Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

AAA-ratedMoney Market Funds (MMFs) rated AAA are judged to be of an investment quality similar to AAA-rated fixed income obligations, meaning they are considered to be of the highest quality. The highest MMF ratings by the top three ratings agencies are: AAAm with Standard & Poor’s, Aaa-mf with Moody’s, and AAAmmf with Fitch.

Absolute returnThe rate of return an asset actually achieves, rather than the return it achieves relative to a benchmark index.

Active/fundamentalThe process whereby managers use extensive research and human judgement to identify companies that they believe will create long-term value.

All-in yield Represents the total return an investor can anticipate, incorporating not only the coupon rate but also any associated fees, commissions, or other costs related to the bond. It provides a more comprehensive view of the bond's profitability beyond just the interest payments

AlphaThe measurement of the difference between a portfolio’s actual returns and its expected returns given its risk level as measured by its beta. A higher alpha is better, but a high alpha is only reliable in the presence of a high R-squared value. It can be viewed as a risk-adjusted measure of return. Some advisors see alpha as a measurement of the value added or subtracted by a fund’s manager. A positive alpha figure indicates the portfolio has performed better than its beta would predict. A negative alpha figure indicates a portfolio has underperformed, given the expectations established by the fund’s beta.

Alternative InvestmentsAn investment that is not one of the three traditional asset types (stocks, bonds and cash). Alternative investment strategies typically have the ability to use leverage, shorting, and active risk management in pursuit of returns that are lowly correlated with traditional asset types.

Annual reportAn audited, SEC-required document that is sent to fund shareholders following the end of each fiscal year. It discloses the financial results for the year and provides information about certain aspects of a fund’s operations.

Asset AllocationAn investment strategy that seeks to balance risk and reward by dividing investments among different kinds of asset classes, such as stocks, bonds, and cash.

Asset ClassA group of securities that share similar characteristics and behave similarly in the marketplace. Asset classes are generally governed by the same rules and regulations.

Asset-Backed SecuritiesA type of debt security that is based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets. Assets are pooled to make otherwise minor and uneconomical investments worthwhile, while also reducing risk by diversifying the underlying assets. An example of an asset-backed security is a mortgage-backed security, whose cash flows are backed by the principal and interest payments of a set of mortgage loans.

Asset-backed bondA bond based on the value of underlying assets such as bank loans or credit card loans.

Assets under Supervision (AUS)The assets supervised by Goldman Sachs Asset Management and its investment advisory affiliates. Assets under supervision (AUS) includes client accounts for which Goldman Sachs does not have full discretion.

Average Monthly YieldAn average of the one-day yield for all of the days within the month shown, net of management fees and expenses. These figures may contain capital gains and losses and therefore do not conform to the same formula as the 7-day yield calculations.

Average annual returns with loadA figure used to report the historical return of a mutual fund over a period of time. "With Load" indicates that this calculation includes sales charges/mutual fund fees associated with the purchase of shares.

Average annual returns without loadA figure used to report the historical return of a mutual fund over a period of time. "Without Load" indicates that this calculation omits any sales charges/mutual fund fees associated with the purchase of shares.

BPSRefers to basis points or 1/100th of 1%.

BRICAn abreviated term for Brazil, Russia, India, and China.

Barriers to entryThe existence of high start-up costs and other obstacles that make it difficult for new firms to enter an industry and compete for revenue.

Basis riskThe risk of a mismatch in price between the hedging instrument and the underlying asset.

Batting averageThe ratio between the number of quarters where the manager outperforms a benchmark and the total number of quarters. Focuses on shorter term (quarterly) performance.

Below CostWhen a portfolio company is marked below cost, the investment is earning a negative return.

BenchmarkA basket of bonds representing the market, e.g. a specific sector or a geographical region. Comparing a fund to the returns achieved by the benchmark is a way of evaluating its performance.

Benchmark indicesA benchmark index is often used to evaluate a fund’s performance. For example, a UK gilt fund might be compared to the FTSE UK Gilts All Stocks Index.

BetaRefers to the tendency of a security’s returns to respond to swings in the markets.

Biodiversity Intactness Index (BII)Biodiversity Intactness Index (BII) from the Natural History Museum shows how local terrestrial biodiversity responds to human pressures such as land use change and intensification.  

Bloomberg Global Aggregate IndexCovers the most liquid portion of the global investment grade fixed-rate bond market, including government, credit and collateralized securities.

Bloomberg Municipal Bond IndexCovers the USD-denominated long-term tax-exempted bond market, including state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds.

Bloomberg US Aggregate Bond IndexA broad-based flagship benchmark that measures the investment-grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, fixed-rate agency MBS, ABS and CMBS (agency and non-agency).

Bloomberg US Aggregate Corporate Index Is a sub-index of the Bloomberg US Aggregate Bond Index. It represents the investment-grade, fixed-rate, taxable corporate bond market.

Bloomberg US Aggregate Index Covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

BoJThe Bank of Japan

BondsA debt investment whereby investors loan money to entities (i.e. a corporation or government) to help them finance a variety of projects and activities. The entity borrows funds for a defined period of time at a particular interest rate. Types of bonds include corporate, municipal and U.S Treasury notes, bills and bonds, known as Treasuries.

BreakpointThe investment levels required to obtain a reduced sales load. Some mutual funds that charge front-end sales loads will charge lower sales loads for larger investments.

Business Development Company (BDC)A US company that invests in small- and mid-sized businesses.

CUSIPThe Committee on Uniform Securities Identification Procedures (CUSIP) assigns a number identifying stocks, registered bonds, and mutual funds. Brokers and dealers will use a security's CUSIP number to get further information about that security. The CUSIP number will also be listed on any trading confirmation tickets. The CUSIP system makes it easier to settle and clear trades.

Call OptionsA contract to buy an underlying asset at a specific price and time period.

CapexCapex refers to capital expenditures.

Capture RatioA measurement of how well a manager was able to participate in phases of positive (up) benchmark returns, and how badly the manager was affected by phases of negative (down) benchmark returns. A manager seeks to have a larger up-capture ratio and a smaller down-capture ratio.

