A-shares are shares in mainland China-based companies that trade on Chinese stock exchanges
Investment strategy that seeks to achieve portfolio returns more than commensurate with risk, either by forecasting broad market trends or by identifying particularly mispriced sectors of a market or securities in a market.
ADTV (Average Daily Traded Value)
ADTV (Average Daily Traded Value) measures the average amount of individual securities traded per day.
A statistic measuring that portion of a stock or fund's total return attributable to non-market (unsystematic) risk. Alpha measures non-market return and indicates how much value has been added or lost. A positive alpha indicates whether the stock or fund has performed better than its beta predicted (i.e., the manager has added value above the benchmark). A negative alpha indicates an underperformance given its beta.
ADR (American Depositary Receipt)
Shares of foreign companies traded in U.S. dollars on U.S. exchanges.
Apportioning of investment funds among asset classes, such as cash, equities, and fixed income.
Basis Point (b.p.) is a unit that is equal to 1/100th of 1% or 0.01%.
A prolonged period of falling security prices.
A comparison portfolio; a point of reference or comparison.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1.0 indicates that the security's price will be as volatile as the market. A beta of less than 1.0 means that the security will be less volatile than the market. A beta of greater than 1.0 indicates that the security's price will be more volatile than the market.
Smaller, less mature emerging and frontier market countries.
Bloomberg Commodity Index
An index of 22 exchange-traded futures on 20 physical commodities.
BRIC is an acronym used to represent the nations of Brazil, Russia, India and China.
A prolonged period of rising security prices.
Capital Expenditure (Capex)
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.
A security that represents ownership in a public corporation.
Compound Annual Growth Rate (CAGR)
Compound Annual Growth Rate (CAGR) is a metric that smoothes annual gains in revenue, returns, etc., over a specific period of years as if the growth had happened steadily over that time period.
Correlation indicates the strength and direction of a linear relationship between two random variables. The value will range between -1 and 1. A value of 1 indicates a perfect positive dependency, while -1 indicates a perfect negative dependency between the two investments.
The bank or trust company that holds a fund's assets (stocks, bonds, cash, and other securities) and handles payments and receipts for the fund's securities transactions.
Debt to Equity Ratio
A solvency ratio calculated by dividing total debt by total shareholder's equity.
A security, such as an option or a futures contract, whose value is derived from the value of the underlying asset.
Developed Asia Pacific and Australia (APAC)
Developed Asia Pacific and Australia (APAC) is a regional classification that includes the developed markets of Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea and Taiwan.
Developed Markets (DM)
Countries that are most developed in terms of economy and capital markets. They generally have high per capita income or GDP, as well as openness to foreign ownership, ease of capital movement and efficiency of market institutions.
Payment of a dividend or capital gain.
A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.
Dividend Payout Ratio
The ratio of cash dividends paid to earnings for a period.
Dividend Per Share (DPS)
The dollar amount of cash dividends paid during a period per share of common stock.
A ratio that shows how much a company pays out in dividends each year relative to its share price.
A term used to represent what we believe are the five sectors that are most influenced by local growth: consumer staples, consumer discretionary, telecom, utilities and health care based on GICS methodology.
Dow Jones Emerging Markets Consumer Titans 30 IndexTM
A free-float market capitalization-weighted index that measures the performance of 30 leading emerging market companies in the Consumer Goods and Consumer Services Industries as defined by S&P Dow Jones Indexes.
A measure of an option-free bond's average maturity. Specifically, the weighted average maturity of all future cash flows paid by a security in which the weights are the present value of these cash flows as a fraction of the bond's price. A measure of a bond's price sensitivity to interest rate movements.
The rate at which a company has grown its profitability per unit of equity over a given time period.
Earnings Per Share (EPS)
The amount of income earned during a period per share of common stock.
EGAI Emerging Markets Quality Dividend Index
An equal-weighted index designed to represent a portfolio of approximately 50 companies in developing markets, each of which has a higher dividend yield than the average dividend yield in the EGAI Developing Markets Universe.
EGAI Emerging Markets ex-China Index
A market capitalization-weighted index designed to provide broad, core emerging markets equity exposure by measuring the stock performance of up to 700 companies across the EGAI Emerging Markets Universe, excluding those listed or domiciled in China and Hong Kong.
Emerging Markets (EM)
Countries with less advanced capital markets and less established stock markets than those in developed markets; these countries have embarked on economic development and reform programs as well as begun to open up their markets and emerge.
