Solutions

Fund FAQ

General Queries

Fund Activation

Q: I would like to have our fund added to the Morningstar database. What is the process involved with that?

First of all, please send an email to helpdesk.au@morningstar.com specifically requesting fund activation. We will send you a fund activation form which you will be required to fill out and send back. In order to add funds to the Morningstar Australia Database, you will then need to include:

1) a PDF copy of the Product Disclosure Statement for the fund(s) registered in Australia together with the necessary IFSA-endorsed IMD forms

2) the name, title, e-mail address and phone number of the contact person for invoicing

3) the name, title, e-mail address and phone number of the data person responsible for providing this data on an on-going basis, and

4) confirmation of your acceptance of the fund maintenance and data distribution pricing

We will keep you informed throughout the process of what’s happening with your request.

Once the funds have been added to the Database, we will advise you of their Morningstar Tickers and one of our dedicated data analysts will continue to work with you to maintain the funds information on our database.

Keywords: Fund activation

Fund Addition Request

Q: I’d like a fund to be added to your database. How can I make this happen?

Please send a request to helpdesk.au@morningstar.com
Make sure to include at least the APIR code and the fund name if known. We will then be in contact with the fund manager and will get back to you with the outcome of your request.

Keywords: Fund addition request

Types of Financial Products Covered

Q: What types of funds or financial products will you cover in your database?

Currently, only managed funds will be displayed on our database, though they may appear in various legal types. We capture open-end managed funds, property syndications, and structured products. 

Keywords: Funds, Types

Suppression of Funds

Q: A fund I was tracking no longer appears on your database. What happened to it?

If the fund is still in existence, it is likely that the fund has been finalised(i.e. terminated) or suppressed. When fund managers decide to terminate a fund, we will finalise it on our system and hence it will no longer be displayed as an active fund. We suppress funds at the request of fund managers who no longer want to track the funds on our database. We also suppress funds if we find that the fund has certain characteristics which would make them unsuitable for coverage, e.g. if the fund is missing historical unit prices. If you subscribe to our datafeed, a change in status of a fund is sent through in record 1R. Otherwise please email helpdesk.au@morningstar.com to find out exactly what happened to your fund.

Keywords: Suppression, status

Listed funds

Q: I don’t seem to see any listed funds in your database. Why is this?
 
We do not keep listed funds on our fund database. We separately manage data for listed funds on our equity database. For information on how to receive a data feed containing listed funds, please contact: helpdesk.au@morningstar.com

Keywords: Listed funds

Star Ratings & Recommendations

Q: You seem to be providing conflicting advice by rating a fund with five stars while at the same time placing an “avoid” recommendation on the fund. Can you explain why?

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

A Morningstar Rating - from one to five stars - is a purely quantitative measure based on historical performance and does not incorporate any forward-looking research or assumptions. Morningstar calculates each fund’s three-, five-, and 10-year MRAR measures, compared with the risk-free rate as measured by the Australian 90-Day Bank Bill Accepted Rate, provided there are enough monthly returns for these periods (36, 60, and 120 month-ends, respectively).

A fund’s overall Morningstar Rating is a 50:30:20 combination of 10-, five- and three-year Morningstar Ratings, drawn from the MRAR measures for these periods. When a fund does not have a 10-year track record but does have enough history for a five-year rating, we apply a 60:40 split on the five- and three-year Morningstar Ratings. For a fund with only three years worth of history, the overall Morningstar Rating is based entirely on the three-year Rating. These mixes reward consistent good performance over an extended timeframe, and are less subject to short-term variations in fund performance.

On the other hand, the Morningstar Recommendation - from “Highly Recommended” to “Avoid” - provides a clear and actionable distillation of our fund analysts' views about an investment strategy. The accompanying report and commentaries focus on key issues and risks, while extensive, regularly-updated holdings, valuation multiples, and performance data offer meaningful insights into current and future performance drivers and outcomes. Readers will understand how a fund manager’s philosophy and process translate into security selection, and whether or not the fund manager is staying true to label.