CarryRefers to the expected return of holding a credit instrument assuming the credit spread remains constant. It represents the income or cost associated with holding the position over time. This can be further broken down into the credit spread itself and the "roll-down" effect, which is the potential return from holding a bond as it moves down the yield curve over time.

Carry tradeThe process of using low rates of interest on one currency to borrow that currency for investment in another currency offering a higher rate of return.

Cell TowersAlso known as cellular base stations, are critical infrastructure components of wireless communication networks.

Central Processing Units (CPUs) and Graphics Processing Units (GPUs)Hardware components of a computer that process data and execute specific commands.

Certificates of depositA debt instrument issued by a bank that will pay interest— periodically or at maturity—and principal when it reaches maturity. A bank’s creditworthiness is rated by impartial agencies such as Moody’s and Standard & Poor’s. Unlike time deposits, certificates of deposit trade actively on the secondary market.

CharacteristicsThe measurement and statistics of securities held by each portfolio and its benchmark.

ChatGPTA large language model-based chatbot developed by OpenAI.

Clean EnergyClean energy is produced from sources that release no greenhouse gases or other pollutants into the environment.

CollateralAn asset (cash or securities) posted from one counterparty to another, and held as a guarantee against the value of a specified portfolio of trades. Commonly referred to as margin, the collateral also acts to mitigate credit risk.

Collateral callA demand by a derivatives counterparty for an investor to transfer cash or securities to collateralize movements in the value of derivatives contracts.

Collateralized Mortgage Obligations (CMO)A type of mortgage backed security. Investors in a CMO buy bonds issued by the entity, and receive payments according to a defined set of rules. The mortgages themselves are called the collateral, the bonds are called tranches (also called classes), and the set of rules that dictates how money received from the collateral will be distributed is called the structure.

Commercial Mortgage-Backed Securities (CMBS)A mortgage-backed security secured via a loan on a commercial property.

Commercial paperShort-term notes issued by a wide variety of corporations such as domestic and foreign firms and financial institutions. These short term obligations have maturity dates of up to one year.

Commodity InvestmentsAn investment in a commodity provides investors with access to “real assets” such as oil, agriculture goods, and precious metals. The returns on commodity investments are generally tied to different economic factors and, therefore, can by less correlated to the returns of traditional stocks and bonds.

Conditional Value at RiskAlso known as the expected shortfall, is a risk assessment measure that quantifies the amount of tail risk an investment portfolio has. THE “cVaR at q% level” is the expected return on the portfolio in the worst q% of cases.

Convertible bondA type of bond that allows the holder to exchange it for a number of shares of the issuer’s common stock.

Copilot agentsCopilot agents are specialized AI assistants designed to enhance the capabilities of an enterprise (Microsoft in this instance) by connecting to your organization’s knowledge and data sources.

Core and SatelliteA portfolio construction strategy that separates an investment portfolio into two components to seek additional return opportunities. Investors achieve their desired exposure to equity and bond markets through Core investments — typically US large cap equities and fixed income put to work through passive, structured and/or actively-managed strategies. They then pursue alpha opportunities through less correlated Satellite strategies such as emerging markets, high yield and/or private equity investments.

Corporate Credit BondsBonds issued by a company.

CorrelationIs a measure of the amount to which two investments vary relative to each other. Past correlations are not indicative of future correlations, which may vary.

Cost EffectiveSomething that is cost-effective saves or makes more money in comparison with the costs involved.

CounterpartyA legal and financial term used to identify the other party in a derivatives contract.

Counterparty riskA legal and financial term used to identify a party in a derivatives contract.

CouponA regular payment (usually made every six months) paid throughout the bond’s life. For example, a £1,000 bond with a coupon of 5% will pay £50 a year.

Covered bondsDebt instruments with dual recourse to both the issuer and a segregated pool of collateral, usually mortgages.

Credit Default Swaps (CDS)A financial instrument designed to transfer the credit exposure of fixed income securities between parties. It is essentially an insurance contract that enables a seller to protect against the risk of default on debt obligations for a specific issuer.

Credit Quality RatingAssesses the financial ability of a debt issuer to make timely payments of principal and interest Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality.

Credit RatingA credit rating is an assessment of the credit risks associated with a financial instrument or a financial entity. "AA" and "BBB" are considered investment grade. Ratings are subject to change and do not eliminate the risks of investing.

Credit RiskThe possibility that the country will default on its debt.

Credit eventA credit event that can include company restructuring, insolvency or default (in the context of a credit default swap).

Credit-Adjusted Duration (Yrs)A bond's option adjusted duration, adjusted for the bond's spread and the impact this may have on the bond's sensitivity to changes in interest rates.

Currency Forward ContractA contract designed to lock in the price at which an investor can buy or sell a currency at a future date. Usually, no cash exchanges hands until the expiration date, when the contract is settled on a net basis based on its notional amount.

Current yieldThe annual return on the amount paid for a bond. Derived by dividing the bond’s interest payment by its purchase price.

Custom MSCI ACWI Global Smaller Cap Tech Index Custom MSCI ACWI Global Smaller Cap Tech Index is the MSCI ACWI Select Information Technology + Communication Services (excluding >$100B Market Cap).

Custom MSCI ACWI Global Tech Index Custom MSCI ACWI Global Tech Index is MSCI ACWI Select Information Technology + Communication Services.

DAX Total Return Daily Hedged USD tracks the performance of the 40 largest companies listed on the Regulated Market of the Frankfurt Stock Exchange.

DecouplingA scenario that occurs when the returns from a particular asset class become uncorrelated with another asset class where previously there has traditionally been a strong relationship. E.g. the developing economies have recently shown signs of decoupling from the developed world.

DerivativeA security whose price is dependent upon or derived from one or more underlying assets. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates, and market indexes. Futures contracts, forward contracts, options, and swaps are the most common types of derivatives.

Discounted Free Cash FlowA future cash flow multiplied by discount factors to obtain present value of a company.

Diverse-Owned Broker DealerMinority, Women and/or Veteran owned broker dealers.

