MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, February 8, 2011 Morningstar Cuts its Rating on Fido's Freedom Funds by a Notch Mutual fund firms with target-date products yesterday learned their latest ratings from Morningstar. The Chicago-based investment research firm unveiled its updated target-fund family ratings and reports for the fourth quarter of 2010. Among the changes: Morningstar lowered its overall rating on Fidelity's Freedom Funds from above average to average. Meanwhile, TIAA-CREF and MassMutual saw an improvement in their ratings. Of the Fidelity Freedom Funds, Morningstar officials said: "We lowered the rating in the parent company category because recent hiring and organization changes have not resulted in better performance, and we continue to see high manager turnover." As for TIAA-CREF, the New York firm moved from average to above average due to "a greater share of assets in its cheapest share class as well as improved target-date transparency," according to Morningstar. MassMutual moved from below average to average due to the gradual improvement in its portfolio quality and performance. Morningstar assigned ratings on a total of 21 target-date fund families.
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