Morningstar has begun integrating environmental, social, and governance factors into its analysis of stocks, funds and asset managers, using risk ratings from Sustainalytics, a firm it acquired this past July.
Morningstar said its equity research analysts will capture ESG valuation-relevant risks across more than 1,500 stocks, which will inform its assessment of a stock’s intrinsic value and the margin of safety required before assigning its star ratings.
Analysts will analyze the extent to which strategies and asset managers are incorporating ESG factors as part of its new Morningstar ESG Commitment Level evaluation, which will follow a four-point scale of leader, advanced, basic and low.
In a release, the company said that the new risk measures will be used “in a manner that aligns with Morningstar’s long-term oriented and fundamentals-focused investment philosophy” through its economic moat rating and its uncertainty rating, which are rolled into the overall Morningstar rating for stocks.
Additionally, Morningstar said its stewardship rating will be renamed the “Morningstar Capital Allocation Rating,” reflecting a refining of the framework to isolate and evaluate management performance across balance sheet health, investment efficacy and shareholder distributions.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.
MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.
Wealth management unit sees inflows of $23 billion.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
