Current Investment Style-Snapshot Report

Equity Investment Style

This section displays the percentage of total stock holdings within the portfolio that fall into each of the nine areas of the Equity Style Box. This calculation excludes cash, bonds and not classified holdings. After determining the equity style of each stock or fund, we sum the weights (%) of the holdings with the same style. This equals the total weighting for that particular investment style among the portfolio stock holdings.

The equity style box is a nine-box matrix that displays the weighted portfolio stock and mutual fund investment methodology and the size of the companies in which they invest. Combining these two variables offers a broad view of a portfolio's equity holdings and risk. For a complete explanation of how we calculate the Equity Style Box for stocks and stock funds, see the Morningstar Style Box topic.

Fixed-Income Investment Style

This section displays the percentage of total bond holdings within the portfolio that fall into each of the nine areas of the Fixed-Income Style Box. This calculation excludes cash, stocks and not classified holdings.

After determining the fixed-income style of each bond and bond fund, we sum the weights (%) of the holdings with the same style. This equals the total weighting for that particular investment style among the portfolio's bond holdings.

Domestic and international fixed-income funds feature their own style boxes, which focus on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality. Morningstar splits fixed-income funds into three groups of rate sensitivity as determined by maturity (short, intermediate, and long) and three credit-quality groups (high, medium, and low). These groupings graphically display a portfolios average maturity and credit quality. Nine possible combinations exist, ranging from short maturity/high quality for the safest funds to long maturity/low quality for the more volatile.