Post on 19-Jan-2018
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Morningstar Direct 3.1
Enhancements to: •Navigation and Usability•Functionality•Data
Released on Friday, Feb. 2, 2007
Morningstar Direct Team
Navigation and Usability
Fund Analysis, Equity Analysis are the New Menu Choices
As Noted in Nov. 2006 Press Release, Given the New Focus on Collective Investment Trusts, the
Databases were Re-named
Previously called just “Separate Accounts”
Previously called “Composites”
Previously called “Commingled Funds”
Morningstar Enhancing Coverage of Collective Investment Trusts
CHICAGO, Nov. 29, 2006—Morningstar, Inc. (NASDAQ: MORN) today announced plans to enhance its coverage of collective investment trusts, investment vehicles similar to mutual funds available only in qualified retirement plans, such as 401(k) plans.
Beginning in early 2007, Morningstar will collect net returns, in addition to gross returns, for these pooled investment vehicles, and will provide monthly rankings and Morningstar Ratings™ against a peer group of mutual funds. Morningstar currently compares collective investment trusts to separately managed accounts, using gross returns to provide a quarterly rating. Under this new framework, investors and advisors will be able to more accurately compare collective investment trusts to mutual fund offerings in retirement plans and will have access to timelier, more transparent information.
“Because these investments are direct competitors with mutual funds in retirement plans, however, we think it’s more appropriate to give them more prominence and put them on a level playing field with mutual funds,” said John Rekenthaler, vice president of research for Morningstar.
“Going forward, investors will be able to directly compare the star ratings of a collective investment trust with those of a mutual fund. We hope not only to provide a more timely, meaningful point of comparison for investors, but also to set a higher reporting standard within the collective investment trust space.”With its recent acquisition of the database division of InvestorForce, Morningstar now has data on approximately 650 collective investment trusts. In addition to both gross- and net-of-fee performance data, Morningstar collects other data points such as risk and return statistics, fees and expenses, manager information, and portfolio holdings.
Regional Training Information Available in “Learning Center”
Users Can Now Set Their Preferences for Summary Statistics
With “Move To”, Users Can Now Easily Move their Rows of Investment Vehicles in Their
Investment ListsSelect rows to move, choose “Move To” under “Action”
Change Settings for Multiple Custom Calculations at Once
Simultaneously Change Date Range for Sharpe and Treynor Ratios, for Example, as Shown in
Previous Screen
New Functionality
Portfolio Aggregation Report – How to Generate
Portfolio Aggregation Report – The ResultMore than one page of analysis, including detailed common holdings
Not equal-weighted, weighted as per the Aggregate weighting
Peer Investor Holding Analysis, from “View Holdings”
An institutional investor, such as Madison Mosaic in this case, may want to see what its peers – maybe its competitors – own in terms of stocks, bonds, options, etc.
The comparison of what investments are similar or different against a peer or group of peers begins here.
Peer Investor Holding Analysis from “Ownership-Portfolio” database
You can insert up to 15 investment vehicles into the peer analysis
Peer Security Owner Analysis from “Ownership-Security” Universe
You want to find out who owns a stock and other similar types of stocks. The analysis begins here.
Peer Security Owner Analysis Output – see if, in this case, Prominent Japanese Stocks are
Owned by the same Mutual Fund
Now Able to Display “Multiple” Manager Teams
And same functionality for multiple “countries available for sale,” “custodian,” “distributor,” and other data points. The multiple data points are included in Excel downloads.
Active Share Calculation Added to Holdings Similarity Chart
The holdings similarity chart can be adjusted to overlap or similarity scores as well in “Chart Settings.”
To calculate Active Share, just calculate the Overlap with the index of choice and subtract from 1.Overlap = Sum{min(w1i,w2i)}Wherew1i = weight of stock i on portfolio 1w2i = weight of stock i on portfolio 2For example:Stock Port 1 Port 2 MinA 0.10 0.05 0.05B 0.03 0.20 0.03C 0.30 0.20 0.20D 0.25 0.10 0.10E 0.12 0.00 0.00F 0.20 0.35 0.20G 0.00 0.10 0.00Total 1.00 1.00 0.58Overlap = 58%Active Share = 100% - 58% = 42%
Active Share Calculation
Some Background on Active Share Calculation – Announced Last Year
•Competitive positioning
•Screening for manager value-add
•Fund of funds screening for good active managers
Find more information on “Active Shares” at:•http://mba.yale.edu/news_events/CMS/Articles/5727.shtml•http://www.som.yale.edu/Faculty/petajisto/active54.pdf
Hedge Fund Quicktake PDF Added
Hedge Fund Quicktake PDF – The Result
Hedge Fund Summary PDF – Contact Information Added
Insurance Product Funds - Quicktake and QT PDF Enabled
Data Added
A complete list of new data points in Morningstar Direct 3.1 is also available
Multiple New Data Points Added to Hedge Funds, in this case, How the Fund is Regulated
or Overseen (Altvest data brought into Direct from InvestorForce)
Hedge Funds – New Data Points Include Entire Pull-Down of “Hedging Techniques” – What they Hedge
and How (Altvest data brought into Direct from InvestorForce)
More Information on the Investor Type for a Collective Investment Trust
“Traditional” data brought into Direct from InvestorForce
New Data Points Added to U.S. OE MF
Detailed Holdings Data Added to “View Holdings” and Now Available for Many Closed
End Mutual Funds and ETFs as well
Net Returns (in addition to Gross Returns) for Separate Accounts and Collective Investment
Trusts
See when Analyst Reports have been Updated or Most Recently Written for U.S. Stocks, OE
and CE Mutual Funds, and ETFs
By clicking on the date, you get the Quicktake.
Look under “Analysis”
Fund-of-Funds Indicator
New Closed End Fund Data points
•UNII: Undistributed Net Investment Income
•EPS
•UNII/EPS Date
Data from central Morningstar database to populate these fields this month (February 2007)