Average Annual Total Return
The most widely used barometer of fund performance. Average annual total return
is defined as the percentage change in a fund's net asset value, or share price,
over a specified time and takes into account the impact of any distributions, dividends
and interest payments and assumes reinvestment of all income dividends and capital
gains distributions. Performance results typically show average annual total returns
for specific time periods: one-year, three-year, five-year, and 10-year or since
Yield is a measure of a fund's dividend income or earnings paid out to you, usually
expressed as a percentage of its current share price over a designated period. For
a mutual fund, yield consists of dividend payments divided by the beginning value
of the fund's shares (before any gain or loss in the price per share). A fund that
paid $200 in dividends on a $2,000 investment at the beginning of a period provided
a yield of 10%. Yield is probably most important to investors who seek current income.
The performance of an investment, including yield as well as changes in per share
price, calculated over a designated period of time.
The Securities and Exchange Commission (SEC) requires mutual funds to disclose standardized
after-tax returns. This disclosure is intended to help investors understand the
impact taxes have on the performance of their mutual funds. The after-tax return
is not relevant if you invest through a tax-deferred account, such as an IRA or
employer-sponsored retirement plan, since after-tax returns are calculated when
most investors are in lower tax brackets. Consult your tax advisor for your
individualized after-tax return.