Morningstar Defensive Bond Fund Manager Performance Evaluation
| MSTBX Fund | USD 9.71 0.01 0.10% |
The fund secures a Beta (Market Risk) of -0.0011, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Morningstar Defensive are expected to decrease at a much lower rate. During the bear market, Morningstar Defensive is likely to outperform the market.
Risk-Adjusted Performance
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Over the last 90 days Morningstar Defensive Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Morningstar Defensive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
...more| Expense Ratio | 0.5100 |
Morningstar |
Morningstar Defensive Relative Risk vs. Return Landscape
If you would invest 971.00 in Morningstar Defensive Bond on August 26, 2024 and sell it today you would lose (1.00) from holding Morningstar Defensive Bond or give up 0.1% of portfolio value over 90 days. Morningstar Defensive Bond is currently producing negative expected returns and takes up 0.1288% volatility of returns over 90 trading days. Put another way, 1% of traded mutual funds are less volatile than Morningstar, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Morningstar Defensive Current Valuation
Fairly Valued
Today
Please note that Morningstar Defensive's price fluctuation is very steady at this time. At this time, the fund appears to be fairly valued. Morningstar Defensive secures a last-minute Real Value of $9.72 per share. The latest price of the fund is $9.71. We determine the value of Morningstar Defensive from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we recommend acquiring undervalued mutual funds and dropping overvalued mutual funds since, at some point, mutual fund prices and their ongoing real values will merge together.
Since Morningstar Defensive is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Morningstar Mutual Fund. However, Morningstar Defensive's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 9.71 | Real 9.72 | Hype 9.71 | Naive 9.71 |
The intrinsic value of Morningstar Defensive's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Morningstar Defensive's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Morningstar Defensive Bond helps investors to forecast how Morningstar mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Morningstar Defensive more accurately as focusing exclusively on Morningstar Defensive's fundamentals will not take into account other important factors: Morningstar Defensive Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Morningstar Defensive's investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as Morningstar Defensive Bond, and traders can use it to determine the average amount a Morningstar Defensive's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0117
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| Negative Returns | MSTBX |
Estimated Market Risk
| 0.13 actual daily | 1 99% of assets are more volatile |
Expected Return
| 0.0 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.01 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Morningstar Defensive is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Morningstar Defensive by adding Morningstar Defensive to a well-diversified portfolio.
Morningstar Defensive Fundamentals Growth
Morningstar Mutual Fund prices reflect investors' perceptions of the future prospects and financial health of Morningstar Defensive, and Morningstar Defensive fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Morningstar Mutual Fund performance.
| Total Asset | 205.67 M | ||||
About Morningstar Defensive Performance
Evaluating Morningstar Defensive's performance through its fundamental ratios, provides valuable insights into its operational efficiency and profitability. For instance, if Morningstar Defensive has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Morningstar Defensive has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements. Please also refer to our technical analysis and fundamental analysis pages.
The fund will normally invest at least 80 percent of its assets in a diversified portfolio of debt securities of varying maturity, duration, and quality. Under normal conditions, the advisor intends to pursue a defensive strategy of limiting its interest-rate sensitivity by maintaining a portfolio duration of three years or less. In most market environments, the fund will not invest more than 20 percent of assets in fixed-income securities that are rated below investment grade , or if unrated, are determined by the funds subadviser to be of comparable quality.Things to note about Morningstar Defensive performance evaluation
Checking the ongoing alerts about Morningstar Defensive for important developments is a great way to find new opportunities for your next move. Mutual Fund alerts and notifications screener for Morningstar Defensive help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Morningstar Defensive generated a negative expected return over the last 90 days | |
| The fund maintains about 13.08% of its assets in cash |
- Analyzing Morningstar Defensive's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Morningstar Defensive's stock is overvalued or undervalued compared to its peers.
- Examining Morningstar Defensive's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Morningstar Defensive's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Morningstar Defensive's management team can help you assess the Mutual Fund's leadership.
- Pay attention to analyst opinions and ratings of Morningstar Defensive's mutual fund. These opinions can provide insight into Morningstar Defensive's potential for growth and whether the stock is currently undervalued or overvalued.
Other Information on Investing in Morningstar Mutual Fund
Morningstar Defensive financial ratios help investors to determine whether Morningstar Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Morningstar with respect to the benefits of owning Morningstar Defensive security.
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