Index Definitions

This benchmark is applied the same way as the T-bill. Because CDs are sponsored by banks, they are not as easily traded as T-bills and thus tend to offer higher yields. We collect yields on 3- and 6-Month CD's on the last business day of every month. For more information on CDs, call the Federal Reserve at 312-322-5322.

Three-month Treasury Bills are short-term securities issued by the U.S. government that are generally considered to be risk-free. Morningstar determines the arithmetic mean of the investment rates on all three-month Treasury Bills issued during a given month as reported by the U.S. Treasury's Bureau of the Public Debt. Morningstar then converts the investment rate into a price and then a monthly return, using the assumption that the T-Bill is held to maturity.

Morningstar collects prices on a monthly basis for the CPI or Consumer Price Index for Urban Consumers. This index measures the changes in prices of goods and services purchased by urban households. Many pension and employment contracts are tied to changes in consumer prices, as protection against inflation and reduced purchasing power. This figure is available around the 1st of each month.

Call 312-353-1883 for more information or visit CPI on the web.

The monetary value of all the goods and services produced by an economy over a specified period. It includes consumption, government purchases, investments, and exports minus imports. This is perhaps the greatest indicator of the economic 'health' of a country. It is usually measured yearly, although monthly stats are also released.

Market capitalization-weighted index of the stocks in the Standard & Poor's 500 Index having the lowest book to price ratios. The index consists of approximately half of the S&P 500 on a market capitalization basis.

Market capitalization-weighted index of the stocks in the Standard & Poor's 500 Index having the highest book to price ratios. The index consists of approximately half of the S&P 500 on a market capitalization basis.

Market capitalization-weighted index of the stocks in the Standard & Poor's Midcap 400 Index having the lowest book to price ratios. The index consists of approximately half of the S&P 400 on a market capitalization basis.

Market capitalization-weighted index of the stocks in the Standard & Poor's Midcap 400 Index having the highest book to price ratios. The index consists of approximately half of the S&P 400 on a market capitalization basis.

Market capitalization-weighted index of the stocks in the Standard & Poor's Smallcap 600 Index having the lowest book to price ratios. The index consists of approximately half of the S&P 600 on a market capitalization basis.

Market capitalization-weighted index of the stocks in the Standard & Poor's Smallcap 600 Index having the highest book to price ratios. The index consists of approximately half of the S&P 600 on a market capitalization basis.

The Dow Jones 100% Global Portfolio Index is a benchmark designed for asset allocation strategists who are willing to take 100% of the risk of the global securities market. It is a total returns index formed by equally weighing nine equity style indexes with monthly rebalancing. The nine equity style Indexes Include: Dow Jones U.S. Large Cap Value, Dow Jones U.S. Large Cap Growth, Dow Jones U.S. Mid Cap Value, Dow Jones U.S. Small Cap Value, Dow Jones U.S. Mid Cap Growth, Dow Jones U.S. Small Cap Growth, Dow Jones Emerging Markets LN, Dow Jones Europe/Canada, and Dow Jones Asia/Pacific. Beginning in 1980 and before 1/1/1992, the Dow Jones 100% Global Portfolio Index (DJ100%GPI) is depicted by an index created for Dow Jones indexes by the quantitative group. This index contains all nine relevant equity asset classes equally weighted and rebalanced monthly.

The Dow Jones 20% Global Portfolio Index is a benchmark designed for asset allocation strategists who are willing to take 20% of the risk of the global securities market. It is a total returns index that is a time-varying weighted average of stocks, bonds, and cash The DJ20%GPI is the efficient allocation of stocks, bonds, and cash in a portfolio whose semideviation is 20% of the annualized 36 month historic semideviation of the Dow Jones 100% Global Portfolio Index (DJ100%GPI). Stocks are represented by the DJ100%GPI. Bonds are represented by an equal weighting of the following four bond indexes with monthly rebalancing: Lehman Government Bonds Index, Lehman Corporate Bonds Index, Lehman Mortgage-backed Bonds Index, and Lehman Majors (ex U.S.) Bonds Index. Cash is represented by the 91-Day T-Bill Auction Average. The efficient portfolio is updated monthly.

The Dow Jones 40% Global Portfolio Index is a benchmark designed for asset allocation strategists who are willing to take 40% of the risk of the global securities market. It is a total returns index that is a time-varying weighted average of stocks, bonds, and cash The DJ40%GPI is the efficient allocation of stocks, bonds, and cash in a portfolio whose semideviation is 40% of the annualized 36 month historic semideviation of the Dow Jones 100% Global Portfolio Index (DJ100%GPI). Stocks are represented by the DJ100%GPI. Bonds are represented by an equal weighting of the following four bond indexes with monthly rebalancing: Lehman Government Bonds Index, Lehman Corporate Bonds Index, Lehman Mortgage-backed Bonds Index, and Lehman Majors (ex U.S.) Bonds Index. Cash is represented by the 91-Day T-Bill Auction Average. The efficient portfolio is updated monthly.

The Dow Jones 40% U.S. Portfolio Index is a weighted average of other stock, bond, and cash indexes. It is reconstructed monthly and represents 40% of the risk of the U.S. equities market. The equities position (which is close to 40% of the portfolio) is constructed by equally weighting six Dow Jones U.S. Style Indexes (Large Growth, Large Value, Mid Growth, Mid Value, Small Growth and Small Value). The bond and cash position (which is close to 60% of the portfolio) is composed of various Lehman Brothers U.S. fixed income indexes.

