A key piece of the mutual fund puzzle has fallen into place.
A couple of years ago the SEC started requiring that fund companies disclose how much each fund manager invested in his or her fund. Morningstar has gathered manager ownership information about each and every U.S.-run mutual fund in its database.
The data allow us to take a more comprehensive look at how much managers invest in their funds in different asset classes. This gives us a benchmark for judging whether managers have greater conviction in their funds than their peers.