Morningstar DirectSM Release Notes October 2016

New Data Points in Morningstar DirectWhat new data points are available for UK and global closed-end funds?3. From the View drop-down field, select Operations. The data points are displayed at thefar right in the Operations view.Note the highlighted fieldsThree new data points have been created for UK and global closed-end funds toduplicate functions previously available in Traded Fund Center, which was retired inFebruary 2016.What new data pointsare available for UK andglobal closed-end funds?The data points are as follows:g Investment Rangeg Accounting Standard, andg Submarket.To access the new data points, do the following:1. On the Morningstar Direct Home page, select one of the following:g Local Databases, org Global Databases.2. Select Funds/Managed Products Closed End Funds.3. From the Morningstar–defined Universes, select one of the following:g UK Investment Trusts, org Global Closed-End Funds. Note: Investment Range is available only in the Global Closed-End Funds universe. AccountingStandard and Submarket are available only in the UK Investment Trusts universe.4. From the View drop-down field, select Operations. The data points are displayed at thefar right in the Operations view.Note the highlighted fieldsMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.10

New Data Points in Morningstar DirectWhat new data points are available for ETFs?U.S. investors are increasingly comparing ETFs to similar open-end mutual funds whenmaking investment decisions. To support this activity and allow better comparisonsacross fund sites, the Morningstar Analyst Rating is now available for ETFs.What new data pointsare available for ETFs?The Morningstar Analyst Rating follows a five-tiered scale: Gold, Silver, Bronze,Neutral, and Negative. Analysts arrive at a rating through an assessment of five keypillars: parent, people, performance, price, and process.The new data points are as follows:g Morningstar Analyst Ratingg Morningstar Analyst Rating - Process Pillarg Morningstar Analyst Rating - Performance Pillarg Morningstar Analyst Rating - People Pillarg Morningstar Analyst Rating - Parent Pillar, andg Morningstar Analyst Rating - Price Pillar.To access the new data points, do the following:1. On the Morningstar Direct Home page, select one of the following:g Local Databases, org Global Databases. Note: The new data points are also available in Workspace in the Snapshot view of theExchange Traded Funds universe.2. Select Funds/Managed Products Exchange-Traded Funds.3. Make a selection from the list of Morningstar–defined Universes. The grid view opens.Note the highlighted fieldsMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.11

New Data Points in Morningstar DirectWhat has changed in data points for Variable Annuity Subaccounts?4. In the Snapshot view, scroll right to view the new data points. Note: Snapshot is the default view.A MorningstarAnalyst Ratingbetter thanNeutral isdisplayed witha shield.For Variable Annuity Subaccounts, custom expense calculations exist for the datapoints Total Net Expense and Total Gross Expense. Some subaccounts have discountedfees that were previously not taken into account. To address this issue, the calculationsfor these data points have been modified.What has changed indata points for VariableAnnuity Subaccounts?The modifications to the calculations are as follows:Data PointOld CalculationNew CalculationTotal Net ExpenseInsurance Expense Underlying Fund NetExpense RatioInsurance Expense Underlying Fund NetExpense Ratio – subaccount RevenueShareFactorTotal Gross ExpenseInsurance Expense Underlying Fund GrossExpense RatioInsurance Expense Underlying Fund GrossExpense Ratio – subaccount RevenueShareFactor Note: Data in existing reports will be updated when you re-run the report.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.12

New Data Points in Morningstar DirectWhat new data points are available for South Africa?Due to a regulation change in asset allocation for South Africa in December 2015,the South Africa Asset Allocation classification now includes the following newdata points:g Africa Bond (Long)g Africa Bond (Net)g Africa Equity (Long)g Africa Equity (Net)g Africa Property (Long)g Africa Property (Net)g Africa Cash (Long)g Africa Cash (Net)g Africa Unit Trust (Long)g Africa Unit Trust (Net)g Africa Other (Long)g Africa Other (Net)g Africa Bond (Short)g Africa Bond (Long Rescaled)g Africa Equity (Short)g Africa Equity (Long Rescaled)g Africa Property (Short)g Africa Property (Long Rescaled)g Africa Cash (Short)g Africa Cash (Long Rescaled)g Africa Unit Trust (Short)g Africa Unit Trust (Long Rescaled)g Africa Other (Short)g Africa Other (Long Rescaled)What new datapoints are availablefor South Africa?To access the data points, do the following:1. On the Morningstar Direct Home page, select Global Databases Funds/ManagedProducts Open End Funds.2. From the Morningstar–defined Universes, select South Africa Open-End Funds (AFS).3. From the View drop-down field, select SA Asset Allocation. Note: SA Asset Allocation is the last selection in the drop-down field.Note the highlighted fields4. Scroll right to view the new data points.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.13

Changes in Morningstar CategoriesOverviewChanges in Morningstar CategoriesAs part of Morningstar’s semi-annual Morningstar Category review, changes for thefollowing regions’ and countries’ categories are effective October 31, 2016:Overviewg EAA (Europe, Asia, and Africa) (page 14)g Malaysia (page 15)g Korea (page 15)g India (page 15)g New Zealand (page 15)g Thailand (page 16), andg Mexico (page 16). Note: If you have Performance Reporting files that use Morningstar Category as the Groupingmethod, the new category information will be shown once the reports are re-calculated.In EAA (Europe, Asia, and Africa), the category changes are as follows:g Added: Japan Flex-Cap Equityg Retired: Sweden Large-Cap Equityg Benchmark change: Japan Large-Cap Equityg Renamed: Currency and risk-free rate:g TWD Bondg TWD Aggressive Allocationg Taiwan Large-Cap Equityg TWD Cautious Allocationg Taiwan Small/Mid-Cap Equityg TWD Moderate AllocationWhat has changedin MorningstarCategories for EAA?g TWD Money MarketThese changes affect the following universes:g Open-End Fundsg Closed-End Funds, andg ETFs.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.14

Changes in Morningstar CategoriesWhat has changed in Morningstar Categories for Malaysia?In Malaysia, the following categories have been renamed:Old NameNew NameMoney Market - Malaysia (Syariah)Money Market - Malaysia (Sharia)Equity - Malaysia Mid/Small-cap (Syariah)Equity - Malaysia Mid/Small-cap (Sharia)Equity - Malaysia Large-cap (Syariah)Equity - Malaysia Large-cap (Sharia)Equity - Asia Pacific ex-Japan (Syariah)Equity - Asia Pacific ex-Japan (Sharia)Bonds - Malaysia (Syariah)Bonds - Malaysia (Sharia)Blended - Balanced (Syariah)Blended - Balanced (Sharia)What has changedin MorningstarCategories for Malaysia?These changes affect the following universes:g Open-End Fundsg Closed-End Funds, andg ETFs.In Korea, the category changes are as follows:What has changedin MorningstarCategories for Korea?g New: Vietnam Equity, andg Benchmark change: Japan Equity, Russia Equity.These changes affect the Open-End Funds and ETFs universes.In India, Sector - Infrastructure is a new category.This change affects the Open-End Funds and Closed-End Funds universes.In New Zealand, the category Unlisted and Direct Property - Global Non-PIE hasbeen retired.This change affects the following universes:What has changedin MorningstarCategories for India?What has changed inMorningstar Categoriesfor New Zealand?g Open-End Fundsg Closed-End Fundsg ETFs, andg Pension & Annuity.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.15

Changes in Morningstar CategoriesWhat has changed in Morningstar Categories for Thailand?In Thailand, Property - Indirect Global is a new category.What has changedin MorningstarCategories for Thailand?These changes affect the following universes:g Open-End Fundsg Closed-End Funds, andg ETFs.In Mexico, the following categories have a new benchmark:g Government Debt - Medium Termg MXN Long-Term Debtg MXN Medium-Term Debtg MXN Short-Term Debtg Government Debt - Short Termg MXN Inflation-Linked Debt, andg Government Debt - Long Term.What has changedin MorningstarCategories for Mexico?This change affects the Open-End Funds universe.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.16

