Morningstar Advisor - February/March 2010 - 79

In the Loop New at Morningstar Morningstar Begins Publishing Credit Ratings Morningstar Advisor Wins Design Award In December, Morningstar started publishing credit ratings for approximately 100 of the largest U.S. companies. During the next year, Morningstar plans to produce credit ratings for as many as 1,000 firms covered by its equity analyst team. The ratings are available for free at Morningstar.com, and are also available to users of Morningstar Office. Forecasts and scores underlying the ratings are available to Morningstar’s institutional equity research clients. “We’re excited to be offering credit ratings,’ said Haywood Kelly, Morningstar’s vice president of equity research. “We feel there’s a need for an independent voice like Morningstar in this area. It’s also a natural extension for us. Our approach—with its emphasis on economic moats and cash-generation—builds naturally on the work our equity analysts have been doing for years.” Morningstar brings a distinct perspective to debt ratings. Morningstar’s equity analysts produce detailed five-year forecasts of cash flows to evaluate stocks. They then compare those forecasts with liabilities that are coming due to provide insight into firms’ creditworthiness. Another distinction of Morningstar’s credit rating methodology is its emphasis on an Economic Moat calculation of competitive advantage when evaluating both a company’s financial prospects and its business risk. Morningstar’s credit committee reviews all ratings initiations and proposed changes. The committee, which includes Morningstar’s director of stock research, sector specialists, and senior members of its research team, evaluates each rating factor with an emphasis on cash-flow, financing, and businessrisk assumptions. Folio magazine announced on Nov. 24 that Morningstar Advisor magazine had won a 2009 “Ozzie” Award for the best cover in the “business-to-business under 100,000 circulation” category. Morningstar Advisor commissioned Brett Ryder to create the April/May 2009 cover illustration on the use of leverage by mutual fund managers and investors during the financial crisis. Ryder’s work has also appeared in The Economist, Financial Times, Los Angeles Times, and The New York Times. Hailing from the United Kingdom, Ryder is a graduate of Camberwell Art College London and St. Martin’s College London. The magazine of investing insights for independent-minded advisors April/May 2009 Morningstar Office, Principia, and Advisor Workstation users looking for in-depth product training can also register for the Morningstar Advisor User Forum. The Training Lab will be open June 23 and June 24. Those who register before March 15, 2010, can reap substantial savings. Early-bird prices: Conference registration: $675 ($120 savings) User Forum registration: $55 ($40 savings) Both events: $720 ($170 savings) To register, call 866-839-9729, or register online at http://www.MorningstarAdvisor.com/ MIC2010. Twitter users can follow conferencerelated tweets at http://www.twitter.com/ MStarAdvisor, or with the hashtag #MIC2010. Morningstar Acquires Canadian Investment Awards In Deep Using leverage, fund managers and investors try to land the big one. Teofila Arellano, art director, and Alex Skoirchet, associate art director, are responsible for designing Morningstar Advisor magazine. Arellano said that Ryder “did a beautiful job portraying the subject matter in a dramatic and visually interesting way.” 2010 Conference Registration Nets Discounts for Early Birds On Dec. 2, Morningstar Research Inc., a Canadian subsidiary of Morningstar, Inc., announced that it has entered into an agreement to acquire the Canadian Investment Awards and Gala from Canadian Investment Awards Inc., a privately held firm based in Toronto. Terms were not disclosed. The companies expect to complete the transaction during the first quarter of 2010, subject to customary closing conditions. Since launching in 1994, the Canadian Investment Awards and Gala has become Canada’s marquee investment awards program, recognizing excellence in products and firms within the financial-services industry. Experts from across the industry, including senior analysts from Morningstar, determine the funds, portfolio managers, and sponsors that have distinguished themselves in more than 40 investment categories based on quantitative and qualitative factors. The awards are distributed at a gala attended by more than 600 people each December in Toronto. The 2010 Morningstar Investment Conference will be June 23-25, 2010, at McCormick Place in Chicago. Join Morningstar’s Don Phillips and speakers Robert Arnott of Research Affiliates, Charles deVaulx of International Value Advisors, and William McNabb of Vanguard as they discuss the state of investing and offer up some insight for advisors in managing their clients’ portfolios in an ever-changing economy. MorningstarAdvisor.com 79

http://www.Morningstar.com http://www.MorningstarAdvisor.com/mic2010 http://www.MorningstarAdvisor.com/mic2010 http://www.twitter.com/mstaradvisor http://www.twitter.com/mstaradvisor http://www.MorningstarAdvisor.com

Morningstar Advisor - February/March 2010

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2010