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Century
Management
Glossary of 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.
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