Within the Performance Reporting functionality, use the Scorecard to assign weighting schemes to data points and create custom criteria based on those quantitative and qualitative factors to calculate an overall score. Investments can be scored based on either standardized values or custom grades. The Standardized Scoring method converts raw data points to percentile ranks and applies user-selected weights to those percentile ranks. These weighted percentile ranks are then aggregated to create the score for the investment. The Custom Scoring method converts defined rules placed upon data points and assigns numeric grades based on those rules. Outline Create a Scorecard with Standardized Values Create a Scorecard with Custom Grades Create Historical Scorecards Apply Simple and Conditional Formatting Automatically Run Reports using Batch Scheduling Send and Share Your Reports with Morningstar Direct Colleagues Create a Scorecard with Standardized Values If you are building a new performance report, see the Performance Reporting chapter to learn how to build and customize your performance report. For demonstration purposes, we will use an existing performance report. 1. Open an existing performance report. 2013 Morningstar, Inc. All rights reserved. 1
2. Go to the Edit drop down and click Scorecard. 3. In the Investment Scorecard window, click Advanced Settings. 2013 Morningstar, Inc. All rights reserved. 2
4. Select from Percentile Rank or Z-Score calculations. Percentile Rank is the default which we will maintain. Click OK. 5. Assign Weights to the data points. Weights must sum to 100%. If a data point is not to be included in the scorecard calculation, enter 0% weighting. 2013 Morningstar, Inc. All rights reserved. 3
6. In the Scoring column, identify if a higher or lower number is better. Note that you can reverse the order and decide on the Scoring (Higher/Lower) before applying the weights (step 5). Also, at the bottom of your view, you can set the Score Settings and Ranks. Click OK when complete. 2013 Morningstar, Inc. All rights reserved. 4
7. Go to the Calculate drop down and click on Calculate to generate the Scorecard. 8. Scroll to the right to view your overall scorecard results: Weighted Score, Weighted Score Display Group Rank, and Weighted Score List Rank. 2013 Morningstar, Inc. All rights reserved. 5
Create a Scorecard with Custom Grades 1. Open an existing performance report. 2. Go to the Edit drop down and click Scorecard. 2013 Morningstar, Inc. All rights reserved. 6
3. Click the Custom Scoring option. 4. Click Add Score. 2013 Morningstar, Inc. All rights reserved. 7
5. Select a time period or retain All Time Periods which is the default. 6. Go to the Data Point/Rank Selected drop down and select Return: Peer group percentile. 2013 Morningstar, Inc. All rights reserved. 8
7. For this example, we will designate four breakpoints (quartiles) and at each breakpoint, we will apply a custom score high score is good; low score is bad. For example, input the following for the top 25 th percentile: Operator is Between, Value 1 is 1, Value 2 is 25, Score is 4, and Display is Great (custom text). 8. Continue and add the remaining 3 quartile breakpoints. Use the Display drop down to select from the various choices or simply type the text as we demonstrated above. Click OK once complete. 2013 Morningstar, Inc. All rights reserved. 9
9. Next, apply weights to each rule in the % Weights column. In the image below, we applied more weight to the 3 year time period, for example. 10. Modify Score Settings and Ranks if necessary. Click OK when complete. 2013 Morningstar, Inc. All rights reserved. 10
11. Go to Calculate and click on the Calculate drop down to generate the Scorecard. 12. Once your report is done calculating, go to the far right to view your scores in the Total Score column and Weighted Score column. Recall that the higher scores indicate better results. Also, for each time period, you can view the score, as indicated by the arrow. 13. To alter your display view, go to the view drop down and click on Score Columns, for example. 2013 Morningstar, Inc. All rights reserved. 11
14. Your grid view will now display only the Score Columns as shown in the image below. Create Historical Scorecards 1. Once you ve created your Scorecard with Standardized Values or Custom Grades, you can apply the same criteria historically to generate scores for the historical time periods. Go to the Tools drop down and click on Historical Scorecards. 2013 Morningstar, Inc. All rights reserved. 12
