CHICAGO, July 9, 2019 /PRNewswire/ -- Morningstar,
Inc. (Nasdaq: MORN), a leading provider of independent investment
research, has published a summary of Morningstar Analyst Rating™
activity for 155 U.S. strategies that occurred in June 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 June 2019, Morningstar's
manager research group assigned new ratings to 28 U.S. strategies
and affirmed 105 strategies. Five strategies were upgraded, eight
were downgraded, and eight were placed under review.
"In June we upgraded Dodge & Cox Global Bond's Morningstar
Analyst Rating to Silver from Bronze, due to its higher confidence
level in the team's foreign-exchange capabilities," said
Laura Pavlenko Lutton, Morningstar's
North American practice leader, manager research. "On the flip
side, we downgraded Vulcan Value Partners to Neutral from Bronze,
since the fund hasn't been effective enough in its execution.
Manager C.T. Fitzpatrick looks for
companies with competitive advantages that allow them to earn
high—and increasing—returns on capital, but this prudent approach
hasn't led to benchmark-beating results."
The following Analyst Rating changes occurred in June 2019:
|
Vehicle
Type
|
Previous
Morningstar Analyst
Rating
|
Current
Morningstar Analyst
Rating
|
New
Ratings
|
|
|
|
Brandes Emerging
Markets Value
|
Mutual
Fund
|
None
|
Silver
|
Fidelity Corporate
Bond
|
ETF
|
None
|
Neutral
|
First Trust Emerging
Markets Local Currency Bond
|
ETF
|
None
|
Negative
|
First Trust
Institutional Preferred Securities and Income
|
ETF
|
None
|
Neutral
|
First Trust Preferred
Securities & Income
|
ETF
|
None
|
Neutral
|
First Trust Senior
Loan
|
ETF
|
None
|
Neutral
|
First Trust SSI
Strategic Convertible Securities
|
ETF
|
None
|
Neutral
|
First Trust Tactical
High Yield
|
ETF
|
None
|
Neutral
|
Goldman Sachs GQG
Partners International Opportunities
|
Mutual
Fund
|
None
|
Silver
|
Hartford Municipal
Opportunities ETF
|
Mutual
Fund
|
None
|
Neutral
|
Invesco Oppenheimer
Portfolio Series: Active Allocation
|
Mutual
Fund
|
None
|
Neutral
|
Invesco Oppenheimer
Portfolio Series: Conservative Investor
|
Mutual
Fund
|
None
|
Neutral
|
Invesco Oppenheimer
Portfolio Series: Growth Investor
|
Mutual
Fund
|
None
|
Neutral
|
Invesco Oppenheimer
Portfolio Series: Moderate Investor
|
Mutual
Fund
|
None
|
Neutral
|
JPMorgan Global Bond
Opportunities
|
ETF
|
None
|
Neutral
|
Manning & Napier
Pro-Mix
|
CIT
|
None
|
Bronze
|
Morgan Stanley
Institutional Fund
|
Mutual
Fund
|
None
|
Bronze
|
Principal Active
Income
|
ETF
|
None
|
Neutral
|
Principal Investment
Grade Corporate Active
|
ETF
|
None
|
Neutral
|
Prudential Core Plus
Bond
|
CIT
|
None
|
Silver
|
SPDR SSgA Income
Allocation
|
ETF
|
None
|
Neutral
|
SPDR SSgA Ultra Short
Term Bond
|
ETF
|
None
|
Neutral
|
T. Rowe Price Growth
Stock
|
CIT
|
None
|
Bronze
|
T. Rowe Price
Institutional Frontier Markets Equity
|
Mutual
Fund
|
None
|
Bronze
|
T. Rowe Price QM US
Small & Mid-Cap Core Equity
|
Mutual
Fund
|
None
|
Silver
|
T. Rowe Price U.S. SC
Value Equity
|
CIT
|
None
|
Bronze
|
Wells Fargo Enhanced
Stock Market
|
CIT
|
None
|
Neutral
|
WisdomTree Emerging
Markets Local Debt
|
ETF
|
None
|
Neutral
|
|
|
|
|
Upgrades
|
|
|
|
BlackRock Emerging
Markets
|
Mutual
Fund
|
Neutral
|
Bronze
|
BlackRock Global
Long/Short Equity
|
Mutual
Fund
|
Bronze
|
Silver
|
Dodge & Cox
Global Bond
|
Mutual
Fund
|
Bronze
|
Silver
|
FlexShares iBoxx
3-Year Target Duration TIPS
|
ETF
|
Bronze
|
Silver
|
Wells Fargo Emerging
Markets Equity
|
Mutual
Fund
|
Neutral
|
Bronze
|
|
|
|
|
Downgrades
|
|
|
|
MainStay Floating
Rate
|
Mutual
Fund
|
Bronze
|
Neutral
|
PIMCO Emerging
Markets Currency and Short/Term Investments
|
Mutual
Fund
|
Bronze
|
Neutral
|
PIMCO Emerging
Markets Bond
|
Mutual
Fund
|
Bronze
|
Neutral
|
PIMCO Emerging
Markets Local Currency and Bond
|
Mutual
Fund
|
Bronze
|
Neutral
|
Templeton Global
Balanced
|
Mutual
Fund
|
Bronze
|
Neutral
|
USAA Growth and Tax
Strategy
|
Mutual
Fund
|
Bronze
|
Neutral
|
Vulcan Value
Partners
|
Mutual
Fund
|
Bronze
|
Neutral
|
Vulcan Value Partners
Large Cap Value
|
SMA
|
Bronze
|
Neutral
|
|
|
|
|
Under
Review
|
|
|
|
Fidelity New Markets
Income
|
Mutual
Fund
|
Silver
|
Under
Review
|
Invesco Oppenheimer
Capital Income
|
Mutual
Fund
|
Neutral
|
Under
Review
|
Invesco Oppenheimer
Global Allocation
|
Mutual
Fund
|
Neutral
|
Under
Review
|
Invesco Oppenheimer
Senior Floating Rate
|
Mutual
Fund
|
Neutral
|
Under
Review
|
JHancock Global
Absolute Return Strategies
|
Mutual
Fund
|
Neutral
|
Under
Review
|
USAA Tax Exempt
Intermediate-Term
|
Mutual
Fund
|
Neutral
|
Under
Review
|
USAA Tax Exempt
Short-Term
|
Mutual
Fund
|
Neutral
|
Under
Review
|
USAA VA
Bond
|
Mutual
Fund
|
Neutral
|
Under
Review
|
A list of the Analyst Ratings for 105 U.S. funds that
Morningstar affirmed in June is available here.
As of June 30, 2019, Morningstar
analysts had assigned a Morningstar Analyst Rating of Gold to 237
unique U.S. funds, a Silver rating to 432 funds, a Bronze rating to
622 funds, a Neutral rating to 751 funds, and a Negative rating to
35 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 $12.8 trillion of
U.S. investor assets, or approximately 70 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. Morningstar recently announced
it will enhance two of its forward-looking fund ratings systems,
the Morningstar Analyst Rating™ for funds (Analyst Rating) and the
Morningstar Quantitative Rating™ for funds (Quantitative Rating).
The enhanced ratings, which are based on an updated assessment
framework, will begin to take effect on Oct.
31, 2019. Read more in the press release issued on
July 8, 2019, available 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 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
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SOURCE Morningstar, Inc.