Morningstar Analyst Take

Overview

The Morningstar Analyst Take component displays a qualitative analysis on a fund. Morningstar^SM analysts evaluate funds based on five key pillars—Process, Performance, People, Parent, and Price. It is believed that a pillar-based examination helps identify funds more likely to outperform their peers on a risk-adjusted basis over the long term. Analysts assign a rating of Positive, Neutral, or Negative to each pillar.

The component displays the following:

•the fund’s ratings for each of the five pillars

•an in-depth analysis of the fund, and

•the analyst’s reasoning behind the ratings.

Alternate Uses

You can use this component to answer the questions such as the following:

•Given the fund’s process, does the fund’s Performance Pillar rating indicate its performance pattern is logical? Has the fund earned its keep with strong risk-adjusted returns over time?

•Does the fund’s Price Pillar rating indicate the fund is a good value proposition when compared to similar funds sold through similar channels?

•Given the fund’s process, does the fund’s Process Pillar rating indicate the management’s strategy enables it to execute the process well and consistently over time? Does the process and management strategy result in any competitive advantage?

•What does the fund’s People Pillar rating indicate reveal about the Morningstar analyst’s assessment of the impact of management’s talent, tenure, and resources?

•What does the fund’s Parent Pillar rating indicate about the prevailing priorities at the firm—stewardship or salesmanship?

For capabilities common to most components, read the Components Overview.

Last Updated: February 28, 2018

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The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind.  Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Any statements that are nonfactual in nature constitute opinions only, are subject to change without notice, and may not be consistent across Morningstar. Past performance is no guarantee of future results.