*Cyclical: Basic Materials, Consumer Cyclical, Financial Services, Real Estate
*Sensitive: Communication Services, Energy, Industrials, Technology
*Defensive: Consumer Defensive, Healthcare, Utilities
Notes & Disclosures
1Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.
2Exchange-traded funds (ETFs) and mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges and expenses before investing. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. Past performance is not indicative of future results.
3The fund management fee is the weighted average annual expense ratio of the funds held by the strategies. It does not reflect advisory fees paid to AlphaGlider which are dependent on total assets invested.
4AlphaGlider strategies may differ significantly from the securities held in their benchmarks which are composites of indexes. Benchmarks are rebalanced monthly, assume reinvestment of dividends and interest and do not reflect the effects of taxes. Benchmarks and their underlying indices are unmanaged and do not incur management fees, costs and expenses. One cannot invest directly in the benchmarks or the indices.
5The MSCI All Country World Index (ACWI) Investable Market Index (IMI) Total Return (TR) Net is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets of all market capitalizations.
6The Bloomberg Barclays Capital US Aggregate Bond Index is a market capitalization weighted index that is designed to track most investment grade bonds traded in the United States. The index includes Treasury securities, government agency bonds, mortgage-backed bonds, corporate bonds and a small amount of foreign bonds traded in the United States. Municipal bonds and Treasury Inflation-Protected Securities (TIPS) are excluded due to tax treatment issues.
7Data provided by Morningstar. Forward dividend yield is the weighted average ratio of dividends a strategy's funds are expected to pay over the coming 12 months to the strategy's funds' share prices. Forward price-to-earnings ratio (P/E) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' expected company earnings over the coming 12 months. Forward price-to-book ratio (P/B) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' company book values over the coming 12 months. Forward price-to-sales ratio (P/S) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' expected company revenue over the coming 12 months. Forward price-to-earnings ratio (P/CF) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' expected company cash flow over the coming 12 months. Forward dividend yield is the weighted average ratio of the strategy's equity funds' company dividends expected over the coming 12 months to the strategy's equity funds' share prices. Average effective duration measures the sensitivity of the price of the strategy's fixed income funds with or without embedded options to changes in interest rates, taking into account the likelihood of the underlying bonds being called, put and/or sunk prior to their final maturity dates while incorporating after-tax impacts on the bonds. Average effective duration provides a measure of the strategy's fixed income funds' interest-rate sensitivity. Average yield to maturity is the internal rate of return earned on the strategy's fixed income funds' holdings at the holdings' current market prices, assuming the holdings are held until maturity.
8The strategy composition is subject to change without notice. Holdings of individual client portfolio may differ, sometimes significantly, from those shown. Percentages may not total 100 due to rounding.
9Trading of funds with a check mark next to them are commission-free at our custodians. In my529 Eduational Savings Plan accounts, trades are commission-free but are limited by law to two portfolio changes per calendar year.
10Small capitalization securities involve greater issuer risk than larger capitalization securities, and the markets for such securities may be more volatile and less liquid. Specifically, small capitalization companies may be subject to more volatile market movements than securities of larger, more established companies, both because the securities typically are graded in lower volume and because the issuers typically are more subject to changes in earnings and prospects.
Investing internationally carries additional risks such as differences in financial reporting, currency exchange risk, as well as economic and political risk unique to the specific country. This may result in greater share price volatility. Investments in emerging markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries. Shares, when sold, may be worth more or less than their original cost.
Alternative investments, including hedge funds, commodities and managed futures involve a high degree of risk, often engage in leveraging and other speculative investments practices that may increase risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are subject to the same regulatory requirements as mutual funds, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. The performance of alternative investments including hedge funds and managed futures can be volatile. Often, hedge funds or managed futures account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor’s interest in alternative investments, including hedge funds and managed futures and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products including hedge funds and managed futures often execute a substantial portion of their trades on non-US exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in the US markets. Additionally, alternative investments including hedge funds and managed futures often entail commodity trading which can involve substantial risk of loss.