Funds are grouped into categories according to their actual investment style, not merely their stated investment objectives, nor their ability to generate a certain level of income. To ensure homogeneous groupings, Morningstar normally allocates funds to categories on the basis of their portfolio holdings. Several portfolios are taken into account to ensure that the fund´s real investment stance is taken into account.
Europe: Single Country
Austria Equity
Austria Equity funds invest primarily in the equities of companies based in Austria. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Austrian equities.
Morningstar Category Index: MSCI Austria NDTR
Belgium Equity
Belgium Equity funds invest primarily in the equities of companies based in Belgium. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Belgian equities.
Morningstar Category Index: MSCI Belgium NDTR
Denmark Equity
Denmark Equity funds invest primarily in Danish companies. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets Danish equities.
Morningstar Category Index: MSCI Denmark NDTR
Eurozone Single Country Equity
Eurozone Single Country Equity funds invest primarily in the equities of companies based in Eurozone countries for which there are no distinct Morningstar categories (such countries have too few funds to support a distinct category). Currently, there are only two countries for which this is the case: Greece and Portugal. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Greek or Portuguese equities.
Morningstar Category Index: MSCI EMU NDTR
Finland Equity
Finland Equity funds invest primarily in the equities of companies based in Finland. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Finnish equities.
Morningstar Category Index: MSCI Finland NDTR
France Large-Cap Equity
France Large-Cap Equity funds invest primarily in the equities of large-cap French companies. Equities in the top 70% of the European equity market (including the UK) are defined as large-cap. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in French equities.
Morningstar Category Index: MSCI France NDTR
France Small/Mid-Cap Equity
France Small/Mid-Cap Equity funds invest primarily in the equities of small-cap and mid-cap French companies. Their holdings typically fall in the bottom 30% of the capitalisation of the European equity market (including the UK). The funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in French equities.
Morningstar Category Index: MSCI France Sm-Cap NDTR
Germany Large-Cap Equity
Germany Large-Cap Equity funds invest primarily in the equities of large-cap German companies. Equities in the top 70% of the European equity market (including the UK) are defined as large-cap. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in German equities.
Morningstar Category Index: MSCI Germany NDTR
Germany Small/Mid-Cap Equity
Germany Small/Mid-Cap Equity funds invest primarily in the equities of small-cap and madcap German companies. Their holdings typically fall in the bottom 30% of the capitalization of the European equity market (including the UK). The funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in German equities.
Morningstar Category Index: MSCI Germany Sm-Cap NDTR
Italy Equity
Italy Equity funds invest primarily in the equities of companies based in Italy. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Italian equities.
Morningstar Category Index: MSCI Italy NDTR
Netherlands Equity
Netherlands Equity funds invest primarily in the equities of companies based in the Netherlands. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Dutch equities.
Morningstar Category Index: MSCI Netherlands NDTR
Norway Equity
Norway Equity funds invest primarily in Norwegian companies. These funds invest at least 75% of total assets in equities and invest at least 75% of equity assets in Norwegian equities.
Morningstar Category Index: Mutual Fund Index Linked / TOTX
Russia Equity
Russia Equity funds invest primarily in the equities of companies based in Russia. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Russian equities.
Morningstar Category Index: MSCI Russia NDTR
Spain Equity
Spain Equity funds invest primarily in the equities of companies based in Spain. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Spanish equities.
Morningstar Category Index: MSCI Spain NDTR
Sweden Large-Cap Equity
Sweden Large-Cap Equity funds invest primarily in the equities of large-cap Swedish companies. Equities in the top 70% of the capitalisation of the European equity market (including the UK) are defined as large-cap. These funds invest at least 75% of total assets in equities and invest at least 75% of equity assets in Swedish equities.
Morningstar Category Index: MSCI Sweden NDTR
Sweden Small/Mid-Cap Equity
Swedish Small/Mid-Cap Equity funds invest primarily in the equities of small-cap and madcap Swedish companies. Their holdings typically fall in the bottom 30% of the capitalization of the European equity market (including the UK). These funds invest at least 75% of their total assets in equities, and invest at least 75% of equity assets in Swedish equities.
Morningstar Category Index: MSCI Sweden Small Cap NDTR
Sweden/Global Equity
Sweden/Global Equity funds invest globally in equities but have a large position in Swedish equities. Typically funds in this category have between 30 and 75% of total assets invested in Swedish equities.
Morningstar Category Index: 50% MSCI The World Index Free NDTR, 50% MSCI Sweden NDTR
Switzerland Large-Cap Equity
Switzerland Large-Cap Equity funds invest primarily in the equities of large-cap Swiss companies. Equities in the top 70% of the European equity market (including the UK) are defined as large-cap. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Swiss equities.
Morningstar Category Index: MSCI Switzerland NDTR
Switzerland Small/Mid-Cap Equity
Switzerland Small/Mid-Cap Equity funds invest primarily in the equities of small-cap and mid-cap Swiss companies. Their holdings typically fall in the bottom 30% of the capitalisation of the European equity market (including the UK). These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Swiss equities.
Morningstar Category Index: MSCI Switzerland Sm-Cap NDTR
UK Large-Cap Blend Equity
UK Large-Cap Blend Equity funds are fairly representative of the overall UK equity market in size, growth rates and price. Equities in the top 70% of the European equity market (including the UK) are defined as large-cap. The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds tend to invest across the spectrum of UK industries. At least 75% of total assets are invested in equities and at least 75% of equity assets are invested in UK equities.
