Regional Exposure-Snapshot Report

This data set provides a broad breakdown of a fund's geographical exposure. Each region's exposure is presented as a percentage of non-cash equity assets held by the fund. Regional exposure information summarizes a portfolio's exposure to geopolitical risk. It also provides a reference point for understanding fund returns. Some fund managers follow a "top down" discipline, where they direct their investments into regions they consider good opportunities.

For stock funds, regional exposure is calculated as a percentage of stocks; for bond funds, the data is available for international bond funds only, and is culled from quarterly surveys.

Morningstar recently revised its existing region scheme to accommodate a more refined classification. The structure of Morningstar’s regions is a single unified scheme with some countries at its base. These countries are classified into geographic regions. The regions are then folded into three super geographic regions of the Americas, Greater Europe and Greater Asia. They are based on the following three criteria:

These super regions alongside Morningstar’s new Economic Spheres are meant to provide quick, easy to understand and unified portfolio construction and asset allocation tool.

Morningstar Super Regions