DiversificationA risk management technique involving the spreading of an investment portfolio among multiple vehicles with varied levels of risk, industry, and geographic exposure.

Dividend Discount ModelA formula to estimate the intrinsic value of a company by figuring the present value of all expected future dividends.

Dividend FactorThe annual interest rate of a specific money market instrument divided by 365. When multiplied by the account balance of each client, will show the daily dividend accrued for each client.

DovishRelatively more accommodative monetary policy.

DurationThe weighted-average term-to-maturity of the bond’s cash flows, the weights being the present value of each cash flow as a percentage of the bond’s full prices. The greater the duration of a bond, the greater its price sensitivity. In general, duration rises with maturity, falls with the frequency of coupon payments, and falls as the yield rises (the higher yield reduces the present values of the cash flows). Duration also provides an indication of a bond portfolio’s price sensitivity to changes in interest rates.

Dynamic hedgeA hedging technique which seeks to limit an investment’s exposure by adjusting the hedge according to changes in the underlying security. As the value of the underlying moves, new positions can be taken in options or futures to offset the movement.

EBITDA (Earnings Before Interest, Taxes, Depreciation, And Amortization)A measure of cash flow calculated by: Revenue minus Expenses (excluding tax, interest, depreciation and amortization). EBITDA looks at the cash flow of a company. By not including interest, taxes, depreciation and amortization, we can clearly see the amount of money a company brings in.

ENCOREENCORE is a framework thats sets out how the economy – sectors, subsectors and production processes – depends and impacts on nature. Financial institutions in particular can use data from ENCORE to identify nature-related risks they are exposed to through their lending, underwriting and investment in high-risk industries and sub-industries.

ETF WrapperAn account that only invests in exchange traded funds.

Earnings per share (EPS)A company’s profit divided by the number of shares. A company with £2m in earnings and 10 million shares would have an EPS of 20 pence.

Emerging markets debt externalEmerging markets debt issued in another country’s currency.

Emerging markets debt localEmerging markets debt issued in local currency.

Enterprise ValueThe market capitalization of a company’s equity plus the market value of the company’s debt. Often, the value of assets that are non-core are excluded from the final calculation. Often referred to as a company’s total market capitalization.

EquityAn investment type focused on stocks or other securities representing an ownership interest in a company. Investors typically invest in equities or equity portfolios for dividend income and/or capital appreciation.

Equity risk premiumThe extra return that the stock markets must provide over gilts to compensate for the additional investment risk.

European Securities and Markets Authority (ESMA)An independent EU Authority that contributes to safeguarding the stability of the European Union’s financial system by ensuring the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor protection. In particular, ESMA fosters supervisory convergence both amongst securities regulators, European Supervisory Authorities competent in the field of banking (EBA), and insurance and occupational pensions (EIOPA). In 2010, ESMA released guidelines for a common definition of European money market funds (MMFs).

Evergreen FundsA type of semi-liquid investment vehicle providing exposure to private companies.

Exchange-Traded Fund (ETF)An investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

Exchange-traded derivatives contractsA standardised derivatives contract (e.g. futures contracts and options) that is transacted on an organised exchange.

Expense Ratio - GrossThe total of a mutual fund's annual fund operating expenses (assuming no expense reductions), expressed as a percentage of the fund's average net assets.

Expense Ratio - NetA mutual fund's annual fund operating expenses (excluding fee waivers and reimbursements), expressed as a percentage of the fund's average net assets.

Expense ratioThe operating costs of a money market fund (MMF) expressed as a percentage of the fund’s average net assets for a given time period.

FTSE EPRA Nareit Developed Europe Index A stock market index designed to represent the performance of listed real estate companies and REITs (Real Estate Investment Trusts) in the developed European markets.

FTSE Nareit All Equity REITs Index A stock market index that represents the performance of all Equity REITs (Real Estate Investment Trusts) listed on US stock exchanges.

FedThe US Federal Reserve System

Financial LeverageThe use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt-to-debt plus equity. A company with high financial leverage is more dependent on debt rather than revenue to drive return on equity.

Financial derivative / Derivative instrumentA financial product whose price is determined by the performance of another asset.

Fixed Income InvestmentsInvestments that provide regular (or fixed) returns in the form of periodic coupon payments and a return of principal upon maturity of the security. Investors typically invest in fixed income portfolios for regular streams of income, diversification from equity risk, and/or the potential for some capital appreciation.

Floating Rate Notes (FRNs)A debt instrument with a variable interest rate. The coupon rate of these notes is pegged to a benchmark floating rate, typically the London Interbank Offered Rate (LIBOR), and refixed quarterly to three-month LIBOR or semiannually to six-month LIBOR rates.

For additional terms and definitions please see below

Foreign Exchange Prime Brokerage Agreement (FXPB)A contractual agreement that enables a party to trade with multiple foreign-exchange forward counterparties under an International Swaps and Derivatives Association (ISDA) Master Agreement or an Inrernational Foreign Exchange Master Agreement (IFEMA), while having all positions held and maintained by one broker/dealer.

Forward ratesThe expected rate of a currency at an agreed time in the future based on interest rates relative to other currencies.

ForwardsAn agreement between two parties to buy or sell an asset at a specified point of time in the future. The price of the underlying instrument, in whatever form, is paid before control of the instrument changes.

Free Cash FlowThe amount of cash generated by the business after meeting all its obligations for interest, tax, and dividends and after all capital investment, excluding share sales or purchases by the business.

Frontier MarketsThe frontier, or pre-emerging, markets are investable but have lower market capitalization and liquidity than more established emerging markets. Investors are attracted to these markets by the prospect of higher potential returns, although they need to be aware of the increased risks. Frontier markets include Mauritius, Romania, and Vietnam.

Frontier modelFrontier model, a dual-use foundation model, is an AI model that is trained on broad data; generally uses self-supervision; contains at least tens of billions of parameters; is applicable across a wide range of contexts.

FundamentalAn investment approach that involves studying the economic and financial factors that influence the price of an asset.

Fundamental EquityA strategy employing fundamental analysis, whereby research using economic, financial, qualitative, and quantitative factors is employed to select investments. Fundamental analysis seeks to take a holistic view of factors that may impact the value of a security (i.e. economic and sector conditions) and individually specific factors (i.e. company management).

