Who’s Up, Who’s Down in Latest Morningstar Ratings

Funds with Medalist ratings account for just 13% of funds sold in the US but nearly 60% of assets under management

Morningstar reports new ratings each month. Morningstar reports new ratings each month.

Morningstar analysts have taken a fresh look at nearly 100 funds, giving just one an upgrade. They downgraded a handful of funds, while giving 19 new ratings.

According to the Chicago-based research group, the Morningstar Analyst Ratings represent analysts’ views that a fund can outperform its peers on a risk-adjusted basis over the long term. The five-tiered, qualitative scale has three positive levels — Gold, Silver and Bronze — as well as neutral and negative ratings.

--- Related: ‘Unloved’ Funds Investors Should Buy: Morningstar

To put the latest ratings adjustments into perspective, Morningstar analysts have given a Gold rating to 132 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.

The positive-rated funds, referred to as Morningstar Medalists, account for about 13% of funds sold in the U.S. and close to 60% of assets under management. (Overall, the group’s analysts rate more than $11 trillion of U.S. investor assets, or some 67% of U.S. investor assets.)

Recently, the research group gave four alternative funds a Bronze rating, noting that the ratings system is "not an easy bar to clear" when it comes to alternatives.

The January 2017 updates are as follows:

Upgrade

  • T. Rowe Price Institutional Large Cap Growth: Bronze (from Neutral)

Downgrades

  • AQR Managed Futures Strategy: Bronze (from Silver)
  • Gotham Absolut Return: Neutral (from Bronze)
  • LKCM Small Cap Equity: Bronze (from Silver)
  • Oppenheimer Equity Income: Neutral (from Bronze)
  • RiverPark/Wedgewood: Bronze (from Silver)
  • Royce Special Equity: Silver (from Gold)

 

New Ratings

  • AB Discovery Growth, Neutral
  • Consumer Staples Select Sector SPDR ETF, Neutral
  • Eagle Mid Cap Growth, Neutral
  • Fidelity Advisor Emerging Markets, Bronze
  • Goldman Sachs Multi-Manager Alternatives, Neutral
  • Industrial Select Sector SPDR ETF, Neutral
  • iShares Core Total USD Bond Market, Silver
  • iShares National Muni Bond, Bronze
  • iShares US Consumer Goods, Neutral
  • iShares US Industrials, Neutral
  • PowerShares Buyback Achievers ETF, Neutral
  • SPDR Nuveen Bloomberg Barclays Municipal Bond ETF, Bronze
  • SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF, Bronze
  • Technology Select Sector SPDRs ETF, Bronze
  • Touchstone Sustainability & Impact Equity, Neutral
  • Vanguard Consumer Staples ETF, Neutral
  • Vanguard Industrials ETF, Neutral
  • Vanguard Tax-Exempt Bond ETF, Silver
  • William Blair Macro Allocation, Bronze

--- Check out 16 Best Fund Managers of 2016: Morningstar on ThinkAdvisor.

Reprints Discuss this story
We welcome your thoughts. Please allow time for your contribution to be approved and posted. Thank you.

Related

Morgan Stanley to Pay $8M Over Inverse ETFs

SEC says the wirehouse failed to get signed disclosure statements from several hundred clients who bought the "typically unsuitable" products.

Most Recent Videos

Video Library ››