New in Presentation StudioOverviewNew in Presentation StudioIn this section, you will learn how to:Overviewg display Morningstar Sustainability ratings in a chart (page 17)g link to return frequency in a Return Period Matrix table (page 19), andg the GICS classification auto-update (page 21).To allow you to present Morningstar Sustainability data to socially conscious clients, anew single-investment chart component, Sustainability Rating, has been added to theHoldings Analysis chart category.To display the Sustainability chart, do the following:How can I displaythe MorningstarSustainabilityratings in a chart?1. In Presentation Studio, open or create a factsheet or workbook.2. Click the Home tab.3. From the Chart drop-down field, click Holdings Analysis and drag Sustainability Ratinginto an empty area of the report. The Sustainability Rating chart is displayed.Note the highlightedselectionsMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.17

New in Presentation StudioHow can I display the Morningstar Sustainability ratings in a chart?12341. The number of shaded globes indicate the Sustainability Rating as follows:Sustainability RatingDisplayHighFive shaded globesAbove AverageFour shaded globesAverageThree shaded globesBelow AverageTwo shaded globesLowOne shaded globes Note: If there's no Rating available, then all five globes are grayed out.2. The fund’s percentile rank in its Morningstar Category3. The fund’s Morningstar Category4. The fund’s sustainability mandate status is displayed as follows:g Yes: The fund has a sustainability mandate.g No: The fund does not have a sustainability mandate.g Focus: If the fund has a sustainability mandate, the focus of the mandate is alsoshown as ESG Focus or Environmental Focus. If the fund does not have a sustainability mandate, this area is blank. Note: When a fund’s category rank has not been calculated within 50 days after the portfoliodate, the Sustainability Rating chart is displayed without rank, rating, or globes.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.18

New in Presentation StudioHow do I link to the return frequency in a Return Period Matrix table?In the settings for Return Type for a Return Period Matrix table, you can now link to thereturn frequency. select any of the following:g Gross Returng Income Returng Inflation Adjusted Returng Market Returng Net Returng Offer-Bid Returng Post-tax Returng Price Return, org Total Return.How do I link to the returnfrequency in a ReturnPeriod Matrix table?In the Year settings for a Return Period Matrix table, you can now select any of thefollowing:g YTD (daily)g YTD (mo-end), andg YTD (qtr-end).To change the Return Type and Year settings, do the following:1. Insert or select a Return Period Matrix table. Note: The Return Period Matrix table is found in the Performance category.The Return PeriodMatrix table is foundin the Performancecategory.2. At the bottom of the window click Table Settings. The drop-down field opens,displaying the Table tab.When a chart is selected, thefield will read Chart SettingsMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.19

New in Presentation StudioHow do I link to the return frequency in a Return Period Matrix table?3. From the Return Type drop-down field, select one of the following:g Gross Returng Income Returng Inflation Adjusted Returng Market Returng Net Returng Offer-Bid Returng Post-tax Returng Price Return, org Total Return.Total Return is the default Note: The table refreshes automatically.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.20

New in Presentation StudioHow do I update charts and tables that are grouped by GICS sector?4. From the Year drop-down field, select one of the following:g YTD (daily)g YTD (mo-end), org YTD (qtr-end) (default).YTD (Daily) n is the defaultThe table refreshesautomaticallyCharts and tables grouped by GICS sector did not originally update with the GICSsector changes in early September. Users had to delete each component individuallyand re-add it. Now these components will auto-update to the new GICS sectorclassification, even if the reports were created before the sector change.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.How do I update chartsand tables that aregrouped by GICS sector?21

