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 #

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A

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 judgment to identify companies that they believe will create long-term value.

ActiveBeta® U.S. Large Cap Equity Index The ActiveBeta® U.S. Large Cap Equity Index is an index derived from an equally weighted combination of volatility, quality, momentum, and value indexes.

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 a mutual fund’s historical return over a specified period. “With Load” indicates that the calculation includes sales charges or mutual fund fees associated with purchasing shares.

Average annual returns without loadA figure used to report a mutual fund’s historical return over a specified period. “Without Load” indicates that the calculation excludes sales charges or mutual fund fees associated with purchasing shares.

B

BPSOne basis point equals 0.01 percentage point.

BRICAn abbreviation 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 IndexesA benchmark index is often used to evaluate a fund’s performance; e.g., a UK gilt fund might be compared with 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)The Biodiversity Intactness Index (BII), developed by the Natural History Museum, measures how local terrestrial biodiversity responds to human pressures such as land-use change and intensification.

Bloomberg Commodity Index The Bloomberg Commodity Index offers liquid exposure to physical commodities via futures contracts and aims to produce an attractive risk-return profile over time while ensuring that no single commodity or sector dictates the investment.

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

Bloomberg Global High Yield IndexThe Bloomberg Global High Yield Index provides a broad-based measure of the global high-yield fixed income market.

Bloomberg Municipal 1-10 Yr Blend Index The Bloomberg Municipal 1-10 Yr Blend Index is a market value-weighted index covering short- and intermediate-term US investment-grade, tax-exempt municipal bonds. Eligible securities include general obligation, revenue, insured, and prerefunded bonds with remaining maturities of at least one year and less than 12 years.

Bloomberg Municipal Bond IndexThe Bloomberg Municipal Bond Index covers the US dollar-denominated, long-term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds.

Bloomberg US Aggregate Bond IndexThe Bloomberg US Aggregate Bond Index is a 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 The 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 The 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.

Bloomberg US Corporate 10+ Year Investment Grade Index The Bloomberg US Corporate 10+ Year Investment Grade Index includes publicly issued US corporate and specified foreign debentures and secured notes.

Bloomberg US Corporate High Yield Bond Index The Bloomberg US Corporate High Yield Bond Index seeks to track US dollar-denominated, high-yield, fixed-rate corporate bonds.

Bloomberg US Corporate Investment Grade Index The Bloomberg US Corporate Investment Grade Index represents an unmanaged diversified portfolio of fixed income securities, including US Treasuries, investment grade corporate bonds, and mortgage backed and asset-backed securities.

Bloomberg US Treasury 20+ Year The Bloomberg US Treasury 20+ Year seeks to track the investment results of an index composed of US Treasury bonds with remaining maturities greater than twenty years.

BondsA debt investment through which investors lend money to entities, such as corporations or governments, to finance projects and activities. The borrower receives funds for a defined period at a specified interest rate. Bonds include corporate and municipal bonds, as well as US Treasury bills, notes, and bonds.

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 closed-end investment company that invests in the equity or debt of eligible companies and must generally invest at least 70% of its assets in qualifying assets. BDCs may be publicly traded, private, or non-traded.

BuyoutsAn investment which typically involves taking co- or majority control of a mature company (either listed or non-listed), with a proven, often profitable business model. Typically, the transactions are financed with a combination of debt and equity financing. Typical targets have predictable cash flows to repay debt used in acquisition, and the private equity manager will seek strategy and operation improvements to boost growth and profits. These investments can be across broad categories and historically have spanned all industries and most geographies.

C

CDU/CSU CDU/CSU refers to Christian Democratic Union/Christian Social Union.

CEECEE refers to Central and Eastern Europe.

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.

CapexCapital expenditures used to acquire, maintain, or improve long-term assets such as property, equipment, or technology.

Capital CallThe act of requesting the investor to transfer a portion of their capital commitment to the General Partner.

Capital CommitmentThe amount of money the investor seeks to invest in the fund, and the amount they should expect to transfer to the General Partner during the fund’s investment period.

Capital recyclingAn investment strategy focused on using capital more efficiently by reallocating it from lower value uses to higher value opportunities. It typically involves selling mature, non-core, or lower yielding assets and reinvesting the proceeds into higher returning investments or new areas of growth, helping to expand investment capacity without relying on additional debt or external equity.

