Morningstar Investment Profile: Mutual Fund Data Definitions

Performance
Growth of $10,000 Graph
The Growth of $10,000 graph shows a fund's performance based on how $10,000 invested in
the fund would have grown over time. The returns used in the graph are not load-adjusted.
The growth of $10,000 begins at the date of the fund's inception, or the first year listed on
the graph, whichever is appropriate. Located alongside the fund's graph line is a line that
represents the growth of $10,000 in either the S&P 500 index (for stock funds and hybrid
funds) or the LB Aggregate index (for bond funds). The third line represents the fund's
Morningstar category (see definition below). These lines allow investors to compare the
performance of the fund with the performance of a benchmark index and the fund's
Morningstar category. Both lines are plotted on a logarithmic scale, so that identical
percentage changes in the value of an investment have the same vertical distance on the
graph.
For example, the vertical distance between $10,000 and $20,000 is the same as the
distance between $20,000 and $40,000 because both represent a 100% increase in
investment value. This provides a more accurate representation of performance than would
a simple arithmetic graph. The graphs are scaled so that the full length of the vertical axis
represents a tenfold increase in investment value. For securities with returns that have
exhibited greater than a tenfold increase over the period shown in the graph, the vertical
axis has been compressed accordingly.
Annual Returns
Total returns calculated on a calendar-year basis. Total return includes both income (in the
form of dividends or interest payments) and capital gains or losses (the increase or decrease
in the value of a security). Morningstar calculates total return by taking the change in a
fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the
actual reinvestment date used by the fund) during the period, and then dividing by the initial
NAV. Unless marked as load-adjusted total returns, Morningstar does not adjust total return
for sales charges or for redemption fees. Total returns do account for management,
administrative, and 12b-1 fees and other costs automatically deducted from fund assets.
+/- S&P 500 or +/- LB Aggregate
A benchmark index gives the investor a point of reference for evaluating a fund's
performance. In all cases where such comparisons are made, Morningstar uses the S&P 500
as the primary benchmark for stock-oriented funds, and the Lehman Brothers Aggregate
Bond index (an overall bond benchmark) as the benchmark index for bond funds. The +/(Calendar Year) figure indicates the amount by which a fund over- or underperformed its
primary index during a given calendar year.
+/- Category
The Morningstar category gives the investor a point of reference for evaluating a fund's
performance (see the Morningstar category definition below). The +/- (Calendar Year) figure
indicates the amount by which a fund over- or underperformed its category during a given
calendar year.
Key Stats

Morningstar Category
While the investment objective stated in a fund's prospectus may or may not reflect how the
fund actually invests, the Morningstar category is assigned based on the underlying
securities in each portfolio. Morningstar categories help investors and investment
professionals make meaningful comparisons between funds. The categories make it easier to
build well-diversified portfolios, assess potential risk, and identify top-performing funds. We
place funds in a given category based on their portfolio statistics and compositions over the
past three years. If the fund is new and has no portfolio history, we estimate where it will fall
before giving it a more permanent category assignment. When necessary, we may change a
category assignment based on recent changes to the portfolio.
Stock Funds
Domestic-Stock Funds
Funds with at least 70% of assets in domestic stocks are categorized based on the style and
size of the stocks they typically own. The style and size divisions reflect those used in the
Morningstar investment style box: value, blend, or growth style and small, medium, or large
median market capitalization. (See Equity Style Box for more details on style methodology.)
Based on their investment style over the past three years, domestic-stock funds are placed
in one of the nine categories: large growth, large blend, large value, medium growth,
medium blend, medium value, small growth, small blend, small value. Domestic-equity funds
that specialize in a particular sector of the market are placed in a specialty category:
communications, financials, health care, natural resources, precious metals, real estate,
technology, utilities, and convertible bond. (Precious-metals funds are assigned star ratings
in the international-stock asset class.)
Finally, Morningstar also has domestic-stock categories covering:
Conservative Allocation: A fund that invests in both stocks and bonds and maintains a
relatively smaller position in stocks. The funds typically have 20 percent to 50 percent of
assets in equities and 50 percent to 80 percent of assets in fixed income and cash.
Moderate Allocation: A fund that invests in both stocks and bonds and maintains a higher
position in stocks. The funds typically have 50 percent to 70 percent of assets in equities and
the remainder in fixed income and cash.
Bear Market: A fund that uses short positions and derivatives in order to profit from stocks
that drop in price. Because these funds have extensive holdings in shorts or puts, their
returns generally move in the opposite direction of the benchmark index.
International-Stock Funds
Stock funds that have invested 40% or more of their equity holdings in foreign stocks (on
average over the past three years) are placed in an international-stock category.
Europe: at least 75% of stocks invested in Europe.
Japan: at least 75% of stocks invested in Japan.
Latin America: at least 75% of stocks invested in Latin America.
Diversified Pacific: at least 65% of stocks invested in Pacific countries, with at least an
additional 10% of stocks invested in Japan.
Asia/Pacific ex-Japan: at least 75% of stocks invested in Pacific countries, with less than 10%
of stocks invested in Japan.
Diversified Emerging Markets: at least 50% of stocks invested in emerging markets.

