Alpha. Alpha measures the difference between a fund’s actual returns and its expected returns given its risk level as measured by its beta. A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates a fund has underperformed, given the expectations established by the fund's beta. Some investors see alpha as a measurement of the value added or subtracted by a fund’s manager.

Average effective maturity. A weighted average of all the maturities of the bonds in a portfolio, computed by weighing each maturity date (the date the security comes due) by the market value of the security.

Average effective duration. An estimate of how much a bond fund’s share price will fluctuate in response to a change in interest rates. To see how the price could shift, multiply the fund’s duration by the change in rates. If interest rates rise by one percentage point, the share price of a fund with an average duration of five years would decline by about 5%. If rates decrease by a percentage point, the fund’s share price would rise by 5%.

Average weighted coupon. The average interest rate paid on the bonds held by a fund. It is expressed as a percentage of the stated maturity value of its bonds.

Asset Allocation. Describes the composition of a fund’s or an individual’s portfolio. For equity funds, this would include a geographic and industry breakdown. For bond fund, it will show net currency exposure of the fund and the split between government, corporate and other fixed-income securities.