Morningstar Essentials

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Ross Park
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1 Morningstar Essentials Maximize the Potential QQQ Q Q

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3 Drive asset growth. Promote new products. Expand marketing strategies. Morningstar TM Essentials enhances your marketing messages with industry-standard statistics recognized by investors and advisors around the globe. This data license, part of Morningstar Licensed Data, allows firms to inject statistics such as the Morningstar Rating, Morningstar Style Box, and Morningstar Category into ads, onto Web sites, in front of commuters almost anywhere. The potential applications for a Morningstar Essentials license are nearly limitless. Morningstar statistics can revitalize sales and marketing initiatives while providing consistent, independent investment information.

5 Speak to the masses. Maximize an advertising campaign on billboard space using the bold, clear Morningstar statistics many investors recognize.

6 Develop investment communications. Add credibility to investment guides and fact sheets with Morningstar s independent research and data.

7 Enhance Web-based applications. Increase the value of a Web site s screening and research tools with easyto-understand Morningstar statistics.

8 Drive Web site traffic. Boost the effectiveness of online advertising campaigns using Morningstar metrics.

9 Send a clear message. Augment presentations to investors and wholesalers by incorporating Morningstar metrics to compare and contrast products.

10 Catch their eye. Reach thousands every day with the instantly recognizable Morningstar Rating, Morningstar Style Box, and other objective statistics.

11 Make a lasting impression. Communicate in printed media to give target audiences a complete picture of an investment product.

12 Maximize advertising impact. Distinguish an investment product from competitors with convincing Morningstar statistics.

13 Invigorate the ordinary. Draw attention to traditional direct mail campaigns by adding recognizable, straightforward data.

14 Educate and empower investors. Provide clarity and depth in brochures to help investors make informed decisions.

15 Boost foot traffic. Attract conference attendees by highlighting Morningstar statistics on displays and take-aways.

17 Move around town. Display marketing messages featuring Morningstar data and images.

18 Key Data Points Morningstar Rating TM 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 TM 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 TM 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. Morningstar Risk 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 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. Optional Morningstar Ownership Zone The Morningstar Ownership Zone provides a more complete picture of how a fund s holdings are distributed. It is the shaded area of the Style Box, representing at least 75% of the fund s stock holdings, and is centered around a centroid.

19 Data Universes Open-end mutual funds Closed-end mutual funds Variable annuity/life subaccounts and underlying funds Separate accounts Exchange-traded funds Learn More About Morningstar Essentials TM Morningstar, Inc. All rights reserved.

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Morningstar EssentialsTM. Artwork and Data Presentation Guidelines U.S.

Morningstar EssentialsTM. Artwork and Data Presentation Guidelines U.S. Morningstar EssentialsTM Artwork and Data Presentation Guidelines U.S. March 2017 Morningstar Essentials Morningstar Essentials is a marketing toolkit that is designed to help you make use of the Morningstar