TABLE OF CONTENTS


DWM Reports
Definitions

Indices
Bloomberg 1-3 Year Government / Credit Bond:
The Bloomberg US Government/Credit 1-3 Year index measures the performance of short-term government and corporate fixed-rate debt issues that have a maturity ranging from 1-3 years.

Bloomberg US Aggregate Bond:
The Bloomberg US Aggregate Bond Index is 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 Bloomberg Barclays US Aggregate Bond Index is an intermediate term index.

Dow Jones Industrial Average:
The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally considered the leaders in their industry.

S&P 500 (TR) Index:
The S&P 500 Index, or the Standard & Poor's 500 Index, is a market-capitalization-weighted index of the 500 largest publicly-traded companies in the U.S. It is not an exact list of the top 500 U.S. companies by market capitalization because there are other criteria to be included in the index. The index is widely regarded as the best gauge of large-cap U.S. equities.

MSCI EAFE Index (TR Net):
The EAFE Index is a stock index offered by MSCI that covers non-U.S. and Canadian equity markets. It serves as a performance benchmark for the major international equity markets as represented by 21 major MSCI indices from Europe, Australasia, and the Middle East.

MSCI Emerging Markets Index (TR Net):
The MSCI Emerging Markets Index is used to measure the financial performance of companies in fast-growing economies around the world. The index tracks mid-cap and large-cap stocks in 27 countries, dominated by Chinese, Taiwanese, and South Korean companies.

MS Category Avg-Commodities Broad Basket:
This is measurement of a group of assets in the commodity space and provides an indication on the direction of commodities as indicated by the underlined components. This broad index is used as an indicative measure for commodity assets and should not be considered an investment asset.

Consumer Price Index:
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living. The CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.

Performance-Related Information
Annualized – Annualization gives context to the growth or decline of an investment based on the amount of time it has been around and refers to how an advisor can calculate more of an annual average rate of return versus a cumulative, running performance number. The only difference between an annualized return and an unannualized (cumulative) return is the amount of time included and whether or not time is factored into the equation.

Capital Gains, Long Term (LT) – Profit realized from the sale of personal or investment property that has been held for more than one year; often given more favorable tax treatment than short term gains.

Capital Gains, Short Term (ST) – Profit realized from the sale of personal or investment property that has been held for one year or less taxed at the taxpayer’s top marginal tax rate or regular income tax bracket.

Cost Basis – The original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends, and return of capital distributions.

Current Yield – Current yield percentage is calculated by taking the EAI and dividing the amount by the market value.

Dividends – The distribution of a company’s earnings to its shareholders, typically determined by the company’s board of directors.

Estimated Annual Income ("EAI") – EAI is calculated as an annual distribution rate based on the most recent dividend a company paid multiplied by the number of times per year it typically pays dividends prior to the report date. EAI estimates the income each asset will receive for the next 12 months.

Gain/Loss – The difference between the asset’s cost basis and the sale value. Realized gains are often subject to capital gains tax depending on the holding period. Realized losses can typically be used to offset capital gains for tax purposes.

Internal Rate of Return (IRR) – Measures the compound growth rate of an investment portfolio including cash flows into or out of the portfolio.

Original Cost Basis – The price you paid for an asset, plus any fees or commissions associated with the purchase.

Proceeds – The amount received following the sale of an asset minus all costs and expenses that have been deducted from the gross proceeds.

Qualified Dividends – Dividends which have held for at least a specified minimum period of time, known as a holding period, to be taxed at long term capital gains tax rates.

Time-Weighted Return (TWR) – Measures the compound growth rate of an investment portfolio excluding cash flows into or out of the portfolio.

Total Original Cost – The total price paid to acquire an asset, including the purchase price and all related costs.

Unrealized Gains and Losses – The change in value of an investment that has occurred since you bought it but has not yet been realized by selling the asset.

Portfolio Risk Categories
Large Cap is a label for companies or funds with a market capitalization value of more than $10 billion. It also contains subsets of large cap like large cap growth, large cap value, large cap blend and large cap core.

