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November 15, 2011

FPA Crescent Receives Top Rating under Morningstar’s New Forward-Looking Analyst Rating

On November 15, 2011, FPA Crescent received a Gold rating under Morningstar's new qualitative, forward-looking Analyst Rating for Funds. Less than 2% of the funds in Morningstar’s moderate allocation category are rated Gold...

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The Morningstar Analyst Rating is not a credit or risk rating.  It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc.  Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price.  Morningstar’s analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis.  Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary.  The Analyst Rating ultimately reflects the analyst’s overall assessment and is overseen by Morningstar’s Analyst Rating Committee.  The approach serves not as a formula but as a framework to ensure consistency across Morningstar’s global coverage universe.

The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating.  A fund with a “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction.  A fund with a ‘Silver’ rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction.  A ”Bronze” rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a ‘Neutral’ rating isn’t seriously flawed across the five pillars. Nor does it distinguish itself very positively.  A ‘Negative” rated fund is flawed in at least one it not more pillars and is considered an inferior offering to its peers.  Analyst Ratings are reevaluated at least every 14 months.

For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/US.

The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund Morningstar analyst Ratings are based on Morningstar’s current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such.  Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected.