Morningstar® Essentials™

Maximize the Potential

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Drive asset growth. Promote new products. Expand marketing strategies.

Morningstar® EssentialsTM 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 invest-

ment information.

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

Develop investment communications.Add credibility to investment guides and fact sheets with Morningstar’s inde-pendent research and data.

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

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

Send a clear message.Augment presentations to investors andwholesalers by incorporating Morningstar metrics to compare andcontrast products.

Catch their eye.Reach thousands every day with theinstantly recognizable Morningstar Rating™, Morningstar Style Box™, and other objective statistics.

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

Maximize advertising impact.Distinguish an investment product from competitors with convincingMorningstar statistics.

Invigorate the ordinary.Draw attention to traditional direct mailcampaigns by adding recognizable, straight-forward data.

Educate and empower investors. Provide clarity and depth in brochures tohelp investors make informed decisions.

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

Move around town.Display marketing messages featuringMorningstar data and images.

Morningstar RatingTM

The Morningstar Rating is a measure of an investment’sload- and risk-adjusted return, relative to other investmentsin its peer group. Investments are rated for up to three time periods—three, five, and 10 years—and these ratingsare combined to produce an overall rating. Ratings are from 1 to 5 stars, with the best performers receiving 5 starsand the worst performers receiving 1 star. The rating is auseful tool for investors to quickly and easily identify invest-ments worthy of further research.

Morningstar® Extended Performance RatingTM

The Morningstar Extended Performance Rating is basedon a combination of real and extended performance.Morningstar calculates extended performance for newershare classes (or structures) of an investment based on the returns of the oldest share class and any fee differ-ences between the classes. By lengthening the amount of information available, extended performance helpsinvestors evaluate the full performance of a portfolio underthe lens of a specific share class fee structure.

Morningstar Style BoxTM

The Morningstar Style Box is a nine-square grid that, forequity 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 groupsof interest-rate sensitivity (high, medium, and low) and threecredit-quality groups (high, mid, and low). The Style Box provides an easy-to-follow visual representation of fundcharacteristics and enables informed comparisons and port-folio construction based on what funds actually hold.

Morningstar Category/Morningstar Category % RankInvestments are placed into Morningstar Categories based on their compositions and portfolio statistics so thatinvestors can make meaningful comparisons. MorningstarCategory % Rank is a fund’s total-return percentile rank relative to all funds in the same category. The highest (ormost 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 mayhave received a 3-star rating, but could be in the top half of their category performance.

Morningstar RiskThis metric assesses the variation in an investment’s monthly returns with greater penalties for downside varia-tion. Morningstar Risk is measured for three, five, and 10 years, and these separate measures are then combinedto produce an overall measure where five is high risk and one is low risk. This measure helps investors evaluateinvestments 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 ReturnMorningstar Return determines an investment’s excessreturn over the risk-free rate after adjusting for allapplicable sales loads. Morningstar Return is measuredfor three, five, and 10 years against other investmentsin the same Morningstar Category, and these separatemeasures are then combined to produce an overall measure,where five is high (good) and one is low (poor). Thismeasure helps investors evaluate funds that have the sameMorningstar Rating for the same time period.

OptionalMorningstar Ownership ZoneThe Morningstar Ownership Zone provides a more completepicture of how a fund’s holdings are distributed. It is theshaded area of the Style Box, representing at least 75% ofthe fund’s stock holdings, and is centered around a centroid.

Key Data Points

Data UniversesOpen-end mutual fundsClosed-end mutual fundsVariable annuity/life subaccounts and underlying fundsSeparate accountsExchange-traded funds

Learn More About Morningstar® EssentialsTM

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