Glossary

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Management Fee

A fee or charge paid to an investment manager for its services.

Market Capitalization or Market Cap

The market value of a company. Market capitalization can be determined by multiplying the number of outstanding shares of a company’s stock by the stock’s current market price per share.

Market Risk

The possibility that the value of an investment will fall because of a general decline in the financial markets.

Maturity Date

The date on which the principal amount of a loan, bond, or any other debt becomes due and is to be paid in full.

Mid Cap Fund

A fund that invests primarily in mid-cap stocks.

Mid Cap Stocks

Stocks of companies with a medium market capitalization. Mid caps are often considered to offer more growth potential than larger caps (but less than small caps) and less risk than small caps (but more than large caps).

Mid Capitalization (Cap)

A reference to either a medium sized company stock or an investment fund that invests in the stocks of medium-sized companies.

Money Market Fund

A mutual fund that invests in short-term, high-grade fixed-income securities, and seeks the highest level of income consistent with preservation of capital (i.e., maintaining a stable share price).

Morningstar

A leading mutual fund research and tracking firm. Morningstar categorizes funds by objective and size, and then ranks fund performance within those categories.

MSCI EAFE Index

An index known by an acronym for the Europe, Australasia, and Far East markets produced by Morgan Stanley Capital International (MSCI). Markets are represented in the index according to their approximate share of world market capitalization. The index is a widely used benchmark for managers of international stock fund portfolios.

MSCI World Index

An index of major world stock markets, including the United States. The index is a widely used benchmark for managers of global stock fund portfolios.

Mutual Fund

An investment company registered with the SEC that buys a portfolio of securities selected by a professional investment adviser to meet a specified financial goal (investment objective). Mutual funds can have actively managed portfolios, where a professional investment adviser creates a unique mix of investments to meet a particular investment objective, or passively managed portfolios, in which the adviser seeks to parallel the performance of a selected benchmark or index.