EFTA01377071.pdf

CIO Insights -August 2016 Glossary 19 Global Industry Classification Standard Real Estate Investment Trust (REIT) The Global Industry Classification Standard was A Real Estate Investment Trust (REIT) invests in and developed by Standard and Poor's and Morgan Stanley sometimes operates income-producing real estate, either Capital International (MSCI) to define equities sectors. directly or through mortgages. Liquidity Risk premia Liquidity refers to the degree to which an asset or Risk premia refer to the return in excess of the risk-free security can be bought or sold in the market without rate of return that an investment is expected to yield. affecting the asset's price and to the ability to convert an asset to cash quickly. S&P 500 Index The S&P 500 Index includes 500 leading U.S. companies MSCI AC World Index capturing approximately 80% coverage of available U.S. The MSCI AC World Index captures large- and mid-cap market capitalization. companies across 23 developed and 23 emerging market countries. Strategic asset allocation A strategic asset allocation process involves setting MSCI ACWI ex U.S. Index preferred allocations for asset classes on a medium to The MSCI ACWI ex U.S. Index captures large and mid long-term time horizon. cap representation across 22 of 23 Developed Markets (DM) countries (excluding the U.S.) and 23 Emerging Style investing Markets (EM) countries. With 1,859 constituents, the Style investing refers to an investor's overall investment index covers approximately 85% of the global equity approach (for example a preference for certain types of opportunity set outside the U.S. stocks). MSCI World Index Tactical asset allocation The MSCI World Index captures large and mid-cap A tactical asset allocation approach changes allocations representation across 23 developed-market countries. to benefit from shorter-term market moves. Negative convexity Valuation Negative convexity is used to describe a bond the price Valuation attempts to quantify the attractiveness of an of which reacts less to yield changes at lower yields than asset, for example through looking at a firm's stock price a linear function would suggest. in relation to its earnings. Quantitative easing (QE) Volatility Quantitative easing (QE) is an unconventional monetary Volatility measures the dispersion of returns for an policy tool, in which a central bank conducts broad- individual security or market. based asset purchases. Past performance is not indicative of future returns. Readers should refer to the explanatory notes at the end of this document. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0073612 CONFIDENTIAL SONY GM_00219796 EFTA01377071