Core Viewpoint - The article discusses investment opportunities in value stocks for 2025, particularly focusing on technology companies like Adobe, Alphabet, and Advanced Micro Devices, amidst a volatile market environment influenced by trade tariffs [2][4]. Group 1: Adobe Inc. (ADBE) - Adobe's business model is primarily subscription-based, with approximately 90% of its revenue coming from these services, making it less sensitive to economic cycles [5][6]. - The stock is currently trading at $417.13, which is 71% of its 52-week high, indicating it is in a bear market [8]. - Amundi has increased its holdings in Adobe by 24.7%, bringing their total position to $1.8 billion, reflecting confidence in the stock's potential [8]. Group 2: Alphabet Inc. (GOOGL) - Alphabet's shares have fallen to $166.19, representing 81% of their 52-week highs, suggesting that the worst may already be priced in [9]. - The company is diversifying beyond its core search engine and advertising business into areas like quantum computing and autonomous driving, which could provide new growth avenues [10][11]. - Analyst Ivan Feinseth considers Alphabet a Strong Buy with a valuation target of $240, indicating a potential upside of 42% from current prices [12]. Group 3: Advanced Micro Devices Inc. (AMD) - AMD's stock is currently priced at $117.17, which is 63% of its 52-week high, suggesting limited downside risk with significant upside potential [14]. - There has been a 7.9% decline in short interest over the past month, indicating a shift in sentiment among short sellers [15]. - Amundi has also increased its stake in AMD by 8%, raising their exposure to $1.7 billion, showcasing confidence in the stock's future performance [16].

Financial Performance - Morningstar's revenue increased from $227.1 million in 2005 to $2,275.1 million in 2024[42] - The company's revenue grew by 11.6% in 2024, reaching $2,275.1 million[142] - Adjusted operating income increased by 51.2% to $493.8 million in 2024[142] - Free cash flow increased by 127.5% to $448.9 million in 2024[142] - In Q1 2025, revenue increased by 7.2% to $581.9 million[145] - Adjusted operating income in Q1 2025 increased by 22.2% to $135.4 million[145] Segment Performance - Morningstar Direct Platform's revenue increased by 5.5% in 2024[113] - PitchBook's revenue increased by 12.0% in 2024[116] - Morningstar Credit's revenue increased by 35.1% in 2024[121] - Morningstar Wealth's revenue increased by 8.0% in 2024[124] - Morningstar Retirement's revenue increased by 15.0% in 2024[128] - Corporate and All Other (including Morningstar Indexes and Sustainalytics) saw revenue increase by 29.3%[131] and decrease by -0.8%[131] respectively in 2024 Market Opportunity - The global spend on financial data/analysis is a $44.3 billion market with a 6.4% year-over-year growth[52, 53] - The managed account market size is $13.8 trillion with a 20.0% year-over-year growth[55] - The global indexes industry revenue is $6.4 billion with a 12.8% year-over-year growth[55]

Core Insights - The Morningstar Investment Conference (MIC) will be held in Shanghai for the first time, focusing on the future development of China's buy-side investment advisory industry [1][4][6]. Group 1: Conference Overview - The conference will take place on May 22, 2025, at the Shangri-La Hotel in Pudong, Shanghai, with registration closing on May 20, 2025 [1]. - The event is supported by various sponsors, including the Guangzhou Investment Advisory Academy and several fund management companies [1]. Group 2: Research Findings - Morningstar will unveil its research report on the disparity in returns for Chinese public fund investors, highlighting that actual investor returns often lag behind fund performance despite the presence of high-performing funds [4]. Group 3: Conference Themes and Agenda - The conference theme is "Intelligent Global Collaboration for a Better Future," emphasizing the high-quality development of the fund industry and exploring new ecosystems for buy-side investment advisory [6][7]. - The agenda includes seven roundtable discussions and five keynote speeches, covering topics from macroeconomic trends to practical applications in asset allocation and AI empowerment [6][7]. Group 4: Featured Speakers - Notable speakers include Zhang Yumeng, Managing Director of Morningstar China, and other industry leaders from various financial institutions [9][10][11].