Morningstar Category Index: FTSE 100
UK Large-Cap Growth Equity
UK Large-Cap Growth Equity funds invest primarily in the equities of large-cap UK
companies that are more expensive or projected to grow faster than other large caps in
Europe (including the UK). Equities in the top 70% of the capitalisation of the European
equity market (including the UK) are defined as large-cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high
valuations (high price ratios and low dividend yields). Most of these funds focus on
companies in rapidly expanding industries. At least 75% of total assets are invested in
equities and at least 75% of equity assets are invested in UK equities.
Morningstar Category Index: MSCI United Kingdom Growth NDTR
UK Large-Cap Value Equity
UK Large-Cap Value Equity funds invest primarily in the equities of large-cap UK
companies that are less expensive or growing more slowly than other large-caps in
Europe (including the UK). Shares in the top 70% of the capitalisation of the European
equity market (including the UK) are defined as large-cap. Value is defined based on low
valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). At least 75% of total assets are invested in
equities and at least 75% of equity assets are invested in UK equities.
Morningstar Category Index: MSCI United Kingdom Value NDTR
UK Mid-Cap Equity
Some UK Mid-Cap Equity funds invest in equities of all sizes, thus leading to a mid-cap
profile, but others focus on mid-cap companies. The European mid-cap range represents
the 20% of the European equity market (including the UK) that falls between small caps
(the bottom 10% of capitalisation) and large caps (the top 70% of capitalisation). At least
75% of total assets are invested in equities and at least 75% of equity assets are invested
in UK equities.
Morningstar Category Index: FTSE 250 Ex Inv
UK Small-Cap Equity
UK Small-Cap Equity funds invest primarily in the equities of small-cap UK companies.
Equities in the bottom 10% of the European equity market (including the UK) are defined
as small-cap. At least 75% of total assets are invested in equities and at least 75% of
equity assets are invested in UK equities.
Europe: Regional
Emerging Europe Equity
Emerging Europe Equity funds invest primarily in the equities of companies based in
Emerging Europe. These funds invest at least 75% of total assets in equities, and invest at
least 75% of equity assets in Emerging Europe equities.
Morningstar Category Index: MSCI EM Eastern Europe ND
Emerging Europe ex-Russia Equity
Emerging Europe ex-Russia Equity funds invest primarily in the equities of companies based in Emerging Europe, excluding Russia. These funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in non-Russian Emerging Europe equities.
Europe Large-Cap Blend Equity
Europe Large-Cap Blend Equity funds are fairly representative of the overall European
equity market (including the UK) in size, growth rates and price. Equities in the top 70% of the European equity market (including the UK) are defined as large-cap. The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds tend to invest across the spectrum of European industries. At least 75% of total assets are invested in equities and at least 75% of equity assets are invested in European equities.
Morningstar Category Index: MSCI Europe NDTR
Europe Large-Cap Growth Equity
Europe Large-Cap Growth Equity funds invest primarily in the equities of large-cap
European companies that are more expensive or projected to grow faster than other
European large caps. Equities in the top 70% of the capitalisation of the European equity
market (including the UK) are defined as large-cap. Growth is defined based on fast
growth (high growth rates for earnings, sales, book value, and cash flow) and high
valuations (high price ratios and low dividend yields). Most of these funds focus on
companies in rapidly expanding industries. At least 75% of total assets are invested in
equities and at least 75% of equity assets are invested in European equities.
Morningstar Category Index: MSCI Europe Growth NDTR
Europe Large-Cap Value Equity
Europe Large-Cap Value Equity funds invest primarily in the equities of large-cap
European companies that are less expensive or growing more slowly than other European
large caps. Equities in the top 70% of the capitalization of the European equity market
(including the UK) are defined as large-cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). At least 75% of total assets are invested in equities and at least 75% of equity assets are invested in European equities.
Europe Mid-Cap Equity
Some Europe Mid-Cap Equity funds invest in equities of all sizes, thus leading to a madcap profile, but others focus on mid-cap companies. The European mid-cap range
represents the 20% of the European equity market (including the UK) that falls between
small caps (the bottom 10% of capitalisation) and large caps (the top 70% of
capitalisation). At least 75% of total assets are invested in equities and at least 75% of
equity assets are invested in European equities.
Morningstar Category Index: MSCI Europe NDTR
Europe Small-Cap Equity
Europe Small-Cap Equity funds invest primarily in the equities of small-cap European
companies. Equities in the bottom 10% of the European equity market (including the UK)
are defined as small-cap. At least 75% of total assets are invested in equities and at least
75% of equity assets are invested in European equities.
Morningstar Category Index: MSCI Europe Small Cap NDTR
Europe ex-UK Equity Large Cap
Europe ex-UK Large Cap funds invest primarily in the equities of large-cap companies in
continental Europe. Equities in the top 70% of the capitalisation of the European equity
market (including the UK) are defined as large-cap. These funds may also include smaller
positions in the region's smaller markets, including the emerging markets of Eastern
Europe. These funds invest at least 75% of their total assets in equities, and invest at least
75% of equity assets in European equities, with less than 10% in the UK.
