Morningstar Stock Price, News & Analysis

Morningstar, Inc. (MORN) announced significant enhancements to its investment research offerings for model portfolios. The company will double its coverage of model portfolios by the end of 2021, publish its annual report on the model portfolio landscape, and launch the Morningstar Rating for model portfolios. Key findings reveal that approximately $315 billion is managed in model portfolios, with BlackRock leading as the largest provider. New functionalities, such as the 'Model Exchange' in Advisor Workstation, aim to improve investor access to tailored investment strategies.

Morningstar, Inc. (MORN) announced the acquisition of Moorgate Benchmarks, enhancing its capabilities in index design and administration. This move aims to provide customized investment indexes, tapping into Moorgate's advanced technology and European expertise. Moorgate becomes a wholly owned subsidiary, with its 20 employees joining Morningstar's Indexes team. The acquisition aligns with Morningstar's strategy to disrupt the index industry, offering more value to investors. Financial terms remain undisclosed, but this strategic acquisition positions Morningstar as a stronger competitor in the global index market.

Morningstar (MORN) released its annual fund fee study, revealing a significant decline in average expense ratios for U.S. mutual funds and ETFs. From 2000 to 2020, the asset-weighted average fee decreased from 0.93% to 0.41%, saving investors an estimated $6.2 billion in 2020 alone. Key findings include the reduction in fees for both active and passive funds, with passive funds averaging 0.12%. Additionally, while sustainable funds have higher fees, their costs have been decreasing. The report emphasizes a trend towards low-cost funds which attract substantial investor inflows.

Morningstar reported U.S. mutual fund and ETF flows for July 2021, totaling $72 billion, below the $121 billion monthly average in H1 2021. ETFs attracted $49 billion, while actively managed funds collected $15 billion. International-equity funds continued strong performance with $30 billion inflows. However, U.S. equity funds faced $7.2 billion in outflows for the first time since January. Taxable-bond funds gathered $33 billion, their lowest since March 2020, while sustainability funds saw significant growth, attracting over $45 billion in 2021 so far.

Morningstar reported strong growth in Q2 2021, with revenue rising 26.7% to $415.4 million, and organic revenue up 16.7%. Despite these gains, operating income fell 23.0% to $47.2 million, and diluted net income decreased 32.1% to $0.76 per share. Adjusted diluted net income surged 23.1% to $1.76 per share. Year-to-date, revenue increased 24.0% to $808.2 million, driven by robust performance in core products like PitchBook and Morningstar Indexes. Operating cash flow was $127.2 million, reflecting a 0.3% decline due to a Sustainalytics earn-out payment.

Morningstar (MORN) reported strong estimated U.S. mutual fund and ETF flows for June 2021, with over $106 billion gathered, a significant increase from $83 billion in May. Year-to-date, inflows reached $722 billion, marking the highest semiannual total since 1993. Highlights include $48 billion for taxable-bond funds and $81 billion for passively managed strategies, mainly driven by ETFs. International equity funds collected $20 billion in June and $125 billion over the past year. Morningstar continues to be a leader in independent investment research.

Morningstar, Inc., a leader in independent investment research, has launched the Morningstar Portfolio Risk Score and Risk Comfort Range, part of its Morningstar Risk Ecosystem. This initiative aims to enhance risk assessment for financial advisors, providing a more personalized investment experience. The Portfolio Risk Score will be available soon on the Morningstar Advisor Workstation for advisors in Canada and the U.S., significantly impacting over 7.1 million client portfolios.

Morningstar (MORN) has announced the agenda for its 33rd annual Investment Conference, scheduled for September 22-24, 2021, in Chicago. The event will feature in-person, digital, and virtual reality attendance options, addressing key topics such as diversity, cryptocurrency, and sustainable investing. Notable speakers include industry leaders like Rob Arnott and Catherine Wood. Registration costs are $749 for in-person attendance before August 4 and $349 for digital access. Attendees will adhere to safety protocols, and the conference will offer both live sessions and on-demand content.

Morningstar, Inc. (MORN) plans to release its second-quarter 2021 financial results on July 28, 2021, after market closure. The company, a renowned provider of independent investment research across regions including North America, Europe, and Asia, does not host analyst calls but encourages investors to submit written questions. As of March 31, 2021, Morningstar managed approximately $244 billion in assets under advisement. For further details, visit www.morningstar.com/company.