Morningstar asks fund companies to send the following information on a monthly or quarterly basis for each of their fixed income and allocation funds.
The Morningstar Rating for Funds Methodology provides the theoretical basis and calculation logic for the quantitative star rating.
An explantion of the rules for the selection of the oldest share class.
This project aims to classify asset types at the detailed level of paper holdings for fixed-income or debt-oriented schemes, as disclosed by asset-management companies in their holding data for such schemes.
Morningstar's Credit Ratings ("Morningstar") credit rating process builds upon the knowledge of companies, industries, and financial markets that Morningstar has been accumulating for more than a decade. Morningstar’s credit rating methodology is forward-looking and based on fundamental company research including but not limited to our expectations of future cash flows.
This document describes the methodology behind the Morningstar Analyst Rating™ for funds; the summary expression of our forward-looking analysis of a fund. Ratings are assigned globally on a five-tier scale. Our global analyst team has identified five key areas that we believe are crucial to predicting the future success of funds: People, Parent, Process, Performance, and Price.
Active Share is a measure designed to determine similarity of holdings between a fund and an index.
This document provides instructions and guidance for portfolio data providers to complete Morningstar's Advanced Portfolio Template (the "APT")
The paper discusses four aspects of ETF analysis: Estimated Holding Costs, Tracking Volatility, Market Impact Cost and Portfolio Concentration.
The paper contains data and product information about the Australian Asset Flows module available in Morningstar Direct
The paper discusses the launching of the enhanced cash breakdown calculation for mutual fund portfolios.
Morningstar calculates cash flows in-house on a monthly basis for open-end funds and non-US ETFs and on a daily basis for US ETFs using total net assets and returns for different time periods.
The paper defines the Morningstar Categories for the Chile-domiciled funds.
The paper describes how closed-end fund distributions are factored into the toal return calculations for net asset values and share prices.
The paper describes how total returns for net asset values and share prices of closed-end funds are adjusted when a closed-end fund undertakes a rights offering.
The Morningstar Canada Liquid Bond Index (MCLBI) is designed to provide diversified exposure to Canadian dollar denominated federal, provincial, government-guaranteed and corporate debt with an eye toward liquidity.
The paper outlines Morningstar's equity data definitions.
A master-feeder fund structure allows asset managers to consolidate multiple portfolios into one, therefore realizing economies of scale, resulting in more efficient and effective investment management and achieving operational cost & tax efficiency
The paper discusses the characteristics of virtual share class shares which have no independent legal profile of their own and are identical in all other respects to the base currency class of the fund.
Effective June 30, 2003 Morningstar replaced median market capitalization with geometric average capitalization as a measure of size for a fund's portfolio.
The paper details Global Industry Classification (GICS) four level breakdown.
The paper describes the use of Monte Carlo simulations in determing investor wealth in EnCorr.
Diversified U.S. equity funds and diversified foreign equity funds are categorized based on the three-year average of the fund’s Style Box coordinates (Raw X Value-Growth Score, Raw Y Size Score).
The paper outlines category definitions applicable to the Hong Kong market.
The paper outlines category definitions applicable to the Spanish market.
To help investors understand the different levels of risk of investing in the various categories of funds, Morningstar will calculate a risk level for each of its fund peer group.
Each security in a fund portfolio is assigned a detailed asset classification, known as the Detail Type Id. In September 2011 Morningstar updated the list of Detail Type codes.
In MM, 2010 Morningstar introduced a new percentile ranking methodology called Distinct Portfolio Category Ranks.
Performance attribution analysis consists of comparing a portfolio's performance with that of a benchmark and decomposing the excess return into pieces to explain the impact of various portfolio management decisions.
The paper outlines different expense ratio applicable to managed products.
This methodology paper is designed by Morningstar Europe to provide technical guidance and govern all requests by fund providers wishing to append track records of one collective investment scheme to that of another.
Morningstar places fixed income funds in one of the nine squares of the Morningstar Style Box based on each fund’s duration and average credit quality.
In Canada, Fixed Income funds that are displayed on Morningstar tools may be subject to two different methodologies depending on which tool they appear on.
The Morningstar Style Box provides an intuitive visual representation of style that helps investors build better portfolios and monitor them more accurately
The updated Morningstar Style Box provides an intuitive visual representation of style that helps investors build better portfolios and monitor them more accurately. This methodology document addresses the Morningstar Fixed-Income Style Box™. The Morningstar Style Box helps investors and advisors determine the investment style of a fund.
The data that drive the fixed income style box is surveyed from fund companies. Morningstar asks fund companies to send the following information on a monthly or quarterly basis for each of their fixed-income and allocation funds.
The paper outlines global category definitions.
Morningstar’s proprietary classification system is comprised of 11 sectors, 69 industry groups and 148 industries.
Over the last decade, hedge funds have proliferated and become an accepted allocation within institutional investor portfolios. But there is not a generally accepted definition of what constitutes a hedge fund.
Sector groups and sectors can be defined by the parameters detailed in the methodology and based on the portfolio statistics of the most recent portfolio holdings data
There are multiple ways to define a fund’s inception date for purposes of return and ratings calculations.
Portfolio diversification is generally thought of in terms of market capitalization and investment style, yet sector diversification is equally important.
The Morningstar Manager Benchmarks offer a distinct view into a full range of managed investments for incisive performance, portfolio, and operations data analysis that better captures how money mangers and consultants view the manager and investment universes.
Numerous academic studies have shown the existence of a momentum effect in stock performance.
Investors often evaluate how reasonable a stock’s price is by looking at a price ratio, such as price-to-earnings (P/E), price-to-book (P/B), price-to-cash flow (P/C), or price-to-sales (P/S).
All managed products are subject to the risk that they may lose value because of the strategies they pursue, the types of securities they invest in, and the uncertainties of investing in general.
The paper describes two common risk measures.
Morningstar's Strategy Database identifies investment undertakings managed by a single team following the same investment process.
Synthetic ETFs are exchange-traded funds that use over-the-counter derivatives to replicate an index return.
The Federal Reserve Board publishes a group of Treasury bond interest rates of various maturities. These are named Treasury Constant Maturities, the best known being the Ten-Year Treasury Constant Maturity.