Morningstar Rating Analysis Report

• Enhance internal and external communication by illustrating which factors affect an investment's Morningstar Rating: relative returns, risk, or fees.

• Demonstrate the consistency level of the subject investment's rating, and make rating projections.

• Conduct competitive analysis based on the Morningstar Rating.

Get a clear snapshot of an investment�s rating history and better anticipate potential future changes in the Morningstar Rating. The projection is done by truncating the time period used to calculate the Morningstar Rating. For example, the first month rating projection for the 3-Year Morningstar Rating calculates the Morningstar risk-adjusted return for a given category using only the past 35 months of data. Likewise the 3-month rating projection for the 3-Year Morningstar rating will be calculated based on the past 33 months. The calculation makes no assumption about the future performance of an investment or its category. The table at the bottom of the graph shows the category size over time. The larger the category, the less volatile the Morningstar Rating tends to be.

Illustrates the trade off between Morningstar Risk and Morningstar Return for a peer group. The investments located in the upper left corner enjoy high return and low risk, and receive higher ratings. The investments located in the lower right corner experience high risk and low return, and receive lower ratings.

Deconstruct the star rating calculation by evaluating three important parameters: return, expense ratio, and load. A floating bar for each factor illustrates the relative position of the subject fund compared with its category peers.

  Morningstar Rating Press Release, Fact Sheet, Research Paper