13D: A form that must be filed with the SEC under Rule 13D. The form is required when a person or group acquires more than 5% of any class of a company's shares.
ABS: Acronym for asset backed security. An asset-backed security is a financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities.
ADR: American depository receipt
Alpha: A measure of difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. Positive alpha indicates the portfolio has performed better than its beta would predict and negative alpha indicates the portfolio underperformed, given expectations established by beta.
AMS: Acronym for the Amsterdam Exchange.
Australian Dollar (AUD): Currency of the Commonwealth of Australia.
Average 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. Time periods are weighted by multiplying by the present value of its cash flow divided by the bond’s price.
Average Maturity: Computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures.
Basel III: a global, voluntary, comprehensive set of reforms for the banking sector in order to improve regulation, supervision and risk management.
BofA Merrill Lynch LIBOR® Three-Month Constant Maturity Index: This index represents the London interbank offered rate (LIBOR) with a constant three-month average maturity. Published by the British Bankers' Association, LIBOR is a composite of the rates of interest at which banks borrow from one another in the London market.
Bank of England: The central bank of the United Kingdom.
Bank of Japan (BOJ): The Bank of Japan is the central bank for Japan. The bank
implements monetary policy and is responsible for issuing/handling currency as
well as treasury securities.
Barclays 1-3 Year U.S. Government/Credit Index: This index measures the performance of Treasuries, government-related issues and corporate bonds with maturities from one to three years.
Barclays U.S. Aggregate Bond Index: An unmanaged, market-value-weighted index of taxable investment-grade fixed rate debt issues including government, corporate, asset-backed and mortgage-backed securities with maturities of one year or more.
Basis points: A basis point is 1/100 of a percentage point in the context of interest rates and bond yields. For example, an interest rate increase of 0.25 percentage point by the Federal Reserve would be generally referred to as an increase of 25 basis points.
Beta: The measure of a fund’s sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market. A portfolio with a beta less than 1 is less volatile than the market.
BMV: Acronym for the Mexico Stock Exchange.
Brazil's Bovespa Index: A gross total return index weighted by market value to the free float & is comprised of the most liquid stocks traded on the Sao Paulo Stock Exchange.
Brazilian Real (BRL): Currency of Brazil.
Brent Crude: A major trading classification of crude oil sourced from the North Sea.
British Sterling: The official currency of the United Kingdom, also referred to as pound or pound sterling.
BVMF: Acroynm for Sao Paulo Stock Exchange.
CAC Financials Index: A capitalization weighted index of French financial stocks based on the industry classification.
Canadian Dollar (CAD): Currency of Canada.
Capital Structure: A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity.
Cash Flow Yield: Cash flow yield is a ratio of a company’s cash flow per share
divided by the company’s market price.
CBOE Volatility Index (VIX): Measure of implied volatility of S&P 500 Index options.
CCC-rated securities: Non-investment-grade bonds that carry a CCC credit rating, a financial indicator to potential investors representing the quality of a bond.
Chinese Yuan (CNY): Currency of the People's Republic of China.
Citi Economic Surprise Index: an interesting data series that measures how data releases have generally compared to economists’ prior expectations.
CMBS: Acronym for commercial mortgage backed security.
Colombian Peso (COP): Currency of Colombia.
Consumer Price Index: The Consumer Price Index (CPI) measures the weighted average of prices of a basket of consumer goods and services.
CRB Index: Acronym for the Commodity Research Bureau Index, an index that measures the overall direction of commodity sectors.
Creative destruction: A process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.
Credit Default Swap Index: A credit default swap index is a basket of credit entities, including credit derivatives, that is actively traded. The two main indices are CDX and iTraxx.
Credit Quality Ratings: Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). The bond quality ratings indicated are assigned by credit rating agencies Standard & Poor’s and Moody’s, as an indication of an issuer’s creditworthiness. The highest credit quality rating available from these two rating agencies is used. Credit quality is subject to change.
Credit Suisse High Yield Bond Index: The Credit Suisse High Yield Bond Index tracks the performance of domestic noninvestment-grade corporate bonds.
