Recent Morningstar Analyst Rating Upgrades and Downgrades
A review of last month's ratings changes.
It's not unusual for Morningstar to drop a mutual fund's Analyst Rating to Neutral when it gets a new manager, especially if the change is abrupt or takes the portfolio in a new direction, or if the fresh leader lacks a long track record. How long does it take for the latest chiefs to prove themselves? It depends, but in the case of two recent ratings upgrades, three to five years of solid results helped. In this installment of Morningstar's regular look at ratings activity, we'll review those two examples as well as other changes from March.
T. Rowe Price Value (TRVLX) had been rated Neutral since 2011. At the time, Mark Finn had a short track record, having taken the fund over in 2010. Since then, he has consistently executed his relative-value process and has beaten peers and the S&P 500 Index during his tenure with a mix of out-of-favor and out-of-benchmark picks. The fund now gets a Bronze rating.
Dan Culloton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.