Growth of 10,000
The Growth of $10,000 graph shows a stock's performance based on how $10,000 invested in the stock would have grown over time. The growth of $10,000 begins on the date of the stock's IPO, or the first year listed on the graph, whichever is appropriate. Located alongside the stock's graph line is a line that represents the growth of $10,000 for the S&P 500 index. The third line represents the stock’s industry. These lines allow investors to compare the performance of the stock with the performance of the S&P 500 index and the stock’s industry. Both lines are plotted on a logarithmic scale, so that identical percentage changes in the value of an investment have the same vertical distance on the graph.
For example, the vertical distance between $10,000 and $20,000 is the same as the distance between $20,000 and $40,000 because both represent a 100% increase in investment value. This provides a more accurate representation of performance than would a simple arithmetic graph. The graphs are scaled so that the full length of the vertical axis represents a tenfold increase in investment value. For securities with returns that have exhibited greater than a tenfold increase over the period shown in the graph, the vertical axis has been compressed accordingly.
Performance History
Total Return
Morningstar collects gross and net returns (monthly and quarterly) for separate accounts and commingled pools from the asset management firm running that product.
Total returns for periods longer than one year are expressed in terms of compounded average annual returns (also known as geometric total returns), affording a more meaningful picture of separate account performance than non-annualized figures.
Morningstar calculates total returns, using the raw data (gross and net monthly and quarterly returns) collected from separate account companies.
+/- Category, +/- Index
These benchmarks give the investor a point of reference for evaluating a stock's performance. The +/- (Calendar Year) figure indicates the amount by which a stock over- or underperformed it's benchmark during a given calendar year.
% Rank in Category
This is the separate account’s total-return percentile rank relative to all separate accounts that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing separate account in a category will always receive a rank of 1.
Percentile ranks within Categories are most useful in those categories that have a large number of separate accounts. For small universes, separate accounts will be ranked at the highest percentage possible. For instance, if there are only two international hybrid separate accounts with 10-year average total returns, Morningstar will assign a percentile rank of 1 to the top-performing separate account, and the second separate account will earn a percentile rank of 51 (indicating the separate account underperformed 50% of the sample).
Std Deviation of Account
A statistical measurement of dispersion about an average, which, for a separate account, depicts how widely the returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given separate account. When a separate account has a high standard deviation, the predicted range of performance is wide, implying greater volatility.
Standard deviation is most appropriate for measuring risk if it is for a fund that is an investor’s only holding. The figure can not be combined for more than one fund because the standard deviation for a portfolio of multiple separate accounts is a function of not only the individual standard deviations, but also of the degree of correlation among the separate accounts' returns.
If a separate account’s returns follow a normal distribution, then approximately 68 percent of the time they will fall within one standard deviation of the mean return for the fund, and 95 percent of the time within two standard deviations. For example, for a separate account with a mean annual return of 10 percent and a standard deviation of 2 percent, you would expect the return to be between 8 and 12 percent about 68 percent of the time, and between 6 and 14 percent about 95 percent of the time.
Morningstar computes standard deviation using the trailing monthly total returns for the appropriate time period. All of the monthly standard deviations are then annualized. Standard deviation is also a component in the Sharpe Ratio, which assesses risk-adjusted performance.
Product Assets $mil
The product assets of the separate account, recorded in millions of dollars. Product-asset figures are useful in gauging a separate account’s size, agility, and popularity. They can help determine whether a separate account product focusing on small-company stocks, for example, can remain in its investment-objective category if its asset base reaches an ungainly size.
Trailing Total Returns
3-month, Year To Date, 1 Year, 3-, 5-, 10-, year annualized
Morningstar collects gross and net returns (monthly and quarterly) for separate accounts and commingled pools from the asset management firm running that product.
Total returns for periods longer than one year are expressed in terms of compounded average annual returns (also known as geometric total returns), affording a more meaningful picture of separate account performance than non-annualized figures.
Morningstar calculates total returns, using the raw data (gross and net monthly and quarterly returns) collected from separate account companies.
Historical Quarterly Returns
Quarterly returns break out separate account performance over successive quarters of the calendar year. This can be useful in examining how volatile a fund has been over fairly short time periods.
Note: Adding up an account's quarterly returns over the course of a year will not necessarily give you a number that equates with the account's calendar-year return for that year. This is because of the effects of compounding returns over the course of a year.