In June 2002, Morningstar revised its rating methodology for determining 5 star funds and below. The universe of mutual funds was segregated into 48 categories instead of four broad asset class categories and 5 star funds are now a subset of those 48 categories. Morningstar did this to facilitate the comparison of 5 star funds against more relevant peer groups so funds would become 5 star funds when their managers added value rather than when their category performed well. Morningstar also sought to incorporate the risks of5 star funds in the 5 star funds rating calculation so it adopted a utility function of risk measure that identifies 5 star funds based on volatility. Additionally, the risk measure of 5 star funds is more heavily weighted relative to the returns of 5 star funds in the 5 star funds rating calculation. As a result, 5 star funds typically have managers who have added value, 5 star funds tend to be less volatile, and 5 star funds usually have fewer risks.