Morningstar Direct
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Morningstar Direct
Access to Global Databases
Investments:
Closed-end funds
Equity ownership
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Multi-faceted Research Platform
Consolidate key research functions and databases,
and align teams across the organization and
around the globe with one powerful and convenient
desktop platform.
Regions:
Australia
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Japan
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Seamless Functionality
Flexible Output Options
Advanced searches
Data customization
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Returns-based style analysis
Portfolio importing
Portfolio construction
Stock analysis
Ownership analysis
Alerts
Learning center
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Exporting to clipboard
Microsoft® Excel®
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Report builder
Pre-formatted reports
Hedge fund research summary
Investment performance summary
Quicktake reports
Single-Source Research Solution
Morningstar Direct is a global, multi-currency institutional research platform that
provides in-depth performance and holdings analysis of investments.
SM
Institutions worldwide use Morningstar Direct to develop, select, and monitor
investments that meet investors’ needs. This Web-based solution features
continuous, automatic data updates to fuel rigorous research for product development, performance evaluation and reporting, competitive analysis, marketing,
investment selection, portfolio construction, and ongoing monitoring.
Launched in 2001, Morningstar Direct delivers real-time access to all of
Morningstar’s comprehensive global databases at no additional charge. It includes
complete access to current and historical performance, risk, operations,
cash flow, and portfolio holdings data in addition to Morningstar proprietary statistics. Also included is seamless access to a variety of third-party data including
CUSIP, ISIN, global market indexes, GICS sectors, and GIFS classifications.
®
Extensive Research and Analytics
2
Comprehensive Data
4
Charts and Graphs 6
Preformatted Reports
Style, Performance, and Rating Reports
10
Single Investment Reports
14
Portfolio and Lineup Comparison Reports
18
Custom Reports
22 2
Extensive Research and Analytics Powered by Quality Data
Simplify Peer Analysis
Select Investments and Construct Effective Portfolios
Define peer groups by specific criteria, or select the investments
in a particular strategy—even across investment types. Choose from a
full set of standard portfolio, risk, operations, and performance data
points—or customize data to meet unique requirements. Include
percentile rank calculations, and generate charts and reports focused on
peer evaluation.
Use powerful screening tools to quickly filter through vast current and
historical data and locate investments meeting precise criteria.
View the data in aggregate to analyze and monitor a lineup. For a
complete picture, import the returns and holdings of a private
investment for direct comparison with investments in our database,
or to run hypotheticals.
Add Insight with Style Analysis
Analyze Ownership Trends
Investment style analysis can expose gaps within an investment lineup
or position investments within the context of the competitive
landscape. Or, locate style consistent investments, likely to remain true
to their mandate. Understand nuances, highlight differences
among investments within broad categories, and explain performance
from a holdings perspective. For further insights, compare holdingsbased analysis to returns-based results, all within the same platform.
Examine complete holdings of institutions and asset managers to
uncover current and past stock and fund ownership—and how
their money management style has evolved over time. Verify your
opinions on particular securities or sectors. Generate analytics
such as complete investment holdings, or buys and sells. Track ownership of a company’s shares and those of its peers.
Portfolio Analysis
Conduct performance attribution analysis on the equity portion of
managed investment products using a holdings-based approach
that leverages our extensive holdings database. Quickly drill down into
the data to apply both top-down and bottom-up analyses. Evaluate
the impact of allocation decisions by economic sector or equity characteristics, as well as security selection.
NEW FOR 2009
Streamline Performance Evaluation and Reporting
Assess investment performance with customized data calculations,
blended and standard benchmarks, and charts and graphs.
Enhance internal reporting with customized data tables you create in
Adobe® PDF, Microsoft® PowerPoint or Excel, and seamlessly
include investments of various types in your performance reports.
Daily data updates mean an earlier start on regular reports,
and decisions that are based on the most current information.