Morningstar Category Index: MSCI Europe Ex UK NDTR
Europe ex-UK Small/Mid Cap
Europe ex-UK Small/Mid Cap funds invest primarily in the equities of small- and mid-cap companies in continental Europe. These funds primarily invest in equities that fall in the bottom 30% of the European equity market (including the UK). These funds may also
include smaller positions in the region's smaller markets, including the emerging markets
of Eastern Europe. These funds invest at least 75% of their total assets in equities, and
invest at least 75% of equity assets in European equities, with less than 10% in the UK.
Morningstar Category Index: MSCI Europe Ex UK Small Cap NDTR
Eurozone Large-Cap Equity
Eurozone Large-Cap Equity funds invest primarily in the equities of large-cap companies
from the 12 Eurozone countries. Funds in this category typically invest across multiple
countries in the Eurozone. Equities in the top 70% of the European equity market
(including the UK) are defined as large-cap. These funds invest at least 75% of total
assets in equities, and invest at least 75% of equity assets in Eurozone equities.
Eurozone Mid-Cap Equity
Some Eurozone Mid-Cap Equity funds invest in equities of all sizes, thus leading to a madcap profile, but others focus on mid-cap companies. Funds in this category typically invest across multiple countries in the Eurozone.The mid-cap range represents the 20% of the European equity market (including the UK) that falls between small caps (the bottom 10% of capitalisation) and large caps (the top 70% of capitalisation). At least 75% of total
assets are invested in equities and at least 75% of equity assets are invested in Eurozone
equities.
Eurozone Small-Cap Equity
Eurozone Small-Cap Equity funds invest primarily in the equities of small-cap companies
from the 12 Eurozone countries. Funds in this category typically invest across multiple
countries in the Eurozone. Equities in the bottom 10% of the European equity market
(including the UK) are defined as small-cap. These funds invest at least 75% of total
assets in equities, and invest at least 75% of equity assets in Eurozone equities.
Nordic Equity
Nordic Equity funds invest primarily in equities of companies from Scandinavian countries
such as Sweden, Norway, Finland and Denmark. These funds invest at least 75% of their
total assets in equities, and invest at least 75% of equity assets in equities from the Nordic
countries.
Asia
Asia-Pacific with Japan Equity
Asia-Pacific with Japan Equity funds have a wider investment range than other Asiaoriented
funds. These funds can invest throughout the Pacific Rim, including Australia and
New Zealand. As a result, country weightings for these funds vary tremendously, though
most retain some exposure to Japan and Hong Kong. These funds invest at least 75% of
total assets in equities, and invest at least 75% of equities in Pacific countries, including at least 15% in Japan.
Morningstar Category Index: MSCI AC Asia Pacific NDTR
Asia-Pacific ex-Japan Equity
Asia-Pacific ex-Japan Equity funds cover a wide geographic range. Most of these funds
focus on export-oriented nations such as Hong Kong, Singapore, Taiwan and Korea.
These funds invest at least 75% of total assets in equities, and invest at least 75% of
equity assets in Pacific Countries, with less than 10% in Japan.
Morningstar Category Index: MSCI AC Asia Pacific Ex Japan NDTR
Australia & New Zealand Equity
Australia & New Zealand Equity portfolios invest at least 75% of total assets in equities,
and invest at least 75% of equity assets in Australia and/or New Zealand.
Morningstar Category Index: MSCI Australia NDTR
China Equity
China Equity funds invest primarily in Chinese companies listed on the stock exchanges in China and Hong Kong, and companies that derive significant revenues from or have
substantial business ties with the China market. These funds invest at least 75% of total
assets in equities, and at least 75% of equity assets in Chinese or China-related
companies defined as above. The funds usually invest less than 10% of total assets in
Taiwanese equities.
Morningstar Category Index: MSCI China Free NDTR
Greater China Equity
Greater China Equity funds invest in companies from the mainland of China, Hong Kong
and Taiwan. To a lesser extent, these funds may also invest in companies that derive
significant revenues from or have substantial business ties with the three markets. At least
50% of equity assets are invested in Chinese equities, and at least 10% of equity assets
are invested in Taiwanese equities. At least 75% of total assets are invested in equities.
Morningstar Category Index: MSCI Golden Dragon
Emerging Asia Single Country Equity
Emerging Asia Single Country Equity funds invest primarily in the equities of companies
from a single Asian country (excluding Japan, Hong Kong, Taiwan, Singapore, China,
India, Australia, New Zealand and Korea). Examples are funds that invest mainly in
Indonesian or Thai companies. These funds invest at least 75% of total assets in equities,
and invest at least 75% of equity assets in a single emerging Asian country.
Morningstar Category Index: MSCI AC Asia Pacific Ex Japan NDTR
Hong Kong Equity
Hong Kong Equity funds invest primarily in the equities of Hong Kong companies. These
funds invest at least 75% of total assets in equities, and invest at least 75% of equity
assets in Hong Kong equities.
Morningstar Category Index: MSCI Hong Kong NDTR
India Equity
India Equity funds invest at least 75% of total assets in equities, and invest at least 75% of equity assets in Indian equities.
Morningstar Category Index: MSCI India NDTR
Japan Large-Cap Equity
Japan Large-Cap Equity funds invest primarily in the equities of large-cap Japanese
companies. Equities in the top 70% of the capitalisation of the Japanese market are
defined as large-cap. These funds invest at least 75% of total assets in equities, and
invest at least 75% of equity assets in Japanese equities.