If the fund has performed well yet we see significant flaws in the investment strategy, it is possible that a five-star fund has an “Avoid” recommendation.

Keywords: Ratings and Recommendations

Q: Why isn’t a star rating showing for a fund?
 

To assign a star rating to a fund, there must have at least three years worth of performance history for the fund. The fund must belong to a category in which there are at least ten funds in total. In addition, the fund must be in a category Morningstar provides ratings for. In extreme cases where the funds in a category vary widely in their risk factor exposures (i.e., it is a “convenience category”), a star rating would have little value and is not assigned. To receive a star rating for the current month, we must receive performance data by the fourth working day of the new month. If you believe a fund satisfies these criteria yet still a star rating is not displayed, please contact helpdesk.au@morningstar.com

Keywords: Star rating, Obtaining

Q: I am inquiring about what is required and the process and cost of a fund getting a Morningstar rating?

We do not charge a fee for a Morningstar rating.  Any fund on the database is eligible for a rating, provided it meets the category requirements and has at least three years of performance history.

We do however charge annual fund maintenance and distribution fees for open funds at the end of last year are set at approximately $215 per fund dependent on the total number of funds on offer. Our goal is to encourage fund managers to maintain as many funds as possible on the Morningstar Database, thereby enabling us to provide comprehensive distribution of the broadest and deepest managed funds data to the market and deliver the best possible service to subscribers.

Keywords: Fund Ratings, costs

APIR codes

Q: What is an APIR code and how can I know the APIR of a certain fund?

An APIR product code is a unique identifier used widely in the financial services industry, however not every product has one.  It is similar to a Morningstar ticker.  You can search for a fund in the Morningstar products using the ticker, APIR code, or by fund name. A fund’s APIR code can be found at the issuer’s website

Keywords: APIR code

Q: How does Morningstar classify funds and assign categories?

The Morningstar Category™ classification system for funds lets institutions, advisers and investors effectively compare like funds. We group funds which can be reasonably considered to be close investment alternatives, and for which performance and other statistical measures are comparable.

Criteria for determining ‘close investment alternatives’ include whether:
• The tax treatment and legal characteristics of the funds is the same;
• Benchmarks, stated maximum and minimum exposures to asset classes, and possibly actual total exposures to various sectors, are similar and fall within the Morningstar definitions;
• The funds could be considered to be alternatives for performance comparisons and other statistical analysis and in constructing an investor’s portfolio;
• The fund’s investment style and market capitalisation constituency is considered to be highly consistent for portfolio construction purposes; and
• There are any other criteria that would be considered relevant by Morningstar.

Morningstar’s Category classification system, which has achieved widespread market acceptance, has been designed to ensure:
• Performance comparisons can be made within groupings where both volatility and return can be justifiably compared;
• Statistical analysis, including ratings, within groupings can be justifiably compared;
• Easy choice of competing funds and market analysis through a logical referencing scheme;
• Analysis does not suffer from inconsistency of taxation treatment; and
• A classification system which is easily-understood,

Click here to read the complete Classification Policy Document http://www.morningstaradviser.com.au/documents/methodology/Morningstar%20Classification%20Policy_1007.pdf

Click here to read the Morningstar Category Definitions http://www.morningstaradviser.com.au/documents/methodology/Morningstar%20Category%20Definitions_0110.pdf

Q: What controls does Morningstar have in place to ensure the integrity of the data?

Morningstar has thousands of validations in place to ensure the information presented in the database is reliable and accurate. Validations can for example be can be category based, related to a time series, or maximum/minimum values. Morningstar has a set of quality checks that are in place from the email level when we receive the raw data from fund managers all the way through loading data and performing calculations.

One type of a validation is tolerance levels for subsequent unit prices. For example, the database will flag any unit price for a fund that has a price variance greater than the specified allowed variance. Similar controls exist for other data points including category assignment, asset allocations, sizes and distributions.

Q: What are structured products?

Structured products are investment strategies that use derivatives and various financial instruments with exposure to fixed income and equity markets to customize the structure of the risk and return in order to meet an investor’s financial needs.

