Powerful. Visual. Global. Research and Analytics Platform.

Transcription

1 Powerful. Visual. Global. Research and Analytics Platform. 4 2 Multi-faceted Global Research Solution Client Solution: Pioneer Investments 4 Research that Drives Investment Management Strategy Client Solution: Harbor Capital Advisors 6 Optimize Investment Marketing and Promotion Client Solution: Heritage Family of Funds 8 Enhance Investment Sourcing and Recommended Lists Client Solution: Rockland Trust 10 Build Effective Model Portfolios and Investment Plans Client Solution: Minitab Inc. 12 Conduct Variable Annuity Research with Precision and Ease Client Solution: Standard Insurance SM Morningstar Direct is a global institutional research platform providing seamless access to all of Morningstar s databases. Using timely Web-based delivery, Morningstar Direct combines data customization, qualitative commentary, and extensive graphing capabilities creating a sophisticated solution to meet institutional research needs Generate Illuminating Reports Hedge Fund Separate Account 15 Performance Evaluation 16 Investment Summary Line-up Performance Holdings-based Style Consistency Returns-based Style Analysis 17 Holdings Comparison Morningstar Investment Morningstar Rating TM Analysis Morningstar Market Commentary 18 Charts that Illustrate Your Research Findings Holdings-based Style Map Holdings-based Style Trail Returns-based Style Trail Correlation Matrix Floating Bar Scatterplot 19 Functionality Spotlight: Customizing Charts for Unique Presentations 20 Customer Support and Product Overview Global Contacts 19

2 2 Multi-faceted Global Research Solution 3 Available worldwide, Morningstar Direct is a global, multi-currency web-based institutional research platform that provides in-depth performance and holdings-based analysis of investments. Morningstar Direct provides clients with accurate, timely and comprehensive data. Its broad functionality consolidates the multiple applications used by institutional researchers. Its varied applications help align resources across departments, and among industry colleagues, all of whom share a common goal of keeping investment options calibrated to meet investors needs. It is the exclusive source for access to the underlying details of proprietary Morningstar statistics. The Clients We Serve Seamless Functionality Morningstar Direct focuses on institutional Benefit from the combination of comprehensive investment research. Our clients around the peer analysis, holdings- and returns-based world include asset management firms, style analysis, data calculation customization, investment consultants, insurance companies, and performance analysis in a single platform. distributors, fund of fund managers, This flexible solution integrates these and plan sponsors. And within those firms, critical functions without clumsy add-on modules Morningstar Direct is on the desktops of or time-consuming data update procedures. product managers, investment managers, portfolio managers, researchers, sales teams, among colleagues. Professional graphic capabili- Easy sharing features enhance collaboration reporting departments, and marketing groups. ties, easy exporting, and an extensive We actively solicit feedback from our library of pre-formatted reports add convenience international client base, and their influence is to communication efforts. reflected throughout the product. Extensive Data Detailed portfolio holdings, performance track records, flexible currency conversions, cash flow data, and the Morningstar Rating TM are all housed in Morningstar Direct. Enjoy automatic data updates, and import your most recent portfolio or private strategies. Leverage the tools across mutual funds, exchange-traded funds, variable annuities, separate accounts, and hedge funds domiciled in North America, Europe, Australia, and Asia, and fully experience the power behind Morningstar Direct. Global Opportunities Morningstar Direct s global data gives you access to a variety of investment vehicles worldwide. Enhance your ideas, and uncover new or under-served markets around the world. And, with Morningstar Direct deployed on desktops across functional areas, you ll align teams, facilitate dialog, and enhance collaboration. Investment Research Across Industries Asset Management Firms Morningstar Direct Investment Consultants Insurance Companies Distributors Fund of Fund Managers Multi-faceted Research Platform Consolidate key research functions and databases, and align teams across the organization and around the globe with one powerful and convenient desktop platform. Plan Sponsors Product Managers Investment Managers Portfolio Managers Researchers Sales Teams Reporting Departments Marketing Groups Seamless Functionality Custom Investment Creation Data Calculation Customization Holdings-based Style Analysis Peer Analysis Performance Evaluation Portfolio Import Professional Charting Capabilities Returns-based Style Analysis Global Databases Closed-end Funds Exchange-traded Funds Hedge Funds Open-end Funds Australia Canada China Europe Hong Kong Separate Accounts U.S. VA/VUL U.S. Stocks Market Indexes Offshore United States Output Options Pre-formatted Reports Adobe PDF Custom Reports and Data Tables Export to