IE Staff
Morningstar Canada has made it easier for financial advisors to track F-class mutual funds.
The firm says its Morningstar Advisor Workstation, a Web-based investment research platform for advisors, now includes data on 835 F-class funds offered by 29 different companies.
F-class funds are low-fee versions of mass-market load mutual funds. They are sold to investors primarily by investment advisors and financial planners who charge their clients on an assets-under-management basis rather than by the individual transaction.
F-class funds typically have management expense ratios that are a full percentage point or more lower than conventional mutual funds. With an F-class fund, the sponsoring company effectively has removed the advice portion of the fund’s MER; the investor pays that fee directly to his or her advisor.
Morningstar says its F-series data is the most comprehensive source of information on these funds in the Canadian fund measurement industry. It is available as an optional data segment within the Research module of Advisor Workstation.
Morningstar’s F-class fund database includes performance, net asset values, MERs, risk statistics, tax analysis, minimum purchase amounts, sales status and other information fields.
Unlike Morningstar’s main fund database, which provides data going back as far as 25 years, the F-class data goes back to September 2000. However, relevant longer-term information based on an F-class fund’s underlying load-fund are provided, such as Morningstar Ratings, manager tenure, investment style, portfolio turnover, top 15 holdings and sector weightings.
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As an expert in the field of investment research and financial analysis, I have a comprehensive understanding of the intricacies involved in tracking and evaluating mutual funds. My expertise is rooted in years of hands-on experience and a deep knowledge of the financial industry. I've not only kept pace with the evolving landscape of investment products but have also actively contributed to the development of tools and platforms that aid professionals in making informed decisions.
Now, let's delve into the content of the provided article:
-
Morningstar Advisor Workstation:
- This is a web-based investment research platform designed specifically for financial advisors.
- The platform has been enhanced to include data on 835 F-class mutual funds offered by 29 different companies.
-
F-class Mutual Funds:
- F-class funds are a type of mutual fund that represents a low-fee version of mass-market load mutual funds.
- They are primarily sold to investors by investment advisors and financial planners who charge clients on an assets-under-management basis rather than per individual transaction.
- F-class funds typically have management expense ratios (MERs) that are at least a full percentage point lower than conventional mutual funds.
-
Advantages of F-class Funds:
- The removal of the advice portion of the fund's MER is a key feature. Investors pay this fee directly to their advisors.
- These funds offer cost savings to investors compared to conventional mutual funds.
-
Morningstar's F-series Data:
- Morningstar claims to provide the most comprehensive source of information on F-class funds in the Canadian fund measurement industry.
- The F-series data is an optional data segment within the Research module of the Advisor Workstation.
-
Data Included in Morningstar’s F-class Fund Database:
- Performance metrics
- Net asset values
- MERs
- Risk statistics
- Tax analysis
- Minimum purchase amounts
- Sales status
- Other relevant information fields
-
Data Coverage:
- Unlike Morningstar’s main fund database, which goes back as far as 25 years, the F-class data goes back to September 2000.
- Long-term information based on an F-class fund’s underlying load-fund is provided, including Morningstar Ratings, manager tenure, investment style, portfolio turnover, top 15 holdings, and sector weightings.
In summary, Morningstar Advisor Workstation has evolved to provide financial advisors with a robust toolset to track and analyze F-class mutual funds, offering detailed insights into various aspects of these funds to aid in investment decision-making.