CSFB Leveraged Stock Index: Comprised of companies that issue high-yield corporate bonds included in the Credit Suisse High Yield Bond Index. Performance returns for the Credit Suisse Leveraged Equity Index do not assume dividends are reinvested for the entire period.
DOL: Acronym for Department of Labor.
Daily Factor: A decimal representing the portion of an annual yield earned in one day.
The DAX (Deutscher Aktien Index, formerly Deutscher Aktien-Index): German stock index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.
Debt to EBITDA ratio: a measure of a company’s ability to pay off its incurred debt by giving an approximate amount of time needed to pay off all debt. Free-cash-flow is cash generated by a company’s normal business operations minus any capital expenditures.
Derivative: A security whose price is dependent upon or derived from one or more underlying assets. Examples of derivative instruments include options, futures contracts or swap agreements.
Dow Jones Industrial Average: An unmanaged price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ.
Duration: Fixed income statistic commonly used to measures the price sensitivity of a fixed income investment to a change in interest rates, typically expressed as a number of years.
EBIT: Acronym for earnings before interest and taxes. An indicator of profitability that takes a company’s revenue, or earnings, and subtracts its cost of goods sold and operating expenses.
EBITDA: Acronym for earnings before interest, taxes, depreciation and amortization, which is an indicator of a company’s financial performance.
ECB: Acronym for the European Central Bank, the monetary authority of the Eurozone.
E&P: Acronym for Exploration & Production.
EPS: Acronym for earnings-per-share, which is a rough measurement of the amount of a company’s profit that can be allocated to one share of its stock.
EPX: SIG Oil Exploration & Production IndexTM (EPXSM) is an equal weighted index composed of companies that own, lease, and operate oil and natural gas facilities.
ETF: Acronym for Exchange Traded Fund.
EM: Abbreviation for emerging markets.
EU: Acronym for the European Union, a collection of European countries that participate as one economic unit.
Euro (EURO): Currency used by the institutions of the European Union.
Euro Bund: A futures contract assigned by the Federal Republic of Germany.
European Central Bank (ECB): The monetary authority of the Eurozone.
Eurozone: The group of European Union nations whose national currency is the euro.
Extension Risk: The risk of a security’s expected maturity lengthening in duration due to the deceleration of prepayments.
Federal Open Market Committee (FOMC): A branch of the Federal Reserve Board that determines the direction of monetary policy.
Free cash flow: Cash generated by a company’s normal business operations minus any capital expenditures.
German Bund: A bond issued by Germany's federal government.
Global OECD Leading Economic Indicator: Organization for Economic Co-operation and Development (OECD) is a system of Composite Leading Indicators (CLIs) designed to provide early signals of turning points in business cycles.
Gross Domestic Product (GDP): The monetary value of all the finished goods and services produced within a country's borders in a specific time period, although GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
High Yield Bond: A high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.
High Yield CDX (credit derivative index): This index is a diversified basket of 100 equal-weighted high yield credits. A credit derivative is a security in which the price is dependent on the credit risk of one or more underlying assets.
High Yield Securities: Also known as non-investment grade securities, which are fixed-income instruments that carry a rating of 'BB' or lower by Standard & Poor's, or 'Ba' or below by Moody's and have a higher risk of default or other adverse credit event.
IFO: A key monthly survey that measures the business climate in Germany.
Information Ratio (Info. Ratio): a ratio of portfolio returns above index to the volatility of those returns.
International Energy Agency (IEA): An autonomous organisation which works to ensure reliable, affordable and clean energy for its 29 member countries and beyond.
International Monetary Fund (IMF): An international organization of 188 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth around the world.
Investment Grade (IG): A rating that indicates that a municipal or corporate bond has a relatively low risk of default.
IPO: Acronym for Initial Public Offering.
IRR: Acronym for Initial Rate of Return.
ISIS: Acronym for the Islamic State of Iraq and Syria.
JP Morgan Government Bond Index-Emerging Markets (GBI-EM) Index: This index tracks a basket of bonds in local currencies issued by emerging markets governments.
