Term Definitions

Accrued Interest. The interest income earned that has yet to be collected. Accrued interest essentially comes in two forms, the interest on a loan or a bond that has accumulated from the time the principal investment was made or the interest accumulated since the previous coupon was made.

Advisory Account Price. The price paid per unit to purchase units in an advisory account.

Alpha. A measure of performance on a risk-adjusted basis and often considered the active return on an investment, gauges the performance of an investment against a market index used as a benchmark, since they are often considered to represent the market's movement as a whole. The excess returns of a fund relative to the return of a benchmark index is the fund's alpha.

Asset Class. The type of securities that make up the portfolio of the unit investment trust that exhibits similar characteristics, behaves similarly in the marketplace.

Average Annual Return (CAGR). The return an investment provides over a period of time, expressed as a time-weighted annual percentage. The rate of annual return is measured against the initial amount of the investment and represents a geometric mean rather than a simple arithmetic mean.

Benchmark Index. A standard against which the performance of the unit investment trust can be measured. Generally, broad market, and market segment stock and bond indexes are used for this. In the case of multi-asset portfolios, multiple benchmarks may be utilized for the fundamental analysis based on a weighting comparison. It is not possible to invest directly in an index.

Beta. A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the expected return of an asset based on its beta and expected market returns.

Closed Date. The date the trust is no longer selling units to the public. May potentially be the same date as the secondary date.

Conviction Weighting. A weighting method where the individual components weights in the portfolio are determined by the manager selecting the portfolio.

Cumulative Return. A cumulative return is the aggregate amount an investment has gained or lost over time, independent of the period of time involved. The cumulative return does not reflect any transactional sales charge.

CUSIPs. The CUSIP number is a unique identification number assigned to unit investment trusts, and it is used to create a concrete distinction between securities. Unit investment trusts may include multiple CUSIPs for the same issue based on types of accounts and reinvestment options.

Distribution Type. The classification of distributions that are estimated to be made by the unit investment trust. These typically will be dividends, interest, or capital gains.

Distributions. The allocation of capital gains and dividend or interest income generated by the UIT for the unit holders. Distributions consist of net capital gains made from the profitable sale of portfolio assets, along with dividend income and interest earned by those assets.

Equal Weight. A type of weighting that gives the same weight, or importance, to each stock in a portfolio or index fund, and the smallest companies are given equal weight to the largest companies in an equal-weight index fund or portfolio.

Estimated Annual Operating Expenses. Expenses to operate the trust that include, but are not limited to, a trustee fee (paid to the trustee for services), sponsor supervisory fee (paid to the sponsor as supervisor for providing portfolio supervision services), evaluator fee (paid to the sponsor for evaluating the portfolio), bookkeeping and administrative fee (paid to the sponsor for performing bookkeeping and administrative services), and other operating expenses that are paid from the trust assets.

Estimated Daily Rate of Accrual. Represents the annual interest from the securities within the portfolio divided by the number of days on which interest is calculated annually.

Estimated Series Offering Frequency. The estimated frequency at which the issuer/sponsor intends to bring a series of a strategy to market. The frequency can change do to various factors and market conditions.

First Ex-Dividend Date. The date at which a unit holder must own units of the unit investment trust to be awarded the first distribution payment.

First Payment Date. The first date on which a declared distribution payment of a unit investment trust is schedule to be paid.

First Record Date. The first cut-off date established by the unit investment trust in order to determine which unit holders are eligible to receive the distribution payment.

Fundamental Analysis. A method of measuring a security's intrinsic value by examining related economic and financial factors.

Initial Advisory Price. The initial price the units of the unit investment trust are offered to the public on the first day of the primary offering period for advisory accounts. This typically includes a creation & development fee, but not subject to the transactional sales charge.

Initial Liquidation Price. The initial price/value of the unit investment trust for unit holders liquidating units.

Initial Offer Date. The first date the unit investment trust is offered to the public during a primary offering period. May potentially be the same date as the deposit date, or the date the unit investment trust is formed and securities are deposited into the unit investment trust.

