August 13, 2018

Morningstar Assigns New Analyst Ratings to Six U.S. Funds; Upgrades Five Funds; Downgrades Eight Funds in July 2018

CHICAGO, Aug. 13, 2018 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 151 U.S. open-end mutual funds and exchange-traded funds (ETFs) that occurred in July 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 July, Morningstar's Manager Research Group assigned new ratings to six funds, including one fund with an inaugural rating of Gold, PGIM High Yield. In addition, analysts upgraded ratings for five funds, downgraded ratings for eight funds, affirmed ratings for 129 funds, and placed three funds under review.

"PGIM High Yield earned an inaugural rating of Gold this month, due to its expansive and experienced team, robust process, and modest price tag. Backed by a deep bench of 42 credit analysts and two dedicated traders, the portfolio team has a history of managing insurance assets, helping to focus the group on a long-term outlook, which is reflected in the fund's investment process," said Laura Pavlenko Lutton, Morningstar's director of manager research for North America.

As of July 31, 2018, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 160 unique U.S. funds, a Silver rating to 337 funds, a Bronze rating to 588 funds, a Neutral rating to 674 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 $13.1 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 July 2018:


Previous
Morningstar

Analyst Rating

Current
Morningstar

Analyst Rating

New Ratings



PGIM High Yield

None

Gold

Fidelity Diversified International K6

None

Bronze

LSV Small Cap Value

None

Silver

Fidelity Small Cap Stock K6

None

Neutral

PGIM QMA Mid-Cap Value

None

Neutral

VY Invesco Comstock

None

Bronze




Upgrades



Federated Total Return Bond

Bronze

Silver

Eaton Vance Emerging Markets Local

Neutral

Bronze

American Century Large Company Value

Neutral

Bronze

BlackRock Mid-Cap Growth Equity

Bronze

Silver

iShares Floating Rate Bond ETF

Neutral

Bronze




Downgrades



Fidelity Advisor Small Cap

Bronze

Neutral

T. Rowe Price International Value

Bronze

Neutral

Fidelity Select Technology

Bronze

Neutral

Westwood Income Opportunity

Bronze

Neutral

Fidelity Advisor Technology

Bronze

Neutral

Fidelity Puritan

Silver

Neutral

USAA Tax Exempt Intermediate-Term

Bronze

Neutral

iShares 0-5 Year High Yield Corporate Bond ETF

Bronze

Neutral




Under Review



Ivy Large Cap Growth

Neutral

Under Review

Ivy Small Cap Growth

Neutral

Under Review

Ivy Small Cap Core

Neutral

Under Review

A list of the Analyst Ratings for 129 U.S. funds that Morningstar affirmed in July 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 124 manager research analysts worldwide who cover approximately 4,350 funds. The company provides data on approximately 235,590 open-end mutual funds, 10,880 closed-end funds, and 15,170 exchange-traded product listings as of June 30, 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 $203 billion in assets under advisement and management as of June 30, 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

Morningstar logo (PRNewsFoto/Morningstar Research Inc.) (PRNewsfoto/Morningstar, Inc.)

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/morningstar-assigns-new-analyst-ratings-to-six-us-funds-upgrades-five-funds-downgrades-eight-funds-in-july-2018-300696050.html

SOURCE Morningstar, Inc.

Media Relations Contact

Media Hotline +1 312 696-6037
newsroom@morningstar.com

Resources

Legal Notices Global Contacts Go To Old Site ›