Morningstar Launches New Service for Indian Investors

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New York, NY – Chicago-based mutual fund and equity research provider, Morningstar, Inc. announced today that its wholly owned subsidiary, Morningstar India, launched a new website for individual investors in India (www.morningstar.in).  The new website provides free access to mutual fund industry news, fund specific news, and mutual fund data and analytic tools on the more than 1,150 Indian domestic mutual funds and ETFs.

Although Morningstar is the largest supplier of mutual fund research, data, and analytic tools in the United States, it is a newcomer in India, where local providers like Value Research India Pvt Ltd have been serving the market for some time.  As a result, Morningstar is playing some catch-up in India.  However, the firm believes that global mutual funds that already use Morningstar data to market their funds in other regions of the world will be predisposed to using Morningstar data in India as well.

In addition to being a newcomer to the Indian market, Morningstar will also need to beef up its service by adding more research and commentary on individual Indian funds – a fact that management admits is already being addressed as the firm hires more analysts in India over the next few months.

Integrity’s Take

It has been clear from Integrity’s following Morningstar’s activities over the past few years, that the firm is on an aggressive growth path by acquiring businesses on a global basis and rolling out new internally developed products. 

Despite the end of the Global Research Analyst settlement this summer, Morningstar has positioned itself over the past few years to more than make up for the revenue hit it will experience when the 12 investment banks stop distributing their equity research to retail investors.  According to the firm’s 2008 10-K filing, Morningstar will lose approximately 4% of their consolidated revenue and 20% of the revenue generated in their “individual” segment.  Morningstar’s 2008 revenue was reported as $502,457,000.

As a result, we suspect Morningstar will be in a better position to weather the revenue loss than many of the other 60 to 70 independent providers that received payments under the Global Research Analyst Settlement.  However, given the wide range of initiatives undertaken by the Chicago-based firm, it is clear to the team at Integrity that Morningstar’s vision is much bigger than just being a large, profitable, mutual fund and equity research business.  

 See the full Press Release announcing this new initiative below.

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Morningstar India Launches Web Site for Individual Investors

MUMBAI, 5 August 2009—Morningstar India, a wholly owned subsidiary of Morningstar, Inc. (NASDAQ: MORN), today launched a new Web site for individual investors in India, available at http://www.morningstar.in. The site offers free access to research and commentary on fund industry news, fund-specific news, and fund reports written by Morningstar India’s fund analyst team.

Investors can also view the Morningstar RatingTM for Funds and the Morningstar Style BoxTM designation for the funds they research, along with local index data to track fund performance against the market. Investors can also search Morningstar’s database of more than more than 1,150 Indian domestic funds using the following tools:
• Portfolio ManagerSM: Tracks and analyzes portfolio holdings.
• QuickrankSM: Ranks leaders and laggards across Morningstar’s 28 fund categories.
• Fund ScreenerSM: Searches based on parameters such as fund type, role in portfolio, and rating.
• Fund CompareSM: Compares up to five funds at a time, based on characteristics such as performance, asset allocation, Morningstar Rating, and risk measures.
• Instant X-RaySM: Provides an overview of up to 10 funds at a time, allowing a comparison of factors such as asset allocation, stock overlap, and fund style.
• Fund Quicktake Widget: Allows users to embed fund information from http://www.morningstar.in into their own Web site, which allows a quick link back to Morningstar’s Web site.

“We’re excited to bring Morningstar research and tools to the Indian market, to provide investors with the means to conduct research and access to unbiased analysis to help them make informed investment decisions,” said Aditya Agarwal, managing director for Morningstar India.

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutions. Morningstar provides data on nearly 325,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 4 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. The company has operations in 19 countries and minority ownership positions in companies based in three other countries.

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