Clipboard Microsoft Excel Microsoft PowerPoint Pioneer Investments Jim Folwell Director of Market Research We started using Morningstar Direct a couple of years ago, in the U.S. office. But Pioneer U.S. is only one part of the Pioneer s Global Asset Management team. We are a subsidiary of one of the leading European banks, UniCredito Italiano S.p.A. With the inclusion of data on global investment products, we expanded the use of the tool to our global operations. In addition to the U.S. office, Morningstar Direct is in use in our Milan office and will be launched in our Dublin offices soon. We are now regularly accessing all the Morningstar databases: mutual funds, annuities, separate accounts, and now hedge funds. Our various subsidiaries use the offshore and European data as well. Access to multiple data universes across various regions is a huge benefit. With Morningstar Direct, our European colleagues have a source for regular access to marketplace intelligence, competitive product sets, and better analytical capabilities. Our overseas market research colleagues face the same challenges and have to accomplish the same level of analysis we do. We consider ourselves to be living parallel work lives in different countries! And better data and research tools make it easier to perform more insightful market analysis. I run our market research group in the U.S. We work closely with nearly every internal department in the Pioneer organization, in some capacity. We help them gather data and statistics, and provide them with analysis and insight. Our responsibilities include all industry and competitive research, and a wide range of product research and due diligence. We do a great deal of performance analysis and competitive analysis. We conduct style analyses all the time both returns-based and holdings-based. Our U.S. product management group, with whom we work very closely, also has Morningstar Direct on their desktop for their own research needs. We re just scratching the surface using the sharing function with them to replicate charts for different analyses, and to share investment lists or peer groups. Morningstar Direct does many things well, and it is impossible to pin point only one key feature. If it did only one thing well, we probably wouldn t use it. It has become central to our daily activities. Pioneer Investments, a subsidiary of UniCredito Italiano Banking Group, provides mutual funds, separate accounts, alternative investments, and defined contribution retirement plans to institutions, non-profit organizations, and individual investors.

3 4 Research that Drives Investment Management Strategy 5 Investment strategists are not only responsible for competitive research and line-up evaluation, but also a myriad of other tasks. Morningstar Direct supports initiatives in product development, product management, portfolio management and reporting. It delivers the data and functionality to develop and maintain a competitive investment line-up that spans international markets and investment types, and meets investor needs. Identify True Peer Groups Conduct Holdings- and Returns-based At the heart of institutional investment research Style Analysis is the creation and analysis of peer groups. Institutional researchers use style analysis to With Morningstar Direct, you ll define peer identify gaps within an investment line-up groups by specific criteria and execute complex, and position investments within the context of multi-variable searches in seconds. Search the competitive landscape. Use Morningstar across investment types and global markets. Direct to analyze style trends within a peer group s top performers. Determine whether they Because it s often the relationships between are maintaining a consistent style or investments that matter, Morningstar merely exploiting market conditions. Understand Direct includes instant percentile rank calculations to show how investments stack up approach or a more concentrated strategy. whether an investment is using a diversified relative to each other. Select the data you want to compare from a full set of standard Morningstar Direct adds depth to your style portfolio, risk, operations and performance data research by combining holdings- and points or customize the data points to returns-based style analysis in one powerful suit your unique requirements. Generate charts platform. Uncover key portfolio construction and reports focused on peer evaluation. characteristics and evaluate younger portfolios with holdings-based analysis. Use traditional returns-based style analysis to supplement the evaluation. Enrich Performance Evaluation Whether you re evaluating managers or reporting on a line-up, Morningstar Direct delivers a wealth of statistics for comprehensive performance analysis. Assess investment performance with customized data calculations, blended and standard benchmarks, and charts and graphics that improve comprehension. Enhance internal reporting with customized data tables you create in PDF format, and seamlessly include investments of various types in your line-up performance reports. Daily data updates mean an earlier start on regular reports, and decisions that are based on the most current information. Empower Your Research