Glossary
30-Day SEC Yield
The 30-Day Yield represents net investment income earned by the Fund over the 30-Day period ended on the date indicated by the Yield, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period. The 30-Day unsubsidized SEC Yield does not reflect any fee waivers/reimbursements/limits in effect.
Basis Point
A basis point is 1/100th of 1%, or 0.01%. Basis points (BPS) are used to show change in the value or rate of a financial instrument.
Consumer Price Index (CPI)
A calculation of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Duration
A measure of the sensitivity of the price of the bond or other debt instrument to a change in interest rates.
Net Asset Value (NAV)
The “market value” of all a company’s assets, including but not limited to its properties, after subtracting the “market value” of all its liabilities and obligations.
S&P 500 Index
Swaption
An option to enter into an interest rate swap or some other type of swap. In exchange for an options premium, the buyer is granted the right but not the obligation to enter into a specified swap agreement with the issuer on a date specified in the future.
TIPS Treasury Inflation-Protected Securities (“TIPS”)
A type of U.S. Treasury security issued by the government. TIPS are indexed to the rate of inflation in order to protect investors from a decline in their purchasing power.
VIX Index
The CBOE Volatility Index, or VIX, is a real-time market index representing the market’s expectations for volatility over the coming 30 days
Par
Par value, also known as nominal or original value, is the face value of a bond or the value of a stock certificate, as stated in the corporate charter.
AGG Index
The Bloomberg Aggregate Bond Index, known as the Agg, is used by bond funds as a benchmark to measure their relative performance.
Alpha
Alpha is a term used in investing to describe an investment strategy’s ability to beat the market, or its “edge.” Alpha is thus also often referred to as “excess return” or the “abnormal rate of return” in relation to a benchmark, when adjusted for risk.