Structured products have a maturity date. A common feature in structured products is a “capital guarantee” function which protects the principal of the investment if the investment is held to maturity. There are also disadvantages associated with structured products.

Q: What are industry funds and what is Morningstar’s coverage of these funds?

As a result of strong demand for information on performance, fund size, and asset allocation data for the industry superannuation funds, Morningstar has begun to establish a database of industry funds to sit along its current analysis of retail super funds. This will allow a side-by-side comparison between funds at an investment level. Morningstar currently has data on Catholic Super, Cbus, AGEST Super, Asset Super, CareSuper, SunSuper, REI, REST, and HESTA.

Q: Why does the performance of the underlying funds differ from the platform fund?

There might be several reasons why the performance of the same strategy is different on different platforms. The funds might pay different tax (for example if they are different legal types), there might be different fees charged, and there might also be minor differences in the actual holdings.

Indices

Morningstar Indices Definition

Q: I’d like to find out more about your processes, i.e. the way you categorise funds, calculate returns, etc. Do you have any documents relating to your methodology?

For information on our research and reporting methodology, please see: http://corporate.morningstar.com.au/productpages/methodology.asp

Keywords: Methodology

Q: Can you tell me how the Morningstar Index is calculated?

The Morningstar Index is an arithmetical average of the returns for all funds assigned to that Morningstar Category. Morningstar uses the Morningstar Category as the primary peer group for a number of calculations, including percentile ranks, fund-versus-category-average comparisons, and the Morningstar Rating. The Morningstar Rating compares funds’ risk-adjusted historical returns. Among other things, the rating is designed to convey a sense of how skillfully a fund has been managed. Its usefulness depends, in part, on which funds are compared to one another.

It can be assumed that the returns of major asset classes (domestic equities, foreign equities, domestic bonds, etc.) will, over lengthy periods of time, be commensurate with their risk. However, asset class relative returns may not reflect relative risk over ordinary investor time horizons. For instance, in a declining interest rate environment, investment-grade bond returns can exceed equity returns despite the higher long-term risk of equities; such a situation might continue for months or even years. Under these circumstances many bond funds outperform equity funds, for reasons unrelated to the skills of the fund managers.

A general principle that applies to the calculation of fund star ratings follows from this fact; that is, the relative star ratings of two funds should be affected more by manager skill than by market circumstances or events that lie beyond the fund managers’ control.

Another general principle is that peer groups should reflect the investment opportunities for investors. So, categories are defined and funds are rated within each of the major markets around the world. Morningstar supports different category schemes for different markets, based on the investment needs and perspectives of local investors. For more information about available categories, please contact at helpdesk.au@morningstar.com.

Keywords: Morningstar Index, Calculation

Wholesale Balanced Index

Q: Do the Morningstar Indices include or exclude index funds?

Morningstar Indices may or may not include index funds depending on whether there is an index fund within that Morningstar category. Importantly, we do not specifically exclude index funds when calculating Morningstar Indices.

Keywords: Morningstar Index, Index Funds

Australian Bonds Index

Q: Does Morningstar have an Australian Bonds Index?

Although we do have Australian Bond peer group indices which track the average performance of managed funds that invest predominantly in Australian Bonds, we don't have an index directly following Australian bonds.

Keywords: Australian Bond Index

All Ords Accumulation Index

Q: For the All Ordinaries Accumulation Index (Morningstar ticker: 95002, country code AU), in record 3A the index seems to be multiplied by a factor of 10, i.e. you show a figure of 241,622.73 while the index is at 24,162.273?

Record 3A is a performance figure not the accumulation index itself. It is instead the performance value of an initial $10,000. The value index stared at 10,000 and in this case is currently at 241,622.73. On the other hand, the actual price index started at 1,000 and now is at 24,162.273.

Keywords: All Ords Accumulation Index

Operational Data Points

Wholesale vs. retail funds

Q: How do you distinguish between a wholesale fund and a retail fund?

