Morningstar is to adopt a new naming convention for the upcoming global analyst ratings launch, aiming to create a global standard for qualitative fund ratings.
The new rating scale will be “gold”, “silver”, “bronze”, “neutral” and “negative”.
Meanwhile, research and ratings methodology will remain the same. Both will still be based on analysts’ conviction about a fund’s ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis over the long term.
Morningstar will launch the new ratings globally in the fourth quarter of this year. Funds already rated by Old Broad Street Research, which was acquired by Morningstar last year, will get their new ratings in the first half of next year.
©2011 funds europe
