Performance
Growth of $10,000 Graph
A chart showing the growth of a $10,000 investment in terms of both NAVs and market prices.
Red line: The growth of the same investment based on market-price performance.
Orange line: the fund's Morningstar Category (see definition below).
Green line: The growth of a $10,000 investment based on NAV performance.
The starting date for each line is set to the earliest month from which Morningstar has continuous monthly return data, or to the leftmost point on the chart.
All three lines are plotted on a logarithmic scale.
FAQ: What is a logarithmic scale?
Annual Returns
All references to total return represent a fund's gains over a specified period of time. Total return includes both income (in the form of dividends or interest payments) and capital gains or losses (the increase or decrease in the value of a security). The total returns account for management, administrative, and other costs automatically deducted from fund assets.
FAQ: Why might Morningstar's return figures differ from those published by other sources?
Market Return
Morningstar calculates the market-price return by taking the change in the fund's market price, reinvesting all income and capital-gains distributions during the period, and dividing by the starting market price.
NAV Return
Morningstar calculates NAV total return by taking the change in a fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV.
+/- Category: The amount by which a fund over- or underperformed its category during a given calendar year.
+/- Index: The amount by which a fund over- or underperformed its primary index during a given calendar year.
Fund Details
Manager Name
The name of the individual or individuals who are employed by the advisor or subadvisor who are directly responsible for managing the fund’s portfolio, as taken directly from the fund's prospectus. Other terms that may appear in this column include the following:
Multiple Managers: Appears when more than two people are involved in the fund management, and they manage independently. In most cases, multiple managers are employed at different subadvisors or investment firms.
Management Team: Used when there are more than two people involved in fund management, and they manage together, or when the fund strongly promotes its team-managed aspect.
Et al: Appears just after a manager name, indicates that while other people are involved in fund management, the person listed acts as the leader or is recognized by the fund as being the principal management player.
Manager Start Date
The date the current manager began managing the fund.
Trading Information
Average Daily Volume (Shares)
The average daily trading volume of common shares during the trailing 12 months.
Shares Outstanding
This is the most recent figure for the total number of common shares outstanding.
Exchanges
Indicates the exchange on which the fund is traded. The most common exchanges for closed-end funds are the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX)
Other exchanges that may be listed include:
NASDAQ
CHX: Chicago Stock Exchange
TSE: Toronto Stock Exchange
PSE: Pacific Stock Exchange
OSE: Osaka Stock Exchange
OTC: Over-the-counter market
Quick Stats
Market Price
The price at which a closed-end fund may be bought or sold. The market price of a closed-end fund share generally differs from the NAV; this price difference—resulting in a premium or discount—is one of the main distinctions between closed-end funds and open-end mutual funds.
Day Change
The change in the market price of the fund from the prior business day.
NAV
A fund's net asset value (NAV) represents its per-share price. A fund's NAV is derived by dividing the total net assets of the fund, less fees and expenses, by the number of shares outstanding.
Premium/Discount
The amount by which a fund's market price is greater or less than the NAV, expressed as a percentage of the NAV. A negative number indicates that the fund's shares sold at a discount to NAV, and a positive number indicates that shares sold at a premium. For example, if the number shown is -10.0, the shares sold at a 10% discount to NAV.
Morningstar Rating
The Morningstar Rating brings both performance and risk together into one evaluation. To determine a fund's star rating for a given period (three, five, or 10 years), the fund's Morningstar Risk score is subtracted from its Morningstar Return score. The resulting number is plotted along a bell curve to determine the fund's rating for each time period: If the fund scores in the top 10% of its broad asset class (domestic stock, international stock, taxable bond, or municipal bond), it receives 5 stars (Highest); if it falls in the next 22.5%, it receives 4 stars (Above Average); a place in the middle 35% earns it 3 stars (Neutral or Average); those in the next 22.5% receive 2 stars (Below Average); and the bottom 10% get 1 star (Lowest). The star ratings are recalculated monthly.
Morningstar Ratings for closed-end funds are based on NAV rather than market-price total returns. Why?
Morningstar Category
While the investment objective stated in a fund's prospectus may or may not reflect how the fund actually invests, the Morningstar Category is assigned based on the underlying securities in each portfolio. Morningstar Categories are designed to help investors and investment professionals make meaningful comparisons between funds. The Categories make it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds. We place funds in a given category based on their portfolio statistics and compositions over the past three years. If the fund is new and has no portfolio history, we estimate where it will fall before giving it a more permanent category assignment. When necessary, we may change a category assignment based on recent changes to the portfolio.
Net Assets ($Mil)
This figure is recorded in millions of dollars and represents the fund's total asset base, net of fees and expenses.
Expense Ratio
Expresses the percentage of assets deducted each fiscal year for fund expenses, including management fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund. Portfolio transaction fees or brokerage costs are not included in the expense ratio. The expense ratio, which is deducted from the fund's average net assets, is accrued on a daily basis.