Wholesale funds are generally aimed toward and offered to the professional/sophisticated investor markets, and therefore a high minimum investment will generally apply to such funds (most commonly above $50,000). Fund transactions are generally less frequent and on a much larger scale, resulting in lower associated fees and different fee structures. The administrative and reporting requirements of wholesale funds are also streamlined, therefore lowering further the associated fees for funds which have correspondingly high-volume, low-cost structures.

These funds will generally have the following characteristics:
• Higher minimum investment - generally greater than or equal to $50,000;
• Higher minimum additional investment - generally greater than or equal to $50,000;
• Lower up-front and ongoing fees;
• Service tailored to investor with higher demands; and
• Accessible only through other entities, for example superannuation funds and IDPS providers.
Retail funds are offer high-volume, low-value transactions; these funds are targeted toward many investors who are not deemed to be ‘sophisticated’ in the legal sense of the term. Due to the nature of the fund structure there are many associated fees, with noticeably higher ongoing management fees.

These funds will generally have the following characteristics:
• Low minimum investment - generally less than $50,000;
• Low minimum additional investment - generally less than $50,000;
• Higher up-front and ongoing fees; and
• Service tailored to general public.

Keywords: Wholesale funds vs. Retail funds

Unitised funds

Q: The unit price for a fund is displaying $1 on Morningstar yet is shown as something significantly more on the fund manager’s website. Why?

You should first look at the calculation method for the fund. This is most likely due to that fund being set up as non-unitised on our system; however it could also be a mortgage fund. If a fund manager isn’t able to provide us with a full history of unit prices for a fund then we will set up the fund to take a rolled-up rate only. Hence this will display a value of $1 for unit price. Mortgage funds pay regular distributions and this is reflected in their performance.

Keywords: Unit prices, unitised

Units on issue

Q: Where can you find information on units on issue for a fund?

Units on issue is a data point we do not collect. We collect unit prices, fund sizes, asset allocation, fees and some other data but not units on issue. For information on units, it is best to consult the fund manager and/or the fund’s website.

Keywords: Units on issue

Entry fees

Q: In the fees section of your manager profiles, there is entry fee listed. Is this fee the maximum applicable?

Yes, the entry fee listed is the maximum applicable for that particular fund.

Keywords: Fees, Entry

MER/ICR vs Management Fee

Q: Why are some funds MERs/ICRs the same as the "Management fee %", some are less and some are more?

The Management Fee can include any of the following: in relation to a product or fund - an amount payable for administering the fund; for a custodial arrangement - the cost involved, or amount paid or payable, for gaining access to, or participating in, the arrangement; distribution costs; other expenses and reimbursements in relation to a product or fund; amounts paid or payable for investing in the assets of the fund; amounts deducted from a common fund by way of fees, costs, charges or expenses, including amounts retrieved by an external fund manager or a product issuer; and amounts deducted from returns before allocation to the fund; estimated performance fees; any other investment-related expenses and reimbursements, including any associated with custodial arrangements.

The MER and ICR are the audited historical figures that represent what the fund actually charged. ICR has replaced MER for most funds. Managers will either report one or the other but not both. ICR / MER may or may not include a performance fee. If the performance fee has not been included then it can be considered an additional fee on top of the MER / ICR.
The Indirect Cost Ratio is a ratio of the fund's management costs that are not deducted directly from a member's or product holder's account, to the fund's total average net assets. Note: A dollar-based fee charged directly against a member's account, such as a $1 per week management cost is not included in the ICR.

The Management Expense Ratio is usually expressed as an annual percentage figure as a proportion of the Net Asset Value of the Fund, is the amount of an investor's money invested the Fund Manager takes each year to pay for the costs of operating and marketing the Fund.

The Performance Fee is the amount paid or payable, calculated by reference to the performance of a product or fund above a specified hurdle rate.

Keywords: MER, ICR, superannuation funds

Performance fees

Q: Your performance returns are net of all fees, does this include performance fees? If so, is this also a net value?

Yes, unit prices are normally net of the performance fees.

