Morningstar rating system

Morningstar rating system

A system used in rating mutual funds and annuity by Morningstar Incorporated of Chicago.

Morningstar Rating System

A system used to measure a mutual fund's risk compared to other similar mutual funds. For example, the Morningstar rating system may compare the volatility of a bond fund to that of other bond funds. According to the system, average risk equates to a rating of 1, with riskier funds receiving higher ratings.
References in periodicals archive ?
we find widespread support for the notion that the new Morningstar rating system can predict future performance .
Since 1984, with the launch of Morningstar's "Mutual Fund Sourcebook", the Morningstar rating system gained credibility and became a market standard, such that a "Five Star" rating is regarded as a guarantee of a fund's subscription growth.
The site will also apply the proprietary Morningstar Rating system to Canadian funds.
The Morningstar rating system is a descriptive representation of how well the fund has balanced risk with return in the past.