Stewardship Grade

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Dictionary Says

Definition of 'Stewardship Grade'

An evaluative data point in Morningstar's fund and stock reports that assesses the quality of a company's governance practices. Stewardship grades for both funds and stocks range from 'A' (excellent) to 'F' (very poor) based on criteria that measures the effectiveness of fund and corporate managers to consistently act with their shareholders' best interests in mind.
Investopedia Says

Investopedia explains 'Stewardship Grade'

Morningstar initiated its stewardship grades for both the funds and stocks covered by its investment research services in 2004 in response to the mutual fund and corporate scandals prevalent at that time. Morningstar sees a high level of managerial stewardship as an important investment quality for investors to seek out in their selection of funds and stocks.

For funds, five areas of stewardship are evaluated: corporate culture, board quality, manager incentives, fees and regulatory issues.

For stocks, three broad areas are examined: transparency in financial reporting, shareholder friendliness, and incentives, ownership and overall stewardship.
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'Stewardship Grade'

  • Morningstar's Stewardship Grade Scores Big

    http://www.investopedia.com/articles/04/111904.asp
    Morningstar's Stewardship Grade Scores Big. ... Retaining a fund with a strong Morningstar
    rating but lower Stewardship Grade is a matter of personal choice. ...

  • Morningstar's Trifecta: An Easy Way To Select Mutual Funds

    http://www.investopedia.com/articles/mutualfund/11/morningstar-trifecta-select-mutual-funds.asp
    ... but less-experienced fund investors should focus their attention on just three fund
    report components – the "analyst pick", "stewardship grade" and "analyst ...

  • Fund IQ No.8: Favorable Analytics | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp10-commentary
    ... Favorable analyst views, a Stewardship Grade of A or B, and a fund's designation
    as an "Analyst Pick" would place a fund in the "very positive" (highest ...

  • Fund IQ No.8: Favorable Analytics | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp10-commentary/favorable-analytics.asp
    ... Favorable analyst views, a Stewardship Grade of A or B, and a fund's designation
    as an "Analyst Pick" would place a fund in the "very positive" (highest ...

  • Fund IQ No.8: Favorable Analytics | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp10-commentary/
    ... Favorable analyst views, a Stewardship Grade of A or B, and a fund's designation
    as an "Analyst Pick" would place a fund in the "very positive" (highest ...

  • Scoring Fund Analytical Commentary | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp10-commentary/scoring-analytical.asp
    ... A mutual fund's stewardship grade is found in the upper left-hand corner of a
    Morningstar fund report under the heading, "Governance and Management." For ...

  • Today's Mutual Fund Industry | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp1-Introduction/mf-industry.asp
    ... (For more insight, see Morningstar's Stewardship Grade Service A Welcome Addition.)
    It is natural that opinions will differ on fund-sponsor quality. ...

  • Morningstar Fund Report | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp2-data-sources/morningstar-report.asp
    ... yearly fee. (For related reading, see Morningstar's Stewardship Grade Service
    A Welcome Addition.). Return to the Main Menu. Next ...

  • How's Your Mutual Fund Really Doing?

    http://www.investopedia.com/articles/fundamental-analysis/08/evaluate-investment-performance.asp
    ... (For more information on mutual fund evaluation, see Morningstar's Stewardship Grade
    Scores Big.) Performance Attribution Attribution analysis is a relatively ...

  • Understanding The Mutual Fund Style Box

    http://www.investopedia.com/articles/basics/06/stylebox.asp
    ... tool to market its products and guide investors in their decisions. To
    read more, see Morningstar's Stewardship Grade Scores Big. ...

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