Keywords: Performance fees, total returns

Investment Management Fees

Q: When reporting investment management fees, does Morningstar display Management Expense Ratio (MER) data or Indirect Cost Ratio (ICR) data?

Current IFSA standards state to use ICR data over MER data, but as not all fund managers are supplying us with ICR data, it follows that not all funds on the Morningstar database display ICR data. Hence, both ICR and MER data are still current and valid for active funds on Morningstar's database.

Keywords: Fees, MER and ICR

Performance Data Points

Availability of monthly data

Q: Can you tell me within what time frame you have data (e.g. performance returns and asset allocation) updated within Adviser Workstation?

Performance returns are generally updated in Morningstar Adviser Workstation within 7 business days after each month’s end. Asset allocation, like performance is also updated monthly, but can vary substantially between types of funds and fund managers. We endeavor to chase a fund's asset allocation data as much as we are able and typically receive the data 2-3 weeks after month end. Fund size data is also usually received 2-3 weeks after month end. However, if there are any fund(s) where there are noticeable delays, please send and email to helpdesk.au@morningstar.com and we'll follow up with the fund managers to obtain this data as soon as possible.

Keywords: Frequency of Updates, Adviser Workstation

Frequency of valuation updates

Q: How can I tell how often unit pricing is updated?

Morningstar provides the valuation frequency for each fund on our database in the licensed data feed Record 1I.

Keywords: Frequency of updates, Datafeed

Receiving prices for closed funds

Q: We are receiving unit prices in our data feed for some funds which are closed but not finalised. We are not receiving any updates on the status of the funds though. Why?

Closed funds may still have exit prices flowing through but no entry prices.

Keywords: Closed funds

Buy/Sell spreads

Q: The buy/sell spread that you quote for a fund is different to that quoted by the fund on its website. Why?

We calculate the actual buy/sell spread ourselves using the entry and exit prices provided by the fund manager. We do not take into consideration quoted buy/sell spreads.

Keywords: Buy/sell spreads

Returns

Q: Can you tell me whether your managed fund return data is “net of fees” or “gross of fees”? How do you treat distributions?

Our returns are net of the ongoing fees. They do not take into account entry or exit fees. This is inline with the IFSA Standard 6.00, the guidelines that enable proper assessment of product returns when comparing month end returns, after fees are paid. This was established to ensure there is as much consistency as possible in performance measurement.

Keywords: Total Returns, Effects of fees and distributions

Ex-distribution exit price

Q: Can you please provide some details on how the ex-distribution Exit Price (Record 2E) is calculated?

Morningstar return calculations assume all distributions are reinvested on the ex-date at the ex-price. Morningstar calculates the ex distribution price by using the cumulative month end unit price less the CPU to get the ex distribution price. The cumulative price minus CPU equals to ex price only applies to unitised funds. The cum price should equal the ex price for Mortgage funds.

Each fund manager has a slightly different way of calculating an ex distribution price. As a result of this, the ex price received from the fund manager might be different to what Morningstar calculates. Some funds may strike an ex distribution price a few days after the distribution date.

Keywords: Ex-distribution exit price

Incorrect prices/distributions

Q: I’m seeing prices and distributions either missing or incorrect for some funds. Can I obtain pricing for those funds?

Please send an email to helpdesk.au@morningstar.com, stating clearly the APIR code of the fund. We will pass on the request to our data analysts who will look into the situation. We’ll keep you informed through the process as to the status of your request.

Keywords: Incorrect pricing/distributions, incorrect data

Benchmarks

Q: Why are you benchmarking a certain fund with the S&P/ASX200 Accumulation Index when the fund benchmarks itself to the S&P/ASX300 Accumulation Index?

We do not attach indices to funds directly but to the Category they belong to instead, hence we have a single benchmark assigned for all funds in each Morningstar Category. In Advisor Workstation however, you can change the benchmark from your overall fund selection. If you need help doing this, please contact: helpdesk.au@morningstar.com

Keywords: Benchmarks, Advisor Workstation

Realised capital gains

Q: In your fund profiles, in relation to “Income return” and Growth return”, in which of these two sections are realised capital gains reflected?