A type of security representing ownership in a corporation. Common stock, preferred stock, and convertible securities are all equity securities. Equity securities are distinguished from debt securities, which do not represent ownership in the issuer.
Acronym for the Employee Retirement Income Security Act of 1974. ERISA governs qualified retirement savings plans.
Exchange-Traded Fund (ETF)
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.
The first date that a share trades without (i.e., "ex") the dividend. If an investor purchases a share that is quoted "ex dividend," they are not entitled to an upcoming, declared dividend. The investor selling the share receives this dividend.
Float-Adjusted Market Capitalization
Market Capitalization that reflects only those shares available to investors rather than all of a company's outstanding shares. Float adjustment excludes shares that are closely held by control groups, other publicly traded companies or government agencies.
Free-Float Market Capitalization
Market Capitalization that only reflects the total shares available in the market, excluding locked-in shares such as those held by governments, corporations, controlling shareholders, and management, and shares subject to foreign ownership restrictions.
Countries with less advanced capital markets and less established stock markets than those in the emerging markets.
FTSE Beyond BRICs Index
A market capitalization-weighted index designed to represent the performance of a diversified basket of 90 liquid companies in emerging and frontier markets excluding Brazil, Russia, India, China (BRIC), Taiwan and Argentina as defined by FTSE's Country Classification System. The index has 75% exposure to emerging markets and 25% to frontier markets at rebalance.
FTSE Emerging Index
A market capitalization-weighted index representing the performance companies in 22 emerging markets.
A long-term contract on an underlying commodity. Futures commodities usually entail grains, precious metals such as gold, or interest-rate instruments such as bonds.
GDR (Global Depositary Receipt)
Shares of foreign companies held by a foreign branch of an international bank. They are the global equivalent of the ADRs.
Global Industry Classification Standard (GICS®)
An industry classification taxonomy categorizing companies and securities, developed by MSCI and S&P.
Gordon Growth Model
Gordon Growth Model is a model for determining the intrinsic value of the stock.
Gross Domestic Product (GDP)
A money measure of the goods and services produced within a country's borders over a stated time period.
Gulf Cooperation Council
Gulf Cooperation Council (GCC) includes the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia & United Arab Emirates.
In financial markets, a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. One cannot invest directly in an index.
An investment strategy in which an investor constructs a portfolio to mirror the performance of a specified index.
Industry Classification Benchmark (ICB)
An industry classification taxonomy categorizing companies and securities, supported by ICB Database which is maintained by the FTSE Group.
Indxx India Consumer Index
A maximum 30-stock free-float adjusted market capitalization-weighted index designed to measure the market performance of companies in the consumer industry in India. The index consists of common stocks listed on the primary exchange of India.
Indxx India Infrastructure Index
A maximum 30-stock free-float adjusted market capitalization-weighted index designed to measure the market performance of companies in the infrastructure industry in India. The index consists of common stocks listed on the primary exchange of India and ADRs & GDRs.
Indxx India Small Cap Index
A maximum 75-stock free-float adjusted market capitalization-weighted index designed to measure the market performance of companies in the small cap segment in India. The index consists of securities listed on the primary stock exchange of India.
The mean active return divided by active risk; or alpha divided by the standard deviation of diversifiable risk.
A weighting methodology for a portfolio that gives the largest weighting to those companies that have the largest average daily traded value.
Fee paid to the fund manager for providing investment management.
Market Capitalization (Market Cap)
The total dollar value of all outstanding shares. It is calculated by multiplying the number of shares outstanding by the current market price.
The peak-to-trough decline during a specific record period.
A theory suggesting that prices and returns eventually move back towards the mean or average, falling when its level is above its mean and rising when its level is below its mean; a mean-reverting time series tends to return to its long-term mean.
MSCI All Country World Index (ACWI)
An index that captures large and mid-cap representation across developed markets and emerging markets countries.
MSCI All Country World Index (ACWI) ex-U.S.
An index that captures large and mid-cap representation across developed markets (excluding the United States) and emerging markets countries.
MSCI Emerging Markets Index
An index that is designed to measure equity market performance in global emerging markets.
MSCI Emerging Markets Price IndexAn index that represents the price return of the MSCI EM Index.
MSCI Emerging Markets Total Return Index
An index that represents the total return of the MSCI EM Index, including reinvestment of dividends.
MSCI Europe, Australasia, Far East (EAFE) Index
An index covering developed market countries in Europe, Australasia, Israel and the Far East.
MSCI Frontier Markets 100 Index
A tradable proxy for the broader MSCI Frontier Markets Index.
