Morningstar calculates Fund Family Scores for each of five broad asset classes, based on the current Morningstar category classifications. The five asset classes are U.S. Stock, Balanced, International Stock, Taxable Bond, and Municipal Bond. For each fund family, Morningstar will calculate up to five Fund Family Scores, one for each of the asset classes in which the fund family manages funds.
Categories are assigned to the asset classes as follows:
U.S. Stock
Domestic-equity funds are placed in a category based on the style and size of the stocks they typically own. The style and size parameters are based on the divisions used in the investment style box: Value, Blend, or Growth style and Small, Medium, or Large geometric average capitalization (see Equity Style Box for more details on style methodology). By reviewing their investment style over the past three years, we place domestic-equity funds in one of the following nine categories:
Morningstar also includes several other, specialized U.S. stock categories, including:
Balanced
International Stock
Equity funds with 40% or more of their equity holdings in foreign stocks (on average over three years) are placed in the international equity class. These categories include:
Bonds
Funds with 70% or more of their assets invested in bonds are classified as Bond Funds. Bond funds are divided into two main groups: Taxable Bond and Municipal Bond.
Taxable Bond categories include the following:
Municipal-Bond categories include the following:
Muni Single-State Intermediate/Short
Muni California Intermediate/Short