Morningstar Upgrades Analyst Rating for One U.S. Fund

Chicago, IL - 13 February 2017

  • Downgrades Six Funds
  • Assigns New Ratings to 19 Funds in January​

Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 95 U.S. mutual funds and exchange-traded funds (ETFs) that occurred in January 2017. The Morningstar Analyst Rating for funds represents Morningstar's conviction in the fund's ability to outperform on a risk-adjusted basis over the long term. The five-tiered, qualitative Morningstar Analyst Rating scale has three positive levels, indicating Morningstar Medalists—Gold, Silver, and Bronze—in addition to Neutral and Negative ratings.

In January, Morningstar's Manager Research Group upgraded one U.S. fund and downgraded ratings for six funds. In addition, analysts affirmed ratings for 69 funds and assigned 19 new fund ratings.

As of Jan. 31, 2017, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 132 unique U.S. funds, a Silver rating to 297 funds, a Bronze rating to 479 funds, a Neutral rating to 394 funds, and a Negative rating to 10 funds. Morningstar Medalists currently account for approximately 13 percent of unique mutual funds available for sale in the United States and 59 percent of assets under management. Morningstar's manager research analysts rate more than $11 trillion of U.S. investor assets, or approximately 67 percent of total investor assets in the United States.

The following Morningstar Analyst Rating changes occurred in January 2017:

 

Previous Morningstar

Analyst Rating

Current Morningstar

Analyst Rating

Upgrade

  

T. Rowe Price Institutional Large Cap Growth

Neutral

Bronze

   

Downgrades

  

AQR Managed Futures Strategy HV

Silver

Bronze

Gotham Absolute Return

Bronze

Neutral

LKCM Small Cap Equity

Silver

Bronze

Oppenheimer Equity Income

Bronze

Neutral

RiverPark/Wedgewood

Silver

Bronze

Royce Special Equity

Gold

Silver

   

New Ratings

  

AB Discovery Growth

None

Neutral

Consumer Staples Select Sector SPDR ETF

None

Neutral

Eagle Mid Cap Growth

None

Neutral

Fidelity Advisor Emerging Markets

None

Bronze

Goldman Sachs Multi-Manager Alternatives

None

Neutral

Industrial Select Sector SPDR ETF

None

Neutral

iShares Core Total USD Bond Market

None

Silver

iShares National Muni Bond

None

Bronze

iShares US Consumer Goods

None

Neutral

iShares US Industrials

None

Neutral

PowerShares Buyback Achievers ETF

None

Neutral

SPDR Nuveen Bloomberg Barclays Municipal Bond ETF

None

Bronze

SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF

None

Bronze

Technology Select Sector SPDR ETF

None

Bronze

Touchstone Sustainability and Impact Equity

None

Neutral

Vanguard Consumer Staples ETF

None

Neutral

Vanguard Industrials ETF

None

Neutral

Vanguard Tax-Exempt Bond ETF

None

Silver

William Blair Macro Allocation   

None

Bronze

 

A list of the Analyst Ratings for 69 U.S. funds that Morningstar affirmed in January is available online.

A summary of last month's Morningstar Analyst Rating changes for U.S. funds is available on Morningstar.com in the latest Fund Spy: Medalist Edition.

Morningstar launched its Analyst Rating for funds and Global Fund Reports in November 2011. Morningstar Medalists—Gold-, Silver-, and Bronze-rated funds—are funds that analysts determine are likely to outperform their peer groups and/or relevant benchmarks on a risk-adjusted basis over a market cycle of at least five years. The differences between the positive ratings indicate the level of the analyst's conviction in a fund's future performance. Analysts arrive at a rating through an evaluation of five key pillars: People, Process, Parent, Performance, and Price. The Analyst Rating methodology for mutual funds is available online and for ETFs

To view a complete list and supporting analysis for Analyst Ratings for U.S. funds. Premium Members have access to a Morningstar Medalists screener, where users can sort funds by Morningstar Rating, Morningstar Analyst Rating, Fund Family, Manager Tenure, Expense Ratio, and other metrics. Morningstar's Global Fund Reports, in-depth research reports that include a wealth of data and analysis, are available in Morningstar DirectSM, the company's web-based global investment analysis platform for institutional investors, and in Morningstar OfficeSM, a global practice and portfolio management solution for advisors.

Morningstar has approximately 120 manager research analysts worldwide who cover approximately 3,860 funds. The company provides data on approximately 209,300 open-end mutual funds, 10,100 closed-end funds, and 13,900 exchange-traded product listings as of Sept. 30, 2016.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on nearly 540,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on approximately 18.5 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $200 billion in assets under advisement and management as of Sept. 30, 2016. The company has operations in 27 countries.