FuturesA financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price.

G7A group of seven of the largest developed nations, whose representatives meet periodically to discuss economic issues. It was formed in 1976 and consists of Canada, France, Germany, Italy, Japan, United Kingdom, and United States.

GARCH model (generalized autoregressive conditionally heteroscedastic)A statistical model that predicts and analyzes volatility in time series data. It uses values of the past squared observations and past variances to model the variance at time.

Generative artificial intelligence (AI) Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos.

German DAX A capitalization-weighted blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

GiltsBonds issued by the UK government.

Goldilocks EconomyAn economy that sustains moderate economic growth, and that has low inflation, which allows a market-friendly monetary policy.

Good ValueStocks from companies that may be undervalued by the rest of the market. These stocks tend to outperform as they move toward fair value. This can help you gain exposure to high potential stocks others may have overlooked.

Government-backed securitiesA debt instrument issued by government and supra-national agencies, offering investors an additional degree of safety.

Green capital expenditureGreen capital expenditure is expenditures required to meet net zero, clean water and infrastructure requirements.

Gross Domestic Product (GDP)The value of finished goods and services produced within a country's borders over one year.

Growth MarketsThe economies that represent at least 1% of global GDP are named by Goldman Sachs Asset Management “Growth Markets”. Eight countries currently satisfy this criterion: each of the BRIC countries (Brazil, Russia, India and China), as well as the four largest “Next 11” (N-11) countries: Mexico, Korea, Turkey, and Indonesia. These are the economies that are most likely to experience rising productivity coupled with favourable demographics and, therefore, a faster growth rate than the world average going forward. Additional characteristics that we implicitly use to distinguish Growth Markets from Emerging Markets include their growth environment, as well as the level of financial development and accessibility to investors.

HaircutThe specific amount of overcollateralisation that might be required when a particular asset is taken as collateral.

Hang Seng TECH Indexaims to represent the 30 largest technology companies listed in Hong Kong which have high business exposure to the Innovative Tech Themes.

HawkishA more aggressive monetary policy, the opposite of Dovish

HedgingA method of insuring against future currency movements that could prove costly. A popular method of hedging is to enter into a forward contract so as to guarantee that a foreign currency sale or purchase will be concluded at the agreed rate.

High QualityStocks from companies that efficiently generate profits over time. This allows you to gain exposure to companies with strong fundamentals and the potential for consistent returns.

High Yield BondA bond rated below Investment Grade.

HyperscalerHyperscaler is a large technology company that operates massive, global networks of data centers and drives significant industry growth with their expansive cloud computing capabilities.

Inception DateThe commencement date of a fund’s performance.

Index-linked securityA bond where income payments are related to a specific price index.

Individual Retirement Accounts (IRA)Provides tax advantages for retirement savings.

Information ratioA risk-adjusted measure of return which uses tracking error to represent risk. Specifically, it is the annualized excess return of the manager over the benchmark divided by the tracking error. A larger information ratio implies more return for less risk and measures the consistency with which a manager beats a benchmark.

Initial marginAn upfront collateral requirement that is set aside as a guarantee to the underlying futures contract; generally a percentage of the notional amount of a futures contract.

Integrated Biodiversity Assessment Tool (IBAT)Integrated Biodiversity Assessment Tool (IBAT) is a biodiversity data provider licensing commercial access to global biodiversity datasets and derived data layers.

Interest Rate RiskThe risk that a rise in rates will decrease the value of the bonds the investor holds.

Interest Rate SwapAn agreement between two counterparties to exchange future cash flows for a set period of time. Typically, one counterparty agrees to pay a fixed interest rate in exchange for receiving a floating interest rate in the same currency. The cash exchanged at each payment date is based on the notional amount agreed upon at the beginning of the contract.

Interest rate swaptionA scenario that gives the buyer the option to enter into an interest rate swap. In exchange for a premium, the buyer has the right, but not the obligation, to enter into a specified swap with the issuer on a specified future date.

Investment CommentaryA commentary designed to track recent market events and product performance. Usually provided on a monthly, quarterly or annual basis.

Investment Grade Corporate BondsA bond issued by companies with high credit ratings.

Investment grade bondA relatively safe bond with a credit rating of BBB or above from an independent rating service such as Standard and Poor’s.

IssuerThe company, government or other entity issuing a bond.

Japan TOPIX IndexA capitalization-weighted index of the largest companies and corporations that are found in the First Section of the Tokyo Stock Exchange.

JunkA high-yield security.

KIID (Key Investor Information Document)A document, required by law, to help investors understand the nature and the risks of investing in a fund.

LEED(Leadership in Energy and Environmental Design) is a green building rating system developed by the US Green Building Council (USGBC).

LIBID (London Interbank Bid Rate)The average interest rate at which major London banks borrow Eurocurrency deposits from other banks. LIBID is calculated through a survey of London banks to determine the interest rate at which they are willing to borrow large Eurocurrency deposits.

LIBOR (London Interbank Offered Rate)The London Interbank Offered Rate is an interest rate at which banks can borrow funds from other banks in the London interbank market.

LeverageThe act of using borrowed funds, or debt, in an effort to increase the returns to equity. The reversal of the leveraging process is known as deleveraging.

Lipper Total Return RankingsAn independent publisher of mutual fund rankings, records rankings for these and other Goldman Sachs Funds for one-year, three-year, five-year, and ten-year total returns. Lipper compares mutual funds within a universe of funds with similar investment objectives, including dividend reinvestment. Lipper rankings are based on total return at net asset value and do not reflect sales charges. Lipper rankings do not imply that the fund had a high total return.

LiquidityAn asset’s ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value.

Liquidity riskThe risk of loss stemming from being unable to unwind a position due to the unavailability of a willing counterparty to offset the trade.

Local Corporate DebtDebt denominated in the local currency of the issuing company, rather than an external currency such as the US dollar or euro.

Local Sovereign DebtEmerging market government debt denominated in the currency of the issuing country rather than an external currency such as the US dollar or euro.

