Advisor Flipbooks

Definitions Sharpe Ratio: A measurement of the reward per unit of risk, which is calculated by using standard deviation (risk) and excess return over a risk-free index. Standard deviation: Statistical measure of historical volatility. A statistical measure of the distance a quantity is likely to lie from its average value. It is applied to the annual rate of return of an investment, to measure the investment's volatility (risk). Standard deviation is synonymous with volatility, in that the greater the standard deviation the more volatile an investment's return will be. A standard deviation of zero would mean an investment has a return rate that never varies. Index definitions US Large = Russell 1000 Index, US Small = Russell 2000 Index, Int'l Equity = MSCI EAFE Index, EM Equity = MSCI Emerging Markets Index, Core Fixed = Bloomberg US Aggregate Bond Index, High Yield = Bloomberg US Corporate High Yield Total Return Index, EM Debt = 50% JP Morgan EMBI Global Diversified Index/50% JP Morgan GBI EM Global Diversified Index, TIPS = Bloomberg 1-5 Year US TIPS Index, Commodities = Bloomberg Commodity Total Return Index, Long Duration = Bloomberg US Long Government/Credit Index, Short-Duration = ICE BofA 1-3 Year US Treasury Index, Cash = ICE BofA USD 3-Month Deposit Offered Rate Constant Maturity Index. Sources: Bloomberg, SEI. Past performance is not a guarantee of future results. Bloomberg 1-5 Year US TIPS Index: measures the performance of inflation-protected public obligations of the U.S. Treasury that have a remaining maturity of one to five years. Bloomberg US Long Government/Credit Index: measures the investment return of all medium and larger public issues of U.S. Treasury, agency, investment-grade corporate and investment-grade international dollar-denominated bonds with maturities longer than 10 years. The average maturity is approximately 20 years. Bloomberg Commodity Total Return Index: composed of futures contracts and reflects the returns on a fully collateralized investment in the BCOM. This combines the returns of the BCOM with the returns on cash collateral invested in 13 week (3 Month) U.S. Treasury Bills. Bloomberg US Aggregate Bond Index: composed of U.S. securities in Treasury, government-related, corporate and securitized sectors. It includes securities that are of investment-grade quality or better, have at least one year to maturity and have an outstanding par value of at least $250 million. Bloomberg US Corporate High Yield Index: measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging-markets country of risk are excluded. ICE BofA 1-3 Year US Treasury Index: an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. ICE BofA USD 3-Mon Deposit Offered Rate Constant Maturity Index: based on the assumed purchase of a synthetic instrument having three months to maturity and with a coupon equal to the closing quote for 3-month LIBOR. That issue is sold the following day (priced at a yield equal to the current day closing 3-month LIBOR rate) and is rolled into a new 3-month instrument. The index, therefore, will always have a constant maturity equal to exactly three months. JP Morgan GBI Emerging Markets Global Diversified: a total return, unmanaged trade-weighted index for U.S. dollar- denominated emerging-market bonds, including sovereign debt, quasi-sovereign debt, Brady bonds, loans and Eurobonds. JP Morgan EMBI Global Diversified Index: tracks the performance of external debt instruments (including U.S.-dollar- denominated and other external-currency-denominated Brady bonds, loans, eurobonds and local-market instruments) in emerging markets. MSCI Emerging Markets Index: a free float-adjusted market-capitalization-weighted index designed to measure the performance of global emerging-market equities. MSCI EAFE Index: an unmanaged, market-capitalization-weighted equity index that represents the developed world outside North America.

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