Morningstar Upgrades Analyst Rating for Two U.S. Funds; Downgrades Three Funds

Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 75 U.S. funds that occurred in June 2015. The Morningstar Analyst Rating for funds represents Morningstar’s conviction in the fund’s ability to outperform on a risk-adjusted basis over the long term. The five-tiered, qualitative Morningstar Analyst Rating scale has three positive levels, indicating Morningstar Medalists—Gold, Silver, and Bronze—in addition to Neutral and Negative ratings.

In June, Morningstar manager research analysts upgraded two U.S. fund ratings and downgraded ratings for three funds. In addition, analysts reaffirmed ratings for 66 funds and assigned four new ratings.

As of June 30, 2015, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 133 unique U.S. funds, a Silver rating to 277 funds, a Bronze rating to 339 funds, a Neutral rating to 289 funds, and a Negative rating to 38 funds. Morningstar Medalists currently account for approximately 10 percent of unique mutual funds available for sale in the United States and 58 percent of assets under management. Morningstar’s manager research analysts rate about $8 trillion of U.S. investor assets, or approximately 70 percent of total investor assets in the United States.

The following Morningstar Analyst Rating changes occurred in June 2015:

A list of the Analyst Ratings for 66 U.S. funds that Morningstar reaffirmed in June is available here.

A summary of last month’s Morningstar Analyst Rating changes for U.S. mutual funds is available on Morningstar.com in the latest Fund Spy: Medalist Edition here.

Morningstar launched its Analyst Rating for funds and Global Fund Reports in November 2011. Morningstar Medalists—Gold-, Silver-, and Bronze-rated funds—are funds that analysts determine are likely to outperform their peer groups and/or relevant benchmarks on a risk-adjusted basis over a market cycle of at least five years. The differences between the positive ratings indicate the level of the analyst’s conviction in a fund’s future performance. Analysts arrive at a rating through an evaluation of five key pillars: People, Process, Parent, Performance, and Price. The Analyst Rating methodology is available here.

To view a complete list and supporting analysis for Analyst Ratings for U.S. funds, please visit www.morningstar.com. Premium Members have access to a Morningstar Medalists screener, where users can sort funds by Morningstar Rating, Morningstar Analyst Rating, Fund Family, Manager Tenure, Expense Ratio, and other metrics. Morningstar’s Global Fund Reports, in-depth research reports that include a wealth of data and analysis, are available in Morningstar Direct^SM, the company’s web-based global investment analysis platform for institutional investors, and in Morningstar Office^SM, a global practice and portfolio management solution for advisors.

Morningstar has more than 100 manager research analysts worldwide who cover approximately 4,100 funds. The company provides data on approximately 186,500 open-end mutual funds, 9,800 closed-end funds, and 11,300 exchange-traded product listings as of March 31, 2015.

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 15 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had more than $179 billion in assets under advisement and management as of March 31, 2015. The company has operations in 27 countries.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts’ current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness. This press release is for informational purposes only; it should not be considered an offer or solicitation to buy or sell the mutual funds noted within. 

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