Mid Cap is a label for companies or funds with a market capitalization value between $2 billion and $10 billion. It also contains subsets of mid cap like mid cap growth, mid cap value, mid cap blend and mid cap core.

Small Cap is a label for companies or funds with a market capitalization value of less than $2 billion. It also contains subsets of small cap like small cap growth, small cap value, small cap blend and small cap core.

International Developed is a label for companies or funds that are, or contain, non-US companies headquartered in Developed Countries like Canada, Australia, Europe and Japan.

International Developing is a label for companies or funds that are, or contain, non-US companies NOT headquartered in Developed Countries like Canada, Australia, Europe and Japan.

Alternative is a placeholder label for many equity securities that do not match the other labels listed or are the following types of securities, Commodities, REITS, Preferreds, Balanced funds, Target Date Funds etc.

Short-Term Bond is a label for fixed income securities with maturities of 4 years or less include U.S. government Treasury bills, bankers' acceptances, corporate commercial paper, etc.

Intermediate-Term Bond is a label used for bonds or funds with maturity dates set for between four and 10 years.

Long-Term Bond is a label used for bonds or funds with maturity dates greater than 10 years.

TIPs are a label for Treasury inflation-protected securities issued by the U.S. government and are indexed to inflation.

Municipal Bond is a label for funds holding bonds issued by a state, municipality, county, or special purpose district (such as a public school or airport) to finance capital expenditures. Municipal bond funds are exempt from federal tax.

Corporate Bond is a label for funds that concentrate on bonds issued by corporations.

World Bond is a label for funds that typically invest 40% or more of their assets in fixed-income instruments issued outside of the U.S.

High Yield Bond is a label for funds that concentrate on lower-quality bonds and generally offer higher yields.

Nontraditional Bond is a label for funds that pursue strategies divergent in one or more ways from conventional practice or core bonds in the broader bond-fund universe.

Non-Sweep MMF is a label for money market funds that must be purchased or sold and are not sweep money market funds.

Cash equivalents include U.S. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper, and other money market instruments.

Uncategorized is a temporary label used by DWM for securities awaiting official designation to a specified DWM risk category.


Target Allocation Reports
Definitions

Average Effective Duration: Average effective duration is a time measure of a bond’s interest rate sensitivity. Average effective duration for a portfolio is a weighted average of the duration of the underlying fixed income securities within the portfolio.

Average Effective Maturity: Average effective maturity is a weighted average of all the maturities of the bonds in the portfolio, computed by weighing each maturity date by the market value of the security.