Initial Offer Price. The initial price the units of the unit investment trust are offered to the public on the first day of the primary offering period for brokerage accounts. This typically includes a transactional sales charge and a creation & development fee.

Investment Strategy. The details of the unit investment trust strategy as described by the issuer/sponsor.

Investment Strategy Goal. The financial goals of the unit investment trust which are reflected in the types of securities chosen for the portfolio to achieve these goals.

Investment Type/Style. The overarching strategy or theory used to a set asset allocation or choose individual securities for investment. The investment style of a unit investment trust helps set expectations for long-term performance potential and aids investors looking for a specific type of market exposure.

Issuer/Sponsor. The company that organizes the unit investment trust, brings it to market, and offers units for sale to investors during the primary offering period as well as purchases units from investors redeeming units for liquidation.

Last Primary Trade Date. The last date of the primary offering period where units of the unit investment trust can be purchased by investors from the issuer/sponsor.

Liquidation Price. The value per unit that a unit holder would receive if the unit holder redeemed or sold units. This price is equal to the net asset value per unit including any remaining organization costs and creation & development fee. This price reflects any remaining non-contingent deferred sales charges payable in connection with the liquidation of units.

Market Weighting. A type of weighting method where individual components are included in amounts that correspond to their total market capitalization (market cap).

Max Drawdown. The maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown is an indicator of downside risk over a specified time period.

Max Gain. The maximum gain from a trough to a peak of a portfolio, before a new trough is attained.

Minimum IRA Purchase. The minimum dollar amount required for an investor to purchase units from a unit investment trust as required by the issuer/sponsor in an individual retirement account.

Minimum Purchase. The minimum dollar amount required for an investor to purchase units from a unit investment trust as required by the issuer/sponsor in a non-retirement account.

Net Asset Value. The dollar value of a single unit investment trust unit, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding.

Number of Holdings. Number of securities in the unit investment trust or benchmark index.

Objective. The investment objective of the unit investment trust as listed by the issuer/sponsor. May be similar to the Investment Strategy Goal.

Organizational Costs. Costs reimburse the unit investment trust sponsor for some or all of the costs of creating the unit investment trust, including preparation of legal documents, registration fees, accounting fees, portfolio consultant fees, and initial listing and filing fees, and other fees and expenses of the trust.

Par Value. The face value of a bond. Par value determines its maturity value as well as the dollar value of coupon payments. Par value for a bond is typically$1,000 or $100. The market price of a bond may be above or below par, depending on factors such as the level of interest rates and the bondʼs credit status.

Portfolio Consultant. The entity, typically an investment advisor, selected by the issuer/sponsor to assist in the selection of the unit investment trust portfolio.

Public Offering Price. The net asset value per unit plus any applicable organization costs and sales charges. This is the regular public offering price paid per unit to purchase units.

Quantitative Analysis. A technique that uses mathematical and statistical modeling, measurement, and research to understand behavior.

R-Squared. A statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.

Region. A specific geographical area where a unit investment trust will confine its security selection and will generally look to own a diversified portfolio of companies based in and operating out of a specified geographical area.

Return (Annualized). Annualized return of the unit investment trust based on the daily returns of the dates specified.

Risk (Annualized). Annualized standard deviation of the unit investment trust based on the daily returns of the dates specified.

Rollover. As part of a UIT strategy, Sponsors typically offer a subsequent series of a trust for a rollover when the current trust terminates. When a trust terminates, investors will have the option to participate in a rollover and have your units reinvested into a subsequent trust series through a cash rollover. If an investor elects to participate in a rollover, the units will be redeemed as the trustʼs termination date. When the redemption proceeds become available, the proceeds (including dividends) will be invested in a new trust series, if available, at the public offering price for the new trust.

Sales Charges. Fees charged by a sponsor, broker or agent for service in facilitating a transaction. May include an initial sales charge (paid at time of purchase), deferred sales charge (paid at a time after the time of purchase), creation & development fee (compensates the Sponsor for creating and developing the Trust), or other types of fees.

Scheduled Frequency. The frequency at which the unit investment trusts will make distributions. These typically will me monthly, quarterly, semi-annually, or annually.

