Global Fund Report

The Global Fund Report provides background information on the Morningstar Analyst Rating for Funds, which combines qualitative (analyst-driven) and quantitative (numerically based) factors focused on five key pillars: Process, Performance, People, Parent and Price.

Click here for an annotated version of the report. For definitions of the data points on the Global Fund Report, click the links below.

The annualized retention rate of the past five calendar-year manager-retention scores for a fund family.

The percentage of a firm's portfolio managers who stay with a firm from year to year. The calculation ignores a manager moving from fund to fund within the same shop. The calculation is done at the provider company level.

The tenure number at the provider company level is an average of the longest manager tenure of each fund assigned to the provider company. The tenure number at the fund level is the number of years the current manager has been on the fund. For funds with more than one manager, the tenure of the manager who has been with the fund the longest is used in the calculation.

The tenure number at the provider company level is an asset-weighted calculation of the longest manager tenure of each fund assigned to the provider company. The tenure number at the fund level is the number of years the current manager has been on the fund. For funds with more than one manager, the tenure of the manager who has been with the fund the longest is used in the calculation.

The percentage of a provider company's open-end mutual funds that were active 36, 60, or 120 months ago, have not been merged or liquidated since then, and also have a Morningstar category rank of less than 50 during the three-year period through the previous month-end.

The percentage of a provider company's open-end mutual funds that were active 36, 60, or 120 months ago, have not been merged or liquidated since then, and also have a Morningstar risk-adjusted return category rank of less than 50 during the three-year period through the previous month-end. Because this ratio is based on Morningstar risk-adjusted returns, it reflects funds' risk-adjusted returns relative to category peers.

The arithmetic mean fee-level percentile rank for all U.S. open-end funds associated with a provider company ID.

The percentage of share classes assigned to a provider company ID that are in the low/below-average/average/above-average/high fee level, based on their expense ratios.

The portion on an investment provider's open-end mutual fund assets where at least one fund manager has invested more than $1 million in fund shares, the highest manager range reported annually to the Securities and Exchange Commission.

The portion of an investment provider's open-end mutual fund assets where the manager with the highest investment in fund shares, as reported to the Securities and Exchange Commission, invests between $500,001 and $1 million in the fund.

The percentage of mutual fund assets with manager investment of $50,001 to $100,000 shows the portion of an investment provider's open-end mutual fund assets where the manager with the highest investment in fund shares, as reported to the Securities and Exchange Commission, invests between $50,001 and $100,000 in the fund.

The portion of an investment provider's open-end mutual fund assets where none of the fund's managers invest in fund shares as of the most recent annual report to the Securities and Exchange Commission.

The arithmetic mean of the overall Morningstar Ratings of open-end mutual fund share classes offered by the same provider company.

The percentage of all open-end fund assets by Morningstar Rating, as well as nonrated funds, associated with a provider company ID for the three-year period as of the previous month-end.

The percentage of all open-end fund assets by Morningstar Rating, as well as nonrated funds, associated with a provider company ID for the five-year period as of the previous month-end.

The percentage of all open-end fund assets by Morningstar Rating, as well as nonrated funds, associated with a provider company ID for the 10-year period as of the previous month-end.

The percentage of all open-end fund assets by overall Morningstar Rating, as well as nonrated funds, associated with a provider company ID as of the previous month-end.

The percentage of all open-end fund assets whose longest-tenured manager has been on the fund for less than or equal to three years.

The percentage of all open-end fund assets whose longest-tenured manager has been on the fund for more than three years but less than or equal to six years.

The percentage of all open-end fund assets whose longest-tenured manager has been on the fund for more than six years but less than or equal to nine years.

The percentage of all open-end fund assets whose longest-tenured manager has been on the fund for more than nine years but less than or equal to 12 years.

The percentage of all open-end fund assets whose longest-tenured manager has been on the fund for more than 12 years but less than or equal to 15 years.

The percentage of all open-end fund assets whose longest-tenured manager has been on the fund for more than 15 years.

Return on Invested Capital is a measure of how efficiently a company allocates its capital to profitable investments. For a portfolio or fund, return on invested capital represents the asset-weighted average of the underlying stock holdings. Stocks from the financial-services and real estate sectors are excluded.

The percentage of a fund's portfolio invested in wide-moat stocks.

The percentage of a fund's portfolio invested in narrow-moat stocks.

The percentage of a fund's portfolio invested in no-moat stocks.

The percentage of a fund's portfolio invested in stocks that receive a moat rating.

An asset-weighted average of the financial-health grades of a portfolio's underlying long stock positions. At the individual holding level, the financial-health grade is based on evaluation of a company's financial leverage, cash flow coverage, and cash position. A proprietary formula is used to rank companies within sectors and includes a trend-evaluation component.

