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The Wall Street Journal, September 25, 2010 - "How Safe Is Your Bond Fund?"

"How Safe Is Your Bond Fund?" describes the dramtatic impact of changes in how Morningstar calculates the average credit quality of bond mutual funds. Morningstar lowered the reported credit quality of more than half the bond funds it covered by at least one whole letter grade with many being reduced by two whole letter grades or more. The change in Morningstar's methodology and FINRA's prior admonishment to the industry to stop using this statistic until its glaring flaws were corrected was prompted by SLCG's study "What Does a Mutual Fund's Average Credit Quality Tell Investors?"