Secondary Date. The date the unit investment trust is no longer offered for sale on the primary market and the first date of the secondary period of the unit investment trust life cycle.

Sector/Industry. An area of the economy in which businesses share the same or a related product or service. It can also be thought of as an industry or market that shares common operating characteristics.

Selection Process. The type of process utilized to determine which financial securities are included in the portfolio the unit investment trust.

Series Code. The specific code that refers to the series of a unit investment trust strategy developed by the issuer/sponsor. This generally indicates when the unit investment trust was initially offered and is based on the offering frequency.

Sharpe Ratio. A measure for calculating risk-adjusted return and is the average return earned in excess of the risk-free rate per unit of volatility or total risk.

Sortino Ratio. A variation of the Sharpe ratio that differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative asset returns, called downside deviation.

Sponsor Symbol. The specific symbol of the unit investment trust developed by the issuer/sponsor. This generally includes the Strategy Code and Series Code combined in a specific fashion.

Standard Deviation. A statistical measurement: when applied to the annual rate of return of an investment, it sheds light on the historical volatility of that investment. The greater the standard deviation, the greater the variance between each price and the mean, indicating the greater volatility of return.

Strategy Code. The specific code assigned to the strategy of a unit investment trust developed by the issuer/sponsor. This code remains constant for every unit investment trust series of that strategy.

Strategy Inception. The date of the first series of a particular unit investment trust strategy.

Supervisor. The entity, usually an investment advisor, responsible for overseeing the portfolio of the unit investment trust. May or may not be affiliated with the issuer/sponsor of the unit investment trust.

Symbol. The unique arrangement of characters assigned by Nasdaq representing the specific unit investment trust.

Tax Structure. The tax structure of the unit investment trust, which can either be a Regulated Investment Company or a Grantor Trust.

Term. The length of the unit investment trust from offering date to termination date.

Termination Date. The date the unit investment trust reaches maturity and is considered terminated. The date the unit investment trust is dissolved, and the proceeds for the value of the units are paid to shareholders.

Treynor Ratio. Also known as the reward-to-volatility ratio, it is a risk-adjusted measurement of a return, based on systematic risk or a metric for returns that exceed those that might have been gained on a risk-less investment, per each unit of market risk. It is a metric of efficiency that makes use of the relationship that exists between risk and annualized risk-adjusted return.

Trustee. The custodian of the unit investment trust that maintains the trustʼs assets and serves as the portfolio administrator to the trust.

UIT Return. The cumulative return of the unit investment trust for the dates specified based on no sales charge and any distributions paid during the specified dates paid in cash.

Upside/Downside Capture Ratio. Statistical measure of an investment manager's overall performance in up and down markets. The capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen or fallen.

Weighted Average 30 Day Volume. The weighted average of the 30-day volume of the ETFs in the portfolio.

Weighted Average Coupon Rate. The weighted average of the coupon rates of the fixed income securities in the portfolio.

Weighted Average Debt/Equity. The weighted average of the debt/equity ratio of the securities in the portfolio. The debt/equity ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company's total liabilities by its stockholders' equity

Weighted Average Expense Ratio. The weighted average of the expense ratios of the closed-end funds/exchange traded funds in the UIT portfolio.

Weighted Average Leverage. The weighted average leverage used by the closed-end funds in the portfolio. Leverage is the closed-end funds ability to use borrowing as a method to leverage their assets.

Weighted Average Market Cap. The weighted average of the market capitalization of the securities in the portfolio.

Weighted Average Maturity. The weighted average amount of time until the maturities on fixed income securities in the portfolio. This term is used more broadly to describe maturities in a portfolio of debt securities, including corporate debt and municipal bonds.

Weighted Average Premium/Discount. The weighted average of the of the premiums and discounts of the closed-end funds in the portfolio. A premium to net asset value occurs when a market price of a closed-end fund is trading at a premium to the net asset value of its components. A discount to net asset value occurs when its market price is currently lower than the net asset value of its components.

