Maryland College Investment Plan Earns Morningstar's Highest Rating for the Fifth Year in a Row!
In October 2014, the Maryland College Investment Plan received national recognition from Morningstar for the fifth year in a row. The College Investment Plan, managed by T. Rowe Price, was one of only four plans to receive the “Gold” rating in 2014, 2013, and 2012. In addition, the Plan also received Morningstar’s “Top” rating in 2011 and 2010 under Morningstar’s previous rating system.
According to Morningstar’s 2014 report, plans with a “Gold” rating “lead the industry and represent some of the best options available for college savers.” Morningstar stated that the College Investment Plan continues “to offer some of the most compelling actively managed investments among direct-sold plans.” The report also mentions the “underlying funds have been strong performers, which contributes to the plans' attractive risk-adjusted results.”
See how easy it is to save with a “Gold” rated college savings plan. It’s a decision that can help you stay on track to meet your college savings goals and make a big difference in your child’s future.
Details on Morningstar's ratings:
2014, 2013 and 2012: Morningstar analysts reviewed 64 plans for 2014
ratings (10/21/2014), 2013 ratings (10/22/13), and 2012 ratings (10/15/12), of
which 4 plans received a "Gold" rating. To determine a plan's rating,
Morningstar's analysts considered five factors: the plan's strategy and
investment process; the plan's risk-adjusted performance; an assessment of the
individuals managing the plan's investment options; the stewardship practices
of the plan's administration and parent firm; and whether the plan's investment
options are a good value proposition compared to its peers. Plans were then
assigned forward-looking ratings of "Gold," "Silver,"
"Bronze," "Neutral," and "Negative." 21 of the
industry's smallest plans were not rated in 2014 or 2013, and 22 were not rated
2011 and 2010: Morningstar analysts reviewed 58 plans for its 2011 ratings, of
which 6 plans received a "Top" rating, and 53 plans for its 2010
ratings, of which 5 plans received a "Top" rating. Ratings for each
plan in 2011 and 2010 were based on five factors: the quality of the underlying
investment options; performance of those options; the skill of the managers of
those options; the costs associated with each plan; and the stewardship
practices of each plan's program manager. Plans were then assigned ratings of
"Top," "Above Average," "Average," "Below
Average," and "Bottom." To earn a "Top" rating under
the previous ratings scale, a plan needed to be best-in-class across all five
Ratings are subjective in nature and should not be used as the sole basis for
investment decisions. Analyst Ratings are based on Morningstar analysts’
current expectations about future events and therefore involve unknown risks
and uncertainties that may cause Morningstar’s expectations not to occur or to
differ significantly from what was expected. Morningstar does not represent its
Analyst Ratings to be guarantees.
All college savings portfolios are
subject to market risk, including possible loss of principal.