Skip to Content
Fund Spy: Morningstar Medalist Edition

A Flurry of Ratings in January 2019

We delve into five of the 99 strategies that were rated last month.

Mentioned: , , , , ,

In January 2019, Morningstar manager research analysts affirmed the Morningstar Analyst Ratings of 72 funds and eight target-date series; upgraded the ratings of five funds and one target-date series; downgraded the ratings of five funds; placed four funds’ ratings under review; and assigned new ratings to four funds. Below are some of January’s highlights, followed by the full list of ratings changes.

Upgrades
American Funds SMALLCAP World (SMCWX) added more research capability recently to help manage its whopping $40 billion asset base, raising the strategy's Morningstar Analyst Rating to Silver from Bronze. Three equity divisions, which espouse similar long-term-oriented investment philosophies but do not share investment ideas, now manage this strategy compared with the two teams it had in the past. This addition enhances diversification and invites different managers and analysts to play to their strengths. The strategy’s affinity to growth stocks and emerging markets won’t always work to its advantage, but it has prevailed over the long haul: The strategy outperformed the MSCI All-Country World Small Index in four of the six full market cycles since its 1994 inception.

Shannon Yan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.