Monthly Report Spotlight: Morningstar Portfolio X-Ray - Stock Sectors
There are two versions of the Morningstar Style Box: the Equity Style Box and the Fixed Income Style Box. The Equity Style Box is a graphical representation of the portfolio's overall investment style, based on the individual securities held both directly and indirectly via the managed products within the portfolio. A fund's location in the style box is determined by classifying the securities within the portfolio according to market capitalization on the vertical axis and growth and value factors on the horizontal axis. The Fixed Income Style Box displays the overall interest-rate sensitivity and credit quality of a portfolio's bonds and bond funds. Placement on the horizontal axis is based on a fund's interest-rate sensitivity as measured by the average duration of the bonds in the portfolio. The vertical axis represents credit quality.
How to Use It
A fund's position on the Equity Style Box represents the portfolio's overall market cap and value/growth orientation. Since it is holdings-based, the Equity Style Box provides a more detailed description of the fund's holdings than is provided by the fund's name or investment objective. For the Fixed Income Style Box, placement in the upper left-hand portions typically represents conservative fixed-income exposure for the portfolio. Conversely, placement in the lower right-hand portions of the Style Box represents a riskier fixed-income allocation for the portfolio.
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