Fidelity Glossary of Investment Terms

Glossary
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30DayYield
AstandardyieldcalculationdevelopedbytheSecuritiesand
ExchangeCommissionforbondfunds.Theyieldiscalculated
bydividingthenetinvestmentincomepershareearned
duringthe30dayperiodbythemaximumofferingpriceper
shareonthelastdayoftheperiod.Theyieldfigurereflects
thedividendsandinterestearnedduringthe30dayperiod,
afterthedeductionofthefund'sexpenses.Itissometimes
referredtoas"SEC30DayYield"or"standardizedyield".
30DayYieldWithoutSubsidy
The30dayyieldwithoutapplicablewaiversor
reimbursements,wheneverthefundissubsidizingallora
portionofthefund'sexpensesasofthecurrentreporting
period.Absentsuchwaiversorreimbursements,thereturns
wouldhavebeenlower.Waiversand/orreimbursementsmay
bediscontinuedanytime.
7DayYield
Theannualizedrateofincomepaidtoshareholdersoverthe
pastsevendays.
7DayYieldWithoutSubsidy
The7dayyieldwithoutapplicablewaiversor
reimbursements,wheneverthefundissubsidizingallora
portionofthefund'sexpensesasofthecurrentreporting
period.Absentsuchwaiversorreimbursements,thereturns
wouldhavebeenlower.Waiversand/orreimbursementsmay
bediscontinuedanytime.

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ActiveManagement
Thetradingofsecuritiestotakeadvantageofmarket
opportunitiesastheyoccur,withthegoalofoutperformingan
investmentbenchmarkindex.Activemanagersrelyon
research,marketforecasts,andtheirownjudgmentand
experienceinselectingsecuritiestobuyandsell.
Aggressive
Aninvestmentapproachthatacceptsaboveaveragerisksin
returnforpotentiallyaboveaverageinvestmentreturns.
AggressiveAllocation
Aggressiveallocationportfoliosseektoprovidebothcapital
appreciationandincomebyinvestinginthreemajorareas:
stocks,bonds,andcash.Theseportfoliostendtoholdlarger
positionsinstocksthanmoderateallocationportfolios.These
portfoliostypicallyhave70%to90%ofassetsinequitiesand
theremainderinfixedincomeandcash.
AggressiveGrowth
Fundsinthisobjectiveseekrapidgrowthofcapital.They
ofteninvestinsmalloremerginggrowthcompaniesandare
morelikelythanotherfundstoinvestininitialpublicofferings
(IPOs)andincompanieswithhighprice/earningsand
price/bookratios.Aggressivegrowthfundsmayalsousesuch
investmenttechniquesasheavysectorconcentrations,
leveraging,andshortselling.
Alpha
Measuresriskadjustedperformance.ApositiveAlpha
indicatesstrongerperformancethanpredictedbythefund's
levelofrisk(measuredbyBeta).AnegativeAlpharepresents
weakerperformancethanpredictedbyafund'sBeta.Alpha
andBetaaremorereliablemeasureswhenusedin
combinationwithahighR2,whichindicatesahighcorrelation
betweenthemovementsinafund'sreturnsandthe
movementsinitsbenchmark.Alphaisannualized.
AlternativeMinimumTax(AMT)
Federaltaxaimedatensuringthatwealthyindividuals,trusts,
estates,andcorporationspayatleastsomeincometax.For
individuals,theAMTiscomputedbyaddingtaxpreference
itemssuchaspassivelossesfromtaxshelters,andtax
exemptinterestonprivatepurposebondsissuedafterAugust
7,1986,toadjustedgrossincome.
AmericanDepositaryReceipt(ADR)
Anegotiablereceiptrepresentingaspecificnumberofequity
sharesinaforeigncorporation.ADRstradeinAmerican
dollarsintheAmericansecuritiesmarketslikedomestic
equities.
AmericanDepositaryShares(ADS)
AtradingunitfortheissuerintheU.S.whichmayrepresent
moreorlessthanoneunderlyingshareoftheissuer.ADSs
areissuedinNewYorkinregisteredform,eligiblefortrading
andclearingintheU.S.markets,andmaybemadeeligible
forclearingoutsidetheU.S.inEuroclearandCEDEL.
AnnualReport
Ayearlyreportorrecordofaninvestment's(e.g.,mutualfund
orstock)orcompany'sfinancialpositionandoperations.
Annuity
Aformofinsurancecontractthatprovidedasteadystreamof
periodicpayments,typicallyforlife.Anannuitycanbefixedor
variable.Afixedannuitypaysasetrateofinterestthatis
adjustedperiodically,whileavariableannuity'spaymentsare
dependentontheperformanceoftheunderlyinginvestment
chosenbytheannuitant..
Appreciation
Anincreaseinthevalueofaninvestment.
Asset
Anythingwithcommercialorexchangevalueownedbya
business,institutionorindividual.Examplesincludecash,real
estateandinvestments.
AssetAllocation
Dividinginvestmentdollarsamongseveralassetclasses
(e.g.,stocks(equities),bonds,andshortterminvestments).
AssetAllocationFunds
Assetallocationfundshavetheabilitytoshiftassetsamong
assetclasses(forexamplestocks(equities),bonds,and
shortterminvestments).Assetallocationfundstakethe
conceptofaprivateassetmanageraskilledprofessional
whobuildsandmanagesacomprehensiveportfoliofora
clientandapplyittoamutualfund.
AssetClass
Agroupofsecuritiesorinvestmentsthathavesimilar
characteristicsandbehavesimilarlyinthemarketplace.The
threeprimaryassetclassesarestocks(equities),bonds,and
shortterminvestments.
AssetbackedSecurities
Bondsornotesbackedbyloanpaperoraccountsreceivable
originatedbybanks,creditcardcompanies,orotherproviders
ofcreditandoften"enhanced"byabankletterofcreditorby
insurancecoverageprovidedbyaninstitutionotherthanthe
issuer.
AssetsCovered
ReportedinComposition,thisisthepercentageofthe
portfolio'sequityassetsforwhichthecorrespondingportfolio
characteristicisprovided.
AuctionMarket
Amarketforsecurities,typicallyfoundonanationalsecurities
exchange,inwhichtradinginaparticularsecurityis
conductedataspecificlocationwithallqualifiedpersonsat
thatpostabletobidoroffersecuritiesagainstordersvia
outcry.
AverageAnnualTotalReturn
Averageannualtotalreturnisahypotheticalrateofreturn
that,ifachievedannually,wouldhaveproducedthesame
cumulativetotalreturnifperformancehadbeenconstantover
theentireperiod.Averageannualtotalreturnssmoothout
variationinperformancetheyarenotthesameasactual
yearbyyearresults.
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BackEndLoad
Afeeimposedbysomefundswhensharesareredeemed
(soldbacktothefund)duringthefirstfewyearsofownership.
Thefeeiscalculatedbasedonthevalueofthesharesbeing
sold.ManyBackEndLoadsareprogressive,meaningthat
thelongeryouholdthesharesinthefund,thelowerthefee
becomesuntilinsomecasesitiseliminatedaltogether.Afee
imposedbysomefundswhensharesareredeemed(sold
backtothefund)duringthefirstfewyearsofownership.
Balanced
Balancedfundsseekbothincomeandcapitalappreciationby
investinginagenerallyfixedcombinationofstocksand
bonds.Thesefundsgenerallyholdaminimumof25%oftheir
assetsinfixedincomesecuritiesatalltimes.
BankLoan
Bankloanportfoliosprimarilyinvestinfloatingratebankloans
insteadofbonds.Inexchangefortheircreditrisk,theseloans
offerhighinterestpaymentsthattypicallyfloatabovea
commonshorttermbenchmarksuchastheLondonInterbank
OfferedRate,orLIBOR.
BasisPoint
Onehundredthofonepercent,or0.01%.Forexample,20
basispointsequal0.20%.Investmentexpenses,interestrates
andyielddifferencesamongbondsareoftenexpressedin
basispoints.
BearMarket
Thesefundsdedicateamajorityofthefund'sassetsto
equities.Mostoftheportfolioisdedicatedtoshortstock
positionsinanattempttotakeadvantageofanticipated
marketorstockdeclinesproducinganetexposuretoequities
oflessthanorequaltonegative20%.Somemanagersinvest
theproceedsfromtheirshortpositionsinlowriskassets,
whileothersdedicateaportiontolongstockpositionsinorder
tohedgeagainstbroadmarketrallies.Intheeventofabroad
marketrally,thesefundswilllosemoneyontheirshort
positionsbutwillexperienceagainontheirlongpositions.
Shortpositionstypicallyaccountfor60%to85%offund
activeexposure,althoughsomefundsmaybe100%short
afterexcludingregulatorycollateral.Thesefundswilltypically
haveabetaoflessthannegative0.3toequityindexessuch
astheS&P500orMSCIWorld.
Benchmark
Astandardagainstwhichtheperformanceofasecurity,
mutualfundorinvestmentmanagercanbemeasured.Some
wellknownbenchmarksaretheDowJonesIndustrial
AverageandtheS&P500Index.
Beneficiary
Theperson(s)designatedtoreceivealloraportionofthe
participant'sbenefitsintheeventoftheparticipant'sdeath.
Beta
Ahistoricalmeasureofafund'ssensitivitytomarket
movementscalculatedbycomparingafund'smonthlyreturns,
over36months,tothoseofthefund'sbenchmark.By
definition,theBetaofthebenchmarkis1.0.ABetaofless
than1.0indicatesthatthefundislesssensitivetomarket
movements,whileaBetagreaterthan1.0indicatesafund
thattendstobemoresensitivetomarketmovements.For
example,abetaof1.5foradomesticstockfundindicatesthat
overthelastthreeyears,thefund'smonthlyreturnshave
fluctuated50percentmorethanthefund'sbenchmark,
assumingthatnootherfactorshaveaffectedthefund's
returns.Generally,thehigherthecorrelationbetweenthefund
andthemarket(asmeasuredbyR2),themoremeaningfula
Betais.BecauseBetaisbasedonmeasurementsofpast
performance,itisnotanindicationofwhatthefund's
performancewillbeinthefuture.
Bill(TreasuryorTBill)
Agovernmentsecuritywithamaturityofayearorless.
BlueChipStocks
Stocksofwellestablishedcompaniesthathavehadahistory
ofearningsanddividendpayments,aswellasareputationfor
soundmanagementandqualityofproductsandservices.
Whilenotalllargecapstocksarebluechipstocks,thereis
usuallyalargecapbiastobluechipstocks.
Bond
Adebtsecuritywhichrepresentstheborrowingofmoneybya
corporation,government,orotherentity.Theborrowing
institutionrepaystheamountoftheloanplusapercentageas
interest.Bondfundsgenerallyinvestinbonds.
BondFunds
Afundthatinvestsprimarilyinbondsandotherdebt
instruments.
BondRating
Aratingorgradethatisintendedtoindicatethecreditquality
ofabond,consideringthefinancialstrengthofitsissuerand
thelikelihoodthatitwillrepaythedebt.Agenciessuchas
Standard&Poor'sandMoody'sInvestorsServiceissue
ratingsfordifferentbonds,rangingfromAAA(highlyunlikely
todefault)toD(indefault).
BroadlyDiversifiedInternationalEquityFunds
Broadlydiversifiedinternationalequityfundsgenerallyfallinto
twocategories:internationalfunds,whichdonotinvestinU.S.
securities,andglobalfunds,whichinvestanywhereinthe
world,includingtheU.S.Althoughtheyarebothconsidered
moreaggressivethanmostdomesticequityfunds,broadly
diversifiedfundsareoftenconsideredtobea"less
aggressive"typeofinternationalfundbecauseoftheirtypical
emphasisondiversificationwithinestablishedmarkets.With
thesefunds,riskisspreadoutacrossanexpansive
geographicarearatherthanconcentratedinasingleregionor
country.Thesefundsareusedbymanyinvestorstoformthe
foundationoftheinternationalcomponentoftheirportfolio.
Broker
Apersonwhoactsasanintermediarybetweenthebuyerand
sellerofasecurity,insuranceproductormutualfund,often
paidbycommission.Also,afinancialprofessionalwhohelps
investorsformulatefinancialplanswithspecificobjectives.
Sincebrokeragefirmsmayoperatebothasbrokersandas
dealersthetermbrokerdealerisoftenused.
BrokerageWindow
Aplanfeaturethatpermitsparticipantstopurchase
investmentsthatarenotincludedamongtheplan'sgeneral
menuofinvestmentoptions.
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CapitalAppreciation
Ifthevalueofaninvestmentappreciatesandyousellitata
higherpricethanyoupaid,youearnaprofit,alsoknownasa
capitalgain.Ifyousellsharesatalowerpricethanyoupaid
forthem,you'llhaveacapitalloss.
CapitalGain
Anincreaseinthevalueofaninvestmentcalculatedbythe
differencebetweenthenetpurchasepriceandthenetsale
price.
CapitalLoss
Lossfromthesaleofaninvestmentconstitutesacapitalloss.
Forexample,ifyouboughtashareofstockfor$5andlater
solditfor$2.50,youwouldhavearealizedcapitallossof
$2.50.
CapitalMarket
Themarketwheresecuritiessuchasstocksandbondsare
traded.
CapitalPreservation
Aninvestmentgoalorobjectivetokeeptheoriginal
investmentamount(theprincipal)fromdecreasinginvalue.
CapitalizationorCap
Thetotalmarketvalueofacompany'soutstandingequity.
Cash&OtherCategory
Amutualfundassetallocationtheorythatincludesnetcash,
shorttermsecurities,andanyothersecurities(suchas
options)notincludedinotherassetallocationcategories.
CategoryRiskLearnMore
MorningstarassignsCategoryRiskLeveltoeachgroupof
mutualfundsthatinvestinthesametypesofassets.These
scoresrangefrom1,forfundswiththeleastamountof
relativerisk,to10,forfundswiththegreatestamount.In
determiningtheCategoryRiskLevel,thescoresbasedonthe
MorningstarRiskarereviewedbyMorningstar'sResearch
Committee.TheCommitteereviewsthepreliminaryoutput,
andmakeschangeswherenecessary,toensurethatthefinal
scoresarelogicallyconsistentandareupdatedtoreflect
currentmarketconditions.HowMorningstarCalculates
CategoryRiskScores:Thefirststepistodeterminethe
averageMorningstarRiskforeachcategoryovertheprevious
fiveyears.MorningstarRiskisthedifferencebetweenthe
MorningstarReturn(excesstotalreturnovertheriskfreerate,
adjustedforloads)andtheMorningstarRiskAdjustedReturn
(excesstotalreturnovertheriskfreerate,adjustedforloads
andrisk).Riskismeasuredbythevariationsinafund's
monthlytotalreturnsduringtheperiod,withgreaterrisk
leadingtoalowerriskadjustedreturn.TheMorningstar
ReturnandMorningstarRiskAdjustedReturnsforeach
Categoryarefoundusingequalweightedaverageofthetotal
returnsofallthefundsinthecategoryforacertaintime
period.Thecategory'sMorningstarRiskisthenusedasthe
startingpointfortheCategoryRiskLevelassignments.
Assignmentscanbemodifiedinoneoftwoways.One
methodofmodificationisbylogic.Forinstance,ifone
municipalbondcategoryfallsjustacrossthedividinglinefrom
anothermunicipalbondcategory,eventhoughbothinvestin
verysimilartypesofassets,bothcategoriesareadjustedso
thattheyaregiventhesameriskassignment.Theymayalso
beadjustedbyjudgment.OneexampleofthiswouldbeLong
ShortMarketNeutralstockfunds.Althoughthesefundstend
toshowverylowriskscoresbasedsolelyonthevariationsin
theirreturns,thecomplexityoftheirstrategiessuggeststhat
theyshouldreceiveahigherriskscorethantherawdata
indicates.Inthiscase,theCategoryRiskscoreisadjusted
accordingly.
CEDEL
Aninternationalclearingsystemthatprovidesbookentry
settlementandcustodyforcertaininstruments.
ChinaRegion
Chinaregionstockportfoliosinvestalmostexclusivelyin
stocksfromChina,Taiwan,andHongKong.Theseportfolios
investatleast70%oftotalassetsinequitiesandinvestat
least75%ofstockassetsinonespecificregionora
combinationofChina,Taiwan,and/orHongKong.
ClassInception
Thedateonwhichaspecificshareclassofafundopensto
investors.
ClosedEndFund
Afundthatdoesnotissueandredeemshares.Closedfunds
areusuallytradedonastockexchange.
CollateralTrustBond
Corporatedebtsecuritybackedbyothersecurities,usually
heldbyabankorothertrustee.Suchbondsarebackedby
collateraltrustcertificatesandareusuallyissuedbyparent
corporationsthatareborrowingagainstthesecuritiesof
whollyownedsubsidiaries.
CollateralizedMortgageObligation(CMO)
Amortgagebackedbondthatseparatesmortgagepoolsinto
differentmaturityclassescalledtranches.Thisis
accomplishedbyapplyingincome(paymentsofprincipaland
interest)frommortgagesinthepoolintheordertheCMO's
payout.
CollectiveorCommingledTrust
Investmentscreatedespeciallyforemployeebenefitplans,
suchas401(k)plans,thatcommingletheassetsofqualified
retirementplansforinvestmentpurposes.Theyarenot
availabletothegeneralpublicandthereforearenotlistedin
thenewspaperorotherssources,andarenotregisteredwith
theSEC.
Commission
Afeeimposedwheninvestmentsareboughtorsoldto
compensatethebrokerorothersalespersonforhisorherrole
inthetransaction.
CommoditiesAgriculture
Agricultureportfoliosinvestingrainandfeedproducts,
oilseeds,cotton,dairy,livestock,poultry,and/orhorticultural
products.Investmentcanbemadedirectlyinphysicalassets
orcommoditylinkedderivativeinstruments.
CommoditiesBroadBasket
Broadbasketportfolioscaninvestinadiversifiedbasketof
commoditygoodsincludingbutnotlimitedtograins,minerals,
metals,livestock,cotton,oils,sugar,coffee,andcocoa.
Investmentcanbemadedirectlyinphysicalassetsor
commoditylinkedderivativeinstruments,suchascommodity
swapagreements.
CommoditiesEnergy
Energyportfoliosinvestinoil(crude,heating,andgas),
naturalgas,coal,kerosene,dieselfuel,andpropane.
commoditylinkedderivativeinstruments.
CommoditiesIndustrialMetals
Industrialmetalsportfoliosinvestinsuchindustrialmetalsas
aluminum,copper,lead,nickel,andzinc.Investmentcanbe
madedirectlyinphysicalassetsorcommoditylinked
derivativeinstruments.
CommoditiesMiscellaneous
Miscellaneousportfoliosinvestinaspecificcommoditythat
doesnotfitintoanyofMorningstar'sexistingcommodity
categoriesandforwhichnotenoughfundsexisttomeritthe
creationofaseparatecategory.
CommoditiesPreciousMetals
Commoditiespreciousmetalsportfoliosinvestinprecious
metalssuchasgold,silver,platinum,andpalladium.
commoditylinkedderivativeinstruments.
CommodityInstruments
Securitiesthatcanbeusedtoapproximatethebehaviorof
specificcommodities.Theseincludeforwards,swaps,short
durationfuturescontracts,orderivatives.Theyareoftenused
tohedgeexposuretoactualphysicalcommodities.
CommonStocks
Stocksrepresentashareintheownershipofaparticular
company.Ifthecompanydoeswell,thevalueofeachshare
generallygoesup.Althoughcommonstockshaveahistoryof
longtermgrowth,theirpricesfluctuatebasedonchangesina
company'sfinancialconditionandonoverallmarketand
economicconditions.
Communications
Communicationsportfoliosconcentrateon
telecommunicationsandmediacompaniesofvariouskinds.
Mostbuysomecombinationofcabletelevision,wireless
communications,andcommunicationsequipmentfirmsas
wellastraditionalphonecompanies.Afewfavor
entertainmentfirms,mainlybroadcasters,filmstudios,
publishers,andonlineserviceproviders.
CompanyStock
Aplaninvestmentoptionwhichinvestsprimarilyinemployer
securitiesandwhichmayalsomaintainacashpositionfor
liquiditypurposes..
