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.

FTSE 3-Month US T-Bill

The FTSE 3 Month US T Bill Index Family is intended to track the daily performance of 3 Month US Treasury Bills, plus an annual equivalent rate of 4.00%. The index is designed to operate as a reference rate for a series of funds.

Morningstar Market Neutral Category

These are funds that attempt to eliminate the risks of the market by holding 50% of assets in long positions and 50% of assets in short positions.

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 Capital.

Profitability measurement that assesses the return that an investment generates for capital contributors (i.e. Bondholders and stockholders).

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.

Russell 1000® TR Index

A market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.

Russell 1000® Value Index 

Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with lower price-to-book ratios and lower forecasted growth values.

S&P 500 TR 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.

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7900 College Boulevard

Suite 124

Overland Park, KS. 66210

(913) 214-5000

info@cognios.com

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 view a prospectus which contains this and other information, or Contact Us. Read the prospectus carefully before investing.

The Cognios Mutual Funds are distributed by ALPS Distributors, Inc., 1290 Broadway, Ste 1000, Denver, CO 80203.

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

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