Stocks Special Reports LICs Credit Technical Analysis Funds ETFs Tools SMSFs
Learn
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features Technical Analysis SMSFs Learn
About
Managed Funds - Frequently Asked Questions

How Many Managed Funds Are There on Morningstar's Database?

How Often is Morningstar Fund Data Updated?

What's Happened to My Fund? Why Has it Stopped Appearing?

How Often are Returns/Performance Figures, Risk Measures, and Related Statistics for Managed Funds Updated?

What are the Income/Growth Return Components in Returns/Performance Figures?

Are Morningstar's Returns/Performance Figures Before or After Tax?

Do Morningstar's Returns/Performance Figures Take Fees Into Account?

What are Morningstar Categories?

How Does Morningstar Classify Multi-Sector Funds?

What are Morningstar Tickers?

What are APIR Codes? How are They Different to Morningstar Tickers?

What Are Morningstar Ratings (Star Ratings)?

Why Doesn't My Fund Have a Morningstar Rating (Star Rating)?

How Often are Morningstar Ratings (Star Ratings) Updated?

Does Morningstar Charge Fund Managers for Morningstar Ratings (Star Ratings)?

What are Morningstar Indices?

How Often are Morningstar Indices Updated?

What are Morningstar Market Indices?

How Often are Morningstar Market Indices Updated?

What are Morningstar Fund Analyst Ratings?

How Often are Morningstar Fund Analyst Ratings Updated?

Does Morningstar Charge Fund Managers for Morningstar Fund Analyst Ratings?

What is the Morningstar Style Box?

How Often are Style Boxes Updated?

What is the Morningstar Ownership Zone?

How Often are Ownership Zones Updated?

Why Doesn't My Fund Appear in Morningstar's Newspaper/Magazine Funds Tables?

Why Doesn't My Fund Show an Entry Price in Morningstar's Newspaper/Magazine Funds Tables?

Why Doesn't My Fund Show a Three- or Five-Year Return in Morningstar's Newspaper/Magazine Funds Tables?

Why Doesn't My Fund Show a Morningstar Rating (Star Rating) in Morningstar's Newspaper/Magazine Funds Tables?

How Many Managed Funds Are There on Morningstar's Database?

We had more than 10,000 'active' Australian and New Zealand funds (those still in existence) on our database at 30 June 2014, as well as a large number of funds which no longer exist, but which we maintain for the purposes of calculating meaningful historical performance figures and rankings.

How Often is Morningstar Fund Data Updated?

Unit prices are updated as frequently as we receive them from fund managers, generally every day or every week. Fees data is generally updated annually, or whenever a fund manager updates a fund's product disclosure statement. Portfolio holdings data is updated when we can source it - many fund managers will provide it on a quarterly basis with a timelag, for instance.

What's Happened to My Fund? Why Has it Stopped Appearing?

There could be several reasons for this: (a) if we have concerns about the information a fund manager is providing to us, we can suppress the fund temporarily while we investigate; (b) the fund manager may have changed name, or the name of the fund may have changed; (c) the fund could have been finalised/terminated, i.e. the fund no longer exists and its assets have been returned to the fund's investors; or (d) From May 2013, Morningstar globally decided to cease publication of Morningstar Ratings (star ratings) for money market/cash funds.

How Often are Returns/Performance Figures, Risk Measures, and Related Statistics for Managed Funds Updated?

Returns/performance figures, risk statistics, and related statistics to the previous month-end are recalculated and republished in the second week of each month. For instance, returns for the month to 30 June are recalculated and republished in the second week of July; returns for the month to 31 October are recalculated and republished in the second week of November.

What are the Income/Growth Return Components in Returns/Performance Figures?

The Growth return is the proportion of the total return which can be attributed to capital growth in the value of a fund's assets. The Income return is the proportion of the total return which is paid out to a fund's investors as a distribution/income return.

Are Morningstar's Returns/Performance Figures Before or After Tax?

The returns/performance figures for investment trusts are displayed before tax, i.e. tax is paid by the individual investor. The returns/performance figures for superannuation funds are displayed after the 15.0 percent superannuation tax rate has been taken into account i.e. they are net of tax.

Do Morningstar's Returns/Performance Figures Take Fees Into Account?

The returns/performance figures Morningstar publishes are net (after) the annual management fee, but do not take into account any transaction (entry/exit) fees that an investor may have to pay.

What are Morningstar Categories?

Morningstar Categories are close peer groups of managed funds. Share funds are grouped together according to their market-capitalisation profile (whether the fund invests primarily in larger, or medium- and smaller-sized companies), and their investment style (value, growth, or a blend of the two). Funds will occasionally move between Morningstar Categories, as we determine that another category is a more appropriate home for a fund.

How Does Morningstar Classify Multi-Sector Funds?

Morningstar groups multi-sector funds together on the basis of their underlying asset allocations, i.e. the amount a fund has invested in cash, fixed interest, property, domestic shares, overseas shares, etc.

- The Multi-Sector Conservative category contains multi-sector funds with up to 20.0 percent of their investments in the growth assets of shares and property.

- The Multi-Sector Moderate category contains multi-sector funds with 20.0 - 40.0 percent of their investments in the growth assets of shares and property.

- The Multi-Sector Balanced category contains multi-sector funds with 40.0 - 60.0 percent of their investments in the growth assets of shares and property.

- The Multi-Sector Growth category contains multi-sector funds with 60.0 - 80.0 percent of their investments in the growth assets of shares and property.

- The Multi-Sector Aggressive category contains multi-sector funds with more than 80.0 percent of their investments in the growth assets of shares and property.

What are Morningstar Tickers?