LongA long position means an investor has bought and owns shares of stock.

Long-dated bondA bond whose revenue stream is generated over a long period of time, 20 years for example.

Long-onlyPhysically owning a stock. The goal is to profit if the stock price rises.

Long-termA view of around 18 months or more.

Low VolatilityA relatively low degree of fluctuation in a companies share price over time.

Lower CostReduced fund expenses keep investor fees down.

MSCI ACWI IMI (All Country World Index Investable Market Index) A comprehensive global equity index that aims to represent the full opportunity set of investable equities across developed and emerging markets.

MSCI All Country World Index (ACWI)MSCI All Country World Index (ACWI) captures large and mid cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries.

MSCI EAFE IndexA stock market index that measures the performance of large- and mid-cap companies across 21 developed markets countries around the world.

MSCI Emerging Markets (EM) Index Captures large and mid-cap representation across 24 Emerging Markets (EM) countries. With 1,250 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

MSCI Europe Indexcaptures large and mid cap representation across 15 Developed Markets (DM) countries in Europe.

MSCI India IndexDesigned to measure the performance of the large and mid cap segments of the Indian market. With 156 constituents, the index covers approximately 85% of the Indian equity universe.

MSCI World Climate Change Index The MSCI World Climate Change Index “includes large and mid-cap securities across Developed Markets countries. The index aims to represent the performance of an investment strategy that re-weights securities based upon the opportunities and risks associated with the transition to a lower carbon economy, while seeking to minimize exclusions from the parent index. The Indexes are designed to exceed the minimum standards of the EU Climate Transition Benchmark. Definition found on the MSCI website. As of September 29, 2025.

MSCI World SRI Filtered PAB Index The MSCI World SRI Filtered PAB Index “is based on the MSCI World Index, its parent index, and includes large and mid-cap securities across 23 Developed Markets (DM) countries. The index is designed to represent the performance of companies that have high Environmental, Social and Governance (ESG) ratings relative to their sector peers, to ensure the inclusion of the best-in-class companies from an ESG perspective. Additionally, the index aims to target sector weights that reflect the relative sector weights of the underlying MSCI Global Investable Market Indexes to limit the systematic risk introduced by the ESG selection process. The index is designed to align with the minimum requirements for EU Paris-Aligned Benchmarks (EU PAB). Definition found on the MSCI website. As of September 29, 2025.

MSCI World SRI Index The MSCI World SRI Index “includes large and mid-cap stocks across 23 Developed Markets countries. The index is a capitalization-weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings and excludes companies whose products have negative social or environmental impacts. The Index is designed for investors seeking a diversified Socially Responsible Investment (SRI) benchmark comprised of companies with strong sustainability profiles while avoiding companies incompatible with values screens. Definition found on the MSCI website. As of September 29, 2025.

MSCI World Screen Index The MSCI World Screen Index “includes large and mid-cap securities across 23 Developed Markets countries. The index excludes companies from the parent index that are associated with controversial, civilian and nuclear weapons and tobacco, palm oil and arctic oil & gas or that derive revenues from thermal coal and oil sands extraction and that are not compliant with the United Nations Global Compact principles. The index also excludes companies that are involved in very severe controversies and/or in certain biodiversity-related controversies and targets a minimum 30% reduction in carbon emission intensity relative to the underlying parent index. Definition found on the MSCI website. As of September 29, 2025.

MSCI World Selection Index The MSCI World Selection Index is “a free float-adjusted market capitalization-weighted index designed to represent the performance of companies that are selected from the MSCI World Index (Parent Index) based on Environmental, Social and Governance (ESG) criteria. These criteria exclude constituents based on involvement in specific business activities, as well as ESG ratings and exposure to ESG controversies. Definition found on the MSCI website. As of September 29, 2025.

Magnificent 7Magnificent 7 are a group of high-performing and influential companies in the U.S. stock market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.

MarginThe amount of collateral required to enter into a derivative transaction, usually in the context of futures and primebrokerage accounts.

Market BetaRefers to the tendency of a security’s returns to respond to swings in the markets.

Market CapitalizationA measurement of the size of a business enterprise (corporation) equal to the share price times the number of shares outstanding of a public company – the total market value of the equity in a publicly traded entity.

Market ExposureA financial term which measures the proportion of money invested in the same industry sector. For example, a stock portfolio with a total worth of $500,000, with $100,000 in semiconductor industry stocks, would have a 20% exposure in "chip" stocks.

Master Limited Partnership (MLP)A type of limited partnership company that is publicly traded on a securities exchange.

MaturityThe date on which the issuer will repay the par value of the bond. This can range from a short period measured in months to the very long term, over 40 years.

Maximum Sales ChargeA percentage upfront charge imposed on the purchase of shares. The maximum sales load for mutual funds is restricted by the Financial Industry Regulatory Authority (FINRA) to be no more than 8.5% of the amount invested.

Mean Species AbundanceMean Species Abundance (MSA) is an indicator of local biodiversity intactness relative their existence in undisturbed ecosystems.

Medium termA view over the next three to 18 months.

Mega cap Mega cap is a designation for the largest companies in the investment universe as measured by market capitalization.

Momentum – Beta- And VolatilityAdjusted daily total returns over an 11-month period ending one month before the Rebalance Date.

Money MarketsMoney market funds trade in short-term debt and monetary instruments. Money markets are viewed as lower risk (but not risk free) investments that historically have provided a better return to investors than cash.

Monthly PerformancePerformance metrics reflecting the immediate 30 day period of the Fund.

Morningstar Risk-Adjusted RatingsThe Overall Rating is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating Metrics. Morningstar, Inc. is an independent publisher of mutual fund research and ratings. Ratings reflect a fund’s risk-adjusted 3-, 5, and 10-year total returns, including any sales charge. A Fund is rated against all other funds in its category. 5 stars are assigned to the top 10%; 4 stars to the next 22.5%; 3 stars to the next 35%; 2 stars to the next 22.5%; and 1 star to the bottom 10%. Morningstar only rates funds with at least a 3-year history.

Mortgage-backed securityA security based on an underlying pool of mortgages.

