's just landed some extra national exposure for its new, forward-looking, mutual fund rating system. On Saturday the New York Times
' Robert Hershey highlighted
Morningstar's new analyst ratings, comparing it to different systems from Standard & Poor's
The article offers an overview of all three systems.
emphasized the predictive nature of S&P's system and of Morningstar's analyst ratings, when compared with performance-centric systems like Morningstar's star ratings.
The S&P system draws on S&P's recommendations regarding the individual investments inside of a given mutual fund, recommendations based on S&P's expectations for an investment's returns over the next twelve months.
Meanwhile, the Morningstar analyst ratings come from five pillars, including backward-looking performance, as well as more forward-looking areas like people, process, parent and price.
Vanguard founder Jack Bogle
, Morningstar fund analysis director Karen Dolan
, and S&P's lead mutual fund ratings developer, Todd Rosenbluth
, all weighed in for the article.
Neil Anderson, Managing Editor
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