Team Morningstar Direct streamlines research and analysis without sacrificing depth and precision. It consolidates key functions including peer analysis, style analysis and performance evaluation into one convenient platform, saving time and resources. Improve productivity, unleash creativity, and add more value to the organization. Integrated Databases Drill into Morningstar s global databases spanning a variety of investment types. Select from a library of customizable charts and reports to improve understanding of your research findings. Harbor Capital Advisors Linda Molenda Senior Vice President, Investments Morningstar Direct is a great product for fund analysis, particularly for fund versus fund comparisons. It is a great tool for creating peer groups and competitor analysis. That is one of the primary reasons why we selected Morningstar and Morningstar Direct. We use Morningstar Direct to put together peer group reports comparing the expense components and performance of our funds to other funds that are similar in style and objectives. These reports are used as a gauge to measure the fund averages, medians, etc. these things are very important to a trustee when evaluating the fund. This type of analysis and reporting capability provides the tools to understand the competitiveness and reasonableness of the expense ratio. These reports help the trustees fulfill their oversight role to monitor the funds. And Morningstar Direct is a great tool for putting this analysis together. Another part of our responsibilities is to identify good subadvisors. If we re doing a manager study, a study of a particular investment discipline, we like to take a look at those portfolios and see how they compare to ours what s the mean, what s the median market cap, what would it look like if we created a product like this, what type of benefits would it have to our shareholders? Morningstar is the leader in the industry for providing this type of data. And we certainly need it and we need it fast. As soon as it s updated in Morningstar s database, we can use that data in our reports and analysis. We don t want to be using last quarter s or even last month s data. We want the data we re presenting to be as fresh as possible when we look at our funds versus benchmarks or versus competitor funds. Before Morningstar Direct it was a very complicated process. It could have taken us a week or more to get the data and we d have to get IT involved. Morningstar Direct just makes our jobs so much easier. The information that Morningstar Direct provides is really good we continue to better utilize the information to prepare different types of reports and give the team a chance to innovate and enhance our contribution to the organization. Harbor Capital Advisors Inc. is an investment advisor providing management services to its Harbor Fund. Harbor Capital Advisors establish the investment strategies of individual funds and selects subadvisors to manage fund portfolios.

4 6 Optimize Investment Marketing and Promotion 7 Successful sales and marketing strategies differentiate and position investment offerings both within a line-up and among the many other options available to investors today. Morningstar Direct helps clearly highlight the merits of your investments, and create messages that reach beyond performance. Create Compelling Presentations Detect and Capture Additional Distribution Streamline sales presentations and respond to Opportunities requests for information and proposals Morningstar Direct can reveal new distribution with clear positioning that educates prospects channels. Identify investor preferences on an investment s merits. through cash flow analysis. Locate new markets across the globe. Search for variable Demonstrate how an investment complements a annuity policies or funds of funds that contain line-up, or should be considered to replace a investments in your peer group. Make a current offering. Show how an investment stacks case for a competing investment s replacement. up relative to its peer group. Then, use holdingsbased style analysis and other portfolio statistics with data, Morningstar statistics and graphics Provide analytical support for the decision to illustrate a manager s strategy. that illustrate and persuade. The Morningstar Style Box TM is a visual representation of an investment s holdings characteristics. It is based on the style characteristics of every security within the portfolio. Discover how each security impacts the investment s Style Box, or import your most recent portfolio to model potential changes. Elevate Marketing Strategy Morningstar Direct enhances investment marketing by delivering the tools to help illustrate the stories written in the data. Complement communications with persuasive reports and data-driven PowerPoint presentations that are a snap to create. And, be ready with fact-filled and engaging responses to those typical challenges such as why should we offer your investment? or what sets you apart from the competition? Morningstar Direct helps you develop comprehensive, analytical presentations with professional-quality graphics that add clarity and illuminate your points. Insight Into Morningstar Methodologies The Morningstar Rating TM is a