Morningstar 2011/2012 - (Page 14)

14 Institutional Software Manager Analysis Trailing Returns 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 –5 –10 XYZCo. Manager Analysis Weighting Effect Time Period: 12/1/2009 to 9/30/2011 Benchmark: Russell 2000 Growth TR USD YTD 1 Yr XYZCo. Selection Effect Time Period: 12/1/2009 to 9/30/2011 Benchmark: Russell 2000 Growth TR USD 3 Yr 5 Yr Active Return Time Period: 12/1/2009 to 9/30/2011 Benchmark: Russell 2000 Growth TR USD 10 Yr 15 Yr ABC Growth ABC Growth Baron Small Cap Azul Small Cap Fidelity Advisor Small Cap A ABC Growth T. Rowe Price New Horizons Azul Small Cap Vanguard Explorer Inv ABC Growth Russell 2000 Growth TR USD Azul Small Cap XYZCo. Advisor Small Cap Achilles Small Cap Growth 5 Yr 0.72 1.49 10 Yr 15 Yr 12.26 Trailing Returns ABC Growth Azul Small Cap XYZCo. Advisor Small Cap Achilles Small Cap Growth Matriarch Growth I Russell 2000 Growth TR USD XYZCo. Advisor Small Cap Achilles Small Cap Growth YTD 1 Yr 58.69 57.12 XYZCo. Advisor Small Cap Achilles Small Cap Growth 3 Yr Matriarch Growth I 0.22 –0.73 –1.95 1.13 0.30 –0.31 Matriarch Growth I –5.01 –4.58 Matriarch Growth I 5.71 3.93 -1.2 -0.6 042.84 0.6 66.89 59.95 61.85 1.2 0.17 –2.73 –5.98 -4.59 -5 -2.54.19 0 2.63 0.70 1.47 2.5 5.0 2.83 1.45 1.49 –3.36 -6 -3 9.22 8.02 4.80 0 3 6 Returns-Based Style Analysis Holdings-Based Style Analysis y Giant 7 7 7 77 7 7 7 7 77 7 7 7 Morningstar Large Value TR USD 7 7 ABC Growth ABC Growth Azul Small Cap XYZCo. Advisor Small Cap 1 111 1 11 11 1 1111 1 11 Morningstar Large Growth TR USD Mid Micro Deep Value 1p pp p pp p p p p pp p p p p p Morningstar Small Growth TR USD Morningstar Small Value TR USD Small p p pp 1 p Large 7 p Azul Small Cap 1 XYZCo. Advisor Small Cap Core Value Core Core Growth High Growth Create Custom Communications Make Communications Available Access and Adapt Communications QQQQQ [Nasdaq] Custom reports anywhere. Presentation Studio gives firms the power to create custom fact sheets and presentations,| and then make them instantly available through the web-based Report Portal to teams everywhere Valuedownloading orConsider Sell on mobile devices. Moat displaying Uncertainty Economic Last Price Fair for Consider Buy 26.13 USD Autodesk, Inc. ADSK 39.00 USD TM 27.30 USD 52.70 USD Medium Wide Stewardship C M . Autodesk Posts Solid Performance Across All Segments, ? Geographies; Shares Undervalued Autodesk, Inc. ADSK Last Price 26.13 USD Fair Value 39.00 USD Consider Buy 27.30 USD mo from [Nasdaq] | QQQQQ Consider Sell 52.70 USD Uncertainty Medium Economic Moat Wide TM Stewardship C . Morningstar Credit Rating Industry Software - Application Data as of August 1, 2011 Page 1 Joe Smith ABC Associates Total Assets Under Management Years of Experience Largest Fund Size CIO (Chief Investment Officer), Managing Director $22.9 billion 24 $9.1 billion Manager Overview Investment Name Tenure Dates Role Primary Prospectus Benchmark Fund Type Fund Size ($Bil) Dolars Invested Turnover Ratio % Tenure Return Bmark Return ABC Global Focus ABC Global Focus B ABC International Discovery ABC International ABC International B Tenure Returns 1997 1998 1999 2000 9/1992–Present 10/1996–Present 11/1998–Present 1/2004–Present 8/2007–Present Lead 1 of 2 Sole Sole Lead MSCI World USD MSCI World ex US USD MSCI World Ex USA Small Cap USD MSCI World ex US USD MSCI EAFE USD MF MF MF SA MF 0.32 5.26 1.09 9.02 2.19 + $1Mil + $1Mil + $1Mil N/A None 41 53 46 34 55 1.31 –7.41 10.07 3.60 10.22 2.93 11.44 3.60 10.52 4.96 MSCI EAFE by Rafael Garcia Stock Analyst Analysts covering this company do not own its stock. by Rafael Garcia Stock Analyst Analysts covering this company do not own its stock. Pricing data through September 06, 2011. Rating updated as of September 06, 2011. Currency amounts expressed with "$" are in U.S. dollars (USD) unless otherwise denoted. Autodesk Posts Solid Performance Across All Segments, Geographies; Shares Undervalued Analyst Note Aug. 19, 2011 model, leaves the company well-positioned to benefit from a more stable economic environment. Autodesk continues to be the de facto standard in digital design because of its early presence in the CAD industry, the largest client base of about 9 million CAD end users, and its wide range of industry-specific solutions. In order to compete, rivals have to make their products compatible with Autodesk’s software, which requires licensing technologies from the company. This reinforces