Capitalization RateA calculation used to measure the potential performance on a real estate investment. The equation is net operating income over the current market value or price of a real estate asset.

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.

Carried Interest (Carry)Performance fees, paid on the realized (distributed) value appreciation of assets in the fund. Typically, these are charged only after a preferred return threshold has been met. Carry may be charged either on a deal-by-deal basis or for the overall fund’s performance.

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 EnergyProduced 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 be less correlated to the returns of traditional stocks and bonds.

Conditional Value at RiskA risk measure, also known as expected shortfall, that estimates the average loss in the tail of a return distribution beyond a specified threshold.

Constant Maturity US Treasury IndexThe Constant Maturity US Treasury Index is an index published by the Federal Reserve Board that represents the average yield of a range of Treasury securities, adjusted to the equivalent maturity Treasury.

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

Convex Payouts Investment strategies or securities with nonlinear, asymmetric payoff profiles that generally offer greater upside potential relative to downside risk.

Core CPI Core CPI refers to Core Consumer Price Index.

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 implemented through passive, structured, or actively managed strategies. They then pursue alpha opportunities through less-correlated satellite strategies such as emerging markets, high-yield bonds, or private equity investments.

Corporate Credit BondsDebt securities issued by a company to raise capital.

CorrelationA 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.

CouponA regular payment, usually made every six months, paid throughout a bond’s life; e.g., a £1,000 bond with a 5% coupon 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 EventA negative change in a borrower’s ability to repay debt, such as restructuring, insolvency, or default in the context of a credit default swap.

Credit RatingAn assessment of a debt issuer’s ability to make timely payments of principal and interest. Ratings of AAA, AA, A, and BBB are generally considered investment grade.

Credit RiskThe risk that a borrower or issuer will fail to make required principal or interest payments.

Credit Suisse Leveraged Loan IndexThe Credit Suisse Leveraged Loan Index tracks the investable leveraged loan market by representing tradable, senior-secured, US-dollar denominated, non-investment grade loans.

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, calculated by dividing the bond’s annual interest payment by its purchase price.

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

D

DAX Total Return Daily Hedged USD The DAX Total Return Daily Hedged USD Index tracks the performance of the 40 largest companies listed on the Regulated Market of the Frankfurt Stock Exchange while hedging currency exposure to the US dollar daily.

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.

Defined Benefit (DB)An employer-sponsored retirement plan—commonly known as a pension—that guarantees a specific, predetermined monthly income for life upon retirement. The payout is calculated using a formula based on salary history, years of service, and age, rather than investment performance.

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.

Direct AlphaA metric used to compare the performance of a private investment to a public benchmark, taking into account the private fund’s cash flows. A positive direct alpha figure means the private investment outperformed the public benchmark; a negative figure means the private investment underperformed.

Direct LendingThe practice of non-bank lenders extending loans to businesses in privately negotiated transactions.

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

DistressedInvestments in firms or assets needing drastic change and often guidance through a restructuring process. Equity is often established via debt conversion. Distressed private equity has countercyclical performance features.

DistributionThe act of returning capital from the fund back to investors. Distributions often occur in conjunction with a realization (e.g., sale) of an investment in the fund. Strategies with a yield component feature yield distributions in addition to realizations-related distributions.

Distributions to Paid-In Capital (DPI)A fund performance metric expressed as the ratio of distributions since fund inception to the overall capital called since inception.

Diverse-Owned Broker DealerDiverse-Owned Broker Dealer: Minority, Women and/or Veteran owned broker

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.

DovishRefers to more accommodative monetary policy, the opposite of Hawkish.

Dow Jones Global Select Real Estate Securities Index (RESI) The Dow Jones Global Select Real Estate Securities Index (RESI) tracks the performance of equity real estate investment trusts (REITs) and real estate operating companies (REOCs) traded globally. The index is designed to serve as a proxy for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate.

Dry PowderThe amount of capital a fund has left to deploy, equal to the total amount raised by the fund less capital already deployed into investments.

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 price. 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.

E

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.

ENCOREA framework that 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).

Event DrivenA hedge fund investment strategy that seeks profit from company events, such as mergers or bankruptcies.

