Morningstar Report: Fund Family Data Definitions

 

 Asset-Weighted Return

 

This figure represents an asset-weighted average of fund returns for each year. It is compared with a similarly weighted average of category returns.

 

 

 Fund Family Analysis

 

Because the fund company behind a fund plays an important role in the fund's long-term success or failure, we look at a company's strengths and weaknesses, investment philosophy, and structure.

 

 Fund Family Score

 

The Fund Family Score is an asset-weighted average of all of a fund company's Morningstar Ratings, also known as star ratings, within an asset class. It can help you to gauge a firm's overall ability within a specific asset class (domestic stock, international stock, municipal bond, or taxable bond). The scores range from 1.0 to 5.0. A score below 2.5 is an indication that the firm has met with little success in that asset class. A score between 2.5 and 3.5 indicates the firm is about average. A score above 3.5 indicates the firm has a fair amount of prowess. The more funds a firm manages in an asset class, the stronger a signal the Fund Family Score is about the firm's performance.

How We Do It
We want the Fund Family Score to reflect actual investors' experience, so we use an asset weighting from three years prior. We use an asset-weighted measure because Fidelity Magellan is much more telling about Fidelity's ability to manage investors' assets than a tiny fund like Fidelity Select Air Transportation.

We use asset figures from three years in the past because that better reflects the average investors' experience over the past three years. Because the best-performing funds grow the fastest, the current asset mix would tend to skew the score too much in a fund company's favor. For example, Janus Worldwide was much smaller in June 2004 than it was in June 2001 because losses and redemptions have shrunk assets significantly. However, it was Janus' flagship international fund in 2001, with a huge shareholder base, so it shouldn't be discounted.

 

 

 Minimum Investment

 

To provide a sense of what a fund company's typical minimum investment is, we take the 10 largest funds in a family and select the median figure. Most fund companies have funds or share classes with different minimum requirements, so be sure to check the specific fund you're interested in to see whether it has a feasible minimum.

 

 

 Morningstar Style Box

 

This shows the number of funds the fund company has in each of the nine style-box categories. Clicking on the box takes you to a list of funds from that category that can be ranked using the selector tool.

 

 

 Fund Manager Name

 

The name of the individual or individuals who are employed by the advisor or subadvisor who are directly responsible for managing the fund's portfolio, as taken directly from the fund's prospectus. Other terms that may appear in this column include the following: Multiple Managers. This term appears when more than two persons are involved in the fund management, and they manage independently. Where this term is used, quite often the fund has divided net assets in set amounts among the individual managers. In most cases, multiple managers are employed at different subadvisors or investment firms. Management Team: This is used when there are more than two persons involved in fund management, and they manage together, or when the fund strongly promotes its team-managed aspect. Et al: When this term appears just after a manager name, it indicates that while other persons are involved in fund management, the person listed acts as the leader and/or is recognized by the fund as being the principal management player.

 

 

 Fund Manager Tenure

 

This represents the number of years that the current manager has been the portfolio manager of the fund. For funds with more than one manager, the average tenure is shown. If there is only one manager and he/she has been at the fund for less than six months (and we have biographical information available), a dash will appear. If the fund designates the manager as a Management Team and does not disclose the names of the portfolio manager or co-portfolio managers to Morningstar, Manager Tenure will appear as a dash for the fund.

 

 

 Sector Breakdown (% of stocks)

 

This is an asset-weighted breakdown of sector weightings for domestic stock funds in the fund family.

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