An asset-weighted average of the profitability grades of a portfolio's underlying long stock positions. At the individual holding level, the profitability grade is based on an evaluation of each company's return on shareholders' equity using data from the past five years. Morningstar's universe of stocks is first filtered for adequacy of historical ROE figures.

An asset-weighted average of a portfolio's underlying long stock positions' growth grades. At the individual holding level, the growth grade is based on an evaluation of each company's revenue per share using data from the past five years. Morningstar's universe of stocks is first filtered for adequacy of historical revenue per share figures.

An estimate of what an investor would earn if purchasing an entire company, including its debt. At the individual holding level, cash return is calculated by dividing the company's free cash flow by its enterprise value, or market capitalization, plus net debt. For a portfolio, cash return represents the asset-weighted average of the underlying long stock holdings. Stocks from the utilities sector and bank industry group are excluded.

An estimate of yield determined by dividing a company’s free cash flow by its market capitalization. For a mutual fund or portfolio, the number represents an asset-weighted average of the underlying long stock holdings. Stocks from the financials sector are excluded.

The date of the portfolio in which the holding first appeared in its most-recent continuous holding period.

An estimate of a fund's annual income per share yield. For funds that issue monthly dividends, the most recent income distribution (including interest income and dividends; capital gains are excluded) is multiplied by 12 and divided by the fund's net asset value as of the distribution date. For funds that issue quarterly dividends, the most recent income distribution is multiplied by 4 and divided by the fund's NAV. Special dividends are handled in a similar manner.

Rate of return during a holding period that is attributed to a fund's income. This measure includes all distributions that are classified as income and excludes distributions that are classified as short-term capital gains, long-term capital gains, or return of capital. The calculation assumes that the investor incurs no transaction fees, pays no taxes at the time of distribution, and reinvests all distributions paid during the period.

The fund's income return percentile rank relative to all funds in the same Morningstar category. The highest percentile rank is 1, and the lowest percentile rank is 100. The fund with the highest income return in a category will always receive a rank of 1.

Rate of return in each calendar year that is attributed to a fund's income. This measure includes all distributions that are classified as income and excludes distributions that are classified as short-term capital gains, long-term capital gains, or return of capital. The calculation assumes that the investor incurs no transaction fees, pays no taxes at the time of distribution, and reinvests all distributions paid during the period.

The fund's annual income return percentile rank relative to all funds in the same Morningstar category. The highest percentile rank is 1, and the lowest percentile rank is 100. The fund with the highest income return in a category will always receive a rank of 1.

Rate of return over a holding period that is attributed to a change in the fund’s capital value. This measure includes the change in the fund’s net asset value as well as all distributions that are classified as short-term capital gains, long-term capital gains, or return of capital. It does not include distributions that are classified as income. The calculation assumes that the investor incurs no transaction fees, pays no taxes at the time of distribution, and reinvests all distributions paid during the period.

This measure is calculated by subtracting the fund’s income return from its total return. (Thus, total return = income return + capital return.) Strictly speaking, Morningstar’s capital return is not the mathematically “correct” version of the fund’s change in capital; to achieve that goal, the calculation would need to divide the total return by the income return, as opposed to subtract. However, it is an intuitively appealing measure that avoids the “missing” returns that occur if Total Return is decomposed by division.

The fund's capital return percentile rank relative to all funds in the same Morningstar category. The highest percentile rank is 1, and the lowest percentile rank is 100. The fund with the highest capital return in a category will always receive a rank of 1.

Rate of return over a holding period that is attributed to a change in the fund’s capital value. This measure includes the change in the fund’s NAV as well as all distributions that are classified as short-term capital gains, long-term capital gains, or return of capital. It does not include distributions that are classified as income. The calculation assumes that the investor incurs no transaction fees, pays no taxes at the time of distribution, and reinvests all distributions paid during the period.

The fund's annual capital return percentile rank relative to all funds in the same Morningstar category. The highest percentile rank is 1, and the lowest percentile rank is 100. The fund with the highest capital return in a category will always receive a rank of 1.

A simple average of the SEC yields of funds within a category. At the fund level, SEC yield is computed by dividing the net investment income per share earned during a 30-day period ended on the last day of the previous month by the maximum offering price per share on the last day of the period. The figure listed lags by one month. When a dash appears, the yield available is more than 30 days old. This information is taken from fund surveys, and category averages are calculated at month-end.

A measure of a fund's income distributions, as a percentage of the fund price. Morningstar calculates 12-month yield by summing the income distributions during the trailing 12 months and dividing that by the sum of the past month's ending net asset value plus any capital gains distributed during the 12-month period. Morningstar adds back capital gains to estimate what the fund's ending price would have been had it not distributed these gains; this makes the result more comparable to a stock yield because stocks do not distribute gains but rather simply increase in price.