Morningstar has announced plans to change how they assign Morningstar Analyst Ratings and how they will enhance the Morningstar Sustainability Rating.

Morningstar is the go-to source for many financial professionals.


The Morningstar Analyst Rating

The Morningstar Analyst Rating is a forward-looking ratings system that assigns Gold, Silver, Bronze, Negative and Neutral to funds.  Morningstar announced they're changing the methodology of these ratings.

The new methodology will place a greater emphasis on fees, account for different share classes, and raise the bar for active strategies. The highest ratings, Gold, Silver and Bronze, will only be given to active strategies that are able to surpass their benchmark and their peers.


The Morningstar Sustainability Rating

The Morningstar Sustainability Rating, which was launched in 2016, will also undergo enhancements which they believe will provide clarity and additional information to make investment decisions. Using Sustainalytics data, the Morningstar Sustainability Rating will be based on company-level absolute ESG risk ratings.


Want to learn more? Sign up for Morningstar's upcoming webinar to learn more about these changes, when they will go into effect and how they'll benefit you and your clients.