CompetingFund
Aplaninvestmentoptionthatisidentifiedbytheinvestment
managerofanotheroptionandwhichissubjecttospecial
rulesrelatingtoaparticipant'sabilitytobuyandsell
investmentsbetweenthetwoinvestmentoptionsdirectly.
Composition
Thisquantifiesthesecuritiesheldbythefund.Composition
canbebrokendownintoassettype,sector,andindividual
security.Compositionmayalsoshowtheweight,or
percentageoftheoverallportfolio,foreachholding.
CompositionbyInstrument
Themakeupofafund'sportfolioexpressedintermsofasset
allocationandindustryandsectordiversification.
CompositionbyQuality
Fidelity:Creditratingsforaratedissuerorsecurityheldby
ourinvestmentgradetaxableandmunicipalbondfundsand
multiassetclassfundswithafixedincomecomponent,are
categorizedusingthehighestcreditratingamongthe
followingthreeNationallyRecognizedStatisticalRating
Organizations(NRSRO):Moody'sInvestorsService
(Moody's)Standard&Poor'sRatingsServices(S&P)or
Fitch,Inc.Creditratingsforaratedissuerorsecurityheldby
ournoninvestmentgradebondfundswhichincludemulti
assetclassbondfundsusingacompositebenchmarkwith
morethanhalfofitstargetallocationinhighyieldoremerging
marketdebt,andrealestate,emergingmarketdebtand
convertiblesecurityfunds,arecategorizedusingMoody's.If
Moody'sdoesnotpublisharatingforasecurityorissuer,then
theS&Pratingisused.WhenS&PandMoody'sprovide
differentratingsforthesameissuerorsecurity,theMoody's
ratingisused.Forallfunds,ifnoneofthesethreeNRSROs
publishesaratingontheissuerorsecurity,thenthesecurity
iscategorizedasNotRated.AllU.S.governmentsecurities
areincludedintheU.S.Governmentcategory.Thetable
informationisbasedonthecombinedinvestmentsofthefund
anditsproratashareofanyinvestmentsinotherFidelity
funds.NonFidelity:DataprovidedbyMorningstar,who
surveysfundcompaniesforthecreditratinginformationon
thefundsunderlyingsecuritiesholdingsonaperiodicbasis.
Morningstarinstructsfundcompaniestoonlyuseratingsthat
havebeenassignedbyaNationallyRecognizedStatistical
RatingOrganizations(NRSRO).IfthreeormoreNRSROs
haveratedthesamesecuritydifferently,fundcompaniesare
toreportthemiddleratingiftwoNRSROshaverateda
securitydifferently,fundcompaniesaretoreportthelowest
ratingifonlyoneNRSROhasratedasecurity,fund
companiesaretoreportthatrating.Securitiesnotratedbyan
NRSROaretobeincludedintheNotRatedcategory.AllU.S.
GovernmentSecuritiesareincludedintheAAAcategory.Ifan
NRSROprovidesMorningstarwithashorttermissuecredit
ratingratherthanatraditionalfixedincomecreditratingfora
cashsecurity,Morningstarwilltranslatethatshorttermissue
ratingtoanequivalentfixedincomecreditratingasreflected
intheCreditQualityBreakdownchart.Morningstarisnotitself
anNRSROnordoesitissueacreditratingonthefundorany
securitiesheldbythefund.ForMoneyMarketFunds:ATier1
securityisamoneymarketfundeligiblesecuritywhosecredit
ratingfallsinthehighestshorttermratingcategoryofthe
NationallyRecognizedStatisticalRatingOrganizations.An
unratedsecurityisTier1ifitrepresentscomparablequalityto
aratedsecurityasdefinedbySECRule2a7underthe
InvestmentCompanyActof1940.ATier2Securityisa
moneymarketfundeligiblesecuritythatisnotaTier1
security.
Compounding
Thecumulativeeffectthatreinvestingearningsonan
investmentmayhavebygeneratingadditionalearningsof
theirown,inadditiontoanyearningsgeneratedbythe
originalinvestment.
Conservative
Aninvestmentapproachthatacceptslowerrewardsinreturn
forpotentiallylowerrisks.
ConservativeAllocation
Conservativeallocationportfoliosseektoprovidebothcapital
stocks,bonds,andcash.Theseportfoliostendtoholdsmaller
positionsinstocksthanmoderateallocationportfolios.These
portfoliostypicallyhave20%to50%ofassetsinequitiesand
50%to80%ofassetsinfixedincomeandcash.
ConsumerCyclical
Consumercyclicalportfoliosseekcapitalappreciationby
investinginequitysecuritiesofU.S.ornonU.S.companiesin
theconsumercyclicalsector.
ConsumerDefensive
Consumerdefensiveportfoliosseekcapitalappreciationby
investinginequitysecuritiesofU.S.ornonU.S.companies
thatareengagedinthemanufacturing,sales,ordistributionof
consumerstaples.
ContingentBeneficiary
Anyonedesignatedtoreceiveadeathbenefitintheeventof
thedeathoftheprimarybeneficiary.Alsoreferredtoasa
secondarybeneficiary.
ContingentDeferredSalesCharge(CDSC)
Afeeimposedwhensharesofamutualfundoravariable
annuitycontractareredeemed(sold)duringthefirstfewyears
ofownership.Alsocalledabackendload.
ConvertibleBond
Acorporatebond,usuallyajuniorsubordinateddebenture,
thatcanbeexchangedforsharesoftheissuer'scommon
stock.
Convertibles
Convertiblebondportfoliosaredesignedtooffersomeofthe
capitalappreciationpotentialofstockportfolioswhilealso
supplyingsomeofthesafetyandyieldofbondportfolios.To
doso,theyfocusonconvertiblebondsandconvertible
preferredstocks.Convertiblebondsallowinvestorstoconvert
thebondsintosharesofstock,usuallyatapresetprice.
Thesesecuritiesthusactabitlikestocksandabitlikebonds.
Convexity
Amathematicalconceptthatmeasuresthesensitivityofthe
marketpriceofabondtochangesininterestrates.
CorporateBond
Abondissuedbyacorporation,ratherthanbyagovernment.
Thecreditriskforacorporatebondisbasedonthepayment
abilityofthecompanythatissuedthebond.Creditriskisin
additiontootherrisksassociatedwithfixedincome
investmentssuchasinflationriskandinterestraterisk.
CorrelationMeasures
Measuresthatshowthevalidityofacomparisonbetweena
portfolioandabenchmark,basedonthehistoricalrelationship
betweenportfolioreturnsandindexreturns.
CountryDiversification
Holdingsarepresentedtoillustrateexamplesofthecountries
orregionswhichthefundmayinvest,andmaynotbe
representativeofthefund'scurrentorfutureinvestments.
Percentagesaredisplayedforthetopsectorsasofthe
countriesorregionsasofthedatestated.Percentagesshown
describetheportionofthefund'stotalnetassets,unless
otherwisestated.
CouponRate
Theannualrateofinterestpayableonadebtsecurity
expressedasapercentageoftheprincipalamount.
CouponYield
(seeNominalYield).
CreditQuality
Fidelity:Creditratingsforaratedissuerorsecurityheldby
ourinvestmentgradetaxableandmunicipalbondfundsand
multiassetclassfundswithafixedincomecomponent,are
categorizedusingthehighestcreditratingamongthe
followingthreeNationallyRecognizedStatisticalRating
Organizations(NRSRO):Moody'sInvestorsService
(Moody's)Standard&Poor'sRatingsServices(S&P)or
Fitch,Inc.Creditratingsforaratedissuerorsecurityheldby
ournoninvestmentgradebondfundswhichincludemulti
assetclassbondfundsusingacompositebenchmarkwith
morethanhalfofitstargetallocationinhighyieldoremerging
marketdebt,andrealestate,emergingmarketdebtand
convertiblesecurityfunds,arecategorizedusingMoody's.If
Moody'sdoesnotpublisharatingforasecurityorissuer,then
theS&Pratingisused.WhenS&PandMoody'sprovide
differentratingsforthesameissuerorsecurity,theMoody's
ratingisused.Forallfunds,ifnoneofthesethreeNRSROs
publishesaratingontheissuerorsecurity,thenthesecurity
iscategorizedasNotRated.AllU.S.governmentsecurities
areincludedintheU.S.Governmentcategory.Thetable
informationisbasedonthecombinedinvestmentsofthefund
anditsproratashareofanyinvestmentsinotherFidelity
funds.NonFidelity:DataprovidedbyMorningstar,who
surveysfundcompaniesforthecreditratinginformationon
thefundsunderlyingsecuritiesholdingsonaperiodicbasis.
Morningstarinstructsfundcompaniestoonlyuseratingsthat
havebeenassignedbyaNationallyRecognizedStatistical
RatingOrganizations(NRSRO).IfthreeormoreNRSROs
haveratedthesamesecuritydifferently,fundcompaniesare
toreportthemiddleratingiftwoNRSROshaverateda
securitydifferently,fundcompaniesaretoreportthelowest
ratingifonlyoneNRSROhasratedasecurity,fund
companiesaretoreportthatrating.Securitiesnotratedbyan
NRSROaretobeincludedintheNotRatedcategory.AllU.S.
GovernmentSecuritiesareincludedintheAAAcategory.Ifan
NRSROprovidesMorningstarwithashorttermissuecredit
ratingratherthanatraditionalfixedincomecreditratingfora
cashsecurity,Morningstarwilltranslatethatshorttermissue
ratingtoanequivalentfixedincomecreditratingasreflected
intheCreditQualityBreakdownchart.Morningstarisnotitself
anNRSROnordoesitissueacreditratingonthefundorany
securitiesheldbythefund.ForMoneyMarketFunds:ATier1
securityisamoneymarketfundeligiblesecuritywhosecredit
ratingfallsinthehighestshorttermratingcategoryofthe
NationallyRecognizedStatisticalRatingOrganizations.An
unratedsecurityisTier1ifitrepresentscomparablequalityto
aratedsecurityasdefinedbySECRule2a7underthe
InvestmentCompanyActof1940.ATier2Securityisa
moneymarketfundeligiblesecuritythatisnotaTier1
security.
CreditRating
Anassessmentofthecreditworthinessofindividualsand
corporationsbaseduponthehistoryofborrowingand
repayment,aswellastheavailabilityofassetsandtheextent
ofliabilities".
CreditRisk
Theriskthatabondissuerwilldefault,meaningnotrepay
principalorinteresttotheinvestoraspromised.Creditriskis
alsoknownas"defaultrisk.
CumulativeTotalReturns
Cumulativetotalreturnreflectsactualperformanceovera
statedperiodoftime.
Currency
Currencyportfoliosinvestinmultiplecurrenciesthroughthe
useofshorttermmoneymarketinstrumentsderivative
instrumentsincludingandnotlimitedtoforwardcurrency
contracts,indexswaps,andoptionsandcashdeposits.
Thesefundsincludebothsystematiccurrencytradersand
discretionarytraders.
CurrencyDiversification
Thedifferentcurrencies,expressedasapercentage,inwhich
thefund'sassetsareissued.
CurrencyFluctuations
Changesinthevalueofacurrencyinrelationshiptoother
majorcurrencies.Currencyfluctuationscanhaveasignificant
effectonthevalueofinternationalmutualfunds.
CurrencyRisk
Theriskthatshiftsinforeignexchangeratesmayundermine
thedollarvalueofoverseasinvestments.
CurrentIncome
Moniespaidduringtheperiodaninvestmentisheld.
Examplesincludebondinterestandstockdividends.
CurrentYield
Theratioofabond'sinterestrateorcoupontoitscurrent
marketprice,shownasapercentage.CurrentYield=Coupon
Rate/CurrentMarketValue".
CUSIP
Anidentificationnumberassignedtomutualfunds,stocksand
registeredbondsbytheCommitteeonUniformSecurity
IdentificationProcedures.
Custodian
Apersonorentity(e.g.,bank,trustcompany,orother
organization)responsibleforholdingfinancialassets.
Cyclicals
Stocksissuedbycompanieswhosebusinessprospectsare
tiedtoeconomiccycles.Forexample,steelcompaniesoften
dopoorlyinarecession,whenconsumersarebuyingfewer
largeitems,suchascarsandrefrigerators.
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Dealer
Anindividualorentitythatbuysandsellssecuritiesforitsown
account.Sincemostbrokeragefirmsoperatebothasbrokers
andasdealers,thetermbrokerdealeriscommonlyused.
Deflation
Theoppositeofinflationadeclineinthepricesofgoodsand
services.
Denomination
Thefaceamountorparvalueofasecuritywhichtheissuer
promisestopayonthematuritydate.
Depreciation
Adecreaseinthevalueofaninvestment.
Deregulation
Theactofreducinggovernmentregulationinordertoallow
morefreemarketstocreateamoreefficientmarketplace.
Somegovernmentoversightusuallyremainsafter
deregulation.
DesignatedInvestmentAlternative
Theinvestmentoptionsselectedandmonitoredbyyourplan
intowhichparticipantscandirecttheinvestmentoftheirplan
accounts.Sometimesreferredtoas"permissibleinvestment
options"or"investmentoptions".
Details
Thesearehighlevelfactsaboutafundthataninvestorcan
usetohelpevaluateaninvestmentoption,includingtotalnet
assetsofafund,expenseratio,andthecurrentnetasset
valueofthefund.
DevelopingMarkets
Alsoknownasemergingmarkets,developingmarketsare
generallydefinedasthosecountrieshavingalowtomiddle
percapitaincomeandintheprocessofdevelopingexistingor
newlycreatedmarketbasedeconomies.
DirectedTrustee
organization)thatisresponsibleforthesafekeepingoftrust
assets,butgenerallyhasnodecisionmakingauthorityover
theassets.
Discount
Thedifferencebetweenabond'scurrentmarketpriceandits
faceorredemptionvalue.
Distributionand/orservicefee(12b1)Fees
The12b1feerepresentsthemaximumannualcharge
deductedfromfundassetstopayfordistributionand
marketingcosts.Total12b1fees,excludingloads,are
cappedat1.00%ofaveragenetassetsannually.Ofthis,the
distributionandmarketingportionofthefeemayaccountfor
upto0.75%.Theotherportionoftheoverall12b1fee,the
servicefee,mayaccountforupto0.25%.
Distributions
Thepercentageofafund'scapitalgainspaidoutto
shareholdersasdistributions.
Diversification
Diversificationistheconceptofspreadingyourmoneyacross
differenttypesofinvestmentsand/orissuerstopotentially
moderateyourinvestmentrisk.
DiversifiedEmergingMarkets
Diversifiedemergingmarketsportfoliostendtodividetheir
assetsamong20ormorenations,althoughtheytendtofocus
ontheemergingmarketsofAsiaandLatinAmericarather
thanonthoseoftheMiddleEast,Africa,orEurope.These
portfoliosinvestatleast70%oftotalassetsinequitiesand
investatleast50%ofstockassetsinemergingmarkets.
DiversifiedPacific/Asia
DiversifiedPacific/Asiastockportfolioshaveawider
investmentrangethanotherAsiaorientedportfolios.These
portfolioscaninvestthroughoutthePacificRim,including
AustraliaandNewZealand.Asaresult,countryweightings
fortheseportfoliosvarytremendously,thoughmostretain
someexposuretoJapanandHongKong.Theseportfolios
least75%ofstockassetsinPacificcountries,includingat
least10%inJapan.
Dividends
Mutualfunddividendsarepaidoutofincomefromthefund's
investments.Thetaxonsuchdividendsdependsonwhether
thedistributionsresultedfrominterestincome,ordividends
receivedbythefund.
DollarCostAveraging
Withdollarcostaveraging,youinvestafixedamountona
regularbasisregardlessofthecurrentmarkettrends.The
investorbuysmoreshareswhenthepriceislowandfewer
shareswhenthepriceishightheoverallcostislowerthanit
wouldbeifaconstantnumberofshareswereboughtatset
intervals.Dollarcostaveragingdoesnotassureaprofitor
protectagainstalossinadecliningmarket.
DomesticBond
Abonddenominatedinthecurrencyofthecountryinwhichit
isissued.
Duration
Durationisameasureofasecurity'spricesensitivityto
changesininterestrates.Durationdiffersfrommaturityinthat
itconsidersasecuritysinterestpaymentsinadditiontothe
amountoftimeuntilthesecurityreachesmaturity,andalso
takesintoaccountcertainmaturityshorteningfeatures(e.g.,
demandfeatures,interestrateresets,andcalloptions)when
applicable.Securitieswithlongerdurationsgenerallytendto
bemoresensitivetointerestratechangesthansecuritieswith
shorterdurations.Afundwithalongeraverageduration
generallycanbeexpectedtobemoresensitivetointerest
ratechangesthanafundwithashorteraverageduration.
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EarningsPerShare(EPS)
Ameasureofacompany'searningsorprofitability.EPSis
calculatedbydividingnetincomeforthepast12monthsby
thenumberofoutstandingcommonsharesofthecompany.
EmergingMarket
Asecuritiesmarketthatisofsmallersizeorthathasashort
operatinghistory.
EmergingMarketFund
Afundthatinvestsprimarilyinemergingmarketcountries.
EmergingMarketsBond
Emergingmarketsbondportfoliosinvestmorethan65%of
theirassetsinforeignbondsfromdevelopingcountries.The
largestportionoftheemergingmarketsbondmarketcomes
fromLatinAmerica,followedbyEasternEurope.Africa,the
MiddleEast,andAsiamakeuptherest.
EmployeeStockOwnershipPlan(ESOP)
Atypeofemployeebenefitplanthatinvestsprimarilyinstock
ofthecompanysponsoringtheretirementplan.
EmployerSecurities
SeeCompanyStock.
EquityEnergy
Equityenergyportfoliosinvestprimarilyinequitysecuritiesof
U.S.ornonU.S.companieswhoconductbusinessprimarily
inenergyrelatedindustries.Thisincludesandisnotlimitedto
companiesinalternativeenergy,coal,exploration,oilandgas
services,pipelines,naturalgasservices,andrefineries.
EquityFund
Afundthatinvestsprimarilyinequities.
EquityPreciousMetals
Preciousmetalsportfoliosfocusonminingstocks,though
somedoownsmallamountsofgoldbullion.Mostportfolios
concentrateongoldminingstocks,butsomehavesignificant
exposuretosilver,platinum,andbasemetalminingstocks
aswell.Preciousmetalscompaniesaretypicallybasedin
NorthAmerica,Australia,orSouthAfrica.
EquityWash
Equitywashisaprovisionofastablevalueproductwhereby
directtransfersbetweencertaincompetingfundsmustbe
directedtoanequityfundorothernoncompetingfundoption
oftheplanforastatedperiodoftime(usually90days)before
suchtransferredfundsmaybedirectedtoanyotherplan
providedcompetingfixedincomeoption.
Equity/Equities
Asecurityorinvestmentrepresentinganownershipina
corporation,unlikeabond,whichrepresentsaloantoa
borrower.Oftenusedinterchangeablywith"stock.
EquityIncome
Fundswiththisobjectiveareexpectedtopursuecurrent
incomebyinvestingatleast65%oftheirassetsindividend
payingequitysecurities.
Eurobond
Aninternationalbondissuedandtradedoutsidethecountryof
theborrowerandoutsidetheregulationsofasinglecountry.
Alsocalledaglobalbond.
Eurodollar
U.S.dollarsheldbyforeigninstitutionsoutsidetheUnited
States.Commonlyusedforsettlementofinternational
transactions.
EuropeStock
Europestockportfoliosinvestatleast70%oftotalassetsin
equitiesandinvestatleast75%ofstockassetsinEurope.
Mostoftheseportfoliosemphasizetheregion'slargerand
moredevelopedmarkets,includingBritain,theNetherlands,
Germany,France,andSwitzerland.Manyalsoinvestinthe
region'ssmallermarkets,includingtheemergingmarketsof
easternEurope.
ExcessiveTrading
Apolicythatlimitsthenumberoftimesyoucanexchangeinto
andoutofafundwithinagiventimeframe.Thisisintendedto
discouragefrequenttradingthatincreasesthecoststoallthe
fund'sinvestors.AlsoreferredtoasFrequentTradingYNew.
ExchangeRate
Thepriceatwhichonecurrencytradesforanother.
ExchangeTradedFund(ETF)
Asecuritythattracksanindexandrepresentsabasketof
stockslikeanindexmutualfund,buttradeslikeastockonan
exchange.
