Basis Point: Is a value equaling one one-hundredth of a percent (1/100 of 1%).
Beta: A measure of the volatility of a stock’s total returns relative to the broader market, as represented by a corresponding benchmark index. A beta above 1.00 indicates greater volatility than the market, while a beta below 1.00 indicates lower volatility than the market
Capital Expenditures (CapEx): Cash outlays a company makes to acquire, build, upgrade, or extend the useful life of long-lived assets. CapEx is typically recorded as an investment on the company’s balance sheet and can be calculated by adding current depreciation to the change in property, plant, and equipment (PP&E). (Source: Investopedia)
Consumer Price Index for All Urban Consumers: All Items is a price index of a basket of goods and services paid by urban consumers. Percent changes in the price index measure the inflation rate between any two time periods. The most common inflation metric is the percent change from one year ago. It can also represent the buying habits of urban consumers. (U.S. Bureau of Labor Statistics)
Discounted Cash Flow (DCF): A valuation method used to estimate the value of an investment by projecting its future cash flows and discounting them back to present value using a required rate of return (discount rate).
Earnings Per Share (EPS): The net income of a company divided by the total number of shares it has outstanding.
EPS Growth: Illustrates the growth of earnings per share over time. Earnings growth is not a measure of a fund’s future performance.
EPS Variability: Measures the variability of annual EPS over the last 10 years. A high EPS variability number indicates that the portfolio is more heavily invested in companies with volatile earnings streams.
Free Cash Flow: Equal to the cash from operations of a company less capital expenditures.
High Beta: Describes a stock or portfolio with returns that tend to be more volatile than the broader market, as indicated by a beta greater than 1.0.
Margin of Safety: A value investing tenet that provides a buffer against unpredictable loss by encouraging investors to purchase securities only when they trade below intrinsic value by a sufficient margin.
Operating Margin: A company’s operating margin is the amount it makes on every dollar of sales after deducting the variable costs involved but before accounting for interest or taxes. Operating margin is calculated by dividing the company’s operating income by its net sales. (Source: Investopedia)
Return on Equity (ROE): Is equal to a company’s after-tax earnings (excluding non-recurring items) divided by its average stockholder equity for the year.
S&P 500 High Beta Index: Measures the performance of the 100 S&P 500 constituents most sensitive to changes in market returns, based on each stock’s beta.
S&P 500 Low Volatility Index: Measures the performance of the 100 least volatile stocks in the S&P 500, with lower-volatility
stocks receiving higher weights.
Click here for a current Fund prospectus.
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.
Mutual fund investing involves risk. Principal loss is possible. The prices of growth stocks may be sensitive to changes in current or expected earnings, may experience larger price swings and may be out of favor with investors at different periods of time.
Click here for Jensen Quality Growth Fund performance, including the 5-year upside/downside capture. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. All returns include the reinvestment of dividends and capital gains. To obtain updated performance information that is current as of the most recent month end, please call 1-800-992-4144 or visit www.jenseninvestment.com.
The Jensen Quality Growth Fund is distributed by Quasar Distributors, LLC