|Day's Range||1.3000 - 1.3000|
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 full-year and December 2019. Despite the S&P; 500 gaining 31.5% in 2019, active U.S. equity funds saw $41.4 billion in outflows, the sixth year of net outflows during the decade-long bull market. Meanwhile, passive U.S. equity funds had $162.8 billion in inflows, finishing the year with 51.2% market share based on total assets. 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.
Morgan Stanley has slapped an “underweight” rating on Saudi Aramco, as the bulk of the Wall Street banks that advised on its initial public offering stopped short of recommending investors load up on the ...
(Bloomberg) -- Billionaire Cliff Asness’ quantitative firm, AQR Capital Management, is dismissing between 5% and 10% of its global workforce after its funds underperformed and lost assets last year.It’s the second straight year that AQR, which has about 900 employees, is cutting staff. Affected employees are being told Wednesday, according to a person with knowledge of the firm.“This continues to be a challenging time for the asset management industry,” Suzanne Escousse, AQR’s chief marketing officer, said in an email Wednesday. “After conducting our annual review, we made the difficult decision to reduce headcount to balance the size of our workforce with the current needs of our clients.”Asset managers are struggling as investors bolt for inexpensive index funds, putting pressure on fees at a time when active investments are underperforming. AQR’s job cuts come a year after it reduced its headcount by a low single-digit percentage. The firm’s assets have fallen by almost 20% to $185 billion in the year ended September 2019, the biggest decline in recent years.Asness in May said that stock picking by quants had been “terrible.” In the following months, his firm sought to sublet space at its Greenwich, Connecticut headquarters after coming off a tough year in 2018 when most of its funds failed to make money and investors pulled capital.AQR’s U.S. mutual funds had outflows of $5.3 billion last year and $8.1 billion in 2018, according to data from Morningstar Inc.Asness, 53, co-founded AQR in 1998 and helped popularize risk-parity strategies, which aim to spread risk equally across different asset classes based on historical and expected volatilities to produce smoother returns.Fund PerformanceAQR manages about 100 long-only and alternative funds. Among the biggest is its $2.1 billion Style Premia Alternative Fund lost 8.2% last year, underperforming a U.S. Three-month Treasury bill index, according to the firm’s website. Its $4.4 billion Managed Futures Strategy Fund gained 1.9%, trailing the same benchmark, the website showed.Some of AQR’s smaller funds have done better. Its $245 million International Defensive Style Fund gained 18.4% last year, while its Multi-Asset fund rose 21%, according to the website. It has $137 million in assets.Escousse said Wednesday that firm remains committed to “our investment philosophy, process and strategies, and believe that today’s action contributes to the long-term health and strength of our business.”The cuts come four years after AQR was awarded $35 million in loan and grants from the state of Connecticut to expand its headquarters over the next 10 years. In exchange for the aid, the firm said it would create at least 200 jobs.AQR has added 229 jobs in the state, according to a January 2019 report by the state’s Department of Economic and Community Development. Jim Watson, a spokesman for the department, had no immediate comment on how the job cuts would affect the incentives. An AQR representative didn’t immediately return a message seeking comment.(Updates with mutual fund outflows in sixth paragraph)\--With assistance from Martin Z. Braun.To contact the reporter on this story: Saijel Kishan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Mamudi at email@example.com, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
CHICAGO , Jan. 7, 2020 /PRNewswire/ -- Morningstar, Inc. (MORN) today announced it has appointed Ron Bundy to lead the evolution and growth of its global Morningstar Indexes business. Bundy joined the firm in December as managing director, Morningstar Indexes. "We are fortunate Morningstar Indexes has grown to a position where we can attract such accomplished leadership," said Kunal Kapoor , chief executive officer, Morningstar.
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 November 2019. Overall, U.S. equity funds totaled $2.9 billion in outflows, which was modest compared to October's $14.5 billion in outflows. 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 using changes in shares outstanding.
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its biennial global study of investor returns, "Mind the Gap," which measures how opportunely investors have timed their fund investments. The study estimates the performance of the average dollar invested in a fund and compares it to the fund's time-weighted return. The difference, or "gap", represents the impact that the timing of investors' purchases and sales had on the investment outcomes they achieved. The study finds that the return on the average dollar invested in funds lagged the average fund's return in most of the seven markets studied.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
Stocks and bonds, domestic and international—all have posted nicely positive returns, along with real estate investment trusts and precious metals. Real assets, such as commodities and energy-related master limited partnerships, have been among the few downers. A 60/40 mix of the (ticker: SPY) and (AGG)—exchange-traded funds that track the most widely used benchmarks for the U.S. equity and fixed-income markets—have returned 19.20% for the year, through Wednesday, according to (MORN) That’s the sort of showing that would please most equity-only investors in a typical year, although putting all your chips in the SPDR ETF would have generated a 26.36% return.
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 Jan. 31, 2020 to shareholders of record as of Jan. 3, 2020. The 7.1 percent increase from the prior quarterly rate of 28 cents per share results in an annualized dividend of $1.20 per share compared with the prior annualized rate of $1.12 per share.
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CHICAGO , Nov. 19, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) ...
A new academic paper says Morningstar has faulty data for its bond-fund star ratings, a claim the company disputes.
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