-
Distributions to mutual fund shareholders of interest and dividend income
received on the securities held in the fund's portfolio.
- EPS Growth Rate
-
The average growth in earnings per share of the portfolio's holdings, based on
percentage change over the prior year.
- Exercise Or Strike Price
-
The price at which the holder (buyer) may purchase or sell the underlying
futures contract upon the exercise of an option.
- Expense Ratio
-
The fund's annual operating expenses expressed as a percentage of the average
daily NAV.
- Expiration Date
-
The last day that an option may be exercised into the underlying futures
contract. Also, the last day of trading for a futures contract.
- Floor Broker
-
An exchange member who is paid a fee for executing orders for Clearing Members
or their customers. A Floor Broker executing orders must be licensed by the CFTC.
- Floor Trader
-
An exchange member who generally trades only for his/her own account or for an
account controlled by him/her. Also referred to as a "local."
- Futures
-
A term used to designate all contracts covering the purchase and sale of
financial instruments or physical commodities for future delivery on a commodity
futures exchange.
- Futures Commission Merchant
-
A firm or person engaged in soliciting or accepting and handling orders for the
purchase or sale of futures contracts, subject to the rules of a futures
exchange and, who, in connection with solicitation or acceptance of orders,
accepts any money or securities to margin any resulting trades or contracts. The
FCM must be licensed by the CFTC.
- Handle
-
In the S&P 500 a handle is one dollar unit or 100 points. For example,
if the markets is trading at 988.00 (or "8 even") if the market moves
up to the next handle the S&P's would be trading at 989.00 (or "89
even"). With the markets moving so quickly it is important to listen
for the "handle" if not in front of a quote screen.
- Head & Shoulders
-
A chart formation in which a price exhibits three
successive rallies, the second one being the highest. This pattern is
viewed as a reversal pattern.
- Hedge
-
The purchase or sale of a futures contract as a temporary substitute for a cash
market transaction to be made at a later date. Usually it involves opposite
positions in the cash market and futures market at the same time.
- Holder
-
One who purchases an option.
- Initial Performance Bond
-
The funds required when a futures position (or a short options on futures
position) is opened. (Previously referred to as Initial Margin)
- Investment Objective
-
Each fund is assigned to an investment objective group by Lipper Analytical
analysts on the basis of the investment policy statement from the fund's
prospectus, and a review of the funds investments. Fund rankings are within this
'peer group'.
- Investment Minimums
-
The minimum dollar amount needed to buy this fund's shares for the first time or
for subsequent investments in the fund.
- Limit Order
-
An order given to a broker by a customer that specifies a price; the order can
be executed only if the market reaches or betters that price.
- Limit Price
-
(See maximum price fluctuation.)
- Lipper Market Phase Rankings Quintiles
-
An evaluation of the fund's performance relative to its peer group during the
current phase of the market cycle as well as the prior up and down phases. An
'A' means a fund is in the top 20% of all funds in its investment objective
(highest total return), while an 'E' means a fund is in the bottom 20% (lowest
total return).
- Liquidation
-
Any transaction that offsets or closes out a long or short futures position.
- Load
-
Also known as sales charge. The maximum amount charged on the initial purchase
of a fund that carries a load, expressed as a percentage of the offer price. The
percentage may decrease for large purchases of the fund.
- Long
-
One who has bought a futures or options on futures contract to establish a
market position through an offsetting sale; the opposite of short.
- Long Hedge
-
The purchase of a futures contract in anticipation of an actual purchase in the
cash market. Used by processors or exporters as protection against and advance
in the cash price. (See hedge, short
hedge.)
- Maintenance Performance Bond (Previously referred to a
Maintenance Margin)
-
A sum, usually smaller than--but part of--the initial performance bond, which
must be maintained on deposit in the customer's account at all times. If a
customer's equity in any futures position drops to, or under, the maintenance
performance bond level, a "performance bond call" is issued for the
amount of money required to restore the customer's equity in the account to the
initial margin level.
- Management Fee
-
Amount paid to the fund's investment advisor expressed as a percentage of the
average daily NAV.
- Mark-To-Market
-
The daily adjustment of margin accounts to reflect profits and losses.
- Market Order
-
An order for immediate execution given to a broker to buy or sell at the best
obtainable price.
- Maximum Price Fluctuation
-
The maximum amount the contract price can change, up or down, during one trading
session, as stipulated by Exchange rules.
- Minimum Price Fluctuation
-
Smallest increment of price movement possible in trading a given contract, often
referred to as a "tick."
- M.I.T.
-
Market-If-Touched. A price order that automatically becomes a market order if
the price is reached.
- Net Asset Value (NAV)
-
The total market value of all assets of the fund, less all liabilities, divided
by the number of shares outstanding. It is also the price you pay per share for
fund shares which have no front-end sales charge.
- Offer
-
Also called "ask". Indicates a willingness to sell a futures contract
at a given price. (See bid.)
- Offer Price
-
The price at which mutual fund shares that carry a front-end load (or sales
charge) can be purchased.
- Offset
-
Selling if one has bought, or buying if one has sold, a futures or options on
futures contract.
- Open Interest
-
Total number of futures or options on futures contracts that have not yet been
offset or fulfilled by delivery. An indicator of the depth or liquidity of a
market (the ability to buy or sell at or near a given price) and of the use of a
market for risk- and/or asset-management.
- Open Order
-
An order to a broker that is good until it is canceled or executed.
- Opening, The
-
The period at the beginning of the trading session during which all transactions
are considered made or first transactions were completed.
