CHICAGO, Dec. 12, 2011 /PRNewswire/ -- Morningstar, Inc.
(NASDAQ: MORN), a leading provider of independent investment
research, has launched a new sector classification system for the
universe of fixed income funds, including U.S. open-end mutual
funds, ETFs, variable annuity subaccounts, separate accounts,
collective investment trusts, and insurance group separate
accounts. The new system provides a more detailed view of a fund's
strategy and investments. It also better addresses the needs of
global investors by including sectors for world and emerging market
bond funds.
"As many investors found out the hard way in 2008, two bond
funds may be in the same category, but have very different holdings
and risk exposure," said John
Rekenthaler, vice president of research for Morningstar.
"Morningstar's new classification system helps investors to better
understand a fixed income fund's investments and more accurately
compare it with other funds in the same category."
The new classification methodology is based on a three-tier
system starting with six Super Sectors, including Government,
Municipal, Corporate, Securitized, Cash & Equivalents, and
Derivatives. Below the Super Sectors are 17 Primary Sectors, which
then break down into 72 Secondary Sectors. Morningstar applies its
sector classification system to all fixed-income funds globally as
well as funds with significant bond exposure such as allocation
funds. Under the old two-tiered system, fixed-income securities and
derivatives in a fund's portfolio were mapped into one of 13
Sectors, which rolled up into four Super Sectors.
The new sector assignments are available in Morningstar's
web-based products today, and the company expects to roll them out
in all of its products in the coming months. The Morningstar Global
Fixed Income Sector Classification methodology is available at
http://corporate.morningstar.com/FIClassification.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent
investment research in North
America, Europe,
Australia, and Asia. The company offers an extensive line of
products and services for individuals, financial advisors, and
institutions. Morningstar provides data on approximately 330,000
investment offerings, including stocks, mutual funds, and
similar vehicles, along with real-time global market data on more
than 5 million equities, indexes, futures, options, commodities,
and precious metals, in addition to foreign exchange and Treasury
markets. Morningstar also offers investment management services
through its registered investment advisor subsidiaries and has more
than $167 billion in assets under
advisement and management as of Sept. 30,
2011. The company has operations in 26 countries.
©2011 Morningstar Inc. All rights reserved.
MORN-R
Media Contact:
Alexa Auerbach
312-696-6481, alexa.auerbach@morningstar.com
SOURCE Morningstar, Inc.