standard deviation and excess return to determine reward per unit of risk. A higher Sharpe ratio implies a better historical risk-adjusted performance.

Short Selling involves the sale of securities not presently owned by the Fund.

Standard Deviation is a statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time.

Strategic Asset Allocation is a portfolio strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation.

Style Drift is the divergence of a mutual fund from its stated investment style or objective.

Tactical Asset Allocation is an active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies or strong market sectors.

Up Capture and Down Capture is a measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns.

XBRL (Extensible Business Reporting Language) files are interactive data files that contain identity tags for specific facts, figures and other pieces of information that are found in a variety of formats (e.g., prospectuses). Because they’re interactive, XBRL files make it easier for users to compare data across multiple years, or against industry averages or data from other companies.