Foreign Large Value: Foreign large-value funds invest mainly in big international stocks
that are less expensive than the market as a whole. Most of these funds divide their assets
among a dozen or more developed markets, including Japan, Britain, France, and Germany.
They tend to invest the rest in emerging markets such as Hong Kong, Brazil, Mexico and
Thailand. These funds typically will have less than 20% of assets invested in U.S. stocks.
Foreign Large Blend: Foreign large-blend funds invest in a variety of big international
stocks. Most of these funds divide their assets among a dozen or more developed markets,
including Japan, Britain, France, and Germany. They tend to invest the rest in emerging
markets such as Hong Kong, Brazil, Mexico and Thailand. These funds typically will have less
than 20% of assets invested in U.S. stocks.
Foreign Large Growth: Foreign large-growth funds focus on high-priced growth stocks,
mainly outside of the United States. Most of these funds divide their assets among a dozen
or more developed markets, including Japan, Britain, France, and Germany. They tend to
invest the rest in emerging markets such as Hong Kong, Brazil, Mexico and Thailand. These
funds typically will have less than 20% of assets invested in U.S. stocks.
Foreign Small-/Mid-Value: Foreign small-/mid-value funds invest in international stocks
that are smaller and less expensive than the market as a whole. Most of these funds divide
their assets among a dozen or more developed markets, including Japan, Britain, France, and
Germany. These funds typically will have less than 20% of assets invested in U.S. stocks.
Foreign Small-/Mid-Growth: Foreign small-/mid-growth funds invest in international stocks
that are smaller and higher-priced than the market as a whole. Most of these funds divide
their assets among a dozen or more developed markets, including Japan, Britain, France, and
Germany. These funds typically will have less than 20% of assets invested in U.S. stocks.
World: an international fund having more than 20% of stocks invested in the United States.
World Allocation: used for funds with stock holdings of greater than 20% but less than
70% of the portfolio where 40% of the stocks and bonds are foreign.
Bond Funds
Funds with 80% or more of their assets invested in bonds are classified as bond funds. Bond
funds are divided into two main groups: taxable bond and municipal bond. (Note: For all
bond funds, maturity figures are used only when duration figures are unavailable.)
Taxable-Bond Funds
Long-Term Government: A fund with at least 90% of bond portfolio invested in
government issues with a duration of greater than, or equal to six years or an average
effective maturity of greater than 10 years.
Intermediate-Term Government: A fund with at least 90% of its bond portfolio invested in
government issues with a duration of greater than or equal to 3.5 years and less than six
years or an average effective maturity of greater than or equal to four years and less than
10 years.
Short-Term Government: A fund with at least 90% of its bond portfolio invested in
government issues with a duration of greater than or equal to one year and less than 3.5
years, or average effective maturity of greater than or equal to one year and less than four
years.
Long-Term Bond: A fund that focuses on corporate and other investment-grade issues with
an average duration of more than six years, or an average effective maturity of more than
10 years.