JPY: Japanese Yen is the official currency of Japan.
Japanese TOPIX Index: A free-float adjusted market capitalization-weighted index that is calculated based on all the domestic common stocks listed on the Tokyo Stock Exchange First Section.
KRX: Acronym for Korea Exchange.
Latam: Abbreviation for Latin America.
Lipper Alternative Credit Focus Funds Index An unmanaged index consisting of Funds that, by portfolio practice, invest in a wide-range of credit-structured vehicles by using either fundamental credit research analysis or quantitative credit portfolio modeling trying to benefit from any changes in credit quality, credit spreads, and market liquidity.
Lipper Core Bond Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest at least 85% in domestic investment-grade debt issues (rated in the top four grades) with any remaining investment in non-benchmark sectors such as high-yield, global and emerging market debt. These funds maintain dollar-weighted average maturities of five to 10 years.
Lipper Core Plus Bond Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest at least 65% in domestic investment-grade debt issues (rated in the top four grades) with any remaining investment in non-benchmark sectors such as high-yield, global and emerging market debt. These funds maintain dollar-weighted average maturities of five to 10 years.
Lipper Emerging Market Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, seek long-term capital appreciation by investing at least 65% of total assets in emerging market equity securities.
Lipper Global Multi-Cap Growth Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time.
Multi-cap funds typically have 25% to 75% of assets invested in companies inside and outside the United States. Multi-cap growth funds typically have an above-average price-to-cash flow ratio, price-to-book ratio and three-year sales-per-share growth value compared to the S&P/Citigroup World Broad Market Index.
Lipper International Large-Cap Growth Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest at least 75% of their equity assets in large-cap growth companies strictly outside the United States.
Lipper Mid-Cap Core Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest at least 75% of their equity assets in mid-cap core companies.
Lipper Multi-Cap Core Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time.
Lipper Short Investment-Grade Debt Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest primarily in investment-grade debt issues with dollar-weighted average maturities of less than three years.
Lipper Small-Cap Growth Funds Index: An unmanaged index consisting of Funds that, by portfolio practice, invest at least 75% of their equity assets in small-cap growth companies.
LNG: Acronym for Liquid Natural Gas.
LTRO: Acronym for long-term refinancing option.
Margin: Borrowed money that is used to purchase securities.
Market Cap: The total dollar market value of all of a company’s outstanding shares.
Master Limited Partnership: Master Limited Partnership is a publicly traded limited partnership with two types of partners; limited partner and general partner. The limited partner provides capital to the partnership, while the general partner is responsible for managing the affairs of the partnership.
MBS: Acronym for mortgage-backed security.
Mexican IPC Index: Index that tracks Mexico’s 35 largest companies.
Mexican Peso (MXN): Currency of Mexico.
Mortgage-backed Securities: A type of asset-backed security that is secured by a mortgage or collection of mortgages.
Mortage Pass-Through: A security created when one or more mortgage holders form a collection (pool) of mortgages and sells shares or participation certificates in the pool.
MSCI ACWI ex USA Index: A free, float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S.
MSCI EAFE Financials Index: A free-float weighted equity index of financial stocks with the MSCI EAFE Index.
MSCI EAFE Index: An arithmetic, market value-weighted average of more than 900 securities listed on the stock exchanges of countries in Europe, Australasia and the Far East.
MSCI Emerging Markets Index: A free, float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
MSCI Emerging Markets Growth Index: Captures large and mid cap securities exhibiting overall growth style characteristics across 23 Emerging Markets (EM) countries. The growth investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend.
MSCI Emerging Markets Quality Index: Based on the MSCI Emerging Markets Index, it aims to capture the performance of quality growth stocks by identifying stocks with high quality scores based on three main fundamental variables: high return on equity (ROE), stable year-over-year earnings growth and low financial leverage.
MSCI Emerging Markets Value Index: Captures large and mid cap securities exhibiting overall value style characteristics across 23 Emerging Markets (EM) countries. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.
MSCI Europe Index: Captures large and mid-cap representation across 15 Developed Markets (DM) countries in Europe. These countries include Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.
