[ N - Q ]

Net Assets
The net asset value of a Fund, plus all other assets, minus liabilities.

passive management
See indexing.

Portfolio
The securities of a Fund.

Price-to-book ratio
The price per share of a stock divided by its book value (i.e., net worth) per share. For a portfolio, the ratio is the weighted average price/book ratio of the stocks it holds.

Price/cash flow
Supplements price/earnings ratio as a measure of relative value; represents a weighted average of the price/cash flow ratios for the underlying fund holdings.

Price/earnings ratio (P/E)
The share price of a stock, divided by its per-share earnings over the past year. For a portfolio, the weighted average P/E ratio of the stocks in the portfolio. P/E is a good indicator of market expectations about a company's prospects; the higher the P/E, the greater the expectations for a company's future growth in earnings.

Prospectus
A legal document that gives prospective investors information about an investment, including discussions of its investment objectives and policies, risks, costs, and past performance. A prospectus must be provided to a potential investor before he/she can establish an account and must also be filed with the Securities and Exchange Commission.