|Bid||141.18 x 1000|
|Ask||141.45 x 800|
|Day's Range||141.11 - 143.10|
|52 Week Range||99.67 - 149.70|
|Beta (3Y Monthly)||0.96|
|PE Ratio (TTM)||34.95|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.12 (0.77%)|
|1y Target Est||75.00|
(Bloomberg) -- Natixis-backed H2O Asset Management, which until last week defied a slump in the industry with stellar returns, saw assets at a group of its largest funds experience their biggest ever single-day drop.After almost a decade of near-constant inflows, clients last week started to yank money from some of its funds over concerns about illiquid holdings tied to a controversial German businessman. The crisis worsened on Monday, the latest day for which figures are available, with assets in six of its funds down more than 5.6 billion euros ($6.4 billion) over just four days to less than 16 billion euros.On Tuesday, H2O said in a statement that outflows had slowed, with the money manager seeing some inflows on Tuesday. It didn’t provide any further details.H2O, founded by Bruno Crastes and Vincent Chailley in 2010 with the backing of French investment bank Natixis SA, attempted to stem the decline in assets last week with a series of measures meant to assure investors it can meet redemptions while making it more painful for those seeking to get out. The goal was to avoid a similar fate of Swiss asset manager GAM Holding AG and famed U.K. stock picker Neil Woodford which both froze funds amid an investor exodus.H2O moved hastily over the weekend to contain the crisis, selling some 300 million euros of unrated private bonds and marking down the remaining ones. The firm dropped its entry fees altogether and said it would appoint an independent auditor to restore investor confidence.The sale and a marking down of the non-rated corporate bond holdings across H2O’s range reduced the value of the rarely traded notes to 500 million euros, the company said in a statement on Monday, without elaborating on the size of the previous holdings.The crisis is also weighing on Natixis’s share price, which lost almost 12% last week and has yoyo-ed since Monday. This is partly because the funds have been lucrative for the bank. One strategy, H2O Multibonds, made more than 30% for its investors last year, according to data compiled by Bloomberg.H2O’s crisis started after the Financial Times showed the exposure of several of its funds to companies related to Lars Windhorst, a German financier with a history of troubled investments. Morningstar Inc., an influential research firm used by investors as a guide to buy or sell funds, subsequently suspended its bronze rating on the H2O Allegro fund on Wednesday over concerns about the “liquidity and appropriateness” of some of its holdings.The move led jittery investors, still reeling from star stock picker Woodford’s decision to freeze withdrawals from his flagship fund, to start yanking cash from H2O. More than a dozen of the firm’s funds allow clients to invest or exit on a daily basis.Until recently, H2O had been growing rapidly. Last year, the firm introduced entry fees of as much as 5% to slow the amount of new cash as several funds neared capacity. Between 2017 and the end of April, H2O’s assets doubled to $37.6 billion, according to an investor letter seen by Bloomberg.\--With assistance from Kateryna Hrynchak and Vivianne Rodrigues.To contact the reporter on this story: Lucca de Paoli in London at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Caroline Salas GageFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
CHICAGO , June 25, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN) plans to report its second-quarter 2019 financial results after the market closes on Thursday, July 25, 2019 . The company does ...
A version of this article first appeared in the May 2019 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website. Most Morningstar Medalist funds in the Morningstar 500 have relatively strong track records, and while bouts of underperformance are inevitable, few of those that are actively managed have overall Morningstar Ratings of 2 stars or less. Below, we examine the prospects of underperforming medalist funds in the Morningstar 500.