Municipal bondA debt security issued by a state, municipality or county to finance its capital expenditure.

NAV $ ChangeThe difference between today's closing net asset value (NAV) and the previous day closing net asset value (NAV).

NAV % ChangeThe difference between today's closing net asset value (NAV) and the previous day closing net asset value (NAV).

NAV (Net Asset Value)The market value of one share of the Fund. This amount is derived by dividing the total value of all the securities in the fund’s portfolio, less any liabilities, by the number of fund shares outstanding.

Nasdaq-100 IndexThe US stock market index consisting of 101 equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock market

Nationally Determined ContributionsPart of the Paris Agreement. They set out each country’s commitments to reduce greenhouse-gas emissions and adapt to the impact of climate change. See “Nationally Determined Contributions (NDCs),” United Nations Framework Convention on Climate Change website. As of February

Negative DurationStrategy used by portfolio managers with a high conviction outlook that interest rates will rise. By adjusting the holdings in the portfolio, a manager can amend the average duration to make it negative. A portfolio with a ‘negative duration’ may increase in value when interest rates rise.

Net Debt FreeA scenario whereby a company’s cash position exceeds the amount of debt it has that requires cash interest payments, that company is said to be “net debt free.”

Non-investment grade bondAlso known as a junk bond or a high yield bond, this bond type has a credit rating below BBB/Baa and is judged less likely to pay interest or repay capital reliably. It usually pays a high interest rate to compensate and attract investors.

NotesA bond issued by the US Treasury with a life between one year and 10 years.

Notional amountThe nominal or face amount that is used to calculate payments made on swaps and other derivatives instruments. This amount generally does not change hands and is thus referred to as notional.

Number Of HoldingsThe composition of a fund’s portfolio at the specified period.

Operating LeverageThe fixed operating costs of a company divided by its total (fixed plus variable) operating costs. A company with strong operating leverage has fixed costs which do not increase as more business is done. This generally means that increases in revenue will increase net income.

Operational riskA risk of loss stemming from potential operational flaws (e.g. poor due diligence, system malfunctions) on the part of a counterparty in a derivatives contract.

Option-Adjusted Duration (Yrs)A measure of the sensitivity of a bond's price to interest-rate changes, assuming that the expected cash flows of the bond may change with interest rates.

Option-adjusted spread The spread of a fixed income security rate and the risk-free rate of return adjusted to account for an embedded option.

OptionsA privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

Over-the-counter (OTC) derivatives contractsA privately negotiated derivatives contract that isn't transacted in organized exchanges.

Par valueThe amount paid to the bond holder at maturity, based on the value of the bond at the issue date. Also known as face value.

Passive/indexingIndex or passive managers construct a portfolio so the returns and the stocks held mirror as closely as possible those of a chosen index, such as the FTSE 100 or MSCI World Index.

PopulismA political ideology in which there is a perceived belief in the control of the government by “the common man”.

Portfolio solutionsA professionally managed range of asset exposures designed to serve as either a total portfolio solution or a complement to existing exposures investors may own in their investment portfolios.

Potentially Disappeared FractionPotentially Disappeared Fraction (PDF) identifies the potential loss of species due to impact drivers such as land occupation, climate change or others.

Preferred StockA stock with properties of both and equity and debt instruments and with priority over common stock in the payment of dividends.

Price/Book P/B RatioThe current price divided by the book value per share, which is the value of the assets on the corporation’s balance sheet.

Price/earnings (P/E) ratioThe price of a stock dividend by its earnings per share. The price to earnings ratio, also know as the multiple, gives investors an idea of how much they are paying for a company’s earning power.

PrincipalThe amount of money invested in the bond. The principal does not equate to the face value of the bond as they are bought and sold on the secondary market at prevailing prices.

Probabilistic Graphical Models (PGM) Statistical models which use graph structures to determine statistical relationships. A PGM represents a statistical model where each node is considered a random variable, i.e., it does not have a fixed deterministic value, but rather follows a certain distribution function.

ProspectusThe traditional, long-form prospectus with which most mutual fund investors are familiar. The prospectus contains the important information included in the summary prospectus, and also includes more detailed information, including information relating to the fund’s investment adviser and portfolio managers and details on how to purchase and redeem shares.

Prospectus SupplementA supplementary document to the Prospectus, the purpose of which is to describe in more detail one or more Portfolio.

Purchasing Power ParityAn economic theory that adjusts the exchange rate between countries to make it equivalent to each currency’s purchasing power. This adjustment means that an identical good in two different countries will be given the same price when expressed in the same currency.

QualityGross profit divided by total assets, or return on equity for financial stocks or when gross profit is not available.

Quantitative Easing (QE)A scenario whereby central banks make large-scale asset purchases, usually of long-maturity government debt but also of private assets, such as corporate debt or asset-backed securities. Typically, QE occurs in unconventional circumstances, when short-term nominal interest rates are very low, zero or even negative.

Quantitative Tightening (QT)A scenario whereby a central bank makes large-scale asset sales, shrinking its balance sheet. The reverse of quantitative easing.

Quantitative equity strategyA strategy employing quantitative analysis, whereby models such as risk and asset allocation are used to select portfolio holdings. This strategy seeks to deemphasize (in varying degrees in some cases) human judgment in security selection.

Quarterly Dividend Per ShareAn amount paid quarterly by the Fund to its shareholders which encompasses net income or gains earned by the Fund during the period.

Quarterly Fact CardA fact sheet that provides quarterly updates on Fund performance.

Quasi-Sovereign DebtDebt issued or guaranteed by an entity that is 100% owned or controlled by a government. However, some investors also include debt that is substantially guaranteed debt.

R Squared - 3 YearA correlation measure of how much a manager’s return can be explained by the benchmark. More specifically, R-squared is a measure of how well the variance of the benchmark explains the variance of the manager. Also known as “correlation-squared”.

RatingAn independent assessment of an issuer’s credit worthiness and ability to meet required interest and principal repayments.

Real Estate Investment Trust (REIT)A company that owns, operates, or finances income producing properties.