The Dow Jones 60% Global Portfolio Index is a benchmark designed for asset allocation strategists who are willing to take 60% of the risk of the global securities market. It is a total returns index that is a time-varying weighted average of stocks, bonds, and cash The DJ60%GPI is the efficient allocation of stocks, bonds, and cash in a portfolio whose semideviation is 60% of the annualized 36 month historic semideviation of the Dow Jones 100% Global Portfolio Index (DJ100%GPI). Stocks are represented by the DJ100%GPI. Bonds are represented by an equal weighting of the following four bond indexes with monthly rebalancing: Lehman Government Bonds Index, Lehman Corporate Bonds Index, Lehman Mortgage-backed Bonds Index, and Lehman Majors (ex U.S.) Bonds Index. Cash is represented by the 91-Day T-Bill Auction Average. The efficient portfolio is updated monthly.

The Dow Jones 60% US Portfolio is a weighted average of other stock, bond, and cash indexes. It is reconstructed monthly and represents 60% of the risk of the U.S. equities market. The equities position (which is close to 60% of the portfolio) is constructed by equally weighting six Dow Jones U.S. Style Indexes (Large Growth, Large Value, Mid Growth, Mid Value, Small Growth and Small Value). The bond and cash position (which is close to 40% of the portfolio) is composed of various Lehman Brothers U.S. fixed income indexes.

The Dow Jones 80% Global Portfolio Index is a benchmark designed for asset allocation strategists who are willing to take 80% of the risk of the global securities market. It is a total returns index that is a time-varying weighted average of stocks, bonds, and cash The DJ80%GPI is the efficient allocation of stocks, bonds, and cash in a portfolio whose semideviation is 80% of the annualized 36 month historic semideviation of the Dow Jones 100% Global Portfolio Index (DJ100%GPI). Stocks are represented by the DJ100%GPI. Bonds are represented by an equal weighting of the following four bond indexes with monthly rebalancing: Lehman Government Bonds Index, Lehman Corporate Bonds Index, Lehman Mortgage-backed Bonds Index, and Lehman Majors (ex U.S.) Bonds Index. Cash is represented by the 91-Day T-Bill Auction Average. The efficient portfolio is updated monthly.

Dow Jones Biotechnology consists of companies included in the Dow Jones Global Universe Index and derive their primary revenue from the biotechnology sector. The Dow Jones Global Universe Index covers 95% of the underlying free-float market capitalization at the country level for developed markets (excluding Europe)and at the aggregate level for Europe and emerging markets (all Europe and all emerging markets).

Also known as the 65 Stock Average, consists of DJ Industrial Average, the DJ Transportation Average, and the Dow Jones Utility Average. The composite, like the other Dow Jones Indices, is a price-weighted index. Price-weighted indices are derived by adding up the prices of the components and dividing this sum by a stock split-adjusted divisor. Dividends are reinvested to reflect the actual performance of the underlying securities.

This index consists of companies included in the Dow Jones Global Universe Index and derive their primary revenue from the financial sector. The Dow Jones Global Universe Index covers 95% of the underlying free-float market capitalization at the country level for developed markets (excluding Europe)and at the aggregate level for Europe and emerging markets (all Europe and all emerging markets).

This index consists of companies included in the Dow Jones Global Universe Index and derive their primary revenue from the Healthcare sector. The Dow Jones Global Universe Index covers 95% of the underlying free-float market capitalization at the country level for developed markets (excluding Europe)and at the aggregate level for Europe and emerging markets (all Europe and all emerging markets).

Computed by summing the prices of the stocks of 30 companies and then dividing that total by an adjusted value -- one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities.

Formerly the Muldex Large Growth index. An index containing large-capitalization growth stocks. During the index construction and review processes, Dow Jones uses six factors to determine which stocks to include in the index: Projected P/E, Projected Earnings Growth, Trailing P/E, Trailing Earnings Growth, P/B, and Dividend Yield.

An index containing large-capitalization value stocks. During the index construction and review processes, Dow Jones uses six factors to determine which stocks to include in the index: Projected P/E, Projected Earnings Growth, Trailing P/E, Trailing Earnings Growth, P/B, and Dividend Yield.

An index containing medium-capitalization growth stocks. During the index construction and review processes, Dow Jones uses six factors to determine which stocks to include in the index: Projected P/E, Projected Earnings Growth, Trailing P/E, Trailing Earnings Growth, P/B, and Dividend Yield.

An index containing medium-capitalization value stocks. During the index construction and review processes, Dow Jones uses six factors to determine which stocks to include in the index: Projected P/E, Projected Earnings Growth, Trailing P/E, Trailing Earnings Growth, P/B, and Dividend Yield.

This index consists of companies included in the Dow Jones Global Universe Index and derive their primary revenue from the real estate sector. The Dow Jones Global Universe Index covers 95% of the underlying free-float market capitalization at the country level for developed markets (excluding Europe)and at the aggregate level for Europe and emerging markets (all Europe and all emerging markets).

Formerly the Muldex Small Growth index. An index containing small-capitalization growth stocks. During the index construction and review processes, Dow Jones uses six factors to determine which stocks to include in the index: Projected P/E, Projected Earnings Growth, Trailing P/E, Trailing Earnings Growth, P/B, and Dividend Yield.

Formerly the Muldex Small Value index. An index containing small-capitalization value stocks. During the index construction and review processes, Dow Jones uses six factors to determine which stocks to include in the index: Projected P/E, Projected Earnings Growth, Trailing P/E, Trailing Earnings Growth, P/B, and Dividend Yield.