(Bloomberg) -- A group of Natixis SA fund assets dropped by 1.1 billion euros ($1.3 billion) on Thursday, a day after Morningstar Inc. raised concerns about one of the investment pool’s holdings and suspended its rating.The H2O Allegro fund’s assets, managed by Natixis-backed H2O Asset Management, declined by 225 million euros, according to the company’s website. That’s on top of a 113 million-euro fall on Wednesday, when the research and rating company published its report on that fund, data compiled by Bloomberg show. Three other funds, Adagio, Multi Aggregate and Multibonds, also saw their assets decline, bringing the combined one-day drop to more than 1 billion euros.New data show growing investor unease around H2O funds after Morningstar raised concerns about the “liquidity and appropriateness” of some corporate-bond holdings as well as potential conflicts of interest. Some of H2O’s funds, which allow clients to make daily withdrawals, hold rarely traded bonds issued by companies linked to controversial German financier Lars Windhorst.Morningstar’s decision to suspend the fund’s rating came after the Financial Times wrote about H2O’s exposure to the bonds.H2O’s assets have doubled to $37.6 billion since 2017, according to an investor letter seen by Bloomberg. A spokesman for H2O declined to comment.(Updates with FT article on the bonds in fourth paragraph.)To contact the reporters on this story: Nishant Kumar in London at email@example.com;Lucca de Paoli in London at firstname.lastname@example.org;Fabio Benedetti-Valentini in Paris at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Josh Friedman, Melissa KarshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.A Natixis SA macro fund that sent fresh tremors through Europe’s financial industry this week saw assets fall by a record on the day Morningstar Inc. raised concerns about its holdings.The H2O Allegro fund slumped by 113 million euros ($128 million) Wednesday, when the research and rating company published its report, according to data compiled by Bloomberg. That was its biggest one-day drop since it was started in 2011. At least two other funds also saw assets fall the most since inception that day.Morningstar suspended its rating on the Allegro fund, which is run by Natixis-backed H2O Asset Management, over concerns about the “liquidity and appropriateness” of some corporate-bond holdings as well as potential conflicts of interest. The fund, which allows clients to make daily withdrawals, holds rarely traded bonds issued by companies linked to controversial German financier Lars Windhorst. H2O founder Bruno Crastes sat on an advisory board of Windhorst’s investment vehicle Tennor Holding.H2O Asset Management as a whole saw clients pull about 600 million euros this quarter through June 20, the bank said today. It didn’t say how much of that came after the Morningstar report, but available fund data suggests much of it was pulled this week.Apart from the Allegro fund, H2O’s MultiAggregate and Adagio funds saw their biggest one-day declines Wednesday, adding up to a one-day slump of 325 million euros in the three investment pools combined. The figure reflects performance and client redemptions or subscriptions. A spokesman for H2O declined to comment on the drop in assets.The rating suspension and outflows come as a blow for one of Natixis’s most successful investment boutiques in Europe. Natixis Chief Executive Officer Francois Riahi and Jean Raby, who oversees the bank’s investment-management activities globally, moved to contain damage, asking Crastes to leave the Tennor board. He will be replaced by H2O’s Chief Investment Officer Vincent Chailley, according to a spokesman for the firm.Natixis fell as much as 6.3% in Paris trading after Thursday’s 12% loss. H2O’s woes are adding trouble for Riahi after a slump in trading revenue in the first quarter and losses on Korean derivatives announced in December.H2O, which runs more than a dozen funds that allow clients to invest or exit on a daily basis, has seen rapid growth over the past few years. Assets have doubled to $37.6 billion since 2017, according to an investor letter seen by Bloomberg. Growth over the past two years has boosted its funds to near full capacity, a level beyond which many funds stop taking fresh money for fear of harming returns. The firm instead imposed an entry fee of as much as 5% on some of its funds to curb inflows, according to its website.In a push to diversify its business, H2O has also started buying into external hedge fund managers. In 2017, the firm took a stake in Hong Kong-based startup Poincare Capital Management. It also acquired a majority stake in systematic investment firm Arctic Blue Capital started by former Millennium Management money manager Jean-Jacques Duhot.H2O Allegro, a global macro fund with 2.26 billion euros in assets as of Wednesday, returned 10% through June 19 this year on top of a 28% gain last year. That’s better than over 90% of peers, according to data compiled by Bloomberg, and even beats some of the best known macro hedge funds in the world.“The team and strategy are not for all investors,” said Richard Philbin, chief investment officer of Wellian Investment Solutions, which helps clients allocate about 1.7 billion pounds ($2.2 billion). Still, “the issues surrounding the Allegro fund are not necessarily contagious to other funds within the group offerings.”Woodford, GAMMorningstar’s decision to review the fund’s rating added to growing jitters in the fund management industry about liquidity. Neil Woodford, one of the U.K.’s most famous stock pickers, froze redemptions from his flagship equity fund, LF Woodford Equity Income, this month amid an investor exodus following months of poor performance. Swiss money manager GAM Holding AG is still in the process of unraveling hard-to-sell securities from a bond fund it froze last year.European investment rules require funds to have no more than 10% of their capital in less liquid securities. In the case of H2O, which invests in corporate borrowings, the line between illiquid and liquid is more difficult to draw, according to Matias Mottola, the analyst who covers H2O’s funds at Morningstar.When it comes to the liquidity of bonds, “it is a question of interpretation. We can’t make a final judgment,” Mottola said.To contact the reporters on this story: Fabio Benedetti-Valentini in Paris at email@example.com;Nishant Kumar in London at firstname.lastname@example.org;Lucca de Paoli in London at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, wrote a provocative op-ed in the New York Times last weekend. Titled “When Dead Companies Don’t Die,” it argues that unprecedented monetary stimulus from global central banks created a “fat and slow” world, dominated by large companies and plagued by a swarm of “zombie firms” — those that should be out of business but survive because of rock-bottom borrowing costs.I would add that central bankers are creating a horde of zombie investors as well.By now, bond markets have adjusted to the unabashedly dovish shift from European Central Bank President Mario Draghi and Federal Reserve Chair Jerome Powell. In