- Opening Price (Or Range)
-
The range of prices at which the first bids and offers were made or first
transactions were completed.
- Option
-
A contract giving the holder the right, but not the obligation, hence,
"option," to buy (call option) or sell (put option) a futures contract in a given commodity at a
specified price at any time between now and the expiration of the option
contract.
- Out-Trades
-
A situation that results when there is some confusion or error on a trade. A
difference in pricing, with both traders thinking they were buying, for example,
is a reason why an out-trade may occur.
- Peer Group Return
-
Average of the total return for all funds in this investment objective.
- Performance Bond (Previously referred to as Margin)
-
Funds that must be deposited as a performance bond by a customer with his or her
broker, by a broker with a clearing member, or by a clearing member, with the
Clearing House. The performance bond helps to ensure the financial integrity of
brokers, clearing members and the Exchange as a whole.
- Performance Bond Call (previously referred to as Margin Call)
-
A demand for additional funds because of adverse price movement.
- Performance Quintile
-
This fund's cumulative return compared to all other funds in its investment
objective (peer group) and ranked by the fund's performance: An 'A' means a fund
is in the top 20% of all funds in its investment objective, while an 'E' means a
fund is in the bottom 20%.
- Premium
-
1.) The excess of one futures contract price over that of another, or over the
cash market price. 2.) The amount agreed upon between the purchaser and seller
for the purchase or sale of a futures option -- purchasers pay the premium and
sellers (writers) receive the premium.
- Price/Earnings Ratio
-
The average price-to-earnings per share ratio of the portfolio's holdings, based
on latest twelve months earnings.
- Position
-
An interest in the market, either long or short, in the form of open contracts.
(See open interest.)
- Put
-
An option to sell a commodity, security, or futures contract at a specified
price at any time between now and the expiration of the option contract.
- Rally
-
An upward movement of prices following a decline; the opposite of a reaction.
- Range
-
The high and low prices or high and low bids and offers, recorded during a
specified time.
- Ranking
-
Fund's performance rank within the total number of funds in that investment
objective.
- Reaction
-
A decline in prices following an advance. The opposite of rally.
- Registered Representative
-
A person employed by, and soliciting business for, a commission house or
Futures Commission Merchant.
- Round-Turn
-
Procedure by which a long or short position is offset by an opposite transaction
or by accepting or making delivery of the actual financial instrument or
physical commodity.
- Scalp
-
To trade for small gains. Scalping normally involves establishing and
liquidating a position quickly, usually within the same day, hour or even just a
few minutes.
- Sectors
-
Shows the breakdown of the portfolio's investments into industry groups.
- Settlement Price
-
A figure determined by the closing range that is used to calculate gains and
losses in futures market accounts. Settlement prices are used to determine
gains, losses, margin calls, and invoice prices for deliveries. (See
closing range.)
- Short
-
One who has sold a futures contract to establish a market position and who has
not yet closed out this position through an offsetting purchase; the opposite of
long.
- Short Hedge
-
The sale of a futures contract in anticipation of a later cash market sale. Used
to eliminate or lessen the possible decline in value of ownership of an
approximately equal amount of the cash financial instrument or physical
commodity. (See hedge, long hedge.)
- Speculator
-
One who attempts to anticipate price changes and, through buying and selling
futures contracts, aims to make profits; does not use the futures market in
connection with the production, processing, marketing or handling of a product.
The speculator has no interest in making or taking delivery.
- Spread
-
The simultaneous purchase and sale of futures contracts for the same commodity
or instrument for delivery in different months, or in different but related
markets. A spreader is not concerned with the direction in which the market
moves, but only with the difference between the prices of each contract.
- Standard Deviation
-
A measure of the volatility of a fund's total returns. This measures the
fluctuation of the fund's monthly return, above and below the mean, usually over
a 5-year period. The higher the standard deviation number, the more a fund's
returns vary from month to month.
- Stop Order (Or Stop)
-
An order to buy or sell at the market when and if a specified price is reached.
- Symbol
-
A five-letter code assigned by NASDAQ to identify the fund.
- Ten Largest Holdings
-
The portfolio's ten largest investments, expressed as a percentage of the fund's
net assets.
- Tick
-
Refers to a change in price, either up or down. (See
minimum
price fluctuation.)
- Total Net Assets
-
Total market value of the securities, cash and other assets of the fund, less
all liabilities.
- Total Return
-
Change in the value of the investment during the time period shown, assuming
reinvestment of dividend and capital gains distributions.
- Trend
-
The general direction of the market. Turnover
The percent of the securities portfolio that has been sold or replaced by the
fund over the course of a year, expressed as a percentage of average daily NAV.
- Volatility (Fund/Objective Average)
-
The first letter shows the degree to which this fund's monthly returns have
fluctuated, above and below the mean, over the past five years. The second
letter is the average 5-year volatility of the funds in this investment
objective compared to the average volatility of each other equity objective. An
'A/A' means a fund is in the top 20% (lowest volatility), of all funds in its
investment objective, and its investment objective average is in the top 20%
(least volatile), of all equity (or fixed income), investment objectives. An
'E/E' means a fund is in the bottom 20% (most volatile), and its investment
objective average is also in the most volatile quintile.
- Volume
-
The number of transactions in a futures or options on futures contract made
during a specified period of time.
- Yield (12 month)
-
Dividends and interest income received from the fund's investments, less
operating expenses, distributed during the past twelve months, expressed as a
percentage of the NAV. There are different formulas for calculation of yield,
some of which differ from the formula for SEC standardized yield.
- Writer
-
An individual who sells an option.