well-known measure of past performance, cost and risk, and plays a role in the decisions of millions of investors. Morningstar Direct offers you a clear understanding of where investments score within their star rating range, and which are on the cusp of gaining or losing a star. Analyze the individual drivers of an investment s rating: risk, cost and performance. Powerful Communication Tools Provide decision support with professional-quality graphics you can easily customize and export to Adobe PDF or Microsoft PowerPoint. Heritage Family of Funds From a sales perspective, Morningstar Direct is one of the best products out there. When a client tells us that he or she is looking at large-cap growth funds, we can pull up two or three funds at a time and drill down on each fund. Morningstar Direct provides a very good comparative analysis and more importantly, the data to support your key talking points. We also use Morningstar Direct s analytics to position our products. The style comparison report, for example, illustrates how clients achieve diversification through our fund family s subadvisory relationships. Using our Heritage mid-cap core fund and our Heritage large-cap core fund in tandem, we can demonstrate that these two funds alone cover six of the nine Morningstar Style Boxes a terrific visual support of the actual overlap numbers and our diversifica- We also use this report to show the opposite when we are reviewing allocations to make the case for replacing a fund if we find too much overlap in the holdings-based ownership zones. In this case, we can make suggestions by recommending funds that are less correlated while still filling the asset allocation needs dictated by the client. The style consistency report allows us to graphically articulate weaknesses and suggest improvements to allocations we are reviewing. For instance, during the recent bear market we have used Morningstar Direct to point out how some fund managers have experienced style drift a real problem for asset allocation purists trying to build solid models for clients. Using Morningstar Direct helps us to identify the funds with consistent style histories. Heritage manages assets for individual and institutional clients through a diverse family of openend mutual funds. tion argument.

5 8 Enhance Investment Sourcing and Recommended Lists 9 Distributors and consultants are faced with the demanding task of regularly analyzing and monitoring investments for inclusion on recommended lists. Further, investment committees require assurance of the validity of selection criteria and the investment recommendations. Morningstar Direct delivers the sophisticated analysis and vast, high-quality data necessary to help you meet these challenges. communications. Add impact with custom time periods that illustrate the performance of investments since their initial inclusion on select lists. Easily export graphics to create presentations using your own Microsoft PowerPoint templates. And, the report builder streamlines the updating of regular multi-page reports. Leverage a Wealth of Data in One Place The demand for quality data spans investment universes from mutual funds to separate accounts to hedge funds and beyond. Morningstar Direct delivers not only the full spectrum of universes required, but also the depth of detail necessary on individual investments. Drill down into deep, detailed data on performance, risk, fees, holdings, and other statistics across international markets including North America, Europe, Australia, and Asia. Locate investments of interest regardless Support Proprietary Methodologies Whether your proprietary approach to selecting investments includes assets under management, performance, or investment style or all of the above Morningstar Direct has the tools to help you easily locate preferred options for each investment strategy. Identify best-in-class managers within each mandate using sophisticated peer analysis and instant percentile ranking. Choose from more than 8,100 global market indexes, or create blended benchmarks for precise performance Combine Cutting-Edge Analytics with Powerful Flexibility Morningstar Direct offers quick access to an extensive array of investment data, together with sophisticated tools for managing groups of investments. Support your methodology with customized data calculations, composite benchmarking abilities, and customized reporting. Benefit from having powerful analytic functionality right on your desktop so you can focus on adding value to your clients. of domicile. evaluation. Analyze style trends and confirm style consistency using both holdings- Customize the data to create rolling statistics, and returns-based approaches. Analyze hone in on different time periods, and run MPT stats using your preferred benchmark. Import custom portfolios and return series for inclusion in the analysis. Data updates are delivered seamlessly online, providing the timeliest information. And the data is objective because it comes from Morningstar. each manager s contribution to overall performance by examining portfolio construction details. Add the opinion of Morningstar analysts to your qualitative review. Present Your Recommendations Use Morningstar Direct s extensive pre-formatted reports and customizable charts to support Extensive Customization Options Focus your analysis precisely with rolling statistics and customized time periods and your chosen benchmarks. Rockland Trust Doug Butler, CFA, CFP Vice President & Director of Research Along with the development of our asset allocations models, I am also responsible for selecting external investment managers and on-going monitoring. Morningstar Direct has allowed us to institutionalize our processes, to act as an investment consultant would. This enables us to deliver improved service to our clients. Morningstar Direct has literally thousands of variables you can screen on. We have a set of criteria that we consider important in evaluating managers, and we were able to find all that information and more in Morningstar Direct. We do a thorough performance evaluation, look at investment style, differences in fees, risk, etc. We are believers in holdings-based style analysis, we feel it is a better tool than returnsbased analysis for evaluating manager performance. But we use returns-based style analysis as well, and Morningstar Direct has both. After we ve done our analysis, we ll bring the managers in. We have a proprietary approach and questionnaires we use for these meetings, and we also include reports from Morningstar Direct. This combination results in a very comprehensive review I think it is more than most managers expect. We don t replace managers frequently, but if they are on our watch list we have them come in and explain their results. And recently, we hired ten new managers based on analysis we began with Morningstar Direct. We use Morningstar Direct for monthly performance evaluation, and for competitive analysis of our line-up versus competitors. We like the flexibility and the reports. We like the benchmarking options you can pick any one you want, create your own, or even use another investment. We believe Morningstar Direct gives us a competitive advantage given the way we do business. It lets us do more than any other tool out there. Everything I ve wondered if it could do it can. The depth of data and capabilities in Morningstar Direct is incredible, it s pretty easy to use and has a low learning curve. It s a very powerful research tool. Rockland Trust delivers comprehensive banking and financial services to commercial, small business, and individual clients.

6 10 Build Effective Model Portfolios and Investment Plans 11 Fund of funds managers and plan fiduciaries share a common set of tasks. These involve selecting investments to create efficient, optimized portfolios that suit investment requirements, and evaluating the advice offered by appointed managers and consultants. Other challenges include regular monitoring and communication of results, and recommendations for changes when necessary. Morningstar Direct simplifies the process with one powerful solution that helps accomplish these objectives. Identify Strong Investments Design Effective Portfolios Morningstar Direct s powerful peer analysis Investments must also provide synergy or and search capabilities help identify managers diversification, while minimizing overlap. Using who deliver investment results. Analyze all the portfolio aggregation functions in managers following a specific discipline across Morningstar Direct, evaluate how each investment complements the plan or fund of funds. investment universes to better understand how they achieve performance. Test scenarios, and assess hypothetical Compare turnover, fees, and other key factors, style, performance, and other characteristics at and leverage a full set of customizable performance and risk statistics. the aggregate level. Evaluate performance over time, and Produce compelling reports and presentations to examine investment style with holdings-based illustrate and explain your recommendations. and returns-based style analysis. Streamline Ongoing Monitoring With Morningstar Direct, you can efficiently monitor and communicate investment performance, and include the facts most important to your constituents. Provide them with customized time frames that capture performance since the investment entered the plan. Streamline reporting by saving frequently used data tables and investment lists, as well as defining and saving each investment s true peer group and appropriate benchmark. Because the data in Morningstar Direct is updated continuously each day as it becomes available, the most current information is always on hand. Simplify Investment Analysis Morningstar Direct helps you create successful outcomes for investors by enabling a prudent selection of investments that work well together, efficient investment monitoring and due diligence, and effective communication of results. Replace the assortment of tools you re currently using with one elegant, powerful solution for investment analysis. Measure redundancy between investments through a holdings comparison either to identify a like investment to replace a current option or to support removal of an investment from the plan. Portfolio Level Data and Statistics Study portfolio construction details and compare holdings to avoid overlap and provide diversification in a plan or fund of funds. Minitab Inc. Brian