The usefulness of the Alpha measure is entirely dependent upon the quality of the beta measure. Beta A measure of an asset's volatility relative to its benchmark. For fixed-income funds, it is Treasury bills.
Beta is calculated using monthly returns for the past three years.
The beta of the benchmark, or index, is 1.00. So a fund with a beta coefficient of 1.00 has experienced up and down movements of roughly the same magnitude as the market. The capital gains distributions per share over the trailing 12-month period. Each fund receives a SmartMoney Grade based on its performance relative to the other funds in its category. A back-end load that declines over time.