MSCI Frontier Markets Index
An index that captures large and mid cap representation across Frontier Markets countries.
MSCI World Index
An index that captures large and mid cap representation across Developed Markets countries.
A mutual fund is a type of investment company that pools money from many investors and invests the money in stocks, bonds, money-market instruments, other securities, or even cash.
Net Asset Value (NAV)
A fund's net asset value (NAV) represents its per-share price. NAV is calculated by dividing a fund's total net assets by its number of shares outstanding. Shares in regular open-end mutual funds are bought and sold at NAV, but shares in ETFs (with the exception of creation units) are bought and sold at the market price, which can differ from NAV.
Net Margin or Profit Margin
An indicator of profitability, calculated as net income divided by trailing 12 month revenue.
An option is the right, but not the obligation, to buy or sell a specified amount of security, at a specified price within a specified time frame. An option represents a right acquired by the purchaser. A put option gives the holder the right to sell the security. A call option gives the right to buy the security.
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
Price to Book Ratio (P/B Ratio)
The total market value of a company divided by the sum of its book value.
Price to Earnings Ratio (P/E Ratio) (Trailing)
The total market value of a company divided by the sum of its reported earnings over the last twelve months.
Price to Earnings Ratio (P/E Ratio) (Forward)
The total market value of a company divided by the sum of its Bloomberg consensus estimates for the future 12-month earnings.
Price to Sales Ratio (P/S Ratio)
A stock's current price divided by the company's trailing 12-month sales per share.
A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public, including important information about its fees and expenses, investment objectives, investment strategies, risks, performance, pricing, and more.
Purchasing Power Parity (PPP)
An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.
The process of converting a shareholder's shares into cash. A registered open-end mutual fund must redeem shares at the price next determined after receipt of the shareholder's request.
An amount charged when money is withdrawn from a fund; the fee is paid to and retained by the fund.
Return of Capital
A fund distribution that exceeds earned income; a distribution that includes a portion of the investor's original principal.
Return on Equity (ROE)
The amount of net income earned as a percentage of shareholders equity.
Rolling 36-Month Return
The moving average of the period returns for the last 36 months, displaying returns in overlapping cycles until earliest available data.
S&P 500 Index
An index that is a broad-based measure of U.S. stock market performance.
S&P Emerging Markets Core Index
An equal-weighted index designed to measure the market performance of up to 116 companies that S&P Dow Jones Indices determines to be representative of all industries domiciled in emerging market countries, subject to a 15% country cap.
S&P Emerging Markets Domestic Demand Index
A 50-stock free-float market capitalization-weighted index designed to measure the performance of companies in emerging markets that are tied to domestic demand, specifically those in consumer staples, consumer discretionary, telecommunications services, health care and the utilities sectors.
A unit of ownership in an equity security, such as a mutual fund or common stock.
Any person, company or other institution that owns at least one share in a company.
The average return in excess of the risk-free rate divided by the standard deviation of return; a measure of the average excess return earned per unit of standard deviation of return.
Shiller P/E Ratio
A measure of P/E that takes the current stock price and dividing it by the average annual earnings over the last ten years, adjusted for inflation.
A risk-adjusted measure of return that differentiates harmful volatility from general volatility by taking into account the standard deviation of negative asset returns, called downside deviation; it subtracts the risk-free rate of return from the portfolio's return, and then divides that by the downside deviation.
Standard DeviationA measure of volatility, or risk, which is the square root of the variance; a measure of dispersion in the same units as the original data.
Statement of Additional Information (SAI)
A supplementary document to a mutual fund or close-end fund's prospectus that contains additional information about the fund and includes further disclosure regarding its operations. Also, known as "Part B" of the fund's registration statement.
Total Constituent Daily Traded Value
Is the sum of the six-month average daily traded value (in USD) of a fund's individual holdings.
The actual rate of return of an investment or a pool of investments over a given evaluation period; total return includes interest, capital gains, dividends and distributions realized over a given period of time.
A measure of how often a fund manager sells all the stocks in the mutual fund in a given year.
Upside (Downside) Capture Ratio
Measures a manager's performance in up (down) markets relative to the benchmark itself. It is calculated by taking the security's upside (downside) capture return and dividing it by the benchmark's upside (downside) capture return.
U.S. Dollar Index
An index that measures the value of the United States dollar relative to a basket of foreign currencies.
A statistical measurement of a score's relationship to the mean in a group of scores. A Z-score of 0 means the score is the same as the mean. A Z-score can also be positive or negative, indicating whether it is above or below the mean and by how many standard deviations.