|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||116.82 - 122.97|
|52 Week Range||102.59 - 166.59|
|Beta (5Y Monthly)||0.92|
|PE Ratio (TTM)||33.75|
|Earnings Date||Apr 28, 2020|
|Forward Dividend & Yield||1.20 (1.08%)|
|Ex-Dividend Date||Jun 30, 2020|
|1y Target Est||N/A|
(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 firstname.lastname@example.org.
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 email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis 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.
The industry’s gender gap is narrowing as the benefits of diversity become more apparent. The Barron’s 100 Most Influential Women in U.S. Finance honors those paving the way.
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.
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 April 30, 2020 to shareholders of record as of April 3, 2020.
(Bloomberg Opinion) -- Mitsubishi UFJ Financial Group Inc. is investing more than $700 million in Southeast Asian ride-hailing giant Grab. It’s a three-way deal in which everyone gets what they currently lack.The Japanese megabank and the Singapore-headquartered “superapp,” a one-stop online shop spanning food to finance, get to plug gaps in their businesses. They also keep one of Grab’s existing backers sweet: Softbank Group Corp.’s founder Masayoshi Son will avoid the possibility of an inconvenient cash call from one of his most promising unicorns.It's no secret that Japanese banks are under pressure to expand overseas as negative interest rates bite at home. Fast-growing Southeast Asia offers an alternative. But there's a catch. Consumer spending in countries like Indonesia, where MUFG owns PT Bank Danamon, is going digital very rapidly — the region’s internet economy is expected to triple to $300 billion by 2025. That’s a lucrative pie for all banks and fintech firms. However, Japan’s banks aren’t exactly known for their digital spurs. Backing Grab gives the biggest Japanese lender a chance to earn them. MUFG intends to market a range of financial services from insurance to loans to Grab’s users, Taiga Uranaka of Bloomberg News reported Wednesday. What’s in it for Grab? After acquiring Uber Technologies Inc.’s Southeast Asian operations two years ago, Grab is transforming itself from a ride-hailing service into an umbrella app with finance at its core. It hopes to pick up an online-only banking license in Singapore this summer. That alone will require Grab and its partner Singapore Telecommunications Ltd. to bring S$1.5 billion ($1.1 billion) in capital. Expanding the model elsewhere will be tricky if the unicorn relies too much on SoftBank and its Vision Fund, which it tapped for $1.5 billion last year.Enter MUFG, which has plenty of capital to underwrite credit risk in Indonesia, Thailand and the Philippines — countries where it already controls local retail banks. Those units can score borrowers looking for loans on the Grab app, as well as put up the actual funding. Having the regional network of a deep-pocketed Japanese institution in its corner should help Grab compete better against rival superapp Gojek, which has allied itself with Singapore's largest lender, DBS Group Holdings Ltd.(1)As for SoftBank, there must be huge sighs of relief all around. A core startup in its $100 billion Vision Fund’s portfolio won’t be relying on it for more cash. That’s one less mouth to feed in the wake of disastrous bets like office-sharing group WeWork — on which SoftBank took a $4.6 billion writedown — and dog-walking app Wag. SoftBank last week reported a 99% slump in operating profit for the quarter ended Dec. 31, and unveiled plans Thursday to borrow as much as 500 billion yen ($4.5 billion) by putting up shares of its Japanese telecom unit as collateral. Amid widening losses and mass layoffs at Oyo Hotels and Homes, a big SoftBank bet in India, funding Grab’s ambitious expansion is probably beyond Son’s present reach. And Grab must know that constraint.Yet, as Morningstar Inc. analyst Michael Makdad puts it, SoftBank is one of the biggest corporate borrowers for Japanese banks, one no large lender can afford to ignore or annoy. Writing a check for Grab gives MUFG a welcome chance to iron out any wrinkles from last year when it reportedly balked at contributing to a rescue package for WeWork. Learning new digital banking skills it can bring to its home market will be a bonus. Grab has plenty of room for Masa and his bankers to share the ride. (1) Interestingly, MUFG's leasing affiliate invested an undisclosed sum in Gojek last year.To contact the authors of this story: Nisha Gopalan at email@example.comAndy Mukherjee at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of 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.