What is the expected impact on the fund’s liquidity and bid‑ask spreads following the rating announcement?

The 5‑Star Morningstar rating is a strong credibility boost for CRDBX, and history shows that funds that break into the top‑10 % of their category experience a measurable surge in investor interest. In the days after the announcement we can expect net inflows to rise as both institutional and retail capital‑allocation desks add the fund to their “high‑quality” watchlists. Higher inflows translate into a step‑up in daily trading volume, which in turn improves the fund’s on‑exchange liquidity.

With more participants posting orders, the bid‑ask spread should compress relative to its pre‑announcement norm. Market makers will be more willing to post tighter quotes because the risk of being left holding a thinly‑traded position is reduced, and the higher turnover provides a steadier flow of order‑reversal opportunities. In the short‑run, however, the initial wave of inflows can create a temporary widening of the spread if the volume spike outpaces the market‑maker capacity to replenish inventory; this is most likely on the first trading day after the rating is released.

Trading implication: Anticipate tighter spreads and better fill rates for both large‑size and incremental trades, but be mindful of a brief, front‑loaded spread‑expansion as the market digests the rating news. Using limit orders or VWAP‑type execution on the first 1‑2 sessions can help avoid the temporary premium, while a modest‑sized “buy‑the‑rumor” position after the spread settles can capture the expected price uplift from the inflow‑driven demand.