Summary
Effective April 30, 2021, Morningstar will implement several adjustments to peer groups. Adjustments include changing indices assigned to peer groups, adding new peer groups, and retiring peer groups. These changes will be reflected when the April 30 data is released in the Fiduciary Focus Toolkit™ on May 12. The upcoming changes are outlined below.
Index Adjustments on Peer Groups
When the April 30, 2021 fund performance data is updated in the Fiduciary Focus Toolkit, the Fi360 Solutions Default index assignments for the below peer groups will change in accordance with Morningstar updates.
If your clients have holdings within the impacted peer groups and have benchmarks listed in your IPS documents, you may want to consider taking one of these actions:
- Update the IPS to include the new benchmark assignments
- Set the peer group index override so your newly generated monitoring reports will continue to use the existing (old) indices.
Overriding a peer group index assignment can be done either on a client-by-client basis or at a global level (the global adjustment can be done in the Settings area of the Fiduciary Focus Toolkit. Click on the gear icon in the upper-right corner and then select “Peer Group Index Assignment” on the left).
|
Peer Group |
Old Index |
New Index |
|
Commodities Broad Basket |
Morningstar Lng-Only Cmdty TR USD |
Bloomberg Commodity TR USD |
|
Commodities Focused |
Morningstar Lng-Only Cmdty TR USD |
Bloomberg Commodity TR USD |
|
Inverse Commodities |
Morningstar Shrt-Only Cmdty TR USD |
Bloomberg Commodity TR USD |
|
Leveraged Commodities |
Morningstar Lng-Only Cmdty TR USD |
Bloomberg Commodity TR USD |
|
Long-Short Equity |
S&P 500 TR USD |
MSCI ACWI NR USD |
Retiring Peer Groups
Morningstar will retire the below peer groups with the April 30, 2021 fund performance updates. Any funds in these peer groups will be re-classified.
|
Peer Groups to Retire |
|
Bear Market |
|
Multicurrency |
|
Multialternative |
|
Market Neutral |
|
Volatility |
|
Options-based |
|
Long-Short Credit |
|
World Large Stock |
Peer Group Additions
Morningstar will add the below peer groups with the April 30, 2021 fund performance updates.
|
Peer Group |
Broad Asset Class |
Secondary/Category Index |
|
Macro Trading |
Alternative |
Morningstar Mod Con Tgt Risk TR USD |
|
Event Driven |
Alternative |
Morningstar Mod Con Tgt Risk TR USD |
|
Relative Value Arbitrage |
Alternative |
Morningstar Mod Con Tgt Risk TR USD |
|
Derivative Income |
Nontraditional Equity |
CBOE S&P 500 BuyWrite BXM |
|
Options Trading |
Alternative |
Morningstar Mod Con Tgt Risk TR USD |
|
Multistrategy |
Alternative |
Morningstar Mod Con Tgt Risk TR USD |
|
Equity Market Neutral |
Alternative |
Morningstar Mod Con Tgt Risk TR USD |
|
Target-Date 2065+ |
Allocation |
Morningstar Lifetime Mod 2060 TR USD |
|
World Large-Stock Growth |
International Equity |
MSCI ACWI NR USD |
|
World Large-Stock Value |
International Equity |
MSCI ACWI NR USD |
|
World Large-Stock Blend |
International Equity |
MSCI ACWI NR USD |