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Glossary

Track Record Extension

The performance history of a share class can start before the fund share class was actually launched. This happens when a new fund share class is launched, for example a 'clean' share class that excludes commissions, and it is believed that retail investors will benefit from understanding the performance history of the original share class. In such a case, the performance history of the new share class is extended further back in time by using the performance of one of the older share classes of that fund, or predecessor fund, with specific limitations on when and how an extension will be made. These extended performance track records serve as the basis for performance calculations and peer group comparisons. In all cases Morningstar will only allow a share class performance track record to be extended if there is significant continuity between the donor and recipient share classes, i.e. if the new share class closely accurately replicates the old share class. More information on Morningstar’s policy can be found here.