July 13, 2018

Morningstar Assigns New Analyst Ratings to Seven U.S. Funds; Upgrades 10 Funds; Downgrades Two Funds in June 2018

CHICAGO, July 13, 2018 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 162 U.S. open-end mutual funds and exchange-traded funds (ETFs) that occurred in June 2018. 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's Manager Research Group assigned new ratings to seven funds, including one fund to Gold, T. Rowe Price Institutional Mid-Cap Equity Growth, which is a clone of Gold-rated T. Rowe Price Mid Growth. In addition, analysts upgraded ratings for 10 funds, downgraded ratings for two funds, affirmed ratings for 142 funds, and placed one fund under review.

"T. Rowe Price Institutional Mid-Cap Equity Growth excels on multiple fronts earning an inaugural rating of Gold. With one of the industry's longest-tenured managers at the helm, Brian Berghuis, the fund executes a valuation-conscious, quality-oriented growth strategy to find companies with a variety of expansion patterns," said Laura Pavlenko Lutton, Morningstar's director of manager research for North America. "The fund has held up better than the benchmark in market turbulence, but it has also enjoyed on the upside, thanks to good stock-picking. Low fees further cement this fund's edge."

As of June 30, 2018, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 159 unique U.S. funds, a Silver rating to 335 funds, a Bronze rating to 601 funds, a Neutral rating to 678 funds, and a Negative rating to 19 funds. Morningstar Medalists currently account for approximately six percent of unique mutual funds available for sale in the United States and 62 percent of assets under management. Morningstar's manager research analysts rate approximately $12.6 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 2018:


Previous Morningstar
Analyst Rating

Current Morningstar
Analyst Rating

New Ratings



Goldman Sachs ActiveBeta International Equity ETF

None

Bronze

Harbor Strategic Growth Institutional

None

Bronze

Hartford Schroders US Small/Mid-Cap Opportunities

None

Silver

Hartford Schroders US Small Cap Opportunities

None

Silver

iShares Edge MSCI Multifactor Emerging Markets ETF

None

Neutral

T. Rowe Price Institutional Mid-Cap Equity Growth

None

Gold

T. Rowe Price Latin America

None

Bronze




Upgrades



Diamond Hill Corporate Credit

Neutral

Bronze

Ivy International Core Equity

Neutral

Bronze

JPMorgan Growth And Income

Bronze

Silver

MainStay Floating Rate

Neutral

Bronze

Metropolitan West Low Duration Bond

Neutral

Bronze

PGIM Short-Term Corporate Bond

Bronze

Silver

T. Rowe Price Institutional International Core Equity

Bronze

Silver

T. Rowe Price Overseas Stock

Bronze

Silver

Vanguard Global Equity

Bronze

Silver

Vanguard Morgan Growth

Neutral

Bronze




Downgrades



DFA US Small Cap Value

Gold

Silver

VY Oppenheimer Global

Silver

Neutral




Under Review



Fidelity Advisor Small Cap

Bronze

Under Review

A list of the Analyst Ratings for 142 U.S. funds that Morningstar affirmed in June is available here.  

A summary of last month's Morningstar Analyst Rating changes for U.S. 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 December 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 for mutual funds is available here and for ETFs 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 DirectSM, the company's web-based global investment analysis platform for institutional investors, and in Morningstar OfficeSM, a global practice and portfolio management solution for advisors.

Morningstar has approximately 120 manager research analysts worldwide who cover approximately 4,500 funds. The company provides data on approximately 233,200 open-end mutual funds, 11,100 closed-end funds, and 15,000 exchange-traded product listings as of March 31, 2018.

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, retirement plan providers and sponsors, and institutional investors in the private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $201 billion in assets under advisement and management as of March 31, 2018. The company has operations in 27 countries.

Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar's Manager Research Group's current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not 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; references to securities in this press release should not be considered an offer or solicitation to buy or sell the securities.

©2018 Morningstar, Inc. All rights reserved.

MORN-R

Media Contact:
Sarah Wirth, +1 312 244-7358 or sarah.wirth@morningstar.com

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