Group 1 - The article highlights the upcoming 2025 Investment Summit hosted by Morningstar, Inc., emphasizing the opportunity for industry leaders to engage in discussions [1] - Morningstar, Inc. is identified as a leading global investment research firm, providing services across North America, Europe, Australia, and Asia [1] - As of December 31, 2024, Morningstar managed and provided investment advice on assets totaling approximately $338 billion [1]

Group 1 - Ian Bezek has a decade of experience as a hedge fund analyst and has conducted extensive research in Latin American markets, particularly in Mexico, Colombia, and Chile [2] - The focus of Ian's research includes high-quality compounders and growth stocks available at reasonable prices in the US and other developed markets [2] - The investment group led by Ian, known as Ian's Insider Corner, offers features such as a Weekend Digest, trade alerts, and direct access to Ian for insights and updates [1] Group 2 - Morningstar's research team is highly regarded, and their reports are frequently utilized in the due diligence process by investors [1] - Pat Dorsey, a notable figure in the investment community, has been recognized for his contributions while leading Morningstar [1] - The article emphasizes the importance of thorough research and analysis in making informed investment decisions [1]

Core Viewpoint - Large institutional investors, including pension funds, are significantly reducing their exposure to U.S. dollar assets and reallocating towards European markets, driven by factors such as unpredictable Trump policies and ongoing tariff conflicts [1][2]. Group 1: Institutional Investor Behavior - Investors are experiencing a historic reduction in U.S. stock allocations, with the largest outflow of funds to Europe since 1999, as reported by Bank of America [1]. - European ETFs saw a record outflow of €2.5 billion in April, marking the highest since the beginning of 2023 [1]. - The Finnish Veritas pension fund and Danish pension funds have both reduced their U.S. stock exposure, with the latter increasing European stock investments to the highest level since 2018 [2]. Group 2: Currency and Asset Trends - There is a notable shift towards non-dollar safe-haven assets, with the euro and German bonds rising sharply, indicating a departure from traditional investment patterns [2]. - Institutional investors are actively selling dollars to buy euros, as observed by Bank of America and Deutsche Bank [2]. - The potential for a structural impact on the U.S. dollar and U.S. debt markets is highlighted, as capital flows reverse from the U.S. to other markets [3]. Group 3: Market Valuation Concerns - Concerns over high valuations in the U.S. stock market are prompting investors to question the rationale behind maintaining such premium prices, as noted by the CIO of Veritas [2]. - The California Teachers' Retirement Fund is reassessing its positions, warning of risks associated with tariff policies that could lead to significant sell-offs of U.S. debt by major trading partners [3].

Financial Data and Key Metrics Changes - In 2024, the company achieved revenue growth of 11.6%, with organic growth at 11.8%, reaching $2.275 billion for the first time [72][73] - Adjusted operating income increased from $326 million in 2023 to $494 million in 2024, representing a 51% growth in operating margin [73][84] - For Q1 2025, revenue growth was reported at 7.2%, with organic growth at 9.1%, and adjusted operating income grew by 22% [74][75] Business Line Data and Key Metrics Changes - Morningstar Direct, the largest reportable segment, grew from $700 million to $788 million, maintaining strong margins [88] - PitchBook revenue increased from $450 million in 2022 to $618 million in 2024, with margin expansion from 15.9% to 30% [89] - Morningstar Credit had a significant year, contributing meaningfully to adjusted operating income, while Morningstar Wealth improved from a negative profitability position to a neutral one [90][91] Market Data and Key Metrics Changes - The company noted a significant expansion in the institutional client base, which has grown from 750 clients at the time of the IPO to a much larger number in 2024 [39] - The private credit market is highlighted as a key growth area, with increasing demand for related services and products [47][49] Company Strategy and Development Direction - The company aims to leverage insights and AI to enhance efficiency and productivity, focusing on removing friction in client interactions [41][42] - Morningstar's strategy emphasizes building a strong balance sheet to support long-term growth and resilience against market fluctuations [34] - The company is committed to expanding its capabilities in private markets and enhancing its data offerings to meet evolving client needs [48][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue delivering growth and profitability, emphasizing the importance of a strong economic moat [76][94] - The leadership team is focused on capitalizing on market opportunities, particularly in the areas of private credit and wealth management [62][64] - The company recognizes the challenges in the Sustainalytics business and is working on restructuring its product offerings to better meet market demands [63] Other Important Information - The company celebrated its 20th anniversary as a public entity, reflecting on its growth and the benefits of being publicly traded [20][22] - A new Chief Strategy Officer was announced, indicating a commitment to strategic growth and continuity within the management team [30] Q&A Session Questions and Answers Question: What is the outlook for Morningstar's growth in the coming years? - Management indicated optimism about growth opportunities, particularly in private credit and the expansion of the institutional client base [39][47] Question: How is the company addressing challenges in the Sustainalytics business? - The company is focusing on simplifying its climate solutions and ensuring that its product suite meets market needs [63] Question: What are the key areas of investment for Morningstar moving forward? - The company plans to invest in technology and data capabilities to enhance its service offerings and drive growth [78][80]

晨星（中国）2025年度投资峰会最新议程及嘉宾阵容出炉！ 此次峰会将于5月22日在上海浦东香格里拉酒店举办， 报名截止日期为2025年5月20日。 欢迎扫描 下方二维码或点击文末"阅读原文"进行报名注册。 晨星投资峰会（Morningstar Investment Conference，MIC）是晨星的标志性盛会，拥有超过37年 的历史，足迹遍布中国、美国、澳大利亚、荷兰、印度、南非等国家，持续赋能全球数万名投资 者，实现财富保值与增值。 今年，晨星（中国）投资峰会即将落地上海，立足全球视角，结合海内外实践经验，与行业领袖共 探本土财富管理行业发展之道！ 峰会由晨星中国主办，广州投资顾问学院、嘉信理财、易方达基金、鹏华基金、基煜基金、盈米基 金、广州投资顾问产业链投资有限公司提供赞助支持。 晨星（中国） 2025 年度投资峰会最新议程如下： 主办方 赞助支持 charles SCHWAB 品信理 H M >RNINGSTAR 四) 广州投资顾问学院 缓易方达 投资顾问 了基熔基金 图米基金 《彩 鹏华基金 x 广州投顾产业链接资有限公司 3 2025年5月22日(星期四) Ω 上海浦东香格里拉酒店(上海浦东新 ...

Revenue Growth - Consolidated revenue for Q1 2025 increased by 7.2% to $581.9 million compared to $542.8 million in Q1 2024[110] - License-based revenue grew by 4.4%, or 6.2% on an organic basis, primarily driven by strong demand for PitchBook and Morningstar Direct Platform products[117] - Asset-based revenue increased by 11.3%, or 14.5% on an organic basis, mainly due to growth in Morningstar Retirement, Morningstar Wealth, and Morningstar Indexes[118] - Transaction-based revenue rose by 19.2%, or 21.4% on an organic basis, primarily driven by Morningstar Credit revenue[118] - Organic revenue increased by 9.1% in Q1 2025, with PitchBook, Morningstar Credit, and Morningstar Direct Platform being the largest contributors[119] - International revenue accounted for 27% of consolidated revenue in Q1 2025, with a 3.6% increase driven by strong demand for Morningstar Credit, PitchBook, and Morningstar Wealth products[122] - PitchBook total revenue increased by 10.9% to $163.7 million, with adjusted operating income rising by 30.8% to $52.3 million[142][145] - Morningstar Credit revenue grew by 21.1% to $73.0 million, with adjusted operating income increasing by 74.0% to $21.4 million[146][147] - Morningstar Wealth revenue increased by 3.9% to $61.3 million, with an adjusted operating loss of $0.8 million, improving from a loss of $5.6 million in the previous year[148] - Morningstar Retirement total revenue rose by 15.8% to $32.9 million for the three months ended March 31, 2025, with AUMA increasing by 17.7% to $277.6 billion[151] - Morningstar Indexes revenue increased by 15.0% to $3.0 million, with organic revenue growth of 15.7% due to higher investable product and licensed data revenue[156] Operating Performance - Operating income for Q1 2025 was $114.1 million, reflecting a 23.2% increase from $92.6 million in Q1 2024[110] - Operating margin improved to 19.6%, up 2.5 percentage points from 17.1% in the same period last year[110] - Adjusted operating income for Q1 2025 was $135.4 million, a 22.2% increase from $110.8 million in 2024, with an adjusted operating margin of 23.3%[131][133] - Total operating expenses were $467.8 million, representing 80.4% of consolidated revenue, a decrease of 2.5 percentage points from the prior year[123][130] Cash Flow and Investments - Cash provided by operating activities decreased by 2.8% to $91.0 million compared to $93.6 million in Q1 2024[110] - Free cash flow for Q1 2025 was $58.8 million, a slight decrease of 1.2% from $59.5 million in Q1 2024[110] - Cash used for investing activities increased significantly by 164.8% to $70.7 million from $26.7 million in Q1 2024[110] - Capital expenditures slightly decreased by 5.6% to $32.2 million from $34.1 million in the previous year[177] - As of March 31, 2025, Morningstar had cash, cash equivalents, and investments totaling $559.2 million, an increase of $8.2 million from December 31, 2024[162] Shareholder Returns - The company repurchased 368,199 shares for $109.6 million during the three months ended March 31, 2025, leaving $377.4 million available for future repurchases under the Share Repurchase Program[174] - The company paid $19.5 million in dividends during the three months ended March 31, 2025, with a quarterly dividend of $0.455 per share approved for April 30, 2025[172] Tax and Currency Exposure - Morningstar's effective tax rate increased to 25.9% for the first quarter of 2025, up from 24.9% in the prior year[161] - Foreign currency exposure for revenue includes 2.5% from Australian Dollar and 7.5% from British Pound for Q1 2025[181] - Estimated effect of a 10% adverse currency fluctuation on revenue includes a potential loss of $1.5 million from Australian Dollar and $4.5 million from British Pound[181] - Estimated effect of a 10% adverse currency fluctuation on equity includes a potential loss of $3.3 million from Australian Dollar and $23.0 million from British Pound[181] Other Financial Metrics - Cost of revenue increased by $13.3 million, primarily due to higher compensation expenses related to severance costs and increased salaries[125] - Sales and marketing expenses rose by $8.0 million, with compensation expenses increasing by $3.9 million, largely due to higher sales commissions[126] - The decline in cash flow was primarily driven by higher bonus payments in 2025 related to 2024 performance[177] - A 100 basis-point change in interest rates is estimated to have a $4.6 million impact on interest expense based on the outstanding principal balance[180]

Revenue Growth - Reported revenue increased 7.2% to $581.9 million, with organic revenue growth of 9.1% compared to the prior-year period[3] - Morningstar Credit revenue grew 21.1% to $73.0 million, with organic revenue growth of 23.2%[14] - PitchBook revenue increased 10.9% to $163.7 million, with a 13.6% growth in licensed users[12] - Morningstar Retirement revenue increased 15.8% to $32.9 million, with AUMA rising 17.7% to $277.6 billion[19] - Morningstar Direct Platform revenue grew by 1.3% to $199.2 million[40] - Consolidated revenue for Q1 2025 was $581.9 million, a 7.2% increase from $542.8 million in Q1 2024[48] - Organic revenue grew by 9.1% to $582.5 million in Q1 2025, compared to $534.1 million in Q1 2024[48] Income and Profitability - Operating income rose 23.2% to $114.1 million, while adjusted operating income increased 22.2% to $135.4 million[6] - Diluted net income per share increased 22.1% to $1.82, and adjusted diluted net income per share rose 28.9% to $2.23[7] - Operating margin for Morningstar Credit increased 8.9 percentage points to 29.3%[15] - Operating income increased by 23.2% to $114.1 million, with an operating margin of 19.6%, up from 17.1%[35] - Consolidated net income rose to $78.5 million, a 22.3% increase compared to $64.2 million in the same period last year[35] - Adjusted operating income for total reportable segments was $135.4 million, a 22.2% increase from $110.8 million in Q1 2024[40] - Adjusted diluted net income per share increased by 28.9% to $2.23 in Q1 2025, compared to $1.73 in Q1 2024[50] Assets Under Management (AUMA) - Morningstar Wealth reported assets under management and advisement (AUMA) increased 10.8% to $63.8 billion[17] - Total AUMA (Assets Under Management) increased to $339.8 billion in Q1 2025, up 17.3% from $289.7 billion in Q1 2024[42] - Morningstar Retirement total AUMA reached $277.6 billion, a 17.7% increase from $235.9 billion in the previous year[42] - Asset value linked to Morningstar Indexes grew to $208.7 billion, up 9.7% from $190.2 billion in Q1 2024[42] - Morningstar Model Portfolios AUMA increased by 9.6% to $44.5 billion in Q1 2025, compared to $40.6 billion in Q1 2024[42] - Institutional Asset Management AUMA decreased by 5.5% to $6.9 billion in Q1 2025, down from $7.3 billion in Q1 2024[42] Cash Flow and Share Repurchase - Cash provided by operating activities decreased 2.8% to $91.0 million, while free cash flow decreased 1.2% to $58.8 million[25] - The company repurchased $109.6 million of its shares during the quarter[26] - The company repurchased $109.6 million in common shares during the quarter[38] - Free cash flow for Q1 2025 was $58.8 million, slightly down 1.2% from $59.5 million in Q1 2024[50] Balance Sheet - Total current assets decreased slightly to $1,012.3 million from $1,014.1 million as of December 31, 2024[37] - Total liabilities increased to $1,977.1 million from $1,930.3 million, with long-term debt rising to $803.7 million[37] - Cash and cash equivalents at the end of the period were $511.5 million, up from $502.7 million at the beginning of the period[38]