About Morningstar Ratings
Learn to use Morningstar Ratings
Morningstar® utilizes two
basic methodologies to categorize mutual funds, the Morningstar Style Box and
the Morningstar Rating System. Below you will find more detailed information on
the Morningstar Style Box, Morningstar Rating System, and the categories within
the Morningstar Rating System.
Morningstar Style Box
The Morningstar Style box presents information in a nine-box grid based on a methodology that provides accurate, robust measurement. The methodology is based on 10 growth and valuation measures for each fund holding and median size of the companies in which the fund invests.
The goal is to provide results that are consistent by capturing the factors that drive a manager's investment strategy. This approach makes the style box a useful tool for portfolio building, since it measures growth and valuations.
Fund type determines the calculations used to determine style box placement:
| Domestic equity | |
| Placement within the grid is based on 10 growth and valuation measures for each fund holding and median size of the companies in which the fund invests. |  |
| Foreign equity | |
| Placement within the grid is based on a fund's price-to-earnings and price-to-book ratio as well as size of the companies in which it invests, or median market capitalization. | |
| Fixed-income | |
| Placement within the grid is based on a fund's average effective maturity or duration and the average credit rating of the bond portfolio. | |
Morningstar Rating™ System
The Morningstar Rating System compares mutual funds with others in one of 48 different Morningstar categories. It takes the best of traditional "star" ratings (emphasis on long-term performance) and the best of category rating (emphasis on apples-to-apples comparison) and merges them into a single rating.
Morningstar rates mutual funds according to a five-star scale, with five stars as the highest possible rating and one star as the lowest, based on relative percentiles within each of the 48 categories.
Those funds with five-star ratings have produced the highest levels of historical returns relative to the investment risks taken. Ratings are calculated monthly, and funds must have at least three years of historical performance to be considered. Although Morningstar Ratings are highly regarded in the mutual fund industry as a historical indicator of risk versus reward, they should not be used as the sole factor in determining whether or not to purchase any particular fund. Past performance is no guarantee of future results.
Morningstar Categories
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Muni New York Intermediate-Term |
|
|
Diversified Foreign |
Muni New York Long-Term |
|
Diversified World |
Muni Short-Term |
|
Europe |
Muni Single State Intermediate-Term |
|
General Intermediate-Term |
Muni Single State Long-Term |
|
General Long-Term |
Pacific/Asia |
|
General Short-Term |
Pacific/Asia (ex Japan) |
|
General Ultrashort-Term |
Small Blend |
|
Government Intermediate-Term |
Small Growth |
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Government Long-Term |
Small Value |
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Government Short-Term |
Specialty Precious Metals |
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International Hybrid |
Specialty Communications |
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Japan |
Specialty Emerging Markets Bond |
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Large Blend |
Specialty Financial |
|
Large Growth |
Specialty Health |
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Large Value |
Specialty High-Yield |
|
Latin America |
Specialty International Bond |
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Mid Blend |
Specialty Multisector |
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Mid Growth |
Specialty Natural Resources |
|
Mid Value |
Specialty Real Estate |
|
Muni California Intermediate-Term |
Specialty Technology |
|
Muni California Long-Term |
Specialty Utilities |
|
Muni National Intermediate-Term |
U.S. Hybrid |
|
Muni National Long-Term |
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Learn more
View Morningstar ratings for current Evergreen Investments funds. Explore other Investing Essentials topics through the menu to the left. Or, access extensive reference materials through the Literature Library. Or contact a financial advisor for advice on the right investment strategy for your specific goals.