Morningstar’s manager research analysts assign Parent ratings to more than 100 of the 150 largest U.S. fund families. In the firm’s 2025 report, only 10 groups earn analysts’ greatest conviction and a high Parent rating. The Parent rating comprises 10% of each underlying fund’s Morningstar Medalist Rating.
Analysts consider various factors in their Parent assessments, including a firm’s ability to attract, develop and retain investment talent, its approach to succession planning, risk management and product development, and its fee philosophy.
Generally, firms with high Parent ratings have stable investment teams, as demonstrated by a high manager retention figure.
Firms’ success ratios consider both survivorship and performance, which have a larger effect on the figures for boutique firms. These focused outfits can experience significant changes in success rates between a five-year and a 10-year measurement period, as their funds’ performance tends to be highly correlated.
High-rated Parent firms also tend to offer investors a good deal overall, compared with the competition. Here, average peer group fee level considers both open-end mutual funds and ETFs, and differentiates between active and passive approaches as well as Morningstar categories. Lower numbers mean lower fees.
See the gallery for the 10 U.S. fund families that earned Morningstar’s High Parent rating. The firms are ordered by mutual fund and ETF assets under management.
Images: Chris Nicholls/Touchpoint Markets
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