Profile: Morningstar Inc (MORN.OQ)
Morningstar, Inc., incorporated on May 16, 1984, is a provider of independent investment research in North America, Europe, Australia and Asia. The Company offers a line of data, software, research and investment management offerings for financial advisors, asset managers, retirement plan providers and sponsors, and individual investors. In addition to its United States-based products and services, the Company offers local versions of its products designed for investors in Asia, Australia, Canada, Europe, Latin America and South Africa. The Company serves approximately 250,000 financial advisors, over 1,300 asset management firms, approximately 30 retirement plan providers, over 300,000 retirement plan sponsors and approximately 10.1 million individual investors. The Company has operations in approximately 30 countries.
The Company tracks market data on approximately 20 million exchange-traded equities, derivatives, commodities, currencies and other investments. The Company's data and analytical tools, such as the Morningstar Rating for mutual funds, which rates past performance based on risk- and cost-adjusted returns, and the Morningstar Style Box, which provides a visual summary of a mutual fund's underlying investment style. The Company has created other tools, such as the Ownership Zone, Sector Delta and Market Barometer, which allow investors to see how different investments work together to form a portfolio and to track its progress. Its Portfolio X-Ray tool helps investors evaluate their portfolios and get a view of their underlying holdings. The Company provides independent analyst research on mutual funds and other investment vehicles. It provides research reports for approximately 4,600 funds around the global, including active, passive, multi-asset, exchange-traded funds (ETF) and closed-end fund strategies. The Company also offers research and ratings on alternative funds, state-sponsored college savings plan portfolios and target-date funds. The Company's analysts cover approximately 1,500 stocks, using a methodology that focuses on fundamental analysis, competitive advantage assessment and intrinsic value estimation. The Company provides quantitative ratings and reports for approximately 40,000 companies around the global.
Through its Morningstar Credit Ratings, LLC subsidiary, the Company provides new issue and surveillance ratings and analysis for commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS), as well as operational risk assessment services. In addition, it publishes credit ratings and associated research on corporate debt issuers. It provides ratings on over 400 issuers. The Company offers a range of other products and services, including Morningstar Investment Profiles, Morningstar Commodity Data, Print and online publications, Investment conferences, ByAllAccounts, Morningstar Enterprise Data Management, Market data and desktop software, and Other investment software for financial advisors and institutions.
The Company's Morningstar Data gives institutions access to a range of investment data spanning numerous investment databases, including real-time pricing and market data. The Company offers licenses and data feeds for its statistics, such as the Morningstar Style Box and Morningstar Rating, and a range of other data, including information on investment performance, risk, portfolios, operations data, fees and expenses, cash flows and ownership. Institutions can use Morningstar Data in a range of investor communications, including Websites, print publications and marketing fact sheets, as well as for internal research and product development. It also offers Morningstar Data for equities, including financial statement data, consolidated industry statistics, stock ownership information and Morningstar statistics. Its equity database includes over 43,000 companies around the global. Its various types of data feeds for managed products include historical datasets for asset classification, Modern Portfolio Theory statistics and summary portfolio statistics.
Morningstar Advisor Workstation
The Company's Morningstar Advisor Workstation is a Web-based investment planning system, which provides financial advisors with a set of tools for conducting their core business, including investment research, planning and presentations. It allows advisors to build and maintain a client portfolio database that can be integrated with the firm's back-office technology and resources. It helps advisors create customized reports for client portfolios that combine different types of investments. Morningstar Advisor Workstation is available in approximately two versions: Morningstar Office for independent financial advisors and an enterprise version for financial advisors affiliated with firms. Its Morningstar for Advisors iPad application helps advisors interact with clients, monitor investments and analyze portfolios using Morningstar data and tools. It also added integrations with third-party platforms to help advisors with all aspects of their daily workflows.
The Company's Morningstar Direct is an institutional investment research platform that includes data and advanced analytical tools on a range of securities in the Company's database, as well as privately held investments and data from third-party providers. It allows portfolio managers, investment consultants, financial product managers, wealth managers and other finance professionals to develop, select and monitor investments. It released modules for Investment Analysis, which represents a rebuild of the user interface and data delivery systems, and Research Portal, which presents research from the Company's analyst teams. In addition, it introduced a signature report for stocks, as well as upgrades to the mutual fund and ETF data reports included with the software.