This index consists of companies included in the Dow Jones Global Universe Index and derive their primary revenue from the technology sector. The Dow Jones Global Universe Index covers 95% of the underlying free-float market capitalization at the country level for developed markets (excluding Europe)and at the aggregate level for Europe and emerging markets (all Europe and all emerging markets).

This index consists of companies included in the Dow Jones Global Universe Index and derive their primary revenue from the telecommunications sector. The Dow Jones Global Universe Index covers 95% of the underlying free-float market capitalization at the country level for developed markets (excluding Europe)and at the aggregate level for Europe and emerging markets (all Europe and all emerging markets).

Consists of 20 railroad, airline and trucking stocks. Dividends are reinvested to reflect the actual performance of the underlying securities. This index is also a price-weighted, and the figure we report is a total return.

Consists of 15 geographically representative gas and electric utility companies. The index is price weighted, meaning it is calculated by adding up the daily prices of the 15 stocks and dividing by a stock split-adjusted divisor. Dividends are reinvested to reflect the actual performance of the underlying securities, thus the figure is a total return. The DJUA was started back in 1929.

Comprised of both the Treasury Bond index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues) and the Agency Bond Index (all publicly issued debt of U.S. Government agencies and quasi-federal corporations and corporate-debt guaranteed by the U.S. Government). These bonds also must have maturities of one to five years. The returns we publish for the index are total returns, which include reinvestment of dividends.

Comprised of both the Treasury Bond index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues) and the Agency Bond Index (all publicly issued debt of U.S. Government agencies and quasi-federal corporations and corporate-debt guaranteed by the U.S. Government). These bonds also must have maturities of one to three years. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Serves as a benchmark for measuring the performance of the agency (Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association) for the adjustable mortgage securities market. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Composed of the Lehman Brothers Government/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Serves as a benchmark for all eligible California issued bonds. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Listed for corporate bond-general and high-quality funds. This index tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC-registered, investment-grade corporate debt. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Listed for government-bond general and Treasury funds. Because it tracks the returns of U.S. Treasuries, agency bonds, and one- to three-year U.S. government obligations, this index is effective for tracking portfolios holding non-mortgage government securities. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Represents a combination of the Government and Corporate Bond indices. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Serves as a measure of all public-issued nonconvertible, investment-grade corporate debts that have a maturity of one to three years. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Includes both corporate (publicly-issued, fixed-rate, nonconvertible, investment grade, dollar-denominated, SEC-registered, corporate dept.) and government (Treasury Bond index, Agency Bond index, 1-3 Year Government index, and the 20+-Year treasury) indexes, including bonds with maturities up to ten years. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Includes those indexes found in the LB Government Index which have a maturity of one to three years. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

This index includes treasury bonds with maturates of at least one year and up to 10 years with an outstanding par value of at least 100 million. They include fixed-rate debt issues, rated investment grade or higher by Moodys Investor Services, Standard & Poors Corporation, or Fitch Investors Service (in that order). Treasuries include all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Serves as a measure of all public-issued nonconvertible investment-grade corporate debts that have a maturity of 10 years or more. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Includes the LB Government and LB Corporate Bond indices that have maturities of 10 years or longer. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Includes those indexes found in the LB Government index which have a maturity of 10 years or more. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Includes all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues with maturates of 10 years or longer. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Includes 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA). The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Listed for municipal-bond funds. This index serves as a benchmark for long-term, investment-grade, tax-exempt municipal bonds. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Serves as a benchmark for New York-issued bonds. The returns we publish for the index are total returns, which include reinvestment of dividends. For more information, visit Lehman Brothers' indexes web site.

Represents a combination of the Government and Corporate Bond indices for bonds with maturities between one and five years. The returns we publish for the index are total returns, which include reinvestment of dividends.

This index serves as a benchmark for intermediate-term, investment-grade, tax-exempt municipal bonds. The maturities of these bonds must be between 8 and 12 years. The returns we publish for the index are total returns, which include reinvestment of dividends.

This index serves as a benchmark for long-term, investment-grade, tax-exempt municipal bonds. The maturities of these bonds must be between 17 and 22 years. The returns we publish for the index are total returns, which include reinvestment of dividends.

This index serves as a benchmark for short-term, investment-grade, tax-exempt municipal bonds. The maturities of these bonds must be between 2 and 4 years. The returns we publish for the index are total returns, which include reinvestment of dividends.

For each of the 16 Morningstar indexes, there are eight different combinations.

Four different currencies:

• US Dollar - nothing added to the name

• Euro - name follow by (EUR)

• UK Pound - name follow by (GBP)

• Japanese Yen - name follow by (JPY)

Two different dividend reinvestment options:

• with dividends included - name followed by TR

• without dividends included - nothing added to the name

The Morningstar U.S. Market Index is a diversified broad market index that targets 97% market capitalization coverage of the investable universe.

The Morningstar Large Cap Index tracks the performance of U.S. large-cap stocksstocks that represent the largest 70 percent capitalization of the investable universe.

The Morningstar Mid Cap Index tracks the performance of U.S. mid-cap stocksstocks that fall between 70th and 90th percentile in market capitalization of the investable universe. In aggregate the Mid-Cap Index represents 20 percent of the investable universe.

The Morningstar Mid Cap Index tracks the performance of U.S. mid-cap stocksstocks that fall between 70th and 90th percentile in market capitalization of the investable universe. In aggregate the Mid-Cap Index represents 20 percent of the investable universe.

The Morningstar Small Cap Index tracks the performance of U.S. small-cap stocksstocks that fall between 90th and 97th percentile in market capitalization of the investable universe. In aggregate, the Small Cap Index represents 7 percent of the investable universe.

