June 10, 2019

Morningstar Assigns New Analyst Ratings to Nine Strategies, Upgrades Eight, and Downgrades Six in May 2019

CHICAGO, June 10, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 161 U.S. strategies that occurred in May 2019. Strategies include all vehicles that Morningstar covers, including open-end mutual funds, exchange-traded funds (ETFs), separately managed accounts (SMAs), target-date series, and collective investment trusts (CITs). The Morningstar Analyst Rating represents Morningstar's conviction in the strategy'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 May 2019, Morningstar's manager research group assigned new ratings to nine U.S. strategies and affirmed 134 strategies. Eight strategies were upgraded, six were downgraded, and four were placed under review. 

"JPMorgan Equity Income is among the best of its kind, so we raised its rating to Gold from Silver," said Laura Pavlenko Lutton, Morningstar's North American practice leader, manager research. "Manager Clare Hart focuses on companies with at least 2% dividend yields while paying attention to future earnings growth. That means the portfolio mostly invests in durable franchises with high returns on capital. As a result, this fund's income doesn't usually top its peers, but it has made up for what it loses in yield with total returns. Hart also is careful with price risk, making the fund a strong contender in market turbulences."

The following Analyst Rating changes occurred in May 2019:


Vehicle Type

Previous
Morningstar

Analyst Rating

Current
Morningstar

Analyst Rating

New Ratings




CBRE Clarion Global Real Estate

SMA

None

Bronze

Fidelity International Capital Appreciation K6 Shares

Mutual Fund

None

Bronze

First Trust Enhanced Short Maturity

ETF

None

Neutral

First Trust Low Duration Opportunities

ETF

None

Neutral  

GQG Partners Emerging Markets Equity

Mutual Fund

None

Silver

Invesco Total Return Bond

ETF

None

Bronze

Invesco Ultra Short Duration

ETF

None

Neutral

Invesco Variable Rate Investment Grade

ETF

None

Neutral

T. Rowe Price Active Model Portfolio Target-Risk Series 

SMA

None

Bronze





Upgrades




Fidelity Advisor Growth Opportunities

Mutual Fund

Neutral

Bronze

JPMorgan Emerging Markets Equity

Mutual Fund

Bronze

Silver

JPMorgan Equity Income

Mutual Fund

Silver

Gold

MFS New Discovery

Mutual Fund

Neutral

Bronze

Principal Equity Income

Mutual Fund

Bronze

Silver

Principal Small-MidCap Dividend Income

Mutual Fund

Bronze

Silver

VanEck Emerging Markets

Mutual Fund

Neutral

Bronze

Voya Global Equity Dividend

Mutual Fund

Negative

Neutral





Downgrades




DFA US Micro Cap

Mutual Fund

Gold

Silver

DFA US Targeted Value

Mutual Fund

Gold

Silver

Franklin Managed Income

Mutual Fund

Bronze

Neutral

PGIM Short-Term Corporate Bond

Mutual Fund

Silver

Bronze

PIMCO All Asset

Mutual Fund

Gold

Silver

PIMCO All Asset All Authority

Mutual Fund

Bronze

Neutral





Under Review




Fidelity Advisor Emerging Asia

Mutual Fund

Bronze

Under Review

Fidelity Emerging Asia

Mutual Fund

Bronze

Under Review

Lord Abbett Multi-Asset Growth

Mutual Fund

Neutral

Under Review

T. Rowe Price International Value Equity

Mutual Fund

Neutral

Under Review

A list of the Analyst Ratings for 130 U.S. funds, three SMAs, and one target-date mutual-fund series that Morningstar affirmed in May is available here.  

As of May 31, 2019, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 168 unique U.S. funds, a Silver rating to 390 funds, a Bronze rating to 609 funds, a Neutral rating to 690 funds, and a Negative rating to 34 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 trillion of U.S. investor assets, or approximately 69 percent of total investor assets in the United States."

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. The Analyst Rating methodology for SMAs, CITs, and model portfolios is available here. In March, Morningstar began assigning its forward-looking Morningstar Analyst Ratings to SMA target-risk series that are representative of model portfolios.

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 130 manager research analysts worldwide. The company provides data on approximately 249,780 open-end mutual funds, 13,010 closed-end funds, and 16,720 exchange-traded product listings as of March 31, 2019.

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 $210 billion in assets under advisement and management as of March 31, 2019. The company has operations in 27 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.

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 a fund's or separately managed account's underlying securities' creditworthiness. This press release is for informational purposes only; references to securities or a separately managed account investment strategy in this press release should not be considered an offer or solicitation to buy or sell the securities or to invest in accordance with that strategy.

©2019 Morningstar, Inc. All rights reserved.

MORN-R

Media Contact:
Mary Kate Marchesi, +1 312 348-3180 or marykate.marchesi@morningstar.com
Sarah Wirth, +1 312 244-7358 or sarah.wirth@morningstar.com

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

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/morningstar-assigns-new-analyst-ratings-to-nine-strategies-upgrades-eight-and-downgrades-six-in-may-2019-300864860.html

SOURCE Morningstar, Inc.

Media Relations Contact

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

Resources

Legal Notices Privacy Policy Regulatory Disclosures Global Contacts