Exchange FundsPrivate vehicles which enable holders of concentrated stock positions to exchange those stocks for a diversified portfolio.

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.

Expected Return on Asset (EROA) AssumptionsAn actuary-selected, long-term estimate of the annual percentage gain on pension plan investments. This rate is used to calculate the projected income (I) from assets, which reduces the employer's immediate contribution required to meet future benefit obligations.

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.

F

FTSE 100 IndexThe FTSE 100 Index is the 100 most highly capitalized blue chips listed on the London Stock Exchange.

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.

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.

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.

Fortress Balance Sheet Characteristics of a company’s financial strength, including lower leverage and an ability to invest countercyclically.

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.

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.

G

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.

GPR 250 REIT IndexThe GPR 250 REIT Index is a subset of the GPR 250 Index and covers all companies having a REIT-like structure. This in combination with the consistently applied rules for company inclusions results in the GPR 250 REIT Index being a sustainable representation of the global Real Estate Investment Trust market.

General Partner (GP)The fund manager. The GP identifies, evaluates, acquires, and manages investments on behalf of the fund’s investors.

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.

Global MacroA hedge fund strategy that focuses its holdings on macro-economic or political views leveraging a range of positions such as long and short investments across fixed income, equity and commodity markets.

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 ExpenditureExpenditures 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 EquityAn investment in maturing, rapidly growing companies at an inflection point. They may be profitable, or have a clear path to profitability, with solid unit economics and a large addressable market. They need strategic capital to accelerate their trajectories, but may not yet be ready for, or interested in, becoming public. These investments help facilitate growth and the expansion of operations, can assist teams in transition, or finance a transforming event. There is typically no change in control of the business.

Growth MarketsThe economies that represent at least 1% of global GDP are named by Goldman Sachs Asset Management “Growth Markets.” Eight countries 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 favorable 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.

H

HFRI Fund of Funds Composite Index The HFRI Fund of Funds Composite Index is an equal weighted, net of fee, index composed of approximately 800 fund-of-funds which report to HFR.

HFRX Macro CTA Index The HFRX Macro CTA Index measures the performance of the hedge fund market where macro strategy managers trade a broad range of strategies. In these strategies, the investment process is predicated on movements in underlying economic variables and the impact these have on equity, fixed income, hard currency, and commodity markets.

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

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

Harvest PeriodThe period during which the fund manager realizes its investments and distributes proceeds to investors. Harvesting usually begins 4-6 years into the fund’s life (although timing will vary by strategy and by fund). Most capital is returned within the first 8-12 years; subsequent distributions are typically smaller.

HawkishA more aggressive monetary policy, the opposite of Dovish

Hedge FundPrivate, pooled investment vehicle offered via private placement to qualified investors, including certain high net worth individuals and institutional investors.

Hedge Fund ReplicationA quantitative strategy that seeks to mimic the returns of a hedge fund index.

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.

I

ICE BofA 1-3 Month US Treasury Bill IndexThe ICE BofA 1-3 Month US Treasury Bill Index measures the performance of a single issue of outstanding treasury bill which matures closest to, but not beyond, three months from the rebalancing date.

ICE BofAML US Corporate IndexThe ICE BofAML US Corporate Index tracks the performance of US dollar-denominated, investment-grade rated corporate debt that is publicly issued in the US domestic market.

ICE BofAML US High Yield The ICE BofAML US High Yield Index tracks the performance of US dollar-denominated, below investment-grade corporate debt that is publicly issued in the US domestic market.

ICE BofAML US Treasury IndexThe ICE BofAML US Treasury Index generally refers to a family of indices that track the performance of US dollar-denominated US Treasury securities, which are publicly issued in the US domestic market, often segmented by maturity.

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.

InfrastructureAssets and operations involved in the production of critical resources or transportation of goods, services, and people, typically with the following characteristics: defensive, contractual cash flows; limited competition; inelastic demand to economic cycles; and providing critical functions and services.

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.

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.

Internal Rate of Return (IRR)A performance metric that represents the annualized return generated over the life of an investment while capital is invested, accounting for contributions and distributions over time. It describes both how quickly the investor receives cash back from the fund and how much a fund manager has increased the portfolio’s value. If two funds have the same multiple on invested capital (MOIC), the fund with the higher IRR returned the cash to investors faster.