This figure is taken from the fund's annual report.
Exchange
Indicates the exchange on which the fund is traded. The most common exchanges for closed-end funds are the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX)
Other exchanges that may be listed include:
NASDAQ
CHX: Chicago Stock Exchange
TSE: Toronto Stock Exchange
PSE: Pacific Stock Exchange
OSE: Osaka Stock Exchange
OTC: Over-the-counter market
Inception Date
The date the closed-end fund began operations.
Dividend Yield (Mkt)
Portfolio
Top 5 Holdings
These are the top 5 holdings in the fund's portfolio ranked by the % of net assets.
% Net Assets : Morningstar calculates this figure by dividing the market value of the security by the fund's total net assets. If a few securities take up a large percentage of the fund's net assets, the fund uses a concentrated portfolio strategy. If the percentage figures are low, then the manager is not willing to bet heavily on any particular security.
Current Investment Style (Morningstar Style Box)
The Morningstar Style Box is a nine-square grid that provides a graphical representation of the investment style of stocks and funds. For stocks and stock funds, it classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis). Fixed-income funds are classified according to credit quality (the vertical axis) and sensitivity to changes in interest rates (the horizontal axis).
Asset Allocation
% Cash: The percentage of the fund’s net assets held in cash. Cash encompasses both actual cash and cash equivalents (fixed-income securities with a maturity of one year or less) held by the portfolio plus receivables minus payables.
Note: Negative percentages of cash indicate that the portfolio is leveraged, meaning it has borrowed against its own assets to buy more securities or that it has used other techniques to gain more than 100% exposure to the market.
% Stocks: The percentage listed under the heading Stocks incorporates only the portfolio’s straight common stock holdings.
% Bonds: This data point identifies the percentage of the fund’s net assets held in bonds. Bonds include everything from government notes to high-yield corporate bonds.
% Other: Other includes preferred stocks (equity securities that pay dividends at a specific rate) as well as convertible bonds and convertible preferreds, which are corporate securities that are exchangeable for a set amount of another form of security (usually common shares) at a prestated price. Other also may denote holdings in not-so-neatly-categorized securities, such as warrants and options.
Top 3 Stock Sectors % (stock funds only)
The top sectors in which the fund has placed its stock assets. Morningstar divides the economy into three super sectors and 11 sub-sectors. Read the global equity classification methodology.
Cyclical
Basic Materials: Companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing. Companies in this sector include ArcelorMittal, BHP Billiton and Rio Tinto.
Consumer Cyclical: This sector includes retail stores, auto and auto parts manufacturers, companies engaged in residential construction, lodging facilities, restaurants and entertainment companies. Companies in this sector include Ford Motor Company, McDonald’s and News Corporation.
Financial Services: Companies that provide financial services which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. Companies in this sector include Allianz, J.P. Morgan Chase and Legg Mason.
Real Estate: This sector includes mortgage companies, property management companies and REITs. Companies in this sector include Kimco Realty Corporation, Vornado Realty Trust and Westfield Group.
Sensitive
Communication Services: Companies that provide communication services using fixed-line networks or those that provide wireless access and services. This sector also includes companies that provide internet services such as access, navigation and internet related software and services. Companies in this sector include AT&T, France Telecom and Verizon Communications.
Energy: Companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal. Companies in this sector include BP, ExxonMobil and Royal Dutch Shell.
Industrials: Companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms as well as companies engaged in transportations and logistic services. Companies in this sector include 3M, Boeing and Siemens.
Technology: Companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services. Also includes companies engaged in the manufacturing of computer equipment, data storage products, networking products, semi¬conductors, and components. Companies in this sector include Apple, Google and Microsoft.
Defensive
Consumer Defensive: Companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education & training services. Companies in this sector include Philip Morris International, Procter & Gamble and Wal-Mart Stores.
Healthcare: This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term care facilities, and medical equipment and supplies. Companies in this sector include Astra Zeneca, Pfizer and Roche Holding.
Utilities: Electric, gas, and water utilities. Companies in this sector include Electricité de France, Exelon and PG&E Corporation.
Top 3 Credit Weightings (bond funds only)
The credit analysis depicts the quality of bonds in the fund's portfolio. The analysis reveals the percentage of fixed-income securities that fall within each credit-quality rating as assigned by Standard & Poor's or Moody's.
At the top of the ratings are AAA bonds. U.S. government bonds are also included within the AAA category (effective 6/30/06). Bonds with a B rating are the lowest bonds that are still considered to be of investment grade. Bonds that are rated lower than B (often called junk bonds or high-yield bonds) are considered to be quite speculative. Any bonds that appear in the NR/NA category are either not rated by Standard & Poor's or Moody's, or do not currently have a rating available.