Morningstar Category Index: MSCI Japan NDTR
Japan Small/Mid-Cap Equity
Japan Small/Mid-Cap Equity funds invest primarily in the equities of small-cap and madcap Japanese companies. Their holdings typically fall in the bottom 30% of the
capitalisation of the Japanese equity market. These funds invest at least 75% of their total
assets in equities, and invest at least 75% of equity assets in Japanese equities.
Morningstar Category Index: MSCI Japan Small Cap NDTR
Korea Equity
Korea Equity funds invest primarily in the equities of South-Korean companies. These
funds invest at least 75% of their total assets in equities, and invest at least 75% of equity
assets in Korean equities.
Morningstar Category Index: MSCI Korea NDTR
Singapore Equity
Singapore Equity funds invest at least 75% of total assets in equities, and invest at least
75% of equity assets in Singapore equities.
Morningstar Category Index: MSCI Singapore NDTR
Taiwan Equity
Taiwan Equity funds invest at least 75% of total assets in equities, and invest at least 75%
of equity assets in Taiwanese equities.
Morningstar Category Index: MSCI Taiwan NDTR
Global
Emerging Markets Equity
Emerging Markets Equity funds tend to divide their assets among several emerging
markets in Asia, Latin America, Europe, Middle East and/or Africa. These funds invest at
least 75% of their total assets in equities, and invest at least 75% of equity assets in
emerging markets equities.
Morningstar Category Index: MSCI EM (Emerging Markets) NDTR
Global Large-Cap Blend Equity
Global Large-Cap Blend Equity funds invest primarily in the equities of large-cap
companies from around the globe. Most of these funds divide their assets among many
developed markets and invest at least 20% of equity assets in North America and 15% in
Greater Europe. Equities in the top 70% of the capitalisation of each of the seven regional
Morningstar style zones are defined as large-cap (the style zones are Europe, U.S.,
Canada, Latin America, Japan, Asia ex-Japan, and Australia/New Zealand--please see
the Morningstar Style Box Methodology for further information). The blend style is
assigned to funds where neither growth nor value characteristics predominate. At least
75% of total assets are invested in equities.
Morningstar Category Index: MSCI The World Index Free NDTR
Global Large-Cap Growth Equity
Global Large-Cap Growth Equity funds invest primarily in the equities of large-cap growth companies from around the globe. Most of these funds divide their assets among many developed markets and invest at least 20% of equity assets in North America and 15% in Greater Europe. Equities in the top 70% of the capitalisation of each of the seven regional Morningstar style zones are defined as large-cap (the style zones are Europe, U.S., Canada, Latin America, Japan, Asia ex-Japan, and Australia/New Zealand--please see the Morningstar Style Box Methodology for further information). Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high pric e ratios and low dividend yields). At least 75% of total assets are invested in equities.
Morningstar Category Index: MSCI The World Index Free Growth NDTR
Global Large-Cap Value Equity
Global Large-Cap Value Equity funds invest primarily in the equities of large-cap value
companies from around the globe. Most of these funds divide their assets among many
developed markets and invest at least 20% of equity assets in North America and 15% in
Greater Europe. Equities in the top 70% of the capitalisation of each of the seven regional
Morningstar style zones are defined as large-cap (the style zones are Europe, U.S.,
Canada, Latin America, Japan, Asia ex-Japan, and Australia/New Zealand--please see
the Morningstar Style Box Methodology for further information). Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). At least 75% of total assets are invested in equities.
Morningstar Category Index: MSCI The World Index Free Value NDTR
Global Equity Small/Mid Cap
Global Equity Small/Mid Cap funds invest primarily in the equities of small- and mid-cap companies from around the globe. Most of these portfolios divide their assets among
many developed markets and invest at least 20% of equity assets in North America and
15% in Greater Europe. Equities in the bottom 10% of the capitalisation of each of the
seven regional Morningstar style zones are defined as small-cap, and equities in the next
20% of each market’s capitalisation are defined as mid-cap (the style zones are Europe,
U.S., Canada, Latin America, Japan, Asia ex-Japan, and Australia/New Zealand--please
see the Morningstar Style Box Methodology for further information). At least 75% of total assets are invested in equities.
Morningstar Category Index: MSCI The World Index Small Cap NDTR
Sector Specific
Sector Equity Biotechnology
Sector Equity Biotechnology funds invest primarily in the equities of companies that focus on biotechnology. These funds invest at least 75% of total assets in equities and invest at least 50% of equity assets in the biotechnology industry.
Morningstar Category Index: MSCI Wrld/Biotechnology NDTR
Sector Equity Communications
Sector Equity Communications funds invest primarily in the equities of telecommunications and media companies of various kinds. Most buy some combination of cable television, wireless-communications, and communications-equipment firms as well as traditional phone companies. These funds invest at least 75% of total assets in equities and invest at least 50% of equity assets in the telecommunication and media sectors.
Morningstar Category Index: MSCI Wrld/Comml Svc & Suppl NDTR
Sector Equity Consumer Goods and Services
Sector Equity Consumer Goods and Services funds invest primarily in the equities of
companies that manufacture or provide consumer goods or services. These funds invest at
least 75% of total assets in equities and invest at least 50% of equity assets in the
consumer goods and/or consumer services sectors.