Morningstar Tickers are proprietary numerical codes we assign to managed funds, as a shortcut for identifying these funds. Each fund has its own unique Morningstar Ticker, which exists for the lifetime of the fund.

What are APIR Codes? How are They Different to Morningstar Tickers?

APIR Codes are another kind of code number for managed funds, assigned by a company called APIR Systems. Although APIR Codes are widely-used in the funds management industry, they are voluntary and not all fund managers elect to have APIR Codes assigned to their funds.

What Are Morningstar Ratings (Star Ratings)?

The Morningstar Rating (a.k.a. Star Rating) from one to five stars measures a fund's risk-adjusted historical performance compared to peers. A fund with a Morningstar Rating (Star Rating) of four or five stars has produced higher returns while taking less risk (being less volatile) than similar funds. A fund with a Morningstar Rating (Star Rating) of one or two stars has produced lower returns while taking more risk (being more volatile) than similar funds.

Why Doesn't My Fund Have a Morningstar Rating (Star Rating)?

To get a Morningstar Rating (Star Rating), a fund must be at least three years old, and be in a peer group (Morningstar Category) which has at least 10 funds with three-year track records.

How Often are Morningstar Ratings (Star Ratings) Updated?

Morningstar Ratings (Star Ratings) are recalculated and republished in the second week of each month, at the same time as performance figures.

Does Morningstar Charge Fund Managers for Morningstar Ratings (Star Ratings)?

No, Morningstar does not charge or accept payment for Morningstar Ratings (Star Ratings). If a fund manager wants to use Morningstar Rating(s) (Star Ratings) in their promotional materials, we do charge them a licensing fee for the use of our intellectual property.

What are Morningstar Indices?

Morningstar Indices are averages for defined peer groups of managed funds. Just as a market index measures the performance of a group of listed securities, Morningstar Indices measure the performance of a group of unlisted managed funds.

How Often are Morningstar Indices Updated?

Morningstar Indices are recalculated and republished in the second week of each month, at the same time as performance figures.

What are Morningstar Market Indices?

Morningstar Market Indices are proxy market indices for multi-sector funds. Morningstar Market Indices are calculated using asset-weighted averages of the underlying asset allocations (the proportion of investments in cash, fixed interest, shares, and so forth) from all the funds in a multi-sector category.

How Often are Morningstar Market Indices Updated?

Morningstar Market Indices are recalculated and republished in the second week of each month, at the same time as performance figures.

What are Morningstar Fund Analyst Ratings?

Morningstar Fund Analyst Ratings are a five-point scale from 'Gold' to 'Negative'. The Morningstar Fund Analyst Rating signals the extent to which we recommend using an investment strategy in investment portfolios.

How Often are Morningstar Fund Analyst Ratings Updated?

Morningstar Fund Analyst Ratings are usually updated annually, or when a material change occurs at a fund manager.

Does Morningstar Charge Fund Managers for Morningstar Fund Analyst Ratings?

No, Morningstar does not charge or accept payment for Morningstar Fund Analyst Ratings or the accompanying qualitative research reports. If a fund manager wants to use Morningstar Fund Analyst Rating(s) in their promotional materials, we do charge them a licensing fee for the use of our intellectual property.

What is the Morningstar Style Box?

The Morningstar Equity Style Box graphic shows at a glance a share fund's primary investment style and market-capitalisation characteristics. The Equity Style Box is a nine-square grid which plots a share fund's underlying holdings - the shares the fund owns - according to whether they add up to a value, growth, or blend overall investment style, and whether the fund invests primarily in large-, medium-, or smaller-sized stocks.

The Morningstar Fixed Income Style Box graphic shows at a glance a fixed interest fund's duration (sensitivity to changes in interest rates) and credit quality characteristics. The Fixed Income Style Box is a nine-square grid which plots a fixed interest fund's underlying holdings - the income securities the fund owns - according to whether they add up to a short, medium, or long overall duration, and whether the fund invests primarily in high-, medium-, or low credit quality securities.

How Often are Style Boxes Updated?

Equity Style Boxes are updated whenever we receive an updated portfolio from a fund manager. Fixed Income Style Boxes are updated periodically by surveying fund managers.

What is the Morningstar Ownership Zone?

Ownership Zones are proprietary graphics which summarise a fund's overall stock locations and ranges.

How Often are Ownership Zones Updated?

Ownership Zones are updated whenever we receive an updated portfolio from a fund manager.

Why Doesn't My Fund Appear in Morningstar's Newspaper/Magazine Funds Tables?

Morningstar has more than 10,000 funds on our database, substantially more than can fit in the space available in newspapers. Because of this, to determine which funds appear, we rank funds by size, on the grounds that the larger funds generally have a greater number of readers, and so the information we publish will appeal to the widest possible number of investors.

Why Doesn't My Fund Show an Entry Price in Morningstar's Newspaper/Magazine Funds Tables?

This could be either because (a) the fund is closed to new investment, and therefore the fund manager does not strike an entry price to enable investors to buy units; or (b) because we haven't received an updated entry price from the fund manager to be able to publish.

Why Doesn't My Fund Show a Three- or Five-Year Return in Morningstar's Newspaper/Magazine Funds Tables?

This could be either because (a) the fund isn't three or five years old yet, or (b) we haven't received the information we need from the fund manager to be able to calculate a three- or five-year return.

Why Doesn't My Fund Show a Morningstar Rating (Star Rating) in Morningstar's Newspaper/Magazine Funds Tables?

This could be either because (a) the fund isn't three years old yet (funds need at least a three-year track record before we can calculate and publish a star rating); or (b) the fund is in a Morningstar Category (peer group) which does not have at least 10 funds with three-year track records.