Frequently used financial terms.

1. Capital Gain Distribution:
A payment to mutual fund shareholders of profits realized on the sale of securities in a fund’s portfolio.

2. Capital Appreciation/Depreciation:
An increase or decrease in the market value of a mutual fund’s portfolio securities, which is reflected in the net asset value of the fund’s shares. Capital appreciation/depreciation of an individual security is in relation to the original purchase price.

3. Contingent Deferred Sales Charge (CDSC):
Depending on the class of shares owned, a fee charged by a mutual fund when shares are sold back to the fund. The CDSC expires after a fixed time period.

4. Dividend:
Dividends are a redistribution of a company's earnings directly to its shareholders. The most common form of a dividend is a cash dividend.

5. Dividend Yield:
A measurement of a fund’s dividend as a percentage of the maximum offering price or net asset value.

6. Expense Ratio:
The cost of doing business for a mutual fund, expressed as a percent of the
fund’s net assets.

7. Management Fee:
The amount paid by a mutual fund to its investment advisor(s).

8. Multiple Classes of Shares:
Although an individual mutual fund invests in only one portfolio of securities, it may offer investors several purchase options which a re “classes” of shares. Multiple classes permit shareholders to choose the fee structure that best meets their needs and goals. Generally, each class will differ in terms of how and when sales charges and certain fees are assessed.

9. Financial Industry Regulatory Authority (FINRA):
The Financial Industry Regulatory Authority (FINRA), is the largest non-governmental regulator for all securities firms doing business in the United States.

10. Net Asset Value (NAV) per share:
The market worth of one fund share, obtained by adding a mutual fund’s total
assets (securities, cash, and any accrued earnings), subtracting liabilities, and
dividing the resulting net assets by the number of shares outstanding.

11. Offering Price:
The price at which a mutual fund’s share can be purchased. The offering price
per share is the current net asset va lue any sales charge.

12. Portfolio Turnover:
A measure of the trading activity in a mutual fund’s investment portfolio that
reflects how often securities are bought and sold.

13. Prospectus:
The legal document describing a mutual fund to all prospective shareholders. It contains information required by the Securities and Exchange Commission (SEC), such as a fund’s investment objective and policies, services, investment restrictions, how shares are bought and sold, fund fees and other charges, and the fund’s financial highlights.

14. RMD (Required Minimum Distribution):
The annual distribution the IRS requires you to take on your retirement account after you reach the age of 70 1/2.

15. SEC Yield:
SEC Yield refers to the net income earned by a fund during a recent 30-day
period. The income is annualized and then divided by the maximum offering
price per share on the last day of the 30-day period. The SEC Yield formula
reflects semiannual compounding.

16. Securities and Exchange Commission (SEC):
The primary US federal Agency that regulates the registration and distribution of
mutual fund shares.

17. Total Return:
A measure of a fund’s performance encompassing all elements of return.
Reflects the change in share price over a given period and assumes all
distributions are taken in additional fund shares. The Average Annual Total
Return represents the average annual compounded rate of return for the periods
presented.

18. Wash Sale:
A sale of securities in which a taxpayer has acquired substantially identical
securities within a period beginning thirty days before and ending thirty days after
the date of sale (a sixty-day period). A loss resulting from such a sale is not
currently deductible for federal income tax purposes, but a gain is taxable.

19. Yield on Securities:
For bonds, the current yield is the coupon rate of interest, divided by the
purchase price. For stocks, the yield is measured by dividing dividends paid by
the market price of the stock.