Morningstar Essentials Package
Hedge Connection is pleased to be offering the Morningstar Essentials package. Long a standard in the mutual fund industry, these marketing tools are now available to the hedge fund industry. Take advantage and enhance your marketing message with industry standard statistics recognized by investors around the world. Rise above your peers and inject statistics such as the Morningstar Rating, Morningstar Ranking and Morningstar Style Box into fact sheets, fund presentations, your website and your Hedge Connection database listing.
With a diverse set of options, place the power of the Morningstar brand in all of your client communications and bring immediate objectivity and reliability to your education and marketing initiatives. The following statistics are all available in the Essentials Package and can be used either on their own or in tandem.
The Morningstar Rating is a measure of an investment's load- and risk-adjusted return, relative to other investments in its peer group. Investments are rated for up to three time periods-three, five, and 10 years-and these ratings are combined to produce an overall rating. Ratings are from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving 1 star. The rating is a useful tool for investors to quickly and easily identify investments worthy of further research.
Morningstar® Extended Performance Rating
The Morningstar Extended Performance Rating is based on a combination of real and extended performance. Morningstar calculates extended performance for newer share classes (or structures) of an investment based on the returns of the oldest share class and any fee differences between the classes. By lengthening the amount of information available, extended performance helps investors evaluate the full performance of a portfolio under the lens of a specific share class fee structure.
Morningstar Style Box
The Morningstar Style Box is a nine-square grid that, for equity funds, depicts three investment styles (value, growth, and blend) for each of three size categories (small, mid, and large). For fixed-income funds, it displays three groups of interest-rate sensitivity (high, medium, and low) and three credit-quality groups (high, mid, and low). The Style Box provides an easy-to-follow visual representation of fund characteristics and enables informed comparisons and portfolio construction based on what funds actually hold.
Morningstar Category/Morningstar Category % Rank
Investments are placed into Morningstar Categories based on their compositions and portfolio statistics so that investors can make meaningful comparisons. Morningstar Category % Rank is a fund's total-return percentile rank relative to all funds in the same category. The highest (or most favorable) percentile rank is one and the lowest (or least favorable) percentile rank is 100. The Category % Rank complements the Morningstar Rating, especially for funds in smaller categories because these funds may have received a 3-star rating, but could be in the top half of their category performance.
This metric assesses the variation in an investment's monthly returns with greater penalties for downside variation. Morningstar Risk is measured for three, five, and 10 years, and these separate measures are then combined to produce an overall measure where five is high risk and one is low risk. This measure helps investors evaluate investments that have the same Morningstar Rating for the same time period, as different levels of risk may be taken to achieve the same rating.
Morningstar Return determines an investment's excess return over the risk-free rate after adjusting for all applicable sales loads. Morningstar Return is measured for three, five, and 10 years against other investments in the same Morningstar Category, and these separate measures are then combined to produce an overall measure, where five is high (good) and one is low (poor). This measure helps investors evaluate funds that have the same Morningstar Rating for the same time period.
For More Information
Contact us if you would like to know pricing and further information. We can tell you your fund's rating, ranking, and other statistics and how they may best be utilized to market your fund.
If you would like to learn more about the rating methodology for the various statistics, please download the Morningstar brochure.