Bringing you live news and features since 2006 

Morningstar to enhance forward-looking fund ratings

RELATED TOPICS​

Morningstar, a provider of independent investment research, is to enhance two of its forward-looking fund ratings systems, the Morningstar Analyst Rating for funds (Analyst Rating) and the Morningstar Quantitative Rating for funds (Quantitative Rating). 

The enhanced ratings, which are based on an updated assessment framework, will begin to take effect on 31 October, 2019.

The Analyst Rating is Morningstar’s forward-looking, analyst-driven ratings system that takes the form of Gold, Silver, Bronze, Neutral, and Negative. While the overall ratings scale and where to access them remains unchanged, Morningstar will change the underlying methodology analysts follow, setting a higher bar for funds to earn a Gold, Silver, or Bronze rating and also doubling down on fees. The Analyst Ratings will also be tailored to individual fund share classes, taking fee differences into account. Morningstar will make accompanying updates to the Quantitative Rating, a companion forward-looking system that uses machine-learning techniques to assign ratings to funds not covered by a Morningstar analyst. Those updates will ensure the Quantitative Rating continues to strongly align with the Analyst Rating.

“We’ve been encouraged by the way investors have incorporated the Analyst Ratings and Quantitative Ratings into the research they conduct. We’re building on that acceptance and making the ratings more effective and useful to investors,” says Jeffrey Ptak, Morningstar’s head of global manager research. “Additionally, the enhanced framework sets a higher bar for strategies to earn a Gold, Silver, or Bronze rating, and we are placing a greater emphasis on the importance of fees.”

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by