Morningstar, the funds analyst, has released its first report on the overhaul of its influential ratings system, with early results suggesting the new approach will be as tough as expected.

The analysis company implemented its new ratings system on November 1. Its advice to investors is keenly followed by fund managers because of the impact it can have on their businesses; Mark Barnett, the high-profile Invesco manager, was stung by a ratings change on his funds last week.