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Mary KenefakeMary.Kenefake@morningstar.com
Morningstar Upgrades Analyst Rating for One U.S. Fund; Downgrades Three Funds; Affirms Ratings on 59 Funds, Two Target-Date Series in November

CHICAGO, Dec. 12, 2016—Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 258 U.S. mutual funds and exchange-traded funds (ETFs) as well as two target-date series that occurred in November 2016. 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 November, Morningstar manager research analysts upgraded one U.S. fund and downgraded ratings for three funds. In addition, analysts affirmed ratings for 59 funds and two target-date series, assigned 194 new fund ratings, and placed one fund under review. Morningstar launched the Analyst Rating for ETFs during the month.

As of Nov. 30, 2016, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 132 unique U.S. funds, a Silver rating to 276 funds, a Bronze rating to 485 funds, a Neutral rating to 396 funds, and a Negative rating to 10 funds. Morningstar Medalists currently account for approximately 13 percent of unique mutual funds available for sale in the United States and 59 percent of assets under management. Morningstar’s manager research analysts rate more than $10 trillion of U.S. investor assets, or approximately 67 percent of total investor assets in the United States.

The following Morningstar Analyst Rating changes occurred in November 2016:
Fund / Previous Morningstar Analyst Rating / Current Morningstar Analyst Rating
Upgrade

T. Rowe Price International Growth and Income / Neutral / Bronze

Downgrades
Franklin Total Return Fund Advisor / Bronze / Neutral
MainStay MAP / Bronze / Neutral
Vanguard Developed Markets Index Fund Admiral / Gold / Silver

Under Review
Putnam Fund for Growth and Income / Neutral / Under Review

A list of the Analyst Ratings for 59 U.S. funds and two target-date series that Morningstar affirmed in November is available here. A list of the new Analyst Ratings for 194 U.S. funds that Morningstar assigned in November, which includes 89 mutual funds and 105 ETFs, 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 November 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 DirectSM, the company’s web-based global investment analysis platform for institutional investors, and in Morningstar OfficeSM, a global practice and portfolio management solution for advisors.

Morningstar has approximately 120 manager research analysts worldwide who cover approximately 3,860 funds. The company provides data on approximately 209,300 open-end mutual funds, 10,100 closed-end funds, and 13,900 exchange-traded product listings as of Sept. 30, 2016.

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, and retirement plan providers and sponsors. Morningstar provides data on nearly 540,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on approximately 18.5 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $200 billion in assets under advisement and management as of Sept. 30, 2016. The company has operations in 27 countries.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts’ current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be 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; it should not be considered an offer or solicitation to buy or sell the mutual funds noted within.

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©2016 Morningstar, Inc. All rights reserved.

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