EVANSVILLE, Ind.--(BUSINESS WIRE)--Donaldson Capital Management (DCM), an independently owned investment advisory and financial planning firm with more than $2.3B in assets under management, has received a five-star Overall Morningstar Rating™ for their Rising Dividend® Cornerstone® fund.
The Rising Dividend Cornerstone fund received a five-star Overall Morningstar Rating™ out of 466 funds in the Large Value Morningstar Category as of December 31, 2022.
"We are honored to continue to earn Morningstar’s highest overall rating from the first date we were eligible to do so,” says Kyle Markle, CFP®, Chief Investment Officer. “This is a testament to our Investment Policy Committee’s commitment to owning high-quality, well-positioned companies. While we are proud of Cornerstone’s track record, this achievement is really about our clients. This rating highlights the dedication to service shown by each team member at DCM, including the past and present members of our Investment Policy Committee.”
About the Rising Dividend Cornerstone Fund
Rising Dividend Cornerstone seeks to provide Security, Income, and Growth. Investing in high-quality, blue chip dividend paying stocks that consistently and persistently increase their dividends, the strategy seeks a current yield around 3%, with projected dividend growth around 8% annually. The Donaldson Investment Policy Committee aims to invest in stocks that have a statistically significant relationship between long-term dividend growth and price appreciation. At DCM, we like to say, “As goes the dividend, so goes the stock.”
More information is available at dcmol.com.
About Donaldson Capital Management
Donaldson Capital Management takes pride in celebrating 28 years dedicated to crafting exclusive investment strategies, coupled with thoughtful financial guidance for individuals, foundations, and retirement plans that require dependable and growing income.
The Morningstar Rating™ for funds, or “star rating”, is calculated for separate accounts with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/ 20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Fees for separate accounts can vary widely and are negotiated between the asset manager, the separate account program sponsor or advisor, and the investor. Morningstar has chosen to present gross-of-fees performance (before fees have been taken out) to compare separate accounts. Net-of-fees calculations often deduct the highest theoretical fees that an investor may pay.
Morningstar will not calculate ratings for categories or time periods that contain fewer than five separate accounts. Each investor in the same separate account can experience slightly different total returns because investors have different account preferences and restrictions. Therefore, to ensure that ratings are fairly assigned, Morningstar will calculate ratings for only those firms that report performance for “composites” of similarly managed portfolios according to the guidelines of the CFA Institute’s Global Investment Performance Standards (GIPS®).
Separate accounts that do not have ratings can be divided into two groups: those that do not qualify to be rated and those that did not participate. A separate account will not get a Morningstar Rating if: It is less than three years old, the firm is not GIPS-compliant, or the category contains fewer than five separate accounts that are eligible for a rating.
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