Equity Style / Capitalization
Morningstar offers visual representations that aim to provide easy to understand positioning characteristics for a particular portfolio called equity style boxes. The goal is to provide decision makers with tools for comparing assets and how well they fit together. As reflected on the horizontal axis, companies are grouped together based on investment style making up 3 categories called Value, Blend, and Growth. Based on company’s market capitalization, Morningstar groups companies into 3 categories consisting of Large, Medium, and Small as reflected on the vertical axis.
Large Value: Large‐value portfolios invest primarily in big U.S. companies that are less expensive or growing more slowly than other large‐cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large‐cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). Category Group Index: S&P 500 TR, Category Index: Russell 1000 Value TR USD, Morningstar Index: Morningstar US Large Val TR USD 
Large Blend: Large‐blend portfolios are fairly representative of the overall U.S. stock market in size, growth rates, and price. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. These portfolios tend to invest across the spectrum of U.S. industries, and owing to their broad exposure, the portfolios’ returns are often similar to those of the S&P 500 Index. Category Group Index: S&P 500 TR, Category Index: Russell 1000 TR USD, Morningstar Index: Morningstar US Large Cap TR USD 
Large Growth: Large‐growth portfolios invest primarily in big U.S. companies that are projected to grow faster than other large‐cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields). Most of these portfolios focus on companies in rapidly expanding industries. Category Group Index: S&P 500 TR, Category Index: Russell 1000 Growth TR USD, Morningstar Index: Morningstar US Large Growth TR USD 
Mid‐Cap Value: Some mid‐cap value portfolios focus on medium‐size companies while others land here because they own a mix of small‐, mid‐, and large‐cap stocks. All look for U.S. stocks that are less expensive or growing more slowly than the market. The U.S. mid‐cap range for market capitalization typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S equity market. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). Category Group Index: S&P 500 TR, Category Index: Russell Midcap Value TR USD, Morningstar Index: Morningstar US Mid Val TR USD 
Mid‐Cap Blend: The typical mid‐cap blend portfolio invests in U.S. stocks of various sizes and styles, giving it a middle‐of‐the‐road profile. Most shy away from high‐priced growth stocks but aren’t so price‐conscious that they land in value territory. The U.S. mid‐cap range for market capitalization typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. Category Group Index: S&P 500 TR, Category Index: Russell Midcap TR USD, Morningstar Index: Morningstar US Mid Cap TR USD 
Mid‐Cap Growth: Some mid‐cap growth portfolios invest in stocks of all sizes, thus leading to a mid‐cap profile, but others focus on midsize companies. Mid‐cap growth portfolios target U.S. firms that are projected to grow faster than other mid‐cap stocks, therefore commanding relatively higher prices. The U.S. mid‐cap range for market capitalization typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields). Category Group Index: S&P 500 TR, Category Index: Russell Midcap Growth TR USD, Morningstar Index: Morningstar US Mid Core TR USD
Small Value: Small‐value portfolios invest in small U.S. companies with valuations and growth rates below other small‐cap peers. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. Value is defined on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). Category Group Index: S&P 500 TR, Category Index: Russell 2000 Value TR USD, Morningstar Index: Morningstar US Small Val TR USD 
Small Blend: Small‐blend portfolios favor U.S. firms at the smaller end of the market‐capitalization range. Some aim to own an array of value and growth stocks while others employ a discipline that leads to holdings with valuations and growth rates close to the small‐cap averages. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. Category Group Index: S&P 500 TR, Category Index: Russell 2000 TR USD, Morningstar Index: Morningstar US Small Cap TR USD 
Small Growth: Small‐growth portfolios focus on faster‐growing companies whose shares are at the lower end of the market‐capitalization range. The portfolios tend to favor companies in up and‐coming industries or young firms in their early growth stages. Because these businesses are fast‐growing and often richly valued, their stocks tend to be volatile. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields). Category Group Index: S&P 500 TR, Category Index: Russell 2000 Growth TR USD, Morningstar Index: Morningstar US Small Growth TR USD

Fixed Income: Fixed Income broadly refers to income-oriented debt securities typically bonds and other interest-bearing debt instruments. Entities like corporations, governments, and municipalities, etc., looking to raise funds for various purposes issue debt in exchange for agreeing to pay fixed income investors interest payments at regular intervals until the date of maturity. At the time of maturity, the principal investment is paid back to the investor.

Fixed Income Credit Quality: Morningstar calculates portfolio credit quality based on the credit ratings of the portfolio holdings sourced from recognized credit rating agencies that qualify as (NRSRO) Nationally Recognized Statistical Rating Organizations or by the SEC in the U.S. Morningstar identifies fixed income investments that have an average credit rating of AAA or AA as high quality, investments with an average rating of A or BBB medium quality, and those rated below BB (B or Below B) are low quality. As defined by Morningstar, AAA indicates an extremely strong ability to make timely interest payments and ultimate principal payments on or prior to a rated final distribution or maturity date. The AA category indicates a very strong ability to make timely interest and ultimate principal payments on or prior to a rated final distribution or maturity date. The single A category indicates a strong ability to make timely interest and ultimate principal payments on or prior to a rated final distribution or maturity date, but that ability could be influenced by adverse changes in circumstances or conditions, such as adverse business or economic conditions. The BBB category indicates the ability to make timely payments of interest and ultimate principal payments on or prior to a rated final distribution or maturity date, but that ability could be impacted by adverse changes in circumstances or conditions, such as adverse business or economic conditions. The BB category indicates the ability to make timely payments of interest and ultimate payment of principal on or prior to a rated final distribution or maturity date in the absence of various adverse circumstances or conditions such as adverse business or economic conditions. The single B category indicates a default has not yet occurred, but the issuer or securities are vulnerable to adverse changes in the business or economic environment. Securities rated in the B category are more vulnerable to nonpayment of timely interest and ultimate payment of principal on or prior to a rated final distribution date than higher rated securities. Bonds with a rating of lower than B sometimes referred to junk bonds or high-yield bonds can be considered speculative. NR/NA designation is applied by Morningstar to those securities it does not rate that may reflect a lack of rating available through Moody’s, S&P, or NRSRO. For more information on credit quality and ratings, please reach out to your financial professional.