The Morningstar US Value Index tracks the performance of stocks with relatively low prices given anticipated per-share earnings, book value, cash flow, sales and dividends.

The Morningstar US Core Index tracks the performance of stocks where neither growth nor value characteristics predominate.

The Morningstar US Growth Index tracks the performance of stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flow and sales.

The Morningstar Large Value Index measures the performance of large-cap stocks with relatively low prices given anticipated per-share earnings, book value, cash flow, sales and dividends.

The Morningstar Mid Value Index measures the performance of mid-cap stocks with relatively low prices given the anticipated per-share earnings, book value, cash flow, sales and dividends.

The Morningstar Small Value Index measures the performance of small-cap stocks with relatively low prices given anticipated per-share earnings, book value, cash flow, sales and dividends.

The Morningstar Large Core Index measures the performance of large-cap stocks where neither growth nor value characteristics predominate.

The Morningstar Mid Core Index measures the performance of mid-cap stocks where neither growth nor value characteristics predominate.

The Morningstar Small Core Index measures the performance of small-cap stocks where neither growth nor value characteristics predominate.

The Morningstar Large Growth Index measures the performance of large-cap stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flow and sales.

The Morningstar Mid Growth Index measures the performance of mid-cap stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flow and sales.

The Morningstar Small Growth Index measures the performance of small-cap stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flow and sales.

The Long/Short Commodity Index is a fully collateralized commodity futures index that uses the momentum rule to determine if each commodity is held long, short, or flat.

The Long/Flat Commodity Index is a fully collateralized commodity futures index that is derived from the positions of the Long/Short index. It takes the same long and flat positions as the Long/Short index and replaces the short positions with flat positions.

The Short/Flat Commodity Index is a fully collateralized commodity futures index that is derived from the positions of the Long/Short index. It takes the same short positions as the Long/Short index and replaces long positions with flat positions.

The Long-Only Commodity Index is a fully collateralized commodity futures index that is long all eligible commodities.

The Short-Only Commodity Index is a fully collateralized commodity futures index that is short in all eligible commodities.

The Agriculture Commodity Index is a fully collateralized commodity futures index that is long all eligible commodities in the agriculture sector.

The Energy Commodity Index is a fully collateralized commodity futures index that is long all eligible commodities in the energy sector.

The Livestock Commodity Index is a fully collateralized commodity futures index that is long all eligible commodities in the livestock sector.

The Metals Commodity Index is a fully collateralized commodity futures index that is long all eligible commodities in the metals sector.

MSCI, in collaboration with Standard & Poor's, developed the Global Industry Classification Standard (GICS). GICS consists of 10 Sectors, 23 Industry Groups, '59 Industries and 122 Sub-Industries.

The MSCI AC (All Country) Far East Free ex Japan Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East, excluding Japan. As of April 2002 the MSCI AC Far East Free ex Japan Index consisted of the following 9 developed and emerging market country indices: China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore Free, Taiwan and Thailand.

The MSCI ACWI (All Country World Index) Free Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. As of April 2002 the MSCI ACWI Free Index consisted of the following 49 developed and emerging market country indices: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Korea, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Russia, Singapore Free, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the United States and Venezuela. For more information, visit the MSCI Web site.

To construct an MSCI Country Index, every listed security in the market is identified. Securities are free float adjusted, classified in accordance with the Global Industry Classification Standard (GICS), and screened by size and liquidity. MSCI then constructs its indices by targeting for index inclusion 85% of the free float adjusted market capitalization in each industry group, within each country. By targeting 85% of each industry group, the MSCI Country Index captures 85% of the total country market capitalization while it accurately reflects the economic diversity of the market.

The MSCI EAFE� Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. As of April 2002 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

The MSCI EASEA Index (Europe, Australasia, Southeast Asia) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. The 19 countries present in the index are considered some of the world's major markets. For more information, visit the MSCI Web site.

The MSCI EM (Emerging Markets) Eastern Europe Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the emerging market countries of Eastern Europe, the Middle East & Africa. As of August 2002, the MSCI EM EMEA Index consisted of the following 10 emerging market country indices: Czech Republic, Hungary, Poland, Russia, Turkey, Israel, Jordan, Egypt, Morocco and South Africa. For more information, visit the MSCI Web site.

The MSCI EMF (Emerging Markets Free) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. As of April 2002 the MSCI EMF Index consisted of the following 26 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela. For more information, visit the MSCI Web site.

The MSCI EMF (Emerging Markets Free) Latin America Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in Latin America. As of April 2002 the MSCI EMF Latin America Index consisted of the following 7 emerging market country indices: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. For more information, visit the MSCI Web site.

The MSCI EMU (European Economic and Monetary Union) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance within EMU. As of April 2002 the MSCI EMU Index consisted of the following 11 developed market country indices: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain. For more information, visit the MSCI Web site.

The MSCI Europe Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of September 2002, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

MSCI Free indices reflect investable opportunities for global investors by taking into account local market restrictions on share ownership by foreigners. These restrictions can assume several forms: (1) specific classes of shares may be excluded from foreign investment; (2) specific securities or classes of shares for an individual company may have limits for foreign investors; (3) the combination of regulations governing qualifications for investment, repatriation of capital and income, and low foreign ownership limits may create a difficult investment environment for the foreign investor; and (4) specific industries, or classes of shares within a specific industry, may be restricted to foreign investors. Eight markets have Free indices.

