Morningstar® Principia®

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Morningstar Principia®: Advanced, Accurate, and Flexible

Thousands of advisors rely on Principia for its rich data content, powerful investment research tools, and ability to generate client-friendly reports. Available as separate investment databases and specialized modules, Principia allows advisors to build a system configured to their exact needs. The Principia Suite provides an advanced research foundation and includes all of the investment modules, as well as Hypotheticals and Presentations & Education, for a cost savings of nearly 50%.

Morningstar Principia is a powerful, time-

tested solution that includes in-depth data on

mutual funds, stocks, exchange-traded funds,

variable annuities, closed-end funds, and

separately managed accounts. For more

than 10 years, investment advisors—from

independents to large broker-dealers—have

depended on it for fundamental investment

research, sophisticated portfolio analysis,

and professional client presentations.

During this time, we’ve continually enhanced

Principia’s core capabilities by adding new

investment databases and analytical tools.

The result is a flexible and cost-efficient

system that is easily adaptable to the specific

needs of your business.

Investment Research with Exclusive

Morningstar Tools

Search and screen six investment universes

for the securities that best meet your clients’

needs. Support your recommendations with

FINRA-reviewed Investment DetailTM reports,

ready to print or e-mail as PDF documents.

Full-color graphs add instant clarity to

your research. And measures such as the

Morningstar RatingTM and the Morningstar

Style BoxTM are recognized by millions of

investors and allow for straightforward

comparisons. Advanced modules feature

Morningstar analyst commentary for more

than 2,000 stocks and 5,600 mutual funds.

Integrated, In-Depth Portfolio Analysis

Principia allows you to easily diagnose,

diversify, and track your clients’ portfolios.

By combining multiple Principia modules you

can examine holdings at the individual security

level, based on the underlying holdings of

each managed product within a portfolio.

Custom benchmarks serve as precise

yardsticks for assessing your clients’ portfolios

and Principia’s Portfolio Alerts reduce the time

spent monitoring portfolios and give you early

warning of potential problems. Just specify

the statistics you wish to track and Principia

will notify you of changes with each update.

Informative Reports

Principia makes it easy to create insightful,

informative reports for your clients and

prospects. The FINRA-reviewed Portfolio

SnapshotTM report provides a complete and

visually compelling representation of portfolio

style, performance, and composition. The

Portfolio Comparison report enables the

side-by-side comparison of two portfolios and

is especially effective in demonstrating to

clients the differences between current and

proposed portfolios. The Stock Intersection

and Correlation Matrix reports help you

uncover sector and style redundancies, as well

as overweightings in individual securities.

Specialized Modules for Sales

and Planning

With Principia’s Asset Allocation module,

you can determine the asset mix most likely

to achieve the highest return for a given risk

level and use that information to build more

appropriate portfolios. Assess the best

investment choices available for clients by

performing in-depth portfolio comparisons.

Efficient frontier graphing and Monte Carlo

wealth forecasting help create individualized

asset allocation strategies.

Principia® Presentations & Education is a

collection of communication resources that

can support you during a wide range of client

interactions. The module features more than

250 customizable PowerPoint® slides

and 11 ready-to-distribute brochures for use

with clients or group seminars.

The Defined Contributions Plans module

allows you to create Investment Policy

Statements, select optimal plan options, and

monitor plan line-ups. Use it to demonstrate

your proposed plan’s superiority in option

quality, diversification, and expenses.

Principia’s Hypotheticals module illustrates

how your recommendations would have

performed over time. Hypotheticals can

be quickly constructed using an intuitive

wizard, with customization options for cash

flows, fee adjustments, taxes, and ongoing

portfolio rebalancing.

Principia® ModulesMutual FundsMutual Funds Advanced* (includes analyst reports)StocksStocks Advanced* (includes analyst reports)Variable Annuities/Life SubaccountsVariable Annuities/Life Subaccounts Advanced*Exchange-Traded Funds*Closed-End Funds*Separately Managed Accounts*Hypotheticals*Defined Contribution PlansAsset AllocationPresentations & Education* *These modules are included in the Principia Suite

Research CapabilitiesInvestment screening and ranking toolsSaved lists and searchesCustom layout and sortingComplete fund holdingsRank by stock or bondMorningstar Analyst ReportsInvestment DetailTM ReportsInvestment Comparison ReportsCustomizable color graphsExport to Excel®

Portfolio Management CapabilitiesMorningstar Portfolio SnapshotTM ReportMorningstar Portfolio Comparison ReportStock IntersectionSM ReportImporting capabilities from popular portfolio management systemsBlended custom benchmarksClient, portfolio, and holdings alertsCustomizable color graphs

