Morningstar, Inc.

From Wikipedia, the free encyclopedia
  (Redirected from Morningstar, Inc)
Jump to: navigation, search
This article is about the investment company. For the food company, see Morningstar Farms.
Morningstar, Inc.
Type Public
Traded as NASDAQMORN
Industry Investment Research, Investment Management
Founded 1984
Founder(s) Joe Mansueto
Headquarters Chicago, Illinois, United States
Key people Joe Mansueto (CEO)
Revenue Increase US$698.3 million (2013)[1]
Operating income Increase US$170.7 million (2013)[1]
Net income Increase US$123.5 million (2013)[1]
Employees 3,645 (2014)[2]
Website www.global.morningstar.com www.morningstar.com

Morningstar, Inc. is an investment research and investment management firm headquartered in Chicago, Illinois, United States.

History[edit]

Founder Joe Mansueto initially had the idea for Morningstar in 1982 while reviewing mutual fund annual reports he had requested from several prominent fund managers.[3] However, it was only after a year working as a stock analyst for Harris Associates, seeing the fund industry and potential competitors up close, that he was convinced that the opportunity was there.[3][4] Morningstar was subsequently founded in 1984 from his one-bedroom Chicago apartment with an initial investment of US$80,000.[5] The name Morningstar is taken from the last sentence in Walden, a book by Henry David Thoreau; "the sun is but a morning star".[5][6]

In July 1999 Morningstar accepted an investment of US$91 million from SoftBank in return for a 20% stake in the company. The two companies had the previous year formed a joint venture in Japan.[6][7]

Morningstar's initial public offering occurred on May 3, 2005, with 7,612,500 shares at $18.50 each.[8] The manner in which Morningstar went public is notable. They elected to follow Google's footsteps and use the OpenIPO method rather than the traditional method. This allowed individual investors to bid on the price of the stock, and allowed all investors equal access.

As of April 2014, Joe Mansueto owned approximately 55% of the outstanding shares in Morningstar.[9]

Operations[edit]

Morningstar provides data on approximately 473,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has approximately $169 billion in assets under advisement and management as of June 30, 2014. The company has operations in 27 countries.[10]

Morningstar created the Morningstar Rating™, Morningstar Analyst Rating™, Morningstar Style Box™, and other proprietary measures.

The Morningstar Investment Management division creates custom investment solutions that combine its award-winning research and global resources together with the proprietary data of its parent company, Morningstar Inc. (“Morningstar”). With approximately $169 billion in assets under management and advisement, the division provides comprehensive retirement, investment advisory, portfolio management and index services for financial institutions, plan sponsors and advisors around the world.

Acquisitions[edit]

Since 2003 Morningstar has undertaken several corporate acquisitions.

