Funds reviewed by Morningstar had a tough June. The research group downgraded ratings for four funds, affirmed ratings for 74 funds and one target date series, and placed one target date series under review.
No upgrades were given, though Morningstar did assigned new ratings to 83 funds. Information on its latest research, which included a look at 161 U.S. mutual funds and exchange-traded funds and two target-date series is available online.
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.
Overall, 142 U.S. funds have a rating of Gold, 324 have Silver, 553 have Bronze, 574 have Neutral, and an unlucky 13 have Negative ratings.
The medalist-rated funds, referred to as Morningstar Medalists, account for about 10% of funds sold in the U.S. and some 63% of assets under management. (Overall, the group’s analysts rate some $13 trillion, or roughly 72%, of U.S. investor assets.)
The June 2017 updates are as follows:
- Artisan International Small Cap: Silver (from Gold)
- BlackRock Global Allocation: Silver (from Gold)
- Lord Abbett Developing Growth: Neutral (from Silver)
- Oppenheimer International Growth: Bronze (from Silver)
- American Century One Choice Target-Date Series
New Ratings (partial list)
- AB Intermediate Bond: Bronze
- AllianzGI Structured Return: Bronze
- Baron Emerging Markets: Bronze
- Columbia Floating Rate: Bronze
- Dodge and Cox Global Bond: Bronze
- Eaton Vance Floating-Rate and High Income: Bronze
- Fidelity Advisor Strategic Dividend and Income: Bronze
- Franklin Balanced: Bronze iShares Global 100 ETF: Bronze
- JPMorgan Growth and Income: Bronze
- Lazard US Equity Concentrated: Bronze
- LSV Value Equity: Silver
- Oppenheimer International Diversified: Bronze
- SPDR MSCI ACWI ex-US ETF: Bronze
- SPDR SandP World ex-US ETF: Bronze
- TCW Core Fixed Income: Bronze
- Templeton Emerging Markets Small Cap: Bronze
- Templeton Global Balanced: Bronze
- Tocqueville International Value: Bronze Voya Floating Rate: Bronze
- Wells Fargo Core Bond: Silver
- WisdomTree International Hedged Quality Dividend Growth ETF: Bronze
Morningstar launched its Analyst Rating for funds and Global Fund Reports in November 2011.
— Check out How ETFs and Indexing Took Over Active Management on ThinkAdvisor.