New in Report PortalOverviewNew in Report PortalIn this section, you will learn how to:Overviewg produce a consolidated report from multiple factsheets (page 22)g create workbook batches based on dynamic investment screen results (page 26)g set permission control for dynamic benchmark selection options (page 32)g select and track Canadian FundServ codes (page 35), andg select new time period options (page 37).Now you can output a single PDF from multiple factsheets.To create a consolidated report from multiple factsheets, you need a factsheettemplate that can accommodate multiple investments. Only an administrator can buildsuch a template.How do I produce aconsolidated report ofmultiple factsheets?To create a factsheet template for multiple investments, do the following:1. Log in as Administrator.2. In Report Portal, click the Templates tab.Templates are listedalphabetically3. Select an existing template by clicking the checkbox at the beginning of its row.4. From the Action drop-down field, select Edit Template. The Edit Templatewindow opens.Note the highlightedselectionsMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.22

New in Report PortalHow do I produce a consolidated report of multiple factsheets?5. In the Edit Template window, click the Investments tab.6. Set a minimum and maximum number of investments. Note: If you want the template to continue to function properly with just one investment,leave Minimum set to 1.Note the highlightedselectionsMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.23

New in Report PortalHow do I produce a consolidated report of multiple factsheets?7. (Optional) If you want designate specific investments, set Lock Investments to Yes.When you lockinvestments, thesefields are displayed Note; If the administrator chooses a disclosure set in the Edit Template dialog, the disclosureswill append to each investment's Factsheet based on the smart disclosure settings.8. Click Save.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.24

New in Report PortalHow do I produce a consolidated report of multiple factsheets?To create a consolidated PDF from multiple factsheets, do the following:1. Log in as an Administrator or User.2. In Report Portal, click Run Reports.3. In the list of Templates, locate a factsheet template that can accommodate multipleinvestments and click Run. The Report Settings dialog box opens.4. In the Investments fields, click the Search icon or enter the name, ticker, CA FundCode, or SecID of the investments you want to run the report on. Note: You don’t need to enter an investment in each empty field. You can run a report onfewer than the maximum number of investments.In the PDF, theorder of theinvestmentswill match theorder of in thisdialog boxMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.25

New in Report PortalHow do I create workbook batches based on search results?5. Click Run Report. When the report is complete, a green checkmark appears in theStatus column.When multiple investments arechosen, the factsheet templatewill run multiple times and thenpresent all the factsheets in asingle PDF6. Click the View Reports tab.7. In the View Reports tab, click the PDF icon in the row of the report you just ran. The PDFopens in a new browser tab.8. In the View Reports tab, click the PDF icon in the row of the report you just ran. The PDFopens in a new browser tab.Now you can assign search criteria to each workbook in a batch so that the latestcriteria results flow into the individual workbooks when the batch is run.To assign a saved search to a batch, do the following:How do I createworkbook batchesbased on search results?1. In Report Portal, click the Report Production tab.2. Click New Batch.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.26

New in Report PortalHow do I create workbook batches based on search results?3. Click Workbook.4. Click Continue.5. In the Workbook - New Batch Setup dialog box, do the following:g Name the batchg Select a template from the drop-down field, andg (Optional) Select a disclosure mapping from the drop-down field.Note thehighlighted fields6. Click Add Investment. The Find Security dialog box opens.7. From the first drop-down field, scroll down and click Searches.Search expands to displayyour saved searchesMorningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.27

New in Report PortalHow do I create workbook batches based on search results?8. Select a saved search. After a moment, the search results are displayed.Scroll down to seemore saved searches9. In the search results, do one of the following:g Select several investments, using CTRL click to select more than one, then clickAdd, org Click Add All.If the search results containmore than 50 investments,only the top 50 will be usedin the report.Morningstar Direct Release Notes—October 2016 2016 Morningstar. All Rights Reserved.28

New in Report PortalHow do I create workbook batches based on search results?10. The selected items are displayed in the list at the bottom of the dialog box. Click OK.The selected items aredisplayed in the list at thebottom of the dialog box.The list of investmen

Two articles from the October/November 2016 issue of Morningstar magazine are available on the Featured page of the Research app: g“Brexit Uncertainty Through the Morningstar Risk Model Lens,” and