Top Rated Funds Deliver Superior Performance

Funds with Morningstar Analyst Ratings of Gold, Silver and Bronze have been found to outperform their peers, particularly those funds invested in equities

Jeffrey Ptak 13 December, 2017 | 12:50AM Christopher J. Traulsen, CFA

Morningstar Ratings and Performance

Morningstar analyst ratings are an accurate predictor of funds' future returns, a study has found. Tracking fund performance from 2011 to 2017, it found that ratings predictive power varies between asset classes, but is strongest in equities.

The excellent performance of Gold-rated funds paired with the stark underperformance of Negative-rated funds highlights analysts' ability to differentiate the best and worst equity funds within categories. The dichotomy further strengthens over time.

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About Author

Jeffrey Ptak  Head of Manager Research

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