ExDividendDate
Thedaythatafund'sBoardofDirectorsdeclarestheamount
ofincomeorcapitalgaintobedistributedtoshareholdersand
deductsthatamountfromthefund'snetassetvalue.
ExpCap(Board)
ExpenseCapisalimitthatthefundcompanyhasplacedon
theleveloftheexpensesbornebythefund.Thecapis
contractualandindicatesthemaximumlevelofexpenses
(withcertainexceptions)thatthefundwouldbepayingatthat
time.Subjecttoboardapproval,theExpenseCapmaybe
terminatedorrevised,whichmaylowerthefundsyieldand
return.
ExpenseCap
Expensecapisalimitthathasbeenplacedonthelevelofthe
expensesbornebythefund.
ExpenseCap(Shareholder)
contractualandindicatesthemaximumlevelofexpenses
(withcertainexceptions)thatthefundwouldbepayingatthat
time.Subjecttoshareholderapproval,theExpenseCapmay
beterminatedorrevised,whichmaylowerthefundsyield
andreturn.
ExpenseCap(Voluntary)
voluntaryandindicatesthemaximumlevelofexpenses(with
certainexceptions)thatthefundwouldbepayingatthattime.
TheExpenseCapmaybeterminatedorrevisedatanytime,
whichmaylowerthefundsyieldandreturn.
ExpenseRatio(Gross)
Expenseratioisameasureofwhatitcoststooperatean
investment,expressedasapercentageofitsassets,asa
dollaramount,orinbasispoints.Thesearecoststheinvestor
paysthroughareductionintheinvestment'srateofreturn.
Foramutualfund,thegrossexpenseratioisthetotalannual
fundorclassoperatingexpensesfromthefund'smostrecent
prospectus(beforewaiversorreimbursements)paidbythe
fund.Iftheinvestmentoptionisnotamutualfund,the
expenseratiomaybecalculatedusingmethodologiesthat
differfromthoseusedformutualfunds.Keepinmindthe
cumulativeeffectoffeesandexpensescansubstantially
reducethegrowthofyourretirementsavings,butisonlyone
ofmanyfactorstoconsiderwhenyoudecidetoinvestinan
option.VisittheDepartmentofLabor'swebsiteforanexample
ofthelongtermeffectoffeesandexpenses.
ExpenseRatio(Net)
Expenseratioisameasureofwhatitcoststooperatean
investment,expressedasapercentageofitsassets,asa
dollaramount,orinbasispoints.Thesearecoststheinvestor
paysthroughareductionintheinvestment'srateofreturn.
Foramutualfund,thenetexpenseratioisthetotalannual
fundorclassoperatingexpensefromthefund'smostrecent
prospectus,afteranyfeewaiverand/orexpense
reimbursementsthatwillreduceanyfundoperatingexpenses
fornolessthanoneyearfromtheeffectivedateofthefund's
registrationstatement.Thisnumberdoesnotincludeanyfee
waiverarrangementorexpensereimbursementthatmaybe
terminatedwithoutagreementofthefund'sboardoftrustees
duringtheoneyearperiod.Iftheinvestmentoptionisnota
mutualfund,theexpenseratiomaybecalculatedusing
methodologiesthatdifferfromthoseusedformutualfunds..
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FDIC(FederalDepositInsuranceCorporation)
Afederalagencythatinsuresfundsondeposit(currentlyupto
$250,000)inmemberbanksandthriftinstitutions.".
FederalHomeMortgageCorporation(FHLMCor"Freddie
Mac")
Afederallycreatedcorporationestablishedtofacilitatethe
financingofsinglefamilyresidentialhousingbycreatingand
maintaininganactivesecondarymarketforconventional
homemortgages.
FederalNationalMortgageAssociation(FNMAor"Fannie
Mae")
Agovernmentsponsoredprivatecorporationauthorizedto
purchaseandsellmortgagesandtootherwisefacilitatethe
orderlyoperationofasecondarymarketforhomemortgages.
FeeTable
Themutualfundprospectustablethatdescribesthefee
structureofthemutualfund,includingfeespaidbyinvestors
whentheybuyorsellfundsharesandthefeesandother
expensespaiddirectlybythefund.
FeeWaivers
Fromtimetotime,portionsofafund'sexpensesarewaived
foracertainperiod.Feewaiversincreaseafund'syieldand
totalreturn.Feewaiversareoutlinedinfundprospectuses.
Contactthefund'sdistributortoensurethatthewaiverisstill
activeatthetimeofinvestment.
Financial
Financialportfoliosseekcapitalappreciationbyinvesting
primarilyinequitysecuritiesofU.S.ornonU.S.financial
servicescompanies,includingbanks,brokeragefirms,
insurancecompanies,andconsumercreditproviders.
FinancialIndustryRegulatoryAuthority(FINRA)
Aselfregulatoryorganizationforallsecuritiesfirmsdoing
businessintheUnitedStatesthatoperatesunderthe
supervisionoftheSEC.Theorganization'sobjectivesareto
protectinvestorsandensuremarketintegrity.
FinancialStatements
Thewrittenrecordofthefinancialstatusofamutualfundor
company,usuallypublishedintheannualreport.Thefinancial
statementsgenerallyincludeabalancesheet,income
statement,andotherfinancialstatements.
FiscalYearEnd
Thecompletionofamutualfund'soneyear,or12month,
accountingperiod.Afund'sfiscalyearenddoesnot
necessarilyneedtofallonDecember31,andcanactuallyfall
onanydaythroughouttheyear.
FixedAnnuity
Aninsurancecontractinwhichtheinsurancecompanymakes
fixeddollarpaymentstotheannuitantforthetermofthe
contract,usuallyuntiltheannuitantdies.Theinsurance
companyguaranteesbothearningsandprincipal.
FixedIncomeStyleMap
StyleMapdepictionsusedataandcalculationsprovidedby
Morningstar,Inc.Theyprovideanestimatecharacteristicsofa
fund'sfixedincomeholdingsovertwodimensions:creditrisk
andinterestratesensitivity.Thepercentageoffundassets
representedbytheseholdingsisindicatedbesideeach
StyleMap.CurrentStyleMapcharacteristicsarecalculated
eachtimePortfolioholdingsaredenotedwithadot.Historical
StyleMapcharacteristicsarerepresentedbytheshadingof
thebox(es)previouslyoccupiedbythedot.Forfixedincome
funds,theverticalaxisshowsthecreditqualityofthebonds
ownedandthehorizontalaxisshowsinterestratesensitivity
asmeasuredbyabond'seffectiveduration.Morningstar
seekscreditratinginformationfromfundcompaniesona
periodicbasis(e.g.,quarterly).Incompilingcreditrating
information,Morningstarinstructsfundcompaniestoonlyuse
ratingsthathavebeenassignedbythefollowingNationally
RecognizedStatisticalRatingOrganizations(NRSROs):
Moody's,Standard&Poor's,Fitch,andEganJones.Iftwo
NRSROshaveratedasecurity,fundcompaniesaretoreport
thelowestratingifthreeormoreNRSROshaveratedthe
samesecuritydifferently,fundcompaniesaretoreportthe
ratingthatisinthemiddle.Forcreditquality,Morningstar
combinesthecreditratinginformationprovidedbythefund
companieswithanaveragedefaultratecalculationtocome
upwithaweightedaveragecreditquality.Theweighted
averagecreditqualityiscurrentlyaletterthatroughly
correspondstothescaleusedbyaleadingNRSRO.Bond
fundsareassignedastyleboxplacementof"low","medium",
or"high"basedontheiraveragecreditquality.Fundswitha
lowcreditqualityarethosewhoseweightedaveragecredit
qualityisdeterminedtobelessthan"BBB"mediumare
thoselessthan"AA",butgreaterorequalto"BBB"andhigh
arethosewithaweightedaveragecreditqualityof"AA"or
higher.Whenclassifyingabondportfolio,Morningstarfirst
mapstheNRSROcreditratingsoftheunderlyingholdingsto
theirrespectivedefaultrates.Morningstarthenaverages
thesedefaultratestodeterminetheaveragedefaultratefor
theentirebondfund.Finally,Morningstarmapsthisaverage
defaultratetoitscorrespondingcreditratingalongaconvex
curve.Forinterestratesensitivity,Morningstarobtainsfrom
fundcompaniestheaverageeffectiveduration.Generally,
Morningstarclassifiesafixedincomefund'sinterestrate
sensitivitybasedontheeffectivedurationoftheMorningstar
CoreBondIndex(MCBI),whichiscurrentlythreeyears.The
classificationofLimitedwillbeassignedtothosefundswhose
averageeffectivedurationisbetween25%to75%ofMCBI's
averageeffectivedurationfundswhoseaverageeffective
durationisbetween75%to125%oftheMCBIwillbe
classifiedasModerateandthosethatareat125%orgreater
oftheaverageeffectivedurationoftheMCBIwillbeclassified
asExtensive.Formunicipalbondfunds,Morningstaralso
obtainsfromfundcompaniestheaverageeffectiveduration.
Inthesecasesstaticbreakpointsareutilized.These
breakpointsareasfollows:(i)Limited:4.5yearsorless(ii)
Moderate:morethan4.5yearsbutlessthan7yearsand(iii)
Extensive:morethan7years.Inaddition,fornonUStaxable
andnonUSdomiciledfixedincomefundsstaticduration
breakpointsareused:(i)Limited:lessthanorequalto3.5
years(ii)Moderate:greaterthan3.5andlessthanequalto6
years(iii)Extensive:greaterthan6years.
FixedReturnInvestment
Aninvestmentwithastatedrateofreturntotheinvestorfor
thetermoftheinvestment.
ForeignLargeBlend
Foreignlargeblendportfoliosinvestinavarietyofbig
internationalstocks.Mostoftheseportfoliosdividetheir
assetsamongadozenormoredevelopedmarkets,including
Japan,Britain,France,andGermany.Theseportfolios
primarilyinvestinstocksthathavemarketcapsinthetop
70%ofeacheconomicallyintegratedmarket(suchasEurope
orAsiaexJapan).Theblendstyleisassignedtoportfolios
whereneithergrowthnorvaluecharacteristicspredominate.
Theseportfoliostypicallywillhavelessthan20%ofassets
investedinU.S.stocks.
ForeignLargeGrowth
Foreignlargegrowthportfoliosfocusonhighpricedgrowth
stocks,mainlyoutsideoftheUnitedStates.Mostofthese
portfoliosdividetheirassetsamongadozenormore
developedmarkets,includingJapan,Britain,France,and
Germany.Theseportfoliosprimarilyinvestinstocksthathave
marketcapsinthetop70%ofeacheconomicallyintegrated
market(suchasEuropeorAsiaexJapan).Growthisdefined
basedonfastgrowth(highgrowthratesforearnings,sales,
bookvalue,andcashflow)andhighvaluations(highprice
ratiosandlowdividendyields).Theseportfoliostypicallywill
havelessthan20%ofassetsinvestedinU.S.stocks.
ForeignLargeValue
Foreignlargevalueportfoliosinvestmainlyinbiginternational
stocksthatarelessexpensiveorgrowingmoreslowlythan
otherlargecapstocks.Mostoftheseportfoliosdividetheir
assetsamongadozenormoredevelopedmarkets,including
Japan,Britain,France,andGermany.Theseportfolios
primarilyinvestinstocksthathavemarketcapsinthetop
70%ofeacheconomicallyintegratedmarket(suchasEurope
orAsiaexJapan).Valueisdefinedbasedonlowvaluations
(lowpriceratiosandhighdividendyields)andslowgrowth
(lowgrowthratesforearnings,sales,bookvalue,andcash
flow).Theseportfoliostypicallywillhavelessthan20%of
assetsinvestedinU.S.stocks.
ForeignSmall/MidBlend
Foreignsmall/midblendportfoliosinvestinavarietyof
internationalstocksthataresmaller.Theseportfoliosprimarily
investinstocksthatfallinthebottom30%ofeach
economicallyintegratedmarket(suchasEuropeorAsiaex
Japan).Theblendstyleisassignedtoportfolioswhereneither
growthnorvaluecharacteristicspredominate.These
portfoliostypicallywillhavelessthan20%ofassetsinvested
inU.S.stocks.
ForeignSmall/MidGrowth
Foreignsmall/midgrowthportfoliosinvestininternational
stocksthataresmaller,growingfaster,andhigherpricedthan
otherstocks.Theseportfoliosprimarilyinvestinstocksthat
fallinthebottom30%ofeacheconomicallyintegratedmarket
(suchasEuropeorAsiaexJapan).Growthisdefinedbased
onfastgrowth(highgrowthratesforearnings,sales,book
value,andcashflow)andhighvaluations(highpriceratios
andlowdividendyields).Theseportfoliostypicallywillhave
lessthan20%ofassetsinvestedinU.S.stocks.
ForeignSmall/MidValue
Foreignsmall/midvalueportfoliosinvestininternational
stocksthataresmallerandlessexpensivethanotherstocks.
Theseportfoliosprimarilyinvestinstocksthatfallinthe
bottom30%ofeacheconomicallyintegratedmarket(suchas
EuropeorAsiaexJapan).Valueisdefinedbasedonlow
valuations(lowpriceratiosandhighdividendyields)andslow
growth(lowgrowthratesforearnings,sales,bookvalue,and
cashflow).Theseportfoliostypicallywillhavelessthan20%
ofassetsinvestedinU.S.stocks.
ForeignStock
Thesefundsinvestprimarilyinequitysecuritiesofissuers
locatedoutsidetheUnitedStates.Foreigninvestments
includepoliticalandeconomicuncertaintiesofforeign
countriesaswellastheriskofcurrencyfluctuations.These
risksaremagnifiedincountrieswithemergingmarkets,since
thesecountriesmayhaverelativelyunstablegovernments
andlessestablishedmarketsandeconomies.
FrontEndLoad(InitialSalesCharge)
Theinitialsaleschargeorfrontendloadisafeechargedat
thetimeofpurchaseandisdeductedfromyourinvestmentin
thefund.
FundFacts
Thissectionprovidesspecificinformationaboutafund,such
asthedayitfirstopenedtonewinvestors,itsfiscalyearend,
anditsticker,whichisusedforidentificationpurposes.
FundFamily
Agroupor"complex"ofmutualfunds,eachtypicallywithits
owninvestmentobjective,offeredandgenerallymanagedby
thesamecompany.
FundManager(s)
Thepersonorthemanagementcompanywithmanagement
responsibilityforthefundanditsinvestments.
FundName
Aversionofthefund'slegalname.
FundofFunds
Amutualfundorotherpooledinvestmentthatinvestsinother
mutualfundsorpooledinvestments.
FundRiskandReturn
Containsarangeofdatapointsthatshowhowafundhas
performedovertimeandtheamountthatreturnshave
deviatedfromitsbenchmark.
Futures,Options,andSwaps
Financialinstrumentssometimesusedbymutualfundsfora
numberofdifferentpurposes,includinghedgingcertaintypes
ofrisk,makespeculativeinvestmentsonthemovementofthe
valueofanunderlyingasset,toobtainexposuretoanarea
thatitisnotpossibletoinvestindirectly,orcreate
optionabilitywherethevalueofthederivativeislinkedtoa
specificconditionorevent.
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GeneralObligationBond(GO)
Amunicipalbondwhichisbackedbythefullfaithandcredit
(taxingandborrowingpower)ofamunicipality.
GlidePath
Generally,thechangeovertimeinatargetdatefund'sasset
allocationmixtoshiftfromamoreaggressivestrategytoa
moreconservativestrategy.
GlobalDepositaryReceipts(GDR)
Depositaryreceiptsthatareeligibleforsettlementoutsidethe
U.S.GDRsmaybeissuedinNewYork,London,orBrussels
andmadeeligibleforuseintheU.S.markets.
GlobalFund
Afundthatinvestsprimarilyinsecuritiesanywhereinthe
world,includingtheUnitedStates.
GlobalRealEstate
GlobalrealestateportfoliosinvestprimarilyinnonU.S.real
estatesecuritiesbutmayalsoinvestinU.S.realestate
securities.Securitiesthattheseportfoliospurchaseinclude:
debt&equitysecurities,convertiblesecurities,andsecurities
issuedbyrealestateinvestmenttrustsandREITlikeentities.
Portfoliosinthiscategoryalsoinvestinrealestateoperating
companies.
GovernmentBondGeneral
Theseofferingspursueincomebyinvestinginacombination
ofmortgagebackedsecurities,Treasuries,andagency
securities.Althoughthefundmaybecomprisedofsecurities
backedbythefullfaithandcreditoftheU.S.Governmentfor
thepromptpaymentofprincipalandinterestatmaturity,the
funditselfisnotguaranteedbytheU.S.Government.
GovernmentBondMortgage
Fundsinthisobjectiveseekincomebygenerallyinvestingat
least65%oftheirassetsinsecuritiesbackedbymortgages,
suchassecuritiesissuedbythe:GovernmentNational
MortgageAssociation(GNMA)FederalNationalMortgage
Association(FNMA)FederalHomeLoanMortgage
Corporation(FHLMC).Althoughthefundmaybecomprisedof
securitiesbackedbythefullfaithandcreditoftheU.S.
Governmentforthepromptpaymentofprincipalandinterest
atmaturity,thefunditselfisnotguaranteedbytheU.S.
Government.
GovernmentBondTreasury
Treasuryfundsseekincomebygenerallyinvestingatleast
80%oftheirassetsinU.S.Treasurysecurities.Althoughthe
fundmaybecomprisedofsecuritiesbackedbythefullfaith
andcreditoftheU.S.Governmentforthepromptpaymentof
principalandinterestatmaturity,thefunditselfisnot
guaranteedbytheU.S.Government.
GovernmentNationalMortgageAssociation(GNMAor
"GinnieMae")
AnagencyofthefederalDepartmentofHousingandUrban
Developmentempoweredtoprovidespecialassistancein
financinghomemortgageswhichisresponsiblefor
managementandliquidationoffederallyownedmortgage
portfolios.GNMAguarantees,withthefullfaithandcreditof
theU.S.Government,fullandtimelypaymentonmortgage
backedsecurities.
GovernmentSecurities
Anydebtobligationissuedbyagovernmentoritsagencies
(e.g.,TreasuryBillsissuedbyUnitedStates).
GrowthandIncomeFund
Afundthathasadualstrategyofgrowthorcapital
appreciationandcurrentincomegenerationthroughdividends
orinterestpayments.
GrowthFund
Afundthatinvestsprimarilyinthestocksofcompaniesthat
havethepotentialforaboveaveragegains.Thesecompanies
oftenpaysmallornodividendsandtheirstockpricestendto
havethemostupsanddownsfromdaytoday.
GrowthofHypothetical$10,000
Thisdatapoint,usuallyshownasagraph,showshowthe
valueofahypotheticalinvestmentof$10,000inafundwould
havechangedovertime.Itcanalsobeusedtocomparethe
fund'shistoricalperformanceagainstabenchmarkor
MorningstarCategoryaverage.Thismeasurementdoesnot
includefees,althoughitassumesthereinvestmentofall
dividendandcapitalgainsdistributions.
GrowthStocks
Stocksofcompaniesthathaveshownorareexpectedto
showrapidearningsandrevenuegrowth.Growthstocksare
riskierinvestmentsthanmostotherstocksandusuallymake
littleornodividendpaymentstoshareholders.
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Health
Healthportfoliosfocusonthemedicalandhealthcare
industries.Mostinvestinarangeofcompanies,buying
everythingfrompharmaceuticalandmedicaldevicemakersto
HMOs,hospitals,andnursinghomes.Afewportfolios
concentrateonjustoneindustrysegment,suchasservice
providersorbiotechnologyfirms.
HighYieldMunicipal
Thesefundsinvestatleast50%ofassetsinhighincome
municipalsecuritiesthatarenotratedorthatareratedbya
majoragencysuchasStandard&Poor'sorMoody'satthe
levelofBBB(consideredspeculativeinthemunicipal
industry)andbelow.
HighYieldBond
Highyieldbondportfoliosconcentrateonlowerqualitybonds,
whichareriskierthanthoseofhigherqualitycompanies.
Theseportfoliosgenerallyofferhigheryieldsthanothertypes
ofportfolios,buttheyarealsomorevulnerabletoeconomic
andcreditrisk.TheseportfoliosprimarilyinvestinU.S.high
incomedebtsecuritieswhereatleast65%ormoreofbond
assetsarenotratedorareratedbyamajoragencysuchas
Standard&Poor'sorMoody'satthelevelofBB(considered
speculativefortaxablebonds)andbelow.
HighYieldFunds
Highyieldfundsmayinvestinlowerqualitydebtsecurities,
whichgenerallyofferhigheryields,butalsocarrymorerisk.
HighYieldMuni
Highyieldmuniportfoliosinvestatleast50%ofassetsin
highincomemunicipalsecuritiesthatarenotratedorthatare
ratedbyamajoragencysuchasStandard&Poor'sor
Moody'satthelevelofBBB(consideredpartofthehighyield
universewithinthemunicipalindustry)andbelow.
HistoricalFundInformation
Informationdetailingafund'shistoricalchangesand
announcements.
HistoricalFundPerformance
Providesameasureofafund'sreturnsovertime.Capgains
anddividendsshownarepershareamountsandnetassets
representtotalassetsonthelastbusinessdayofeachyear.
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InceptionDate
Thedateonwhichthefundcommencedoperations.
IncomeAnnuity
Withanincomeannuity,aninsurancecompanywillprovide
youwithanincomeguaranteedforaslongasyoulivein
returnforalumpsumpurchase.Yourincomerepresentsa
combinationofbothinterestandprincipal.Oncepayments
begin,nowithdrawalsorsurrendersareallowed.Thereare
fixedandvariableincomeannuities.
Afixedincomeannuitycanprovideyouwithasource
ofincomethatincludesprincipalandearnings.
Earningscontinuetogrowatafixedrateofreturnon
theremainingbalance.Theamountofincomeyou
receiveisbasedontheperformanceofaspecified
portfolioinwhichyourlumpsumisinvested.Avariable
incomeannuityturnsthegrowthfromtheportfoliointo
animmediatesourceofincome.
Avariableincomeannuitycanprovideyouwitha
sourceofincomewhichhasthepotentialtoincreaseto
helpyoukeeppacewithinflation.Theamountof
incomeyoureceiveisbasedontheperformanceof
portfoliosyoucanchoose,manyofwhichareequity
basedportfoliostohelpyoukeeppacewithinflation.A
variableincomeannuityturnsthegrowthfromequity
basedportfoliosintoanimmediatesourceofincome.
IncomeFund
Afundthatprimarilyseekscurrentincomeratherthancapital
appreciation.
Income/Distributions
Fortaxpurposes,amutualfundgenerallypassesalong
dividendsandinterestitreceivesfromsecuritiesitowns.A
fundalsopassesalongyourshareoftheprofitsitmakes
whenitsellssecuritiesforahigherpricethanitpaidforthem.
Youmaychoosetohavethesedistributionssenttoyouoryou
maywanttoreinvestthem.Distributionsaresubjecttofederal
tax,andmayalsobesubjecttostateorlocaltaxes.Your
distributionsaretaxablewhentheyarepaid,whetheryoutake
themincashorreinvestthem.
Index
Astatisticalmeasureofchangeinaneconomyorasecurities
market.Inthecaseoffinancialmarkets,anindexisan
imaginaryportfolioofsecuritiesrepresentingaparticular
marketoraportionofit.Eachindexhasitsowncalculation
methodologyandisusuallyexpressedintermsofachange
fromabasevalue.Thus,thepercentagechangeismore
importantthantheactualnumericvalue.Themostcommon
indexesforstocksorstockfundsaretheDowJonesIndustrial
AverageandtheStandardandPoor's500Index.
IndexFunds
Amutualfundthatattemptstomatchtheresultsofaspecific
index,suchastheS&P500.Mostindexfundsarepassively
managedandhavelowerturnoverratesthanactively
managedmutualfunds,whichcanhelpkeepfeeslower.
IndiaEquity
IndiastockportfoliosemphasizecompaniesbasedinIndia.
Theseportfoliosinvestatleast70%oftotalassetsinequities
andinvestatleast75%ofstockassetsinIndia.
Industrials
Industrialportfoliosseekcapitalappreciationbyinvestingin
equitysecuritiesofU.S.ornonU.S.companiesthatare
engagedinservicesrelatedtocyclicalindustries.This
includesandisnotlimitedtocompaniesinaerospaceand
defense,automotive,chemicals,construction,environmental
services,machinery,paper,andtransportation.
Inflation
Theoverallgeneralupwardpricemovementofgoodsand
servicesinaneconomy.Inflationisoneofthemajorrisksto
investorsoverthelongtermbecauseiterodesthepurchasing
poweroftheirsavings.
InflationRisk
Thechancethatthevalueofassetsorincomewillbe
diminishedasinflationshrinksthevalueofacurrency.
InflationProtectedBond
Inflationprotectedbondportfoliosinvestprimarilyindebt
securitiesthatadjusttheirprincipalvaluesinlinewiththerate
ofinflation.Thesebondscanbeissuedbyanyorganization,
buttheU.S.Treasuryiscurrentlythelargestissuerforthese
typesofsecurities.
Interest
Theamountpaidbyaborrowerascompensationfortheuse
ofborrowedmoney.Thisamountisgenerallyexpressedasan
annualpercentageoftheprincipalamount.
InterestRate
Theannualrate,expressedasapercentageofprincipal,
payableforuseofborrowedmoney.
InterestRateRisk
Thepossibilitythatabond'sorbondfund'smarketvaluewill
decreaseduetorisinginterestrates.
InterestRateSensitivity
Alsoknownasduration,it'sthedegreetowhichabondor
bondfundreactstochangesintheinterestrateenvironment.
IntermediateGovernment
Intermediategovernmentportfolioshaveatleast90%oftheir
bondholdingsinbondsbackedbytheU.S.governmentorby
governmentlinkedagencies.Thisbackingminimizesthe
creditriskoftheseportfolios,astheU.S.governmentis
unlikelytodefaultonitsdebt.Theseportfolioshavedurations
typicallybetween3.5and6.0years.Consequently,the
group'sperformanceanditslevelofvolatilitytendstofall
betweenthatoftheshortgovernmentandlonggovernment
bondcategories.Morningstarcalculatesmonthlybreakpoints
usingtheeffectivedurationoftheMorningstarCoreBond
Indexindeterminingdurationassignment.Intermediateis
definedas75%to125%ofthethreeyearaverageeffective
durationoftheMCBI.
IntermediateTermBond
Intermediatetermbondportfoliosinvestprimarilyincorporate
andotherinvestmentgradeU.S.fixedincomeissuesand
typicallyhavedurationsof3.5to6.0years.Theseportfolios
arelesssensitivetointerestrates,andthereforelessvolatile,
thanportfoliosthathavelongerdurations.Morningstar
calculatesmonthlybreakpointsusingtheeffectivedurationof
theMorningstarCoreBondIndexindeterminingduration
assignment.Intermediatetermisdefinedas75%to125%of
thethreeyearaverageeffectivedurationoftheMCBI.
InternationalFund
Afundthatinvestsprimarilyinthesecuritiesofcompanies
locatedoutsidetheUnitedStates.
InternationalMonetaryFund(IMF)
TheInternationalMonetaryFund(IMF)isanorganizationof
nearly200countries,workingtofosterglobalmonetary
cooperation,securefinancialstability,facilitateinternational
trade,promotehighemploymentandsustainableeconomic
growth,andreducepovertyaroundtheworld.
InvestmentAdviser
Apersonororganizationemployedbyamutualfundoran
individualtogiveprofessionaladviceoninvestmentsand
assetmanagementpractices.
InvestmentCompany
Anentitythatpoolstheassetsofshareholdersandinvestsin
securitiesthatmeetstatedinvestmentobjectivesforindividual
orinstitutionalclients.Themostcommontypeofinvestment
companyisanopenendfund,commonlyknownasamutual
fund,whichcontinuouslyoffersitssharesandwillredeem
sharesatanytimeatitsnetassetvalue.
InvestmentGradeorInvestmentGradeBond
Thebroadcreditdesignationgiventocorporateandmunicipal
bondswhichhaveahighprobabilityofbeingpaidandminor,
ifany,speculativefeatures.BondsratedBaaandhigherby
Moody'sInvestorsServiceorBBBandhigherbyStandard&
Poor'saredeemedbythoseagenciestobe"investment
grade.
InvestmentManager
Afiduciary,usuallyabank,insurancecompany,orregistered
investmentadviser,withthepowertomanage,acquireor
disposeofspecifiedassets.
InvestmentObjective
Thestatedgoalthataninvestmentoptionseekstoachieve,
suchasgrowthorincome.
InvestmentReturn
Thegainorlossonaninvestmentoveracertainperiod,
expressedasapercentage.Incomeandcapitalgainsare
includedincalculatingtheinvestmentreturn.
InvestmentRisk
Thepossibilityoflosingsomeoralloftheamountsinvested
ornotgainingvalueinaninvestment.
IssueDate
Thedateonwhichasecurityisdeemedtobeissuedor
originated.
Issuer
Generally,theissuerofamutualfundisthefundortrust
whichissuesthesharestheissuerofacollectiveinvestment
trustistheunderlyingtrustorinvestmentvehiclewhichissues
theunitstheissuerofastockfundisthecompanywhich
issuesthesharestheissuerofinvestmentoptionssuchas
separateaccountsandstrategiesistheplanwhichmakes
themavailabletheissuerofafixedreturnoptionisthe
insurancecompanyorothercompanywhichoffersthe
investmentandtheissuerofanannuitycontractisthe
insurancecompanyand/ortheinsurancecompanyseparate
account.
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JK
JapanStock
JapanstockportfoliosemphasizecompaniesbasedinJapan.
TheJapanesestockmarketisoneofthelargestintheworld,
sotheseportfolios'holdingsvarysignificantly.Someportfolios
concentrateonJapan'slargercompanies,whileothers
concentrateonthenation'ssmallerfirms.Theseportfolios
least75%ofstockassetsinJapan.
JunkBond
AbondratedlowerthanBaa/BBB,alsocalleda"highyield"
bond.Junkbondsarespeculativecomparedwithinvestment
gradebonds.
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LargeBlend
Largeblendportfoliosarefairlyrepresentativeoftheoverall
U.S.stockmarketinsize,growthrates,andprice.Stocksin
thetop70%ofthecapitalizationoftheU.S.equitymarketare
definedaslargecap.Theblendstyleisassignedtoportfolios
whereneithergrowthnorvaluecharacteristicspredominate.
TheseportfoliostendtoinvestacrossthespectrumofU.S.
industries,andowingtotheirbroadexposure,theportfolios'
returnsareoftensimilartothoseoftheS&P500Index.
LargeCapStocks
Stocksofcompanieswithalargemarketcapitalization.Large
capstendtobewellestablishedcompanies,sotheirstocks
typicallyentaillessriskthansmallercaps,butlargecapsalso
offerlesspotentialfordramaticgrowth.
LargeCapitalization(Cap)
Areferencetoeitheralargecompanystockormutualfund
thatinvestsinthestocksoflargecompanies.Acompanyis
generallyconsideredtobealargecapitalizationstockwhenit
hasatotalvalueormarketcapitalization(dollarvalueof
outstandingshares)ofatleast$10billion.
LargeGrowth
LargegrowthportfoliosinvestprimarilyinbigU.S.companies
thatareprojectedtogrowfasterthanotherlargecapstocks.
Stocksinthetop70%ofthecapitalizationoftheU.S.equity
marketaredefinedaslargecap.Growthisdefinedbasedon
fastgrowth(highgrowthratesforearnings,sales,bookvalue,
andcashflow)andhighvaluations(highpriceratiosandlow
dividendyields).Mostoftheseportfoliosfocusoncompanies
inrapidlyexpandingindustries.
LargeValue
LargevalueportfoliosinvestprimarilyinbigU.S.companies
thatarelessexpensiveorgrowingmoreslowlythanother
largecapstocks.Stocksinthetop70%ofthecapitalizationof
theU.S.equitymarketaredefinedaslargecap.Valueis
definedbasedonlowvaluations(lowpriceratiosandhigh
dividendyields)andslowgrowth(lowgrowthratesfor
earnings,sales,bookvalue,andcashflow).
LatinAmericaStock
LatinAmericastockportfoliosinvestalmostexclusivelyin
stocksfromLatinAmerica.Mostoftheseportfoliosstrongly
favorthearea'slargemarkets,specificallyBrazil,Mexico,and
Argentina.SmallermarketssuchasPeruorColombiaaren't
generallyaswellrepresentedintheseportfolios.These
portfoliosinvestatleast70%oftotalassetsinequitiesand
investatleast75%ofstockassetsinLatinAmerica.
LeveragedNetLong
Leveragednetlongportfoliosseekincomebyestablishing
longandshortpositionsinsecurities.Themostcommon
strategyforleveragednetlongportfoliosistotakelong
positionsinsecuritiesthathavebeenidentifiedasattractive
andshortpositionsinsecuritiesthathavebeenidentifiedas
overvalued.Theseportfoliostypicallyholdlongpositionsin
securitieswithanaggregatevalueofupto130%ofitsnet
assets.Inaddition,theseportfolioswillestablishshort
positionsinsecuritieswithamarketvalueofupto30%ofits
netassets.Thenetlongexposurethereforeremains100%,
butitisaleveragedexposure.Thiscategoryisonlyusedin
Morningstar'scustomfundandseparateaccountdatabases.
LifecycleFund
Afunddesignedtoprovidevaryingdegreesoflongterm
appreciationandcapitalpreservationbasedonaninvestor's
ageortargetretirementdatethroughamixofassetclasses.
Themixchangesovertimetobecomelessfocusedongrowth
andmorefocusedonincome.Alsoknownasatargetdate
fund.
LifestyleFund
Afundthatisdesignedtomaintainapredeterminedrisklevel
andgenerallyuseswordssuchas"conservative,""moderate,"
or"aggressive"initsnametoindicatethefund'srisklevel.
Usedinterchangeablywith"targetriskfund.
Lipper
LipperAnalyticalServices,Inc.isanationallyrecognized
organizationthatreportsonmutualfundtotalreturn
performanceandcalculatesfundrankings.
LipperBalancedFundsAverage
LipperAnalytics,Inc.calculatespeeraveragesbasedon
universesoffundswiththesameinvestmentobjective.The
LipperBalancedFundsAverageiscomprisedoffundswhose
primaryobjectiveistoconserveprincipalbymaintainingatall
timesabalancedportfolioofbothstocksandbonds.Typically,
thestock/bondratiorangesaround60%/40%.
LipperCAMunicipalDebtFundsAverage
LipperCAMunicipalDebtFundsAverageiscomprisedof
fundsthatlimittheirassetstothosesecuritiesthatareexempt
fromtaxationinCalifornia(doubletaxexempt).
LipperCapitalAppreciationFundsAverage
LipperCapitalAppreciationFundsAverageiscomprisedof
fundsthataimatmaximumcapitalappreciation,frequentlyby
meansof100%ormoreportfolioturnover,leveraging,
purchasingunregisteredsecurities,purchasingoptions,etc.
Thesefundsmaytakelargecashpositions.
LipperConvertibleSecuritiesFundsAverage
LipperConvertibleSecuritiesFundsAverageiscomprisedof
fundsthatinvestprimarilyinconvertiblebondsand/or
convertiblepreferredstock.
LipperCorporateDebtFundsARatedAverage
TheLipperCorporateARatedFundsAveragereflectsthe
performanceofmutualfundswithsimilarobjectivestracked
byLipperInc.andexcludestheeffectofsalescharges.
LipperCorporateDebtFundsBBBRatedAverage
TheLipperCorporateBBBFundsAveragereflectsthe
LipperEmergingMarketsDebtFundsAverage
LipperEmergingMarketsDebtFundsAverageiscomprised
offundsthatseekeithercurrentincomeortotalreturnby
investingprimarilyinemergingmarketdebtsecurities,where
"emergingmarket"isdefinedbyacountry'sgrossnational
productpercapitaorothereconomicmeasures.
LipperEmergingMarketsFundsAverage
LipperEmergingMarketsFundsAverageiscomprisedof
fundsthatseeklongtermcapitalappreciationbyinvesting
primarilyinemergingmarketequitysecurities,where
"emergingmarket"isdefinedbyacountry'sgrossnational
productpercapitaorothereconomicmeasures.
LipperEquityIncomeFundsAverage
LipperEquityIncomeFundsAverageiscomprisedoffunds
thatseekrelativelyhighcurrentincomeandgrowthofincome
throughinvesting60%ormoreoftheirportfoliosinequities.
LipperEuropeanRegionFundsAverage
LipperEuropeanRegionFundsAverageiscomprisedof
fundsthatconcentratetheirinvestmentsinequitysecurities
whoseprimarytradingmarketsoroperationsare
concentratedintheEuropeanregionorinasinglecountry
withinthisregion.
LipperFlexiblePortfolioFundsAverage
LipperFlexiblePortfolioFundsAverageiscomprisedoffunds
thatallocatetheirinvestmentsacrossvariousassetclasses,
includingdomesticcommonstocks,bonds,andmoney
marketinstrumentswithafocusontotalreturn.
LipperFundsAverages
LipperAnalyticalServices,Inc.,isanationallyrecognized
organizationthatusesmutualfundtotalreturnperformanceto
calculateafund'srankingsagainstitspeeraverages,or
universesoffundswithsimilarinvestmentobjectives.
LipperGeneralBondFundsAverage
TheLipperGeneralBondFundsAveragereflectsthe
LipperGeneralMunicipalDebtFundsAverage
LipperGeneralMunicipalDebtFundsAverageiscomprised
offundsthatinvestprimarilyinmunicipaldebtissuesinthe
topfourcreditratings.
LipperGeneralU.S.GovernmentFundsAverage
LipperGeneralU.S.GovernmentFundsAverageis
comprisedoffundsthatinvestprimarilyinsecuritiesissuedby
U.S.governmentorU.S.governmentagencies.
LipperGeneralU.S.TreasuryFundsAverage
TheLipperGeneralU.S.TreasuryFundsAveragereflectsthe
LipperGlobalFundsAverage
LipperGlobalFundsAverageiscomprisedoffundsthat
investatleast25%oftheirportfoliosinsecuritiestraded
outsideoftheUnitedStatesandthatmayownU.S.securities
aswell.
LipperGlobalIncomeFundsAverage
TheLipperGlobalIncomeFundAverageisatotalreturn
performanceaverageoffundstrackedbyLipper,Inc.that
investprimarilyinU.S.dollarandnonU.S.dollardebt
securitiesofissuerslocatedinatleastthreecountries,oneof
whichmaybetheUnitedStates.Itdoesnotreflectdeductions
forfees,expensesortaxes.
LipperGlobalLargeCapGrowthFundsAverage
TheLipperGlobalLargeCapGrowthFundsAveragereflects
theperformanceofmutualfundswithsimilarportfolio
characteristicsandcapitalizationtrackedbyLipperInc.and
excludestheeffectofsalescharges.
LipperGlobalSmallCapFundsAverage
TheLipperGlobalSmallCapFundsAveragereflectsthe
performanceofmutualfundswithsimilarportfolio
LipperGNMAFundsAverage
LipperGNMAFundsAverageiscomprisedoffundsthat
investprimarilyinGovernmentNationalMortgageAssociation
securities.
LipperGrowth&IncomeFundsAverage
LipperGrowth&IncomeFundsAverageiscomprisedof
fundsthatcombineagrowthofearningsorientationandan
incomerequirementforleveland/orrisingdividends.
LipperGrowthFundsAverage
LipperGrowthFundsAverageiscomprisedoffundsthat
investincompanieswithlongtermearningsexpectedtogrow
significantlyfasterthantheearningsofthestocksrepresented
inthemajorunmanagedstockindices.
LipperHighCurrentYieldFundsAverage
LipperHighCurrentYieldFundsAverageiscomprisedof
fundsthatseekhigh(relative)currentyieldfromfixedincome
securities,havenoqualityormaturityrestrictions,andtendto
investinlowergradedebtsecurities.
LipperIncomeFundsAverage
LipperIncomeFundsAverageiscomprisedoffundsthat
normallyseekahighlevelofcurrentincomethroughinvesting
inincomeproducingstocks,bonds,andmoneymarket
instruments.
