Research Platform incorporates performance attribution.
Press Release Summary:
Offered as Web-based global research platform, Morningstar Direct(SM) connects institutional investment professionals directly to Morningstar's investment research and data. Included performance attribution analysis functionality lets users quantify and analyze impact of portfolio decisions, such as sector weighting or security selection, on equity performance. It may be performed on private portfolios in addition to 30,000+ actively managed equity investments in Morningstar database.
Original Press Release:
Morningstar Adds Performance Attribution to Latest Version of Morningstar Direct
CHICAGO, Jan. 12 -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today launched its latest version of Morningstar Direct(SM), a Web-based global research platform that connects institutional investment professionals directly to Morningstar's investment research and data. The most significant addition to Morningstar Direct is performance attribution analysis. This new functionality allows users to quantify and analyze the impact of portfolio decisions, like sector weighting or security selection, on equity performance. Users can perform attribution analysis on their own private portfolios, imported as frequently as daily, in addition to the more than 30,000 actively managed equity investments in the Morningstar database.
Performance attribution analysis examines differences in performance between an actively managed portfolio and a benchmark. The analysis attempts to explain relative under- or over-performance in terms of a managers' region, sector, style, or market-cap weightings, and security selection. In Morningstar Direct, users can benchmark performance to another fund, a custom or blended peer group, a Morningstar Category, or a selection from more than 30,000 indexes. Asset managers can use performance attribution to explain which stocks or weighting decisions are driving their investment performance as well as their peers'. Consultants and institutional investors can use Morningstar Direct for performance attribution analysis as part of their due diligence research during the selection process without the need for data collection.
"Attribution analysis gives our users unparalleled insight into how manager decisions impact returns, and allows portfolio managers to explain the value they add--the active return. They can examine more timely imported portfolios or select portfolios from one of the most complete investment holdings databases in the industry," said Xiaohua Xia, head of Morningstar's Institutional Software Business Unit. "We believe the new performance attribution capabilities, combined with tools to execute peer, style, and performance analysis, provide investment professionals with all the resources they need to evaluate and select investments, create robust portfolios, and conduct competitive analysis."
Launched in 2001, Morningstar Direct offers centralized access to current and historical data from the entire Morningstar global database. This Web-based platform equips more than 2,800 institutional users globally with highly customizable tools for selecting, developing, and monitoring investments. More information on Morningstar Direct can be found at: global.morningstar.com/MorningstarDirect.
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 more than 290,000 investment offerings, including stocks, mutual funds, and similar vehicles. The company has operations in 18 countries and minority ownership positions in companies based in three other countries.
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