What happens when a product uses derivatives to gain exposure to an asset class?
Some funds will use derivatives (for example, options, futures or swaps) to gain exposure to an asset class. When this happens, Morningstar’s “x-ray” data will report the holdings as the fund files them, and generally, derivatives will show up as Non-Classified. This may cause the asset allocation analysis information returned from Morningstar to incorrectly represent a portfolio’s actual exposure to an asset class. In order to address this problem, Raymond James may internally override some Morningstar product allocations to better represent the product’s asset allocation. Contact your financial advisor for specific internal classification information.