Realised capital gains must be distributed to the investor by the end of the tax year; as such they are income returns. However, there is no requirement to distribute the realised capital gains within the year. A manager can make distributions throughout the year, perhaps each quarter, but still not distribute all the realised capital gains until the very end of the year. So for periods shorter than a year, realised capital gains can be included in either income or growth return

Keywords: Realised capital gains

After-tax returns

Q: Are your after-tax returns calculated as per the IFSA guidance note? And is this available in a data feed?

We do calculate after-tax returns in accordance with the IFSA guidance note. We don't provide after-tax returns in our licensed data feeds. However we do provide the underlying tax data (in Record 2H). Additionally, after-tax returns are available on Advisor Workstation and Morningstar Direct.

Keywords: Returns, After-tax

After-tax returns for superannuation funds

Q: You publish effective after-tax returns for managed funds. Do you also publish after-tax returns for superannuation funds?

Superannuation fund earnings are currently taxed at 15% and this is at the fund rather than the individual investor level. Thus the superannuation fund pays the tax, not the individual investor, as is the case with unit trusts. The returns we publish are net (after) this 15% tax rate.

Keywords: After-tax returns, superannuation funds

Income yields

Q: Is Fund Annual Income yield a data point provided in your data feeds?

No we do not provide this as a data point in our feeds. We provide the Fund Total Value Index series and the Fund Capital Value Index Series. From these however you can calculate income yields for different time periods.

Keywords: Income Yield

Portfolio Data Points

Asset allocation data

Q: For some funds you are displaying either no asset allocation data or outdated data. Why?

As there is no legislative agreement which makes data submission by fund managers to Morningstar mandatory, it therefore hinders our ability to have all current data for all funds accessible to the public. A fund manager may not have the capacity to be able to supply all the data we desire for the funds they manage. You may contact us at helpdesk.au@morningstar.com to request asset allocation data and we will in turn request the data from a fund manager, however there is no guarantee for receiving that data.

Negative asset allocations

Q: Could you please provide an explanation for the negative asset allocations on some managed funds?

Net asset position should total 100%. We often receive data from fund managers to 4 decimal places but in our datafeeds, all asset allocation data is rounded to 2 decimal places. This sometimes leads to small rounding errors such as this. We however have a threshold for error of only ±0.01%.

An allocation to a particular asset class can be negative if the manager is shorting the asset. A positive allocation represents a normal investment in the asset where you will benefit when the asset price goes up, and suffer when the asset price goes down. When you short an asset, or have a negative allocation, you will benefit if the asset price goes down, and will suffer if the asset price increases.

An asset can have an allocation greater than 100% if the manager is using gearing. That is, if the manager is borrowing money to invest in the asset. Usually there will be a corresponding negative exposure to the cash asset class which represents the borrowing.

Keywords: Asset allocation, Negative

Data Feeds

Receiving a data feed

Q: I want to start receiving a fund data feed from Morningstar. Can you tell me what the process is?

If you already have an account executive assigned to you, please contact him or her with regards to your query. If you have not, please send an email with your request to: helpdesk.au@morningstar.com

When we have confirmed your application, we will deliver instructions to you on how to access the test data files from our ftp site. You will then be provided with an initial load file which contains full historical data for active funds on the Morningstar database. Once you have processed the initial load file successfully, we will then supply a daily incremental file on our ftp which contains data updates.

Keywords: Initiating a data feed

Integrity of data feed

Q: I’m having an issue with retrieving files from the data feed that you supply to us. Can you help me?

Please send an email to helpdesk.au@morningstar.com specifying exactly the nature of the problem and what steps you have followed when retrieving files. Please ensure first that IT systems at your company, for example firewall or protocol settings, have not recently changed.

Keywords: Data feed download issues

Availability of data feed files

Q: Is it possible for Morningstar to keep certain data feed files that we receive on the ftp for a longer period of time?

