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Fund Spy

Lineage Matters: Strong Firms' Funds Stand Taller

New Morningstar study of asset managers shows good stewards have produced better funds.

New research out today supports Morningstar's view that investors should not only be mindful of what they invest in, but which firms they invest with.

Morningstar examined its data on asset-management firms offering U.S. mutual funds and found that firms with strong stewardship attributes--the highest levels of manager tenure, manager retention, and ownership of mutual fund shares--have delivered better outcomes for investors than firms with poor data. The same is true of firms that offer funds with lower expense ratios.