Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Thematic (Sector/Industry)

France Financials / Thematic (Sector/Industry)

Donald Trump's unexpected presidential victory in the U.S. has certainly surprised the global financial markets, and we expect a fair amount of volatility in stock, bond, and currency markets (particularly the Mexican peso). While Trump's campaign rhetoric has lacked detail, some common themes provide insight into what kind of financial and economic policies his administration might pursue.Broadly, the potential for both short- and long-term stock, bond, and currency market volatility should be viewed as a negative for traditional asset managers like <a href="https://www.smartkarma.com/entities/6249" target="_blank" data-smartkarma-citation="entities:6249:1">Blackrock Inc (BLK US)</a> and <a href="https://www.smartkarma.com/entities/17472" target="_blank" data-smartkarma-citation="entities:17472:1">T Rowe Price Group Inc (TROW US)</a>, but the potential for the Department of Labor's fiduciary rule to be watered down in a Trump presidency should be seen as a positive for active managers (which is already being reflected in the Nov. 9 stock prices). This same volatility should be a positive for investment banks and exchanges such as <a href="https://www.smartkarma.com/entities/785" target="_blank" data-smartkarma-citation="entities:785:1">Goldman Sachs Group Inc (GS US)</a>, <a href="https://www.smartkarma.com/entities/10221" target="_blank" data-smartkarma-citation="entities:10221:1">Intercontinental Exchange Inc (ICE US)</a>, and <a href="https://www.smartkarma.com/entities/12353" target="_blank" data-smartkarma-citation="entities:12353:1">Cme Group Inc (CME US)</a>, because they benefit from higher trading levels. From a banking system perspective, we rate the U.S. banking system as fair, one step above poor, and that political stability is a key supporting pillar for our fair rating. While Trump's victory may have been a surprise to the markets, we do not expect the transition from an Obama administration to a Trump administration to be particularly difficult, as our political assessment of the U.S. from a banking system perspective is based on the quality of its institutions, its ability to obtain a fair election result, and its respect for the rule of law versus the divisiveness of the campaign. There is also the potential for regulation of the banking system to be lessened, reducing regulatory compliance costs as well as easing future bank capital rules. We expect to be taking a hard look at our coverage over the next couple of days to ensure that our long-term assumptions reflect any potential changes to the operating and competitive dynamics of the financial services industries.Analyst:Greggory Warren, CFA

Donald Trump's unexpected presidential victory in the U.S. has certainly surprised the global financial markets, and we expect a fair amount of volatility in stock, bond, and currency markets (particularly the Mexican peso). While Trump's campaign rhetoric has lacked detail, some common themes provide insight into what kind of financial and economic policies his administration might pursue.Broadly, the potential for both short- and long-term stock, bond, and currency market volatility should be viewed as a negative for traditional asset managers like Blackrock Inc (BLK US) and T Rowe Price Group Inc (TROW US), but the potential for the Department of Labor's fiduciary rule to be watered down in a Trump presidency should be seen as a positive for active managers (which is already being reflected in the Nov. 9 stock prices). This same volatility should be a positive for investment banks and exchanges such as Goldman Sachs Group Inc (GS US), Intercontinental Exchange Inc (ICE US), and Cme Group Inc (CME US), because they benefit from higher trading levels. From a banking system perspective, we rate the U.S. banking system as fair, one step above poor, and that political stability is a key supporting pillar for our fair rating. While Trump's victory may have been a surprise to the markets, we do not expect the transition from an Obama administration to a Trump administration to be particularly difficult, as our political assessment of the U.S. from a banking system perspective is based on the quality of its institutions, its ability to obtain a fair election result, and its respect for the rule of law versus the divisiveness of the campaign. There is also the potential for regulation of the banking system to be lessened, reducing regulatory compliance costs as well as easing future bank capital rules. We expect to be taking a hard look at our coverage over the next couple of days to ensure that our long-term assumptions reflect any potential changes to the operating and competitive dynamics of the financial services industries.Analyst:Greggory Warren, CFA

Sumitomo Mitsui Financial Group (8316 JP)

Mitsubishi UFJ Financial (MUFG) (8306 JP)

Sumitomo Mitsui Financial Group (Sponsored Adr) (SMFG US)

Sumitomo Mitsui Financial Group (Sponsored Adr)

Shanghai Pudong Development Bank Co. (600000 CH)

Mitsubishi UFJ Financial (MUFG) ADR (MUFG US)

China Pacific Insurance (Group) Co., (601601 CH)

While Trump Victory May Increase Volatility, There Are Some Long-Term Positives for Financials