The alpha of a mutual fund describes the difference between a fund’s actual return over a period of time and its expected return, given the fund’s level of risk. In this case, the risk profile of the fund is measured by the fund’s beta.
The value of a security on the day of purchase or the acquisition value
Refers to a company’s net earnings, net income or earnings per share (EPS), which is usually the last line at the bottom of the page on a company’s income statement.
Capital Expenditure (CapEx):
Carbon Risk Rating (Sustainalytics):
The sum of the after-tax profit of a business plus depreciation and other non-cash charges.
CBOE Volatility Index:
Compound Annual Growth Rate (CAGR):
Debt to Capital:
A measurement of a company’s financial leverage, calculated as the company’s debt divided by its total capital.
Debt to EBITDA:
Discounted Cash Flow (DCF):
Earnings Per Share (EPS):
“Earnings Before Interest, Taxes, Depreciation, and Amortization”
EBITDA to Interest:
EBITDA divided by cash interest expense is a measure used to assess credit quality.
Carbon intensity expressed as the issuer’s total carbon emissions per million USD of revenue as a proxy of the carbon efficiency per unit of output.
Environmental, Social and Governance (ESG):
Criteria are a set of non financial factors that can be used to evaluate an investment’s potential risk and opportunity.
Free Cash Flow
Is equal to the cash from operations of a company less capital expenditures.
Gross Domestic Product (GDP):
Gross of Fees:
Is the total rate of return on an investment before the eduction of any fees or expenses.
Initial Public Offering (IPO):
Margin of Safety:
Moody’s Credit Ratings (Source: Moody’s):
MSCI All Country World Index (ACWI):
A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. It is maintained by Morgan Stanley Capital International (MSCI) and is comprised of stocks from 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries.
Price-to-Book (P/B) Ratio:
Price-to-Cash Flow (P/CF) Ratio:
Price-to-Earnings (P/E) Ratio:
Is a common tool for comparing the prices of different common stocks and is calculated by dividing the earnings per share into the current market price of a stock.
Price-to-Earnings (P/E) 10 Ratio:
A valuation measure, generally applied to broad equity indices, that uses real per-share earnings over a 10-year period. The P/E 10 ratio uses smoothed real earnings to eliminate the fluctuations in net income caused by variations in project margins over a typical business cycle. The P/E 10 ratio is also known as the Cyclically Adjusted Price Earnings (CAPE) ratio or the Shiller P/E ratio.
Is the current stock price divided by our estimate of full value.
Quantitative Easing (QE):
Return on Equity (ROE):
Return on Invested Capital (ROIC):
Russell 1000 Growth Index
Russell 2000 Index:
The most commonly used benchmark for measuring the performance of small-cap stocks.
Russell 2500 Index:
Russell 3000 Value Index:
Russell Midcap Index:
Russell Midcap Value Index:
S&P 500 Index:
S&P Earnings and Dividend Rankings:
S&P 500 Growth Index:
Scope 1 Direct Emissions (tCO₂e):
Scope 2 Indirect Emissions (tCO₂e):
Standard & Poor’s Credit Ratings (Source: Standard & Poor’s):
Standard Deviation (Std Dev):
This statistical measurement of dispersion about an average, depicts how widely a mutual fund’s returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range is wide, implying greater volatility.
10-Year U.S. Treasury Yield:
The return on investment, expressed as a percentage, on the U.S. government’s debt obligations. The higher the yields on 10-, 20-, and 30-year Treasuries, the better the economic outlook.
Is a reference to the gross sales or revenues of a company, which is usually the first line at the top of the page on a company’s income statement.
Of a mutual fund is a measurement that expresses the percentage of a particular fund’s holdings that have been replaced (turned over) during the previous year.
Upside/Downside Capture Ratios:
A measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns.