Morningstar manager research methodology

The Morningstar Style Box gives financial advisers, investors, and fund managers a way to understand quickly the positioning of a share fund.

Investors use the standard deviation of historical performance to try to predict the range of returns that is most likely for a given investment.

Morningstar Ratings for Australian funds are based on a risk-adjusted return quantitative measure, in line with Morningstar’s global ratings methodology.

The Morningstar Category classification system is a valuable referencing system to make fund selection efficient.

Morningstar manager research analysts produce their analysis for the benefit of investors, advisors, and institutions, not asset managers.

Morningstar’s qualitative manager research aims to determine which investments deserve the attention of investors and which do not.

Morningstar’s fund analyst research provides insights into a fund’s sustainable advantages and forward-looking perspectives into how the fund is likely to behave in a variety of market environments.

The model for the fixed income style box is based on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality.