The Morningstar Analyst Rating is a qualitative assessment that is issued by Morningstar fund analysts. This rating represents a forecast on the future performance of funds relative to peers and relevant benchmarks. In order to issue a rating, the Morningstar fund analysts base their assessment on three pillars: investment team, investment process and fund house. Cost weighted performance is a consideration across all three of these pillars.
A rating of ‘Gold’, ‘Silver’ or ‘Bronze’ is attributed to investment funds that are expected to perform better during a future full market cycle than the category average and risk-adjusted relevant benchmarks. The difference between these ratings is determined by the conviction of the fund analyst with regards to the ability for the fund to outperform its peers. Funds that are not expected to distinguish themselves will receive a ‘Neutral’ rating, while funds that perform below par on several levels will be assessed as ‘Negative’.