Performance Terms

ADJ
The letters "ADJ" after an index (Example: S&P 500 ADJ) means that the index includes dividends in total return as well as appreciation. All Century Management performance composites include dividends as part of the total return.

CFA Institute (formerly known as AIMR)
The Association for Investment Management and Research (AIMR), which changed its name on May 9, 2004 to the CFA Institute, is an international, nonprofit organization of more than 50,000 investment practitioners and educators in over 100 countries. Founded in January 1990, AIMR was created from the merger of the Financial Analysts Federation (FAF) and the Institute of Chartered Financial Analysts (ICFA). The FAF was originally established in 1947 as a service organization for investment professionals. The ICFA was founded in 1959 to examine candidates and award the Chartered Financial Analyst (CFA) designation.

The CFA Institute's mission is to serve its members and investors as a global leader in educating and examining investment managers and analysts and sustaining high standards of professional conduct. The CFA Institute's membership is global in scope, and its activities are worldwide.

The Research Foundation of CFA Institute sponsors practitioner-oriented research through funding and publishing a diverse assortment of monographs, tutorials, and research papers to broaden investment professionals' knowledge and understanding of their field.

The CFA Institute offers services in three broad categories: Education through seminars and publications; Professional Conduct and Ethics; and Standards of Practice and Advocacy.

CFA Institute's members are employed as securities analysts, portfolio managers, strategists, consultants, educators, and other investment specialists. These professionals practice in a variety of fields, including investment counseling and management, banking, insurance, and investment banking and brokerage firms.

CM
This is the acronym for Century Management. CM is a licensed, registered investment advisory firm. The firm was started in 1974 by Arnolde Van Den Berg. The legal name for the firm is Van Den Berg Management Inc. DBA Century Management. The CM corporate office is located at 805 Las Cimas Parkway, Suite 430, Austin, Texas 78746. Telephone is 800-664-4888 or 512-329-0050. More information on CM can be found on this website.

CM Value I Equities Only
"CM equities only" represents the return from the equities within the CM Value I Composite.

CM Value I Total Account
Includes all asset classes such as equities, fixed income, money market funds and cash within our CM Value I Composite (also known or referred to as the CM Standard Composite).

CM Value I Composite (also known or referred to as the Standard Composite)
This consists of the accounts of every client both past and present who has had an account with Century Management, for which the investment management charge was fee based and the brokerage fee was transaction based, since the company's inception in September, 1974. The performance of the accounts in this composite is based on all buys, sells, dividends, interest, deposits, and withdrawals for each and every client of record.

CM Value II Composite (also known as CM Bundled Composite )
This consists of the accounts of every client both past and present who has had an account with Century Management, for which the investment management charge was fee based and the brokerage fee was asset based, since 1984. The performance of the accounts in this composite is based on all buys, sells, dividends, interest, deposits, and withdrawals for each and every client of record.

Ernst & Young, LLP
Ernst & Young is one of the world's leading professional services and accounting organizations. Ernst & Young audits 18.4% of Business Week's Global 1,000 companies.

Global Investment Performance Standards (GIPS)
The Global Investment Performance Standards (GIPS) are ethical standards to be used by investment Managers for creating performance presentations that ensure fair representation and full disclosure. Global standardization of investment performance reporting will allow investors to compare investment managers and will allow managers to compete for new business in foreign markets.

Gross of Fees
This means before any fees are taken from the account, including those charged by investment advisor, custodian and broker.

Net of Fees
This means after all fees have been taken from the account, including those charged by investment advisor, custodian and broker.

Time-Weighted Return
A "time-weighted" rate of return eliminates the effects of client-initiated additions and withdrawals that are beyond the control of the manager. The result is an accurate and unbiased measure of investment performance that is the same with or without cash-flows.

In calculating a time-weighted return, a portfolio is evaluated each time there is a cash flow transaction in the account (i.e., new purchases and sales, dividend and income payments, deposits or withdrawals). The performances of periods between cash flows are linked together to reflect a return for the whole period. Daily transaction data is used in the linking of each cash flow so that we may achieve the most accurate return calculation.

Full Glossary

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