the U.S., benchmark 10-year Treasury yields fell below 2% for the first time since Donald Trump was elected president, and some Wall Street strategists expect it’ll reach a record low around this time in 2020. Across the Atlantic, 10-year German bund yields plumbed new lows of negative 0.33%, French 10-year yields hit zero for the first time, and the entire yield curve in Denmark was on the cusp of turning negative.With any sort of risk-free yield largely zapped worldwide on the prospect of further monetary easing, is it any surprise what happened next? Investors turned to the tried-and-true playbook of grabbing anything risky. No matter that the global recovery has lasted nearly a decade, trade concerns abound and central banks see economic weakness — the S&P 500 Index promptly rose to a record high as investors mindlessly plowed in. And in a more specific example highlighted by my Bloomberg Opinion colleagues Marcus Ashworth and Elisa Martinuzzi, bond buyers were all-too-eager to snap up subordinated Greek bank debt from Piraeus Bank SA, which tapped European capital markets for the first time since the financial crisis. “The offer would have been unthinkable a year ago,” they wrote.Are these really the characteristics of healthy financial markets? It hardly seems ideal that individual investors, pensions and insurers are effectively forced into owning lower-rated bonds, equities or even alternative assets like timber to meet their return targets. In fact, that sounds like the textbook definition of a bubble. But as Sharma points out, permanently easy policy aims to create an environment in which those bubbles can’t pop.“Government stimulus programs were conceived as a way to revive economies in recession, not to keep growth alive indefinitely. A world without recessions may sound like progress, but recessions can be like forest fires, purging the economy of dead brush so that new shoots can grow. Lately, the cycle of regeneration has been suspended, as governments douse the first flicker of a coming recession with buckets of easy money and new spending. Now experiments in permanent stimulus are sapping the process of creative destruction at the heart of any capitalist system and breeding oversize zombies faster than start-ups.To assume that central banks can hold the next recession at bay indefinitely represents a dangerous complacency.”Time and again, market watchers will warn that the credit cycle is on the verge of turning. “The future looks pretty bleak,” Bob Michele, JPMorgan Asset Management’s head of global fixed income, said this week as he advocated selling into high-yield rallies. “We have probably the riskiest credit market that we have ever had,” Scott Mather, chief investment officer of U.S. core strategies at Pacific Investment Management Co., said last month. Morningstar Inc. just suspended its rating on a fund owned by French bank Natixis SA because of concerns about the “liquidity and appropriateness” of some corporate bond holdings, adding to jitters about a broader liquidity mismatch in the money-management industry.It’s hard to take this fretting too seriously when central banks persistently come to the rescue. What’s more, in many ways it’s in the best interest of all involved not to get too worked up about those risks.U.S. households and nonprofits had a combined net worth of $109 trillion in the first quarter of 2019, a record, according to Fed data. Dig a bit deeper, and it’s clear that a surge in the value of their equity holdings plays a crucial role. They directly owned $17.5 trillion of stocks, which represents 110% of their disposable personal income. That ratio reached 120% in the third quarter of 2018, very nearly topping the all-time high of 121.2% set just before the dot-com crash. Add in “indirectly held” stocks, and individuals look as exposed to equities as ever. At $12.3 trillion, those holdings were worth 78.6% of DPI in the third quarter, compared with 69.5% at the dot-com peak.To put it more plainly, since the start of the economic recovery in mid-2009, their total assets have increased by almost 70%. Financial assets(1) have appreciated 76%. Stock holdings have soared by more than 140%.Effectively, the sharp rally in equities has turbocharged a resurgence in the overall wealth of Americans. The prospect of losing those gains is almost too painful to think about. Perhaps that’s why, as DoubleLine Capital’s Jeffrey Gundlach pointed out in January, investors were “panicking into stocks, not out of stocks” during the late-2018 sell-off. “People have been so programmed” to buy the dip, he said, that it reminded him a bit of how the financial crisis developed. Call investors programmed; call them zombies — it’s the same thing.The Fed, for its part, argues that it’s doing good by sustaining the expansion. Notably, Powell said the economic recovery is starting to reach segments of the U.S. population that had been largely left out thus far — communities that “haven’t had a bull market” and “haven’t had just a booming economy.” Overall, he said officials don’t see signals that the U.S. is at maximum employment. Morgan Stanley’s Sharma argues wage growth is sluggish because bigger companies have more power to suppress worker pay, given that they crowd out (or acquire) startups and other competition.There are no easy answers to these large-scale problems. That includes central banks simply lowering interest rates or purchasing more government bonds. Powell said as much, noting “we have the tools we have.” But at least he has some room to maneuver toward a soft landing. The ECB, which has pushed yields on some corporate bonds in the region below zero, and the Bank of Japan, which owns large swaths of local exchange-traded funds, have done virtually no tightening and may soon need to ease even further.The most troubling part of this heavy-handed approach among central banks is that it eliminates the option for investors to earn any sort of return above inflation on safe assets. This delicate balance seems as if it can only last as long as business and consumer sentiment allows. It has been more than a decade since the Fed last cut interest rates, and during that period, it paid handsomely to be a zombie investor throwing money at the S&P 500. With the next easing cycle upon us, much is riding on the status quo prevailing.(1) Aside from stocks, this includes deposits, direct-benefit promises, non-corporate businesses and other financial assets.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Natixis said that its subsidiary H2O Asset Management had been hit with at least €600m of outflows, after the Financial Times revealed the scale of its holdings of illiquid bonds linked to a controversial German financier. as concerns around H2O have intensified, shaving close to €2bn off the bank’s market value. The crisis at London-based H2O, which oversees about €30bn of assets, was triggered by an FT Alphaville article on Tuesday that showed H2O’s latest filings collectively list investments in more than €1.4bn of illiquid bonds linked to Mr Windhorst, across six funds that allow retail investors to withdraw their money on a daily basis.
