Global Disclosures Index Definitions

CPI – The Consumer Price Index (“CPI”) is a measure of inflation compiled by the US Bureau of Labor Studies

PMI – The Institute of Supply Management (“ISM”) Purchasing Managers Index (“PMI”) is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

DJIA – The Dow Jones Industrial Average (“DJIA”) is a price-weighted average of 30 actively traded “blue chip” stocks, primarily industrials, but includes financials and other service-oriented companies. The components, which change from time to time, represent between 15% and 20% of the market value of New York Stock Exchange (“NYSE”) stocks.

NASDAQ – The Nasdaq Composite Index is a market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (“REIT”s) and tracking stocks. The index includes all Nasdaq listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (“ETF”s) or debentures.

S&P 500 – The Standard & Poor's 500 (“S&P 500”) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market value weighted index with each stock's weight in the index proportionate to its market value.

Russell 2000 – The Russell Microcap Index is a capitalization weighted index of 2,000 small cap and micro-cap stocks that captures the smallest 1,000 companies in the Russell 2000, plus 1,000 smaller U.S.-based listed stocks. The broad index is designed to present an unbiased collection of the smallest tradable securities that still meet exchange listing requirements such as over-the-counter (“OTC”) stocks and pink sheet securities are excluded.

ISM Manufacturing Index – An index that assesses the state of US manufacturing sector by surveying executives on expectations for future production, new orders, inventories, etc.

VIX – The VIX or Volatility Index shows the market's expectation of 30 – day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".

PPI – The Producer Price Index (“PPI”) is a family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller.

MSCI - Morgan Stanley Capital International (“MCSI)” creates and maintains several of the most widely used market indices.

MSCI EAFE Index (Europe, Australasia, Far East): a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

MSCI KLD 400 Social Index: a free float-adjusted market capitalization index designed to provide exposure to U.S. companies that have positive Environmental, Social and Governance (ESG) characteristics.

MSCI KLD 400 Social Index: consists of 400 companies selected from the MSCI USA Investable Market Index (IMI).

MSCI World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

MSCI All Country World Index ex USA Investable Market Index (IMI): captures large, mid and small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 23 Emerging Markets (EM) countries*. With 6,062 constituents, the index covers approximately 99% of the global equity opportunity set outside the US.

MSCI Emerging Markets Index: a float-adjusted market capitalization index that consists of indices in 21 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

Barclays – Barclays Bank PLC, through its Barclays Capital division, (“Barclays”) creates and maintains several of the most widely used market indices.

Barclays Capital Aggregate Bond Index: a market capitalization-weighted index, meaning the securities in the index are weighted according to the market size of each bond type. Most U.S. traded investment grade bonds are represented. Municipal bonds and Treasury Inflation-Protected Securities are excluded, due to tax treatment issues. The index includes Treasury securities, Government agency bonds, Mortgage-backed bonds, corporate bonds, and a small amount of foreign bonds traded in U.S. The Barclays Capital Aggregate Bond Index is an intermediate term index.

Barclays Global Aggregate Bond Index: provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, and the Asian-Pacific Aggregate Indexes. It also includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality and maturity.

Barclay’s Intermediate Bond Index (government & corporate bonds): measures the performance of U.S. Dollar denominated U.S. Treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years.

Barclays 5 Year Municipal Bond Index: a capitalization weighted bond index created by Barclays, intended to be representative of major municipal bonds of all quality ratings with an average maturity of approximately five years.

NIKKEI – The Nikkei 225 Index (“Nikkei”) is a price-weighted stock market index that tracks the performance of 225 leading companies listed on the Tokyo Stock Exchange. It is widely used as a benchmark for the Japanese equity market.

HANG SENG - The Hang Seng Index (“HSI”) is a free-float-adjusted, market-capitalization-weighted index that tracks the performance of the largest companies listed on the Hong Kong Stock Exchange (“HKEX”). It serves as the primary benchmark for the Hong Kong equity market and includes companies across finance, technology, real estate, and other sectors.

FTSE - The Financial Times Stock Exchange (“FTSE”) is a group of stock market indices, most notably the FTSE 100, which tracks the performance of the 100 largest companies by market capitalization listed on the London Stock Exchange.

Russel 1000 - The Russell 1000 is a market capitalization-weighted index of 1,000 of the largest companies in the U.S. equity markets, the Russell 1000 is a subset of the Russell 3000 Index. The Russell 1000 comprises over 90% of the total market capitalization of all listed U.S. stocks and is considered a bellwether index for large cap investing.

