Investment Profiles include the branded Morningstar data that advisors seek and investors trust, allowing them to quickly understand the strengths and weaknesses of a specific investment. Through recognizable and easy-to-read charts, graphs, and statistics, Investment Profiles are dynamic educational resources, reference documents, and portfolio-building tools.
Investment Profile components: Proprietary data and objective insight
Morningstar Rating - Assessment of a fund's past performance—both return and risk—as measured from one to five stars. For non-registered investments, Morningstar can create a hypothetical Morningstar Rating by comparing the investment's performance to the appropriate mutual fund category.
Extended Performance Rating - Morningstar Rating for funds or variable annuity/life subaccounts with less than three years of performance history.
Morningstar Style Box - Nine-square grid that, for equity funds, depicts three investment styles (value, growth, and blend) for each of three size categories (small, mid, and large). For fixed-income funds, it displays three groups of interest-rate sensitivity (high, medium, and low) based on average effective duration, and three credit-quality groups (high, medium, and low). The Style Box provides an easy-to-follow visual representation of fund characteristics and enables informed comparisons and portfolio construction based on what funds actually hold.
Morningstar Return - Assessment of a fund's excess return over a risk-free rate (the return of the 90-day Treasury bill), after adjusting for all applicable loads and sales charges, in comparison to similar funds.
Morningstar Risk - Assessment of the variations in a fund's monthly returns, with an emphasis on downside variations, in comparison to similar funds.
Morningstar Category - System of grouping funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio statistics and compositions over the past three years).
Total Return - These figures reflect performance without adjusting for sales charges or the effects of taxation. They are adjusted, however, to reflect all actual ongoing fund expenses and assume reinvestment of dividends and capital gains. Returns are compared to an appropriate benchmark peer group to help investors evaluate performance.
Standardized Return - Total return adjusted for maximum front-end or deferred sales charges. For variable annuities, standardized returns are also adjusted for Mortality & Expense risk charges, underlying fund-level expenses, contract charges, and surrender fees.
Adjusted Historical Return -
For newer share classes or subaccounts, Morningstar can provide adjusted historical returns based on the oldest surviving share class of a fund with at least three years of performance history. This enables companies to showcase the complete history of an investment. Morningstar calculates these returns by adjusting the initial share class performance for any difference in fee structure.
Growth of $10,000 graph -
Easy-to-understand graph shows the hypothetical growth of a $10,000 investment based on total returns. It also includes the returns of an appropriate benchmark to facilitate performance comparison.
Volatility Analysis -
Gives investors a sense of “best” and “worst” case scenarios based upon an investment’s actual performance history. An overall risk assessment and its category average are clearly illustrated, while explanatory text explains an investment’s price fluctuations relative to the market and other investments.
Portfolio Composition -
Breakdown of the fund's portfolio holdings into general investment classes: Stocks, Bonds, Cash, and Other. It also includes the percentage of foreign stocks in the portfolio.
Top Ten Holdings -
The fund's top portfolio holdings, listed as a percentage of total fund assets.
Morningstar Sectors - The Morningstar Sectors divide the economy into three primary sectors: the Information Economy, the Service Economy, and the Manufacturing Economy, in addition to 12 industry groupings.
Fees and Expenses - Percentage of fund assets allocated for operating expenses, administrative, management, and 12b-1 marketing fees, and all other asset-based costs incurred by the fund, except brokerage costs.
Annual Turnover Ratio Percentage -
Lends insight into how actively a portfolio is managed to assess tax and expense implications and performance deviations from a fund’s benchmarks.