Alterio Chairman, Investment Committee and Senior Analyst I guide our retirement investment committee and ensure that we re compliant with applicable laws. We use Morningstar Direct to evaluate investment managers for our plan, to model possible additions or deletions, and for ongoing monitoring. Morningstar Direct helps us fulfill our fiduciary responsibilities to manage the plan to the best of our ability evaluating, adding, and eliminating funds. From time to time, we evaluate potential new managers. We ll review external reports developed by investment consultants, specifically hired just for that purpose. I ll simultaneously run reports with Morningstar Direct. Recently, the analysis we ran based on information obtained from Direct led us to believe the direction our consultant was leaning towards was not wise. He tried to convince us that there was a better plan available with regard to the investments offered. Based on our analysis, there was no statistically significant difference between our current investments and the ones being recommended. So, we did not make a change, and we believe we made a really good decision. Direct has helped us identify holes in our plan, and supports our analysis to identify appropriate additions from those investments available to us. We added eight investments in the last year based on information we got from Morningstar Direct. We value the variety of reports we can generate, everything from investment performance, to style diversification, to MPT stats and not just the MPT stats, but also the data that go into calculating the stats. I m the type who likes to see thedata behind a statistic; that s important to me. We really appreciate the data transparency we get with Morningstar Direct. Obviously, we need to select the best benchmarks in order to assess performance correctly. We have one investment, we call it a combined portfolio. Before Morningstar Direct, I could not find a product that would let me create the right benchmark. But with Direct, I was able to blend a benchmark for this fund and obtain a 99% correlation. If you sit on an investment committee, I urge you to evaluate Morningstar Direct. Morningstar Direct has been a tremendous time saver, and is a critical part of due diligence for an investment committee. Minitab develops and provides statistical software solutions to the corporate and academic markets for performing data analysis, quality control, reliability, and other statistical functions.

7 12 Conduct Variable Annuity Research with Precision and Ease 13 Insurance executives need easy access to a broad set of U.S. investment data, including NAV-level data and policy and rider information, to fuel research to offer investors a broad range of competitive variable annuity options to suit each life stage. PowerPoint presentations. Deconstruct Morningstar statistics such as the Morningstar Rating TM and Morningstar Style Box TṂ Better understand the drivers of these wellknown measures that investors often look to first when evaluating investment options. Focus Investment Searches with NAV-level Data Morningstar Direct delivers the necessary data and powerful functionality to select investments for inclusion in new policies. Use Morningstar Direct to identify investment Performance Monitoring and Reporting Take advantage of Morningstar Direct s dynamic data updates to monitor investment managers performance using the freshest data possible. Design custom time periods to evaluate performance during the current manager s tenure, Enhance Investment Research Improve your processes with data at the NAV, subaccount and policy level, and sophisticated analytic tools. Morningstar Direct helps you offer investment options that suit investors preferences, risk tolerance and time horizon. Streamline regular reporting and improve options that fit together in a broadly diversified portfolio. Run a search by investment category, and fine-tune selections using and compare the underlying investments performance to the open-end universe to detect deviations for further analysis. efficiency in on-going monitoring. Empower your team with the cutting-edge investment research offered by Morningstar Direct. key details like performance, risk, total net assets, and fund management to identify Select the most appropriate benchmark from possible options for products. Morningstar s global market indexes, or create blended benchmarks for unique situations. Pull potential selections into a custom Enhance efficiency by saving frequently used peer group and view instant percentile ranking lists and data tables in preferred formats. to see how these investment options compare in terms of the key data points. And, avoid style drift with holdings- and returnsbased style analysis. Analyze Policy Features Examine the choices your peers are making, sort subaccounts by fees, and examine sales and cash flow data. Analyze new benefits and riders being offered in the marketplace. Policy, Subaccount and NAV-level Data Examine VA products performance, fees, and risk at the NAV or subaccount level. View detailed policy data, including benefits and riders. Create charts that display relevant data over time, and easily incorporate these graphics into Standard