Asset Acquired Acquired From Date Announced Date Completed Reported Cost
mPower.com, Inc Privately Held May 30, 2003[11] July 2, 2003[12] Not Disclosed
ePiper Separate Account Database Pensions & Investments September 7, 2004[13] Not Disclosed Not Disclosed
VARDS Finetre Corporation January 11, 2005[14] January 4, 2005[14] US$9 million
Ibbotson Associates Privately Held December 12, 2005[15] March 1, 2006[16] US$83 million
Aspect Huntley Privately Held July 2, 2006[17] July 25, 2006[18] A$30 million
Institutional Hedge Fund & Separate Account Database Division InvestorForce, Inc. July 17, 2006[19] August 1, 2006[20] US$10 million
Fund Data Business (prev. Micropal & Assirt) Standard & Poor's February 22, 2007[21] March 16, 2007[22] US$55 million
Hemscott Data, Media, and Investor Relations Web Site Businesses Ipreo Holdings LLC December 17, 2007[23] January 9, 2008[24] US$51.6 million [24]
Financial Computer Support, Inc., provider of practice management software for independent advisors Privately Held August 11, 2008[25] September 2, 2008[26] Not disclosed
Fundamental Data Limited, provider of data on closed-end funds in the United Kingdom Privately Held October 2, 2008[27] October 2, 2008[27] US$18.6 million
10-K Wizard, SEC EDGAR filing research company 10-K Wizard December 4, 2008[28] December 4, 2008[28] US$11.5 million
Tenfore Systems Limited, global provider of real-time market data and financial data workstations based in the United Kingdom Privately held December 17, 2008[29] December 17, 2008[29] US$19.2 million
InvestData (Proprietary) Limited, provider of fund information in South Africa Not disclosed November 21, 2008[30] December 29, 2008[31] Not disclosed
Global Financial Filings Database Business Global Reports LLC April 29, 2009[30] April 20, 2009 Not disclosed
Equity Research and Data Business C.M.P.S. Computerized Portfolio Management Services Inc. April 24, 2009[30] May 1, 2009 C$16.1 million
Intech Pty Ltd IOOF Transition 3 Pty Ltd., a subsidiary of IOOF Holdings Limited June 2, 2009[32] June 30, 2009[33] Not disclosed
Additional ownership interest in Morningstar Korea Co., Ltd. Seong Ryong, Ji, a private investor, and SBI Korea Holdings Co., Ltd. October 20, 2009[34] October 20, 2009[34] Not disclosed
Canadian Investment Awards and Gala Canadian Investment Awards, Inc. December 2, 2009[35] December 17, 2009 Not disclosed
Logical Information Machines, Inc., providing market pricing data, securities reference data, historical event data, predictive analytics, and advanced data management solutions Privately held December 11, 2009[36] December 31, 2009[37] US$51.5 million[38]
Footnoted.org and Footnoted Pro service of Financial Fine Print, Inc. Privately held February 9, 2010[39] February 9, 2010[39] (Financial Fineprint took over business Sept. 4, 2012) [40] Not disclosed[39]
Aegis Equities Research, leading provider of equities research in Australia Aegis Equities Holdings Pty Ltd. March 24, 2010[41] April 1, 2010[42] Not disclosed[41]
Realpoint, LLC, a Nationally Recognized Statistical Ratings Organization (NRSRO) Privately held March 19, 2010[43] May 3, 2010[44] US$52 million[43]
Old Broad Street Research Ltd. (OBSR), provider of fund research, ratings and investment consulting services in the United Kingdom Privately held April 12, 2010[45] April 12, 2010[45] US$18.3 million[45]
Seeds Group, provider of investment consulting services and fund research in France Privately held May 17, 2010[46] July 1, 2010[47] Not disclosed[46]
Annuity intelligence business of Advanced Sales and Marketing Corp. (ASMC), producers of The Annuity Intelligence Report Privately held October 21, 2010[48] November 1, 2010[49] US$14.1 million[48]
Remaining ownership interest in Morningstar Danmark A/S Phosphorus A/S June 17, 2010[50] July 1, 2010[51] US$15.2 million[51]
Annuity Intelligence Business Advanced Sales and Marketing Corp. (ASMC) October 21, 2010[48] November 1, 2010[49] US$14.1 million[49]
Remaining ownership interest in Morningstar Sweden AB Stadsporten Citygate AB and two private investors May 2, 2013[52] Not disclosed US$13 million[52]
ByAllAccounts, Inc., a provider of data aggregation technology for financial applications Privately held April 1, 2014[53] April 1, 2014[53] US$28 million[53]
HelloWallet Holdings, Inc., a leading provider of online financial wellness Privately held May 29, 2014[54] June 3, 2014[55] US$52.5 million[55]

Corporate identity[edit]

Morningstar's current logo is notable in that it was designed by legendary graphic designer Paul Rand. Mansueto sought Rand out in 1989 after deciding that the company's design standards needed to be improved, and that the first step would be a redesign of its logo.[56] After several phone calls, letters and finally a trip to meet Rand in person, Mansueto convinced him to work on the logo, which was completed within four months.[56] The new design features the "o" in Morningstar appearing as a rising sun, which is a nod to the quote that inspired the company's name.[5] While the fee for this work ($50,000) was a significant amount at the time for the company, Mansueto considers it "one of our most valuable assets".[56]

Awards[edit]

Morningstar honors managers, funds, fund managers, and fund groups throughout the year with a series of awards known as The Morningstar Awards. To win, a nominee must have outperformed competition over one-, three-, and five-year periods. [57]

Fund Manager of the Year[edit]

Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers’ funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders’. Nominated funds must be Morningstar Medalists--a fund that has garnered a Morningstar Analyst Rating of Gold, Silver, or Bronze. The Fund Manager of the Year award winners are chosen based on Morningstar's proprietary research and in-depth qualitative evaluation by its fund analysts. A full listing of past winners can be found on Morningstar's corporate website.[58]

CEO of the Year[edit]

In the United States, Morningstar annually recognizes a chief executive who exhibits exemplary corporate stewardship, demonstrates independent thinking, creates lasting value for shareholders, and has put his or her stamp on an industry. Morningstar introduced its CEO of the Year award in January 2000. Winners are chosen by senior members of Morningstar’s equity analyst team based on their in-depth independent research. The 2013 recipient was E. Hunter Harrison, CEO of Canadian Pacific Railway.[59] A full listing of past winners can be found on Morningstar's corporate website.[60]

See also[edit]

