Morningstar Articles


We’re pleased to see the number of U.S.-based asset managers we cover that provide preliminary monthly data on assets under management increase from five to seven.

While we would like to see BlackRock and Affiliated Managers Group provide monthly data as well, given that they do a lot of business with institutional clients, we’ve never gotten the sense that either company would be willing to go that route.

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It’s easy to understand the allure of dividend-paying stocks.

Investors can avoid stepping on land mines in the field of dividend-oriented ETFs by understanding how these funds target and weight dividend-paying stocks, and seek to reduce the risks of holding high-yielding companies.

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10 Funds That Are Better Than They Look [0.09]

Posted on Aug. 16, 2017, 11 a.m. by Morningstar Articles @ [source]

The past three years have rewarded risk-taking.

The past few years have not been easy ones for BBH Core Select, but it remains an excellent fund, says senior analyst David Kathman.

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With credit spreads narrowing and returns across bond sectors converging so far in 2017, it's a good time for bond fund investors to question whether they're getting paid enough to take risk. Looking at a fund's credit quality (or other fundamental measures of default risk), currency, and duration exposures would give us the same information about those specific risks.

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As South Carolina politicians amp up the vitriol following Scana ’s July 31 decision to stop construction of the two new units at the V.C. Summer nuclear project to utilities such as Dominion Energy, Duke Energy, or Southern Co. will be unsuccessful without substantial state financial support.

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In most cases, the confusion could be cleared up by asking a simple question. She could then take her $66,000 in investment gains and steer those funds to a traditional IRA.

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The following is our latest Fund Analyst Report for Lazard Global Listed Infrastructure . Lazard has expanded its lineup, however, and has succeeded in gaining substantial growth in some of them, including Lazard Global Listed Infrastructure , which has a particular following in Australia.

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Is Low Inflation a Quirk or a Trend? [0.09]

Posted on Aug. 12, 2017, noon by Morningstar Articles @ [source]

About the only economic news of real consequence this week was Friday's inflation report, which showed surprisingly low inflation for the month of July on both a month-to-month and year-over-year basis. In other news, data from the National Federation of Independent Business suggested that concerns about finding workers have reached a new recovery high.

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How to Best Leave an IRA to Charity [0.16]

Posted on Aug. 12, 2017, 11 a.m. by Morningstar Articles @ [source]

Some of the charities are big and some are small churches or 501(c)(3)s. It would make sense to fund the charities' shares with the retirement benefit asset (the IRA) because the charities will pay no income tax on the IRA proceeds, whereas if the individuals' shares are funded with IRA assets their net inheritance will be reduced by income taxes. The client dies and then the charities find out, but the IRA provider won't simply issue the charities a check upon presentation of proper identification and Form W-9.

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The Mediocre EAFE [0.02]

Posted on Aug. 11, 2017, noon by Morningstar Articles @ [source]

The proliferation of index funds has been a tremendous benefit to individual investors. But the assumption that these characteristics cause index funds to outperform a majority of active managers has been weaker for those that track the MSCI EAFE Index.

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The proliferation of index funds has been a tremendous benefit to individual investors. But the assumption that these characteristics cause index funds to outperform a majority of active managers has been weaker for those that track the MSCI EAFE Index.

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While it’s been reported that the U.S. Department of Labor has requested an 18-month delay in the implementation of the second phase of its fiduciary rule to July 2019 from January 2018, we see evidence that the U.S. financial industry has already begun reducing conflicts of interest between financial advisors and their clients.

The delay to the rule was largely expected, as President Trump directed the Department of Labor to restudy the effects of the rule.

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Stocks pulled back this week from record levels after jitters over escalating tensions with North Korea, and a handful of disappointing earnings reports weighed on investors.

Although we can't know what the near term will bring for stocks, Christine Benz outlined five steps investors can take in jittery markets .

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These Managers Like Big Bets [0.16]

Posted on Aug. 10, 2017, noon by Morningstar Articles @ [source]

Fund managers taking big bets have long captured investors’ attention, as the biggest short-term winners and losers are often the most daring. However, cautious investors should keep an eye out for funds with high levels of company-specific risk and make sure they are comfortable with them for long time horizons.

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When's the Right Time to Take RMDs? [0.08]

Posted on Aug. 10, 2017, 11 a.m. by Morningstar Articles @ [source]

If you're past age 70 1/2, those withdrawals have to start coming out of your tax-sheltered retirement accounts--traditional IRAs and 401(k)s, as well as Roth 401(k)s--in the year following the year in which you attain age 70 1/2. Just as IRA contributors would do well to make their contributions as early in the year as possible, the better to take advantage of tax-deferred compounding over their lifetimes, RMD-subject investors can enjoy extra tax-deferred compounding benefits by delaying their withdrawals.

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It's been over six months since President Donald Trump took office. The staff, of course, has been studying this issue for five or six years, and had produced a previous draft version on which they received thousands of comments, plus an almost 400-page regulatory impact analysis.

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Mid-cap narrow-moat franchise dealer AutoNation entered 4-star territory earlier this year. The dealers enjoy mid- to high-single-digit gross margins on new vehicles and 100% gross margin on financing and insurance.

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The fund invests in large- and mid-cap stocks from developed and emerging markets, and screens for those that have increased their dividend payments for seven consecutive years. This fund’s return on invested capital comes in at 17.3%, compared with 12.5% for the MSCI ACWI ex-USA Growth Index.

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20 Undervalued, Sustainable Stocks [0.11]

Posted on Aug. 9, 2017, 11 a.m. by Morningstar Articles @ [source]

It's true that originally, socially responsible investing was more about investors trying to align their investments with their values by excluding companies from investment mandates. But sustainable investing now is more about considering relevant nonfinancial factors in the search for alpha, says Jon Hale, head of sustainability research for Morningstar.

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Most of us grinned after tearing open our second-quarter account statements when they arrived in the mail (or, perhaps more likely nowadays, reviewed them online). Those of us with large equity stakes downright beamed.

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