Autodesk’s advantage and allows the firm to reap the benefits of positive network effects. The firm also benefits from its customers’ high switching costs: it takes time to learn a new design software application, and operational disruption and downtime costs discourage companies from changing CAD providers. Although Autodesk faces strong rivals such as Dassault Systemes and Parametric Technology, their solutions tend to be pricier and usually require consulting services to install the products and train users. Moreover, we believe that Autodesk’s industry expertise, customer relationships, and global reseller network will keep potential new competitors at bay. AutoCAD and Inventor--the company’s flagship products--provide high-tech, flexible, and ready-to-use design software to mainstream users at an accessible price. Customers reduce production costs by using AutoCAD or Inventor to digitally design, simulate, and analyze products and projects before moving to physical production. Over the years, Autodesk has developed a wide portfolio of vertical applications specifically tailored to the manufacturing, infrastructure, building, and entertainment industries. For example, using the company’s solutions, architects not only can design a new building, but they also can analyze structural requirements, walk through the building in a virtual environment, and analyze energy-consumption trade-offs. The company has a subscription service that entitles clients to receive frequent feature-enhancing add-ons and updates to their products. Users find this service convenient because it represents a predictable expense and ensures that they work with the latest technology 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 06/2011 50 40 30 20 10 0% –10 –20 –30 Calendar Year Returns +/– Benchmark 9 6 3 0% –3 –6 –9 Trailing Returns +/– Benchmark 1-Year 3-Year 5-Year 10-Year 9 6 3 0% –3 –6 –9 Well rounded manager analysis. Profiles spanning managers’ professional histories, plus timely data and tools such as attribution analysis, help with manager due diligence. 5 Style Overview Historical Style Trail Current Ownership Zone Investment Name/Portfolio Date H H H H H ABC Global Focus / 06-30-2010 ABC Global Focus B / 06-30-2010 ABC International Discovery / 06-30-2010 ABC International / 06-30-2010 ABC International B / 06-30-2010 Giant Giant Autodesk posted solid second-quarter results for fiscal 2012, driven by strong performance across all business divisions and geographies. Overall, the results and Pricing data through September 06, 2011. Rating updated as of management’s guidance place the company on track to September 06, 2011. meet our full-year projections. We are leaving our fair Currency amounts expressed with "$" value estimate unchanged. At current prices, the shares are in U.S. dollars (USD) unless offer long-term investors an opportunity to buy a otherwise denoted. wide-moat software company at a significant discount to Incisive company insights. Extensive equity data, reinforced Stock Price fair value. Stock Price 42.0 32.0 22.0 12.0 07 08 09 10 11 Autodesk posted solid second-quarter results for fiscal 2012, driven by strong performance across all business divisions and geographies. Overall, the results and management’s guidance place the company on track to meet our full-year projections. We are leaving our fair value estimate unchanged. At current prices, the shares offer long-term investors an opportunity to buy a wide-moat software company at a significant discount to fair value. Analyst Note Aug. 19, 2011 There were plenty of positive indicators reflecting a stable business environment during the quarter. First, the linearity of business activity--a hallmark of Autodesk’s business model--remained constant. Second, record-high subscription renewal rates and an increase in multiyear subscription contracts indicate strong underlying end user demand for Autodesk’s products. Lastly, despite renewed concerns about slowing manufacturing activity in the United States, the company’s software products for the manufacturing vertical grew 20% year over year, reaching an all-time quarterly revenue record. Similarly, despite the ongoing slump in the U.S. construction industry, Autodesk’s architecture, engineering, and construction segment posted double-digit revenue growth, benefiting from the steady adoption of Revit, the company’s flagship product for building information management. For the