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

Investment PeriodThe contractual period during which the fund manager makes new investments and LPs contribute the capital they committed to the fund. The investment period typically lasts for 3-5 years, and each year may feature one or several capital calls. Capital may be reserved for follow-on contributions to existing investments after the end of the investment period.

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.

J

J-CurveA term that derives from the graphical pattern of cash flows of private market funds, wherein the initial years of a private markets investment feature net cash outflows from the investor, followed by inflows in subsequent years. J -curve can also refer to the pattern of returns exhibited by private market investments. A fund’s return may be low or negative during the early portion of its lifecycle, as investment-related fees and expenses accrue prior to the realization of investment gains. As the fund matures and as portfolio assets are sold, the return typically increases and approaches its final value. There can be no assurance, however, that private equity funds will exhibit this pattern of investment returns.

J.P. Morgan CEMBI Broad Diversified Index The J.P. Morgan CEMBI Broad Diversified Index tracks the performance of US dollar-denominated bonds issued by emerging market corporate entities.

J.P. Morgan Emerging Markets Bond Index Global CoreThe J.P. Morgan Emerging Markets Bond Index Global Core (EMBIG CORE) tracks liquid, US Dollar denominated emerging market fixed and floating rate debt instruments issued by sovereign and quasi-sovereign entities.

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.

K

K-1A tax form for limited partnerships that reports profits and losses.

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

k-shapedA term describing a divergent economic or earnings environment in which some sectors or groups improve while others weaken.

L

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.

Limited Partner (LP)Investor in the fund. LPs contribute capital but do not take an active approach to the selection of portfolio assets nor participate in the day-to-day management of the fund.

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.

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

Lower CostReduced fund expenses keep investor fees down.

M

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 All Country World Index (ACWI) ex US Index The MSCI All Country World Index (ACWI) ex US Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 24 Emerging Markets (EM) countries.

MSCI EAFE IndexMSCI EAFE Index is a 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 IndexMSCI Europe Index captures large and mid-cap representation across 15 Developed Markets (DM) countries in Europe.

MSCI India IndexMSCI India Index is designed 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 Japan Index

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.

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).

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 composed of companies with strong sustainability profiles while avoiding companies incompatible with values screens.

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 and 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.

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.

MSCI World Small Cap IndexThe MSCI World Small Cap Index captures small-cap representation across 23 Developed Markets (DM) countries. With 4,116 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country.

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

Management FeeFees charged on the assets managed. A common fee structure is to charge fees on the committed amount during the course of the investment period, then switch to fees on the amount invested (cost basis of assets remaining in the portfolio). Some strategies charge on the amount invested from the outset. Funds may also decrease the fee rate (step-down) after the investment period.

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.

Medium termA view over the next three to 18 months.

Mega Cap A designation for the largest companies in the investment universe as measured by market capitalization.

MezzanineInvestments in debt subordinate to the primary debt issuance and senior to equity positions. This means that in the event of default or bankruptcy, these creditors are in line behind senior debt but ahead of equity holders.

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.

Multiple on Invested Capital (MOIC)A fund performance metric expressed as the ratio of the current value of the fund’s investments plus distributions since inception to the overall capital called since inception. Another term for TVPI.

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

Municipal/Treasury ratioMunicipal/Treasury ratio is a comparison of the current yield of Municipal bond to US Treasuries. It aims to measure whether or not Municipal bonds are an attractive investment in comparison.

N

NATONATO refers to North Atlantic Treaty Organization.

NAV $ ChangeThe dollar change between a fund’s current closing net asset value (NAV) and its previous closing NAV.

NAV % ChangeThe percentage change between a fund’s current closing net asset value (NAV) and its previous closing NAV.

Nasdaq-100 IndexNasdaq-100 Index is a US stock market index consisting of 101 equity securities issued by 100 of the largest nonfinancial 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.

NearshoringThe practice of transferring a business operation to a nearby country, especially in preference to a more distant one.

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 Asset Value (NAV) The value of the fund at any particular time. Includes current investments, excludes sold assets already distributed, and excludes uncalled capital.

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.”

Neutralization TechniqueNeutralizes industry group exposures by adjusting all securities within an industry group equally to closely match the benchmark weight of the industry.

