Document Type
Article
Publication Date
2017
Publication Title
Journal of Accounting and Finance
Abstract
Interest in governance led Morningstar to develop a summary measure for mutual fund governance. In contrast to previous work in this area, we focus on whether and how individual investors can use the Stewardship Grade Overall to improve mutual fund selection. We find that regardless of fee structure, top overall governance grade funds impose lower costs on investors regardless of fund investment style. We also find some evidence that choosing funds with the highest stewardship grade may earn positive risk adjusted returns. Stewardship Grade overall may therefore help less sophisticated investors identify better-performing mutual funds.
Recommended Citation
Moore, Scott B. and Porter, Gary E., "Can Investors Benefit From Using Morningstar's Stewardship Grades?" (2017). 2017 Faculty Bibliography. 95.
https://collected.jcu.edu/fac_bib_2017/95
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.