Going for Gold: An Analysis of Morningstar Analyst Ratings

• 成果类型: Article
• 署名作者: Armstrong, Will J.; Genc, Egemen; Verbeek, Marno
• 署名单位: Texas Tech University System; Texas Tech University; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2017.2884
• 发表日期: 2019
• 页码: 2310-2327
• 关键词: mutual funds; Analyst recommendations; INVESTOR FLOWS

摘要

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.