Morningstar Category Index: 50% MSCI Wrld/Consumer Discretionary NDTR, 50% MSCI Wrld/ Consumer Staples NDTR
Sector Equity Energy
Sector Equity Energy funds invest primarily in the equities of companies that produce or
refine oil and gas, oilfield services and equipment companies, and pipeline operators.
These funds invest at least 75% of total assets in equities and invest at least 50% of
equity assets in energy equities.
Morningstar Category Index: MSCI Wrld/Energy NDTR
Sector Equity Financial Services
Sector Equity Financial Services funds invest primarily in the equities of companies in the financial services sector, including banks, brokerage firms, insurance companies and
consumer credit providers. These funds invest at least 75% of total assets in equities and
invest at least 50% of equity assets in financial services companies.
Morningstar Category Index: MSCI Wrld/Financials NDTR
Sector Equity Health Care
Sector Equity Health Care funds invest primarily in the equities of companies in the
medical and health-care industries. Most invest in a range of companies, buying
everything from pharmaceutical and medical device makers to hospitals and nursing
homes. A few funds concentrate on just one industry segment, such as medical devices.
These funds invest at least 75% of total assets in equities, and invest at least 50% of
equity assets in health care companies.
Morningstar Category Index: MSCI Wrld/Health Care NDTR
Sector Equity Industrial Materials
Sector Equity Industrial Materials funds invest primarily in the equities of industrialmaterials companies. These include companies that provide or manufacture chemicals, machinery, building materials, and commodities, as well as aerospace and defence firms. These funds invest at least 75% of total assets in equities, and invest at least 50% of equity assets in industrial materials companies.
Morningstar Category Index: MSCI Wrld/Materials NDTR
Sector Equity Precious Metals
Sector Equity Precious Metals portfolios invest primarily in the equities of mining
companies, though some may own gold or other metals outright. Most portfolios
concentrate on gold-mining equities, but some have significant exposure to silver-,
platinum-, and base-metal-mining equities as well. Many precious-metals companies are
based in North America, Australia, and South Africa.
Sector Equity Real Estate Direct
Sector Equity Real Estate Direct funds have the legal status of an investment fund, and
directly invest in and/or manage real estate (i.e., they directly own or manage “bricks and
mortar” property). At least 50% of the total assets are invested directly in real estate
properties.
Morningstar Category Index: MSCI Wrld/Real Estate NDTR
Sector Equity Real Estate Indirect
Sector Equity Real Estate Indirect funds invest primarily in the securities of real-estate
companies, including those of real-estate investment trusts (REITs). They do not invest
significant amounts directly in “bricks and mortar”. Some funds concentrate on a certain
segment of the real estate market, such as companies or trusts that own office buildings or
residential properties. These funds invest at least 75% of total assets in equities, and
invest at least 50% of equity assets in real-estate securities.
Morningstar Category Index: MSCI Wrld/Real Estate NDTR
Sector Equity Technology
Sector Equity Technology funds invest primarily in the equities of companies in the
hardware and software sectors. Most concentrate on computer, semiconductor, software,
networking and internet-related equities. Some concentrate on a single technology
industry. These funds invest at least 75% of total assets in equities, and invest at least
50% of equity assets in the hardware and software sectors.
Morningstar Category Index: MSCI Wrld/Information Tech NDTR
Sector Equity Utilities
Sector Equity Utilities funds invest primarily in the equities of companies in the utilities
sector. The sector includes electric , gas, and water companies, but not
telecommunications or cable companies. These funds invest at least 75% of total assets in
equities, and invest at least 50% of equity assets in utility companies.
Morningstar Category Index: MSCI Wrld/Utilities NDTR
Sector Equity Other
Sector Equity Other funds have meaningful sector concentrations, but do not fit in a Sector Equity category. These funds invest at least 75% of total assets in equities. They concentrate their assets in less than four sectors, and invest more than 10% of equity assests in each of those sectors
Bond
Asia/Japan Convertible Bond
Asia/Japan Convertible Funds invest principally in convertible securities denominated or
hedged into the Yen or other Asian currencies.
Dollar/Global Convertible Bond
These funds invest principally in convertible securities denominated in or hedged into the
U.S. dollar or have global currency exposure.
Morningstar Category Index: Merrill Lynch All Conv, All Qualities
Emerging Europe Bond
Emerging Europe Bond funds invest principally in bonds of issuers in emerging markets
countries in Europe. Most funds will invest in several countries or currencies, though same may specialise in a single country or currency.
Morningstar Category Index: ML EUR EM Sovr EUR/ME/Afr
Euro Convertible Bond
Euro Convertible Bond funds invest principally in convertible securities denominated in or hedged into the Euro.
Euro Money Market, Stable
Euro Money Market Stable funds place an emphasis on capital preservation, by limiting
maturity to less than 90 days and maintaining a high level of average credit quality.
Morningstar Category Index: Citigroup 1M Euro Deposit
Euro Money Market, Dynamic
Euro Money Market Dynamic funds tend to have average maturity that exceeds 90 days.
These funds attempt to add value over stable money-market funds by taking on more
credit risk than the latter and by investing in some less than perfectly liquid instruments
(e.g. asset swaps).
Morningstar Category Index: Citigroup 3M Euro Deposit
Euro Short Bond
Euro Short Bond funds invest in short-dated bonds denominated or hedged into euros.
The aggregate maturity for each fund does not tend to exceed three years.
