Letter of intent. Non-binding agreement stating the shareholder's intention to invest over a specified period, typically 13 months, a specified amount, which if made all at once, would qualify for a reduced sales charge.

Liquidity. The ease with which an asset can be converted to cash.

Long position. Purchase and ownership of a security by an investor. Investor has the right to profits and losses as the security's value changes.

Long-term capital gain or loss. Gain or loss on the sale or exchange of a security (including mutual fund shares) that has been held for more than 1 year. The tax rate on long-term capital gains is 15% (5% for taxpayers in the 10% or 15% tax brackets). Distribution amounts are reported to shareholders on Form 1099-DIV.