|Bid||28.12 x 800|
|Ask||165.15 x 1100|
|Day's Range||148.52 - 153.83|
|52 Week Range||102.59 - 166.59|
|Beta (5Y Monthly)||0.74|
|PE Ratio (TTM)||38.91|
|Earnings Date||Jul 23, 2020 - Jul 27, 2020|
|Forward Dividend & Yield||1.20 (0.80%)|
|Ex-Dividend Date||Jul 01, 2020|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Pandemics shouldn't make small banks adventurous. Tell that to Japan's lenders.Shinsei Bank Ltd. is making its biggest overseas acquisition, buying a consumer-finance unit from Australia & New Zealand Banking Group Ltd. for the equivalent of about $480 million, according to a statement Tuesday from the Tokyo-based lender. Aozora Bank Ltd., also based in Tokyo, said in January it would purchase a 15% stake in Vietnam’s Orient Commercial Joint Stock Bank Ltd. for an undisclosed sum, its first foreign foray in more than a decade.Like the rest of Japan’s banking sector, the lenders are struggling with low interest rates and aging demographics that have depressed returns in their home market. It’s questionable whether seeking better growth opportunities overseas offers a path out of their troubles, though, especially when coronavirus lockdowns have devastated economies across the globe. Focusing on their domestic challenges may be a more sensible path.For Shinsei, there’s the added concern that it may be overpaying. The price Shinsei has agreed for UDC Finance Ltd., New Zealand’s largest non-bank lender, is more than the $461 million that HNA Group offered in 2017, before the country’s regulators rejected the bid because of the Chinese conglomerate’s opaque ownership structure. Before its debt-fueled buying spree attracted the ire of Beijing, HNA had acquired a reputation for paying over the odds.The UDC price equates to 1.2 times net tangible assets. Anything above 1 gives rise to goodwill, exposing Shinsei to the risk of writedowns if anything goes wrong. That’s a prospect that the lender, which itself trades at about 0.32 times forward book, can ill afford. Bad loan costs are set to surge for Japanese banks, and Shinsei estimates the acquisition will pare its capital adequacy ratio by 0.4 percentage point. At 10.8% post-deal, the ratio will be well below that of Japan’s biggest banks, according to Bloomberg Intelligence analyst Shin Tamura.Mitsubishi UFJ Financial Group Inc. booked a $1.9 billion one-time charge for the quarter ended Dec. 31 because of a drop in the share price of an Indonesian subsidiary. The megabank is far bigger than Shinsei and a savvier international investor.The ANZ unit purchase threatens to distract Shinsei from its strong consumer leasing franchise in Japan, where it’s one of the four big players alongside MUFG’s Acom, Sumitomo Mitsui Financial Group Inc.’s Promise, and Aiful Corp.Aozora’s strategy is open to similar objections. The bank plans to help Vietnam’s Orient Commercial with risk management and compliance systems based on international standards, and they will work together on digital banking and investment banking services, the Nikkei Asian Review reported in January. While the report valued the deal at only about $139 million, the investment will suck attention from its main business. Aozora has significant exposure to U.S. nonrecourse real estate lending, according to Michael Makdad, an analyst at Morningstar Inc. in Tokyo. Both Japanese banks have been reconstituted by overseas investors after earlier failures. Shinsei, formerly known as Long-term Credit Bank of Japan Ltd., was the first to be taken over by foreign private-equity firms when a consortium including Ripplewood Holdings LLC and J.C. Flowers & Co. bought the lender in 2000. Aozora was known as Nippon Credit Bank Ltd. before being taken over by Cerberus Partners LP.If the pair must do deals, perhaps they should consider reviving their merger that collapsed in 2010. At least that would keep their focus where it belongs. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The board of directors of Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today declared a quarterly dividend of 30 cents per share. The dividend is payable July 31, 2020 to shareholders of record as of July 2, 2020.
Morningstar, Inc. (Nasdaq: MORN) today announced that Morningstar Credit Ratings (MCR) has entered into a settlement with the United States Securities and Exchange Commission (SEC) to resolve an investigation into whether certain activities of MCR's asset-backed securities staff in 2015 to 2016 complied with sales and marketing rules applicable to Nationally Recognized Statistical Rating Organizations.
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its annual Target-Date Strategy Landscape Report. The 2020 report examines investors' usage of target-date strategies throughout 2019 and amid recent market volatility, as well as key trends behind target-date adoption, how firms are adapting to meet investor preferences, and recent regulatory changes that may alter the target-date landscape going forward.
Morningstar (NASDAQ:MORN) shares have had a really impressive month, gaining 35%, after some slippage. Unfortunately...
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced first-quarter 2020 financial results.
CHICAGO , April 27, 2020 /CNW/ -- Morningstar, Inc. (MORN), a leading provider of independent investment research, today published the second chapter of its biannual Global Investor Experience (GIE) report. The report, now in its sixth edition, assesses the experiences of mutual fund investors in 26 markets across North America , Europe , Asia , and Africa .