Efficiently create, update, and batch schedule performance reports
for ongoing reporting needs.
Customize Research
Leverage the thousands of discrete current and historical data
points in our databases for customized data calculations, zeroing in on
different time periods, or running modern portfolio theory (MPT)
statistics with your preferred composite benchmark. Add private notes to
investments that you can share with your colleagues. Support your
research with the document library, offering swift and easy access to all
public filings in a single location.
3
Morningstar Report Builder
Easily create customized PDF reports from an extensive library of investment tables, graphs, and other components
Morningstar® Market Intelligence
Examine comprehensive estimated cash flow and market share data for a variety of
investment types across multiple geographical markets
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Morningstar Plug-In For Microsoft ® Excel ®
Download Morningstar time series data for custom analysis in Excel spreadsheets
4
Comprehensive Data You Can Rely On
Morningstar is one of the most recognized and trusted names
in the investment industry, and high quality data is the foundation of our
business. We have processes and teams in place to validate the
accuracy and completeness of our data, from the moment of collection
until it’s delivered through our products. With operations in 18
countries, we currently provide data on more than 280,000 investment
offerings worldwide.
We are an efficient, single source for investment data, serving more
than 2,400 institutional clients around the world. Institutions
value our independence, breadth of information, and insight into stocks
and managed investment products.
Each investment includes the relevant current and historical performance
data, portfolio holdings, cash flows, risk measures, and operational
information. Portfolio holdings information is updated as we receive it,
with most firms reporting their holdings on a monthly or quarterly
basis. Daily and intra-day price data is available for applicable investments. We collect holdings for separate accounts, and report
monthly performance in addition to quarterly data. Hedge funds are
classified into one of 17 categories by strategy, holdings, and hedging
technique for meaningful peer groups. And in addition to quantitative
investment data, our analysts’ qualitative reports quickly bring you
up to speed on a company or managed investment product, or reinforce
an investment decision.
Leveraging a Core Competency
Morningstar offers the most extensive databases in the industry, and strategic acquisitions strengthen our global coverage*.
Open-end
Funds
112,000+
1984
Database
created
Money
Market Funds
2,000+
1984
Database
created
Global
Equities
22,000+
Closed-end
Funds
3,000+
Insurance/
Life
129,000+
ExchangeTraded Funds
2,100+
Separate
Accounts
8,300+
529 Plans and
Portfolios
3,700+
1989
Database
created
1991
Database
created
1995
Database
created
1998
Database
created
2002
Database
created
2006
Offshore
database added
(OE total includes
32,000+
offshore funds)
2006
Acquisition of
Aspect Huntley,
an Australian
equity data
provider
2005
Acquisition of
Finetre’s
VARDS unit
(Variable Annuity
Research & Data)
2008
Hong Kong ETF
database added
2004
Acquisition of
ePIPER separate
accounts
database
2006
Acquisition of
Altvest
hedge funds
database
2007
Acquisition of
Standard
& Poor’s fund
data business
2008
Acquisition
of Hemscott
data business
2008
Acquisition of
Fundamental
Data (UK),
a leading
provider of
closed-end
fund data
2006
Acquisition of
InvestorForce
separate accounts
database
2008
Launch hedge
fund indexes
using MSCI Barra
methodology
2008
UK Life & Pension
database
launched
2002
Database
created
Hedge
Funds
8,400+
Third Party Data
Global Indexes
32,000+
*Approximate database numbers as of November 2008
Security Identifiers
ISIN, CUSIP, SEDOL
S&P proprietary
data including GICS®
and GIFS
User Imported Data
Includes portfolio
holdings and returns
2004
Database
created
Morningstar was cited by 75% of respondents as a quantitative screening tool
they use frequently to evaluate investment managers.
Financial Research Corporation, manager research survey, The New Gatekeepers
“
“
Morningstar plays an integral role in almost all of our manager analysis functions.
Morningstar Direct is our most versatile portfolio evaluation tool.
