Important Terminology

Market Index:
An index is a group of securities with similar investment characteristics combined to create a benchmark against which performance of a specific security is measured. An index does not represent any single asset but rather an entire group of assets. One cannot invest directly into any index. Indices are unmanaged and returns assume the reinvestment of all dividends. Past performance is no guarantee of future results.

Model Portfolio:
A model portfolio is made up of a mix of asset classes and those asset classes are tied to appropriate market indices.

Recommended Portfolio:
A recommended portfolio is derived from the completion of a risk tolerance questionnaire with scoring that is associated to a model portfolio.

Mean:
Simple average, equal to the sum of all values divided by the number of values.

Rate of Return:
The average annual return for the number of years shown.

Standard Deviation:
A statistical measure of the volatility based on the distribution of a set of data from its mean (average value). Example: A portfolio with an average return of 10% and a standard deviation of 15% would return a result between -5% and +25% the majority of the time (68% probability or 1 standard deviation), almost all the time the return would be between -20% and +40% (95% probability or twice the standard deviation). If there were 0 standard deviation then the result would always be 10%. Generally, more aggressive portfolios have a higher standard deviation and more conservative portfolios have a lower standard deviation.

Large Cap Growth - The benchmark used for Large Cap Growth is the Russell 1000 Growth Index. This index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Large Cap Value - The benchmark used for Large Cap Value is the Russell 1000 Value Index. This index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

Mid Cap - The benchmark used is the Russell Midcap Index which measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.

Small Cap - The benchmark used is the Russell 2000 Index. This index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index represents approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

International Stocks - The benchmark used for International Stocks is the MSCI EAFE Index: This index tracks non-U.S. stock funds (EAFE refers to Europe, Australasia, and Far East). The EAFE Index is an aggregate of 21 individual country indexes that collectively represent many of the world’s major markets.

Taxable Debt Asset Classes:

Aggregate Bonds - The benchmark used for Aggregate Bonds is Barclays Capital Aggregate Index. This index is a Market-value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

Tax-Free Debt:

Aggregate Muni - The benchmark used is the Barclays Municipal Bond Index. This index is a broad-based, total return index. The Index is comprised of 8000 actual bonds. The bonds are all investment-grade, fixed-rate, long-term maturities (greater than two years).

Other Asset Classes:

Cash Alternatives - The benchmark used for Cash Alternatives is the Citigroup U.S. Domestic 3 Month Treasury Bill Index which is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.

Alternative Investments - The benchmark used for Alternative Investments is the Credit Suisse/Tremont Hedge Fund Index. This index is broadly diversified, encompassing 481 funds across ten style-based sectors, and representative of the entire hedge fund industry.

Domestic REITs (Real Estate Investment Trusts) - The benchmark used for Domestic REITS is the FTSE NAREIT Equity REIT Index. This index is a Market-capitalization-weighted index that includes healthcare and net lease REITs but excludes real estate operating companies. There is no minimum size or liquidity requirement for an equity REIT to be included in this index.

Asset classes and model portfolios for suggested asset mixes are provided by and used with the permission of Ibbotson Associates. © 2026 Ibbotson Associates, Inc. All rights Reserved. Ibbotson Associates does not endorse and / or recommend any specific financial product that may be used in conjunction with the asset allocation models that are presented. Please consult with your Financial Professional and obtain the financial product’s prospectus (or its equivalent) and read it carefully prior to investing. Ibbotson Associates is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Ibbotson Associates is not affiliated with Equitable and its family of companies.