Glossary

Table of Contents

    Active Share

    Active Share is a measure of the percentage of stock holdings in a manager's portfolio that differs from the benchmark index.

    Basis Point

    A basis point (bp) equals 1/100 of a percentage point. 1 bp = 0.01%, 100 bps = 1%.

    Book Value

    Book Value (BV) is the net asset value of a company, calculated by total assets minus intangible assets and liabilities.

    Cash Flow

    Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business. 

    Earnings Long-Term Future Growth Rate

    Earnings long-term future growth rate is the earnings long-term secular growth rate for a period of three to five years per fund holdings; this figure is not a reflection of the Fund's performance.

    Earnings Per Share

    Earnings per share (EPS) is a financial measure which indicates the profitability of a company. It is calculated by dividing the company’s net income by its total number of outstanding shares.

    Expense Ratio

    An expense ratio measures how much of a fund's assets are used for administrative and other operating expenses. An expense ratio is determined by dividing a fund's operating expenses by the average dollar value of its assets.

    Free Cash Flow

    Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

    Market Capitalization

    Market capitalization is the number of a company's outstanding shares multiplied by the price of one share.

    Net Asset Value

    Net Asset Value (NAV) represents the net value of a fund's assets on a per-share basis.

    Price-to-Book Ratio

    The price-to-book ratio (PB) is a ratio used to compare a company's current market value to its book value.  It's calculated by dividing the company's stock price per share by its book value per share (BVPS).

    Price-To-Cash Flow

    The price-to-cash flow (P/CF) ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share.

    Price-To-Earnings Ratio

    The price-to-earnings ratio (P/E) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). 

    Return on invested capital

    Return on invested capital (ROIC) is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. 

    Russell 1000® Value Index

    The Russell 1000® Value Index consists of stocks in the Russell 1000 Index with lower price-to-book (P/B) ratios and lower forecasted growth values.

    S&P 500® Index

    The S&P 500® Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks.

    S&P 500® Health Care Services Sector

    The S&P 500® Health Care Services Sector comprises those companies included in the S&P 500 that are classified as members of the GICS® health care sector.

    Weighted average market capitalization

    Weighted average market capitalization is a type of market or portfolio statistic in which each component is weighted according to the size of its total market capitalization.