Investments Morningstar Medalist refresh: The Capital System^™ supports upgrades

Important information: 

The Morningstar Medalist Rating™ is the summary expression of  Morningstar’s forward looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver,  Bronze, Neutral, and Negative. The Medalist Ratings indicate which  investments Morningstar believes are likely to outperform their  Morningstar Category average on a risk adjusted basis over time.  Investment products are evaluated on three fundamental pillars  (People, Parent, and Process) and the Medalist Rating Price Score,  which forms the basis for Morningstar’s conviction in those products’  investment merits and determines the Medalist Rating they are  assigned. Pillar ratings take the form of Low (-2), Below Average  (-1), Average (0), Above Average (+1), and High (+2). Pillars may be  evaluated via an analyst’s qualitative assessment (either directly to  a vehicle the analyst covers or indirectly when the pillar ratings of a  covered vehicle are mapped to a related uncovered vehicle) or using  algorithmic techniques. The cost of an investment product is evaluated  using the Medalist Rating Price Score, which is a continuous score  running from negative 2.5 to positive 2.5 based on the percentile  rank of a vehicle’s expense ratio within its Morningstar Category.  Morningstar combines the pillar scores and Medalist Rating Price  Score using predetermined weights for actively and passively  managed vehicles to calculate a weighted score. The weighted score  is then compared to a set of fixed numeric thresholds employed  consistently across Morningstar Categories and regions, with separate  thresholds for actively and passively managed investments. Rating  thresholds are reviewed at least annually. Buffers and ratings caps are  employed to prevent frequent ratings changes. When analysts directly  cover a vehicle, they assign the fundamental pillar ratings based on  their qualitative assessment, subject to the oversight of the Analyst  Rating Committee, and monitor and reevaluate them approximately  once a year. When vehicles are covered either indirectly by analysts  or by algorithm, the ratings are assigned monthly. For more detailed  information about the Medalist Ratings, including their methodology,  please visit: Morningstar's website.

The Morningstar Medalist Ratings are not statements of fact, nor  are they credit or risk ratings. The Morningstar Medalist Rating (i)  should not be used as the sole basis in evaluating an investment  product, (ii) involves unknown risks and uncertainties which may cause  expectations not to occur or to differ significantly from what was  expected, (iii) is not guaranteed to be based on complete or accurate  assumptions or models when determined algorithmically, (iv) involves  the risk that return targets will not be met due to unforeseen changes  in management, technology, economic development, interest rate  development, operating and/or material costs, competitive pressure,  supervisory law, exchange rates, tax rates, or political and social  conditions, and (v) should not be considered an offer or solicitation to  buy or sell the investment product. A change in the fundamental factors  underlying the Morningstar Medalist Rating may result in the rating no  longer being accurate. Analysts do not have any other material conflicts  of interest at the time of publication. Users wishing to obtain further  information should contact their local Morningstar office.