Morningstar Quicktake® Report: Mutual Fund Data Definitions
Snapshot
How has this fund performed?
The Growth of $10,000 (base currency) graph shows a fund's performance based on how $10,000 invested in the fund would have grown over time. The returns used in the graph are not load-adjusted. The growth of $10,000 begins at the date of the fund's inception, or the first year listed on the graph, whichever is appropriate. Located alongside the fund's graph line is a line that represents the growth of $10,000 in a benchmark index. The third line represents the fund's Morningstar Category (see definition below). These lines allow investors to compare the performance of the fund with the performance of a benchmark index and the fund's Morningstar Category. Both lines are plotted on a logarithmic scale, so that identical percentage changes in the value of an investment have the same vertical distance on the graph.
For example, the vertical distance between $10,000 and $20,000 is the same as the distance between $20,000 and $40,000 because both represent a 100% increase in investment value. This provides a more accurate representation of performance than would a simple arithmetic graph.
Return
Total return includes both income (in the form of dividends or interest
payments) and capital gains or losses (the increase or decrease in the value of
a fund). Morningstar Asia calculates total return by taking the change in a
fund's NAV in its base currency, assuming the reinvestment of all income and
capital gains distributions (on the ex-dividend date used by the fund) during
the period, and then dividing by the initial NAV.For funds whose NAV is quoted
in a share class currency that is not the same as the base currency, the total
return calculated is based on share class currency.Unless marked as
load-adjusted total returns, Morningstar does not adjust total return for
subscription fees or for redemption fees.While total returns in previous years
are calculated on a calendar-year basis, cumulative returns are expressed in
terms of YTM; 1-, 3- and 6-month; and 1-, 3-, 5-, 10- and 15-year.
Performance figure discrepancy may occur when comparing data shown here with
other sources, e.g. fund fact sheet from fund houses.Reason for the discrepancy
arises from the foreign exchange rate used.
+/- Benchmark
A benchmark index gives the investor a point of reference for evaluating a
fund's performance. The +/- (Calendar Year) figure indicates the amount by
which a fund over- or underperformed its primary index during a given calendar
year.
+/- Category
The Morningstar Category gives the investor a point of reference for evaluating
a fund's performance (see the Morningstar Category definition below). The +/-
(Calendar Year) figure indicates the amount by which a fund over- or
underperformed its category during a given calendar year.
Morningstar Category
While the investment objective stated in a fund's prospectus may or may not
reflect how the fund actually invests, the Morningstar Category is assigned
based on the underlying securities in each portfolio. Morningstar Category
helps investors and investment professionals make meaningful comparisons
between funds. The categories make it easier to build well-diversified
portfolios, assess potential risk, and identify top-performing funds.
Minimum Investments
Initial Investment
The minimum purchase indicates the smallest investment amount/unit a fund will accept to establish a new account.Additional Investment
This indicates the smallest permissible additional purchase a fund will accept in an existing account.
Sales Fees
Initial
The initial, or front-end, sales charge is a one-time deduction from an investment made into the fund. This figure is expressed as a percentage of the initial investment and is incurred upon purchase of fund shares. The amount is generally relative to the amount of the investment. The initial mainly serves as a commission for the broker who sold the fund.Deferred
These are also known as back-end sales charges and are imposed when investors redeem shares. The percentage charged generally declines the longer shares are held.
Annual Expense
Annual Management and Distribution Fees
The annual management fee goes to the fund family overseeing the portfolio. The
distribution fee compensates third-party sales agents for selling certain fund
classes. In Hong Kong, fund companies do most of their selling through
intermediaries, such as banks, insurance companies, fund brokers, and
independent financial advisors.
Fund Inception Date
The fund inception date gives the date on which the fund commenced operations.
Fund Manager
The name of the individual or individuals who are directly responsible for
managing the fund's portfolio, as taken directly from the fund's prospectus.
Correspondence Information
This section includes the fund company name, address, and phone number through
which an investor can request a prospectus or other information.
Quick Stats
NAV
A fund's net asset value (NAV) represents its per-share price. A fund's NAV is
derived by dividing the total net assets of the fund, less fees and expenses,
by the number of shares outstanding.
Bid Price
This is the price to buy a unit of this fund.
Offer Price
This is the price to sell a unit of this fund.
Day Change
The change in the price of the fund against the prior business day.
Week Change
The change in the price of the fund during the prior business week.
52 Wk High
This is the highest price reached during the course of the trailing 52 weeks
for one unit of this fund.
52 Wk Low
This is the lowest price reached during the course of the trailing 52 weeks for
one unit of this fund.
YTD Return %
The YTD total return of the fund, updated daily.
Benchmark
A market index invests in the similar types of securities to compare the fund's
returns. There is no consensus on the single best benchmark index to use,
depending on what a fund owns.
