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Unformatted text preview: the average return for the comparison group of funds to obtain the Morningstar Return vs. Category. Similarly,
risk measures compared to category are computed and reported in the next column.
The last column presents Morningstar's risk- adjusted rating, ranging from one to five stars. The rating is based on
the fund's return score minus risk score compared to other funds with similar investment styles. To allow funds to
be compared to other funds with similar investment styles, Morningstar employs a large number of categories;
there are now 48 separate stock and bond fund categories. Of course, we are accustomed to the disclaimer that
“past performance is not a reliable measure of future results,” and this is true as well of the coveted Morningstar
five- star rating.
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- Summer '11