TORONTO, Oct. 29 /CNW/ - Morningstar Canada, a leading provider of
independent investment research and a wholly owned subsidiary of Morningstar,
Inc. (NASDAQ: MORN), today announced that it has launched Fund Analyst Picks
on Morningstar.ca and MorningstarAdvisor.ca. The Fund Analyst Picks list is a
collection of favourite investment funds selected by Morningstar.
Morningstar's fund analysts comb through the Canadian mutual fund landscape to
come up with a handful of top choices that represent their best investment
ideas. The Fund Analyst Pick designation conveys a host of qualitative
forward-looking information on each fund's management, investment strategy,
fees and stewardship.
"The Morningstar Fund Analyst Picks represent the culmination of
everything we do here at Morningstar. We utilize the data, tools, and
analytics we're known for as a foundation for the qualitative analysis we
conduct to come up with a list of our favourite funds. The Fund Analyst Pick
designation is the highest honour we can bestow upon a fund," says David
O'Leary, Manager of Fund Analysis at Morningstar.
The Fund Analyst Pick designation reflects our analysis of the
"fundamentals" to identify future winners, including the experience of a
fund's management team, the quality of the investment strategy, fees and
stewardship. "The quality of these criteria will affect how well a fund will
perform in the future," O'Leary explains. "Fund Analyst Picks must have an
experienced management team, preferably with a long track record of posting
strong performance. Though this doesn't guarantee future success, it's one of
the better predictors we have at our disposal," he says. Morningstar analysts
also look for a consistent investment strategy that allows funds to ride out
market fluctuations. "We're big fans of investment managers who maintain one
strategy for the long term," O'Leary adds.
A fund's fees are another important point Morningstar analysts consider.
"There are several instances where we like the management team and the
strategy, but the fees are simply too high for us to call the fund an Analyst
Pick," says O'Leary. "With all the funds available in Canada, there is often a
similarly attractive offering that sports a lower fee." Finally, stewardship
analysis consists of asking any question that tries to get to the bottom of
whether a firm has the best interests of unitholders at heart. "It can help
determine the difference between a great investment and a potential mistake,"
So while the Morningstar Rating(TM) helps identify funds that have
performed well and are worthy of further research, the Fund Analyst Pick
designation identifies funds that, in Morningstar's opinion, are the most
The Fund Analyst Picks list is updated regularly to reflect fund
cappings, manager changes, and other issues that arise; formal reviews are
conducted every quarter. Each Pick is accompanied by a commentary that
explains the rationale behind its place in the line-up.
Breakfast Information Session
Morningstar will be holding a breakfast information session on
Thursday, Nov. 1 from 7 - 8:15am in the Knightsbridge Room at the Royal
Meridian King Edward Hotel in Toronto.
Following a presentation on the methodology used for the Morningstar Fund
Analyst Picks, members of the media and the investment industry will have a
chance to participate in a question and answer period. To RSVP for the
breakfast information session, please contact Isabell Grygianiec at
416.484.7868 or via email at email@example.com.
For the Fund Analyst Picks go to:
For an overview of the Fund Analyst Picks selection criteria go to:
To read about Morningstar's Stewardship Analysis go to:
For frequently asked questions go to:
About Morningstar, Inc. and Morningstar Canada
Morningstar, Inc. is a leading provider of independent investment
research in the United States and in major international markets. The company
offers an extensive line of Internet, software, and print-based products and
services for individuals, financial advisors, and institutions. Morningstar
provides data on more than 250,000 investment offerings, including stocks,
mutual funds, and similar vehicles. The company has operations in 16 countries
and minority ownership positions in companies based in three other countries.
Morningstar Canada is a wholly owned subsidiary of Morningstar, Inc.
(C) 2007 Morningstar, Inc. All rights reserved.
For further information:
For further information: Media Contact: Isabell Grygianiec,
Communications Manager, (416) 484-7868, firstname.lastname@example.org