Morningstar Rolls Out New Ratings System

November 5, 2019 by Janet Levaux

Four months after news broke that changes were coming, the Morningstar Analyst Rating system for funds is now in place with a new methodology.

The new system gives more weight to fees and sets the bar higher for active funds, while shifting how Morningstar assigns ratings to fund share classes to account for specific fees being levied on each share class. (See above chart.)

The changes, which had been in the works for some time, impact the gold, silver, bronze, neutral and negative ratings (rolled out in 2011) but not the star ratings.

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Originally Posted at ThinkAdvisor on November 5, 2019 by Janet Levaux.