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Morningstar Analyst Rating for Funds™

What is the Morningstar Analyst Rating™ for funds?

The Morningstar Analyst Rating` for funds is a forward-looking, qualitative rating. It helps investors find funds most likely to outperform their peers over a full market cycle.

  • The Morningstar Analyst Rating for funds is a forward-looking, qualitative rating.
  • It measures how likely a fund will outperform its peers over a full market cycle.
  • The Morningstar Analyst Rating is based on three pillars: Process, People, and Parent.
  • Funds receive scores of High, Above Average, Average, Below Average, or Low depending on their performance for each pillar.

A fund that is most likely to outperform its peers receives an Morningstar Analyst Rating of Gold, followed by Silver, Bronze, Neutral, and Negative. Morningstar fund analysts assign Neutral or Negative ratings if they have little conviction in the fund’s ability to outperform.

The Morningstar Analyst Rating is based on three pillars: Process, People, and Parent. Funds receive scores of High, Above Average, Average, Below Average, or Low depending on their performance for each pillar.

Process refers to how managers execute their investment strategy. It also examines their investment research, decision-making, and loyalty to their strategy—especially when it’s out of favor. People refers to the individuals who manage the fund. Managers with long tenures, qualified analysts, relevant investment experience, and diligent succession planning receive a high rating. Parent refers to the asset manager that offers the fund. Asset managers with a winning investment culture, detailed preparation, and fundholder-friendly processes earn a high rating.