2. Click on Yes to Enable Historical Scorecards. 3. In the Historical Scorecards window, enter a date or you can select from the frequency drop down and as of date. For demonstration purposes, select 1 Quarter, 2 Quarters, 3 Quarters, and 4 Quarters as they will get displayed in the right Selected Scorecards box all as of the Last Market Close. Once complete, click OK. 2013 Morningstar, Inc. All rights reserved. 13
4. You will be taken back to your grid view. Proceed to go to Calculate drop down and click Calculate. 5. You have successfully created historical scorecards. 2013 Morningstar, Inc. All rights reserved. 14
Apply Simple and Conditional Formatting Simple and Conditional Formatting allows you to distinguish between specific investments. Using Simple Formatting, you can select an investment to highlight. Using Conditional Formatting, you can identify specific criteria to highlight. 1. Open an existing performance report. Right-click on an investment and select a specific color (such as yellow) to highlight the row. 2. Next, right-click on a column to apply a conditional highlighting rule. In this example, choose Add Formatting Rule on Peer Group Percentile to highlight rows based on their specific percentile results. 2013 Morningstar, Inc. All rights reserved. 15
3. You will be automatically taken to the Conditional Formatting Rules window. For this example, we will differentiate the percentile breakpoints with 4 colors: between 1 to 25 will be green, between 26 and 50 will be yellow, between 51 and 75 will be blue, and between 76 and 100 will be red. You can use the clone feature to duplicate and change the values. At any point, you can preview the color before clicking OK. When complete, click OK. 2013 Morningstar, Inc. All rights reserved. 16
4. As you can see, the values in the Peer Group Percentile column are now identified by color. To apply the same criteria to the remaining time periods, do a right click and select Copy Conditional Formatting. 5. Go to the remaining time periods and select Paste the Conditional Formatting to the remaining Peer Group Percentile columns. 2013 Morningstar, Inc. All rights reserved. 17
6. As displayed below, you can now track the trend of the investments moving from one percentile breakpoint to another. 7. You can also filter your report to only view results that meet custom criteria. For example, right-click on the data point that you would like to filter. Select Add Filter Rule on Peer group percentile. 2013 Morningstar, Inc. All rights reserved. 18
8. Enter the criteria by which you wish to filter. For example, let s filter the top percentile results for the 5 year period. If you uncheck Update Summary Statistics - as we did, indicated by the arrow - your report will not recalculate and will simply hide the information that doesn t meet the criteria. If you check Update Summary Statistics (default), then your report will recalculate updating the summary statistics. Click OK when complete. 9. Your grid view will now display the filtered results. 2013 Morningstar, Inc. All rights reserved. 19
Automatically Calculate Reports Using Batch Scheduling 1. Once you have created a performance report, you can schedule a batch to automatically calculate the report. Click on Batches. 2. Click on New. 2013 Morningstar, Inc. All rights reserved. 20
3. First, enter a name for your batch. Second, add the reports to the Selected Reports window using the arrows provided. Keep in mind, you can select individual files or folders containing specific files. Click Next when complete. 4. Once you have determined your file locations and other settings, click Schedule. 2013 Morningstar, Inc. All rights reserved. 21
5. Fill out the settings in the Schedule Batch dialog box. Click OK when complete. 6. Click Finish to complete the process. 2013 Morningstar, Inc. All rights reserved. 22
7. Notice your scheduled batch is now listed. 8. Go to Action and click Refresh Scheduled Tasks to sync your computer log-in to the batch. 9. Enter your Windows Login and password. Press OK. 2013 Morningstar, Inc. All rights reserved. 23
Send and Share Reports with Morningstar Direct Colleagues 1. Once you have created your report, you can send or share with colleagues within or outside your firm. Choose the report, click Action, and select either Send To or Share With, Outside My Firm. 2013 Morningstar, Inc. All rights reserved. 24