Weighted Average Price/Book. The weighted average of the price/book ratio of the securities in the portfolio. The price/book ratio is a ratio used to compare a stock's market value to its book value. It is calculated by the current closing price of the stock divided by the latest quarter's book value per share.

Weighted Average Price/Cash Flow. The weighted average of the price/cash flow ratio of the securities in the portfolio. The price/cash flow ratio is the ratio of a stock's price to its cash flow per share. The price-to-cash-flow ratio is an indicator of a stock's valuation.

Weighted Average Price/Earnings. The weighted average of the price/earnings ratio of the securities in the portfolio. The price/earnings ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings. It is calculated by the market value per share divided by its earnings per share.

Weighted Average Price/Sales. The weighted average of the price/sales ratio of the securities in the portfolio. The price/sales ratio is a valuation ratio that compares a company's stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company's sales or revenues. It can be calculated either by dividing the company's market capitalization by its total sales over a 12-month period, or on a per-share basis by dividing the stock price by sales per share for a 12-month period. Like all ratios, the price-to-sales ratio is most relevant when used to compare companies in the same sector.

Weighted Average Short Interest Ratio. The weighted average of the short interest ratio of the securities in the portfolio. The short interest ratio is a sentiment indicator that is derived by dividing the short interest by the average daily volume for a stock.

Weighted Average Tracking Error. The weighted average of the divergence between the price of the ETFs in the portfolio and the price behavior of the constituents during the last 12 months.

Weighted Average Yield. The weighted average of the yields of the preferred stocks in the portfolio. The yield is the income return on an investment, such as the interest or dividends received from holding a particular security.

Weighting Method. A mathematical process by which securities are adjusted to reflect importance by value or proportion in the unit investment trust portfolio.

Holdings Terms

Coupon Rate. The yield paid by a fixed-income security; a fixed-income security's coupon rate is the annual coupon payments paid by the issuer relative to the bond's face or par value. The coupon rate is the yield the bond paid on its issue date.

Geography. The location of the issuer of the security and based on the security's country of domicile.

Market Capitalization. The total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. Market capitalization is determined by the following criteria: Mega-Cap: Greater than $200 billion, Large-Cap: $10 billion - $200 billion, Mid-Cap: $2 billion - $10 billion, Small-Cap: $300 million - $2 billion, Micro-Cap: $50 million - $300 million, Nano-Cap: Below $50 million.

Maturity. The interval between the present date and the maturity date of a bond. The maturity tells how long the bond has left until it matures and is retired from the market.

Moodyʼs Rating. A bond credit quality rating provided by Moodyʼs Investors Service and is a current opinion of the creditworthiness of an obligor with respect to a specific debt obligation. Ratings are relative, subjective and not absolute standards of quality, represent the opinions of the independent, Nationally Recognized Statistical Rating Organizations (NRSRO), and are according to the Moodyʼs Investors Service scale. Rating agencies provide gradations of creditworthiness using rating symbols. The Moodyʼs ratings apply to the bonds held by the trust, and not the trust itself.

Next Call Date. The next date on which a bond can be redeemed before maturity. The bond may be redeemed on the call date at par or at a small premium to par.

S&P Rating. A bond credit quality rating provided by Standards & Poorʼs Corporation and is a current opinion of the creditworthiness of an obligor with respect to a specific debt obligation. Ratings are relative, subjective and not absolute standards of quality, represent the opinions of the independent, Nationally Recognized Statistical Rating Organizations (NRSRO), and are according to the Standards & Poorʼs scale. Rating agencies provide gradations of creditworthiness using rating symbols. The S&P ratings apply to the bonds held by the trust, and not the trust itself.

Sector. An area of the economy in which businesses share the same or a related product or service. It can also be thought of as an industry or market that shares common operating characteristics. The sectors are defined by the Global Industry Classification Standards.

Security Type. Description of the specific financial instrument (security) within its market sector.

State. The state in which the municipality of the issuer of the security is located.

Style. The investment style of the security based on a set of financial metrics. Growth stocks are issued by companies which, based upon their higher than average price/book ratios, are expected to experience greater earnings growth rates relative to other companies in the same industry or the economy as a whole. Securities of growth companies may be more volatile than other stocks. Value stocks are issued by companies which, based upon their lower than average price/book ratios, are believed to be undervalued or inexpensive relative to other companies in the same industry or the economy as a whole.