The Company's Website for individual investors is Morningstar.com. In addition to the United States-based site, it offers over 30 regional investing Websites customized to the needs of investors around the world. It also offers paid Premium Membership, which includes access to written analyst reports on stocks, mutual funds, ETFs and closed-end funds, as well as its Portfolio X-Ray, asset allocation and portfolio management tools, stock data, Stewardship Grades and Ratings, and premium stock and fund screeners. It offers Premium Membership services in Australia, Canada, China, Italy, the United Kingdom and the United States. It has approximately 120,000 paid Premium subscribers for Morningstar.com in the United States plus an approximately 16,000 paid Premium subscribers in other global markets.
The Company's Workplace Solutions product line includes several different offerings, including retirement advice and managed accounts, plan sponsor advice, custom models and financial wellness services. Its advice and managed accounts program, Morningstar Retirement Manager, helps retirement plan participants with their retirement goals. As part of this service, it delivers personalized recommendations for a target savings goal, a recommended contribution rate, a portfolio mix based on risk tolerance and specific investment recommendations. Participants can build their own portfolios based on the Company's recommendations or elect to have their accounts managed by it through its managed retirement account offering. In its plan sponsor advice business, the Company works with retirement plan sponsors to help them meet their fiduciary obligations by selecting and monitoring a range of diversified plan options. With its custom models, the Company works with retirement plan providers to design customized models for their investment lineups, including target maturity models and risk-based models. Through HelloWallet, the Company offers financial guidance to over 500,000 individuals and their families through their employer benefit plans.
The Company's Investment Advisory business provides institutional investment advisory and management services for asset management firms, broker-dealers and insurance providers. The Company offers Investment Advisory services through a range of registered entities in Australia, Dubai, France, Hong Kong, India, Japan, Korea, South Africa, the United Kingdom and the United States.
Morningstar Enterprise Components
The Company's Morningstar Enterprise Components is a set of tools that allow institutional clients build customized Websites. The Company offers a series of components, editorial content and reports that investment firms can license to build their Websites for financial advisors and individual investors. It also offers licenses for investment research, editorial content, and portfolio analysis and comparison tools that allow users to drill down into the underlying data when researching a potential investment.
Morningstar Managed Portfolios
The Company's Morningstar Managed Portfolios is a fee-based discretionary asset management service that includes a series of mutual fund, ETF and stock portfolios tailored to meet specific investment time horizons and risk levels. The Company offers this service through its subsidiary, Morningstar Investment Services, Inc., an investment advisor and registered broker-dealer. It offers Morningstar Managed Portfolios mainly to fee-based independent financial advisors.
The Company's Morningstar Research includes both Equity Research Services and Manager Research Services. The Company offers equity research to institutional investors who use it to supplement their own research, as well as to broker-dealers who provide its research to their affiliated financial advisors or individual investor clients. Its Manager Research services allow institutional investors and manager research due diligence teams evaluate funds, investment strategies and asset management firms.
Morningstar Credit Ratings
Morningstar Credit Ratings, LLC provides timely new issue and surveillance ratings and analysis for structured credits, as well as operational risk assessment services. It provides ratings on a range of structured finance securities, including commercial mortgage-backed securities, single family rental securities and residential mortgage-backed securities.
The Company offers a set of investment indexes that can be used to create investment products, including indexes that track the United States market by capitalization, sector and investment style; dividend indexes; active equity indexes based on the Company's equity research; bond indexes; commodity indexes; hedge fund indexes, and asset allocation indexes. The Company licenses the Morningstar Indexes to institutions that offer ETFs and exchange-traded notes based on the indexes.
The Company competes with Activ Financial, Bloomberg, Financial Express, Interactive Data, Standard & Poor's, Thomson Reuters, Xignite, Black Diamond, Envestnet, Orion Advisor Services, eVestment Alliance, FactSet Research Systems, Zephyr Associates, The Motley Fool, Seeking Alpha, TheStreet.com, Yahoo! Finance, Financial Engines, Guided Choice, Learnvest, Personal Capital, Betterment, Wealthfront, Mercer, Callan, Wilshire Associates, Financial Express, Interactive Data Corporation, Markit on Demand, AssetMark, Brinker Capital, Envestnet PMC, Loring Ward, SEI Investments, Ford Equity Research, Ned Davis Research Group, Zacks Investment Research Mercer, Willis Towers Watson, Credit Sights, Gimme Credit, Moody's, FTSE Russell, MSCI, S&P Dow Jones Indices, Research Affiliates, Dominion Bond Rating Services (DBRS), Fitch and Kroll Bond Ratings.
22 W Washington St
CHICAGO IL 60602-1605
Company Web Links
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