Morningstar Sector Definitions
Basic Materials: Companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing. 
Consumer Cyclical: This sector includes retail stores, auto and auto parts manufacturers, companies engaged in residential construction, lodging facilities, entertainment companies, and restaurants.
Financial Services: Companies that provide financial services which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. 
Real Estate: This sector includes mortgage companies, property management companies and REITs. 
Communication Services: Companies that provide communication services using fixed-line networks or those that provide wireless access and services. This sector also includes companies that provide internet services such as access, navigations, and internet related software and services.
Energy: Companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal.
Industrials: Companies that manufacture machinery, hand-held tools, and industrial products. This sector also includes aerospace and defense firms as well as companies engaged in transportation and logistics services. 
Technology: Companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services and companies engaged in the manufacturing of computer equipment, data storage products, networking products, semi-conductors, and components. 
Consumer Defense: Companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education & training services.
Healthcare: This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term care facilities, and medical equipment and supplies. 
Utilities: This sector includes electric, gas, and water utilities.

The data presented for Cyclical, Sensitive, and Defensive Sectors represents the percentage of DWM holdings in each sector of the DWM model portfolio presented, for the time period presented. Data presented for the S&P 500©TR USD Index is for illustrative purposes only and represents percentage of holdings in each sector of securities listed on this benchmark for the time period presented. S&P 500©TR USD Index: The Standards and Poor’s 500 Index (S&P 500) is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Total Return (TR) indexes include daily reinvestment of dividends. Indexes do not account for management fees, are unmanaged and cannot be invested in directly.

Stock Regions
Morningstar divides countries of the world into 13 different geographic regions. These regions serve as the basis for the region breakdown portfolio calculation. The region breakdown helps investors evaluate their equity exposure in various markets. The 13 regions can also be folded into three super geographic regions: the Americas, Greater Europe and Greater Asia. The following major economies included in the regions named in this presentation are listed below: 
North America – Canada, United States; Latin America – Argentina, Brazil, Chile, Colombia, Mexico, Peru, Venezuela; Greater Europe – Albania, Austria, Belarus, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Greenland, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Malta, Netherland, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Africa, Middle East; Greater Asia – Afghanistan, American Samoa, Australia, Bahrain, Brunei, China, French Polynesia, Guam, Hong Kong, India, Indonesia, Israel, Japan, Jordan, Kuwait, Lebanon, Macau, Malaysia, New Caledonia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand The complete list of countries included in each region is available upon request.

Trailing 12 Months Yield: Yield is a measure of the fund’s income distributions, as a percentage of the fund price. Morningstar calculates this figure by summing the income distributions over the trailing 12 months and dividing that by the sum of the last month’s ending NAV plus any capital gains distributed over the 12‐month period. Morningstar adds back capital gains to estimate what the fund’s ending price would have been had it not distributed these gains; this makes the result more comparable to a stock yield because stocks do not distribute gains but rather simply increase in price. Income distributions include interest from fixed‐income securities, dividends from stocks, and realized gains from currency transactions.

The information shown for fixed income represents the Average Effective Duration, Average Effective Maturity, and Trailing 12 Months Yield for the DWM strategic allocation for the time period presented. The AGG data presented is for illustrative purposes. The AGG represents the Bloomberg US Aggregate Index – the standard benchmark for fixed income market. The AGG Index constitutes the total investment grade bond market in the US that includes fixed income securities such as Treasuries, government related securities, Mortgage-backed Securities (MBS), Asset-backed security (ABS), Commercial mortgage-backed securities (CMBS), and corporate bonds. Data sourced from Morningstar. Indexes do not account for management fees, are unmanaged and cannot be invested in directly.