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced that its Annual Shareholders' Meeting on Friday, May 15, 2020 at 9 a.m. CT, will be held virtually at www.virtualshareholdermeeting.com/MORN2020. The virtual-only format is due to the public-health impact of the coronavirus (COVID-19) pandemic, the executive order in effect in Illinois that limits gatherings of more than 10 people, and to support the health and well-being of its employees, shareholders, and community.
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced it has reached an agreement to acquire Sustainalytics, a globally recognized leader in environmental, social, and governance (ESG) ratings and research. Morningstar currently owns an approximate 40% ownership stake in Sustainalytics, first acquired in 2017, and will purchase the remaining approximate 60% of Sustainalytics shares upon closing of the transaction.
TORONTO , April 17, 2020 /CNW/ -- Great Place to Work® Institute Canada has named Morningstar Research Inc. ( Morningstar Canada ), a subsidiary of independent investment research provider Morningstar, Inc. (MORN), as one of this year's "Best Workplaces in Canada ", for the eighth year in a row. "At Morningstar Canada, we strive to offer an environment that promotes wellness, personal and professional development, innovation, and collaboration," said Scott Mackenzie , president and CEO of Morningstar Canada .
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) flows for March 2020. As equities and pockets of the bond market sold off in March, long-term mutual funds and ETFs posted record outflows of $326 billion, or 1.7% of the industry's $19.7 trillion in assets at the end of February. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund, and net flow for U.S. ETFs by dividing reported net assets by shares outstanding.
(Bloomberg Opinion) -- With the coronavirus pandemic triggering wild price swings, hedge funds have got their dancing shoes on as they seek to make the most of volatile values and atone for their underperformance in recent years. While the temptation is for traders to load up on risk to boost profits and bonuses, strutting their stuff like drunken uncles at a particularly raucous wedding, a couple of recent blowups suggest that the risk managers charged with curbing those enthusiasms need to stand firm in setting and abiding by risk limits. At Graham Capital Management, which oversees about $15 billion and specializes in global macro, a portfolio manager called Jeremy Wien lost a ton of money speculating on equity volatility, a measure of how much share prices move that in March quadrupled in the space of a few short weeks. The scale of the loss — $500 million gone from a $4 billion absolute return fund, according to my colleagues at Bloomberg News — suggests the U.S. firm didn’t step in quickly enough to stanch the bloodletting once the cracks in the position started to appear.At H20 Asset Management, which ran into trouble last year after loading up on illiquid debt, a fund that lost 45% last month was downgraded by fund-rating firm Morningstar Inc. this week. H2O, which managed $34 billion at the end of last year, is run by Bruno Crastes and Vincent Chailley and backed by French bank Natixis SA. Morningstar singled out “bold macro bets” the pair are responsible for that it said “were not adequately reined in by formal risk controls” as its motivation for downgrading their Allegro fund to negative, the lowest level of its five-rung scale:We think the balance of power at H20 is too strongly tilted in favor of portfolio managers. As an example, risk management cannot force portfolio managers to adjust exposures immediately if a risk limit has been breached because of market movements rather than active changes.Risk managers at hedge funds need to be especially vigilant about the bets their traders are making to profit from current market dislocations or there's a danger they'll repeat the mistakes made by their banking peers that kindled the global financial crisis a decade ago, albeit on a shortened and potentially more explosive timescale.Back then, the risk management officers at the world’s biggest investment banks had found themselves unable to say “no” to increasingly risky bets . That had disastrous consequences for the economy. In an unsigned 2,000 word article published by the Economist in August 2008, an unidentified risk manager at what the weekly said was a large global bank admitted that the pursuit of profit had overridden prudence for several years:Most of the time the business line would simply not take no for an answer, especially if the profits were big enough. This made it hard to discourage transactions. If a risk manager said no, he was immediately on a collision course with the business line. The risk thinking therefore leaned toward giving the benefit of the doubt to the risk-takers.Banks — and their regulators — learned a hard lesson, and have curtailed many of their risk-seeking tendencies in the intervening years. The baton, though, has been passed on. So it’s vital that traders and portfolio managers in the investment community resist the temptation to chase returns by stepping outside of their risk boundaries. If they threaten to drift, risk officers should have the courage to restrain them — with the full and unconditional backing of their firm’s leaders and owners.At least one hedge fund has long understood the need for gatekeepers of the firm’s risk budgets to have the status to be able to stand up to its traders. In 2006, Alan Howard made Aron Landy, his chief risk officer, a partner at Brevan Howard Asset Management as a way to ensure he had sufficient clout to go head to head when disputes arose. Landy must have done a good job; he was promoted to chief executive officer in October when Howard stepped back from his management role to focus on trading. Meantime, Howard’s main $3.3 billion Master Fund is enjoying its best year since it started in 2003, and was recently up by more than 20% this year.Why should we care if a hedge fund chasing riches goes boom? Because, as Bank of England Chief Economist Andy Haldane said in a 2014 speech on the broader asset management industry, the danger of a fire sale of assets increases the possibility that “asset prices would be driven south, possibly to well below their long-term or fundamental value.”In short, a widespread market crash triggered by indiscriminate asset-dumping by failing hedge funds would affect all of our investments, be that in pension funds or other savings vehicles. “As long as the music is playing, you've got to get up and dance,” Charles Prince, who was then CEO of Citigroup Inc., told the Financial Times in July 2007, four months before mounting losses and writedowns led to his departure from the disco. Hedge funds should be boogying hard — but with half an eye on the door, and always, but always, accompanied by a chaperone in the shape of a respected risk officer with the power to turn down the volume.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Morningstar, Inc. (Nasdaq: MORN) plans to report its first-quarter 2020 financial results after the market closes on Wednesday, April 29, 2020. The company does not hold analyst conference calls; however, investors may submit written questions to Morningstar at email@example.com.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
Unfortunately for some shareholders, the Morningstar (NASDAQ:MORN) share price has dived 33% in the last thirty days...