Intermediate-Term Bond: A fund that focuses on corporate, government, foreign or other

issues with an average duration of greater than or equal to 3.5 years but less than or equal
to six years, or an average effective maturity of more than four years but less than 10 years.
Short-Term Bond: A fund that focuses on corporate and other investment-grade issues with
an average duration of more than one year but less than 3.5 years, or an average effective
maturity of more than one year but less than four years.
Ultrashort Bond: Used for funds with an average duration or an average effective maturity
of less than one year. This category includes general- and government-bond funds, and
excludes any international, convertible, multisector, and high-yield bond funds.
Bank Loan: funds that invest primarily in floating-rate bank loans instead of bonds. In
exchange for their credit risk, they offer high interest payments that typically float above a
common short-term benchmark.
Stable Value: funds that seek to provide income while preventing price fluctuations. The
most common stable-value portfolios invest in a diversified portfolio of bonds and enter into
wrapper agreements with financial companies to guarantee against fluctuations in their
share prices. These wrapper agreements typically provide price stability on a day-to-day
basis, thereby insulating each portfolio's net asset value from interest-rate volatility.
Therefore, their true overall durations are effectively zero.
World Bond: A fund that invests at least 40% of bonds in foreign markets.
Emerging-Markets Bond: at least 65% assets in emerging-markets bonds.
High-Yield Bond: A fund with at least 65% of assets in bonds rated below BBB.
Multi sector Bond: Used for funds that seek income by diversifying their assets among
several fixed-income sectors, usually U.S. government obligations, foreign bonds, and highyield domestic debt securities.
Municipal Bond Funds
Municipal National Long-Term: A national fund with an average duration of more than
seven years, or average maturity of more than 12 years.
Municipal National Intermediate-Term: A national fund with an average duration of more
than 4.5 years but less than seven years, or average maturity of more than five years but
less than 12 years.
High Yield Muni: A fund that invest at least 50 percent of assets in high-income municipal
securities that are not rated or that are rated by a major rating agency at the level of BBB
(considered speculative in the municipal industry) or below.
Municipal National Short: A fund that focuses on municipal debt/bonds with an average
duration of less than 4.5 years, or an average maturity of less than five years.
High Yield Muni: A fund that invest at least 50 percent of assets in high-income municipal
securities that are not rated or that are rated by a major rating agency at the level of BBB
(considered speculative in the municipal industry) or below.
State-specific munis: A municipal bond fund that primarily invest in one specific state.
These funds must have at least 80 percent of assets invested in municipal bonds from that
state. Each state-specific muni category includes long, intermediate, and short duration
bond funds. State-specific funds that do not fall into one of the below categories will occupy
either the Muni Single State Long-Term or Muni Single State Intermediate/Short category.
Muni California Intermediate/Short
Muni California Long-Term

Muni
Muni
Muni
Muni
Muni
Muni
Muni
Muni

Florida
Massachusetts
Minnesota
New Jersey
New York Intermediate/Short
New York Long-Term
Ohio
Pennsylvania

Morningstar Rating for Funds

Morningstar rates mutual funds from one to five stars based on how well they've performed
(after adjusting for risk and accounting for all sales charges) in comparison to similar funds.
Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5%
four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10%
receive one star. Funds are rated for up to three time periods--three-, five-, and 10 years-and these ratings are combined to produce an overall rating. Funds with less than three
years of history are not rated. Ratings are objective, based entirely on a mathematical
evaluation of past performance. They're a useful tool for identifying funds worthy of further
research, but shouldn't be considered buy or sell recommendations.
NAV
A fund's net asset value (NAV) represents its per-share price. A fund's NAV is derived by
dividing the total net assets of the fund, less fees and expenses, by the number of shares
outstanding.
Day Change
The change in the price of the fund during the prior business day.
Total Assets
This figure is recorded in millions of dollars and represents the fund's total asset base.
Expense Ratio %
The percentage of fund assets paid for operating expenses and management fees, including
12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except
brokerage costs. Fund expenses are reflected in the fund's NAV. Sales charges are not
included in the expense ratio.
Benefits
The expense ratio is useful because it shows the actual amount that a fund takes out of its
assets each year to cover its expenses. Investors should note not only the current expenseratio figure, but also the trend in these expenses; it could prove useful to know whether a
fund is becoming cheaper or more costly. When considering high expenses vs. low expenses,
potential investors must also consider the fund's objective and its size. Certain objectives,
such as foreign-equity funds, have higher costs and, therefore, higher expense ratios. As for
size, smaller funds are normally costlier than larger funds, because they do not have the
benefits of economies of scale.
Front-end Load
The initial, or front-end, sales charge is a one-time deduction from an investment made into
the fund. The amount is generally relative to the amount of the investment, so that larger
investments incur smaller rates of charge. The sales charge serves as a commission for the
broker who sold the fund.