On May 31, 2002, the second and final phase of the implementation of the Enhanced Methodology in the MSCI Standard Index Series will be complete. Therefore, all MSCI Equity Indices will be fully adjusted for free float as defined in the Enhanced Methodology Book. At that time all MSCI Equity Indices, regardless of 'Free' branding will be constructed and managed with a view to being fully investable from the perspective of international institutional investors.

The MSCI Hong Kong Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Hong Kong. It consists of equities from Hong Kong that capture 60% of the market capitalization of the country across all industry groups.

The MSCI Japan Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan.

The MSCI KOKUSAI Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the developed markets excluding Japan. As of April 2002 the MSCI KOKUSAI Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.

The MSCI Pacific Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in the Pacific. It measures the performance of stock markets in Australia, Hong Kong, Japan, New Zealand, and Singapore, and Malaysia.

The MSCI Pacific ex Japan Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in the Pacific, excluding Japan. It measures the performance of stock markets in Australia, Hong Kong, New Zealand, and Singapore, and Malaysia.

The MSCI World ex U.S. Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of April 2002 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.

The MSCI World ex US Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance, excluding the United States. As of April 2002 the MSCI World Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

The MSCI World ex UK Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance, excluding the United Kingdom. As of April 2002 the MSCI World Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United States.

The MSCI AC (All Country) Far East Free ex Japan Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East. As of April 2002 the MSCI AC Far East Free ex Japan Index consisted of the following 9 developed and emerging market country indices: China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore Free, Taiwan and Thailand.

The MSCI ACWI (All Country World Index) Free Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding Japan. As of April 2002 the MSCI ACWI Free Index consisted of the following 49 developed and emerging market country indices: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Jordan, Korea, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Russia, Singapore Free, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the United States and Venezuela.

The MSCI ACWI (All Country World Index) Free Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the United States. As of April 2002 the MSCI ACWI Free Index consisted of the following 49 developed and emerging market country indices: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Korea, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Russia, Singapore Free, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and Venezuela.

This benchmark is subset of the MSCI World index covering those securities whose primary operations are in industries related to metals and mining. The MSCI World Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of April 2002,the MSCI World Index consisted of the following 23 developed market country indices:Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.

For MSCI index series only. GR indicates that total return is calculated reinvesting gross dividends. This series approximates the maximum possible dividend reinvestment. The amount reinvested is the entire dividend distributed to individuals residing in the country of the company, but does not include tax credits.

For MSCI index series only. NR indicates that total return is calculated reinvesting net dividends. This series approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties.

Consists of the 1000 largest companies within the Russell 3000 index. Also known as the Market-Oriented Index, because it represents the group of stocks from which most active money managers choose. The returns we publish for the index are total returns, which include reinvestment of dividends. Frank Russell Company reports its indices as one-month total returns.

Made up of the 1000 largest companies within the Russell 3000 index. It is also known as the Market-Oriented Index because it represents the group of stocks from which most active money managers choose. The returns we publish for the index are total returns, which include reinvestment of dividends. This less-frequently cited version of the index weighs each of the components equally, while the more popular version weighs the components based upon their individual market capitalizations.

Market-capitalization weighted index of those firms in the Russell 1000 with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Market-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. The returns we publish for the index are total returns, which include reinvestment of dividends.

Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index. As of the latest reconstitution, the average market capitalization was approximately $885 million; the median market capitalization was approximately $541 million. The largest company in the index had an approximate market capitalization of $3.8 billion.

Measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.

Measures the performance of those Russell 2500 companies with higher price-to-book ratios and lower forecasted growth values.

Composed of the 3000 largest U.S. companies by market capitalization, representing approximately 98% of the U.S. equity market. The returns we publish for the index are total returns, which include reinvestment of dividends.

Composed of the 3000 largest U.S. companies by market capitalization, representing approximately 98% of the U.S. equity market. The returns we publish for the index are total returns, which include reinvestment of dividends. This less-frequently cited version of the index weighs each of the components equally, while the more popular version weighs the components based upon their individual market capitalizations.

Measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes.

Measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 25% of the total market capitalization of the Russell 1000 Index. As of the latest reconstitution, the average market capitalization was approximately $4.0 billion; the median market capitalization was approximately $2.9 billion. The largest company in the index had an approximate market capitalization of $12 billion.

Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable US equity market.

Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable US equity market.

Measures the performance of the companies in the Russell 3000 Index excluding the companies in the Standard & Poor's 500 Index, which represents approximately 22% of the total market capitalization of the Russell 3000 Index. This Index provides a performance standard for active managers looking for a liquid extended benchmark. The index is also viable for a passive investment strategy in the extended market. As of the latest reconstitution, the average market capitalization was approximately $1.1 billion; the median market capitalization was approximately $523 million. The index had a total market capitalization range of approximately $74.6 billion to $128 million.

Measures the performance of the 200 largest companies in the Russell 1000 Index, which represents approximately 74% of the total market capitalization of the Russell 1000 Index. As of the latest reconstitution, the average market capitalization was approximately $41 billion; the median market capitalization was approximately $21 billion. The index had a total market capitalization range of approximately $309 billion to $10.8 billion.

Market-weighted total return index that measures the performance of companies within the Russell Top 200 Index having higher price-to-book ratios and higher forecasted growth values. The Russell Top 200 Index includes the 200 firms from the Russell 3000 Index with the largest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Market-weighted total return index that measures the performance of companies within the Russell Top 200 Index having lower price-to-book ratios and lower forecasted growth values. The Russell Top 200 Index includes the 200 firms from the Russell 3000 Index with the largest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

The S&P SuperComposite 1500, a combination of the S&P 500, S&P Midcap 400, and S&P Smallcap 600 indices, provides a broad representation of the entire U.S. market, representing 87% of total U.S. equity market capitalization.

