Morningstar Assigns New Analyst Ratings to Eight U.S. Funds; Upgrades Four Funds and One Target-Date Series; Downgrades Seven Funds in February 2018

CHICAGO, March 12, 2018 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 95 U.S. mutual funds and exchange-traded funds (ETFs) and four target-date series that occurred in February 2018. The Morningstar Analyst Rating for funds represents Morningstar's conviction in the fund'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 February, Morningstar's Manager Research Group assigned new ratings to eight funds. In addition, analysts upgraded ratings for four funds and one target-date series, downgraded ratings for seven funds, affirmed ratings for 75 funds and three target-date series, and placed one fund under review.

As of Feb. 28, 2018, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 155 unique U.S. funds, a Silver rating to 337 funds, a Bronze rating to 590 funds, a Neutral rating to 690 funds, and a Negative rating to 19 funds. Morningstar Medalists currently account for approximately 6 percent of unique mutual funds available for sale in the United States and 61 percent of assets under management. Morningstar's manager research analysts rate approximately $11.5 trillion of U.S. investor assets, or approximately 69 percent of total investor assets in the United States.

The following Morningstar Analyst Rating changes occurred in February 2018:

A list of the Analyst Ratings for 75 U.S. funds and three target-date series that Morningstar affirmed in February is available here.

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.

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 Direct^SM, the company's web-based global investment analysis platform for institutional investors, and in Morningstar Office^SM, a global practice and portfolio management solution for advisors.

Morningstar has approximately 120 manager research analysts worldwide who cover approximately 4,450 funds. The company provides data on approximately 228,400 open-end mutual funds, 10,700 closed-end funds, and 14,700 exchange-traded product listings as of Dec. 31, 2017.

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 $195 billion in assets under advisement and management as of Dec. 31, 2017. The company has operations in 27 countries.

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 the fund's underlying securities' creditworthiness. This press release is for informational purposes only; references to securities in this press release should not be considered an offer or solicitation to buy or sell the securities.

©2018 Morningstar, Inc. All rights reserved.

MORN-R

Media Contact:
Mary Kenefake, +1 312 348-3089 or mary.kenefake@morningstar.com

View original content with multimedia:http://www.prnewswire.com/news-releases/morningstar-assigns-new-analyst-ratings-to-eight-us-funds-upgrades-four-funds-and-one-target-date-series-downgrades-seven-funds-in-february-2018-300612448.html

SOURCE Morningstar, Inc.