Leadership Reshuffle and New Ratings Amid Market Challenges for Morningstar

Despite posting a substantial year-to-date decline exceeding 30%, financial data provider Morningstar is making strategic moves that are capturing market attention. The company is navigating a period of significant transition, marked by an unexpected leadership change in a key division and the expansion of its prestigious rating system to include illiquid funds. The central question remains whether these initiatives can reverse the stock’s downward trajectory.

In a significant strategic development last week, Morningstar launched its Medalist Ratings for semi-liquid funds. This move extends the company’s analytical coverage to a growing segment of the market that has traditionally suffered from a lack of transparency. The newly rated products include interval funds, tender offer funds, and non-traded REITs.

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