Morningstar Investment Management does not guarantee the results of its advice or recommendations, or that the objectives of a strategy will be achieved.Opinions expressed within the newsletters are as of the date of publication and subject to change without notice. Diluted and adjusted net income per share in the current period included $0.05 of non-operating gains, while the prior period included $0.51 of non-operating gains related to the sale of two equity method investments. Morningstar Experts; Morningstar Awards; WebFINRA-Reviewed Reports. PricingAnnual Subscription$199 Digital$219 Print (includes digital access). Annual U.S. home price gains are forecast to slow to 2.8% by November 2023. Based on the disclosures, the significant YTD operating margin pressure has been primarily driven by headcount growth, merit-based wage increases, and higher bonus expense. One silver lining of the bear market is half the stocks followed by Morningstar analysts are now undervalued. "A widening pool of investors is redefining the composition of a modern portfolio," said Kunal Kapoor, Morningstar's chief executive officer. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. PitchBook, Morningstar Data, and Morningstar Direct were the top contributors to full-year license-based organic revenue growth. Annual Report Mar-2012. Adjusted diluted net income per share increased by 17.8%. 7 charts on valuations as the stock market heads into 2023. How we use your information depends on the product and service that you use and your relationship with us. Year-over-year home price growth ended its 21-month streak of double-digit momentum in November, posting an 8.6% gain, the lowest rate of appreciation in exactly two years. Morningstar DividendInvestor features the Dividend Select six-figure real-money portfolio that aims to produce income while taking on lower risk. WebMorningstar Advisor Workstation Morningstar Office Cloud Morningstar Cloud Morningstar Retirement Manager Morningstar Managed Portfolios Morningstar Research Request an Annual Report; FAQs; Email Alerts; Annual Reports; RSS; Contacts; Careers; NewsRoom. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. The Hare portfolio aims to hold fast-growing companies with strong and improving competitive advantages. WebFINRA-Reviewed Reports. PricingAnnual Subscription$145 Digital$165 Print (includes digital access). Revenue increased 21.5% to $462.2 million; organic revenue increased 21.4%. Morningstar Advisor Workstation ; Morningstar Enterprise Components; Morningstar Annuity Intelligence; Events & Presentations; Resources. U.S. home prices (including distressed sales) increased 8.6% year over year in November 2022 compared to November 2021. Learn how it pdf. The respected growth manager died on Jan. 2, according to the firm. Read our editorial policy to learn more about our process. Adjusted operating margin was 21.3% versus 22.8% in 2020. And why the outlook looks rough from here. Terms of Service apply. Nevertheless, with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.. WebMorningstar Advisor Workstation Morningstar Office Cloud Morningstar Cloud Morningstar Retirement Manager Morningstar Managed Portfolios Morningstar Research Morningstar Data Morningstar Indexes Morningstar Enterprise Components . Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. The CoreLogic HPI is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 45 years of repeat-sales transactions for analyzing home price trends. Gear advertisements and other marketing efforts towards your interests. CoreLogic is a leading global property information, analytics and data-enabled solutions provider. Learn how it impacts everything we do. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. 2022 Morningstar, Inc. All Rights Reserved. On 1 February 2017, it assumed the entire operations of the Society. Is Morningstar raising the price for PitchBook and what level of price increases are targeted? For use with broadcast or web content, the citation must directly accompany first reference of the data. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Commentary on current events, such as ESG investing, that are relevant to an equity investing strategy. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Fourth-quarter operating income was $74.8 million, an increase of 14.9% compared with the prior-year period. For more information, visit www.morningstar.com/company. (2) License-based revenue includes PitchBook, Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, Sustainalytics, and other similar products. Deutsche Bank thinks a 5-6% range is possible. The portfolio seeks above-average dividend yields, typically between 3% and 5%. Copyright 2023 Morningstar, Inc. All rights reserved. The non-operating gains in the twelve months ended Dec. 31, 2020 relate to the $50.9 million holding gain on our previously held equity interest in Sustainalytics and the sale of two equity method investments. With a 30-year forecast horizon, CoreLogic HPI Forecasts project CoreLogic HPI levels for two tiers Single-Family Combined (both attached and detached) and Single-Family Combined Excluding Distressed Sales. As a companion to the CoreLogic HPI Forecasts, Stress-Testing Scenarios align with Comprehensive Capital Analysis and Review (CCAR) national scenarios to project five years of home prices under baseline, adverse and severely adverse scenarios at state, metropolitan areas and ZIP Code levels. (5) For the three and twelve months ended Dec.31, 2021, DBRS Morningstar recurring revenue derived primarily from surveillance, research, and other transaction-related services was 30.0% and 34.3%, respectively. cash provided by or used for operating activities less capital expenditures (free cash flow). Copyright 2022 Morning Star. (6) Investment Management revenue includes the contribution of the Morningstar Funds Trust, which records revenue as well as sub-advisory fees on a gross basis. Intra-issue commentary including a roundup of Morningstar analyst notes and new issue alerts. Commentary on current events, such as ESG investing, that are relevant to a fund investing strategy. Morningstar 529 Ratings: The Top Plans and What They Offer, What to Do With Extra Money in Your 529 Plan, 5 Charts Tracking Recent 529 Savings Plan Trends, 3 Women Who Are Changing the Financial Industry. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment.Investments in securities are subject to investment risk, including possible loss of principal. Where he sees opportunities and risks today. Morningstar Advisor Workstation ; Morningstar Enterprise Components; Morningstar Annuity Intelligence; Events & Presentations; Resources. Full-year operating expense increased 22.8%, driven higher by compensation costs, commissions, and professional fees that mirrored fourth-quarter trends. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. How we use your information depends on the product and service that you use and your relationship with us. A watchlist of stocks that could potentially fit with the portfolios investment mandates. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. A more complete description of these risks and uncertainties can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. Consider These Strategies, At the Holiday Table, Dont Fight About Politics, Religionor ESG, Retirement Plans Become New Battleground for ESG, What to Make of Reports that Assets Invested Sustainably Are Down, Oil and Gas ESG Risks Extend Beyond Carbon Emissions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Why Vanguard Total International Stock ETF Has an Advantage in 2023 and Beyond, The Tax Efficiency of ETFs Alleviated Some Pain for Investors in 2022, Why Municipal-Bond Funds Are Worth a Look. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. (1) Organic revenue excludes acquisitions, divestitures, the impacts of the adoption of new accounting standards, and the effect of foreign currency translations. "Our results demonstrate that we are rising to meet the opportunities created by this changing picture. A simple way to boost investment performance without adding risk. Terms of Service apply. How we use your information depends on the product and service that you use and your relationship with us. A watchlist of The FundInvestor 500, monthly performance data on the funds that should be on every investors radar. Commentary on current events, such as ESG investing, that are relevant to a dividend investing strategy. There can be no assurance that any financial strategy will be successful.Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. Morningstar presents organic revenue because the Company believes this non-GAAP measure helps investors better compare period-over-period results. Transparency is our policy. For questions, analysis or interpretation of the data, contact Robin Wachner at newsmedia@corelogic.com. https://www.businesswire.com/news/home/20230103005100/en/, Year-over-year home price appreciation was up for the 130, CoreLogic expects annual price changes to move into negative territory by the spring of 2023 before rebounding to about 2% to 3% growth in the fall. Carve out some time to discuss financial planning. consolidated revenue, excluding acquisitions, divestitures, adoption of new accounting standards, and the effect of foreign currency translations (organic revenue). Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. The higher the score, the higher the risk of a price reduction. Annual Reports; RSS; Privacy Policy and Develop and improve features of our offerings. Capital gains distributions are coming, but clients can avoid them. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Transaction-based revenue increased 36.7% year over year, or 35.3% on an organic basis, as robust issuance activity across structured finance asset classes drove revenue growth for DBRS Morningstar. A watchlist of dividend stocks that could potentially fit with the portfolios investment mandates. Consider these strategies to stretch out your tax savings during your retirement years. December 22, 2022 Based on the disclosures, the significant YTD operating margin pressure has been primarily driven by headcount growth, merit-based wage Morningstars team of manager research analysts annually assigns forward-looking, qualitative ratings to a subset of the 529 college savings plan universe based on 5 new themes for portfolios, including bonds, China, and active management. Morningstar Advisor Workstation Morningstar Office Cloud Morningstar Cloud Morningstar Retirement Manager Morningstar Managed Portfolios Morningstar Research WebAnnual Subscription $145 Digital $165 Print (includes digital access) Subscribe Sign in to the subscriber site. (1) Organic revenue for the twelve months ended Dec. 31, 2021 excludes Sustainalytics for the first six months of 2021. newsmedia@corelogic.com, View source version on businesswire.com: https://www.businesswire.com/news/home/20230103005100/en/. Luxembourg N K 230 Annual report and audited financial statement as of 31 March Just about the only safe haven from rising rates were these ultrashort bond funds. WebFINRA-Reviewed Reports. DIVIDENDINVESTOR Quality insights for current income and income growth If the data are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. In fact, dont fight at all. Florida and South Carolina recorded the highest annual home price gains, 18% and 13.9%, respectively. Nationwide, the recent price deceleration pushed November home values 2.5% below the spring 2022 peak. consolidated operating margin, excluding intangible amortization expense and all M&A-related expenses (including M&A-related earn-outs) (adjusted operating margin), consolidated diluted net income per share, excluding intangible amortization expense, all M&A-related expenses (including M&A-related earn-outs), and non-operating gains/losses (adjusted diluted net income per share), and. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. This press release contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. (3) Non-operating gains in the three months ended Dec. 31, 2020 relate to the sale of two equity method investments. The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. (7) Revised to reflect updated enterprise client reporting for Advisor Workstation to include clients in Canada. 6 Conversations About Money to Have With Your Family Over the Holidays, A Financial Guide on What to Do After College, Morningstar's Guide to Life-Stage Investing, Best International Companies to Own: 2023 Edition, Best Sustainable Companies to Own: 2023 Edition, Practice Made Perfect: How Advisors Can Solve the Capacity Problem, Why Advisors Should Bother With Tax Alpha, Who Does and Doesnt Get to Skip RMDs Under the New 10-Year Rule, 10 Questions With RBC Portfolio Manager Philippe Langham, Advisors, Help Your Clients Avoid This Nasty Year-End Tax Surprise, Get a Tax-Smart Plan for In-Retirement Withdrawals, Retiring in a Down Market? Year-over-year home price appreciation was up for the 130th consecutive month in November, but growth fell to single digits at 8.6% CoreLogic expects annual price Morningstar will make written responses to selected inquiries available to all investors at the same time in Form8-Ks furnished to the Securities and Exchange Commission, generally every month. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Maps to follow no matter where you are in your investing life. Our latest thinking and most sought-after analysis. This mornings fed futures were favoring almost 4.75%. On a consolidated basis, PitchBook, DBRS Morningstar, Sustainalytics, Morningstar Data, and Morningstar Indexes were the top five contributors of organic revenue growth in the fourth quarter of 2021. Operating income increased 19.4% to $257.0 million; adjusted operating income grew 14.7%. The commentary, analysis, references to, and performance information contained within Morningstar DividendInvestor and Morningstar StockInvestor, except where explicitly noted, reflects that of portfolios owned by Morningstar, Inc. that are invested in accordance with strategies managed by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc. Morningstar Investment Management manages portfolios using similar investment strategies for clients of the Morningstar Managed Portfolios program. These companies from various corners of the globe are well positioned for the future. Full-year 2020 net income was $223.6 million, or $5.18 per diluted share, which included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics and $0.51 of other non-operating gains. Morningstar encourages all interested parties including securities analysts, current shareholders, potential shareholders, and others to submit questions in writing. The indices are fully revised with each release and employ techniques to signal turning points sooner. Media Contact: In the current period, key contributors to operating expense growth included compensation, commissions, and professional fees. For the three and twelve months ended Dec.31, 2020, recurring revenue was 38.6% and 40.1%, respectively. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Adjusted operating margin was 19.8% in the fourth quarter of 2021, versus 22.3% in the prior-year period. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Copyright 2023 Morningstar, Inc. All rights reserved. Are Bonds a Better Bet Than Stocks Right Now? For sales inquiries, contact sales@corelogic.com. For more information, please visit www.corelogic.com. PitchBook, Sustainalytics, and Morningstar Data were the top contributors to license-based organic revenue growth in the fourth quarter of 2021. Asset-based revenue increased 18.4% year over year, or 17.1% on an organic basis, driven by Workplace Solutions, Morningstar Indexes, and Investment Management. Investors should seriously consider if the investment is suitable for them by referencing their own financial position, investment objectives, and risk profile before making any investment decision. CoreLogic data scientists combine world-class analytics with detailed economic and housing data to help determine the likelihood of a housing bubble burst in 392 major metros and all 50 states. Newsletters are provided for informational purposes only and has not been tailored to suit any individual. The Company has operations in29 countries. Can you please break down the drivers of the YTD operating margin contraction in terms of basis points. License-based revenue grew 18.3% year over year, or 18.5% on an organic basis. Develop and improve features of our offerings. We do not undertake to update our forward-looking statements as a result of new information or future events. Miami posted the highest year-over-year home price increase of the countrys 20 largest metro areas in November, at 21.3%, while Tampa, Florida retained the No. View original content to download multimedia:https://www.prnewswire.com/news-releases/morningstar-inc-reports-fourth-quarter-full-year-2021-financial-results-301490181.html, One Sheet These products and services are usually sold through license agreements or subscriptions. Annual Home Price Growth Slows to Two-Year Low in November, CoreLogic Reports. This site is protected by reCAPTCHA and the Google (8) Revised to reclass CIT assets previously reported in Institutional Asset Management to Custom Models/CIT. Morningstar FundInvestor is dedicated to helping investors pick mutual funds and build portfolios to meet their financial goals. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. The data are compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources. pdf. AERA Online Paper Repository. Thank you for your interest in our latest Fund Flows Commentary. Gear advertisements and other marketing efforts towards your interests. The answer may surprise you. With new model portfolios continually hitting the market, weve highlighted three series on Morningstars radar. Similarly, relatively more expensive Western areas also posted substantial combined declines in recent months since springs peak. Although home price growth has been slowing rapidly and will continue to do so in 2023, strong gains in the first half of last year suggest that total 2022 appreciation was only slightly lower than that recorded in 2021, said Selma Hepp, executive, deputy chief economist at CoreLogic. Investors and others may send questions about Morningstar's business to investors@morningstar.com. Pre-Retirees: Is Your Asset Allocation Too Aggressive? Vanguard is a prime example of how certain states policies can affect your investments, even if you dont live there. Before you take a loan from your retirement savings plan, consider an emergency fund. View the full release here: https://www.businesswire.com/news/home/20230103005100/en/, Figure 1: HPI & HPI Forecast Percentage Change YOY (Graphic: Business Wire). Develop and improve features of our offerings. Georgia posted the third-highest growth, with a 13.6% year-over-year increase. In 2023, home values will likely move even further from that high point, as CoreLogic expects price growth to begin recording negative year-over-year readings in the second quarter. These products and services are usually sold through license agreements or subscriptions. 05 Oct, 2017 BSE INDIA. Cash provided by operating activities increased 17.1% to $449.9 million. Annual Report Mar-2011. Cash provided by operating activities was $449.9 million for the full year 2021, compared with $384.3 million in 2020. Morningstar Advisor Workstation ; Morningstar Enterprise Components; Morningstar Annuity Intelligence; Events & Presentations; Resources. Organic revenue grew by 17.6% compared with the prior year. Adjusted diluted net income per share increased 17.8% to $6.36, compared with $5.40 in the prior year. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. WebMorningstar Inc. - AnnualReports.com Ticker MORN Exchange NASDAQ More Industry Information & Delivery Services More Sector Technology More 1001-5000 Employees How to determine whether your asset mix is out of whack, your overall portfolio diversification is lacking, or you own too many investments. Full-year 2021 operating income was $257.0 million, an increase of 19.4% compared with the prior year. What kind of fund is a mainstay in the rest of the world, but not the United States? For divestitures, we exclude revenue in the prior-year period for which there is no comparable revenue in the current period. Adjusted operating income was $363.4 million, an increase of 14.7% compared with the prior year. Market Risk Indicators is a multi-phase regression model that provides a probability score (from 1 to 100) on the likelihood of two scenarios per metro: a >10% price reduction and a 10% price reduction. Verify your identity, personalize the content you receive, or create and administer your account. Verify your identity, personalize the content you receive, or create and administer your account. Caution Concerning Forward-Looking Statements. Vanguard retirement specialist Maria Bruno shares tips for keeping your plan on track amid the turmoil. Develop and improve features of our offerings. Full-year 2021 net income decreased by 13.6% to $193.3 million, or $4.45 per diluted share, which included $0.05 of non-operating gains. Tel: 202-238-3200; Fax: 202-238-3250; e-mail: subscriptions@aera.net; Web site: http://www.aera.net Publication Type: Speeches/Meeting Papers; Reports - Research We sell different types of products and services to both investment professionals and individual investors. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Dividend stability is our top priority. Transparency is our policy. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Email alert when a trade occurs in either of the portfolios via the companion website, mdi.morningstar.com. Copyright 2023 Morningstar, Inc. All rights reserved. Free cash flow was $348.1 million in the full year 2021, compared with $307.6 million in the prior year. Follow Morningstar on Twitter @MorningstarInc. Gear advertisements and other marketing efforts towards your interests. Where Are Stocks Looking Cheap or Expensive? We sell different types of products and services to both investment professionals and individual investors. The trends toward personalization, focus on ESG factors, and greater allocations to alternatives continue to gather momentum, making our mission of empowering investor success as relevant as ever.". Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. While the market environment remains uncertain, there are a few key changes worth considering. Morningstar's Guide to Fixed-Income Investing, 5 Strategies for Portfolio Withdrawals in 2022, The SECURE Act, RMDs, and Beneficiaries: Another Wrinkle, Morningstar's Guide to Setting Your Withdrawal Rate, Why There Are More Opportunities for Tax-Loss Harvesting in 2022, How to Find Impact Investments for Your Portfolio. All other trademarks are the property of their respective owners. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Wed like to share more about how we work and what drives our day-to-day business. Privacy Policy and In the third quarter of 2020, Morningstar completed its acquisition of Sustainalytics. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. RMD Sticker Shock? Global funds. On top of this is this months doubling in the pace of quantitative tightening. Diluted and adjusted net income per share in the current year period included $0.05 of non-operating gains, while the prior period included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics and $0.51 per share of non-operating gains. WebMorningstar, Inc. 2021 Annual Report 7 Strategic Priorities our reliance on outside partners for services such as index calculation. Provide specific products and services to you, such as portfolio management or data aggregation. Three takeaways from the Morningstar ESG Commitment Level landscape. Annual Report Mar-2010. We believe these companies strong ESG management practices give them a long-term advantage. The Morningstar Managed Portfolios program is offered by the entities within Morningstars Investment Management group, which includes subsidiaries of Morningstar, Inc. that are authorized in the appropriate jurisdiction to provide consulting or advisory services in North America, Europe, Asia, Australia, and Africa. Markets are labeled as overvalued if the current home price indexes exceed their long-term values by greater than 10% and undervalued where the long-term values exceed the index levels by greater than 10%. As part of the CoreLogic HPI and HPI Forecasts offerings, Market Condition Indicators are available for all metropolitan areas and identify individual markets as overvalued, at value, or undervalued. These indicators are derived from the long-term fundamental values, which are a function of real disposable income per capita. What drives these firms competitive advantages varies by industry. Our firm is a PitchBook customer and we havent received a price increase for two years while nearly all of our other vendors have implemented meaningful price increases. There are likely some future winners in these out-of-favor growth and fixed-income funds. Although 16 states bucked the national trend and saw annual double-digit increases, appreciation is decelerating in many popular housing markets across the country. Balanced Portfolios for Income: The History, What Your Net Worth Statement Is Telling You, 2022 Year in Review and 2023 Market Outlook, Morningstars 2022 Recommended Reading List, Jennison Associates Co-Founder Spiros Sig Segalas Has Died, The Best Women-Run Companies to Own: 2023 Edition, Best Innovative Companies to Own: 2023 Edition, Best Financial-Services Companies to Own: 2023 Edition, The Outlook for Healthcare in the COVID Era. This site is protected by reCAPTCHA and the Google Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipients parent company without prior written permission from CoreLogic. Should I Start Investing With Stocks or Mutual Funds? CoreLogic HPI Forecasts are based on a two-stage, error-correction econometric model that combines the equilibrium home priceas a function of real disposable income per capitawith short-run fluctuations caused by market momentum, mean-reversion, and exogenous economic shocks like changes in the unemployment rate. 1430 K Street NW Suite 1200, Washington, DC 20005. Every issue contains our analysis of ETFInvestor's model portfolios, commentary and research on the investment issues of the day, and performance updates on our ETF coverage universe. Check out these recommendations from Morningstars employees. To supplement Morningstar's condensed consolidated financial statements presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), Morningstar uses the following measures considered as non-GAAP by the Securities and Exchange Commission, including: These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Excluding $16.6 million of M&A-related earn-out payments in the second quarter of 2021, operating cash and free cash flow would have grown by 21.4% and 18.6%, respectively. A watchlist of ETFs that could potentially fit with the portfolios investment mandates. The rate always has exceeded inflation by late cycle. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Ongoing product development efforts related to strategic growth areas increased capitalized software development by $3.4 million, which had a favorable impact on operating expense in the fourth quarter of 2021. The Company is executing its strategy and investing for long-term growth (for performance of the largest product areas and key metrics, refer to the Supplemental Data table contained in this release). Wed like to share more about how we work and what drives our day-to-day business. Do you bundle PitchBook with other products or do you have plans to? For us, these risks and uncertainties include, among others, failing to maintain and protect our brand, independence, and reputation; liability related to cybersecurity and the protection of confidential information, including personal information about individuals; liability for any losses that result from an actual or claimed breach of our fiduciary duties or failure to comply with applicable securities laws; compliance failures, regulatory action, or changes in laws applicable to our credit ratings operations, or our investment advisory, ESG, and index businesses; failing to respond to technological change, keep pace with new technology developments, or adopt a successful technology strategy; the failure to recruit, develop, and retain qualified employees; inadequacy of our operational risk management and business continuity programs in the event of a material disruptive event, including an outage of our database, technology-based products and services or network facilities; failing to differentiate our products and services and continuously create innovative, proprietary and insightful financial technology solutions; prolonged volatility or downturns affecting the financial sector, global financial markets, and global economy and its effect on our revenue from asset-based fees and credit ratings business; failing to maintain growth across our businesses in today's fragmented geopolitical, regulatory and cultural world; liability relating to the information and data we collect, store, use, create, and distribute or the reports that we publish or are produced by our software products; the failure of acquisitions and other investments to be efficiently integrated and produce the results we anticipate; the impact of the current COVID-19 pandemic and government actions in response thereto on our business, financial condition, and results of operations; challenges faced by our non-U.S. operations, including the concentration of data and development work at our offshore facilities in China and India; our indebtedness could adversely affect our cash flows and financial flexibility; and the failure to protect our intellectual property rights or claims of intellectual property infringement against us. Reconciliations of Non-GAAP Measures with the Nearest Comparable GAAP Measures (Unaudited). Reconciliation from cash provided by operating activities to free cash flow: ______________________________________________________________________. This resulted in an increase of $4.1 million in 2021 operating income. Monthly issue and commentary archives plus current data on the portfolios and watchlists. Prices of securities may fluctuate from time to time and may even become valueless. In-depth articles that speak to what's on investors' minds right now. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. On 1 February 2017, it assumed the entire operations of the Society. Owned by Morningstar, Inc., the the Tortoise portfolio focuses on high quality businesses, defined as having both durable competitive advantages and strong balance sheets. Our analysts and specialists put 2022s trends for stocks, bonds, and funds into perspectiveand look to the future with a fresh market outlook update. Do not use the data in any unlawful manner. Revenue for the period increased 21.5% to $462.2 million. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Wed like to share more about how we work and what drives our day-to-day business. Our global manager researchers share their must-reads, -watches, and -listens for 2022. What percentage of the cost structure is employee-related costs and how much has total compensation per employee increased in 2022? Foreign currency translation increased revenue by $26.7 million, or 1.9%, and operating expense by $22.6 million, or 1.9%, in 2021. In addition, Morningstar presents free cash flow solely as supplemental disclosure to help investors better understand how much cash is available after making capital expenditures. Morningstar,Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. If any of these risks and uncertainties materialize, our actual future results and other future events may vary significantly from what we expect. If youre enrolled in a 401(k) plan, here is what you need to know about this retirement savings vehicle. Transaction-based revenue increased by 31.2%, or 26.9% on an organic basis, primarily reflecting a strong year for DBRS Morningstar. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Higher compensation, driven largely by headcount increases in 2021, reflects further investments to support growth across many areas, including data collection and analysis, product and software development, and sales and service support. This site is protected by reCAPTCHA and the GooglePrivacy Policy and Terms of Service apply. By combining more than 20 years of data collection License-based revenue grew 21.1% year over year, or 15.4% on an organic basis. Falling markets can be scary for new retirees. The iShares Morningstar MidCap ETF (IMCB Quick Quote IMCB - Free Report) was launched on 06/28/2004, and is a passively managed exchange traded fund designed Unaudited Condensed Consolidated Statements of Income, Realized gains on sale of equity method investments, Holding gain on previously held equity interest, Income before income taxes and equity in net income of unconsolidated entities, Equity in net income of unconsolidated entities, _________________________________________________________________, NMF - Not meaningful, pp - percentage points, Unaudited Condensed Consolidated Statements of Cash Flows, Adjustments to reconcile consolidated net income to net cash flows from operating activities, Changes in operating assets and liabilities, net, Cash used for (provided by) investing activities, Payment for acquisition-related earn-outs, Effect of exchange rate changes on cash and cash equivalents, Net decrease in cash and cash equivalents, Cash and cash equivalents-beginning of period, Unaudited Condensed Consolidated Balance Sheets, Property, equipment, and capitalized software, net, Advisor Workstation clients (U.S. and Canada), Morningstar.com Premium Membership subscriptions (U.S.), Assets under management and advisement (approximate) ($bil), Asset value linked to Morningstar Indexes ($bil), Average assets under management and advisement ($bil), _____________________________________________________________________________. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Webab Asset management UBS Funds Annual Report 2021/2022 Investment Fund under Luxembourg Law R.C.S. However, 2023 will present its own challenges, as consumers remain wary of both the housing market and the overall economic outlook., And while the recent decline in mortgage rates may bode well for the housing market, Hepp continued, potential homebuyers are grappling with the idea of buying amid possible further price declines and a continued inventory shortage. WebMorningstar journeys at home, have the full Morningstar experience. Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, posted strong fourth-quarter revenue and cash generation, capping a See what Morningstar experts are saying about these key stocks. These statements involve known and unknown risks and uncertainties that may cause the events we discuss not to occur or to differ significantly from what we expect. 