Just what goes into the Morningstar analyst rating of a fund?

The research firm gives some insights into this process in an article dubbed Our Mostly Patient Approach to Analyst Ratings.

In the article, director of mutual fund research Russel Kinnel drills down on the firm's thinking in relation to six fund ratings.

The fund ratings in question include:

1. The Neutral rating of the  T. Rowe Price Health Sciences fund
2. The Gold rating of the Harbor Bond fund
3. The Negative rating of the Templeton Developing Markets fund
4. The Silver rating of the FPA Capital fund
5. The Gold rating of the  Primecap Odyssey Aggressive Growth
6.The Bronze rating of theCalamos Convertible fund

The "patient" part of the Morningstar ratings for most of these funds involves the ups and downs many of the ratings took due to various changes that led to downgrades, upgrades and sometimes downgrades followed by upgrades. For some, it was a matter of Morningstar stick to its guns.

For more on the twists and turns of these ratings, go to the Morningstar article. 

Edited by: Tommy Fernandez


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE