Glossary of Terms

  • Alpha
    • The risk-adjusted (i.e., Beta-adjusted) outperformance or underper­formance of the portfolio relative to the stock market or another chosen index.
  • Beta
    • Statistical measure of the sensitivity of a company’s stock price to the movement of a broad stock market index. For the Fund, the Adviser uses a company stock price Beta relative to the S&P 500 Index. A Beta of 1.0 means a stock generally moves up and down in proportion to the movement of the stock market. A Beta greater than 1.0 means a stock generally moves up and down more than the movement of the stock market. A Beta less than 1.0 means that a stock generally moves up and down less than the movement of the stock market.
  • Basis Point
    • One basis point is equal to 1/100th of 1%, or 0.01% (0.0001), 100bp=1.00%.
  • Cash Flow Yield
    • A measure of the value of a company calculated by dividing free cash flow by the value of the company. Free cash flow ("FCF") is the cash a company has left over after all expenses and capital expenditures (cash reinvested in the company).
  • Correlation
    • Statistical measure of how two securities move in relation to one another.
  • HFRX EH: Equity Market Neutral Index
    • These strategies employ sophisticated quantitative techniques of analyzing price data to ascertain information about future price movement and relationships between securities, select securities for purchase and sale. These can include both Factor-based and Statistical Arbitrage/Trading strategies. Equity Market Neutral Strategies typically maintain characteristic net equity market exposure no greater than 10% long or short. The HFRX EH: Equity Market Neutral Index is a made up of a subset of the funds included in the HFRI EH: Equity Market Neutral Index. The methodology used to construct the HFRX EH: Market Neutral Index requires that funds have a performance record of at least 24 months and assets greater than $50 million to be included as a constituent of the index. The HFRX EH: Market Neutral Index also requires funds to trade on a transparent basis and be open to new investors. None of these are currently requirements of the HFRI EH: Market Neutral Index.
  • MLP (Master Limited Partnership)
    • A type of limited partnership that is publically traded and has two types of partners, a limited partner who provides capital to the MLP and a general partner who manages the operations of the partnership.
  • Return on Equity (ROE)
    • Profitability measurement that calculates how many dollars of net profit a company generates with each dollar of shareholders' equity.
  • Return on Tangible Assets (ROTA)
    • Unlevered metric of a company’s profits divided by its tangible assets.
  • Return on Capital
    • Profitability measurement that assesses the return that an investment generates for capital contributors (i.e. Bondholders and stockholders).
  • S&P 500 Total Return Index
    • This Index is a market value weighted index that includes 500 stocks chosen by Standard & Poor's based on market size, industry grouping, liquidity and other factors. It is designed to be indicative of the large cap universe capturing approximately 75% coverage of U.S. equities.
  • Smart Beta
    • Passive investment style that emphasizes the use of alternative index construction by attempting to capture investment factors or market inefficiencies in a rules based manner.

One cannot invest directly in an index.

The Cognios Funds are not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. Click Here to obtain a prospectus which contains this and other information, or call 855.254.6467. Read the prospectus carefully before investing.

The Cognios Funds are distributed by ALPS Distributors, Inc., 1290 Broadway, Ste 1100, Denver, CO 80203.

Not FDIC Insured - No Bank Guarantee - May Lose Value.