Morningstar Revises Stewardship Ratings Methodology

Chicago-based data and investment research provider Morningstar last week unveiled new Stewardship Ratings—a revised rating system that rates a firm’s stewardship as exemplary, standard or poor—replacing its existing grading of A through D and F, which was originally introduced in 2005 and placed greater emphasis on specific governance practices, whereas the new methodology focuses on factors such as capital allocation decisions, financial leverage, investment strategy, timing and valuation