Title

Do Morningstar Ratings Provide Value Within Generic Government Mutual Bond Funds?

Document Type

Article

Publication/Presentation Date

2011

Academic Year

2010-2011

Abstract/Description

Investors often look for confirmation of a mutual fund's performance. This paper analyzes whether Morningstar's rating system adds value within the mutual fund sector for government bonds. The authors confirm that on average Morningstar ratings accurately represent high and low performing mutual funds when measured against Sharpe ratios, Treynor ratios, Jensen's alphas, Sortino ratios, and M-squared values. Our performance evaluation also is consistent with showing that some managers, although not all, can add value on a risk-adjusted basis even within the generic government bond mutual fund category regardless of maturity classification.

This document is currently not available here.

Share

COinS