Guide to Equity and Bond Universe

Guide to Equity and Bond Universe | Definitions

Market Oriented Accounts Universe

These managers do not evidence a consistent preference for the types of companies emphasized in Value or Growth portfolios. However, two distinct types of organizations fall into this category: (1) those that construct portfolios with growth and valuation characteristics similar to the broad market over a market cycle and (2) those willing to make meaningful bets in growth or value emphasis across time, but with no consistent preference. Market-Oriented managers typically are willing to consider companies representative of the broad market when seeking investment opportunities.

Currency: US dollars

Market Oriented Mutual Funds Universe

These managers do not evidence a strong preference for the types of companies emphasized in Value or Growth portfolios. Market-Oriented managers typically are willing to consider companies across the broad market when seeking investment opportunities. Two distinct types of organizations fall into this category: (1) those that construct portfolios with growth and valuation characteristics consistently similar to the broad market and (2) those willing to make meaningful bets in growth or value emphasis across time, but with no consistent preference. All returns are net of fees. Fund data, investment objectives, and style definitions are provided by Morningstar. Although data are gathered from reliable sources, accuracy and completeness cannot be guaranteed.

Portfolios may either be well diversified or take meaningful sector/factor bets relative to the market toward both growth and value over time. Average growth and valuation characteristics over time are near those of broad market indexes. The investment style of the fund must be Market-Oriented, or Blend. The funds must also have a minimum of four years of history and at least $10 million in net assets.

Currency: US dollars

Municipal Bond Accounts Universe

Portfolios invested primarily in municipal bonds and tax-advantaged instruments for taxable clients. Includes commingled funds, separate accounts, and mutual funds (gross of fees). Portfolios tend to represent fully discretionary, unconstrained assignments. Fund data supplied directly from individual managers and by Morningstar. Although data are gathered from reliable sources, accuracy and completeness cannot be guaranteed..

Currency: US dollars

Non-US Equity Mutual Funds Universe

These funds invest primarily in securities of companies outside the United States. All returns are net of fees. Fund data, investment objectives, and style definitions are provided by Morningstar. Although data are gathered from reliable sources, accuracy and completeness cannot be guaranteed.

Funds are selected using the following criteria:

The investment objective of the fund must be Foreign.
Funds must have a minimum of four years history and at least $10 million in net assets.

Currency: US dollar

Small Capitalization Accounts Universe

Manage

rs in this style focus on small capitalization stocks. These companies may be unseasoned and rapidly growing but sometimes simply are small businesses with long histories. Typical characteristics of small capitalization portfolios are below-market dividend yields, above-market betas, and high residual risk relative to broad market indexes.

Focus is on small capitalization companies. Other characteristics vary by manager, depending on whether they pursue a Growth, Market-Oriented, or Value philosophy when selecting small stocks.

Currency: US dollars

Non-US Equity Portfolios Universe

Limited to separate accounts and pooled funds. None are permitted to hold US equities, but all can use US dollar short-term investments. Accounts must be fully discretionary and equity-oriented. Returns must be total fund returns.

Currency: US dollars

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

Value Equity Accounts Universe

Managers in this group are referred to as "value investors". While differences exist in how managers in this style define "value," an issue's current market price is a critical variable. For example, some organizations focus on companies having low absolute or relative P/E ratios, while others stress issues with above-market dividend yields. Additional measures that are frequently used are price/book value and price/sales ratios. A stock whose price has declined because of adverse investor sentiment may also attract some of these managers. Historical growth and profitability characteristics frequently are well below market averages, and overall characteristics are in sharp contrast to those of Growth managers.

The focus is on buying securities at low valuations on an absolute basis or relative to the market and/or historical levels. Portfolios typically exhibit below-average price/book value ratios, below-average P/E ratios, and/or high dividend yields. Risk characteristics in terms of volatility and beta vary but frequently are below market averages.

Currency: US dollars

Value Equity Mutual Funds Universe

While differences exist in how managers in this style define "value," an issue's current market price generally is the critical variable. For example, some organizations focus on companies having low absolute or relative P/E ratios, while others stress issues with above-market dividend yields. Additional measures that may be used are price/book value and price/sales ratios. A stock whose price has declined because of adverse investor sentiment may also attract some of these managers. Historical growth and profitability characteristics frequently are well below market averages, and overall characteristics are in sharp contrast to those of Growth managers. All returns are net of fees. Fund data, investment objectives, and style definitions are provided by Morningstar. Although data are gathered from reliable sources, accuracy and completeness cannot be guaranteed.

Funds are selected using the following criteria:

The investment style of the fund must be Value
Funds must also have a minimum of four years of history and at least $10 million in net assets.

Currency: US dollars

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