Real Estate/InfrastructureInvestors can gain exposure to residential, commercial, and industrial properties and land through strategies investing in public traded securities such as Real Estate Investment Trusts (REITs) or privately issued securities. Similarly, investments in infrastructure-related strategies can provide access to the physical systems of a business or country, including transportation, electric, and telecommunication systems.

RecessionA significant decline in economic activity spread across the economy, lasting more than a few months.

Return on equity (ROE)A measure of how good a firm is at delivering profit and generating earnings growth. ROE is calculated by dividing the year’s fiscal net income by total marketing capitalisation and expressed as a percentage. A high ROE does not automatically equate to a good investment.

Risk assetsA risk asset is one with a degree of risk and volatility.

Russell 1000 IndexA market-cap weighted index that measures the performance of the 1,000 largest companies in the Russell 3000 Index.

Russell 2000 IndexThe smallest 2,000 stocks in the Russell 2000 Index, a small-cap U.S. stock market index.

S&P 500 IndexThe Standard & Poor’s 500 Composite Stock Prices Index of 500 stocks, an unmanaged index of common stock prices.

S&P Global Credit Ratingsare designed to provide relative ranking of creditworthiness, AAA being the highest score, followed by AA+ indicating low risk of default.

SAIA statement of additional information (SAI) is a supplementary document to a mutual fund’s prospectus that contains additional information about the fund, usually on its risks and operations. A mutual fund is required to provide a copy of its SAI (also known as “Part B” of its registration statement) free of charge upon request.

STOXX Europe 600 Index Derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index.

Semi Annual Financial StatementAn audited, SEC-required document that is sent to fund shareholders twice a year. It discloses the financial results for the previous half year and provides information about certain aspects of a fund’s operations.

Share ClassA designation applied to mutual fund units indicating the way that sales charges, or loads, are levied.

Sharpe RatioA measure of risk-adjusted return. A higher Sharpe ratio suggests an asset may have more attractive risk-adjusted returns.

Short SellingThe practice of selling a financial instrument that the seller borrows first (does not own), and then purchasing it later to “cover the short." Short-sellers attempt to profit from an expected decline in the price of a security, such as a stock or a bond, in contrast to the ordinary investment practice, where an investor “goes long” by purchasing a security in the hope the price will rise.

Short-termA period of up to three months.

Smart BetaAn investment strategy that blends traditional passive investing with active investing. It seeks to outperform conventional market-cap-weighted indices by using alternative weighting schemes based on factors such as volatility, momentum, quality, size, and value. The goal is to enhance returns, reduce risk, or achieve a combination of the two.

Sovereign DebtDebt issued or guaranteed by a government. In an emerging market, it is denominated in a major external currency, such as US dollars, or in local currency. The JP Morgan EMBI Global Diversified Index is the oldest of the emerging market debt benchmarks.

Spot ratesThe rates of currencies and others assets now.

SpreadThe difference between two prices or interest rates.

Spread Duration (Yrs)A measure of the sensitivity of a bond’s price to spread changes.

Standard DeviationA measure of the dispersion of a set of data from its mean.

Standard Deviation- 3 YearMeasures the historical total risk of a portfolio by assessing the probable range within which a portfolio’s return could deviate from its average return over a defined historical period of time.

Standardized 30-Day Subsidized and Unsubsidized Yield (POP)The calculation of the Standardized 30-Day Subsidized Yield is mandated by the SEC and is determined by dividing the net investment income per share earned during the period by the maximum public offering price of the Fund (“POP”) per share on the last day of the period. This number is then annualized. The Standardized 30-Day Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders. The Standardized 30-Day Unsubsidized Yield does not adjust for any fee waivers and/or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the Standardized 30-Day Subsidized Yield and Standardized 30-Day Unsubsidized Yield will be identical.

StocksAn equity investment, or ownership securities, that represent ownership in a corporation.

Strong MomentumStocks that have recently performed well and may exhibit some persistence in their outperformance. This allows you to participate in market trends.

Summary ProspectusA fund document that provides investors with a brief, plain English, summary of the key information that will allow investors to make informed investment decisions. The summary prospectus must contain the following items in standardized order and cannot include additional information, nor omit required information: (1) investment objective; (2) fee and expense table; (3) principal investment strategies, principal risks and performance table; (4) management information; (5) purchase and sale information; (6) tax information; and (7) financial intermediary compensation information.

Sustainable Development Goals A 15-year action plan, adopted by the United Nations in 2015, whose goals include protecting the environment, ending poverty and reducing inequality. See “The 17 Goals,” UN website. As of May 9, 2025. The SDGs have emerged as a common language for understanding how companies and portfolios are positioned for environmental and social impact.

SwapsAn agreement between two parties to exchange future cash flows according to a prearranged formula.

SymbolA "short-hand" abbreviation established for each fund that is used universally when referring to the fund. These symbols can be found in the prospectus.

sahm-ruleAs identified by Claudia Sahm, identifies signals related to the start of a recession when the three-month moving average of the national unemployment rate (U3) rises by 0.50 percentage points or more relative to its low during the previous 12 months.

The Next 11 (N-11)The N-11 refers to a group of next-generation emerging markets that have the potential to rival the G7, although further down the road than BRIC countries. These countries include Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey, and Vietnam.

ThresholdThe amount by which collateral calls are reduced; the amount of exposure parties are willing to accept.

Total Fund AssetsThe market value of securities in a mutual fund portfolio.

Total Return SwapAn agreement between two counterparties to exchange future cash flows for a set period of time. Typically, one counterparty agrees to pay the total rate of return of an index in exchange for receiving a floating interest rate plus a premium. The cash exchanged at each payment date is based on the notional amount agreed upon the beginning of the contract, the performance of the underlying benchmark and the floating rate.

Total Returns at NAVThe change in value of an investment on the purchase of shares of the Fund over a specific period. It is the rate that an investor would have earned or lost on an investment in a Fund (assuming reinvestment of all distributions).

Tracking errorThe standard deviation of excess returns from a benchmark, and is used as a measure of risk. A large tracking error implies that there are large swings in the excess return series of a manager from their benchmark.

TransparencyPortfolio holdings are disclosed on a daily basis.