LipperIntermediateInvestmentGradeDebtFunds
Average
LipperIntermediateInvestmentGradeDebtFundsAverageis
comprisedoffundsthatinvestprimarilyininvestmentgrade
debtissues(ratedintopfourgrades)withdollarweighted
averagematuritiesof510years.
LipperIntermediateMunicipalDebtFundsAverage
LipperIntermediateMunicipalDebtFundsAverageis
comprisedoffundsthatinvestinmunicipaldebtissueswith
dollarweightedaveragematuritiesof510years.
LipperInternationalFundsAverage
LipperInternationalFundsAverageiscomprisedoffundsthat
investinsecuritieswithprimarytradingmarketsoutsideofthe
UnitedStates.
LipperInternationalIncomeFundsAverage
TheLipperIntlIncomeFundsAveragereflectsthe
LipperInternationalLargeCapGrowthFundsAverage
TheLipperInternationalLargeCapGrowthFundsAverage
reflectstheperformanceofmutualfundswithsimilarportfolio
LipperInternationalLargeCapValueFundsAverage
TheLipperInternationalLargeCapValueFundsAverage
LipperInternationalMultiCapCoreFundsAverage
TheLipperInternationalMultiCapCoreFundsAverage
LipperInternationalMultiCapValueFundsAverage
TheLipperInternationalMultiCapValueFundsAverage
LipperInternationalSmall/MidCapGrowthFunds
Average
TheLipperInternationalSmall/MidCapGrowthFunds
Averagereflectstheperformanceofmutualfundswithsimilar
objectivestrackedbyLipperInc.andexcludestheeffectof
salescharges.
LipperJapaneseFundsAverage
LipperJapaneseFundsAverageiscomprisedoffundsthat
concentratetheirinvestmentsinequitysecuritiesofJapanese
companies.
LipperLargeCapCoreFundsAverage
TheLipperLargeCapCoreFundsAveragereflectsthe
LipperLargeCapGrowthFundsAverage
TheLipperLargeCapGrowthFundsAveragereflectsthe
LipperLargeCapValueFundsAverage
TheLipperLargeCapValueFundsAveragereflectsthe
LipperLatinAmericanFundsAverage
TheLipperLatinAmericanFundsAveragereflectsthe
LipperMAMunicipalDebtFundsAverage
LipperMAMunicipalDebtFundsAverageiscomprisedof
fromtaxationinMassachusetts(doubletaxexempt).
LipperMidCapFundsAverage
LipperMidCapFundsAverageiscomprisedoffundsthat
investprimarilyincompanieswithmarketcapitalizationsless
than$5billionatthetimeofpurchase.
LipperMidCapCoreFundsAverage
TheLipperMidCapCoreFundsAveragereflectsthe
LipperMidCapGrowthFundsAverage
TheLipperMidCapGrowthFundsAveragereflectsthe
LipperMixedAssetTarget2010Average
TheLipperMixedAssetTarget2010Averagereflectsthe
LipperMoneyMarketInstrumentFundsAverage
Includesfundsthatinvestinhighqualityfinancialinstruments
ratedintoptwogradeswithdollarweightedaverage
maturitiesoflessthan90days.Intendtokeepconstantnet
assetvalue.
LipperMultiCapCoreFundsAverage
TheLipperMultiCapCoreFundsAveragereflectsthe
LipperMultiCapGrowthFundsAverage
TheLipperMultiCapGrowthFundsAveragereflectsthe
LipperMultiSectorIncomeFundsAverage
LipperMultiSectorIncomeFundsAverageiscomprisedof
fundsthatseekcurrentincomebyallocatingassetsamong
differentfixedincomesecuritiessectors(notprimarilyone
sectorexceptfordefensivepurposes)includingU.S.&foreign
governmentswithasignificantportionratedbelowinvestment
grade.
LipperNYMunicipalDebtFundsAverage
LipperNYMunicipalDebtFundsAverageiscomprisedof
fromtaxationinNewYork(doubletaxexempt).
LipperPacificexJapanFundsAverage
TheLipperPacificRegionexJapanFundsAveragereflects
theperformanceofmutualfundswithsimilarobjectives
trackedbyLipperInc.andexcludestheeffectofsales
charges.
LipperPacificRegionFundsAverage
LipperPacificRegionFundsAverageiscomprisedoffunds
thatconcentratetheirinvestmentsinequitysecuritieswith
primarytradingmarketsoroperationsconcentratedinthe
westernPacificBasinregionorasinglecountrywithinthis
region.
LipperRanking
FundrankingcalculatedquarterlyorannuallybyLipper
AnalyticalServices.Eachfundisrankedwithinauniverseof
fundssimilarininvestmentobjective.
LipperRealEstateFundsAverage
LipperRealEstateFundsAverageiscomprisedoffundsthat
investprimarilyinequitysecuritiesofdomesticandforeign
companiesengagedintherealestateindustry.
LipperS&P500IndexObjectiveFundsAverage
LipperS&P500IndexObjectiveFundsAverageis
comprisedofpassivelymanaged,limitedexpense
(managementfeenohigherthan0.50%)funddesignedto
replicatetheperformanceoftheStandard&Poor's500Index
onareinvestedbasis.
LipperShortInvestmentGradeDebtFunds
TheLipperShortInvestmentGradeFundsAveragereflects
theperformanceofmutualfundswithsimilarobjectives
trackedbyLipperInc.andexcludestheeffectofsales
charges.
LipperShortInvestmentGradeDebtFundsAverage
LipperShortInvestmentGradeDebtFundsAverageis
comprisedoffundsthatinvestprimarilyininvestmentgrade
debtissues(ratedintopfourgrades)withdollarweighted
averagematuritiesoflessthan1year.
LipperShortIntermediateInvestmentGradeDebtFunds
TheLipperShortIntermediateInvestmentGradeDebtFund
Averageisatotalreturnperformanceaverageoffunds
trackedbyLipper,Inc.thatinvestatleast65%oftheirassets
ininvestmentgradedebtissues(ratedinthetopfourgrades)
withdollarweightedaveragematuritiesofonetofiveyears.It
doesnotreflectdeductionsforfees,expensesortaxes.
Average
Averageiscomprisedoffundsthatinvestsprimarilyin
investmentgradedebtissues(ratedintopfourgrades)with
LipperShortIntermediateMunicipalDebtFundsAverage
LipperShortIntermediateMunicipalDebtFundsAverageis
comprisedoffundsthatinvestinmunicipaldebtissueswith
LipperShortIntermediateU.S.GovernmentFunds
Average
LipperShortIntermediateU.S.GovernmentFundsAverageis
comprisedoffundsthatinvestprimarilyinsecuritiesissuedor
guaranteedbytheU.S.government,itsagencies,orits
instrumentalities,withdollarweightedaveragesmaturitiesof
15years.
LipperSmallCapFundsAverage
LipperSmallCapFundsAverageiscomprisedoffundsthat
investprimarilyincompanieswithmarketcapitalizationsless
than$1billionatthetimeofpurchase.
LipperSmallCapCoreFundsAverage
TheLipperSmallCapCoreFundsAveragereflectsthe
LipperSmallCapGrowthFundsAverage
TheLipperSmallCapGrowthFundsAveragereflectsthe
LipperSmallCapValueFundsAverage
TheLipperSmallCapValueFundsAveragereflectsthe
LipperTelecommunicationFunds
TheLipperTelecommunicationFundsAveragereflectsthe
LipperTelecommunicationFundsAverage
TheLipperTelecommunicationFundsAveragereflectsthe
LipperU.S.GovernmentMoneyMarketFunds
TheLipperU.S.GovtMMFundsAveragereflectsthe
LipperU.S.GovernmentMoneyMarketFundsAverage
TheLipperU.S.GovtMMFundsAveragereflectsthe
LipperU.S.MortgageFundsAverage
TheLipperU.S.MortgageFundsAveragereflectsthe
LipperUltraShortObligationFunds
TheLipperUltraShortObligationFundsAveragereflectsthe
LipperUltraShortObligationFundsAverage
LipperUltraShortObligationFundsAverageiscomprisedof
fundsthatinvestprimarilyindebtissueswithratingsof
investmentgradeorbetter,andmaintainaportfoliodollar
weightedaveragematuritybetween91daysand365days.
Liquidity
Theabilitytobuyorsellanassetquicklyortheabilityto
converttocashquickly.
Load
Asaleschargeaddedtothepriceofthefundthatmustbe
paidatthetimeofpurchase.Mutualfundsthatdon'thaveany
saleschargesarecallednoloadfunds.Notallfundschargea
loadcheckamutualfund'sprospectusformoredetails.
LoadAdjustedReturn
Thesetotalreturnsrepresentthechangeinsharepriceand
includethereinvestmentofalldividendsandcapitalgains,if
any,andareadjusteddownwardtoaccountforsalescharges
andredemptionfees.Returnsarelistedforthetrailingone,
three,five,and10yearperiods.Forfundswithfrontend
loads,thefullamountoftheloadisdeducted.Fordeferredor
backendloads,thepercentagechargedoftendeclinesthe
longersharesareheld.Thischarge,oftencoupledwitha12b
1fee,usuallydisappearsentirelyafterseveralyears.Clickon
afundnameformoreinformation.
LongBond
The30yearbondisthelongestmaturityissuedbytheU.S.
Treasury.Itisalsothemostwidelytradedbond,notonlyin
theUnitedStatesbutworldwide.Becauseitissuchakey
security,themostrecentlyissued30yearTreasurybond,
knownasthe"longbond",isviewedasthebenchmark
againstwhichallotherbondsaremeasured.
LongGovernment
Longgovernmentportfolioshaveatleast90%oftheirbond
holdingsinvestedinbondsbackedbytheU.S.governmentor
bygovernmentlinkedagencies.Thisbackingminimizesthe
unlikelytodefaultonitsdebt.Theyarenotriskfree,though.
Becausetheseportfolioshavedurationsoftypicallymorethan
6.0years,theyaremoresensitivetointerestrates,andthus
riskier,thanportfoliosthathaveshorterdurations.Morningstar
calculatesmonthlybreakpointsusingtheeffectivedurationof
theMorningstarCoreBondIndexindeterminingduration
assignment.Longtermisdefinedas125%ofthethreeyear
averageeffectivedurationoftheMCBI.
LongShortEquity
Longshortportfoliosholdsizablestakesinbothlongand
shortpositionsinequitiesandrelatedderivatives.Somefunds
thatfallintothiscategorywillshifttheirexposuretolongand
shortpositionsdependingontheirmacrooutlookorthe
opportunitiestheyuncoverthroughbottomupresearch.Some
fundsmaysimplyhedgelongstockpositionsthrough
exchangetradedfundsorderivatives.Atleast75%ofthe
assetsareinequitysecuritiesorderivatives.
LongTermBond
Longtermbondportfoliosinvestprimarilyincorporateand
otherinvestmentgradeU.S.fixedincomeissuesandtypically
havedurationsofmorethan6.0years.Becauseoftheirlong
durations,theseportfoliosareexposedtogreaterinterestrate
risk.Morningstarcalculatesmonthlybreakpointsusingthe
effectivedurationoftheMorningstarCoreBondIndexin
determiningdurationassignment.Longtermisdefinedas
125%ofthethreeyearaverageeffectivedurationofthe
MCBI.
MajorMarketSectors
Fidelityusesthejointclassificationsystemdevelopedby
MorganStanleyCapitalInternationalandStandard&Poor's
(MSCI/S&P)incategorizingthemajormarketsectors.These
sectorsare:ConsumerDiscretionary,whichconsistsofAuto
PartsandEquipment,TiresandRubber,Automobile
Manufacturers,MotorcycleManufacturers,Consumer
Electronics,HomeFurnishings,Homebuilding,Household
Appliances,HousewaresandSpecialties,LeisureProducts,
PhotographicProducts,ApparelandAccessories,Footwear,
Textiles,CasinosandGambling,Hotels,LeisureFacilities,
Restaurants,Advertising,BroadcastingandCableTV,Movies
andEntertainment,PublishingandPrinting,Distributors,
CatalogRetail,InternetRetail,DepartmentStores,General
MerchandiseStores,ApparelRetail,Computerand
ElectronicsRetail,HomeImprovementRetail,andSpecialty
Stores.ConsumerStaples,whichconsistsofDrugRetail,
FoodDistributors,FoodRetail,Brewers,Distillersand
Vintners,SoftDrinks,AgriculturalProducts,Meat,Poultryand
Fish,PackagedGoods,Tobacco,HouseholdProducts,and
PersonalProducts.Energy,whichconsistsofOilandGas
Drilling,OilandGasEquipmentandServices,IntegratedOil
andGas,OilandGasExplorationandProduction,andOil
andGasRefiningandMarketing.Financials,whichconsistsof
Banks,ConsumerFinance,DiversifiedFinancialServices,
MultiSectorHoldings,InsuranceBrokers,LifeandHealth
Insurance,MultilineInsurance,PropertyandCasualty
Insurance,Reinsurance,RealEstateInvestmentTrusts
(REITS),andRealEstateManagementandDevelopment.
HealthCare,whichconsistsofHealthCareEquipment,
HealthCareSupplies,HealthCareDistributorsandServices,
HealthCareFacilities,ManagedHealthCare,Biotechnology,
andPharmaceuticals.Industrials,whichconsistsof
AerospaceandDefense,BuildingProducts,Constructionand
Engineering,ElectricalComponentsandEquipment,Heavy
ElectricalEquipment,IndustrialConglomerates,Construction
andFarmMachinery,IndustrialMachinery,Trading
CompaniesandDistributors,CommercialPrinting,Data
ProcessingServices,DiversifiedCommercialServices,
EmploymentServices,EnvironmentalServices,Office
ServicesandSupplies,AirFreightandCouriers,Airlines,
Marine,Railroads,Trucking,AirportServices,Highwayand
Railtracks,andMarinePortsandServices.Information
Technology,whichconsistsofInternetSoftwareandServices,
ITConsultingandServices,ApplicationSoftware,Systems
Software,NetworkingEquipment,Telecommunication
Equipment,ComputerHardware,ComputerStorageand
Peripherals,ElectronicEquipmentandInstruments,Office
Electronics,SemiconductorEquipment,andSemiconductors.
Materials,whichconsistsofCommodityChemicals,
DiversifiedChemicals,FertilizersandAgriculturalChemicals,
IndustrialGases,SpecialtyChemicals,Construction
Materials,MetalandGlassContainers,PaperPackaging,
Aluminum,DiversifiedMetalsandMining,Gold,Precious
MetalsandMinerals,Steel,ForestProducts,andPaper
Products.TelecommunicationServices,whichconsistsof
AlternativeCarriers,IntegratedTelecommunicationServices,
andWirelessTelecommunicationServices.Utilities,which
consistsofElectricUtilities,GasUtilities,MultiUtilities,and
WaterUtilities.
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M
ManagedFutures
Thesefundsprimarilytradeliquidglobalfutures,options,
swaps,andforeignexchangecontracts,bothlistedandover
thecounter.Amajorityofthesefundsfollowtrendfollowing,
pricemomentumstrategies.Otherstrategiesincludedinthis
categoryaresystematicmeanreversion,discretionaryglobal
macrostrategies,commodityindextracking,andotherfutures
strategies.Morethan60%ofthefund'sexposureisinvested
throughderivativesecurities.Thesefundsobtainexposure
primarilythroughderivativestheholdingsarelargelycash
instruments.
ManagementFee
Afeepaidtoaninvestmentmanageroradvisorforits
managementservices.Amutualfund'smanagementfeewill
beincludedinthetotalannualoperatingexpensesand
disclosedintheFeeTableofthefund'sprospectus.
ManagerTenure
Durationoftheportfoliomanager'semploymentmanaginga
givenfundorinvestmentoption.
Market
Anorderpricetypeplacedontheexecutionofanorder.A
marketorderrequiresthatthebestpriceinthecurrentmarket
atthetimeyourorderexecutesisusedtobuyorsella
security.
MarketCapitalizationorMarketCap
Thetotalmarketvalueofacompany'soutstandingsecurities,
excludingcurrentliabilities.
MarketNeutral
Thesefundsattempttoreducesystematicriskcreatedby
factorssuchasexposurestosectors,marketcapranges,
investmentstyles,currencies,and/orcountries.Theytryto
achievethisbymatchingshortpositionswithineacharea
againstlongpositions.Thesestrategiesareoftenmanaged
asbetaneutral,dollarneutral,orsectorneutral.A
distinguishingfeatureoffundsinthiscategoryisthatthey
typicallyhavelowbetaexposures(<0.3inabsolutevalue)to
marketindexessuchasMSCIWorld.Inattemptingtoreduce
systematicrisk,thesefundsputtheemphasisonissue
selection,withprofitsdependentontheirabilitytosellshort
andbuylongthecorrectsecurities.
MarketPrice
Lastreportedpriceatwhichasecuritywassoldonan
exchange.
MarketRisk
Theriskthatthepriceofasecuritywillriseorfalldueto
changingeconomic,political,ormarketconditions,orduetoa
company'sindividualsituation.
MaturityDistribution
Maturityreferstothelengthoftimeuntilthedateuponwhich
abond'sprincipalmustberepaid,alsoknownasthematurity
date.Forfixedincomemutualfunds,maturitydistribution
showstherelativeweightingofsecuritiesofspecificmaturities
withintheportfolio.
MaturityorMaturityDate
Thedateonwhichtheprincipalamountofaloan,bond,or
anyotherdebtbecomesdueandistobepaidinfull.
MidCapBlend
ThetypicalmidcapblendportfolioinvestsinU.S.stocksof
varioussizesandstyles,givingitamiddleoftheroadprofile.
Mostshyawayfromhighpricedgrowthstocksbutaren'tso
priceconsciousthattheylandinvalueterritory.TheU.S.mid
caprangeformarketcapitalizationtypicallyfallsbetween$1
billionand$8billionandrepresents20%ofthetotal
capitalizationoftheU.S.equitymarket.Theblendstyleis
assignedtoportfolioswhereneithergrowthnorvalue
characteristicspredominate.
MidCapGrowth
Somemidcapgrowthportfoliosinvestinstocksofallsizes,
thusleadingtoamidcapprofile,butothersfocusonmidsize
companies.MidcapgrowthportfoliostargetU.S.firmsthat
areprojectedtogrowfasterthanothermidcapstocks,
thereforecommandingrelativelyhigherprices.TheU.S.mid
caprangeformarketcapitalizationtypicallyfallsbetween$1
billionand$8billionandrepresents20%ofthetotal
capitalizationoftheU.S.equitymarket.Growthisdefined
basedonfastgrowth(highgrowthratesforearnings,sales,
bookvalue,andcashflow)andhighvaluations(highprice
ratiosandlowdividendyields).
MidcapStocks
Aninvestmentcategorizationbasedonthemarket
capitalizationofacompany.
MidCapValue
Somemidcapvalueportfoliosfocusonmediumsize
companieswhileotherslandherebecausetheyownamixof
small,mid,andlargecapstocks.AlllookforU.S.stocksthat
arelessexpensiveorgrowingmoreslowlythanthemarket.
TheU.S.midcaprangeformarketcapitalizationtypicallyfalls
between$1billionand$8billionandrepresents20%ofthe
totalcapitalizationoftheU.S.equitymarket.Valueisdefined
basedonlowvaluations(lowpriceratiosandhighdividend
yields)andslowgrowth(lowgrowthratesforearnings,sales,
bookvalue,andcashflow).
MidCapitalization(Cap)
Areferencetoeitheramediumsizedcompanystockor
mutualfundthatinvestsinthestocksofmediumsized
companies.Acompanyisgenerallyconsideredtobe
mediumsizedoramidcapcompanywhenithasmarket
capitalization(dollarvalueofoutstandingshares)between$2
billionand$10billion.
MILRate
Anexpressionofthedailyrateofpershareincomeearnedin
abondormoneymarketfund.
MinimumGuaranteedRate
Thelowestrateofreturnpaidoutbyanannuity.Thisrateis
statedintheannuitycontract.
MiscellaneousSector
Miscellaneoussectorportfoliosinvestinspecificsectorsthat
donotfitintoanyofMorningstar'sexistingsectorcategories
andforwhichnotenoughfundsexisttomeritthecreationofa
separatecategory.
