Post by Admin/YBB on Jan 22, 2024 7:35:49 GMT -6
M* Fixed Income Classification
The Morningstar Style Box was introduced in 1992 to help investors and advisors determine the investment style of a fund. Morningstar classifies bond funds in its style box according to interest-rate sensitivity and credit quality. The classifications for interest-rate sensitivity are Limited, Moderate, and Extensive, while the credit classifications are High, Medium, and Low. Morningstar categorizes any fixed instrument with less than 92 days to maturity as cash for the purposes of calculating a fund’s asset-allocation breakdown. These short-term fixed securities and other cash instruments are to be included in the calculation of effective duration. The methodology used to calculate the average credit quality of a fund is changing with this update (see conversion table, etc).
PDF Host Link pdfhost.io/v/lw2RlJt~L_MStar_Classification_Fixed_Income_022022
Attachment (Download) MStar_Classification_Fixed_Income_022022.pdf (331.35 KB)
M* Fixed Income Analytics FAQs, 2017
morningstardirect.morningstar.com/clientcomm/FAQ%20Fixed%20Income%20Analytics%20Program.%20May%2022%202017.pdf
More Related Information from @msf at MFO (FASB, GAAP, etc) - accountants (and many funds) use 3-month maturities at the time of purchase for defining "cash".
www.mutualfundobserver.com/discuss/discussion/comment/171785/#Comment_171785
Wiki on Cash & Cash Equivalents,
en.wikipedia.org/wiki/Cash_and_cash_equivalents
The Morningstar Style Box was introduced in 1992 to help investors and advisors determine the investment style of a fund. Morningstar classifies bond funds in its style box according to interest-rate sensitivity and credit quality. The classifications for interest-rate sensitivity are Limited, Moderate, and Extensive, while the credit classifications are High, Medium, and Low. Morningstar categorizes any fixed instrument with less than 92 days to maturity as cash for the purposes of calculating a fund’s asset-allocation breakdown. These short-term fixed securities and other cash instruments are to be included in the calculation of effective duration. The methodology used to calculate the average credit quality of a fund is changing with this update (see conversion table, etc).
PDF Host Link pdfhost.io/v/lw2RlJt~L_MStar_Classification_Fixed_Income_022022
Attachment (Download) MStar_Classification_Fixed_Income_022022.pdf (331.35 KB)
M* Fixed Income Analytics FAQs, 2017
morningstardirect.morningstar.com/clientcomm/FAQ%20Fixed%20Income%20Analytics%20Program.%20May%2022%202017.pdf
More Related Information from @msf at MFO (FASB, GAAP, etc) - accountants (and many funds) use 3-month maturities at the time of purchase for defining "cash".
www.mutualfundobserver.com/discuss/discussion/comment/171785/#Comment_171785
Wiki on Cash & Cash Equivalents,
en.wikipedia.org/wiki/Cash_and_cash_equivalents