2 spot at 17.3%. This contribution represented $5.1million of revenue in the fourth quarter ended Dec.31, 2021versus $4.7million in the prior-year period. Professional fees increased due to ongoing M&A integration costs and the use of third-party resources for software and product development. The effective tax rate for the fourth quarter of 2021 increased to 24.7% versus 20.2% in the prior-year period. In-depth editorial on companies and a roundup of significant news events on the holdings in Morningstar, Inc.s Tortoise and Hare portfolios. Commission expense rose on strong fourth-quarter sales performance. Expert tips for keeping the peace during the holidays. Southeastern states still led the country for price growth in November but also saw some of the most pronounced cooling. These statements are based on our current expectations about future events or future financial performance. Inside Morningstar, Inc.'s 10-K Annual Report: Financial - Shares Highlight In December 2020, the board of directors approved a new share repurchase program that Morningstar's management team uses free cash flow to evaluate its business. CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI) and HPI Forecast for November 2022. WebFINRA-Reviewed Reports. Adjusted diluted net income per share decreased 4.5% to $1.50. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Use these resources to help you set up retirement savings, tackle debt, and begin investing. Measuring Transition Risk in Fund Portfolios White Paper, Integrating ESG Into Morningstar's Equity Research, Integrating ESG Into Morningstar Equity Research: FAQs, The Morningstar Capital Allocation Rating, Introducing the Morningstar Capital Allocation Rating: FAQs, The Morningstar ESG Commitment Level: Our first assessment of 100-plus strategies and 40 asset managers, Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2021 Financial Results, Income before income taxes and equity in net, Adjustments to reconcile consolidated net income, Effect of exchange rate changes on cash and cash, Reconciliation from consolidated operating income to, Reconciliation from consolidated operating margin to, Reconciliation from consolidated diluted net income per share, Reconciliation from cash provided by operating activities to, https://www.prnewswire.com/news-releases/morningstar-inc-reports-fourth-quarter-full-year-2021-financial-results-301490181.html, Measuring Transition Risk in Fund Portfolios White Paper. For the full year 2021and 2020, this contribution represented $21.5million and $17.3 million, respectively. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Available from: American Educational Research Association. Gear advertisements and other marketing efforts towards your interests. We sell different types of products and services to both investment professionals and individual investors. These wide-moat healthcare stocks are trading below our analysts fair value estimates. Email alert when a trade occurs in either of the portfolios via the companion website, msi.morningstar.com. We sell different types of products and services to both investment professionals and individual investors. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Morningstar, Inc. and Morningstar Investment Management shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Markets may be about to realize what peak hawkishness means, Citigroup says. Access to Analyst Reports on ETFs via the companion website, etf.morningstar.com. The acquisition brought with it an impressive team, For the full year, revenue increased 22.3% to $1.7 billion. Diluted net income per share decreased 25.3% to $1.30 versus $1.74 in the prior-year period. Morningstar ETFInvestor focuses on the cost-efficiency of exchange-traded funds. Learn how these investments work, what to look for when choosing one, and which ones earn our highest ratings. Holding too many investments across too many accounts can obscure the big picture. Before making any investment decision, investors should read and consider all the relevant investment product information. Reconciliation from consolidated revenue to organic revenue: Reconciliation from consolidated operating income to adjusted operating income: Reconciliation from consolidated operating margin to adjusted operating margin: Reconciliation from consolidated diluted net income per share to adjusted diluted net income per share: Consolidated diluted net income per share. A summary of all your assets and liabilities is a crucial first step toward getting a better handle on your finances. Market Risk Indicators are a subscription-based analytics solution that provide monthly updates on the overall health of housing markets across the country. Operating expense increased 22.9% to $387.4 million in the fourth quarter of 2021. WebRequest an Annual Report | Morningstar, Inc. Request an Annual Report Investor Toolkit Latest Investor Q&A Latest 10-K 2021 Annual Report 2022 Proxy Statement Request an We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. WebThese reports are usually professionally designed with lots of color and slick graphics, intended to put the best possible face on the company and its activities over the past year. Verify your identity, personalize the content you receive, or create and administer your account. Higher salaries and bonus expense, which reflect increased headcount, merit raises, and higher bonus payouts driven by the Company's strong fiscal year performance, were the primary drivers of increased compensation in the quarter. Frequently Asked Questions How Devoted Is Your Fund Manager to Sustainable Investing? The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the Company to comparable GAAP measures and an explanation of why the Company uses them. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. For the full year, PitchBook, DBRS Morningstar, Morningstar Data, Workplace Solutions, and Morningstar Indexes were the top five contributors of organic revenue growth. News Archive; Media Resources. This site is protected by reCAPTCHA and the GooglePrivacy Policy and Terms of Service apply. Operating income increased 14.9% to $74.8 million; adjusted operating income grew 7.8%. Organic revenue, which excludes all M&A-related revenue and foreign currency effects, grew 21.4% compared with the prior-year period, reflecting broad-based revenue growth across products and geographies. In-depth analysis of individual exchange-traded funds and market segments. CHICAGO, Feb. 24, 2022 /PRNewswire/ -- Morningstar,Inc. (Nasdaq: MORN), a leading provider of independent investment research, posted strong fourth-quarter revenue and cash generation, capping a year of significant growth across the business. Cash provided by operating activities increased 18.6% to $135.9 million, and free cash flow also increased 14.1% to $105.7 million. How we use your information depends on the product and service that you use and your relationship with us. A list of securities being monitored for their potential fit within each strategy. We offer a wide variety of products and solutions that serve market participants of all kinds, including individual and institutional investors in public and private capital markets, financial advisors, asset managers, retirement plan providers and sponsors, and issuers of securities. In addition to intangible amortization expense and M&A-related expenses, certain other items, as detailed below, affected the comparability of fourth-quarter and full-year 2021 results versus the same period in 2020. Provide specific products and services to you, such as portfolio management or data aggregation. Morning Star Community Services Limited was incorporated on 29 June 2016. WebThe Morningstar Document Library is a comprehensive resource for investment documents, from prospectuses to annual reports. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Annual Reports Morning Star Community Services Limited was incorporated on 29 June 2016. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Diluted net income per share decreased 14.1% to $4.45 versus $5.18 in the prior-year period, which included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics and $0.51 per share of non-operating gains. The total revenue contribution from Sustainalytics is excluded from organic revenue growth for 2020 and through the first six months of 2021. Data provided may not be modified without the prior written permission of CoreLogic. Fourth-quarter operating margin was 16.2%, compared with 17.1% in the prior-year period. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. Copyright 2023 Morningstar, Inc. All rights reserved. The data provided are for use only by the primary recipient or the primary recipient's publication or broadcast. The forecast accuracy represents a 95% statistical confidence interval with a +/- 2% margin of error for the index. Washington, D.C. ranked last for appreciation at 1.2%. 24/7 access to each fund's full-page Analyst Report via the companion website, mfi.morningstar.com. Read our editorial policy to learn more about our process. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states. Download Morningstars Fund Flows Commentary. Asset-based revenue increased 18.4% year over year, or 17.7% organically, reflecting strong performance across global asset classes and positive flows into offerings from Morningstar Indexes, Workplace Solutions, and Investment Management. As the new year dawns, heres your plan to get financially fit, one job at a time. The prior period included $0.51 of non-operating gains. CORELOGIC, the CoreLogic logo, CoreLogic HPI and CoreLogic HPI Forecast are trademarks of CoreLogic, Inc. and/or its subsidiaries. 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Morningstar Advisor Workstation ; Morningstar Enterprise Components; Morningstar Annuity Intelligence; Events & Presentations; Resources. In-depth editorial on income-generating industries. Read our editorial policy to learn more about our process. Stephanie Lerdall, +1 312-244-7805, stephanie.lerdall@morningstar.com. There are likely some future winners in these out-of-favor growth and fixed-income categories. Morningstar began including Sustainalytics revenue in its license-based organic revenue calculation in the third quarter of 2021. How often are PitchBook contracts renewed? Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately$265 billion in assets under advisement and management as of Dec. 31, 2021. pdf. consolidated operating income, excluding intangible amortization expense and all mergers and acquisitions (M&A)-related expenses (including M&A-related earn-outs) (adjusted operating income). Limited time only. These companies stand out from the competition and can be good choices for long-term investing. Commentary and research on the investment issues of the day, such as ESG investing, and performance updates on our ETF coverage universe. A look at how Notice 2022-53 has affected the tax code. Several of our Ultimate Stock-Pickers scaled back in these names last quarter. On a month-over-month basis, home prices declined by 0.2% compared to October 2022. Verify your identity, personalize the content you receive, or create and administer your account. When it comes to setting an in-retirement spending rate, flexibility pays. WebMorningstar Research Morningstar Data Money Management Morningstar Indexes Morningstar Managed Portfolios Morningstar Retirement Manager (4) Transaction-based revenue includes DBRS Morningstar, Internet advertising, and Morningstar-sponsored conferences. In 2021, the Company reduced its long-term debt by $90.0 million, paid $54.2 million in dividends, spent $54.6 million on acquisitions and other minority interests, and repurchased $1.3 million of its shares. (3) Asset-based revenue includes Investment Management, Workplace Solutions, and Morningstar Indexes. We exclude revenue from acquired businesses from our organic revenue growth calculation for a period of 12 months after we complete the acquisition. This press release features multimedia. Methodology Wed like to share more about how we work and what drives our day-to-day business. Free cash flow increased 13.2% to $348.1 million. Adjusted operating income, which excludes intangible amortization expense and all M&A-related expenses and earn-outs, was $91.2 million in the fourth quarter of 2021, an increase of 7.8% compared with the prior-year period. 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