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.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
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.
