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Definitions

ADR: American Depositary Receipt - a negotiable receipt for the shares of a foreign-based corporation held in trust by a financial institution that entitles the shareholder to all dividends and capital gains and is traded in the United States market.

ADS: American Depositary Share - a share issued under a deposit agreement representing the underlying ordinary share which trades in the issuer's home market.

Alpha: A portfolio's alpha measures the difference between its actual returns and its expected returns given its risk level as measured by its beta. A positive alpha indicates the portfolio has performed better than its beta would predict, while a negative alpha indicates a portfolio has underperformed given the expectations established by its beta.

Annualized Return: Rate of return of the Fund smoothed as though the return occurred equally over twelve-month periods. When the specified time frame is less than a year, the rate of return is projected as though the same performance continues to occur for a twelve-month period. See Rate of Return.

Beta: A stock's (or a portfolio's) beta measures its volatility versus an index. A stock (or portfolio) with a beta higher than one has tended to exhibit more volatility than the index, while a stock (or portfolio) with a beta between 0 and 1 has tended to exhibit less volatility than the index.

Beginning Value: The beginning performance value for a specified period is equal to market value at that time or equal to the sum of contributions and withdrawals to the account during the inception month.

Book Value: Assets minus liabilities. Also known as shareholders' equity.

Capitalization Weighted: A stock index in which each stock affects the index in proportion to its market value (also called market-value weighted index).

Citigroup U.S. Broad Investment Grade Bond Index: The Citigroup U.S. Broad Investment Grade Bond Index is an unmanaged index that tracks the performance of bonds issued in the U.S. investment-grade bond market and includes U.S. Treasury, government-sponsored, mortgage, asset-backed, and investment grade securities. It includes the reinvestment of dividends and income but does not reflect fees, brokerage commissions, withholding taxes, or other expenses of investing. One cannot invest directly in an index.

Common Equity: A security that represents ownership in a corporation. Owners of the security are generally entitled to vote on the selection of directors and other important matters.

Credit Ratings: High Yield (HY) Ratings: Moody's Ba1, Ba2, and Ba3; Standard & Poor's BB+, BB, and BB-; and Fitch's BB+, BB, and BB- are considered to have speculative subject to substantial credit risk. Moody's B1, B2, and B3; Standard & Poor's B+, B, and B-; and Fitch's B+, B, and B- are considered speculative and are subject to high credit risk. Moody's Caa, Ca, and C; Standard & Poor's CCC, CC, and C; and Fitch's CCC, CC, and C are considered very high credit risk, likely in, or very near, default. Moody's D, Standard & Poor's D, and Fitch's D are considered defaulted obligations.

Credit Ratings: Investment Grade (IG) Ratings: Moody's Aaa; Standard & Poor's AAA; and Fitch's AAA are considered obligations deemed to be of the highest quality, with minimal credit risk. Moody's Aa, A1, A2, and A3; Standard & Poor's AA, A+, A, and A-; and Fitch's AA, A+, A, and A- are considered obligations deemed to be of high quality, with low credit risk. Moody's Baa1, Baa2, and Baa3; Standard & Poor's BBB+, BBB, and BBB-; and Fitch's BBB+, BBB, and BBB- are considered obligations subject to moderate credit risks.

Cur Yld: Current Yield - Annualized income from the investment (dividends, interest, etc.) divided by the current market price of the investment.

Dividend Adjustment: Adjustment reflecting additional information released regarding a previously recorded dividend.

Dow Jones Industrial Average (DJIA): The Dow Jones Industrial Average is an unmanaged, price-weighted index consisting of 30 stocks collectively deemed representative of the U.S. stock market and includes dividends and distributions, but does not reflect fees, brokerage commissions, or other expenses of investing. One cannot invest directly in an index.

Emerging Markets: Refers to those companies operating in developing nations as defined by Morgan Stanley Capital International.

Equal Weighted: Performance data or other data calculated by weighting all of a composite's or index's components equally.

Fiscal Year: Business year. Assumed to be the calendar year, unless otherwise designated.

Floated Weighted: An index in which each constituent affects the index in proportion to its float (the number of shares outstanding and available for public trading).

Fundamental Information: Benchmark and portfolio fundamentals are, in general, unadjusted figures based on published historical information. Portfolio fundamentals may be adjusted by the firm in cases where unadjusted information would materially misrepresent the company or the aggregate portfolio information.

GDR: Global Depositary Receipt - a receipt for shares of a foreign-based corporation traded in capital markets around the world.

Gross of Fees: Prior to subtraction of management fees.

Large Cap: Large Capitalization - refers to those companies with a market capitalization generally greater than $5 billion (USD).

LBAGGBX: The Lehman Brothers U.S. Aggregate Index is an unmanaged index consisting of U.S. dollar-denominated, fixed-rate, taxable bonds. The Index includes bonds from the Treasury, Government-Related, Corporate, Mortgage-Backed Securities (agency fixed-rate and hybrid adjustable-rate mortgage passthroughs), Asset-Backed Securities and Commercial Mortgage-Backed Securities sectors. Securities must be rated investment grade (Baa3/BBB-/BBB- or above) by Moody's, S&P, and Fitch, respectively. When all three agencies rate an issue, a median or "two out of three" rating is used to determine Index eligibility by dropping the highest and lowest rating. When a rating from only two agencies is available, the lower ("most conservative") of the two is used. When a rating from only one agency is available, that rating is used to determine Index eligibility. One cannot invest directly in an index.