Morningstar Category Index: Citigroup Eurozone GBI 1-3Y
Euro Government Bond
Euro Government Bond funds invest primarily in government or government-backed
agency securities denominated or hedged into the relevant currency.
Morningstar Category Index: Citigroup Eurozone GBI
Euro Global Bond
Euro Global Bond funds invest in fixed income securities and take material currency
exposures as part of their investment strategies. These funds are optimised in euros and a
moderate credit exposure is possible.
Morningstar Category Index: Citigroup WGBI In Euros
Euro Global Bond - Hedged
Euro Global Bond – Hedged funds invest in bonds on a global basis, and normally hedge all of their currency exposure back into the Euro.
Morningstar Category Index: Citi Ccy-Hdg WGBI Euros
Euro High Yield Bond
Euro High Yield Bond funds invest in higher yielding securities denominated or hedged
into the relevant currency. These funds invest 40% or more of their assets in securities
with a credit quality equivalent to BB, or lower.
Morningstar Category Index: Lehman Pan-European High Yield (Euro)
Euro Inflation Linked Bond
Euro Inflation Linked Bond funds invest principally in inflation-linked bonds denominated in or hedged into the Euro.
Morningstar Category Index: EuroMTS Inflation Linked Aggregate
Non-Euro Inflation Linked Bond
Non-Euro Inflation Linked Bond funds invest primarily in inflation-linked bonds denominated in or hedged into currencies other than the Euro.
Morningstar Category Index: ML Glb Gov Inflation-Linked
Euro Long Bond
Euro Long Bond funds invest principally in bonds denominated in or hedged into the Euro. The average maturity for each fund is generally greater than 10 years.
Morningstar Category Index: Citi Eurozone GBI 10+Y
Euro Diversified Bond
Euro Diversified Bond funds have a generalist mandate and do not exhibit significant risk
concentrations. This category contains funds that are not eligible for other Eurodenominated/ hedged bond fund categories.
Morningstar Category Index: Lehman Euro-Aggregate Index
European Bond
European Bond funds invest in European fixed income securities. This category is similar
to the Euro Global Bond category, except that the foreign currency exposure is limited to
European currencies.
Morningstar Category Index: Lehman Pan-European Aggregate
Sterling Money Market
Sterling Money Market funds invest in Sterling-denominated money market instruments.
The residual aggregate maturity of those instruments does not exceed 12 months.
Morningstar Category Index: Citigroup 3M Sterling Deposit
Sterling Government Bond
Sterling Government Bond funds invest primarily in government or government-backed
agenc y securities denominated or hedged into the relevant currency.
Morningstar Category Index: Citigroup UK GBI, All Maturities, USD
Sterling High Yield Bond
Sterling High Yield Bond funds invest in higher yielding securities denominated or hedged into Sterling. These funds will invest 40% or more of their assets in securities with a credit quality equivalent to BB, or lower.
Morningstar Category Index: Lehman Pan-European High Yield (Non-Euro)
Sterling Global Bond
Sterling Global Bond funds invest in fixed income securities and take material currency
exposures as part of their investment strategies, but are optimised in Sterling. A moderate
credit exposure is possible.
Morningstar Category Index: Citigroup WGBI, All Maturities, In Sterling
Sterling Diversified Bond
Sterling Diversified Bond funds have a generalist mandate and do not exhibit significant
risk concentrations. This category contains funds that are not eligible for other bond fund
categories.
Morningstar Category Index: Lehman Sterling Aggregate
Dollar Money Market
Dollar Money Market funds invest in U.S. Dollar-denominated money market instruments of which the residual aggregate maturity does not exceed 12 months.
Morningstar Category Index: Citigroup 3M USD Deposit
Dollar Short Bond
Dollar Short Bond funds invest in short-dated bonds denominated in or hedged into U.S.
dollars. The aggregate maturity for each fund does not tend to exceed three years.
Morningstar Category Index: Citigroup U.S. GBI 1-3 Year Sector
Dollar Government Bond
Dollar Government Bond funds invest primarily in government or government-backed
agency securities denominated in or hedged into the relevant currency.
Morningstar Category Index: Citigroup U.S. GBI, All Maturities, In Euros
Dollar Global Bond
Dollar Global Bond funds invest in fixed income securities and take material currency
exposures as part of their investment strategies. These funds are optimised in U.S. dollars
and a moderate credit exposure is possible.
Morningstar Category Index: Citigroup World GBI
Dollar High Yield Bond
Dollar High Yield Bond funds invest in higher yielding securities denominated or hedged
into the relevant currency. These funds invest 40% or more of their assets in securities
with a credit quality equivalent to BB, or lower.
Morningstar Category Index: Lehman High Yield Corporate Bond Index
Dollar Diversified Bond
Dollar Diversified Bond funds have a generalist mandate and do not exhibit significant risk concentrations. This category contains funds that are not eligible for other dollardenominated/ hedged bond fund categories.
Morningstar Category Index: Lehman Aggregate Bond Index
SEK Bond
SEK Bond funds invest in bonds denominated or hedged into Swedish Krona. The
aggregate maturity of these funds exceeds three years.
Morningstar Category Index: Citigroup Sweden GBI
SEK Money Market
SEK Money Market funds invest in Swedish Krona-denominated money market
instruments. The residual aggregate maturity does not exceed 12 months.