”
David F. Lafferty, CFA Senior Vice President, Investment Strategies Group, Natixis Global Associates
We use Morningstar Direct for product research, marketing and competitive
positioning, internal performance and board reporting, and M&A analysis.
What do we find beneficial? Daily updates and a “one-stop” for open-end funds,
closed-end funds, variable annuities, and separate accounts data. It quickly
allows us to analyze and differentiate funds, and interact more effectively with
internal clients. Plus, we get strong client product support.
”
James M. Wagner Assistant Vice President, Sr. Project Manager, Product and Market Research, Federated Investors, Inc.
“
Morningstar Direct has performance reports a consultant could love. You have your
choice of benchmarks, rolling periods, time frames, currencies, plus an
abundance of ratios—Calmar, Sortino, up- and downside capture. These reports
provide a “wow” factor for the sophisticated private client.
”
Douglas Butler, CFA Director of Research, Product Manager—InvestSelect, Rockland Trust Investment Management Group
6
Charts and Graphs
Holdings-Based Style Map
Better understand the placement of an investment on the Morningstar Style Box by illustrating the position of its individual holdings and
Ownership Zone . Differentiate between investments by demonstrating their style exposure.
TM
TM
Stacked Bar
Scatterplot
Display trends for a variety of characteristics including portfolio
statistics, cash flow, returns-based style exposure. Customize
time periods and data point settings, and choose from multiple
color options to fit research objectives.
Examine relationships and discover trade-offs. Plot desired data
points on X and Y axes, and add Z axis if desired. Include a peer
group to provide context for your analysis. Customize data points
as needed.
7
Returns-Based Style Trail
Compare the returns of an investment to the returns of various style benchmarks to assess the investment’s style. Select from pre-defined
style benchmarks, or create your own. Customize time periods. Useful for investments without portfolio holdings data.
Rolling Return
Growth/Price
Examine annualized returns for any time period, and dynamically
change the time period onscreen by simply sliding the
scale. Choose absolute return or return relative to a category
or benchmark.
Display trends over time, including distributions. Select the dollar
amount of an initial investment. Dynamically change time
periods onscreen with a simple mouse click to hone in on periods
of interest.
8
Charts and Graphs
Holdings-Based Style Trail
View the movement of a portfolio over time in terms of equity style using actual holdings. Analyze the holdings-based style consistency of
investments over a defined time period.
Correlation Matrix
Holdings Similarity
Examine the correlation of investments using gross, net,
or excess returns. Customize the time period to suit your analysis.
The matrix is color coded for clear graphic representation
of relationships.
Compare the holdings for a list of investments. Graph the
percentage of common holdings, or measure minimum redundancy.
Compare last month-end, last quarter-end, or select your
own portfolio date.
9
Floating Bar
Examine a subject investment versus a user-defined peer group. Select any numerical data point, including user-defined statistics.
Add precision to your analysis by customizing n-tile, external, and internal bar percentages.
Time Series
Rating What-If For U.S. based securities only
Discover trends over time by plotting various data points for
single or multiple investments. Flexible display options add clarity
to your analysis.
Calculate hypothetical changes to the Morningstar Rating
by adjusting the expense ratio or sales loads. Model the potential
impact of these changes to each component of the Rating:
Morningstar Return, Risk, and Risk-Adjusted Return. Calculate a
possible rating for a new share class.
TM
10
Style, Performance and Rating Reports
Holdings-Based Style Consistency Report
Allows a user to see the historical movement of a portfolio in terms of equity style, fixed-income style, sector, and asset allocation.
This helps clearly describe the management of a portfolio over time and defines the consistency of that management.
11
Returns-Based Style Analysis Report
Uses the historical performance of a subject portfolio to calculate and display the history of investment composition, style drift, and relative
performance versus its style benchmark and market benchmark. Users can change the style benchmarks.
