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Investment Factsheet
PAGE 38 OF 50
Inv. Data as of 03/31/25.
STATEMENT OF ADDITIONAL DISCLOSURES
Modern Portfolio Theory (MPT). A method for selecting investments with the goal of maximizing overall returns given an acceptable level of risk by
using diversification. MPT statistics are calculated from a comparison of a fund(s) excess returns and the benchmark(s) excess returns.
Alpha. A measure of the difference between an investment’s actual returns and its expected performance, given its level of risk as measured by beta.
Alpha is often seen as a measure of the value added or subtracted by a manager. A positive alpha figure indicates the investment has performed
better than its beta (or expected return) would predict. In contrast, a negative alpha indicates the investment underperformed, given the expectations
established by the investment’s beta.
Beta. A measure of an investment’s sensitivity to market movements. The beta of the market is 1.00 by definition. An investment with a beta
greater than 1.00 is more volatile than the market, and an investment with a beta less than 1.00 is less volatile than the market.
R-Squared. This statistic reflects the percentage of an investment’s movements that can be explained by movements in its benchmark index,
showing the degree of correlation between the investment and the benchmark. An R-squared of 100 indicates that all movements of an investment
can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks will have an R-squared very close to 100.
Conversely, a low R-squared indicates that very few of the investment’s movements can be explained by movements in its benchmark index. An Rsquared measure of 35, for example, means that only 35% of the investment’s movements can be explained by movements in the benchmark index.
R-squared can be used to ascertain the significance of a particular beta. Generally, a higher R-squared will indicate a more reliable beta figure. If the
R-squared is lower, then the beta is less relevant to the investment’s performance.
EXPENSES
Prospectus Net Expense Ratio. This value is from the investment’s most recent prospectus. The percentage of investment assets used to pay for
operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except
brokerage costs. Fund expenses are reflected in the fund’s Net Asset Value. Sales charges are not included in the expense ratio. The expense ratio for
fund of funds is the aggregate expense ratio defined as the sum of the wrap or sponsor fees plus the estimated weighted average of the underlying
fund fees. A higher expense ratio will "drag" on the overall performance of a fund compared to peers with a lower expense ratio.
Net Expense Ratio (Rank). The percentile rank for the Net Expense Ratio within the investment’s peer group. 1 being the best and 100 the worst.
Prospectus Gross Expense Ratio. This value is from the investment’s most recent prospectus. The total gross expenses (net expenses with waiver
added back in) divided by the fund’s average net assets. If it is not equal to the net expense ratio, the gross expense ratio portrays the fund’s
expenses had the manager not waived a portion, or all, of its fees. Thus, to some degree, it is an indication of fee contracts. Some fee waivers have an
expiration date; other waivers are in place indefinitely.
Audited Net Expense Ratio. The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative
fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV. This expense ratio
is pulled directly from the investment’s annual report. Sales charges are not included in the expense ratio. For fund of funds, the underlying fund
expense ratios are not included in the expense ratio.
Management Fee. Fee charged for the management of pooled investments such as collective investment funds, insurance/annuity products, mutual
funds and individually managed accounts.
12b-1 Fee. This value is usually taken from the fund’s prospectus but may have been edited by your financial advisor if the prospectus amount was
not accurate for your given situation. This value is part of the Net Expense Ratio. It represents a maximum annual charge deducted from investment
assets to pay for distribution and marketing costs. This value can be rebated back to the client to offset other expenses.
Front Load. A one-time deduction from a purchase made into the fund. The amount is relative to the amount of the investment, so that larger
investments incur smaller rates of charge. The sales charge serves as a commission for the broker who sold the fund. Potential fees and sales
charges are an important factor to consider before making an investment. The load compensates the broker or financial planner for the service of
providing professional investment advice.
Deferred Load. A one-time charge paid at the time of the sale of the fund. The amount is relative to the amount of the investment, so that larger
investments incur smaller rates of charge. The sales charge serves as a commission for the broker who sold the fund. Potential fees and sales
Please see important disclosures in the Statement of Additional Disclosures. © 2025, Broadridge Financial Solutions, Inc. All rights reserved. The analysis
and opinions generated by Broadridge and its affiliates do not constitute professional investment advice and are provided solely for informational purposes.
