Morningstar changes its opinion from time to time. In a recent blog post, Russel Kinnel, the firm’s director of manager research, discussed five prominent fund upgrades.
Kinnel noted that Morningstar Analyst Ratings are fundamentally driven; researchers focus on a fund’s people, process, parent and price and then distill their findings into a fund’s rating.
Morningstar’s opinion can change based on repetition of the review process over several years, as well as on events such as changes to the performance profile and the four fundamentals.
Kinnel said ratings upgrades tend to be the result of subtle accumulation of favorable discoveries. In contrast, downgrades often come on the heels of more dramatic events such as portfolio blowups and manager departures.
See the gallery for five funds that received Morningstar upgrades.
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