An index comprised of the largest 100 stocks (according to the market capitalization) in the S&P 500 index. The returns we publish for the index are total returns, which include reinvestment of dividends.

Includes approximately 10% of the capitalization of U.S. equity securities. These are comprised of stocks in the middle capitalization range. At the original time of screening, this was a $200 million to $5 billion market value range. Any midcap stocks already included in the S&P 500 are excluded from this index, which started on December 31, 1990. The level of the index reflects the total market value of all 400 component stocks relative to this date. A level of 135, for example, indicates that the market value of the index portfolio has risen 35% from December 31, 1990. The S&P 400 figure is presented as a total return.

A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. It measures the movement of the largest issues. Standard and Poor's chooses the member companies for the 500 based on market size, liquidity and industry group representation. Included are the stocks of industrial, financial, utility, and transportation companies. Since mid 1989, this composition has been more flexible and the number of issues in each sector has varied. The returns presented for the S&P 500 are total returns, including the reinvestment of dividends each month.

This small cap index consists of 600 domestic stocks chosen for market size, liquidity, and industry group representation. It is a market weighted index (stock price x shares outstanding), with each stock affecting the index in proportion to its market value. The S&P 600 figure is presented as a total return. For more information, visit the Standard & Poor's web site.

The Wil-Target Large Company Growth Index is a focused measurement of the large growth sector of the market and is used to track Wilshire Asset Managements Large Growth accounts. Companies listed in this index are large companies (with market capitalization currently extending down to approximately $1.9 billion) that have above average earnings and sales growth histories and fit a classic high-quality growth profile. Companies that do not fall clearly into the defined growth category are eliminated. It is typical to find securities in this index that have enjoyed long and successful growth trends. In addition, these companies typically have higher than average returns on equity and levels of profitability.

The Wil-Target Large Company Value Index is a focused measurement of the large value sector of the market. The Index consists of large companies (with market capitalization currently extending down to approximately $1.9 billion) that are monitored using a variety of relative value criteria, the goal of which is to capture the most attractive value opportunities available. A high-quality profile is required, eliminating companies that are undergoing adverse financial pressures. Companies that do not fall clearly into the defined value category are eliminated.

The Wil-Target Mid Cap 750 Universe is a measurement of the middle-capitalization companies in the Wil-Target Top 2500 Universe. The Universe is an overlay of the large- and small-capitalization universes, and currently ranges from the $4.3 billion to the $645 million market-capitalization level.

The Wil-Target Mid Cap Growth Index is a focused measurement of the mid cap growth sector of the market. Companies listed in this index are middle-capitalization companies, with market capitalization currently in the range of $4.3 billion to $645 million. These companies have above average earnings and sales growth histories and fit a classic high-quality growth profile. Companies that do not fall clearly into the defined growth category are eliminated. These companies typically have higher than average returns on equity and levels of profitability.

The Wil-Target Mid Cap Value Index is a focused measurement of the middle capitalization value sector of the market. The index consists of mid-cap companies with a current market capitalization range of $4.3 billion to $645 million. These companies are monitored using a variety of relative value criteria in order to capture the most attractive value opportunities available. A high-quality profile is required, eliminating companies that are undergoing adverse financial pressures. Companies that do not fall clearly into the defined value category are eliminated.

The Wil-Target Next 1750 Universe consists of the smallest companies in the Wil-Target Top 2500 Universe. The Next 1750 consists of the 1750 stocks in the Top 2500 that are not included in the Wil-Target Top 750 Universe. The Next 1750 Universe currently extends down to approximately the $190 million market capitalization level.

The Wil-Target Small Company Growth Index is a focused measurement of the small growth sector of the market. Companies listed in this index are small capitalization companies, with a market capitalization currently ranging between approximately $1.9 billion and $190 million. These companies have above average earnings and sales growth histories, although this growth need not be as steady over longer periods required of a larger company. Companies that do not fall clearly into the defined growth category are eliminated. These companies typically have higher than average returns on equity and levels of profitability and often pay little or no dividends.

The Wil-Target Small Company Value Index is a focused measurement of the small capitalization value sector of the market. The index consists of small companies with a current market capitalization range of $1.9 billion to $190 million. These companies are monitored using a variety of relative value criteria in order to capture the most attractive value opportunities available. A high quality profile is required, eliminating companies that are undergoing adverse financial pressures. Companies that do not fall clearly into the defined value category are eliminated.

The Wil-Target Top 2500 Universe consists of the 2500 largest common stocks by market capitalization in the Wilshire 5000 Index in June of each year.

The Wil-Target Top 750 Universe consists of the 750 largest companies by market capitalization in the Wil-Target Top 2500 Universe. Together with the Wil-Target Next 1750 Universe, it makes up the Wil-Target Top 2500.

Listed for small-company funds, measures the performance of all U.S. common equity securities excluding the stocks in the S&P 500. Wilshire indices are reported to Morningstar as total returns with dividends reinvested.

Measures the performance of all U.S. common equity securities, and so serves as an index of all stock trades in the United States. The returns we publish for the index are total returns, which include reinvestment of dividends. This less-frequently cited version of the index weighs each of the components equally, while the more popular version weighs the components based upon their individual market capitalizations.

