Morningstar has begun integrating environmental, social, and governance factors into its analysis of stocks, funds and asset managers, using risk ratings from Sustainalytics, a firm it acquired this past July.
Morningstar said its equity research analysts will capture ESG valuation-relevant risks across more than 1,500 stocks, which will inform its assessment of a stock’s intrinsic value and the margin of safety required before assigning its star ratings.
Analysts will analyze the extent to which strategies and asset managers are incorporating ESG factors as part of its new Morningstar ESG Commitment Level evaluation, which will follow a four-point scale of leader, advanced, basic and low.
In a release, the company said that the new risk measures will be used “in a manner that aligns with Morningstar’s long-term oriented and fundamentals-focused investment philosophy” through its economic moat rating and its uncertainty rating, which are rolled into the overall Morningstar rating for stocks.
Additionally, Morningstar said its stewardship rating will be renamed the “Morningstar Capital Allocation Rating,” reflecting a refining of the framework to isolate and evaluate management performance across balance sheet health, investment efficacy and shareholder distributions.
Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.
Futures indicate stocks will build on Tuesday's rally.
Cost of living still tops concerns about negative impacts on personal finances
Financial advisors remain vital allies even as DIY investing grows
A trade deal would mean significant cut in tariffs but 'it wont be zero'.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
