Morningstar, Inc. (Nasdaq: MORN), a provider of independent investment insights, has announced significant updates to its Morningstar Medalist Rating™, its forward-looking rating for managed investments. The revised methodology, set to go live globally in April 2026, aims to simplify the rating structure, increase transparency for investors, and enhance stability, allowing for easier identification of investments with potential to outperform their Morningstar Category average.
Laura Lutton, global head of manager research at Morningstar, stated, “We’re simplifying key elements of our forward-looking Medalist Ratings to increase usability and give investors a clearer view into how ratings are determined. These updates provide the clear, easy-to-interpret insights the industry has been seeking.”
Key enhancements to the Medalist Rating include Transparent Pillars, where quant-driven fundamental pillars (People, Process, Parent) will offer greater visibility into underlying inputs, such as the new Fund Manager Successful Experience metric. This allows investors to better understand how a Medalist Rating is derived, while maintaining a clear distinction between analyst-derived and algorithm-generated pillar ratings.
The Simplified Structure will evaluate funds against their Morningstar Category average instead of a benchmark. This change is intended to enable investors to more easily identify Medalist options within a category and facilitate meaningful peer comparisons.
A New Price Score, ranging from –2.5 to 2.5, will explicitly reflect whether an investment’s fee is a liability or a competitive advantage, directly impacting the overall rating. Additionally, Fixed Rating Thresholds will determine Medalist Ratings through a straightforward combination of fundamental pillar ratings and the Medalist Rating Price Score. This adjustment aims to increase stability by eliminating a forced distribution of ratings, which previously caused changes based on updates to other funds. The ratings scale will continue to be a five-tier system: Gold, Silver, Bronze, Neutral, and Negative.
Analyst input remains central to the process, with algorithm-generated pillars activated only when an analyst rating is not available. Lutton added, “Our updated methodology and approach reinforce the value of human expertise combined with data-driven rigor, resulting in assessments that are deeply informed by real-world experience.”
Morningstar, Inc. provides independent investment insights across North America, Europe, Australia, and Asia. The company offers products and services for individual investors, financial advisors, asset managers, and institutional investors. As of September 30, 2025, Morningstar’s investment advisory subsidiaries managed approximately $369 billion in assets under management and advisement (AUMA). The company operates through wholly-owned subsidiaries in 32 countries.