ModerateAllocation
Moderateallocationportfoliosseektoprovidebothcapital
stocks,bonds,andcash.Theseportfoliostendtoholdlarger
positionsinstocksthanconservativeallocationportfolios.
Theseportfoliostypicallyhave50%to70%ofassetsin
equitiesandtheremainderinfixedincomeandcash.
MoneyManagerallocation
TheStrategicAdvisersMultiManagerFundscanengageboth
FidelityandnonFidelitymanagersassubadvisers,aswellas
investinFidelityfunds,thirdpartymutualfunds,and
exchangetradedfunds(ETFs).Subadvisersareprofessional
moneymanagersselectedbySAItomanageaportionofthe
mutualfund'sassetsconsistentwithaspecificinvestment
mandateorareaofexpertise.Thesubadvisersmakethe
daytodayinvestmentdecisionsfortheportionofthefund
theymanage.
MoneyMarketFund
Amutualfundthatprimarilyinvestsinshortterm,highgrade
fixedincomesecurities,suchasTreasurybills,bank
certificatesofdeposit,andcommercialpaper,andseeksthe
highestlevelofincomeconsistentwithpreservationofcapital
(i.e.,maintainingastableshareprice).Youcouldlosemoney
byinvestinginamoneymarketfund.Althoughthefundseeks
topreservethevalueofyourinvestmentat$1.00pershare,it
cannotguaranteeitwilldoso.Aninvestmentinthefundisnot
insuredorguaranteedbytheFederalDepositInsurance
Corporationoranyothergovernmentagency.Fidelity
Investmentsanditsaffiliates,thefundssponsor,haveno
legalobligationtoprovidefinancialsupporttomoneymarket
fundsandyoushouldnotexpectthatthesponsorwillprovide
financialsupporttothefundatanytime.
MorningstarCategory
Inanefforttodistinguishfundsbywhattheyown,aswellas
bytheirprospectusobjectivesandstyles,Morningstar
developedtheMorningstarCategories.Whiletheprospectus
objectiveidentifiesafund'sinvestmentgoalsbasedonthe
wordinginthefundprospectus,theMorningstarCategory
classifiesfundsbasedontheirinvestmentstylesasmeasured
bytheirunderlyingportfolioholdings(portfoliostatisticsand
compositionsoverthepastthreeyears).Ifthefundisnew
andhasnoportfolio,Morningstarestimateswhereitwillfall
beforeassigningamorepermanentcategory.When
necessary,Morningstarmaychangeacategoryassignment
basedoncurrentinformation.
MorningstarCategoryAverage
MorningstarCategoryclassifiesfundsbasedontheir
investmentstylesasmeasuredbytheirholdings.
Measurementssuchasreturns,risk,andexpensesare
groupedbycategory,withthemeanforeachmeasurement
servingastheaverage.
MorningstarOverallRatings
TheoverallMorningstarRatingTMforafundisderivedfroma
weightedaverageoftheperformancefiguresassociatedwith
itsthree,five,andtenyear(ifapplicable)MorningstarRating
metrics.Foreachfundwithatleastathreeyearhistory,
MorningstarcalculatesaMorningstarRating(basedona
MorningstarRiskAdjustedReturnmeasurethataccountsfor
variationinafundsmonthlyperformance(includingtheeffects
ofsalescharges,loadsandredemptionfees),placingmore
emphasisondownwardvariationsandrewardingconsistent
performance.Morningstardistributesthestarsaccordingly:"
Thetop10%offundsineachcategoryreceive5stars"the
next22.5%receive4stars"thenext35%receive3stars"
thenext22.5%receive2stars"thebottom10%receive1
starEachshareclassiscountedasafractionofonefund
withinthisscaleandratedseparately,whichmaycauseslight
variationsinthedistributionpercentages.
MorningstarReturn
TheMorningstarReturnfigureratesafund'sperformance
relativetootherfundsinitsinvestmentcategory.After
adjustingformaximumfrontendloads,applicablebackend
loads,andapplicableredemptionfees,Morningstarcalculates
theexcessreturnforeachfund,definedasthefund'sload
adjustedreturnminusthereturnfor90dayTBillsoverthe
sameperiod.Theuseofexcessinsteadofrawreturns
reflectsourbeliefthatmutualfundsshouldberatedhighlyfor
onlythosereturnsearnedbeyondthoseofaTBill,whichis
essentiallyariskfreeinvestment.Theexcessreturnsarethen
comparedwiththehigheroftheaverageexcessreturnofthe
fund'sbroadinvestmentcategoryorthe90dayTBillreturn.
Thislastadjustmentpreventsdistortionscausedbyhaving
lowornegativeaverageexcessreturnsintheequation's
denominator,asmightoccurduringaprotracteddownmarket.
Thereturnandriskassessmentsarebasedonafund's
historicalperformancerelativetootherfundsinoneoffour
broadinvestmentcategories(domesticequity,international
equity,taxablebond,ormunicipalbond).It'simportantto
realizethatinformationishistoricalandpurelyquantitative.
TheassessmentsdonotreflectMorningstar'sopinionofthe
futurepotentialofthefundtheyonlygiveaquicksummaryof
howafundhasperformedhistoricallyrelativetoitspeers.
MorningstarRisk
TheMorningstarRiskstatisticevaluatesthefund'sdownside
volatilityrelativetothatofotherfundsinitsbroadinvestment
category.Morningstarusesaproprietaryriskmeasurethat
operatesdifferentlyfromtraditionalriskmeasures,suchas
betaandstandarddeviation,whichseebothgreaterandless
thanexpectedreturnsasaddedvolatility.Morningstar
believesthatmostinvestors'greatestfearislosingmoney,
definedasunderperformingtheriskfreerateofreturnan
investorcanearnfromthe90dayTreasurybill,soitsrisk
measurefocusesonlyonthatdownsiderisk.Tocalculatethe
riskscore,Morningstarplotsmonthlyfundreturnsinrelation
toTBillreturns.TheamountsbywhichthefundtrailstheT
Billreturnisaddedeachmonthandthattotalisdividedbythe
period'stotalnumberofmonths.Thisnumber,theaverage
monthlyunderperformancestatistic,isthencomparedwith
thoseofotherfundsinthesamebroadinvestmentcategoryto
assignariskscore.Theresultingriskscoreexpresseshow
riskythefundisrelativetotheaveragefundinitscategory.
NotethatMorningstardoesnotrateanyfundthathasless
thanthreeyearsofperformancedata.
Morningstar,Inc.
Aleadingmutualfundresearchandtrackingfirm.
MortgageBackedSecurities(MBS)
Securitiesbackedbymortgages.Suchcertificatesareissued
bytheFederalHomeLoanMortgageCorporation,andthe
FederalNationalMortgageAssociation.Othersare
guaranteedbytheGovernmentNationalMortgage
Association.Investorsreceivepaymentsoutoftheinterest
andprincipleontheunderlyingmortgages.Sometimesbanks
issuecertificatesbackedbyconventionalmortgages,selling
themtolargeinstitutionalinvestors.Thegrowthofmortgage
backedcertificatesandthesecondarymortgagemarketin
whichtheyaretradedhashelpedkeepmortgagemoney
availableforhomefinancing.
MovingAverages
Anindicatorfrequentlyusedintechnicalanalysisshowingthe
averagevalueofasecurity'spriceoverasetperiod.Moving
averagesaregenerallyusedtomeasuremomentumand
defineareasofpossiblesupportandresistance.
Multialternative
Thesefundsofferinvestorsexposuretoseveraldifferent
alternativeinvestmenttactics.Fundsinthiscategoryhavea
majorityoftheirassetsexposedtoalternativestrategies.An
investor'sexposuretodifferenttacticsmaychangeslightly
overtimeinresponsetomarketmovements.Fundsinthis
categoryincludebothfundswithstaticallocationsto
alternativestrategiesandfundstacticallyallocatingamong
alternativestrategiesandassetclasses.Thegrossshort
exposureisgreaterthan20%.
MultisectorBond
Multisectorbondportfoliosseekincomebydiversifyingtheir
assetsamongseveralfixedincomesectors,usuallyU.S.
governmentobligations,U.S.corporatebonds,foreignbonds,
andhighyieldU.S.debtsecurities.Theseportfoliostypically
hold35%to65%ofbondassetsinsecuritiesthatarenot
ratedorareratedbyamajoragencysuchasStandard&
Poor'sorMoody'satthelevelofBB(consideredspeculative
fortaxablebonds)andbelow.
MuniCaliforniaIntermediate
MuniCaliforniaintermediateportfoliosinvestatleast80%of
assetsinCaliforniamunicipaldebt.Becausetheincomefrom
thesebondsisgenerallyfreefromfederaltaxesandCalifornia
statetaxes,theseportfoliosaremostappealingtoresidentsof
California.Theseportfolioshavedurationsof4.5to7.0years
(or,ifdurationisunavailable,averagematuritiesoffiveto12
years).
MuniCaliforniaLong
MuniCalifornialongportfoliosinvestatleast80%ofassetsin
Californiamunicipaldebt.Becausetheincomefromthese
bondsisgenerallyfreefromfederaltaxesandCaliforniastate
taxes,theseportfoliosaremostappealingtoresidentsof
California.Theseportfolioshavedurationsofmorethan7.0
years(or,ifdurationisunavailable,averagematuritiesof
morethan12years).
MuniMassachusetts
MuniMassachusettsportfoliosinvestatleast80%ofassetsin
Massachusettsmunicipaldebtandcanincludelong,
intermediate,andshortdurationportfolios.Becausethe
incomefromthesebondsisgenerallyfreefromfederaltaxes
andMassachusettsstatetaxes,theseportfoliosaremost
appealingtoresidentsofMassachusetts.
MuniMinnesota
MuniMinnesotaportfoliosinvestatleast80%ofassetsin
Minnesotamunicipaldebtandcanincludelong,
andMinnesotastatetaxes,theseportfoliosaremost
appealingtoresidentsofMinnesota.
MuniNationalIntermediate
Muninationalintermediateportfoliosinvestinbondsissuedby
variousstateandlocalgovernmentstofundpublicprojects.
Theincomefromthesebondsisgenerallyfreefromfederal
taxes.Tolowerrisk,theseportfoliosspreadtheirassets
acrossmanystatesandsectors.Theseportfolioshave
durationsof4.5to7.0years(or,ifdurationisunavailable,
averagematuritiesoffiveto12years).
MuniNationalLong
Muninationallongportfoliosinvestinbondsissuedbyvarious
stateandlocalgovernmentstofundpublicprojects.The
incomefromthesebondsisgenerallyfreefromfederaltaxes.
Tolowerrisk,theseportfoliosspreadtheirassetsacross
manystatesandsectors.Theseportfolioshavedurationsof
morethan7.0years(or,ifdurationisunavailable,average
maturitiesofmorethan12years).
MuniNationalShort
Muninationalshortportfoliosinvestinbondsissuedbystate
andlocalgovernmentstofundpublicprojects.Theincome
fromthesebondsisgenerallyfreefromfederaltaxesand/or
fromstatetaxesintheissuingstate.Tolowerrisk,someof
theseportfoliosspreadtheirassetsacrossmanystatesand
sectors.Otherportfoliosbuybondsfromonlyonestatein
ordertogetthestatetaxbenefit.Theseportfolioshave
durationsoflessthan4.5years(or,ifdurationisunavailable,
averagematuritiesoflessthanfiveyears).
MuniNewJersey
MuniNewJerseyportfoliosinvestatleast80%ofassetsin
NewJerseymunicipaldebtandcanincludelong,
andNewJerseystatetaxes,theseportfoliosaremost
appealingtoresidentsofNewJersey.
MuniNewYorkIntermediate
MuniNewYorkintermediateportfoliosinvestatleast80%of
assetsinNewYorkmunicipaldebt.Becausetheincomefrom
thesebondsisgenerallyfreefromfederaltaxesandNewYork
statetaxes,theseportfoliosaremostappealingtoresidentsof
NewYork.Theseportfolioshavedurationsof4.5to7.0years
(or,ifdurationisunavailable,averagematuritiesoffiveto12
years).
MuniNewYorkLong
MuniNewYorklongportfoliosinvestatleast80%ofassetsin
NewYorkmunicipaldebt.Becausetheincomefromthese
bondsisgenerallyfreefromfederaltaxesandNewYorkstate
taxes,theseportfoliosaremostappealingtoresidentsofNew
York.Theseportfolioshavedurationsofmorethan7.0years
(or,ifdurationisunavailable,averagematuritiesofmorethan
12years).
MuniOhio
MuniOhioportfoliosinvestatleast80%ofassetsinOhio
municipaldebtandcanincludelong,intermediate,and
shortdurationportfolios.Becausetheincomefromthese
bondsisgenerallyfreefromfederaltaxesandOhiostate
taxes,theseportfoliosaremostappealingtoresidentsof
Ohio.
MuniPennsylvania
MuniPennsylvaniaportfoliosinvestatleast80%ofassetsin
Pennsylvaniamunicipaldebtandcanincludelong,
andPennsylvaniastatetaxes,theseportfoliosaremost
appealingtoresidentsofPennsylvania.
MuniSingleStateIntermediate
Munisinglestateintermediateportfoliosinvestinbonds
issuedbystateandlocalgovernmentstofundpublicprojects.
Theincomefromsuchbondsisgenerallyfreefromfederal
taxesandfromstatetaxesintheissuingstate.Togetthe
statetaxbenefit,theseportfoliosbuybondsfromonlyone
state.Theseportfolioshavedurationsof4.5to7.0years(or,if
durationisunavailable,averagematuritiesoffiveto12years).
MuniSingleStateLong
Munisinglestatelongportfoliosinvestinbondsissuedby
incomefromsuchbondsisgenerallyfreefromfederaltaxes
andfromstatetaxesintheissuingstate.Togetthestatetax
benefit,theseportfoliosbuybondsfromonlyonestate.These
portfolioshavedurationsofmorethan7.0years(or,if
durationisunavailable,averagematuritiesofmorethan12
years).
MuniSingleStateShort
Munisinglestateshortportfoliosinvestinbondsissuedby
incomefromsuchbondsisgenerallyfreefromfederaltaxes
andfromstatetaxesintheissuingstate.Togetthestatetax
benefit,theseportfoliosbuybondsfromonlyonestate.These
portfolioshavedurationsoflessthan4.5years(or,ifduration
isunavailable,averagematuritiesoflessthanfiveyears).
MunicipalSecurities
Ageneraltermreferringtosecuritiesissuedbylocal
governmentalsubdivisionssuchascities,towns,villages,
countiesorspecialdistricts,aswellassecuritiesissuedby
statesandpoliticalsubdivisionsoragenciesofstates.Aprime
featureofthesesecuritiesisthatinterestonthemisgenerally
exemptfromfederalincometaxesand,insomecases,state
andlocaltaxestoo.
MutualFund
Aninvestmentthatpoolsinvestors'moneyandinvestsitwith
aspecificobjectiveinmind.Investorsdonotownthe
securitiespurchasedbythefund.Instead,theyownsharesin
thefund.
MutualFundSharePrice
Thedollarvalueofoneshareofaninvestmentinamutual
fund.
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NaturalResources
Naturalresourcesportfoliosfocusoncommoditybased
industriessuchasenergy,chemicals,minerals,andforest
productsintheUnitedStatesoroutsideoftheUnitedStates.
Someportfoliosinvestacrossthisspectrumtoofferbroad
naturalresourcesexposure.Othersconcentrateheavilyor
evenexclusivelyinspecificindustries.Portfoliosthat
concentrateprimarilyinenergyrelatedindustriesarepartof
theequityenergycategory.
NAVChange
Thedifferencebetweentoday'sclosingnetassetvalue(NAV)
andthepreviousday'sclosingnetassetvalue(NAV).
NAVChange%
Thepercentagechangebetweenmutualfund'scurrentand
previousday'sclosingnetassetvalue(NAV).
NetAssetValue(NAV)
Thedollarvalueofonemutualfund'share,excludingany
saleschargesorredemptionfees.TheNAViscalculatedby
subtractingliabilitiesfromthevalueofafund'stotalassets
anddividingitbythenumberoffund'sharesoutstanding.
NetAssets
Differencebetweenacompany'stotalassetsandliabilities.
NetUnrealizedAppreciation(NUA)
Thereferencetospecialtaxtreatmentthatisavailableto
participantswhoownemployersecuritiesinaqualified
retirementplanifcertainrequirementsaremet.
NetYield
Rateofreturnonasecuritynetofoutofpocketcosts
associatedwithitspurchase,suchascommissionsor
markups.
NewYorkStockExchange(NYSE)
ThelargeststockexchangeintheUnitedStates.Itisa
corporation,operatedbyaboardofdirectors,anditis
responsibleforsettingpolicy,supervisingExchangeand
memberactivities,listingsecurities,overseeingthetransferof
members'seatsontheExchangeandjudgingwhetheran
applicantisqualifiedtobeaspecialist.
NominalYield(CouponYield)
Thestatedinterestratepaidonabond,computedbydividing
theamountofannualincomebythebond'sparvalue.
NonLoadAdj.Returns
any,butdonotincludetheeffectofsaleschargesand
redemptionfees.Ifthesefeeswereincluded,thereturns
wouldbelower.Eachfund'ssharepriceandreturnwillvary
andshares,whenredeemed,maybeworthmoreorlessthan
theiroriginalcost.Clickonthefundnameformore
information."YRedundant.
NonLoadAdjustedReturns
any,butdonotincludetheeffectofsaleschargesand
redemptionfees.Ifthesefeeswereincluded,thereturns
wouldbelower.Returnsarelistedforthetrailingone,three,
five,and10yearperiods.Forfundsthatlacka10year
history,Morningstarprovidesanannualizednonload
adjustedreturnfigurefortheperiodsincethefund'sinception.
Eachfund'ssharepriceandreturnwillvaryandshares,when
redeemed,maybeworthmoreorlessthantheiroriginalcost.
Clickonthefundnameformoreinformation.NoteAdebt
obligationsimilartoabond,butwithamaturitydatelessthan
fiveyearsfromdateofissue.
NontraditionalBond
TheNontraditionalBondcategorycontainsfundsthatpursue
strategiesdivergentinoneormorewaysfromconventional
practiceinthebroaderbondfunduniverse.Manyfundsinthis
groupdescribethemselvesas"absolutereturn"portfolios,
whichseektoavoidlossesandproducereturnsuncorrelated
withtheoverallbondmarkettheyemployavarietyof
methodstoachievethoseaims.Anotherlargesubsetareself
described"unconstrained"portfoliosthathavemoreflexibility
toinvesttacticallyacrossawideswathofindividualsectors,
includinghighyieldandforeigndebt,andtypicallywithvery
largeallocations.Fundsinthelattergrouptypicallyhave
broadfreedomtomanageinterestratesensitivity,butattempt
totacticallymanagethoseexposuresinordertominimize
volatility.Thecategoryisalsohometoasubsetofportfolios
thatattempttominimizevolatilitybymaintainingshortorultra
shortdurationportfolios,butexplicitlycourtsignificantcredit
andforeignbondmarketriskinordertogeneratehighreturns.
Fundswithinthiscategoryoftenwillusecreditdefaultswaps
andotherfixedincomederivativestoasignificantlevelwithin
theirportfolios.
Note
Adebtobligationsimilartoabond,butwithamaturitydate
lessthanfiveyearsfromdateofissue.
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OfferPrice
Thelowestpricethataselleriswillingtoacceptfroma
prospectivebuyer.Inthecaseofamutualfundwithasales
charge,thispriceisthenetassetvalue(NAV)plusthesales
charge.Inthecaseofnoloadfunds,itistheNAV.
OfferingDate
Thedateonwhichadistributionofstocksorbondswillfirstbe
availabletothepublic.
OpportunityRisk
Theriskthatabetteropportunitymaypresentitselfafteryou
havealreadycommittedyourmoneyelsewhere.
OptionAdjustedDuration
Optionadjusteddurationestimateshowmuchabond'sprice
fluctuateswithchangesincomparableinterestrates.Ifrates
rise1.00%,forexample,afundwitha5yeardurationislikely
toloseabout5.00%ofitsvalue.Otherfactorsalsocan
influenceabondfund'sperformanceandshareprice.Abond
fund'sactualperformancemaydiffer.Source:FMRCo".