MSCI World Index: A free, float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
NASDAQ: A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.
NB: Acronym for Nigerian Stock Exchange.
Negative interest rate policy (NIRP): an unconventional monetary policy tool whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent.
Negative Duration: A situation where the traditional yield-price ratio is reversed. Bond prices increase as interest rates go up and decrease when interest rates fall.
Net Interest Margin: Metric to evaluate a firm's investments compared to its debts
Nigerian Naira (NGN): Currency of Nigeria.
NIM: Acronym for net interest margin, which is a metric to evaluate a firm's investments compared to its debts.
Non-earner: A company that has not reported positive earnings.
Non-investment Grade Securities: Also known as high yield securities, which are fixed-income instruments that carry a rating of 'BB' or lower by Standard & Poor's, or 'Ba' or below by Moody's and have a higher risk of default or other adverse credit event.
Nymex West Texas Intermediate Crude Index: Index used as a benchmark in oil pricing, based on a light, sweet crude oil that is the underlying commodity in oil futures contracts.
NYSE: Acronym for New York Stock Exchange.
OECD: Organization for Economic Co-operation and Development
Organization of Petroleum Exporting Countries (OPEC): A permanent intergovernmental organization of 14 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries.
PA: Acronym for personal account.
PCL: Acronym for Public Company Limited.
PIIGS: Acronym used to refer to the five Eurozone nations, which were considered weaker economically following the financial crisis: Portugal, Italy, Ireland, Greece and Spain.
PJSC: Acronym for Private Joint Stock Company.
PLC: Acronym for Public Limited Company.
PMI: Acronym for Purchasing Managers’ Index, which is an indicator of the economic health of the manufacturing sector.
PRI: Partido Revolucionario Institucional or Institutional Revolutionary Party
Patient Protection and Affordable Care Act (PPACA): The Patient Protection and Affordable Care Act (PPACA) (also
called the Affordable Care Act (ACA) is a United States federal statute that
resulted in a significant regulatory overhaul of the U.S. health care system.
Peruvian Nuevo Sol (PEN): Currency of Peru.
Portfolio leverage ratio: Company leverage is defined as its current total debt (short-term and long-term) divided by trailing twelve month company earnings before interest, tax, depreciation and amortization (EBITDA) as provided by Bloomberg. The portfolio leverage ratio is calculated internally by summing the leverage ratio of each company in the portfolio and dividing by the total number of companies. The average is calculated on an equally weighted basis as of the date provided and does not take into account companies that were sold during the period.
Price/Earnings Ratio (P/E Ratio): The P/E ratio is the ratio of a stock's latest closing price to its per share earnings.
Price/Book Ratio: This ratio is used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share.
Purchasing Managers Index (PMI): An indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
QE: Acronym used to refer to quantitative easing, a government monetary policy to increase the money supply by buying securities from the open market.
REITS: Acronym for Real Estate Investment Trusts, a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
Reflation: A fiscal or monetary policy designed to expand a country’s output and curb the effects of deflation. Reflation policies can include reducing taxes, changing the money supply and lowering interest rates.
Return on Equity (ROE): The amount of net income returned as a percentage of shareholders equity.
Revenue neutral: Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws.
R-squared: The percentage of a fund’s movement that is explained by movements in its benchmark index.
Russell Midcap® Index: This index consists of the smallest 800 securities in the Russell 1000 Index, as ranked by total market capitalization. This index accurately captures the medium-size universe of securities and represents approximately 34% of the Russell 1000 Index total market capitalization.
Russell Midcap® Growth Index: This index measures the performance of firms having higher price to book ratios and higher
forecasted growth values within the Russell Midcap Index.
Russell Top 200® Index: An unmanaged, market capitalization weighted index of the largest 200 companies in the Russell 3000; used as a benchmark for U.S.-based large-cap stocks.
Russell 2000® Biotechnology (Biotech) Index: This index is comprised of the smallest biotechnology companies in the Russell 3000 Index.
Russell 2000® Growth Index: This index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 2000® Index: This index consists of the smallest 2,000 securities in the Russell 3000 Index representing approximately 11% of the Russell 3000 total market capitalization, and is widely regarded in the industry as the premier measure of small capitalization stocks.
