Morningstar Publishes First Medalist Ratings for Semiliquid Funds

Morningstar, Inc. (NASDAQ:MORN), a leading provider of independent investment insights, today published its first-ever Morningstar Medalist Ratings^TM for Semiliquid Funds. These forward-looking, qualitative ratings assess the performance potential of semiliquid strategies compared to their relevant peers and traditional mutual funds and exchange-traded funds (ETFs).

Semiliquid funds, which aim to make private markets more accessible and include popular vehicles like interval funds, have grown more than 60% since 2022, according to Morningstar research. However, their fee structures and limited liquidity make them difficult to evaluate, underscoring the need for independent analysis of these vehicles.

"Private investments are making their way into retail portfolios, but navigating this complex and evolving market comes with a significant information gap for many investors," said Laura Lutton, global head of manager research. "The Medalist Rating for Semiliquid Funds takes a measured approach, cutting through the noise to help advisors and investors evaluate whether these products truly belong in a diversified portfolio."

Ratings use Morningstar's five-tier scale – Gold, Silver, Bronze, Neutral, and Negative – to express conviction in a strategy's potential to outperform over the long term. The initial batch of rated funds was chosen to give investors a cross-section of different types of strategies and approaches from previously rated asset managers.

Morningstar's first Medalist Ratings for Semiliquid Funds include:

"Our initial ratings reflect differing levels of conviction in each strategy," Lutton said. "Higher-rated strategies demonstrated strong management teams and proven experience, while the lowest rating was influenced by structural concerns that warrant further evaluation."

The Morningstar Medalist Rating for Semiliquid Funds methodology draws on the same framework applied to other managed investments, including mutual funds and ETFs. Ratings are derived from assessments of a fund's underlying investment process, management team, and parent firm. The research approach and pillar weightings are tailored to account for the unique characteristics of semiliquid structures, including their liquidity constraints and potential private asset exposure.

Morningstar is making this set of ratings and analysis available to all investors in a research paper, "Morningstar's Inaugural Medalist Ratings for Semiliquid Funds," available here. A summary article on Morningstar.com can be viewed here.

Morningstar is committed to expanding its qualitative coverage of the semiliquid fund universe. Coverage will be determined by Morningstar's analyst teams based on factors such as investment merit, investor demand, and client interest. Ratings will be accessible on Morningstar.com and integrated into products in the Direct Platform, including Morningstar Direct, Direct Advisory Suite, and in data feeds associated with select interval funds.

Additional Morningstar Research

Morningstar's Guide to Semiliquid Funds provides an introductory overview of the semiliquid fund market, outlining how these products work, where they may fit in a portfolio, and risks to consider. The guide also features a curated collection of articles that dive deeper into key public-private market convergence themes.

About Morningstar

Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $352 billion in AUMA as of June 30, 2025. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X @MorningstarInc.

Morningstar's Manager Research Group

Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Morningstar Manager Research provides independent, fundamental analysis on managed investment strategies. Morningstar views are expressed in the form of Morningstar Medalist Ratings, which are derived through research of three key pillars—People, Process, and Parent. The Morningstar Medalist Rating is the summary expression of Morningstar's forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. A global research team issues detailed research reports on strategies that span vehicle, asset class, and geography.

Medalist Ratings are not statements of fact, nor are they credit or risk ratings, and should not be used as the sole basis for investment decisions. A Medalist Rating is not intended to be nor is a guarantee of future performance. This press release is for informational purposes only; references to securities should not be considered an offer or solicitation to buy or sell the securities.

©2025 Morningstar, Inc. All rights reserved.

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Michael Claussen, +1 312 696-6037 or [email protected]