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 derivative 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.

O

OnshoringThe strategic process of conducting business operations, manufacturing, or services within a company's home country rather than in a foreign country.

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 is not transacted in organized exchanges.

P

PBOCPBOC refers to People's Bank of China.

PCEPCE refers to Personal Consumption Expenditures.

Paid-in CapitalThe amount of committed capital that has been called (transferred to the GP by the investor) to date.

Par ValueThe amount paid to the bondholder 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.

Pension Risk Transfer (PRT)A strategic transaction where a company shifts the financial risks of its Defined Benefit (DB) pension plan (such as investment volatility and longevity risk) to an insurance company or directly to plan participants. The goal is to remove pension liabilities from the company's balance sheet, reducing volatility and lowering administrative costs.

Percentage points (pp) Percentage points (pp) refers to the unit for the arithmetic difference of two percentages.

Picks-and-ShovelsRefers to investing in companies that provide the essential tools, infrastructure, or services needed to support a major growth trend, rather than investing directly in the end product or most visible winners of that trend.

PopulismA political ideology based on the belief that ordinary people should control the government.

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 Return (Hurdle Rate)The minimum return that the fund must achieve for investors before it can start collecting carry. Many fee structures include a General Partner’s (GP) catch-up provision, wherein once the preferred return is reached, distributions are allocated to the GP until they equal the carry rate on all distributions to-date. Thereafter, distributions are allocated to GPs and limited partners (LPs) proportionately, based on carry levels (e.g., 20% to the GP and 80% to the LP in case of 20% carry).

Preferred StockA stock with properties of both 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 divided by its earnings per share. The price to earnings ratio, also known 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.

Private AssetsInvestments not traded on public stock exchanges, including private equity, credit, real estate and infrastructure.

Private CreditProvides debt financing to a variety of borrowers – companies; real estate and infrastructure owners, developers and operators; consumers; intellectual property creators and owners; and others. Private credit strategies span the capital spectrum, from senior credit to hybrid equity/credit solutions.

Private EquityMakes investments in the equity of companies not listed on a public stock exchange. These investments can take either full or minority ownership of the underlying companies. Private equity strategies span the company lifecycle, from startups with innovative ideas to mature businesses. Private equity portfolio managers can leverage different tools to drive value, depending on a company’s stage or the fund’s investment mandate.

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 portfolios.

Public Market Equivalent (PME)A metric used to compare the performance of a private investment with a public benchmark. Calculated by hypothetically investing the cash flows of the private investment in the benchmark, then calculating a return using the cash flows of the private investment and the remaining value of this hypothetical investment.

Public REITA Real Estate Investment Trust that files with the Securities and Exchange Commission (SEC) and whose shares trade on national stock exchanges.

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.

Q

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 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.

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

Quarterly Dividend per ShareAn amount paid quarterly by the fund to its shareholders that 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

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.”

RRRRRR refers to Reserve Requirement Ratio.

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

Real Estate CoreInvestments in lower risk real estate that provides the majority of returns through income. Properties are typically stable, with little improvement required, and offer a consistent yield with low leverage.

Real Estate Core PlusInvestments in moderate-risk real estate that provides income with the potential for appreciation. Investments are predominantly core but with an emphasis on growth and with moderate leverage.

Real Estate InvestingDirectly financing, developing, and operating properties or lending debt to finance real estate projects and development. These investments can be potentially income and capital appreciation-oriented, have inflation hedging features and potentially serve as a portfolio diversifier.

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

Real Estate Value-Add/OpportunisticInvestments in higher-risk real estate that provides and the majority of return through appreciation. Investments are typically on assets in transition and more speculative in nature with higher leverage.

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.

Relative Value Hedge Fund StrategyAn investment strategy that seeks to profit from temporary price discrepancies between related financial instruments (e.g., stocks, bonds, derivatives) rather than predicting market direction. These funds use leverage and long/short positions to capitalize on the expected convergence of prices to their historical or theoretical average.

Remaining Value to Paid-in Capital (RVPI)The ratio of current fund NAV to the overall capital called since inception.

ReshoringThe practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.

Residual ReturnThe portion of a portfolio's or security's total return that cannot be explained by systematic risk factors or the established benchmark.