Deferred Load
These are also known as back-end sales charges and are imposed when investors redeem
shares. The percentage charged generally declines the longer shares are held. This charge,
often coupled with 12b-1 fees as an alternative to a traditional front-end load, diminishes
over time.
Yield
Yield, expressed as a percentage, represents a fund's income return on capital investment
for the past 12 months. This figure refers only to interest distributions from fixed-income
securities, dividends from stocks, and realized gains from currency transactions. Monies
generated from the sale of securities or from options and futures transactions are considered
capital gains, not income. Return of capital is also not considered income NMF--or No
Meaningful Figure--appears in this space for those funds that do not properly label their
distributions. We list N/A if a fund is less than one year old, in which case we cannot
calculate yield.
Morningstar computes yield by dividing the sum of the fund's income distributions for the
past 12 months by the previous month's NAV (adjusted upward for any capital gains
distributed over the same time period).
Manager Name
The name of the individual or individuals who are employed by the advisor or sub advisor
who are directly responsible for managing the fund's portfolio, as taken directly from the
fund's prospectus. Other terms that may appear in this column include the following:
Multiple Managers
This term appears when more than two people are involved in the fund management, and
they manage independently. Where this term is used, quite often the fund has divided net
assets in set amounts among the individual managers. In most cases, multiple managers are
employed at different sub advisors or investment firms.
Management Team
This is used when there are more than two people involved in fund management, and they
manage together, or when the fund strongly promotes its team-managed aspect.
Et al
When this term appears just after a manager name, it indicates that while other people are
involved in fund management, the person listed acts as the leader or is recognized by the
fund as being the principal management player.
Portfolio Analysis
MORNINGSTAR STYLE BOX
The Morningstar Style Box T was introduced in 1992 to help investors and advisors
determine the investment style of a fund. The equity Style Box is a nine-square grid that
classifies securities by size along the vertical axis and by value and growth characteristics
along the horizontal axis. Different investment styles often have different levels of risk and
lead to differences in returns. Therefore, it is crucial that investors understand style and
have a tool to measure their style exposure. For the Fixed-Income Morningstar Style Box, see
Fixed-Income Style Box.
Benefits

Morningstar's equity style methodology uses a "building block," holdings-based approach

that is consistent with Morningstar's fundamental approach to investing. Style is first
determined at the stock level and then those attributes are "rolled up" to determine the
overall investment style of a fund or portfolio. This unified framework can link what are often
treated as separate processes-stock research, fund research, portfolio assembly, and market
monitoring-in the belief that a shared analytical framework will lead to better portfolio
construction and fund usage.
Morningstar uses 10 different stock characteristics to measure value and growth, and this
produces more accurate and stable stock and portfolio style assignments. Morningstar uses
both forward-looking and historical-based components to ensure that information available
to active portfolio managers is incorporated in the model. This robust approach to style
analysis is a powerful lens for understanding stocks, funds, and portfolios.
The Morningstar Style Box is applicable in all equity markets. A geographic framework
ensures that style assignments are relevant to local investors everywhere. As of March 31,
2004, all U.S. and non-U.S. stocks and portfolios are evaluated under the same style
methodology. This methodology was originally introduced in May 2002 for U.S. stocks and
portfolios only.
Using the Style Box
In general, a growth-oriented portfolio will hold the stocks of companies that the portfolio
manager believes will increase factors such as sales and earnings faster than the rest of the
market. A value-oriented portfolio contains mostly stocks the manager thinks are currently
undervalued in price and will eventually see their worth recognized by the market. A blend
portfolio might be a mix of growth stocks and value stocks, or it may contain stocks that
exhibit both characteristics.
The Morningstar Style Box helps investors construct diversified, style-controlled portfolios
based on the style characteristics of all the stocks and funds included in that portfolio.
Origin
Morningstar generates Style Boxes for stocks and portfolios in-house, using data culled from
our internal databases. Style Box assignments for stocks are updated each month. Style Box
assignments for portfolios are recalculated whenever Morningstar receives updated holdings
for the portfolio.
The Style Box also forms the basis for the style-based Morningstar Categories and market
indexes.
For the Pros
The Morningstar Style Box captures three of the major considerations in equity investing:
size, security valuation and security growth. Value and growth are measured separately
because they are distinct concepts. A stock's value orientation reflects the price that
investors are willing to pay for some combination of the stock's anticipated per-share
earnings, book value, revenues, cash flow, and dividends. A high price relative to these
measures indicates that a stock's value orientation is weak, but it does not necessarily mean
that the stock is growth-oriented. Instead, a stock's growth orientation is independent of its
price and reflects the growth rates of fundamental variables such as earnings, book value,
revenues, and cash flow. When neither value nor growth is dominant, stocks are classified as
"core" and portfolios are classified as "blend."
Stock Size Score: Vertical Axis
Rather than using a fixed number of "large cap" or "small cap" stocks, Morningstar uses a
flexible system that isn't adversely affected by overall movements in the market. World

