this is a ratio of the excess return over a fund's benchmark, divided by management expenses. It calculates the value added (i.e. the excess over index returns) contributed by each percentage point of management expenses. A positive ratio would indicate that management expenses have a positive contribution and that the fund has "earned its fees". Default risk: refers to the risk of non-payment by a bond issuer. Default occurs when companies with weak financial situations have difficulty meeting their debt obligations, in which case bondholders face the risk of losing their principal investment. Default risk is higher during periods of economic recession or slowdown.