34 plans received Morningstar Medalist distinction in the form of Gold, Silver, or Bronze
CHICAGO, Nov. 2, 2022 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced Morningstar Analyst RatingsTM for 54 of the nation's largest 529 college-savings plans, which represent approximately 93% of the more than $386 billion in 529 plan assets as of Aug. 31, 2022. The qualitative Analyst Rating has five tiers—Gold, Silver, Bronze, Neutral, and Negative. This year, Morningstar manager research analysts awarded two Gold ratings, 12 Silver ratings, 20 Bronze ratings, 16 Neutral ratings, and four Negative ratings to 529 plans.
"A higher standard has developed in the 529 industry as more plans adopt smoother glidepaths, trim fees, and implement robust processes for selecting underlying holdings," said Patricia Oey, senior manager research analyst at Morningstar. "Still, some plans have fallen behind as they continue to use riskier structures with steep transitions from stocks to bonds near enrollment or offer overly conservative glidepaths in which investors are less likely to keep pace with the rising costs of higher education. Notably, our assessment saw Vanguard-managed plans that employ an age-based structure receive a Process rating downgrade as they feature these less attractive traits."
A full list of Morningstar's 529 ratings and key insights is available in a Fund Spy article published today on Morningstar.com.
In this year's assessment, Morningstar analysts upgraded six plans and downgraded two plans. The table below shows these changes.
|
Upgrades
(Distribution Channel)
|
State
|
Current Morningstar
Analyst Rating
|
Previous Morningstar
Analyst Rating
|
|
Edvest College Savings Plan (Direct)
|
WI
|
Silver
|
Bronze
|
|
College Savings Iowa 529 Plan (Direct)
|
IA
|
Bronze
|
Neutral
|
|
Bright Directions Advisor-Guided
529 College Savings Program (Advisor)
|
IL
|
Bronze
|
Neutral
|
|
CollegeChoice 529 Direct Savings Plan (Direct)
|
IN
|
Bronze
|
Neutral
|
|
Bloomwell 529 Education Savings Plan (Direct)
|
NE
|
Bronze
|
Neutral
|
|
Scholar's Edge (Advisor)
|
NM
|
Neutral
|
Negative
|
|
|
|
|
|
Downgrades
(Distribution Channel)
|
State
|
Current Morningstar
Analyst Rating
|
Previous Morningstar
Analyst Rating
|
|
Bright Start Direct-Sold College
Savings Program (Direct)
|
IL
|
Silver
|
Gold
|
|
New York's 529 College Savings Program (Direct)
|
NY
|
Bronze
|
Silver
|
For more information on 529 college-savings plans – including use cases and tips for selecting a plan – visit Morningstar's 529 Plan Guide on Morningstar.com.
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 owners, retirement plan providers and sponsors, and institutional investors in the debt and 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, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $239 billion in assets under advisement and management as of September 30, 2022. The Company has operations in 29 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. Morningstar's Manager Research Group produces various ratings including the Morningstar Analyst Rating and the Morningstar Quantitative Rating. The Morningstar Analyst Rating is derived from a qualitative assessment process performed by a manager research analyst, whereas the Morningstar Quantitative Rating uses a machine-learning model based on the decision-making processes of Morningstar's analysts, their past ratings decisions, and the data used to support those decisions. In both cases, the ratings are forward-looking assessments and include assumptions of future events, which may or may not occur or may differ significantly from what was assumed. The Morningstar Analyst Ratings and Morningstar Quantitative Ratings are statements of opinions, subject to change, are not to be considered as guarantees, and should not be used as the sole basis for investment decisions. This press release is for informational purposes only; references to securities should not be considered an offer or solicitation to buy or sell the securities.
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