equity markets are first divided into seven style zones: United States, Latin America,
Canada, Europe, Japan, Asia ex-Japan, Australia/New Zealand
The stocks in each style zone are further subdivided into size groups. Giant-cap stocks are
defined as those that account for the top 40% of the capitalization of each style zone; largecap stocks represent the next 30%; mid-cap stocks represent the next 20%; small-cap stocks
represent the next 7% and micro-cap stocks represent the smallest 3%. For value-growth
scoring, giant-cap stocks are included with the large-cap group for that style zone, and
micro-caps are scored against the small-cap group for that style zone.
Stock Style Score: Horizontal Axis
The scores for a stock's value and growth characteristics determine its horizontal placement.
There are five value factors and five growth factors, which are listed below.
Value Score Components and Weights
Forward Looking: Price/Projected Earnings 50.0%
Historical-Based Measures
Price/Book 12.5%
Price/Sales 12.5%
Price/Cash Flow 12.5%
Dividend Yield 12.5%
Growth Score Components and Weights
Forward Looking: Long-term Projected Earnings Growth 50.0%
Historical-Based Measures:
Book Value Growth 12.5%
Sales Growth 12.5%
Cash Flow Growth 12.5%
Historical Earnings Growth 12.5%
The five value and five growth characteristics for each individual stock are compared to
those of other stocks within the same scoring group (groups based on style zone and size,
e.g. Europe large-caps). Stocks are then assigned Overall Value and Overall Growth scores
based on the ten factors. If either growth or value is dominant, the stock is classified
accordingly. If the scores for value and growth are similar in strength, the stock is classified
as "core."
The thresholds between value, core, and growth stocks vary to some degree over time, as
the distribution of stock styles changes in each style zone. However, on average, the three
stock styles each account for approximately one-third of the total capitalization in each
scoring group.
Moving from Individual Stocks to Portfolios
A stock fund or portfolio is an aggregation of individual stocks and its style is determined by
the style assignments of the stocks it owns. Style Box assignments for portfolios are based
on the asset-weighted average of the style and size scores of the underlying stocks. Few or
no portfolios contain only stocks with extreme value-growth orientations, and both value and
growth managers often hold core stocks for diversification or other reasons. Therefore, for
portfolios, the central column of the Style Box represents the "blend" style (a mixture of
growth and value stocks or mostly core stocks).
Fixed-Income Style Box

