Morningstar Downgrades Analyst Rating for Two U.S. Funds; Affirms Ratings on 39 Funds in October

CHICAGO, Nov. 14, 2016 /PRNewswire/ -- Morningstar, Inc. MORN, a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 81 U.S. funds that occurred in October 2016. 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 October, Morningstar manager research analysts downgraded ratings for two U.S. funds. In addition, analysts affirmed ratings for 39 funds and assigned 40 new fund ratings.

As of Oct. 31, 2016, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 124 unique U.S. funds, a Silver rating to 238 funds, a Bronze rating to 431 funds, a Neutral rating to 339 funds, and a Negative rating to 10 funds. Morningstar Medalists currently account for approximately 10 percent of unique mutual funds available for sale in the United States and 60 percent of assets under management. Morningstar's manager research analysts rate more than $9.6 trillion of U.S. investor assets, or approximately 68 percent of total investor assets in the United States.

The following Morningstar Analyst Rating changes occurred in October 2016:

A list of the Analyst Ratings for 39 U.S. funds that Morningstar affirmed in October is available here.

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

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 is available here.

To view a complete list and supporting analysis for Analyst Ratings for U.S. funds, please visit www.morningstar.com. 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 Direct^SM, the company's web-based global investment analysis platform for institutional investors, and in Morningstar Office^SM, 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.

About Morningstar, Inc.
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.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts' current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a fund's or the fund's underlying securities' creditworthiness. This press release is for informational purposes only; it should not be considered an offer or solicitation to buy or sell the mutual funds noted within. 

©2016 Morningstar, Inc.  All rights reserved.

MORN-R

Media Contacts:
Mary Kenefake, +1 312 348-3089 or mary.kenefake@morningstar.com
Sarah Pellegrino, +1 312 244-7358 or sarah.pellegrino@morningstar.com

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SOURCE Morningstar, Inc.