LBINTCRED: The Lehman Brothers U.S. Intermediate Credit Index is an unmanaged index consisting of U.S. dollar-denominated, publicly issued, fixed-rate corporate securities. Issues must have at least $250 million par amount outstanding and have a maturity from one up to (but not including) ten years. Securities must be rated investment grade (Baa3/BBB-/BBB- or above) by Moody's, S&P, and Fitch, respectively. When all three agencies rate an issue, a median or "two out of three" rating is used to determine Index eligibility by dropping the highest and lowest rating. When a rating from only two agencies is available, the lower ("most conservative") of the two is used. When a rating from only one agency is available, that rating is used to determine Index eligibility. One cannot invest directly in an index.

LBINTGCX: The Lehman Brothers U.S. Intermediate Government/Credit Index is an unmanaged index consisting of U.S. dollar denominated, publicly issued, fixed rate corporate and government securities. Issues must have a maturity from one up to (but not including) ten years and a minimum of $250 million par amount outstanding. Securities must be rated investment grade (Baa3/BBB-/BBB- or above) by Moody's, S&P, and Fitch, respectively. When all three agencies rate an issue, a median or "two out of three" rating is used to determine Index eligibility by dropping the highest and lowest rating. When a rating from only two agencies is available, the lower ("most conservative") of the two is used. When a rating from only one agency is available, that rating is used to determine Index eligibility. One cannot invest directly in an index.

Lt Debt/Equity: Long-term debt of a corporation divided by the corporation's common equity.

Market Price: Price of the investment as of the appraisal date.

Medium/Mid Cap: Medium Capitalization - refers to those companies with a market capitalization generally between $1.5 billion and $5 billion (USD).

Mkt Cap: Market Capitalization - the number of common shares outstanding multiplied by the current market price per common share.

Money Market Yield: The average yield of the most common taxable money market funds used in client portfolios. This figure may differ from the fund used for your portfolio, particularly if the fund is tax exempt.

MSCI EAFE: The MSCI EAFE Index is an unmanaged index consisting of equities from Europe, Australasia, and the Far East. The index is often used as a benchmark for international equity portfolios and includes dividends and distributions net of corresponding withholding taxes, but does not reflect fees, brokerage commissions, or other expenses of investing. One cannot invest directly in an index.

MSCI WRLD: The MSCI World Index is an unmanaged index consisting of equities from developed markets around the world, including the United States. The index is often used as a benchmark for global equity portfolios and includes dividends and distributions, but does not reflect fees, brokerage commissions, withholding taxes, or other expenses of investing. One cannot invest directly in an index.

Nasdaq Composite: The Nasdaq Composite Index is an unmanaged, capitalization-weighted index of all stocks traded on the NASDAQ Stock Market and includes dividends and distributions, but does not reflect fees, brokerage commissions, or other expenses of investing. One cannot invest directly in an index.

Net Capital: The net total of all contributions and withdrawals since the inception of the account.

Net of Fees: After subtraction of management fees.

ORD: Ordinary - shares of foreign securities traded on their local exchange.

Performance Summary (Report): A listing of important aspects of a Fund for various periods of time. The summary is not intended to balance.

Price/Book: Price per share divided by book value per share.

Price/CF: Price per share divided by cash flow per share.

Price/Earn: Price per share divided by earnings per share.

Price Weighted: A stock index in which each stock affects the index in proportion to its price per share.

R2: A portfolio's R2 (pronounced "r-squared") measures how closely the portfolio's performance correlates with the performance of an index. Specifically, R2 indicates what proportion of the portfolio's performance is determined by the performance of the index. Values for R2 range from 0 to 1.0.

Rate of Return: Percentage change in the market value of the account over the specified time frame, including realized and unrealized gains or losses, dividends, and income.

Realized Gain/Loss: Profit or loss resulting from the sale or other disposal of a security. Gains and losses are based on First In First Out (FIFO) accounting methodology.

Reverse Stock Split: A procedure whereby a corporation will reduce the number of shares outstanding while maintaining the same total market value of the company by increasing the value per share of stock; e.g., if a firm with 10 million outstanding shares selling at $10/share executes a reverse 1-for-10-split, the firm will end up with 1 million shares selling for $100 each.

ROE: Return on Equity - net income divided by common equity.

Small Cap: Small capitalization - refers to those companies with a market capitalization of generally less than $1.5 billion (USD).

S&P 500: The S&P 500 Index is an unmanaged index that consists of 500 stocks and is designed to form a representative sample of the United States stock market. This index often is used as a benchmark for U.S. equity portfolios and includes dividends and distributions, but does not reflect fees, brokerage commissions, withholding taxes, or other expenses of investing. One cannot invest directly in an index.

Spin-off: A procedure whereby a corporation reorganizes one or more of its operating entities into a separate corporation and gives shares of this new corporation to its shareholders.

Stock Split: A procedure whereby a corporation increases the number of shares outstanding while maintaining the same total market value of the company by reducing the value per share of stock; e.g., if a stock at $100 par value splits 2-for-1, the number of outstanding shares doubles and the price per share drops by half to $50.

Total Return (Cumulative Return): Rate of return of the Fund over the specified time period. See Rate of Return.

Treynor Ratio: The Treynor Ratio measures excess return per unit of risk. Specifically, the Treynor Ratio relates the return earned above the risk-free rate to the portfolio beta for a given time period.

Unit Cost: Average cost per share.

Unrealized Gain/Loss: A tentative gain or loss on an investment that has not been realized. A gain or loss becomes realized once the investment is actually sold.

Yld: Yield - annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

Please refer to the Brandes Institutional International Equity Fund Prospectus, Institutional Global Equity Fund Prospectus, Separately Managed Account Reserve Trust - SMART Prospectus and the Institutional Core Plus Fixed Income Prospectus for important information about the investment company including investment objectives, risks, charges and expenses. To obtain a hard copy Prospectus, please call the Mutual Fund Group at 800.395.3807.