Domestic and international fixed-income funds focus on the two pillars of fixed-income
performance: interest-rate sensitivity and credit quality. Morningstar splits fixed-income
funds into three groups of interest rate sensitivity (high, medium, and low) and three creditquality groups (high, medium, and low). These groupings graphically display a portfolio's
average effective duration and credit quality. As with equity funds, nine possible
combinations exist, ranging from short maturity/high quality for the safest funds to long
maturity/low quality for the more volatile.
Along the horizontal axis of the style box lies the average term length of a fund's bond
portfolio based on average effective duration. This figure, which is calculated by the fund
companies, weights each bond's duration by its relative size within the portfolio. Duration
provides a more accurate description of a bond's true interest-rate sensitivity than does
maturity because it takes into consideration all mortgage prepayments, puts, and adjustable
coupons. Funds with an average effective maturity of less than 3.5 years qualify as short
term. Funds with bonds that have an average effective duration greater than or equal to 3.5
years but less than or equal to six years are categorized as intermediate, and those with
maturity that exceeds six years are long term. (The duration ranges vary slightly for
municipal-bond funds: Less than 4.5 years is short term; 4.5 to seven years is intermediate;
and greater than seven years is long term.)
If duration data are not available, Morningstar will use average effective maturity figures to
calculate the fund's style box. Although duration is the more accurate measurement,
maturity can also be used to gauge the amount of interest-rate risk in a fund's portfolio.
Funds with bonds that have an average effective maturity of less than four years qualify as
short term. Funds with an average effective maturity greater than or equal to four years but
less than or equal to 10 years are categorized as intermediate, and those with maturity that
exceeds 10 years are long term.
Along the vertical axis of a fixed-income style box lies the average quality rating of a bond
portfolio. Funds that have an average credit rating of AAA or AA are categorized as high
quality. Bond portfolios with average ratings of A or BBB are medium quality, and those rated
below BB are categorized as low quality. For the purposes of Morningstar's calculations, U.S.
government securities are considered AAA bonds, nonrated municipal bonds generally are
classified as BB, and all other nonrated bonds are considered B.
For hybrid funds, both equity and fixed-income style boxes appear.
Portfolio Date (explanation of reporting frequency)
Morningstar makes every effort to gather the most up-to-date portfolio information from a
fund. By law, however, funds need only report this information two times during a calendar
year, and they have two months after the report date to actually release the shareholder
report and portfolio. Therefore, it's possible that a fund's portfolio could be up to eight
months old at the time of publication. We print the date the portfolio was reported.
Older portfolios should not be disregarded, however. Although the data may not represent
the exact current holdings of the fund, it may still provide a good picture of the overall
nature of the fund's management style.
Asset Allocation

% Cash: This data point identifies the percentage of the fund's net assets held in
cash. Cash encompasses both actual cash and cash equivalents (fixed-income
securities with a maturity of one year or less) held by the portfolio plus receivables
minus payables. Negative percentages of cash indicate that the portfolio is leveraged,
meaning it has borrowed against its own assets to buy more securities or that it has

used other techniques to gain more than 100% exposure to the market.
% Stocks: The percentage listed under the heading Stocks incorporates only the
portfolio's straight common stock holdings.
% Bonds: This data point identifies the percentage of the fund's net assets held in
bonds. Bonds include everything from government notes to high-yield corporate
bonds.
% Other: Other includes preferred stocks (equity securities that pay dividends at a
specific rate) as well as convertible bonds and convertible preferreds, which are
corporate securities that are exchangeable for a set amount of another form of
security (usually common shares) at a prestated price. Other also may denote
holdings in not-so-neatly-categorized securities, such as warrants and options.

Turnover Ratio
This is a measure of the fund's trading activity which is computed by taking the lesser of
purchases or sales (excluding all securities with maturities of less than one year) and
dividing by average monthly net assets. A turnover ratio of 100% or more does not
necessarily suggest that all securities in the portfolio have been traded. In practical terms,
the resulting percentage loosely represents the percentage of the portfolio's holdings that
have changed over the past year. Benefits: A low turnover figure (20% to 30%) would
indicate a buy-and-hold strategy. High turnover (more than 100%) would indicate an
investment strategy involving considerable buying and selling of securities. Origin:
Morningstar does not calculate turnover ratios. The figure is culled directly from the financial
highlights of the fund's annual report.
% Assets in Top 10
The aggregate assets, expressed as a percentage, of the fund's top 10 portfolio holdings.
This figure is meant to be a measure of portfolio risk. Specifically, the higher the percentage,
the more concentrated the fund is in a few companies or issues, and the more the fund is
susceptible to the market fluctuations in these few holdings. The figure is calculated from
the most recent available fund holdings. Benefits: The Percent Assets in Top 10 Holdings
figure provides insight into the degree to which a portfolio is diversified. Used in combination
with the total number of holdings, it can indicate how concentrated a fund is. Origin: This
figure is calculated in-house, using the most recent portfolio we have available for the fund.
It currently counts cash as a holding.
Sector Breakdown %

