Mutual Funds That Make the Grade
Use this screen to find offerings that get A's for stewardship.
Trust is critical when investing, and not all fund firms have proved worthy fiduciaries for investors' hard-earned money. Our team of fund analysts hit the pavement, search fund filings, and keep good records of fund companies' histories to try to distinguish between top fiduciaries and shine a light on those that have failed to hold up their end of the bargain. Morningstar's Stewardship Grades can be a useful tool for scouting out the firms that have done an admirable job of putting fund shareholders' interests ahead of their own.
This screen is a snap to create with the Premium Screener. To focus in on good stewards, we limited our search to funds that earned an A grade for stewardship. Then to tidy up the list, we searched for "distinct portfolios only," which limits the results to one share class per fund. We also required that the funds be open to new investments. As of March 25, 2009, 67 mutual funds passed this test.
While all these funds earn A's overall, some funds on this list are standouts in certain areas. Five components make up each of our Stewardship Grades: corporate culture, board quality, manager incentives, fees, and regulatory issues. To view the full list, click here.
Karin Anderson has a position in the following securities mentioned above: DODFX. Find out about Morningstar’s editorial policies.