The new ratings and research offer forward-looking insight and assumptions into how a fund might behave under different market conditions and are based upon fundamental criteria, such as expenses, manager experience and investment approach.
Given the global financial climate, the need for investors and their advisers to have access to objective, unbiased research borne of a completely transparent process has never been greater, said Christopher Traulsen, director of research for Morningstar Europe and Asia. When others are cutting back their research, were ramping up our efforts, because we want to elevate the debate beyond good fund/bad fund and help investors maintain realistic performance expectations and manage their portfolios more wisely.
The rating system that Morningstar will apply to the funds, called Morningstar Qualitative Rating, ranges from Elite to Superior, Standard, Inferior or Impaired, based on a funds ability to outperform its peer group over the long term. Each rating will be accompanied by a detailed Morningstar Fund Research Report, written by analysts to address the funds investment process, portfolio positioning and investment advisor, including the funds performance and expenses.