Russell 2000® Value Index: This index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forcasted growth values.
Russell 3000® Index: Measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
Russian Ruble (RUB): Currency of Russia.
S&P 500 Index: The Standard & Poor 500® Index is an unmanaged, capitalization-weighted index (weighted by the market value of the companies) of 500 stocks listed on various exchanges.
Secondary share offering: This occurs when a company makes additional shares of the company available after the initial public offering.
Selling, General and Administrative (SG&A) Expenses: A line item on a company’s income statement that represents the sum of all direct and indirect selling expenses and all general & administrative expenses.
Shanghai Stock Exchange Composite Index: A capitalization-weighted index. The index tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange.
Sharpe Ratio: This ratio uses a fund’s standard deviation and its excess return (the difference between the fund’s return and the risk-free return of 90-day Treasury Bills) to determine reward per unit of risk.
SMID: Acronym for Small- to Mid-Cap Equity Strategy.
30-Day SEC Yield: An annualized yield based on the most recent trailing 30-day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.
South African Rand (ZAR): Currency of South Africa.
Spread sectors (sector spread): The spread between the interest rate offered in two sectors of the bond market for issues of the same maturity.
Special Drawing Rights (SDR): Special Drawing Rights is an international type of monetary reserve currency created by the International Monetary Fund which functions as a supplement to the existing reserves of member countries.
Standard Deviation: A calculation used to measure variability of a portfolio’s performance.
State Owned Enterprise (SOE): A legal entity that is created by the government in order to partake in commercial activities on the government’s behalf.
Stock Multiple: Metric to show how much investors are willing to pay per dollar of earnings, as computed by the price/earnings ratio.
Swiss Franc (CHF): Currency and legal tender of Switzerland.
Tangible Book Value: Method of valuing a company on a per-share basis by measuring its equity after removing any intangible assets.
TIPS: Treasury Inflation Protected Securities, which are securities that are indexed to inflation.
TLTRO: Targeted Long-Term Refinancing Operations.
TR/J CRB Index: The Thomson Reuters/Jefferies CRB Index (TR/J CRB) is a commodity futures price index.
Trade weighted dollar index (DXY): An index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners’ currencies.
Troubled Asset Relief Program (TARP): A United States Treasury
program to purchase toxic assets and equity from financial institutions in
order to stabilize the country’s financial system, restore economic growth and
prevent foreclosures in the wake of the 2008 financial crisis.
Turkish Lira (TRY): Currency of Turkey.
Turnover Ratio: A measure of the fund's trading activity, computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than a year) divided by average monthly net assets.
U.S. Dollar Index: The index indicates the general international value of the United States Dollar (USD) by averaging the exchange rates between the USD and major world currencies.
U.S. Manufacturing PMI: The Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector.
VIX Index: The Chicago Board Options Exchange (CBOE) Volatility Index® (VIX Index) is a key measure of market expectations of near-term (30-day) volatility.
Weighted average leverage ratio: Company leverage is defined as its current total debt (short-term and long-term) divided by trailing twelve month company earnings before interest, tax, depreciation and amortization (EBITDA) as provided by Bloomberg. The portfolio leverage ratio is calculated internally by summing the leverage ratio of each company in the portfolio and dividing by the total number of companies. The average is calculated on an equally weighted basis, and does not take into account companies that were sold during the period.
West Texas Intermediate (WTI): Light, sweet crude oil that is the underlying commodity in oil futures contracts and used as a benchmark for the price of oil.
Yield Curve: A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.
Yield to Maturity/Call of a bond fund: Calculated using the estimated weighted average rate of return to maturity of each underlying security held by the fund and the estimated weighted average yield of each underlying security if the underlying security has a call date and the fund were to buy and hold securities until the call date.
Yield Spread: A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings and risk, calculated by deducting the yield of one instrument from another.
Yuan: Is the base unit of the renminbi, which is the official currency of the People’s Republic of China. The yuan is often used to reference the Chinese currency.