References[edit]

  1. ^ a b c "Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2013 Financial Results". Retrieved May 14, 2014. 
  2. ^ "Morningstar, Inc. Fact Sheet March 2014". Retrieved March 27, 2014. 
  3. ^ a b "Everything I Know, I Learned from Warren Buffett, Corporate Culture Article - Inc. Article". Retrieved May 3, 2007. 
  4. ^ "Joe Mansueto and Bill Nygren: The Importance of Having Conviction". Retrieved May 3, 2007. 
  5. ^ a b c Fetterman, Mindy (November 14, 2005). "USATODAY.com - Can he turn magazine bust into a boom?". USA Today. Retrieved May 3, 2007. 
  6. ^ a b "A star is reborn after shake-up". USA Today. February 12, 2001. Retrieved May 21, 2007. 
  7. ^ "Company News; Softbank says it will invest $91 million in Morningstar". The New York Times. July 9, 1999. Retrieved May 3, 2007. 
  8. ^ "Morningstar Press Release". Retrieved May 3, 2007. 
  9. ^ "MORN Insider Activity". Retrieved April 30, 2014. 
  10. ^ "Morningstar Press Release". Retrieved July 28, 2014. 
  11. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  12. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  13. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  14. ^ a b "Morningstar Press Release". Retrieved April 21, 2007. 
  15. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  16. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  17. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  18. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  19. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  20. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  21. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  22. ^ "Morningstar Press Release". Retrieved April 21, 2007. 
  23. ^ "Morningstar Press Release". Retrieved February 24, 2008. 
  24. ^ a b "Morningstar Press Release". Retrieved February 24, 2008. 
  25. ^ "Morningstar Press Release". Retrieved March 4, 2009. 
  26. ^ "Morningstar Press Release". Retrieved March 4, 2009. 
  27. ^ a b "Morningstar Press Release". Retrieved March 4, 2009. 
  28. ^ a b [1]
  29. ^ a b "Morningstar Press Release". Retrieved March 6, 2009. 
  30. ^ a b c "Morningstar Press Release". Retrieved March 6, 2009. 
  31. ^ "Morningstar Press Release". Retrieved March 6, 2009. 
  32. ^ "Morningstar Press Release". Retrieved April 29, 2014. 
  33. ^ "Morningstar Press Release". Retrieved April 29, 2014. 
  34. ^ a b "Morningstar Press Release". Retrieved April 29, 2014. 
  35. ^ "Morningstar Press Release". Retrieved April 29, 2014. 
  36. ^ "Morningstar Press Release". Retrieved December 15, 2009. 
  37. ^ "Morningstar Press Release". Retrieved December 31, 2009. 
  38. ^ "Morningstar Press Release". Retrieved December 15, 2009. 
  39. ^ a b c "Morningstar Press Release". Retrieved October 14, 2011. 
  40. ^ "Morningstar Press Release". Retrieved February 14, 2013. 
  41. ^ a b "Morningstar Press Release". Retrieved October 14, 2011. 
  42. ^ "Morningstar Press Release". Retrieved October 14, 2011. 
  43. ^ a b "Morningstar Press Release". Retrieved October 14, 2011. 
  44. ^ "Morningstar Press Release". Retrieved October 14, 2011. 
  45. ^ a b c "Morningstar Press Release". Retrieved October 14, 2011. 
  46. ^ a b "Morningstar Press Release". Retrieved October 14, 2011. 
  47. ^ "Morningstar Press Release". Retrieved October 14, 2011. 
  48. ^ a b c "Morningstar Press Release". Retrieved October 14, 2011. 
  49. ^ a b c "Morningstar Press Release". Retrieved October 14, 2011. 
  50. ^ "Morningstar Press Release". Retrieved April 29, 2014. 
  51. ^ a b "Morningstar Press Release". Retrieved April 29, 2014. 
  52. ^ a b "Morningstar Press Release". Retrieved April 29, 2014. 
  53. ^ a b c "Morningstar Press Release". Retrieved April 29, 2014. 
  54. ^ "Morningstar Press Release". Retrieved July 28, 2014. 
  55. ^ a b "Morningstar Press Release". Retrieved July 28, 2014. 
  56. ^ a b c "Corporate Design Foundation - @issue journal". Retrieved May 21, 2007. 
  57. ^ "Morningstar Press Release". Retrieved February 2, 2013. 
  58. ^ "Morningstar Press Release". Retrieved April 29, 2014. 
  59. ^ "Morningstar Press Release". Retrieved April 29, 2014. 
  60. ^ "Morningstar Press Release". Retrieved April 29, 2014. 

External links[edit]