Going for gold: An analysis of morningstar analyst ratings

Will J. Armstrong, Egemen Genc, Marno Verbeek

Research output: Contribution to journalReview articlepeer-review

16 Scopus citations


We investigate Morningstar's new qualitative, forward-looking analyst ratings, which reflect independent analysts' expectations of a fund's future performance. We find relatively higher flows to funds receiving higher ratings, suggesting that the average investor values the analyst's subjective views when allocating their wealth. Performance tests show that investors would have earned significantly higher returns over our sample period by investing in funds with the highest analyst conviction. These results suggest that independent research that expands the information set to include qualitative elements may help investors make better investment allocation decisions.

Original languageEnglish
Pages (from-to)2310-2327
Number of pages18
JournalManagement Science
Issue number5
StatePublished - May 2019


  • Analyst recommendations
  • Investor flows
  • Mutual funds


Dive into the research topics of 'Going for gold: An analysis of morningstar analyst ratings'. Together they form a unique fingerprint.

Cite this