The process for files being moved into the archive directory on the Morningstar FTP for data feeds is the same for all directories.All files are created and posted to FTP at around 10pm each weeknight. The following day (usually by 3pm), all files in the root directory will be moved into the archives directory. They will remain there for another 20 days and will be deleted permanently after such times. Note that files are not created over the weekend.
Unfortunately, as this is standard practice across all clients who receive data feeds from Morningstar Australia and as such an extension to the time availability of files in the root directory for prolonged periods cannot be done.

Keywords: Availability of files

Adding funds to data feed

Q: I’d like for a particular fund to be added to your database so that we can receive it in our feed. Can you do this?

Please send an email to helpdesk.au@morningstar.com specifying exactly which fund you are looking to have added. Our team will then contact the fund manager to ask them to have their fund added into the database.

Keywords: Adding funds to data feed

Fund Suppression

Q. Why have we stopped receiving information/price data for a particular fund?

The first thing to check in this situation is for the current status of the fund in question. This data is provided in record 1R of the data feed. If the fund has a status of finalised or suppressed, we do not provide any updates for the funds.

Q. Why does a particular fund have a status of suppressed?

There are many reasons that a fund can have a status of suppressed. They include:
1. The fund manAger has asked us to remove their fund from the database.
2. The data team has identified a issue with the performance and have suppressed the fund while they are working on fixing the issue.
3. The fund has an unreported dividend that is over 30 days old. The reasoning for this is that while we are able to calculate the month-end return for a fund for the month that it goes ex-dividend, we are not able to calculate the following month-end return with the distribution and ex-price.

Q. What should we do when we receive a fund with a suppressed status?

When a fund has had a status of suppressed sent through, this investment should no longer be made available to the end users of the data. When the data issue has been resolved and the status is updated to active, we will resend a full historical refresh of data for this investment so that all changes made to the fund while is was suppressed will be reflected in client’s databases.

Large incremental files

Q: The file we received for the daily incremental file seems to larger than usual. Is there a reason for this?

At times when we perform pooling of funds, the size of the incremental file can be much larger than usual, especially if updating Record 4C – Asset Allocation. This process usually does not last for more than a few days at a time. However if this is materially affecting systems at your end, please send an email explaining your situation to: helpdesk.au@morningstar.com

Keywords: Large incremental files

Managed Funds Price Feed

Q: Do the prices in the data feed depend on the status of the fund?

Yes. We provide transaction entry and exit prices for all active funds that are open to new and existing investors. For closed funds (closed to new applications), only exit prices are provided in Morningstar's price feed. For closed funds (closed to all or closed to new investors), we only provide exit prices. In the new data feed (LDF version 2.5) we will be able send entry and exit prices for funds that are closed to new investors and we will continue to only send exit prices for funds that are closed to all investors. No prices are provided for funds that are suppressed or terminated.

Q: How do you determine the status of the fund i.e. active, closed, suppressed and terminated? Do you check with the Fund Managers, or refer to their website?

We do use websites and other public sources, but we always confirm with the fund manager before we make any of these changes on our database. We also encourage fund managers to contact us to tell us of these kinds of changes.

Q: Are the daily prices in the price feed soft or hard closed prices? Are the monthly prices soft or hard closed prices?

Morningstar captures transaction prices, so which prices the investors are transacting at. Most funds have moved to hard close transactional prices (IFSA standard from 2010).

Adviser Workstation FAQs

Fund Analysis

Q: We are looking to analyse various funds. What Morningstar product should I use for analysis?

We would recommend using Morningstar Adviser Workstation. It allows access to information on over 10,000 managed funds along with extensive equity data. For a free trial please go to http://www.morningstaradviser.com.au and click on Adviser Workstation Trial. Once you have filled in all fields, it will give you 15 days free access to the tool. For any related training or support, please send an email to: helpdesk.au@morningstar.com or call: (02) 9276 4446.