Definitions and Disclosures Specific to Commonly Used Terms

529 Plan - A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. Every state offers at least one 529 plan. Before buying a 529 plan, you should inquire about the particular plan and its fees and expenses. You should also consider that certain states offer tax benefits and fee savings to in-state residents. Whether a state tax deduction and/or application fee savings are available depends on your state of residence. For tax advice, consult your tax professional. Non-qualifying distribution earnings are taxable and subject to a 10% tax penalty.

Alternative Investments - Alternative investments, (e.g., hedge funds, commodities, managed futures, etc.) involve a high degree of risk and often engage in leveraging and other speculative investments practices that may increase risk of investment loss. Alternative investments can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, often charge higher fees which may offset any profits, and in many cases the underlying investments are not transparent and are known only to the investment manager.

Crypto - Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. Cryptocurrencies are not covered by either FDIC or SIPC insurance. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.

Purchasing cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing.

Diversification - Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Emerging Markets Investing - Investments in emerging markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries.

Equities - Investing in securities involves risk of loss that clients should be prepared to bear. No investment process is free of risk; no strategy or risk management technique can guarantee returns or eliminate risk in any market environment. There is no guarantee that your investment will be profitable. Past performance is not a guide to future performance. The value of investments, as well any investment income, is not guaranteed and can fluctuate based on market conditions. Diversification does not assure a profit or protect against loss.

ETF - An exchange-traded fund (“ETF”) is a type of investment fund that is traded on stock exchanges, like stocks, and typically tracks a specific index, sector, or asset class, Exchange-traded funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Index - Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices do not account for any fees, commissions or other expenses that would be incurred. Returns do not include reinvested dividends.

International Investing - Investing in international markets offers diversification benefits but comes with additional risks, including currency fluctuations, political instability, economic uncertainty, and regulatory differences. Emerging markets may experience greater volatility and liquidity concerns.

Municipal Bonds - Municipal bonds are generally illiquid and yields generally increase with risk and time to maturity. Municipal bonds generate tax-free income and therefore pay lower interest rates than taxable bonds. Consider the investment objectives, terms, risks and time horizon before investing and consult with your tax professional.

Mutual Funds - A mutual fund consists of a portfolio of stocks, bonds, or other securities and is overseen by a professional fund manager. Consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Options - Options trading involves buying or selling contracts that give the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specific price (strike price) by a certain date (expiration date). Options are not suitable for all investors. There are risks involved in any option strategy. Before entering into any options transaction, it is recommended that individuals read and understand the “Characteristics and Risks of Standardized Options” booklet offered by the Options Clearing Corporation which outlines the purposes and risks of option transactions.

Risk Tolerance - Risk tolerance is an investor’s general ability to withstand risk inherent in investing. There is no guarantee a recommended portfolio will accurately reflect your tolerance to risk.

All investments have an inherent level of risk. The value of your investment will fluctuate with the value of the underlying investments. You could receive back less than you initially invested and there is no guarantee that you will receive any income.

Registered Investment Adviser (“RIA”) – Registration with the Securities and Exchange Commission (“SEC”) as an investment advisor does not imply a certain level of skill or training.

Sector Strategies - Portfolios that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks.

Small Cap - Small capitalization securities involve greater issuer risk than larger capitalization securities, and the markets for such securities may be more volatile and less liquid. Specifically, small capitalization companies may be subject to more volatile market movements than securities of larger, more established companies, both because the securities typically are traded in lower volume and because the issuers typically are more subject to changes in earnings and prospects.

Target Date Funds - A Target Date Fund (“TDF”) is a type of investment fund designed to automatically adjust its asset allocation over time based on a specific target retirement date. These funds typically shift from a more growth-oriented strategy (stocks) to a more conservative approach (bonds and cash equivalents) as the target date approaches.

Tax Advantaged - Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free when certain conditions are met. Use of the term “tax advantaged” implies that the contract will be advantaged for all, when in fact whether or not the payout has an “advantage” depends on each individual’s tax situation. The “advantage” is merely a return of principal, the function of the account does nothing to strategically provide any advantage.

Variable Annuity - A variable annuity is a contract with an insurance company where you invest in a range of investment options, typically mutual funds, and the value of your investment, and the payouts you receive, fluctuate based on the performance of those investments. Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.