Title

Morningstar Ratings and Future Performance

Document Type

Journal Article

Publisher

Blackwell Publishing

Faculty

Business and Law

School

Accounting, Finance and Economics

RAS ID

4348

Comments

Originally published as: Gerrans, P. (2006). Morningstar ratings and future performance. Accounting & Finance, 46(4), 605-628. Original available here

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.

 

Link to publisher version (DOI)

10.1111/j.1467-629x.2006.00185.x