Keywords: Fund analysis, Advisor Workstation free trial

Morningstar Peer Groups in AWS

Q: In Adviser Workstation, can you explain to me why quartile rankings appear unordered even after ranking and why category totals seem to change when searching under the one category, e.g. Multisector Growth?

The Category Ranks and Totals in Category are based on the Morningstar Peer Groups. The Morningstar Peer Group is a combination of the fund's category, legal type, and product type. A fund peer group is a group of funds with the following characteristics:
• Taxation treatment of funds within the peer group is the same;
• Benchmarks, stated maximum and minimum asset exposures, objectives or possibly actual
• asset exposures for funds within the peer grouping are comparable;
• The style and size constituency of the fund is reliably consistent;
• The funds could be considered to be alternatives from which to choose in constructing a
• client’s portfolio;
• Performance data (both volatility and return) can be justifiably compared; and
• Other statistics such as ratings can be justifiably compared.

The ranks will order themselves as you expect and the totals in category will be consistent if the legal type and product type are specified along with the category in the search.

Keywords: Categories

Morningstar Indices in Adviser Workstation

Q: Is it possible to access the Morningstar Indices for 1 month, 3 month, and 6 month periods for the Australian Fund categories via Adviser Workstation?

Yes it is possible. To see the data take the following steps:
1) In the Research Universe, under the Search Menu, choose Find by Name, Ticker.
2) When the dialog pops-up, change the dropdown at the top from Name to 'Morningstar and Market Indices'.
3) Type in the name of the Index you are after and click (ex: Morningstar PG R ITr Eqty Aust') Find.
4) From the results returned, select which specific one you are after and click Add to move this selection to the bottom section. Repeat this process of finding and adding until you have built your list in the bottom section.
5) Click OK
6) You should now see all the indexes you selected on the main screen.
7) Using the View menu at the top of the screen, change the View to 'Trailing Returns'. There you will see the 1 month, 3 month, 6month, etc returns for each of your selected indices.

Keywords: Morningstar Indices, Adviser Workstation

Long-term return averages in AWS

Q: I want to find long-term return averages for different asset classes, e.g. cash, fixed interest, property, equities, etc. Do you hold that information?

Yes we do hold that information. When accessing Adviser Workstation you can view averages using the search functionality once you select the Research Universe.

First you click on to the Search tab and then you select the Criteria Asset Class and select the type of asset class you require then press OK. You will then have a results page at the bottom of which will have the listed averages. Scrolling across the page you will see the averages for all returns periods we cover. Please note if there are no averages displaying please go to the View tab and Click on the Averages tab. Once this is done, all the averages will appear.

Keywords: Long-term returns in Adviser Workstation

Marketshare & Investor Supermarket FAQs

Managed Fund Industry Statistics

Q: I would like statistics regarding the managed fund industry, e.g. fund size, fund flows, etc. Do you keep any of that information?

Information of this nature can be found in our quarterly publication “The Morningstar Market Share Report”. The Market Share Report collates fund size and flow data from approximately 120 of Australia's major fund managers that is data on over 10,000 Australian managed funds. For information on how to obtain the report, please contact us on (02) 9276 4446 or email helpdesk.au@morningstar.com.

Keywords: Managed fund industry statistics, MarketShare report

MarketShare Report for NZ

Q: I have seen your Australian Market Share Report. Would you have a similar report for the New Zealand market?

We do indeed create a similar report for the New Zealand market. For more information on how to obtain the report, please contact us on (02) 9276 4446 or email helpdesk.au@morningstar.com.

Keywords: Market Share Report NZ

Investor information

Q: I understand that Morningstar may be able to provide a database listing of Australian institutional investors and their consultant firm affiliates. Is this true and where can I find this information?

Yes, detailed information on superannuation funds, fund of funds, non-super funds, asset allocations, fund performance, asset consultants, fund managers, manager portfolios, service providers and comprehensive contact information can be found in our product “InvestorSupermarket”. For information on how to subscribe to InvestorSupermarket, please call (02) 9256 8000 or email helpdesk.au@morningstar.com.

Keywords: Investor information, InvestorSupermarket

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