Asset Allocation FeaturesFlexible capital market assumptionsCustom asset classesEfficient frontier modelingMonte Carlo simulationDetailed Asset Allocation Report

Defined Contribution PlansLineup diversification and performance analysisPlan and fund level expense analysisTriggered Alerts ReportSingle Plan ReportPlan Comparison ReportInvestment Policy Statement

Client Support ServicesFree product and technical supportFree video product tutorialsWeb, classroom, and custom training

Research View. For each investment universe, you can review individual data points such as style, portfolio statistics, risk and return, and operations information. All investment universes are conveniently accessible in the Research View.

Search Criteria. Perform intensive searches and screens to determine the most suitable securities for their clients’ portfolios. All searches can be saved for easy retrieval.

Risk Assessment Tool. The Risk Assessment tool can help you determine risk-appropriate asset mixes and present portfolio and market risks.

Included in the Principia Suite

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Portfolio Reports

Portfolio Snapshot. This FINRA reviewed report provides an in-depth synopsis of the client’s portfolio, including essential details for asset class and investment style breakdowns, performance information, and top holdings.

Asset Allocation Report. Efficient frontier modeling helps you determine the optimal portfolio for any given risk level.

Defined Contribution Plan Report. A snapshot view of a plan lineup with performance and portfolio details.

Hypothetical Portfolio Illustration. Shows how an entire portfolio would have performed based on your specific inputs.

Defined Contribution Plan Comparison Report. A side-by-side evaluation of two retirement plans, with detailed comparison information.

Portfolio Comparison Report. A side-by-side analysis of a client’s current asset class mix and target asset class mix.

Research Reports

Investment Detail. Available for all security types. Highlights key performance and operations information.

Stock Analyst Report. Provides an independent look at more than 2,000 stocks. Includes proprietary measures like the Morningstar Fair Value Estimate.

Morningstar Mutual Fund Page. Full-page reports provide performance information going back 12 years, top portfolio holdings, and Morningstar analysis.

Investment Comparison Report. Available in the ETF module. Provides a side-by-side comparison of up to four comparable managed products.

Fund vs. Fund. Provides an easy comparison of any two mutual funds and is a persuasive tool when recommending portfolio changes or improvements.

Graphs

Presentations & Education

Principia Presentations & Education. This communication library features 20 Microsoft® PowerPoint® presentations, with more than 250 slides, along with 11 ready-to-distribute brochures.

Defined Contribution Style Drift. Analyze a plan’s style drift at a glance.

Investment Growth. Displays as many as 10 securities for up to 15 years of performance history.

Asset Allocation Wealth Graph. Shows how a portfolio based on the target allocation would perform.

Free In-House Support, Six Days a Week

Principia is fully supported by highly-trained

Morningstar staff—your call is never

outsourced. Call or e-mail with questions

regarding your subscription, to request

technical assistance, or for suggestions

on how to use and interpret Morningstar

data. Support is available from Monday to

Saturday, except for market holidays.

Extensive Training Available

Morningstar also offers multiple training

opportunities to help you get the most

from your Principia subscription.

World Class Support Services and Training

Try Principia Risk Free

Join the thousands of advisors who rely on

Principia to meet the challenges of building

a successful business. You can depend

on the name that’s set the industry standard

for powerful, insightful, easy-to-use

software—Morningstar Principia.

Call:866 215-2511

Principia’s 30-day, money-back guarantee

means you can find out if it’s right for your

practice—at no risk to you.

E-mail:sales@morningstar.com

To see product tutorials and sample Principia

reports, get online product updates, or sign up

for training sessions, visit:

global.morningstar.com/principia

22 West Washington StreetChicagoIllinois 60602 USA

+1 866-215-2511global.morningstar.com

Virtual Training Center

A library of video tutorials, printable

manuals and other training resources

are available 24 hours a day, free of cost.

They cover topics ranging from finding

investments to using alerts to monitor

portfolio and investment changes.

Live Web Training

Our online training is ideal for those who

have limited time, need a more basic

overview of Principia, or find it difficult to

travel to our classroom courses. Sessions

are offered several times each month.

Classroom Training

Principia Training sessions are held in

cities around the country. Classes combine

instructor-led demonstrations with hands-on

exercises. They are a great way to learn

basic functions or expand your Principia skills.

Custom Training

With Custom Training, experienced Principia

consultants will work with your organization

to design a personalized training program

that meets your specific needs.