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) fund flows for February 2020. Overall, investors backed away from U.S. equity funds and turned to perceived safe havens like bonds and cash, after the S&P; 500 turned down sharply amid fears of COVID-19 (coronavirus) gripping the markets. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund, and net flow for U.S. ETFs shares outstanding and reported net assets.
(Bloomberg Opinion) -- It’s only when the tide goes out that you find out who’s been swimming naked, the billionaire investor Warren Buffett famously opined. After the violent moves in stocks and bonds this week, H20 Asset Management’s traders need to keep hold of their Speedos.The firm, run by Bruno Crastes and Vincent Chailley and backed by French bank Natixis SA, saw its funds hammered by losses as stocks, oil and Italian bonds slumped on Monday. Its Multiequities fund declined by about 30% in a single day and erased six years of gains, while its Multibonds strategy lost 20%, as my colleagues at Bloomberg News reported on Wednesday.H20, which managed $34 billion at the end of last year, appears to have loaded up on wrong-way bets at exactly the wrong time. In a note to investors dated March 3 about its February performance, the fund manager said it had sold short-term volatility across U.S. and European equity markets; on Monday, the VIX index of U.S. equity volatility surged 30%.The fund had also increased its exposure to Italian government debt; on Monday, 10-year Italian yields surged 35 basis points to a two-month high of 1.44%. And its portfolios were long of oil — which plunged 25% on the first trading day of this week for its biggest price drop since the 1991 Gulf War.But this is exactly how hedge funds should behave. They’re supposed to be at the cutting edge of finance, taking risky bets on the trades they back and piling on the leverage when they sniff out a high-conviction profit opportunity. Otherwise, they’re just like any other mutual fund, albeit charging much higher fees.In 1992, for example, George Soros, arguably the most famous hedge fund manager of all time, made more than $1 billion for his Quantum Fund by betting on a break of the currency peg that the British authorities were defending between the pound and the currencies that would ultimately be subsumed into the euro. His gains, though, were amplified by his willingness to back what he saw as a winning trade.“Shorting the pound was Stanley Druckenmiller's idea; Soros's contribution was pushing him to take a gigantic position,” Scott Bessent, who was then running Soros's London office, told author Steve Drobny for his 2006 book “Inside the House of Money.” As Bessent explained, “George used to say,`If you're right in a position, you can never be big enough.’”Of course, when you’re wrong, it can backfire big time – as H20’s investors are learning.H20 has made no secret of its use of leverage in its pursuit of outsize returns which, by and large, has been a successful strategy in recent years. Its Multibonds fund, for example, has delivered a five-year return of more than 94%, compared with the 17% from the JPMorgan Chase & Co. benchmark against which its performance is measured, according to the H20 website. That’s quite a remarkable degree of outperformance — the kind of index-beating return that hedge funds claim to be able to supply to customers. Last June, after the Financial Times reported that H20 had loaded up on illiquid debt sold by German entrepreneur Lars Windhorst, Morningstar Inc. suspended the rating on one of its flagship funds. Investors responded by withdrawing almost 8 billion euros ($9 billion) from the firm in a month. Crastes and Chailley responded by delivering a masterclass in disaster management, featuring a robust video explanation of their rationale for making those investments.We’ll have to see whether H20’s clients are willing to stick with the firm during its current turbulent times. If they’re not, they might want to consider why they invested in a hedge fund in the first place.To contact the author of this story: Mark Gilbert at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
CHICAGO , March 3, 2020 /CNW/ -- Morningstar, Inc. (MORN), a leading provider of independent investment research, today announced it has reached an agreement to acquire PlanPlus Global, a financial-planning and risk-profiling software firm based in Canada . On the heels of Morningstar's acquisition of AdviserLogic in Australia late last year, this is another step to expand Morningstar's financial-planning capabilities for advisors around the globe.
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced the agenda for its 32nd annual Morningstar Investment Conference, set to convene Wednesday, June 3 through Friday, June 5, 2020 at McCormick Place Convention Center in Chicago.