Morningstar Category Index : Statsobligasjonsind. 0.25
SEK Short Bond
SEK Short Bond invest in short-dated bonds denominated or hedged into Swedish Krona.
The aggregate maturity does not exceed three years.
Morningstar Category Index: Citigroup Sweden GBI 1-3Y
NOK Bond
NOK Bond funds invest in bonds denominated or hedged into Norwegian Krone, where
the aggregate maturity exceeds three years.
Morningstar Category Index: Statsobligasjonsind. 3.00
NOK Money Market
NOK Money Market funds invest in Norwegian Krone-denominated money market
instruments. The residual aggregate maturity does not exceed 12 months.
Morningstar Category Index: Statsobligasjonsind. 0.25
NOK Short Bond
NOK Short Bond Funds invest in short-dated bonds denominated or hedged into
Norwegian Krone. The aggregate maturity does not exceed three years.
Morningstar Category Index: Statsobligasjonsind. 1.00
DKK Money Market
DKK Money Market funds invest in Danish Krone-denominated money market
instruments. The residual aggregate maturity does not exceed 12 months.
DKK Bond
DKK Bond invest in bonds denominated or hedged into Danish Krone, where the
aggregate maturity exceeds three years.
Morningstar Category Index: Citigroup Danish GBI, All Maturities, In Euros
DKK Short Bond
DKK Short Bond funds invest in short-dated bonds denominated or hedged into Danish
Krone. The aggregate maturity does not exceed three years.
Morningstar Category Index: Citigroup Danish GBI, 1-3 Year Sector, USD
CHF Money Market
CHF Money Market funds invest in Swiss Francs-denominated money market instruments.
The residual aggregate maturity does not exceed 12 months.
Morningstar Category Index: Citigroup Swiss Franc 1-Month Euro Deposit, USD
CHF Bond
CHF Bond funds invest in bonds denominated or hedged into Swiss Franc , where the
aggregate maturity exceeds three years.
Morningstar Category Index: Citigroup Swiss GBI, all maturities
CHF Global Bond
CHF Global Bond funds invest in fixed income securities and are taking material currency exposures as part of their investment strategies. These funds optimise their returns in Swiss Francs and a moderate credit exposure is possible.
Morningstar Category Index: Citigroup WGBI CHF
CAD Bond and Cash
CAD Bond and Cash funds invest in Canadian Dollar-denominated bonds and/or money
market securities.
Morningstar Category Index: Citigroup Canadian GBI, all maturities
AUD Bond and Cash
AUD Bond and Cash funds invest in Australian Dollar-denominated bonds and/or money
market securities.
Morningstar Category Index: Citigroup Australian GBI, all maturities
JPY Bond
JPY Bond funds invest in Japanese Yen-denominated bonds and money market
securities.
Morningstar Category Index: Citigroup Japanese GBI, All Maturities, USD
Taiwan Bond
Taiwan Bond funds invest in Taiwan Dollar-denominated Bonds and/or money market
securities.
Morningstar Category Index: JPM Taiwan Local Markets Index Plus (USD)
Asia Bond
The Asia Bond funds category consists of all funds investing in Asian Bonds and money
market securities (excl. funds that exclusively invest in Australia, Japan or Taiwan).
Morningstar Category Index: JPM Asia Local Markets Index Plus (USD)
Emerging Markets Bond
Emerging Market Bond funds are dedicated to fixed income securities of issuers in
emerging market countries. Most funds will invest in several currencies or countries. Some
might have a more specialized approach.
Morningstar Category Index: JPM EMBI+
CHF Aggressive Balanced
CHF Aggressive Balanced funds have a mandate to balance equity and bond investments
for a Swiss Franc -based investor. The equity component does not exceed 75% in the
normal running of the fund.
Morningstar Category Index: 40% Citi Switzerland GBI, 60% FTSE World
CHF Cautious Balanced
CHF Cautious Balanced funds have a mandate to balance equity and bond investments
for a Swiss Franc -based investor. The equity component does not exceed 40% in the
normal running of the fund.
Morningstar Category Index: 75% Citi Switzerland GBI, 60% FTSE World
DKK Balanced
DKK Balanced funds have a mandate to balance equity and bond investments for a
Danish Krone-based investor. The equity component does not exceed 75% in the normal
running of the fund.
Morningstar Category Index: 50% Citi Danish GBI, 50% FTSE World
Dollar Balanced
Dollar Balanced funds have a mandate to balance equity and bond investments for a U.S.
Dollar-based investor. The equity component does not exceed 75% in the normal running
of the fund.
Morningstar Category Index: LB $ Aggregate 50% / FTSE World 50%
Euro Cautious Balanced
Euro Cautious Balanced funds have a mandate to balance equity and bond investments
for a Euro-based investor. The equity component does not exceed 35% in the normal
running of the fund.
Morningstar Category Index: LB Euro-Agg. 75% / FTSE World 25%
Euro Moderate Balanced
Euro Moderate Balanced funds have a mandate to balance equity and bond investments
for a Euro-based investor. The equity component does not exceed 60% in the normal
running of the fund.
Morningstar Category Index: LB Euro-Agg. 50% / FTSE World 50%
Euro Aggressive Balanced
Euro Aggressive Balanced funds have a mandate to balance equity and bond investments
for a Euro-based investor. The equity component does not exceed 75% in the normal
running of the fund.
