Earnings Growth Rate
The average annual rate of growth in earnings per share over the past five years for the stocks in a portfolio.
Earnings Per Share
A measure of a company's financial performance, calculated by dividing its earnings by the number of common shares outstanding.
Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance without having to factor in financing decisions, accounting decisions or tax environments.
Effective duration (sometimes called option-adjusted duration) is a more refined calculation than the basic "modified duration" which is often used, and recognizes that the probability that a bond will be called or stay outstanding until maturity will vary if market interest rates change. Effective duration requires the use of a model for pricing bonds that adjusts the price of the bond to reflect changes in the value of the bond's "embedded options" (e.g., the right of the issuer to call the bond prior to maturity, or a sinking fund schedule) based on the probability that the option will be exercised. The model makes several assumptions so effective durations may not be comparable to the durations of funds outside the Nuveen fund complex.
Effective Duration / Option-adjusted Duration / OAD
Effective duration (sometimes called option-adjusted duration, or “OAD”) is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by changes in market interest rates. This measures the responsiveness of a bond's price to market interest rate changes. OAD uses a bond pricing model to estimate how much the price of a bond will change as a result of a uniform shift in market interest rates for all dates on which the bond will make coupon or principal payments. The model adjusts the price for changes in the value of any embedded options. The particular model used to calculate OAD for the funds makes several assumptions, and is subjective, and may not be comparable to OADs calculated by others. A fund’s average OAD will be equal to the market value-weighted average of each bond’s OAD in the portfolio. A fund’s average OAD will also reflects the impact of portfolio-based leverage through any investments in residual certificates of tender option bond (TOB) trusts, but does not reflect the impact of any “structural” leverage (e.g., borrowing, or the issuance of preferred shares) that may be employed by a given fund.
Effective leverage is the fund’s effective economic leverage, and includes both structural leverage and the leverage effects of certain derivative investments in the fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings and the effects of investments in a leveraged Public-Private Investment Partnership are included in Effective Leverage values, in addition to any Structural Leverage.
Countries with developing economies, such as Brazil or Thailand, as distinguished from economically developed countries such as Japan or the U.S. Emerging market economies often tend to be more volatile than developed economies due to political or financial instability.
A type of security representing an ownership share in a corporation. Common stock, traditional preferred stock, and convertible securities are all equity securities. Debt securities do not represent ownership.
Equity Shelf Program
A type of public offering used in accordance with U.S. Securities and Exchange Commission (SEC) registration requirements. This program allows corporations to offer and sell securities for several years without a separate prospectus for each offering. Corporations with equity shelf programs are required to file annual and quarterly reports with the SEC.
The Employee Retirement Income Security Act of 1974 which created rules covering qualified retirement savings plans.
ESG stands for Environmental, Social, Governance and is typically used to describe investment approaches that examine companies’ exposure to ESG-related risks and opportunities and focuses on those likely to have a material impact.
ETN (Exchange-Traded Note)
A type of unsecured, unsubordinated debt security. This type of debt security differs from other types of bonds and notes because units or shares of ETNs are traded on an exchange with their price based on the performance of a market index minus applicable fees. No periodic coupon payments are distributed and no principal protections exist.
The first date on which the holder of a security is not entitled to receive the next interest payment. Index users will see the accrued interest of a security show as negative once it starts trading exdividend, and the expected coupon payment is discounted back to the current index settlement date.
The net amount of interest payments from the underlying assets after bondholders and expenses are paid and after all losses are covered. Excess spread may be paid into a reserve account and used as a partial credit enhancement or it may be released to the seller or the originator of the assets.
The right to exchange from one product to another without an additional sales charge.
Exempt Facilities Bond
Refers to those types of privately owned or privately used facilities which are authorized to be issued on a tax-exempt basis under the Internal Revenue Code. The Tax Reform Act of 1986 amended prior law to exclude the following types of facilities from those which can be financed on a tax-exempt basis: sports facilities; convention and trade show facilities; air and water pollution control facilities; privately owned airport, dock, wharf and mass-commuting facilities; and most parking facilities, among others.
The percentage of a fund's average net assets used to pay fund expenses. The expense ratio takes into account various fees, including management fees, administrative fees, and any 12b-1 fees.