quarter, revenue of $546 million increased 15.5% year over year, while operating margins of 17.4% improved 500 basis points. The company also generated its typically high free cash flow, converting 19% of its year-to-date revenue into free cash flow. 42.0 32.0 Latest Portfolio 06-30-2008 Portfolio with analyst research on 2,100+ stocks and 700+ corporate debt issuers, supports company research. of positive indicators reflecting a stable There were plenty Thesis Jun. 08, 2011 We believe that Autodesk will continue dominating the computer-aided design (CAD) industry, and its strong competitive advantage, coupled with a sound business Deep Val Core Val Blend Core Grth High Grth Deep Val Core Val Blend Core Grth High Grth ©2010 Morningstar, Inc., 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. For more information on Morningstar Licensed Data, visit us at global.morningstar.com/LicencedData 22.0 33 A new asset allocation feature gives investment professionals the flexibility to create optimal asset allocation policies. Emerging from the work of Morningstar researchers, statistical capabilities built into Morningstar Direct introduce a completely new methodology for asset allocation. The feature allows users to tailor their distribution assumptions to each asset class, accounting for both normal and non-normal distributions. It can replace standard metrics in the optimization with others such as the geometric mean or conditional value at risk (CVaR). SM Read our research on Asset Allocation for the 21st Century at global.morningstar.com/2112.0 stCenturyAllocation 07 08 09 10 11 Also new, portfolio optimization helps for the 21st Century at identify which allocation to preferred managers global.morningstar.co best meets an asset allocation target. Supporting both strategic and tactical asset allocation planning, the feature incorporates economic analysis, advanced backtesting techniques, and scenario builders. Users can apply returns- and holdings-based constraints to optimizations, as well as various risk factor models. Read our research on Asset Allocation business environment during the quarter. First, the linearity of business activity--a hallmark of Autodesk’s business model--remained constant. Second, record-high Enhancing the investment research process, multiyear subscription renewal rates and an increase in the Note Manager toolindicate strong to subscription contracts allows users underlying end user add their for Autodesk’s products. Lastly, despite renewed demand own comments on an investment to the information housed in Morningstaractivity in the concerns about slowing manufacturing Direct. United States, the can incorporate their For example, users company’s software products for the manufacturing vertical grew 20% year over year, notes from interviews with portfolio managers reaching an all-time quarterly revenue record. for consideration in future analysis. Similarly, despite the ongoing slump in the U.S. construction industry, To offer an expanded view of the investment Autodesk’s architecture, engineering, and construction segment posted increasing revenue growth, landscape, we’redouble-digit the frequency benefiting from the steady adoption of Revit, data to as of Morningstar Direct’s asset flowthe company’s flagship product for building information management. often as weekly, as well as covering additional Aut des the and to c wit tec Aut ben from lea disr from stro Tec req use exp net Large Mid Small Micro Micro Small Mid Large investment types in more markets worldwide. For the quarter, revenue of $546 million increased 15.5% year over year, while operating margins of 17.4% improved 500 basis points. The company also generated its typically high free cash flow, converting 19% of its year-to-date revenue into free cash flow. Aut pro des pric Aut ana pro wid to t ent com bui req env The clie  http://global.morningstar.com/21stCenturyAllocation

Table of Contents for the Digital Edition of Morningstar 2011/2012

Morningstar 2011/2012
Table of Contents
Commonwealth Financial Network
The Hartford
ING
Transamerica
Institutional Software
Custom Software and Services
Investment Data, Market Data, and Indexes
Fund, Stock, and Credit Research
Advisory, Retirement, and Portfolio Management Services
Independent Advisor Software and Services
Financial Communications
Investor Websites and Publications

Morningstar 2011/2012

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