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
CHICAGO, June 18, 2019 /PRNewswire/ -- Morningstar, Inc. (MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) fund flows for May 2019. Overall, passive U.S. equity funds saw $2.7 billion in outflows while active U.S. equity funds lost $12.9 billion to outflows. With additional funds reporting assets after the April fund flows report published, Morningstar data shows about $89.0 billion between active and passive U.S. equity funds reaching parity.
Morningstar Inc NASDAQ/NGS:MORNView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for MORN with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MORN. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding MORN are favorable, with net inflows of $2.45 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Company Talk This column offers something different. I frequently discuss what makes mutual funds tick, but never so about companies. Doing so would be presumptuous. I have never been an equity analyst, nor I have ever run a business.
A properly constructed, long-term investment strategy, by definition, shouldn't require portfolio changes in response to market swings. Investors should remember that timing ups and downs of the bond market is hard, as it is with any investment. Sarah Bush, director of Morningstar Research Services' fixed-income manager research, notes that big bets on changes in the economy, especially significant adjustments to portfolio interest-rate sensitivity, can be difficult for even professional investors to get right consistently.
CHICAGO , June 10, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, has published a summary of Morningstar Analyst Rating™ activity for 161 ...
Artisan Partners Asset Management APAM has long earned Morningstar's admiration. As a result, Artisan has earned a Positive Parent rating, one of the pillars that support Morningstar Medalist designations for a number of Artisan funds. Of the 15 open-end strategies Artisan offers, 12 are on Morningstar's coverage list, and all of those have earned Morningstar Analyst Ratings of Bronze, Silver, or Gold.
In 2018, we introduced a more robust approach to evaluating alternative funds' performance that considers diversification benefits they might confer to a traditional portfolio. In this article, we've updated the results of our previous study as of March 31, 2019, and included more granular results using Morningstar's institutional categories, which include sub-strategies within the multialternative and market neutral Morningstar Categories. Event-driven funds, a sub-strategy within market neutral, have done particularly well over the trailing three years.
Most fixed-income investors can easily rattle off the so-called Big Three — S&P Global Ratings, Moody’s Investors Service and Fitch Ratings, which combined represented 95.8% of all outstanding U.S. ratings at the end of 2017, according to a Securities and Exchange Commission report. Congratulations to those who knew DBRS, formerly known as the Dominion Bond Rating Service.
First corporate AWS DeepRacer competition fuels hands-on learning in machine learning and artificial intelligence across more than 445 employees worldwide CHICAGO , May 30, 2019 /PRNewswire/ -- Morningstar, ...
Morningstar Direct and Office clients can access the full report here. Since Morningstar began covering 529 plans, the industry has consistently improved. Fees have fallen, underlying investment quality has increased, and oversight has strengthened.
CHICAGO, May 29, 2019 /PRNewswire/ -- Morningstar, Inc. (MORN), a leading provider of independent investment research, today announced it has entered into a definitive agreement to acquire DBRS, the world's fourth-largest credit ratings agency, for a purchase price of $669 million. The combination of DBRS with Morningstar Credit Ratings' U.S. business will expand global asset class coverage and provide an enhanced platform for providing investors with leading fixed-income analysis and research. "The chance to empower investors with the independent research and opinions they need across a multitude of securities first drove our decision to enter the credit ratings business," said Morningstar Chief Executive Officer Kunal Kapoor.