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Pacific/AsiaexJapanStock
Pacific/AsiaexJapanstockportfolioscoverawide
geographicrange.Mostoftheseportfoliosfocusonexport
orientednationssuchasHongKong,Singapore,Taiwan,and
Korea.Theseportfoliosinvestatleast70%oftotalassetsin
equitiesandinvestatleast75%ofstockassetsinPacific
countries,withlessthan10%inJapan.
Paper
Anyshorttermdebtsecurity.
Par
Thenominalorfacevalueofasecurityasgivenonthe
certificateorinstrument.Theparvalueistheamounton
whichinterestpaymentsarecalculated.
PassiveManagement
Theprocessorapproachtooperatingormanagingafundina
passiveornonactivemannertypicallywiththegoalof
mirroringanindex.Thesefundsareoftenreferredtoasindex
fundsanddifferfrommutualfundsthatareactivelymanaged.
PayoutAnnuity
Whentheassetsinataxdeferredannuityareconvertedinto
aguaranteedlifetimeincome,anannuitycontractbecomesa
payoutannuity.Thisisalsoknownasassetbecoming
"annuitized.
Performance
Theresultsofaninvestmentoveraperiodoftime.
Portfolio
Acollectionofinvestmentssuchasstocksandbondsthatare
ownedbyanindividual,organizationorinvestmentfund.
PortfolioData
ForEquityFunds,turnoverrateisameasureofthefund's
tradingactivitycalculatedbydividingtotalpurchasesorsales
ofportfoliosecurities(whicheverislower)bythefund'snet
assets.Forthefixedincomeinvestments,durationestimates
howmuchabondfund'spricewillchangewithachangein
comparableinterestratesWeightedaveragematurityisa
weightedaverageofallthematuritiesofthesecuritiesheldin
afund.WAMcanbeusedasameasureofsensitivityto
interestratechangesandmarketschanges.Formoney
marketfunds,weightedaveragelifeistheweightedaverage
ofthelifeofthesecuritiesheldinafundorportfolioandcan
beusedasameasureofsensitivitytochangesinliquidity
and/orcreditrisk.Generally,thehigherthevalue,thegreater
thesensitivity.
PortfolioDiversification
Themakeupofafund'sportfolioexpressedintermsofasset
allocationandindustryandsectordiversification.
PortfolioTurnoverRate
Ameasureofhowfrequentlyinvestmentsareboughtandsold
withinaninvestmentoptionoveraperiodoftime,typicallyone
year.Theportfolioturnoverrateisusuallyexpressedasa
percentageofthetotalvalueofaninvestmentoption.
PortfolioWeight
Thepercentageofaspecificsecurityorassettypethatis
containedinamutualfund.
Premium
Theamountbywhichabondsellsaboveitspar(face)value.
PresentValue
Thevalueatthecurrenttimeofacashpaymentwhichis
expectedtobereceivedinthefuture,discountedtoreflectthe
factthatanamountreceivedtodaycouldbeinvestedtoearn
interestfortheperiodtothefuturedate.
Price/Book
Theratioofacompany'scurrentsharepricetoreported
accumulatedprofitsandcapital.
Price/CashFlow
Theratioofacompany'scurrentsharepricetoreportedcash
flow.
PrimaryMarket(NewIssueMarket)
Themarketonwhichnewlyissuedsecuritiesaresold,
includinggovernmentsecurityauctionsandunderwriting
purchasesofblocksofnewissues,whicharethenresold.
Principal
Theoriginaldollaramountofaninvestment.Principalmay
alsobeusedtorefertothefacevalueororiginalamountofa
bond.
Prospectus
Theofficialdocumentthatdescribesaninvestmentto
prospectiveinvestors.Theprospectuscontainsinformation
requiredbytheSEC,suchasinvestmentobjectivesand
policies,risks,services,andfees.
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QuantitativeFunds
Mutualfundswhoseportfoliomanagementdecisionsare
basedonquantitativeanalysis,whichisusuallydeveloped
usingcomputerizedstatisticalmodelsofmarketbehavior.
QuarterEndAverageAnnualTotalReturns
QuarterendAverageannualtotalreturnisarateofreturnon
aquarterlybasisthat,ifachievedannually,wouldhave
producedthesamecumulativetotalreturnifperformancehad
beenconstantovertheentireperiod.Averageannualtotal
returnssmoothoutvariationinperformancetheyarenotthe
sameasactualyearbyyearresults.
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R2
Ameasurementofhowcloselytheportfolio'sperformance
correlateswiththeperformanceofabenchmarkindex,such
astheS&P500.R2isaproportionwhichrangesbetween
0.00and1.00.AnR2of1.00indicatesperfectcorrelationto
thebenchmarkindex,thatis,alloftheportfolio'sfluctuations
areexplainedbyperformancefluctuationsoftheindex,while
anR2of0.00indicatesnocorrelation.Therefore,thelower
theR2,themorethefund'sperformanceisaffectedbyfactors
otherthanthemarketasmeasuredbythatbenchmarkindex.
RateInformation
Displayspaymentdataforanannuity,includingthecurrent
andguaranteedpaymentrateandtheperiodoftimethatthe
issuingcompanyagreestomakepayments.
RateofReturn
Thegainorlossonaninvestmentoveraperiodoftime.The
rateofreturnistypicallyreportedonanannualbasisand
expressedasapercentage.
Ratings
Designationsusedbyinvestors'servicestogiverelative
indicationsofcreditquality.
RealEstate
Realestateportfoliosinvestprimarilyinrealestateinvestment
trustsofvarioustypes.REITsarecompaniesthatdevelopand
managerealestateproperties.Thereareseveraldifferent
typesofREITs,includingapartment,factoryoutlet,health
care,hotel,industrial,mortgage,office,andshoppingcenter
REITs.Someportfoliosinthiscategoryalsoinvestinreal
estateoperatingcompanies.
RealEstateInvestmentTrustREIT
Acompany,usuallytradedpublicly,thatmanagesaportfolio
forrealestatetoearnprofitsforshareholders.
RealRateofReturn
Rateofreturnonaninvestmentadjustedforinflation.
Rebalance
Theprocessofmovingmoneyfromonetypeofinvestmentto
anothertomaintainadesiredassetallocation.
Redemption
Tosellfundsharesbacktothefund.Redemptioncanalso
meantherepaymentofabondonorbeforetheagreedupon
payoffdate.
RedemptionFee
SeeShortTermRedemptionFee.
RegionalDiversification
Holdingsarepresentedtoillustrateexamplesofthecountries
orregionswhichthefundmayinvest,andmaynotbe
representativeofthefund'scurrentorfutureinvestments.
Percentagesaredisplayedforthetopsectorsasofthe
countriesorregionsasofthedatestated.Percentagesshown
describetheportionofthefund'stotalnetassets,unless
otherwisestated.
Reinvesting
Usinganydividends,interestandcapitalgainsearnedinan
investmentormutualfundtopurchaseadditionalsharesor
units.
ReinvestmentPrice
Thepriceatwhichadditionalsharesofafundarepurchased
usingtheproceedsofmoneydistributedbythatfund,usually
intheformofcapitalgainsordividends.
RelativeVolatility
Aratioofaportfolio'sstandarddeviationtothestandard
deviationofabenchmarkindex..
RetirementIncome
Retirementincomeportfoliosprovideamixofstocks,bonds,
andcashforthoseinvestorsalreadyinorenteringretirement.
Theseportfoliostendtobemanagedtomoreofa
conservativeassetallocationstrategy.Theseportfoliosaimto
provideinvestorswithsteadyincomethroughoutretirement.
Return
Thegainorlossonaninvestment.Apositivereturnindicates
again,andanegativereturnindicatesaloss.
ReturnBeforeTaxes
Returnbeforetaxesisameasureofafund'sperformance
overagiventimeframebeforeaccountingfortheeffectof
taxes.Dividendsgeneratedby,anddistributionsmadeon,an
investment,aswellasgainorlossesrecognizeduponsaleof
aninvestment,maybetaxable.Taxesmayreducethevalue
ofthedividend,distributionorsaleproceedsinthehandsof
theinvestor.Aseachinvestor'staxsituationmaydiffer,return
beforetaxesprovideavaluablebenchmarkagainstwhichan
investorcaneasilycomparethereturnbeforetaxesofother
investmentswithoutregardtotaxconsequences.Unless
otherwisenoted,returnsareadjustedforallapplicable
recurringandnonrecurringfees(includingredemptionfees),
loadsandcharges,ifany.
RiskofthisCategory
TheMorningstarRiskstatisticevaluatesthefund'sdownside
volatilityrelativetothatofotherfundsinitsbroadinvestment
category.Morningstarusesaproprietaryriskmeasurethat
operatesdifferentlyfromtraditionalriskmeasures,suchas
betaandstandarddeviation,whichseebothgreaterandless
thanexpectedreturnsasaddedvolatility.Morningstar
believesthatmostinvestors'greatestfearislosingmoney,
definedasunderperformingtheriskfreerateofreturnan
investorcanearnfromthe90dayTreasurybill,soitsrisk
measurefocusesonlyonthatdownsiderisk.Tocalculatethe
riskscore,Morningstarplotsmonthlyfundreturnsinrelation
toTBillreturns.TheamountsbywhichthefundtrailstheT
Billreturnisaddedeachmonthandthattotalisdividedbythe
period'stotalnumberofmonths.Thisnumber,theaverage
monthlyunderperformancestatistic,isthencomparedwith
thoseofotherfundsinthesamebroadinvestmentcategoryto
assignariskscore.Theresultingriskscoreexpresseshow
riskythefundisrelativetotheaveragefundinitscategory.
NotethatMorningstardoesnotrateanyfundthathasless
thanthreeyearsofperformancedata.
RiskTolerance
Aninvestor'sabilityandwillingnesstolosesomeorallofan
investmentinexchangeforgreaterpotentialreturns.
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SalesCharge
Achargeforbuyinganinvestment.
SalesLoad
Afeechargedwhenyoupurchasesharesinamutualfund.It
calculatedasapercentageofthefund'sofferingprice.
SecondaryBeneficiary
Thepersonorpersonsdesignatedtoreceivedeathbenefitsin
theeventthattheprimarybeneficiarypredeceasesthe
participant.
SecondaryMarket
Themarketforsecuritiespreviouslyofferedorsold.
SectorAllocation
Thatportionofafundwhichinvestsinnarrowlydefined
segmentsoftheeconomy,i.e.utilities,healthcareservices,
telecommunications,etc.
SectorDiversification
Thisdatarepresentstheindustriesinwhichafundinvests.
SectorFunds
Sectorfundsinvestinthestocksofonespecificsectorofthe
economy,suchashealthcare,chemicals,orretailing.These
fundstendtobemorevolatilethanfundsholdingadiversified
portfolioofstocksinmanyindustries.
SecuritiesandExchangeCommission(SEC)
GovernmentagencycreatedbyCongressin1934toregulate
thesecuritiesindustryandtohelpprotectinvestors.TheSEC
isresponsibleforensuringthatthesecuritiesmarketsoperate
fairlyandhonestly.
Security
Ageneraltermforstocks,bonds,mutualfunds,andother
investments.
SelfDirectedBrokerageAccount
Anaccountinwhichaplanparticipantmakesindividual
decisionsaboutwhatstocks,bondsandmutualfundstobuy
throughabrokeragewindow.
SeparateAccount
Aninsurancecompanyaccountthatissegregatedorseparate
fromtheinsurancecompany'sgeneralassets.Alsorefersto
aninvestmentoptionmanagedbyaninvestmentadviserfora
singleplan.
Share
Arepresentationofownershipinacompanyormutualfund.
ShareClass
Somemutualfundsandcompaniesoffermorethanonetype
orgroupofshares,eachofwhichisconsideredaclass(e.g.,
"ClassA,""Advisor"or"Institutional"shares).Formutual
fundseachclasshasdifferentfeesandexpensesbutallthe
classesinvestinthesamepoolofsecuritiesandhavethe
sameinvestmentobjectives.Amutualfund'sprospectus
providesdetailsregardingfeesandexpenses.
SharePrice
Thevalueofoneshareofeitherastockormutualfund.The
sharepricesofstocksarerecalculatedthroughoutthetrading
today.Withmostmutualfunds,thesharepriceiscalculatedat
theendofeachtradingdayinresponsetomovementsofthe
securitiesinwhichthefundinvests.
Shareholder
Theownerofoneormoresharesofstockinacorporationor
oneormoresharesorunitsofamutualfund.
ShareholderFees
Anyfeechargedagainstyourinvestmentforpurchaseand
sale,otherthanthetotalannualoperatingexpenses.
SharpeRatio(3Year)
TheSharperatioisameasureofhistoricaladjusted
performancecalculatedbydividingthefund'sexcessreturns
(fund'saveragemonthlyreturnsminustheaveragemonthly
returnoftheSalomonSmithBarney3MonthTBillIndex)by
thestandarddeviationofthosereturns.Thehighertheratio,
thebetterthefund'sreturnperunitofrisk.
ShortGovernment
Shortgovernmentportfolioshaveatleast90%oftheirbond
holdingsinbondsbackedbytheU.S.governmentorby
governmentlinkedagencies.Thisbackingminimizesthe
unlikelytodefaultonitsdebt.Theseportfolioshavedurations
typicallybetween1.0and3.5years,sotheyhaverelatively
lesssensitivitytointerestratesand,thus,lowriskpotential.
Morningstarcalculatesmonthlybreakpointsusingthe
determiningdurationassignment.Shortisdefinedas25%to
75%ofthethreeyearaverageeffectivedurationoftheMCBI.
ShortTermBond
Shorttermbondportfoliosinvestprimarilyincorporateand
otherinvestmentgradeU.S.fixedincomeissuesandtypically
havedurationsof1.0to3.5years.Theseportfoliosare
attractivetofairlyconservativeinvestors,becausetheyare
lesssensitivetointerestratesthanportfolioswithlonger
durations.Morningstarcalculatesmonthlybreakpointsusing
theeffectivedurationoftheMorningstarCoreBondIndexin
determiningdurationassignment.Shorttermisdefinedas
25%to75%ofthethreeyearaverageeffectivedurationof
theMCBI.
ShortTermRedemptionFee
Thisfeeischargedwhenmoneyiswithdrawnfromafund
withinaspecifiedtimeperioddeemed"shortterm,"bythe
fund,commonly30,180,or365days.Pleaserefertothe
fund'sprospectusforfurtherdetails.
ShortTermRedemptionFeePeriod
ThelengthoftimeaShortTermRedemptionFeeisineffect,
commonly30,180,or365days.
SmallBlend
SmallblendportfoliosfavorU.S.firmsatthesmallerendof
themarketcapitalizationrange.Someaimtoownanarrayof
valueandgrowthstockswhileothersemployadisciplinethat
leadstoholdingswithvaluationsandgrowthratesclosetothe
smallcapaverages.Stocksinthebottom10%ofthe
capitalizationoftheU.S.equitymarketaredefinedassmall
cap.Theblendstyleisassignedtoportfolioswhereneither
growthnorvaluecharacteristicspredominate.
SmallCapitalization(Cap)
Areferencetoeitherasmallcompanystockormutualfund
thatinvestsinthestocksofsmallcompanies.Acompanyis
generallyconsideredsmallwhenithasatotalvalueormarket
capitalization(dollarvalueofoutstandingshares)oflessthan
$2billion.
SmallGrowth
Smallgrowthportfoliosfocusonfastergrowingcompanies
whosesharesareatthelowerendofthemarketcapitalization
range.Theseportfoliostendtofavorcompaniesinupand
comingindustriesoryoungfirmsintheirearlygrowthstages.
Becausethesebusinessesarefastgrowingandoftenrichly
valued,theirstockstendtobevolatile.Stocksinthebottom
10%ofthecapitalizationoftheU.S.equitymarketaredefined
assmallcap.Growthisdefinedbasedonfastgrowth(high
growthratesforearnings,sales,bookvalue,andcashflow)
andhighvaluations(highpriceratiosandlowdividendyields).
SmallValue
SmallvalueportfoliosinvestinsmallU.S.companieswith
valuationsandgrowthratesbelowothersmallcappeers.
Stocksinthebottom10%ofthecapitalizationoftheU.S.
equitymarketaredefinedassmallcap.Valueisdefined
basedonlowvaluations(lowpriceratiosandhighdividend
yields)andslowgrowth(lowgrowthratesforearnings,sales,
bookvalue,andcashflow).
SmallCapFunds
Thesecuritiesofsmaller,lessknowncompaniesmaybe
morevolatilethanthoseoflargercompanies.
SmallcapStocks
Aninvestmentcategorizationbasedonthemarket
capitalizationofacompany.
Source
Asourceistheoriginofyourmoneyinyourretirementplan.
Examplesofsourcesinclude:employeecontribution(the
moneyyoucontribute),companymatch(themoneyyour
employermaycontribute),androllovermoney(themoney
thatyoumayhaverolledoverintothisplanfromaprior
employer'squalifiedretirementplanoranIRA).
StableValue
Stablevalueportfoliosseektoprovideincomewhile
preventingpricefluctuations.Themostcommonstablevalue
portfoliosinvestinadiversifiedportfolioofbondsandenter
intowrapperagreementswithfinancialcompaniesto
guaranteeagainstfluctuationsintheirshareprices.These
wrapperagreementstypicallyprovidepricestabilityonaday
todaybasis,therebyinsulatingeachportfolio'snetasset
valuefrominterestratevolatility.Therefore,thedurationfor
eachofthesefundsisessentiallyzero.Thiscategoryisonly
usedinMorningstar'scustomfundandseparateaccount
databases.
StableValueFund
Atypeofinvestmentoptionthatisdesignedtopreserve
principalwhileprovidingaconsistentrateofreturn.Stable
valuefundsinvestprimarilyinfixedincomesecurities.
StandardDeviation
Statisticalmeasureofhowmuchareturnvariesoveran
extendedperiodoftime.Ahigherstandarddeviationindicates
awiderdispersionofpastreturnsandthusgreaterhistorical
volatility.Standarddeviationdoesnotindicatehowan
investmentactuallyperformed,butitdoesindicatethe
volatilityofitsreturnsovertime.
Stock
Asecuritythatrepresentsanownershipinacorporation.
StockCommissions
Showsthetradingcostsincurredbyfunds,withthe
breakdownshowinghowdifferentsharequantitiesresultin
differentcommissionrates.
StockFund
Afundthatinvestsprimarilyinstocks.
StockSymbol
Anabbreviationusinglettersandnumbersassignedto
securitiestoidentifythem.
Style
Equityorstockfundsaregenerallydividedintothree
categories:Growth,Value,orBlend,whichrepresentsa
combinationofthetwo.Thetermgrowthisbasedonfast
growth(highgrowthratesforearnings,sales,bookvalue,and
cashflow)andhighvaluations(highpriceratiosandlow
dividendyields).Thetermvalueisbasedonlowvaluations
(lowpriceratiosandhighdividendyields)andslowgrowth
(lowgrowthratesforearnings,sales,bookvalue,andcash
flow)thatareexpectedtoincreaseovertime.
StyleSpectrum
While"StyleSpectrum"isnotatermofart,itrefersgenerally
totherangeof"growthvs.value"comparisonsthatmany
investorsandadvisoryinstitutionsuseinunderstandinga
mutualfund'sinvestmentstyle.Tosaythatafundisinvested
"acrossthestylespectrum"indicatesthatitholdsnotable
commitmentstogrowthstocks,valuestocks,andpartial
growth/valuestocks.
StyleMap
StyleMapdepictionsofmutualfundcharacteristicsproduced
usingdataandcalculationsprovidedbyMorningstar,Inc.
StyleMapsSMestimatecharacteristicsofafund'sequity
holdingsovertwodimensions:marketcapitalizationand
valuation.Thepercentageoffundassetsrepresentedby
theseholdingsisindicatedbesideeachStyleMap.Current
StyleMapcharacteristicsarecalculatedeachtimeMorningstar
receivesupdatedportfolioholdingsfromafundandare
denotedwithadot.HistoricalStyleMapcharacteristicsare
calculatedfortheshorterofeitherthepastthreeyearsorthe
lifeofthefund,andarerepresentedbytheshadingofthe
box(es)previouslyoccupiedbythedot.StyleMap
characteristicsrepresentanapproximateprofileofthefund's
equityholdings(e.g.,domesticstocks,foreignstocks,and
AmericanDepositaryReceipts),arebasedonhistoricaldata,
andarenotpredictiveofthefund'sfutureinvestments.
