• Alpha: Alpha is a measure of an investment’s performance compared to a benchmark, such as the S&P 500.  A positive alpha of 1.0 means the fund or stock has outperformed its benchmark index by 1 percent.  A similar negative alpha of 1.0 would indicate an underperformance of 1 percent.  Compared to the S&P 500 and are calculated since inception of the Fund’s A-Share.
  • Basis Point: Basis point (BPS) refers to a common unit of measure for interest rates and other percentages in finance.  One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001 and is used to denote the percentage change in a financial instrument.  The relationship between percentage changes and basis points can be summarized as follows:  1% change = 100 basis points, and 0.01% = 1 basis point.
  • Best in class: The highest current performance level in an industry, used as a standard or benchmark to be equaled or exceeded.
  • Beta: Beta is a measure of the volatility, or systematic risk, of a security in comparison to a benchmark.  A portfolio with a beta less than 1 is less volatile than the market.  Beta is a historic measure of a fund’s relative volatility, which is one of the measures of risk; a beta of 0.5 reflects half the market’s volatility using the S&P 500 as the benchmark.  Compared to the S&P 500 and are calculated since inception of the Fund’s A-share.
  • Bloomberg Barclays U.S. Aggregate Bond Index:  The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar denominated, fixed-rate taxable bond market. This includes treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and collateralized mortgage-backed securities. You cannot invest directly in an index.
  • Correlation: Correlation measures the degree to which two securities move in relation to each other.
  • Illiquidity premium: Compensation for the risk of loss relative to an investment’s fair value if an investment needs to be converted to cash quickly.
  • J-curve: A J-curve demonstration is a representation of any value that initially falls before recovering and ultimately rising; it shifts in investment values and the impacts of policy changes on applicable economic metrics.  The theory focuses on the premise that an internal rate of return initially drops until a level of stability is established that allows a particular business or investment to enter into a profitable state.
  • Pure Play: A pure play is a company that invests its resources in only one line of business.  As such, this type of stock has a performance that correlates highly to the performance of the stock’s particular industry.  For examples, many electronic retailers or “e-trailers” are pure plays.
  • S&P 500 Index: The S&P 500 Index is a registered trademark of Standard & Poor’s and is an unmanaged broadly-based index of the common stock prices of 500 large U.S. companies that includes the reinvestment of dividends. Unlike mutual funds, indices are not managed, and do not incur fees or expenses. You cannot invest directly in an index.
  • Sortino Ratio: Sortino Ratio is used to measure the level of risk in a portfolio.  The higher the Sortino ratio, the better a portfolio has performed relative to the risk taken.  It is often use to compare the risk take between different portfolios to achieve a certain return.  Calculated since inception of the Fund’s A-Share.
  • Standard Deviation: Standard Deviation is the square root of the variance of each data point relative to its mean.  It measures the historical volatility of an investment relative to its annual rate of return.