Morningstar continues to be a leader in research and investment management. In order to offer more comprehensive services to its customers, Morningstar has expanded its operations. In 2022, the company launched its Wealth Management Solutions group, which will integrate its current offerings with a broader wealth management strategy and platform. With offices in 29 countries, Morningstar`s analysis and recommendations are considered influential in the wealth management industry by financial journalists, and a positive or negative recommendation from Morningstar analysts can move money in or out of a particular fund.   Through its wealth management division, the firm currently manages more than $244 billion as of March 31, 2021.   In July 1999, Morningstar accepted a $91 million investment from SoftBank in exchange for a 20% stake in the company. The two companies had set up a joint venture in Japan the previous year.   Morningstar provides investment advisors with a single, end-to-end cloud platform known as the Morningstar Office Cloud. The software allows financial advisors to manage their practice, access data and research, analyze investments and communicate with investors.  Morningstar. „FAQ: How much does a Morningstar Premium membership cost?“ In October 2017, the Wall Street Journal published a front-page article criticizing Morningstar`s influence and questioning the predictive power of the company`s rating system.  In response, Morningstar provided quantitative analysis showing that higher-rated funds outperform lower-rated funds, but cautioned against using ratings as a final indicator of future performance.   Read what Morningstar experts have to say about these important actions.
For a limited time only. Founder Joe Mansueto came up with the idea for Morningstar in 1982 when he reviewed annual mutual fund reports he had requested from several prominent fund managers.  But it wasn`t until a year as an equity analyst for Harris Associates, where he closely observed the fund industry and potential competitors, that he was convinced the opportunity was there.   Morningstar was founded in 1984 from its one-bedroom apartment in Chicago with an initial investment of $80,000.  The name Morningstar comes from the last sentence of Walden, a book by Henry David Thoreau; „The sun is just a morning star.“   Morningstar ratings: Morningstar`s star rating system is often used to help investors choose from thousands of available mutual funds. The 1-5 rating is based on the fund`s historical risk-adjusted return and is generated entirely by mathematical measures – not human analysts. Morningstar, through its Investment Advisory subsidiary, also provides investment management services with more than $265 billion in assets under management. The company continues to expand into new markets and now operates in 29 countries. Filter: Look at thousands of stocks, ETFs and mutual funds to find investments that match your specific criteria. You can also save the selection criteria so you can find these investments next time with just a few clicks.
However, if you`re just hoping to get Morningstar Investor`s filtering tools, the subscription may not be right for you. Many of the major online brokers have equally robust filtering tools. While this assessment is a great starting point for your research, it`s important to emphasize that these reviews are retrospective and past performance is never a guarantee of future success. Morningstar filed for an IPO in May 2005 at a price of $18.50 per share. They opted for a unique method of issuing public shares called OpenIPO, similar to Google (GOOGL) in 2004. This is a variant of the traditional method that treats all qualified tenders impartially. This gives individual investors equal access to the share price offer. Morningstar went public on May 3, 2005 with 7,612,500 shares at $18.50 each.  The way Morningstar went public is remarkable.
They decided to follow in Google`s footsteps and use the OpenIPO method instead of the traditional method. This allowed individual investors to make an offer on the share price and gave all investors equal access. In 2017, Mansueto resigned as CEO and passed the torch to Morningstar Chairman Kunal Kapoor. Mansueto owns more than half of the company`s shares and is currently Executive Chairman. In April 2020, Morningstar announced that it had entered into an agreement to acquire Sustainalytics, a research and rating firm specializing in environmental, social and governance (ESG) perspectives.  The professional product line includes data, research and software to support and strengthen business operations. These include marketing and reporting solutions, global stock market data, investment planning services, and a variety of other products and services. Morningstar also provides rating services to corporations and other financial institutions. To be clear, Morningstar is not a brokerage. It is an independent source of unbiased research, analysis, commentary and ideas to help investors make a range of decisions, from individual investment selection to asset allocation. While there is some overlap between Morningstar`s research and analytics brokers and Morningstar`s services (and in fact, many brokers provide account holders with research from Morningstar and other providers), Morningstar`s depth and breadth of investor service is a powerful addition to help investors make informed decisions.
As of February 2015, Joe Mansueto held approximately 55% of Morningstar`s outstanding shares.  Morningstar considers the volatility and risk of funds when assigning ratings. Funds that are more volatile tend to have lower ratings than those with smaller return fluctuations. The company also provides software and data platforms to investment professionals, including Morningstar Direct and Morningstar Advisor Workstation. Morningstar is a respected and trusted source of independent investment research for all levels of fund and equity investors, from novices to seasoned professionals.