TreasuriesA bond issued by the US government.

Treasury Inflation-Protected Securities (Tips)Treasury bonds whose value rises with inflation.

Turnover RatioThe market value of the lesser of purchases or sales divided by the average asset value of the account over a given time period.

US Agency Mortgage-Backed Securities (US Agencies)The purchase of mortgage-backed securities issued by US government-sponsored agencies.

US TreasuriesUS government bonds with a duration of less than one year.

Unconstrained investingAllowing a fund manager greater freedom to take positions and hold stocks.

Undertakings for Collective Investment in Transferable Securities (UCITS)Set of European Union Directives that aim to allow collective investment schemes to operate freely throughout the EU on the basis of a single authorization from one member state but also set a series of constraints in how they invest.

ValueA composite of three valuation measures: book value-to-price, sales-to price, and free cash flow-to-price. The earnings-to-price ratio is used instead of free cash flow-to-price for financial stocks.

Value at Risk (VaR)A measure of how the market value of a portfolio can potentially decrease over a certain period of time. The technique estimates the probability of losses based on statistical analysis of historical price trends and volatilities.

Variance swapA type of volatility swap that gives a payout that is linear to variance rather than volatility.

Variation marginA top up of the cash collateral requirement that may be required due to adverse movements in the value of the futures contract.

VolatilityThe manner in which the price of an investment moves up and down. If prices fluctuate dramatically over a short period of time, a market is said to be highly volatile.

Volatility swapA forward contract where the underlying is the volatility of a specified product. This allows investors to speculate on how volatile a stock will be.

Weighted Average Market CapA representation of the average value of the companies in the index or portfolio. The Weighted Median Market Cap provides the middle market capitalization level in the index or portfolio. Companies with a larger market capitalization have a greater impact on both calculations.

Weighted Average MaturityThe weighted-average time to the return of a dollar of principal. It is arrived at by multiplying each portion of principal received by the time at which it is received, and then summing and dividing by the total amount of principal. Thus, if a four-year bond with a face value of $100 and principal payments of $40 the first year, $30 the second year, $20 the third year, and $10 the fourth year, WAM = .4X1 yr + .3 X 2yr. +.2 X 3y r+.1 X 4yr. =2 yr.

Weighted Median Market CapThe midpoint of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio. Half the stocks in the portfolio will have higher market capitalizations, half will have lower.

YTDYear-to-Date

YieldYield refers to the earnings generated and realized on an investment over a particular period.

Yield CurveA line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth.

Yield curve riskRisk of loss stemming from shifts in movements in the yield curve.

Yield to maturity (YTM)The interest rate that makes the present value of a bond's cash flows equal to the bond's price or initial investment. The YTM on derivatives, Treasury futures, and interest rate swaps incorporate the impact of current funding rates (due to a change in data source, funding rates on Treasury futures were not incorporated on the YTM calculation from approximately early 2020 through 9-Nov-2022. Since November 9, 2022, funding rates on Treasury futures have been incorporated ). On a portfolio level, the YTM is a characteristic of the portfolio based on its holdings as of a particular date and is considered a long-term bond yield expressed as an annualized rate of return, assuming the portfolio holds the assets until maturity and interest rates remain constant. The YTM does not represent the performance yield for a portfolio and may increase or decrease depending on the present value of a bond’s market price as well as the number and size of payments remaining. As of April 14, 2023, the YTM has been capped at 15% in order to provide a more prudent and conservative representation.

Yield to worst (YTW)The interest rate that makes the present value of a bond's cash flows equal to the bond's price or initial investment, calculated by making worst-case scenario assumptions (excluding issuer default) on the bond by calculating the returns that would be received if provisions, including prepayment, call, put, and sinking fund, are used by the issuer. The YTW on derivatives, Treasury futures, and interest rate swaps incorporate the impact of current funding rates (due to a change in data source, funding rates on Treasury futures were not incorporated on the YTW calculation from approximately early 2020 through 9-Nov-2022. Since November 9, 2022, funding rates on Treasury futures have been incorporated). On a portfolio level, the YTW is a characteristic of the portfolio based on its holdings as of a particular date and is considered a long-term bond yield expressed as an annualized rate of return, assuming the portfolio securities are called with the lowest yield after running to each potential call date. The YTW does not represent the performance yield for a portfolio and may increase or decrease depending on the present value of a bond’s market price as well as the number and size of payments remaining. As of April 14, 2023, the YTW has been capped at 15% in order to provide a more prudent and conservative representation.

1985 Plaza AccordThe Plaza Accord was an agreement by five major economies: the United States, Japan, West Germany, France, and the United Kingdom. The primary goal was to depreciate the US dollar relative to the Japanese yen and the German Deutsche Mark by intervening in currency markets. This was done to address trade imbalances and the overvaluation of the US dollar, which was hurting American exports. The agreement led to a significant depreciation of the US dollar against the yen and Deutsche Mark. It helped improve the US trade balance by making American goods cheaper and more competitive abroad. The depreciation of the dollar contributed to economic adjustments in the participating countries, particularly Japan, which experienced a period of economic growth followed by asset bubbles

30-Day Distribution RateA calculation made by taking the annualized accrued net income (income less expenses, also known as the declared dividend) of the last 30 days, and dividing by the period end net asset value (NAV). The net income is annualized by taking the 30 days of declared dividends, dividing by 30, and multiplying by 365.

7-Day Current YieldThe average income return over the previous seven days. It's the Fund's total income net of expenses, divided by the total number of outstanding shares. The yield may differ slightly from the actual distribution rate of a given portfolio because of the exclusion of distributed capital gains or losses which are non-recurring. The SEC Yield is a required yield to quote to clients. This yield does not allow for the inclusion of capital gains or losses.

7-Day Effective YieldThe average income return over the previous seven days, assuming the rate stays the same for one year and that dividends are reinvested. It is the Fund's total income net of expenses, divided by the total number of outstanding shares. The yield may differ slightly from the actual distribution rate of a given portfolio because of the exclusion of distributed capital gains or losses which are non-recurring. This yield does not allow for the inclusion of capital gains or losses.