Althoughthedataaregatheredfromreliablesources,
accuracyandcompletenesscannotbeguaranteed.
SummaryPlanDescription(SPD)
Adetailed,readerfriendlydescriptionofbenefitplan
provisionsthatmustbeprovidedtoplanparticipantsand
beneficiaries.
SummaryProspectus
Ashortformprospectusthatmutualfundsgenerallymayuse
withinvestorsiftheymakethelongformprospectusand
additionalinformationavailableonlineorinpaperupon
request.
SurrenderPenalty
Theamountofmoneyaninvestormustpaywhenwithdrawing
fundsfromanannuitybeforeasetperiodoftimehas
transpired,oftenknownastheSurrenderPeriod.
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Takeover
Achangeinthecontrollinginterestofacorporation.A
takeovermaybeafriendlyacquisitionorahostilebid.A
hostiletakeoverisusuallyattemptedthroughapublictender
offer.
TargetDateFund
Afunddesignedtoprovidevaryingdegreesoflongterm
appreciationandcapitalpreservationbasedonatarget
retirementdatethroughamixofassetclasses.Themix
changesovertimetobecomelessfocusedongrowthand
morefocusedonincome.Alsoknownasalifecyclefund.
TargetRiskFund
Afundthatmaintainsapredeterminedassetmixand
generallyuseswordssuchas"conservative,""moderate,"or
"aggressive"initsnametoindicatethefund'srisklevel.Often
usedinterchangeablywith"lifestylefund.
TargetDate20002010
Targetdateportfoliosprovidediversifiedexposuretostocks,
bonds,andcashforthoseinvestorswhohaveaspecificdate
inmind(inthiscase,theyears20002010)forretirement.
Theseportfoliosaimtoprovideinvestorswithanoptimallevel
ofreturnandrisk,basedsolelyonthetargetdate.
Managementadjuststheallocationamongassetclassesto
moreconservativemixesasthetargetdateapproaches,
followingapresetglidepath.Atargetdateportfolioispartofa
seriesoffundsofferingmultipleretirementdatestoinvestors.
TargetDate20112015
TargetDate20162020
TargetDate20212025
TargetDate20262030
TargetDate20312035
TargetDate20362040
TargetDate20412045
TargetDate20462050
TargetDate2051+
Targetdateportfoliosprovideadiversifiedexposuretostocks,
inmind(inthiscase,theyears2051andbeyond)for
retirement.Theseportfoliosaimtoprovideinvestorswithan
optimallevelofreturnandrisk,basedsolelyonthetarget
date.Managementadjuststheallocationamongasset
classestomoreconservativemixesasthetargetdate
approaches,followingapresetglidepath.Atargetdate
portfolioispartofaseriesoffundsofferingmultipleretirement
datestoinvestors.
TargetedInternationalEquityFunds
Mutualfundsthatinvestinstocksissuedbycompanies
locatedinspecificcountriesorregionsaroundtheworld.
Thesefundscanbedividedintotwogeneralsubcategories:
Country/regionfundsgenerallyinvestincompanieslocatedin
aspecificcountryorgeographicalarea,suchasGermanyor
AsiaPacific.Emergingmarketfundsfocusontheworld's
developingcountries,whererapidindustrializationmayoffer
highpotentialgains,butmayalsoleadtoextremevolatility.
TaxableMoneyMarket
Theseportfoliosinvestinshorttermmoneymarketsecurities
inordertoprovidealevelofcurrentincomethatisconsistent
withthepreservationofcapital.
TaxdeferredAnnuity
Aninsurancecontract,issuedbyaninsurancecompany,that
allowsyoutoaccumulatesavingsonataxdeferredbasisfor
longtermgoals,suchasretirement.Therearefixedand
variabletaxdeferredannuities.Withafixeddeferredannuity,
yoursavingsearnasetrateofreturn,whichisguaranteedby
theissuinginsurancecompanyforaspecificperiodoftime.
Youchooseaninterestrateforaperiodoftime,usually
rangingfrom1to10years.Withavariabledeferredannuity,
youchoosehowtoallocatetheassetsinyourannuityamong
anumberofmanagedportfolios,withoptionsrangingfrom
veryconservativetoveryaggressive.Youwillhavethe
flexibilitytochangeyourportfolio'sallocationsasyour
situationormarketconditionschange.Onceyou'reretiredand
needincome,youcanturnthemoneyaccumulatedinyour
annuityintoaregularstreamofincome,ortakepartial
withdrawalsastheneedarises.
TaxFreeMoneyMarket
Theseportfoliosinvestinshorttermmunicipalmoneymarket
securitiesthatareoftenexemptfromsomefederalandstate
taxes.Thesefundsprovidecurrentincomeandaimto
preservecapital.
Technicals
Shorttermtrendsthattechnicalanalystscansometimes
identifyassignificantinthepricemovementofasecurityora
commodity.Suchtrendsmaybeinthedemandandsupplyfor
securities,options,mutualfunds,andcommoditiesbasedon
tradingvolumeandpricestudies.Technicalanalysisis
generallynotconcernedwiththefinancialpositionofa
company.
Technology
TechnologyportfoliosbuyhightechbusinessesintheU.S.or
outsideoftheU.S.Mostconcentrateoncomputer,
semiconductor,software,networking,andInternetstocks.A
fewalsobuymedicaldeviceandbiotechnologystocks,and
someconcentrateonasingletechnologyindustry.
Term
Thelifespanassignedtoanassetorliability.
TickerSymbol
Anabbreviationusinglettersandnumbersassignedto
securitiesandindexestoidentifythem.
TimeHorizon
Theamountoftimethataninvestorexpectstostayinvested
inaninvestmentbeforetakingthemoneyout.
Top10Holdings
The10holdingsinwhichthisfundhaditslargestinvestments,
asofthedateshown.ForFidelityfunds,thisinformationis
updatedmonthly,withaonemonthlag.Forotherfunds,this
informationmaybeupdatedinthissametimeframeorona
quarterlybasis.
Top5Issuers
Thetopfivebondissuersrepresentedintheholdingsofa
fund.
Top5States
Thetopfivestatesrepresentedinthebondholdingsofafund.
TotalAnnualOperatingExpenses
Fromtheinvestor'sperspective,thisisthecostorpartofthe
costofinvestinginamutualfund.Fromthemutualfund
provider'sperspective,thisisthecostofoperatingthemutual
fund.Thetotalannualoperatingexpenseisgenerally
expressedasapercentageorinbasispointsandisoftenalso
calledthe"expenseratio".
TotalNetAssets
Thefigureisrecordedinmillionsofdollarsandrepresentsthe
fund'stotalassetbase,netoffees,andexpenses,asofthe
indicateddateincludedintheresultsmatrix.
TotalNumberofHoldings
Theaggregatenumberofalluniquesecuritiesheldina
mutualfund.
TotalReturn
Returnonaninvestment,takingintoaccountcapital
appreciation,dividendsorinterest,andindividualtax
considerationsadjustedforpresentvalueandexpressedon
anannualbasis.
TradingFee
Afeeyoupaywhenyouredeem,orsell,yourshares.Notall
fundschargetradingfees.
TradingFeePeriod
Aperiodspecifiedbyamutualfundduringwhichyouwillbe
chargedafeeforredeemingsharesinthefund..
TradingSymbol
SeeTickerSymbol.
TradingInverseCommodities
Thesefundsseektogeneratereturnsequaltoaninverse
multipleofshorttermreturnsofacommodityindex.The
compoundingofshorttermreturnsresultsinperformancethat
doesnotcorrespondtothoseofinvestingintheindexwith
externalleverage.Forexample,afundattemptingtoachieve
negative2timesthereturnsofagivenindexonadailybasis
isunlikelytodeliveranythinglikenegative2timestheindex's
returnsoverperiodslongerthanoneday.Manyofthesefunds
seektogenerateamultipletypicallynegative1tonegative3
timesofthedailyorweeklyreturnofthereferenceindex.
Tradingfundsarenotconsideredsuitableforalongterm
investorandaredesignedtobeusedbyactivetraders.
TradingInverseDebt
fixedmultipleofshorttermreturnsofafixedincomeindex.
Thecompoundingofshorttermreturnsresultsinperformance
thatdoesnotcorrespondtothoseofinvestingintheindex
withexternalleverage.Forexample,afundattemptingto
achievenegative2timesthereturnsofagivenindexona
dailybasisisunlikelytodeliveranythinglikenegative2times
theindex'sreturnsoverperiodslongerthanoneday.Manyof
thesefundsseektogenerateamultipletypicallynegative1to
negative3timesofthedailyorweeklyreturnofthereference
index.Tradingfundsarenotconsideredsuitableforalong
terminvestorandaredesignedtobeusedbyactivetraders.
TradingInverseEquity
fixedmultipleofshorttermreturnsofanequityindex.The
negative2timesthereturnsofagivenindexonadailybasis
isunlikelytodeliveranythinglikenegative2timestheindex's
returnsoverperiodslongerthanoneday.Manyofthesefunds
seektogenerateamultipletypicallynegative1tonegative3
timesthedailyorweeklyreturnofthereferenceindex.
TradingLeveragedCommodities
Thesefundsseektogeneratereturnsequaltoafixedmultiple
ofshorttermreturnsofacommodityindex.Thecompounding
ofshorttermreturnsresultsinperformancethatdoesnot
correspondtothoseofinvestingintheindexwithexternal
leverage.Forexample,afundattemptingtoachieve2times
thereturnsofagivenindexonadailybasisisunlikelyto
deliveranythinglike2timestheindex'sreturnsoverperiods
longerthanoneday.Manyofthesefundsseektogeneratea
multipleofthedailyorweeklyreturnofthereferenceindex.
investorandaredesignedtobeusedbytraders.
TradingLeveragedDebt
oftheshorttermreturnsofafixedincomeindex.The
2timesthereturnsofagivenindexonadailybasisisunlikely
todeliveranythinglike2timestheindex'sreturnsover
periodslongerthanoneday.Manyofthesefundsseekto
generateamultipleofthedailyorweeklyreturnofthe
referenceindex.Tradingfundsarenotconsideredsuitablefor
alongterminvestorandaredesignedtobeusedbyactive
traders.
TradingLeveragedEquity
oftheshorttermreturnsofanequityindex.Thecompounding
ofshorttermreturnsresultsinperformancethatdoesnot
correspondtothoseofinvestingintheindexwithexternal
leverage.Forexample,afundattemptingtoachieve2times
thereturnsofagivenindexonadailybasisisunlikelyto
deliveranythinglike2timestheindex'sreturnsoverperiods
longerthanoneday.Manyofthesefundsseektogeneratea
multipleofthedailyorweeklyreturnofthereferenceindex.
TradingMiscellaneous
(positiveornegative)ofshorttermreturnsofanindex.The
referenceindexforthiscategoryisnotequity,fixedincome,or
commoditylinked.Thecompoundingofshorttermreturns
resultsinperformancethatdoesnotcorrespondtothoseof
investingintheindexwithexternalleverage.Forexample,a
fundattemptingtoachieve2timesthereturnsofagiven
indexonadailybasisisunlikelytodeliveranythinglike2
timestheindex'sreturnsoverperiodslongerthanoneday.
Manyofthesefundsseektogenerateamultipleofthedaily
orweeklyreturnofthereferenceindex.Tradingfundsarenot
consideredsuitableforalongterminvestorandaredesigned
tobeusedbyactivetraders.
Trustee
organization)thatisresponsibleforthesafekeepingoftrust
assets.
TurnoverRate
SeePortfolioTurnoverRate.
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U.S.TreasurySecurities
DebtsecuritiesissuedbytheU.S.governmentandsecured
byitsfullfaithandcreditforthepromptpaymentofprincipal
andinterestatmaturity.Treasurysecuritiesarethedebt
financinginstrumentsoftheUnitedStatesFederal
government,andtheyareoftenreferredtosimplyas
Treasuries.
U.S.TreasurySTRIPS
Zerocouponbondswhichpayprincipalandintereston
maturity.Eachfundcomparesitsperformancetotheaverage
ofthetotalreturnsoftwoU.S.TreasurySTRIPS(evenly
weightedbyparamount)thatmatureclosetothefund'starget
maturitydates(August15andNovember15ofthe
appropriateyear).
UltrashortBond
Ultrashortbondportfoliosinvestprimarilyininvestmentgrade
U.S.fixedincomeissuesandhavedurationstypicallyofless
thanoneyear.Thiscategorycanincludecorporateor
governmentultrashortbondportfolios,butitexcludes
international,convertible,multisector,andhighyieldbond
portfolios.Becauseoftheirfocusonbondswithveryshort
durations,theseportfoliosofferminimalinterestrate
sensitivityandthereforelowriskandtotalreturnpotential.
Morningstarcalculatesmonthlybreakpointsusingthe
determiningdurationassignment.Ultrashortisdefinedas
25%ofthethreeyearaverageeffectivedurationoftheMCBI.
Unit
Arepresentationofownershipinaninvestmentthatdoesnot
issueshares.
USDollar
TheUSDollarIndexisanaverageofsixmajorworld
exchangeratesprovidingageneralindicationofthe
internationalvalueoftheUSdollar.TheIntercontinental
ExchangedeterminesthevalueoftheUSDollarIndexby
averagingtheexchangeratesbetweentheUSDandtheeuro,
Japaneseyen,Britishpound,Canadiandollar,Swedishkrona
andSwissfranc.TheUSDollarIndexiscomputedusinga
tradeweightedgeometricaverageofsixcurrencies.
Utilities
Utilitiesportfoliosseekcapitalappreciationbyinvesting
primarilyinequitysecuritiesofU.S.ornonU.S.publicutilities
includingelectric,gas,andtelephoneserviceproviders.
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Value
Astyleofequityinvesting.Afundissaidtobeavaluefundif
itholdssecuritiesthathavelowvaluations(lowpriceratios
andhighdividendyields)andslowgrowth(lowgrowthrates
forearnings,sales,bookvalue,andcashflow)thatare
expectedtoincreaseovertime.
ValueDate
Thedateonwhichaforeignexchangetransactionoracash
movementtakesplace.Canbeusedinterchangeablywith
settlementdate.
ValueFund
Afundthatinvestsprimarilyinstocksthatarebelievedtobe
pricedbelowwhattheyarereallyworth.
ValueStocks
Stocksthatareconsideredtobeundervaluedbasedupon
suchratiosaspricetobookorpricetoearnings(P/E).These
stocksgenerallyhavelowerpricetobookandpriceearnings
ratios,higherdividendyieldsandlowerforecastedgrowth
ratesthangrowthstocks.
VariableAnnuity
Anannuitywherethecustomerhasachoicewherehis
contractvaluewillbeinvestedandwhichprovides(withthe
exceptionofanyminimumpaymentwhichmaybeguaranteed
byaninsurancecompany)thatthecustomerbearsthe
investmentrisksandreceivestheactualinvestment
performancelesscertaincharges.
VariableReturnInvestment
Investmentsforwhichthereturnisnotfixed.Thisterm
includesstockandbondfundsandalsoinvestmentsthatseek
topreserveprincipallikemoneymarketfundsandstable
valuefundsbutdonotguaranteeaparticularreturn.
Volatility
Theamountandfrequencyoffluctuationinthepriceofa
security,commodity,oramarketwithinaspecifiedtime
period.Generally,aninvestmentwithhighvolatilityissaidto
havehigherrisksincethereisanincreasedriskthattheprice
ofthesecuritywillhavefallenwhenaninvestorwantstosell.
VolatilityMeasures
Volatilitymeasuresarebasedonthevariabilityofhistorical
returnsoftheportfolio.Inthecaseofannuityfunds,thisis
beforetheeffectofannuitycharges.RelativeVolatility,Beta,
andR2compareaportfolio'stotalreturntothoseofarelevant
market,representedbythebenchmarkindex.Standard
Deviationiscalculatedindependentofanindex.
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WeightedAverageLife(WAL)
Formoneymarketfunds,thisistheweightedaverageofthe
lifeofthesecuritiesheldinafundorportfolioandcanbeused
asameasureofsensitivitytochangesinliquidityand/orcredit
risk.Generally,thehigherthevalue,thegreaterthesensitivity.
WALisbasedonthedollarweightedaveragelengthoftime
untilprincipalpaymentsmustbepaid,takingintoaccountany
calloptionsexercisedbytheissuerandanypermissible
maturityshorteningfeaturesotherthaninterestrateresets.
Formoneymarketfunds,thedifferencebetweenWAMand
WAListhatWAMtakesintoaccountinterestrateresetsand
WALdoesnot.WALformoneymarketfundsisnotthesame
asWALofamortgageorassetbackedsecurity.
WeightedAverageMaturity(WAM)
Thisisaweightedaverageofallthematuritiesofthe
securitiesheldinafund.WAMcanbeusedasameasureof
sensitivitytointerestratechangesandmarketschanges.
Generally,thelongerthematurity,thegreaterthesensitivityto
suchchanges.WAMisbasedonthedollarweightedaverage
lengthoftimeuntilprincipalpaymentsmustbepaid.
Dependingonthetypesofsecuritiesheldinafund,certain
maturityshorteningdevices(e.g.,demandfeatures,interest
rateresets,andcalloptions)maybetakenintoaccountwhen
calculatingtheWAM.
WithholdingTax
Ataxassessedbytherelevanttaxauthorityondistributions,
includingdividendsandcapitalgains.Taxratesofwithholding
amountsvarybytransaction..
WorldAllocation
Worldallocationportfoliosseektoprovidebothcapital
stocks,bonds,andcash.Whiletheseportfoliosdoexplorethe
wholeworld,mostofthemfocusontheU.S.,Canada,Japan,
andthelargermarketsinEurope.Itisrareforsuchportfolios
toinvestmorethan10%oftheirassetsinemergingmarkets.
Theseportfoliostypicallyhaveatleast10%ofassetsin
bonds,lessthan70%ofassetsinstocks,andatleast40%of
assetsinnonU.S.stocksorbonds.
WorldBond
Worldbondportfoliosinvest40%ormoreoftheirassetsin
foreignbonds.Someworldbondportfoliosfollowa
conservativeapproach,favoringhighqualitybondsfrom
developedmarkets.Othersaremoreadventurousandown
somelowerqualitybondsfromdevelopedoremerging
markets.SomeportfoliosinvestexclusivelyoutsidetheU.S.,
whileothersregularlyinvestinbothU.S.andnonU.S.bonds.
WorldStock
Worldstockportfolioshavefewgeographicallimitations.Itis
commonfortheseportfoliostoinvestthemajorityoftheir
assetsintheU.S.,Europe,andJapan,withtheremainder
dividedamongtheglobe'ssmallermarkets.Theseportfolios
typicallyhave20%60%ofassetsinU.S.stocks.
WrapFee
Afeeorexpensethatisaddedtoorwrappedaroundan
investmentoptiontopayforonemoreservices.

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XYZ
Yield
Thevalueofinterestordividendpaymentsfroman
investment,usuallystatedasapercentageofinvestment
price.
YieldCurve
Therelationshipatagivenpointintimebetweenyieldsona
groupoffixedincomesecuritieswithvaryingmaturities
commonly,Treasurybills,notes,andbonds.Thecurve
typicallyslopesupwardsincelongermaturitiesnormallyhave
higheryields,althoughitcanbeflatoreveninverted.
YieldToCall
Yieldonabondassumingthebondwillberedeemedbythe
issueratthefirstcalldatespecified.
YieldToMaturity
Usedtodeterminetherateofreturnaninvestorwillreceiveif
alongterm,interestbearinginvestment,suchasabondis
heldtoitsmaturitydate.Ittakesintoaccountpurchaseprice,
redemptionvalue,timetomaturity,couponyieldandthetime
betweeninterestpayments.
YieldWithoutSubsidy
Theyieldwithoutapplicablewaiversorreimbursements,
wheneverthefundissubsidizingalloraportionofthefund's
expensesasofthecurrentreportingperiod.Absentsuch
waiversorreimbursements,thereturnswouldhavebeen
lower.Waiversand/orreimbursementsmaybediscontinued
anytime.
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