Insurance Julie Grandstaff Vice President As we began planning a new registered variable annuity product for our retirement plan, we found we had no source for data at the NAV level. We needed to be able to search by various criteria such as categories, and to screen out funds we wouldn t be able to use, such as single product funds. So our process was basically broken. We took a look at Morningstar Direct. From the beginning, Morningstar Direct had a lot of appeal for us. We can search for VA products in the same way we can for mutual funds, and that s just what we needed to perform the analysis necessary to launch our new product. Not only that, but we have found now that we have Morningstar Direct, it has improved our processes across the board. We ve been able to streamline many tasks, and Morningstar Direct helps me quickly pull together what I need for my regular reporting. The style consistency graphs are particularly useful, and we like the ability to compare holdings. It s incredibly easy to produce graphs, and those visuals really help, especially when working with colleagues who are not so entrenched in the numbers. Morningstar Direct has all the data that you would need, including NAV-level information. But the power lies in the ability to put all the data together, and communicate with others. Working with Morningstar has been really helpful. We got the support we needed to integrate Morningstar Direct into our existing processes. We will launch our new retirement product this year. With Morningstar Direct, it is a much more competitive product that it would have been otherwise. Standard Insurance provides group disability, life, individual disability, and dental insurance, retirement plans, investment advice, and annuities.

8 14 15 Generate Illuminating Reports The reports in Morningstar Direct add clarity and understanding to communications with boards of directors, clients, prospects and internal managers. Choose from an extensive library of pre-formatted reports, each featuring a straightforward design and easy-to-follow layout that presents data clearly and concisely. Combined with appropriate charts and graphs, these reports convey essential facts and reveal relationships, trends and patterns. Or, create ad hoc reports that feature only the information most relevant to your analysis. Customize return and risk statistics. Zero in on specific time periods and include appropriate benchmarks. Show the results as raw data, or in ascending or descending rank, or ntiles. Display values in the appropriate currency. Combine investments from multiple universes and domiciles, and select from hundreds of standard and customizable data points. Set the report to automatically include the most recent data each time you run it. Eliminate the need for time-consuming data input or formatting at critical times like quarter- and month-end. The data in Morningstar Direct is updated continuously, so regular reports can be started earlier than ever before. When an important meeting is scheduled at the last minute, your firm will be ready to present the most current information, not just last month s numbers. Each pre-formatted report offers customization options, such as time periods, benchmarks, and other relevant data elements. Arrange columns and rows to suit your needs, choose from portrait or landscape layouts, and generate a professionally formatted data table in seconds. Export reports to Excel or generate a PDF file on the fly. Hedge Fund Examine pertinent details in this concise, one-page overview that focuses on the unique characteristics of this investment type. Separate Accounts Detail Assess both quantitative and qualitative data with this extensive, multi-page report that details key attributes specific to separate accounts. Performance Evaluation Analyze performance with a myriad of measures, relative to category peers and benchmarks.

9 16 17 Investment Summary Summarize an investment s performance and holdings characteristics on a concise, one-page report. Line-Up Performance Use Morningstar Direct to combine data universes, select data points, and customize headings to generate a professionally formatted PDF data table. Holdings Comparison Compare the underlying holdings of two investments to identify common and unique holdings. Quantify redundancy, or identify investments that complement. Morningstar All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results. Holdings-Based Style Consistency Observe the historical movement of a portfolio in terms of equity style, fixed income style, sector, and asset allocation. Returns-Based Style Analysis Display the history of investment composition, style drift and relative performance versus its style benchmark and a user-defined benchmark. TM Morningstar Investment View qualitative and quantitative information in this comprehensive, multi-page report that includes current and historical commentary by Morningstar analysts.? Morningstar Rating Analysis Evaluate historical rating changes, create rating projections and better understand the drivers of the rating. Morningstar Market Commentary Examine Morningstar analyst commentary on the economy, markets, and fund categories, including sector and industry performance and trends.