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 capitalization 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.

RoWRoW refers to rest of the world.

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

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

Russell 3000 IndexRussell 3000 Index represents the largest 3,000 US companies by market capitalization, representing approximately 98% of the investable US equity market and a barometer of the broad US equity market.

S

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

S&P Developed ex-US Property IndexThe S&P Developed ex-US Property Index measures the performance of real estate companies domiciled in countries outside the United States.

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.

S&P SmallCap 600®Seeks to measure the small-cap segment of the U.S. equity market. The index is designed to track companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.

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.

SPDSPD refers to Social Democratic Party of Germany.

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

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.

SecondariesExposure to partially or fully funded portfolios of private companies, acquired from primary investors or General Partners seeking liquidity solutions.

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.

Senior DebtLoans that are typically first-lien and highest in the capital structure – first in line to get repaid if a borrower is unable to meet all its debt obligations. These loans are therefore the most likely to recover debt owed.

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 indexes 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.

Standing Repo Program (SRP)A monetary policy tool the Fed offers as a backstop for eligible financial institutions to receive cash in exchange for parking U.S. Treasury securities at the Fed overnight. This helps to maintain orderly funding markets and control over the federal funds rate.

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.

Structured SolutionsBespokesolutions involving both debt and equity investments in firms needing meaningful change. These investments can include all-weather hybrid equity/credit capital solutions and distressed/special situation investments. These are generally control investments to help guide firm firms through the change/restructure. Also called hybrid capital.

Subscription PeriodThe period during which LPs subscribe to the fund. Subscriptions entail investors signing a Limited Partnership agreement and legally committing to the fund. The process of bringing investors into a fund is called a “fund close.” A fund may have one or several closes in the subscription period. Capital may not be immediately drawn from the LPs upon subscription (sometimes called a “dry close”).

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. 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.

T

Taxable equivalent yield Taxable equivalent yield is the return that is required on a taxable investment to make it equal to the return on a tax-exempt investment.

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).

Total Value to Paid-in Capital (TVPI)A fund performance metric expressed as the ratio of the current value of the fund’s investments plus distributions since inception to the overall capital called since inception.

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.

Traditional ETFsMarket-cap weighted strategies designed to track a given market or index.

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.

U

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.

US Treasury Bond A debt obligation backed by the United States government and its interest payments are exempt from state and local taxes. However, interest payments are not exempt from federal taxes.

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.

V

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.

Venture CapitalNon-control investments in early-stage companies. These companies are typically young, with limited financial history, unproven products or concepts that have the potential to be transformative. Investor capital is used for research and development, product and business plan development, and expansion of operations. In many cases, entrepreneurs value their investors’ knowledge, operating expertise, and networks as much as, or more than, their financial capital.

Vintage YearThe year in which the fund was formed or started calling capital. Vintage year diversification is a proxy for diversification of investments across the economic cycle. Because the since-inception return evolves as the fund matures, evaluating a fund’s performance is most indicative by comparing its performance to those of similar funds from the same vintage year.

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.

W

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.

Y

YTDYear-to-Date.

YieldThe 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 incorporates the impact of current funding rates. 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. The YTM is 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 incorporates the impact of current funding rates. 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. The YTW is capped at 15% in order to provide a more prudent and conservative representation.

YoYYoY refers to Year-over-Year.

S&P Developed ex-US Small Cap IndexThe S&P Developed ex-US Small Cap Index covers the smallest 15% of companies from developed countries (excluding the US) ranked by total market capitalization.

1

10-KA comprehensive, mandatory annual report filed with the SEC by U.S. public companies, detailing their financial performance, operational results, and risk factors. It provides audited financial statements, including balance sheets and income statements, offering a deeper, more detailed analysis than the annual report to shareholders.

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.

3

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

7-Day Current YieldThe average income return over the previous seven days, calculated as a fund’s total income net of expenses divided by its outstanding shares. The yield excludes nonrecurring distributed capital gains and losses and may therefore differ from the fund’s actual distribution rate.

7-Day Effective YieldThe average income return over the previous seven days, annualized on the assumption that the rate remains constant for one year and dividends are reinvested. It is calculated using a fund’s total income net of expenses divided by its outstanding shares and excludes nonrecurring distributed capital gains and losses.