Defined Outcome Terms

Buffer Effectiveness (Brokerage, Advisory, Net Asset Value). The percentage of protection the defined outcome UIT provides compared to the return of the reference security.  The percentages will vary and subject to decreased buffer effectiveness percentages due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

Capped Upside Return (Brokerage, Advisory, Net Asset Value). A maximum percentage return per unit a defined outcome UIT seeks to provide at the termination date.  The percentages will vary and subject to decreases due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

Distribution Rate. A fixed level rate available using a portfolio strategy of selling at-the-money (ATM) call FLEX options on the underlying reference security to purchase fixed income securities and distributing any interest or principal received from such fixed income securities. A "target" distribution rate reflects the estimated distribution rate based on current market conditions or from a specified date range of market conditions.

Downside Buffer Amount (Brokerage, Advisory, Net Asset Value). The Buffer Downside Level Percentage expressed as a dollar amount for which a defined outcome UIT seeks to protect unitholders against losses at the termination date.  The percentages will vary and subject to decreased buffer percentages due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

Downside Buffer Level Percentage (Brokerage, Advisory, Net Asset Value). A specified percentage decrease in the value of a Reference Asset for which a defined outcome UIT seeks to protect unitholders against losses at the termination date.  The percentages will vary and subject to decreased buffer percentages due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

FLexible EXchange® Options (FLEX Options). Customizable equity or index contracts available through national securities exchanges that are guaranteed for settlement by the Options Clearing Corporation (OCC), thus drastically eliminating counter-party risk. They allow investors with the ability to customize contract terms and enjoy expanded position limits. Launched in 1993, FLEX Options are powerful, customizable portfolio management tools that allow users to specify key contract terms like size, exercise prices, exercise styles (i.e., American-style, or European-style) and expiration dates which can be tailored according to target trading objectives.

Maximum Amount Loss Per Unit (Brokerage, Advisory, Net Asset Value). A maximum dollar loss per unit a defined outcome UIT is designed to allow at the termination date.  The amounts will vary and subject to higher loss amounts due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value amount excludes any sales charge and fees and expenses.

Maximum Percentage Loss Per Unit (Brokerage, Advisory, Net Asset Value). A maximum percentage loss per unit a defined outcome UIT is designed to allow at the termination date.  The percentages will vary and subject to higher loss percentages due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

Maximum Amount Per Unit (Brokerage, Advisory, Net Asset Value). A maximum dollar gain per unit a defined outcome UIT seeks to provide at the termination date.  The amounts will vary and subject to decreases due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value amount excludes any sales charge and fees and expenses.

Maximum Annualized Return (Brokerage, Advisory, Net Asset Value). A maximum annualized percentage gain per unit a defined outcome UIT seeks to provide based on the capped upside return and defined outcome period.  The percentages will vary and subject to decreases due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

Outcome Period.  The entire life of the unit investment trust, beginning with the initial offer date through the termination date.

Participation Rate (Brokerage, Advisory, Net Asset Value). Value increase of the defined outcome UIT as a percentage of the return of the reference security. The percentages will vary and subject to decreased percentages due to sales charges and fees and expenses for brokerage and advisory accounts.  Net asset value percentage excludes any sales charge and fees and expenses.

Reference Security. An exchange traded fund that generally tracks the performance of an index.

Upside Percentage. Percentage upside performance return match the defined outcome UIT seeks to provide with the reference security, typically up to a capped percentage. A percentage greater than 100% is considered an enhanced upside percentage.  The percentages will vary and subject to lower match percentages due to sales charges and fees and expenses for brokerage and advisory accounts.

Upside Ratio. The upside performance return multiple the defined outcome UIT seeks to provide with the reference security, typically to a capped amount. A ratio greater than 1:1 is considered an enhanced upside ratio. The ratios will vary and subject to a lower ratio due to sales charges and fees and expenses for brokerage and advisory accounts.