Morningstar Ratings and Future Performance
Document Type
Journal Article
Publisher
Blackwell Publishing
Faculty
Faculty of Business and Law
School
School of Accounting, Finance and Economics
RAS ID
4348
Abstract
Morningstar is one of the major ratings suppliers of Australian managed funds. Ratings are a convenient information source for investors. Over time the ratings methodology used by Morningstar in Australia has become more like its North American counterpart. However, Morningstar Australia uniquely retains a commitment to a qualitative dimension to their research. This paper explores the relationship between Morningstar, qualitative and quantitative ratings and future fund product performance. Results do not support predictive power in the ratings, in the relatively short periods available for analysis, using a range of commonly used performance measures.
DOI
10.1111/j.1467-629x.2006.00185.x
Comments
Gerrans, P. (2006). Morningstar ratings and future performance. Accounting & Finance, 46(4), 605-628. Available here