12
Style, Performance and Rating Reports
Performance Evaluation Report
Provides comprehensive performance analysis on one investment. The report supports manager evaluation and competitive positioning.
Use the report to illustrate the competitive position of your investment’s performance versus your chosen peer group, and track the consistency
of the performance of an investment over custom time periods.
13
Rating Analysis Report For U.S. based securities only
Helps users understand the Morningstar Rating of an investment by deconstructing calculations and looking at individual drivers.
The report also assists in evaluating historical changes in the rating, creating rating projections, and conducting competitive analysis relative
to other investments.
14
Single Investment Reports
Investment Summary Report
Summarizes an investment’s fundamental characteristics including performance, portfolio, and operations data in an easy-to-read
one page PDF report.
15
The Morningstar Page For U.S. based securities only
A comprehensive one-page overview that combines qualitative and quantitative information with essential facts. Also explore management,
strategy, and risks of the investment with a detailed independent analysis of the investment.
16
Single Investment Reports
Separate Account Comprehensive Report
Contains data of interest to consumers of separate account information. The comprehensive, multi-page report contains detailed representative
performance information, advanced risk measurements, representative portfolio statistics, and operations data.
17
Hedge Fund Summary Report
Provides another view of the essential characteristics of these investments. This report contains statistics and graphs that are especially
useful when analyzing hedge funds.
18
Portfolio and Lineup Comparison Reports
Investment Comparison Report
With the ability to select an investment from any universe, the investment comparison report helps to define differences and similarities with
regard to style, performance, and composition.
19
Holdings Comparison Report
Compares the underlying holdings of two investments to identify their common and unique holdings. The report is used in plan construction and
competitive analysis.
20
Portfolio and Lineup Comparison Reports
Portfolio Aggregation Report
Detailed analysis of user-created aggregates including the portfolio’s investment style, composition, key fundamentals, risk and return statistics,
performance, and top 25 common holdings.
21
Fund vs. Fund Report
Directly compare two investments from any universe and examine performance, investment style, asset allocation, and diversification.
22
Custom Reports
Performance Report
Designed specifically for performance reporting, key features include extensive flexibility to customize peer groups and benchmarks, full control
over ranks and output, and an intuitive workflow.
23
Morningstar DirectSM | Print Date: 2008-10-09
Page 1 of 1
Waddell & Reed Adv Continental Inc Y WACYX
Currency
Morningstar Category
USD
US OE Moderate Allocation
Modify this title in Report Settings
Benchmark 1
Investment Strategy from investment’s prospectus
The investment seeks current income; capital appreciation is
secondary.
The fund invests primarily in income-producing securities
that include common stocks and debt securities. The fund
generally owns equity securities of medium to large, wellestablished companies. The fund owns common stocks in order
to provide possible appreciation of capital and some dividend
income. In general, the fund invests a portion of assets in either
debt securities or preferred stocks, or both, in order to provide
income and relative stability of capital.
Fees and Expenses
Prospectus Gross Expense Ratio
Maximum Sales Charge
12b-1 Fee
Redemption Fee/Term
Fiscal Year End Month
0.95%
–
–
2.00%/5 days
June
Portfolio Manager(s)
Cynthia P. Prince-Fox. Since 1993-02. B.B.A., St. Mary’s U.
M.B.A., Rockhurst C.
4
4
7
7
7
Morningstar Category
6% US OE Moderate Allocation
2
0
-2
-4
Inv Performance Versus
Category Average
Quarterly Inv Return
+
- Category Avg
Category Avg Baseline
Performance Quartile
(within category)
(
*
&
(
&
(
(
*
*
&
&
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008-09
8.00 7.86
10.65 11.47
0.20 -6.52
7.37
5.96
8.12
6.64
-7.44
-4.93
5.92 6.96
-8.97 19.49
-1.92 -7.69
7.38
7.91
-5.23
7.46 7.95 8.48 7.50
5.04 11.19 13.20 -10.57
-2.22 -0.72 5.18 3.22
NAV
Total Return %
+/- Benchmark 1
3.15 2.60
5.23 10.29
2.57
9.71
2.07
0.39
1.97
0.00
1.77
0.00
1.81
0.00
1.36
2.63
1.62
3.00
1.75
4.83
—
—
Income Return %
Capital Return %
0.75
3.01
55
0.81
3.32
51
0.86
2.50
72
0.92
2.12
47
—
—
32
0.93
1.87
49
0.94
1.53
36
0.94
1.71
43
0.93
1.47
48
0.95
1.61
16
1.60
0.94
11
12
1
1
1
1
1
1
1
1
1
1
History
Net Expense Ratio
Income Ratio
Turnover Ratio
Share Class Net Assets (mil)
# of Inv
in Cat
1,162
944
723
427
0
50
Stocks
Bonds
Cash
Other
100 Total
Morningstar Style BoxTM
71
20
9
0
100
0
0
0
0
0
Net %
Equity (as of 2008-06-30)
71
20
9
0
100
Value Blend Growth
Top 10 Holdings as of 2008-06-30
Fixed Income (as of 2008-06-30)
High Med Low
—
QQQQQ
QQQQQ
QQQQ
7
Small
8
2
7
24
4
Long % Short %
Morningstar Proprietary Statistics as of 2008-09-30
1 Year
3 Year
5 Year
10 Year
4
Portfolio Composition as of 2008-06-30
Moderate-allocation funds seek to provide both capital
appreciation and income by investing in three major areas:
stocks, bonds, and cash. These funds tend to hold larger
positions in stocks than conservative-allocation funds. These
funds typically have 50% to 70% of assets in equities and the
remainder in fixed income and cash.
Morningstar RiskAdj Rating
4
4
Morningstar Category: US OE Moderate Allocation
Tot Rtn
% Rank
4
Large Mid
WACYX
1996-01-04
Waddell & Reed Investment
Management CO
888-923-3355
www.waddell.com
Telephone
Web Site
4
Performance Disclosure: The performance data quoted represents past performance. Past performance does not
guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Operations and Management
Ticker
Inv Inception Date
Management Company
DJ Moderate Portfolio TR USD
Performance as of 2008-09-30
Short Int
Long
Morningstar Equity Super Sectors as of 2008-06-30
% Weighting
% Equities
US Treasury Note 4.25%
ExxonMobil Corporation
Schlumberger, Ltd.
Fluor Corporation
General Dynamics
3.45
3.04
2.93
2.93
2.92
h Information
j Service
k Manufacturing
US Treasury Bond 7.25%
US Treasury Note 4.25%
US Treasury Note 4.25%
Colgate-Palmolive Company
Exelon Corporation
2.31
2.31
2.29
2.07
2.04
Morningstar Fixed Income Sectors as of 2008-06-30
Total Number of Stock Holdings
Total Number of Bond Holdings
Total Number of Holdings
Share Class Net Assets (mil)
49
21
78
1
US Credit
Non-US Credit
Mortgage
US Government
Cash
20.79
36.58
42.62
% Inv
% Cat Avg
10.03
0.00
3.78
55.22
30.97
32.26
1.42
25.34
15.52
25.46
Data provided by Morningstar
Report Builder
Pick and choose the elements of a PDF report template to tailor your research to satisfy a particular research goal, or customize your message for
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When you do business with Morningstar, you receive not only innovative investment
research, data, and industry expertise, but also our ongoing commitment to quality
and superior customer service.
Training and support for Morningstar Direct are available from dedicated client
consultants and other sources to help users throughout your organization maximize
the platform’s capabilities.
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3 Learning Center
3 On-site training
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online training
3 Live Web-based
tutorials
3 Pre-recorded
demonstrations
3 Phone support
3 E-mail support
3 Research papers
3 Methodology
documents
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