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.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), a leading provider of independent investment research, today announced fourth-quarter and full-year 2019 financial results driven by strong revenue growth and cash flow.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.He’s not even the boss yet, but Mitsubishi UFJ Financial Group Inc.’s Hironori Kamezawa is already making his mark on Japan’s biggest bank.As the leader of MUFG’s digital push, Kamezawa is spearheading the lender’s $700 million investment in Singapore tech giant Grab, people with knowledge of the matter said. The deal, which equates to about 5% of Grab’s current estimated $14 billion value, may help MUFG tap the ride-hailing startup’s millions of app users and deepen its presence in Southeast Asia.Kamezawa, 58, was named chief executive officer last month, and he will take the post in April to steer the bank through challenges ranging from negative interest rates to the need to modernize services. Analysts have expected MUFG to accelerate its financial-technology efforts under the new leader, who has already been helming projects including the development of the bank’s digital coin.“Kamezawa as new CEO would like to put his imprint on the strategic direction at an early stage,” said Michael Makdad, an analyst at Morningstar Inc. in Tokyo.Read more on MUFG’s next chief executive The University of Tokyo mathematics graduate is a rare breed in an industry where most elites have either law or economics backgrounds. He has been digital transformation officer since 2017, overseeing efforts ranging from introducing more automation at branches to driving a blockchain payments initiative with U.S. firm Akamai Technologies Inc.Depending on the price paid for Grab, Kamezawa will need to justify the investment with synergies that boost MUFG’s Asian business, Makdad said.The deal is set to be MUFG’s biggest investment in a tech startup. Through the alliance, it intends to market a range of financial services from insurance to loans to Grab’s users, said a person familiar with the deal who wasn’t authorized to discuss the matter publicly.Grab is trying to build a regional super-app that offers a range of services including finance, payments and rides. The startup doesn’t disclose its number of users, but says its app has been downloaded onto more than 166 million mobile devices in the region.The digital hook-up would complement MUFG’s growing physical standing in Southeast Asia, through its units including Bangkok-based Bank of Ayudhya Pcl and the recently acquired PT Bank Danamon Indonesia.Read Gopalan and Mukherjee on MUFG, Grab and what it means for SoftbankIt could also give MUFG know-how in developing digital offerings at home, where the retail banking system remains heavily burdened by a reliance on cash and paperwork at branches. MUFG is even offering to pay customers to give up their passbooks and migrate to online platforms.“This is a noteworthy deal if true, since it could push forward MUFG’s offering of financial services on apps,” said Ken Takamiya, an analyst at Nomura Holdings Inc. in Tokyo. “The question is how fast they can start offering services and how the experience gained there will be utilized in the domestic business.”\--With assistance from Yoolim Lee.To contact the reporters on this story: Taiga Uranaka in Tokyo at firstname.lastname@example.org;Yuki Hagiwara in Tokyo at email@example.comTo contact the editors responsible for this story: Marcus Wright at firstname.lastname@example.org, Russell WardFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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 January 2020. Overall, long-term funds gathered $82.8 billion in January, their best month since January 2018. Fixed-income funds continued to take in assets, building upon a record 2019. Notably, taxable-bond funds collected a record $63.6 billion for the month and accounted for nearly 77% of all long-term fund inflows in January. 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.
A company that ignores ESG risks could incur significant costs that jeopardizes its ability to earn long-term, sustainable profits.
Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its eighth annual Global Fund Flows Report examining worldwide 2019 mutual fund and exchange-traded product (ETP) fund flows. Overall, long-term global flows (excluding money-market funds) nearly doubled in 2019 to $1 trillion. On a net basis, nearly all $1 trillion in long-term flows went into fixed-income funds, which received record inflows and surpassed the prior record of $869 billion set in 2017.