Morningstar Stock Price, News & Analysis

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.

Morningstar, Inc. (MORN) announced the winners of the 2021 Morningstar Awards for Investing Excellence, recognizing outstanding portfolio managers, firms, and talents in the asset management industry. Winners include Joel Tillinghast from Fidelity for Outstanding Portfolio Manager, Dodge & Cox for Exemplary Stewardship, and Sonali Pier from Pimco as Rising Talent. The awards emphasize investment skill and alignment with investors' interests. Winners will be featured on CNBC's 'Power Lunch' program, and the awards methodology can be found on Morningstar's website.

Morningstar, Inc. (MORN) reported that U.S. mutual fund and ETF flows totaled $83 billion in May 2021, a significant decline from $156 billion in March and $124 billion in April. Index-tracking funds attracted $71 billion, representing continued investor preference for passive strategies. Taxable-bond funds led inflows with $38 billion, while U.S. equity funds saw minimal growth with just $211 million. Notably, international-equity funds maintained momentum with $23 billion in inflows for seven consecutive months.