MORN Morningstar Inc

Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, today announced Morningstar Medalist Ratings™ for 59 of the nation’s most prominent 529 college-savings plans. These plans account for more than 95% of 529 industry assets as of Aug. 31, 2024. The Medalist Ratings reflect Morningstar manager research analysts’ forward-looking views of which plans are best suited to help investors reach their goals. It has five tiers—Gold, Silver, Bronze, Neutral, and Negative. This year, Morningstar analysts assigned five Gold ratings, 14 Silver ratings, 13 Bronze ratings, 21 Neutral ratings, and six Negative ratings to the 529 plans.

"Our 2024 assessment of 529 education savings plans highlights significant strides in investment quality and state stewardship, with more than half of evaluated plans receiving a Bronze rating or better," said Hyunmin Kim, manager research analyst at Morningstar. "The evaluation process focuses on the importance of well-constructed portfolios, effective oversight, and seasoned management, and we're committed to helping savers determine the best plan options to help fund their education."

A full list of Morningstar’s 529 ratings and key insights is available in a Fund Spy article published today on Morningstar.com. The 2024 ratings reflect Morningstar’s updated methodology for evaluating 529 education savings plans. The updated framework increases the emphasis on the Process and Parent pillars. Plan fees, now evaluated using a modified z-score, have a varying impact on the overall rating.

In this year’s assessment, Morningstar analysts upgraded 11 plans and downgraded nine. Five plans are new to coverage from the 2023 ratings. The table below shows these changes.

Upgrades (Distribution Channel)

State

Current Morningstar Medalist Rating

Previous Morningstar Medalist Rating

T. Rowe Price College Savings Plan (Direct)

AK

Gold

Silver

Bright Start Direct-Sold College Savings (Direct)

IL

Gold

Silver

U. Fund College Investing Plan (Direct)

MA

Gold

Silver

ScholarShare College Savings Plan (Direct)

CA

Silver

Bronze

CHET Direct College Savings Plan (Direct)

CT

Silver

Bronze

NextGen College Investing Plan Direct (Direct)

ME

Silver

Bronze

UNIQUE College Investing Plan (Direct)

NH

Silver

Bronze

BlackRock CollegeAdvantage 529 Plan (Advisor)

OH

Silver

Bronze

Indiana529 Direct Savings Plan (Direct)

IN

Bronze

Neutral

Bloomwell 529 Education Savings Plan (Direct)

NE

Bronze

Neutral

Franklin Templeton 529 College Savings Plan (Advisor)

NJ

Neutral

Negative

 

 

 

 

Downgrades (Distribution Channel)

State

Current Morningstar Medalist Rating

Previous Morningstar Medalist Rating

The Vanguard 529 College Savings Plan (Direct)

NV

Bronze

Silver

Invest529 (Direct)

VA

Bronze

Silver

Edvest 529 Plan (Direct)

WI

Bronze

Silver

CollegeCounts 529 Fund Direct-Sold Plan (Direct)

AL

Neutral

Bronze

CollegeInvest Direct Portfolio College Savings Plan (Direct)

CO

Neutral

Bronze

Bright Directions Advisor-Guided 529 College Savings Plan (Advisor)

IL

Neutral

Bronze

National College Savings Program (Direct)

NC

Neutral

Bronze

Future Scholar 529 (Direct)

SC

Neutral

Bronze

Future Scholar 529 (Advisor)

SC

Negative

Neutral

 

 

 

 

New to Coverage (Distribution Channel)

State

Morningstar Medalist Rating

Previous Morningstar Medalist Rating

DC College Savings Plan (Direct)

DC

Bronze

 

Scholars Choice Education Savings Plan (Advisor)

CO

Neutral

 

The Louisiana START Saving for College (Direct)

LA

Neutral

 

MFS 529 Savings Plan (Advisor)

OR

Neutral

 

USAA 529 Education Savings Plan (Direct)

NV

Negative

 

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 insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. 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 $328 billion in AUMA as of Sept. 30, 2024. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X (formerly known as Twitter) @MorningstarInc.

Morningstar’s Manager Research Group

Morningstar’s Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Morningstar Manager Research provides independent, fundamental analysis on managed investment strategies. Morningstar views are expressed in the form of Morningstar Medalist Ratings, which are derived through research of three key pillars—People, Process, and Parent. The Morningstar Medalist Rating is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. A global research team issues detailed research reports on strategies that span vehicle, asset class, and geography.

Medalist Ratings are not statements of fact, nor are they credit or risk ratings, and should not be used as the sole basis for investment decisions. A Medalist Rating is not intended to be nor is a guarantee of future performance. 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.

©2024 Morningstar, Inc. All Rights Reserved.

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Morningstar Media Contact: Michael Claussen, +1 312 696-6037 or newsroom@morningstar.com