Introduced in 1997, Wilshires was the first broad based index created to capture the performance of the entire Internet market sector, a sector that revolutionized the investment landscape and continues to show dynamic returns. The index is a measure of the price and total return performance of publicly traded Internet stocks. Wilshires Internet index is the most extensive measure of Internet stocks available today.

Represents the largest 750 domestic stocks within the Wilshire 5000 universe, based on market capitalization as of June 30.

The Wilshire Largecap Growth index is a market cap weighted index including securities from the Wilshire Large Cap 750 index that meet Wilshires definition of growth. The index is an excellent way to evaluate this sector of the market and to gauge the performance of managers focusing on this particular style. An equal weighting of this index, along with the Wilshire Largecap Value index, results in approximately the same return as the Wilshire Large Cap 750.

Key variables used by the value portfolios include price/earnings ratio, price/book ratio, and yield. Variables employed for the growth portfolio screenings include sales growth, return on equity, and dividend payout. The orientation of each style portfolio is one that eliminates those companies, which do not fit the style by utilizing the various criteria selected, as opposed to establishing explicit cutoffs for each measure. All criteria are relative so that the portfolios are not affected by the changing levels of these measures during different market periods. This process ensures that each style focus is constantly maintained. The returns we publish for the index are total returns, which include reinvestment of dividends.

The Wilshire Largecap Value index is a market cap weighted index including securities from the Wilshire Large Cap 750 index that meet Wilshires criteria for value. The index is an excellent way to evaluate this sector of the market and to gauge the performance of managers focusing on this particular style. An equal weighting of this index, along with the Wilshire Largecap Growth index, results in approximately the same return as the Wilshire Large Cap 750.

Key variables used by the value portfolios include price/earnings ratio, price/book ratio, and yield. Variables employed for the growth portfolio screenings include sales growth, return on equity, and dividend payout. The orientation of each style portfolio is one, which eliminates those companies that do not fit the style by utilizing the various criteria selected, as opposed to establishing explicit cutoffs for each measure. All criteria are relative so that the portfolios are not affected by the changing levels of these measures during different market periods. This process ensures that each style focus is constantly maintained. The returns we publish for the index are total returns, which include reinvestment of dividends.

The Wilshire Mid Cap 500 is an index of the middle capitalization securities in the Wilshire 5000 index. It measures the performance of the 501st largest to the 1000th largest stocks, by market capitalization as of June 30.

The Wilshire Midcap Growth index is a market cap weighted index including securities from the Wilshire Mid Cap 500 index with growth characteristics as defined by Wilshire. The index is an excellent way to evaluate this sector of the market and to gauge the performance of managers focusing on this particular style. An equal weighting of this index, along with the Wilshire Mid Cap Value index, results in approximately the same return as the Wilshire Mid Cap 500 index.

Key variables used by the value portfolios include price/earnings ratio, price/book ratio, and yield. Variables employed for the growth portfolio screenings include sales growth, return on equity, and dividend payout. The orientation of each style portfolio is one that eliminates those companies that do not fit the style by utilizing the various criteria selected, as opposed to establishing explicit cutoffs for each measure. All criteria are relative so that the portfolios are not affected by the changing levels of these measures during different market periods. This process ensures that each style focus is constantly maintained. The returns we publish for the index are total returns, which include reinvestment of dividends.

The Wilshire Midcap Value index is a market cap weighted index including securities from the Wilshire Mid Cap 500 index with value characteristics as defined by Wilshire. The index is an excellent way to evaluate this sector of the market and to gauge the performance of managers focusing on this particular style. An equal weighting of this index, along with the Wilshire Mid Cap Growth index, results in approximately the same return as the Wilshire Mid Cap 500 index.

Key variables used by the value portfolios include price/earnings ratio, price/book ratio, and yield. Variables employed for the growth portfolio screenings include sales growth, return on equity, and dividend payout. The orientation of each style portfolio is one that eliminates those companies that do not fit the style by utilizing the various criteria selected, as opposed to establishing explicit cutoffs for each measure. All criteria are relative so that the portfolios are not affected by the changing levels of these measures during different market periods. This process ensures that each style focus is constantly maintained. The returns we publish for the index are total returns, which include reinvestment of dividends.

Wilshire Associates introduced the Wilshire Real Estate Securities Index in September 1991 with the purpose was to create an index of publicly traded real estate equity securities without the limitations of other appraisal based indexes. In addition, the Wilshire Real Estate Securities Index was developed to offer a market based index that is more reflective of real estate held by pension funds.

Introduced in 1991, the Wilshire REIT index is intended as a broad measure of the performance of publicly traded real estate equity. The index is market-capitalization weighted of publicly traded real estate securities, such as Real Estate Investment Trusts (REIT), Real Estate Operating Companies (REOC), and partnerships. The index is comprised of companies whose charter is the equity ownership and operation of commercial real estate.

The Wilshire Small Cap 1750 measures small capitalization stocks. It is derived from the Wilshire 5000. The Small Cap 1750 tracks the 751st to the 2,500th largest stocks from the 5000 as of June 30.

The Wilshire Smallcap Growth index is a market cap weighted index including securities from the Wilshire Small Cap 1750 index with growth characteristics as defined by Wilshire. The index is an excellent way to evaluate this sector of the market and to gauge the performance of managers focusing on this particular style. An equal weighting of this index, along with the Wilshire Smallcap Value index, results in approximately the same return as the Wilshire Small Cap 1750 index.