Morningstar Category
While the investment objective stated in a fund's prospectus may or may not
reflect how the fund actually invests, the Morningstar category is assigned
based on the underlying securities in each portfolio. Morningstar categories
help investors and investment professionals make meaningful comparisons between
funds. The categories make it easier to build well-diversified portfolios,
assess potential risk, and identify top-performing funds. We place funds in a
given category based on their portfolio statistics and compositions over the
past three years. If the fund is new and has no portfolio history, we estimate
where it will fall before giving it a more permanent category assignment. When
necessary, we may change a category assignment based on recent changes to the
portfolio.
Morningstar Rating
Morningstar rates mutual funds from one to five stars based on how well they've
performed (after adjusting for risk and accounting for all sales charges) in
comparison to similar funds. Within each Morningstar Category, the top 10% of
funds receive five stars, the next 22.5% four stars, the middle 35% three
stars, the next 22.5% two stars, and the bottom 10% receive one
star. Funds with at least 36 months of history are also rated for up to
three time periods--three-, five-, and ten-year --and these ratings are
combined to produce an overall rating. In short, no rating will be assigned for
funds with less than three years of history. Ratings are objective, based
entirely on a mathematical evaluation of past performance. They're a useful
tool for identifying funds worthy of further research, but shouldn't be
considered buy or sell recommendations.
Prospectus Objective
The prospectus objective indicates the stated investment goals of a particular
fund, based on the wording in the prospectus issued by the fund's advisor. This
section describes the objectives and strategies found in the fund's prospectus.
Also, this section details changes in the fund's name or ownership.
Total Net Assets
This figure is recorded in millions of base currency and represents the fund's
total asset base. Total net assets are useful in gauging a fund's size,
agility, and popularity.
What is this Fund's Strategy?
The Morningstar style box
The Morningstar style box is a nine-box matrix that displays both the fund's
investment methodology and the size of the companies in which it invests.
Combining these two variables offers a broad view of a fund's holdings and
risk.
How risky is this fund?
Worst Quarter Return
The biggest loss recorded over a quarter since fund inception.
Standard Deviation
Standard deviation is probably used more than any other measure to gauge a
fund's risk. Standard deviation simply measures the variation of a fund's
monthly returns around its average monthly return over a particular time
period. Morningstar calculates standard deviation for the past 36 months of a
fund's life. Since most people think about returns on an annual basis, the
monthly standard deviations are modified to an annualized standard deviations.
The more a fund's returns fluctuate from month to month, the greater its
standard deviation.
Statistically speaking, future monthly returns will fall within one standard
deviation of its average return 68% of the time and within two standard
deviations 95% of the time for most funds. For example, suppose a fund has a
standard deviation of 4% and an average return of 10% per year. Most of the
time (or, more precisely, 68% of the time), the fund's future returns will
range between 6% and 14%--or its 10% average plus or minus its 4% standard
deviation. Almost all of the time (95% of the time), its returns will fall
between 2% and 18%, or within two standard deviations.
Risk Profile
Volatility refers to the range of a fund's performance highs and lows. One
widely quoted measure of volatility is standard deviation. Standard deviation
is a statistical measure of the range of a fund's performance. When a fund has
a high standard deviation relative to peers, its range of performance has been
wide. This indicates there may be a greater potential for volatility in the
future. Morningstar Asia calculates a fund's annualized standard deviation
based on the past 36 monthly returns.
What does this fund own?
Asset Allocation
Total Stock Holdings% Cash
This data point identifies the percentage of the fund's net assets held in cash. Cash encompasses both actual cash and cash equivalents (fixed-income securities with a maturity of one year or less) held by the portfolio plus receivables minus payables. Negative percentages of cash indicate that the portfolio is leveraged, meaning it has borrowed against its own assets to buy more securities or that it has used other techniques to gain more than 100% exposure to the market.% Stocks
The percentage listed under the heading Stocks incorporates only the portfolio's straight common stock holdings.% Bonds
This data point identifies the percentage of the fund's net assets held in bonds. Bonds include everything from government notes to high-yield corporate bonds.% Other
Other includes preferred stocks (equity securities that pay dividends at a specific rate) as well as convertible bonds and convertible preferreds, which are corporate securities that are exchangeable for a set amount of another form of security (usually common shares) at a prestated price. Other also may denote holdings in not-so-neatly-categorized securities, such as warrants and options.
Denotes the total number of equity securities in a fund's portfolio. This number can be quite useful for gaining greater insight into the portfolio's diversification.
Top 5 Holdings
These are the top 5 holdings in the fund's portfolio ranked by the % of net assets.
SectorSector for the stock holding.
% of Net Assets
Morningstar calculates the percentage of net assets figure by dividing the market value of the security by the fund's total net assets. If a few securities take up a large percentage of the fund's net assets, the fund uses a concentrated portfolio strategy. If the percentage figures are low, then the manager is not willing to bet heavily on any particular security.
©Copyright 2003 Morningstar Asia Limited