Morningstar Category Index: LB Euro-Agg. 25% / FTSE World 75%
NOK Balanced
NOK Balanced funds have a mandate to balance equity and bond investments for a
Norwegian-Krone based investor. The equity component does not exceed 75% in the
normal running of the fund.
Morningstar Category Index: 50% Citi Norway GBI, 50% FTSE World
SEK Aggressive Balanced
SEK Aggressive Balanced funds have a mandate to balance equity and bond investments
for a Swedish-Krona based investor. The equity component does not exceed 75% in the
normal running of the fund.
Morningstar Category Index: 40% Citi Sweden GBI, 30% MSCI Sweden NDTR, 30% FTSE World
SEK Cautious Balanced
SEK Cautious Balanced funds have a mandate to balance equity and bond investments for a
Swedish-Krona based investor. The equity component does not exceed 40% in the normal
running of the fund.
Morningstar Category Index: 75% Citi Sweden GBI, 12.5% MSCI Sweden NDTR, 12.5% FTSE World
Sterling Aggressive Balanced
Sterling Aggressive Balanced funds have a mandate to balance equity and bond
investments for a sterling-based investor. The equity component does not exceed 75% in
the normal running of the fund.
Morningstar Category Index: 40% Lehman Brothers Sterling Aggregate, 60% FTSE World
Sterling Cautious Balanced
Sterling Cautious Balanced funds have a mandate to balance equity and bond investments
for a Sterling-based investor. The equity component does not exceed 40% in the normal
running of the fund.
Morningstar Category Index: 75% Lehman Brothers Sterling Aggregate, 25% FTSE World
Asia Balanced
Asia Balanced funds have a mandate to balance equity and bond investments for an Asiabased
investor. The equity component does not exceed 75% in the normal running of the
fund.
Morningstar Category Index: 50% JPM Asia Local Markets Index Plus (USD) / 50% MSCI AC Asia Pacific NDTR
Taiwan Balanced
Taiwan Balanced funds have a mandate to balance equity and bond investments for a
Taiwan-based investor. The equity component does not exceed 75% in the normal
running of the fund.
Morningstar Category Index: 50% JPM Taiwan Local Markets Index Plus (USD) / 50% MSCI Taiwan NDTR
Capital Protected
Capital Protected funds protect capital but do not guarantee the repayment of all or part of the capital invested. This category is in use in Hong Kong.
Euro Absolute Return
Euro Absolute Return funds have an investment objective of pursuing positive returns in all market environments, and risk controls and investment capabilities sufficient to give the fund a reasonable chance of meeting that objective. They should not display a negative
return over an 18 month period. Such funds will typically have a stated benchmark
reflecting that goal (e.g., Euribor + 2%, etc.), and should have the ability to invest across
asset classes and/or use derivatives. The funds in this category will invest primarily in
instruments denominated in or hedged into the Euro.
Morningstar Category Index: ML Euro LIBOR 1-Mth Const Mat (LOC)
Non-Euro Absolute Return
Non Euro Absolute Return funds have an investment objective of pursuing positive returns in all market environments, and risk controls and investment capabilities sufficient to give the fund a reasonable chance of meeting that objective. They should not display a negative return over an 18 month period. Such funds will typically have a stated benchmark reflecting that goal (e.g., Libor + 2%, etc.), and should have the ability to invest across asset classes and/or use derivatives. The funds in this category will invest primarily in instruments denominated in or hedged into currencies other than the Euro.
Morningstar Category Index: ML GBP LIBOR 1-Mth Const Mat (LOC)
Guaranteed Funds
Guaranteed funds promise and/or guarantee the repayment of all or part of the capital
invested or promises a pre-determined rate of return.
Long-Short Funds
Long-short funds take long positions in securities that appear attractive and short positions in securities that appear to be unattractive (e.g. by taking full use of the investment powers under Ucits 3 regulations). Some of these portfolios are market neutral, which means that they divide their exposure equally between long and short positions in an attempt to minimize the losses that could occur from a broad market rally or decline. Other funds exclusively focus on investments that are or could be involved in mergers and acquisitions or invest in multiple funds that use the ability of arbitrage and or long-short positions.
Target Date 2000-2014
Target-date portfolios provide diversified exposure to equities, bonds, and cash for those
investors who have a specific date in mind (in this case, the years 2000-2014) for
retirement or another goal. These portfolios aim to provide investors with an optimal level of return and risk, based solely on the target date. These portfolios get more conservative as the goal date approaches by investing more in bonds and cash. Investment managers structure these portfolios differently; two funds with the same goal year may have different allocations to equities and therefore different levels of return and risk. The category excludes guaranteed funds.
Morningstar Category Index: 50% Citi WGBI Euros, 50% FTSE World
Target Date 2015+
Target-date portfolios provide diversified exposure to equities, bonds, and cash for those
investors who have a specific date in mind (in this case, the years 2015 and beyond) for
retirement or another goal. These portfolios aim to provide investors with an optimal level of return and risk, based solely on the target date. These portfolios get more conservative as the goal date approaches by investing more in bonds and cash. Investment managers structure these portfolios differently; two funds with the same goal year may have different allocations to equities and therefore different levels of return and risk. The categoryexcludes guaranteed funds.
Morningstar Category Index: 25% Citi WGBI Euros, 75% FTSE World
Other
All funds which do not fit into any other category.
For additional information, please see:
Morningstar Category Classifications