Key variables used by the value portfolios include price/earnings ratio, price/book ratio, and yield. Variables employed for the growth portfolio screenings include sales growth, return on equity, and dividend payout. The orientation of each style portfolio is one that eliminates those companies that do not fit the style by utilizing the various criteria selected, as opposed to establishing explicit cutoffs for each measure. All criteria are relative so that the portfolios are not affected by the changing levels of these measures during different market periods. This process ensures that each style focus is constantly maintained. The returns we publish for the index are total returns, which include reinvestment of dividends.

The Wilshire Smallcap Value index is a market cap weighted index including securities from the Wilshire Small Cap 1750 index with value characteristics as defined by Wilshire. The index is an excellent way to evaluate this sector of the market and to gauge the performance of managers focusing on this particular style. An equal weighting of this index, along with the Wilshire Smallcap Growth index, results in approximately the same return as the Wilshire Small Cap 1750 index.

Key variables used by the value portfolios include price/earnings ratio, price/book ratio, and yield. Variables employed for the growth portfolio screenings include sales growth, return on equity, and dividend payout. The orientation of each style portfolio is one that eliminates those companies that do not fit the style by utilizing the various criteria selected, as opposed to establishing explicit cutoffs for each measure. All criteria are relative so that the portfolios are not affected by the changing levels of these measures during different market periods. This process ensures that each style focus is constantly maintained. The returns we publish for the index are total returns, which include reinvestment of dividends.

A capitalization-weighted index representing the aggregate value of the approximately 750 firms listed on the American Stock Exchange. The AMEX announced in 1998 that it will merge its listings with the members of the NASDAQ National Market. The figure reported for the AMEX Composite is a price return that does not include the reinvestment of dividends paid by member firms.

A market-value weighted index which includes both convertible- and preferred-bonds with B- or better S&P ratings and a minimum size of $50 million, and, for preferreds, a minimum of 500,000 shares outstanding and a minimum issue size of $50 million. This index also includes dollar-denominated euro-convertible bonds, issued by U.S. domiciled companies. Euro-convertible bonds must have a B- or better S&P rating, and a minimum issue size of $100 million. Morningstar reports the one-month total return for this index.

An unmanaged, trader priced index constructed to mirror the characteristics of the high yield bond market. The index includes issues rated BB and below by S&P or Moodys with par amounts greater than $75 million. Preferred issues, US dollar denominated foreign issues and 144A securities meeting the above condition are also included. Morningstar receives and publishes this figure as a monthly total return. Call 212-325-3175 for more information.

The Emerging Market Sovereign Bond indexes cover US dollar-denominated external debt issued by sovereigns whose foreign debt is rated at or below BBB+/Baa1 by S&P/Moodys, together with Brady obligations of these issuers. In order to ensure relevance of the securities and to maintain a high quality of information, individual issues must have at least US$500 million outstanding to be eligible. Excludes defaulted sovereigns and limits the exposure to any one issuer by adopting a simple algorithm to cap at US$15 billion the total par amount of any single issuer's debt in the index.

A market-capitalization weighted index consisting of the government bond markets of the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Netherlands, Spain, Sweden, Switzerland, and United Kingdom. Country eligibility is determined based upon market capitalization and investability criteria. The index includes all fixed-rate bonds with a remaining maturity of one year or longer and with amounts outstanding of at least the equivalent of US$25 million. Government securities typically exclude floating or variable rate bonds.

Johannesburg Stock Exchange Gold index tracks the performance of gold-related companies on the Johannesburg stock exchange. The majority of these are gold-mining stocks. The reported figure is a price return that does not include the reinvestment of dividends.

This is a benchmark for investments that invest in convertible bonds and convertible preferred stocks. Convertible bonds allow investors to convert the bonds into shares of stock, usually at a preset price. These securities thus act a bit like stocks and a bit like bonds.

A hypothetical portfolio comprised of a weighted blend of 50% five-year stable value contracts, 30% three-year stable value contracts and 20% 30-day prime commercial paper. The five-year component consists of 60 hypothetical five-year stable value contracts, one purchased at the prior month end's illustrative rate at the beginning of each month for the prior 60 months. The three-year component consists of 36 hypothetical three-year stable value contracts, one purchased at the prior month end's illustrative rate at the beginning of each month for the prior 36 months. For more information call Morley Capital Management at 800-548-4806.

Measures the performance of all issues listed in the NASDAQ Stock Market, except for rights, warrants, units, and convertible debentures. Morningstar reports the NASDAQ Composite as a price return.

NYSE stands for New York Stock Exchange. This index serves to function as a comprehensive measure of the market trend for the benefit of investors who are concerned with general stock market price movements. The index is a composite of all common stocks listed on the NYSE and four sub-groups -- Industrial, Transportation, Utility, and Finance. The return Morningstar reports is a price return; it does not reflect the influence of reinvested dividends. For more information about the NYSE, call (212) 656-3000.

The Pacific Stock Exchange. A price-weighted, broad-based index of 100 exchange-listed and over the counter stocks. This index populates fifteen industries and, as of the end of 1995, it represented a market capitalization of nearly $600 billion. The industry groups include biotechnology, CAD/CAM, data communications, micro-computer manufacturing, office automation equipment, semiconductor capital equipment manufacturing, data storage and processing, large diversified computer manufacturing, electronic equipment, information processing, medical technology, semiconductor manufacturing, software products, and test, analysis, and instrumentation equipment.

Non-U.S.-Dollar World Govt This index covers thirteen government-bond markets: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, and the United Kingdom. For inclusion in this index, a market must total at least (U.S.) $20 billion for three consecutive months. Also, a country will be removed if there are barriers to entry. For example, if a market actively discourages foreign investor participation or does not show commitment to its own policies, it is not eligible for inclusion in this index.