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Mary KenefakeMary.Kenefake@morningstar.com
Morningstar Upgrades Analyst Rating for One U.S. Fund; Downgrades Six Funds; Assigns New Ratings to 19 Funds in January

CHICAGO, Feb. 13, 2017—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) that occurred in January 2017. 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 January, Morningstar’s Manager Research Group upgraded one U.S. fund and downgraded ratings for six funds. In addition, analysts affirmed ratings for 69 funds and assigned 19 new fund ratings.

As of Jan. 31, 2017, Morningstar analysts had assigned a Morningstar Analyst Rating of Gold to 132 unique U.S. funds, a Silver rating to 297 funds, a Bronze rating to 479 funds, a Neutral rating to 394 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 $11 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 January 2017:

Fund / Previous Morningstar Analyst Rating / Current Morningstar Analyst Rating
Upgrade

T. Rowe Price Institutional Large Cap Growth / Neutral / Bronze

Downgrades
AQR Managed Futures Strategy HV / Silver / Bronze
Gotham Absolute Return / Bronze / Neutral
LKCM Small Cap Equity / Silver / Bronze
Oppenheimer Equity Income / Bronz / Neutral
RiverPark/Wedgewood / Silver / Bronze
Royce Special Equity / Gold / Silver

New Ratings
AB Discovery Growth / None / Neutral
Consumer Staples Select Sector SPDR ETF / None / Neutral
Eagle Mid Cap Growth / None / Neutral
Fidelity Advisor Emerging Markets / None / Bronze
Goldman Sachs Multi-Manager Alternatives / None / Neutral
Industrial Select Sector SPDR ETF / None / Neutral
iShares Core Total USD Bond Market / None / Silver
iShares National Muni Bond / None / Bronze
iShares US Consumer Good / None / Neutral
iShares US Industrials / None / Neutral
PowerShares Buyback Achievers ETF / None / Neutral
SPDR Nuveen Bloomberg Barclays Municipal Bond ETF / None / Bronze
SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF / None / Bronze
Technology Select Sector SPDR ETF / None / Bronze
Touchstone Sustainability and Impact Equity / None / Neutral
Vanguard Consumer Staples ETF / None / Neutral
Vanguard Industrials ETF / None / Neutral
Vanguard Tax-Exempt Bond ETF / None / Silver
William Blair Macro Allocation / None / Bronze

A list of the Analyst Ratings for 69 U.S. funds that Morningstar affirmed in January 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.

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.

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©2017 Morningstar, Inc. All rights reserved.

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