Basic Materials - Companies that manufacture chemicals, building materials and paper
products. This sector also includes companies engaged in commodities exploration
and processing. Companies in this sector include ArcelorMittal, BHP Billiton and Rio
Tinto.
Consumer Cyclical - This sector includes retail stores, auto and auto parts
manufacturers, companies engaged in residential construction, lodging facilities,
restaurants and entertainment companies. Companies in this sector include Ford
Motor Company, McDonald's and News Corporation.
Financial Services - Companies that provide financial services which includes banks,
savings and loans, asset management companies, credit services, investment
brokerage firms, and insurance companies. Companies in this sector include Allianz,
J.P. Morgan Chase and Legg Mason.
Real Estate - This sector includes mortgage companies, property management
companies and REITs. Companies in this sector include Kimco Realty Corporation,
Vornado Realty Trust and Westfield Group.

Consumer Defensive - Companies engaged in the manufacturing of food, beverages,

household and personal products, packaging, or tobacco. Also includes companies
that provide services such as education & training services. Companies in this sector
include Philip Morris International, Procter & Gamble and Wal-Mart Stores.
Healthcare - This sector includes biotechnology, pharmaceuticals, research services,
home healthcare, hospitals, long-term care facilities, and medical equipment and
supplies. Companies in this sector include Astra Zeneca, Pfizer and Roche Holding.
Utilities - Electric, gas, and water utilities. Companies in this sector include Electricit
de France, Exelon and PG&E Corporation.
Communication Services - Companies that provide communication services using
fixed-line networks or those that provide wireless access and services. This sector also
includes companies that provide internet services such as access, navigation and
internet related software and services. Companies in this sector include AT&T, France
Telecom and Verizon Communications.
Energy - Companies that produce or refine oil and gas, oil field services and
equipment companies, and pipeline operators. This sector also includes companies
engaged in the mining of coal. Companies in this sector include BP, ExxonMobil and
Royal Dutch Shell.
Industrials - Companies that manufacture machinery, hand-held tools and industrial
products. This sector also includes aerospace and defense firms as well as companied
engaged in transportations and logistic services. Companies in this sector include 3M,
Boeing and Siemens.
Technology - Companies engaged in the design, development, and support of
computer operating systems and applications. This sector also includes companies
that provide computer technology consulting services. Also includes companies
engaged in the manufacturing of computer equipment, data storage products,
networking products, semiconductors, and components. Companies in this sector
include Apple, Google and Microsoft.

Top 3 Credit Weightings

For corporate-bond and municipal-bond funds, the credit weightings depict the quality of
bonds in the fund's portfolio. The weightings reveal the percentage of fixed-income
securities that fall within each credit-quality rating as assigned by Standard & Poor's or
Moody's. At the top of the ratings are U.S. government bonds. Bonds issued and backed by
the federal government are of extremely high quality and thus are considered superior to
bonds rated AAA, which is the highest possible rating a corporate issue can receive.
Morningstar gives U.S. government bonds a credit rating separate from AAA securities to
allow for a more accurate credit analysis of a portfolio's holdings. Bonds with a BBB rating
are the lowest bonds that are still considered to be of investment-grade. Bonds that are
rated BB or lower (often called junk bonds or high-yield bonds) are considered to be quite
speculative. Any bonds that appear in the Not Rated or Not Available category are either not
rated by Standard & Poor's or Moody's, or do not have a rating available at this time.
Top 5 Holdings
These are the top 5 holdings in the fund's portfolio ranked by the % of net assets.
YTD Return %
The holding's YTD return through the last close.

% of Net Assets
Morningstar calculates the percentage of net assets figure by dividing the market value of
the security by the fund's total net assets. If a few securities take up a large percentage of
the fund's net assets, the fund uses a concentrated portfolio strategy. If the percentage
figures are low, then the manager is not willing to bet heavily on any particular security.
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