10 18 Charts that Illustrate Your Research Findings 19 Generate highly customized, professional-quality charts to present your data and conclusions in a unique way. Chart data across investment types and domiciles for direct comparisons. Include your own peer groups, and select from more than 8,100 global benchmarks for the most precise comparisons. Fine-tune the display by choosing calculation settings, symbols, and scale. Define time periods with fixed dates, or float the dates so that the chart updates every time it s run choose the method that best conveys your analysis. Share your customized charts with your colleagues to save time and enhance collaboration within your organization. Use the report builder to streamline periodic reporting. And, with just one click, add these graphics to text documents, or create Microsoft PowerPoint slides or Adobe PDF files. Chart Formatting Options Modify settings to add impact and illuminate your research findings. Improve clarity and aid comprehension when you simplify complex charts with deliberate color and investment display choices. Use the clipboard to insert charts into your documents. Export directly to PowerPoint, or create Adobe PDF files for printing or ing. Holdings-based Style Map Holdings-based Style Trail Returns-based Style Trail Correlation Matrix Display the benchmark as an area, and visually move it to the background to place the focus squarely on the investments being analyzed. Change line weights and add a bar graph to differentiate among the data displayed and more precisely convey the results of your analysis. Save your customizations for future use. Changes are simple and quick, so you can experiment until you re satisfied with the results. Floating Bar Scatterplot

11 20 Customer Support and Product Overview Global Contacts 2 When you do business with Morningstar, you receive not only renowned, innovative investment data and industry expertise, but also our ongoing commitment to superior customer service that s designed to ensure you receive the best return on your investment. Complete Product Support A dedicated client solutions consultant works with your organization to ensure that you make full use of your investment in Morningstar Direct. Consultants are Morningstar and Morningstar Direct experts that can guide you through your most complex business analysis. A product support line is also available to answer your day-to-day questions. These team members represent expertise in investment research and information, technology, training, and support to help your organization realize the full benefits of Morningstar Direct s powerful capabilities and sophisticated functionality. Training All Morningstar Direct subscribers are eligible for extensive product training. Your client solutions consultant will create a customized training program that s designed to meet your needs. To track the progress of integrating it into your organization you may request monthly usage reports. Feedback We rely upon the feedback of our product s end-users. We want to hear from you regarding the specifics behind your experience working with Morningstar Direct, so you ll have access to several feedback channels. And we ll listen. Ongoing enhancements will be based on specific input from Morningstar Direct clients. Functionality r Robust searching with ability to integrate investments from various universes into one analysis r Extensive data customization r Holdings- and returns-based style analysis r Advanced charting capability r Custom benchmark creation r Portfolio creation r File sharing with other users r Custom fund and peer groups importing r Report builder r Integration with PowerPoint, PDF and Excel Data Sets and Content r Institutional data set including risk, operations, portfolio, performance and fee information r Estimated and actual cash flow data (available for U.S. funds/va/etf) r Historical data for over 70 data points; calculate for rolling or user-defined time periods back to inception r Extensive index coverage r Insight into Morningstar Style Box TM and Morningstar Rating TM r Morningstar Analysts Commentaries Data Universes r Worldwide open-end mutual funds r Worldwide closed-end funds r Worldwide exchange-traded funds r Worldwide hedge funds r Worldwide separate accounts r Worldwide market indexes r U.S. variable annuity/life policies, subaccounts, and NAV-level funds r U.S. stocks For More Information To learn more about how Morningstar Direct can help your business, please call for a product demonstration and 15-day free trial. Morningstar Asia Serving Hong Kong, Taiwan, Singapore Morningstar Australia Morningstar Canada ext Morningstar China Morningstar Europe europe.com Morningstar France Morningstar Germany Morningstar Italy Morningstar Japan Morningstar Korea / Morningstar Netherlands Morningstar New Zealand Morningstar Norway Morningstar Spain Morningstar U.K Morningstar U.S.A com/us/morningstardirect