NEW YORK, Feb. 22 /PRNewswire/ -- In order to focus resources on its
core analytical services for the global fund industry, Standard & Poor's,
the world's foremost provider of independent credit ratings, indices,
investment research, risk evaluation, and information services announced
today that it is selling its mutual fund data business to Morningstar, Inc.
(Nasdaq: MORN). Standard & Poor's continues to experience increasing demand
from wealth managers and leading fund distributors for its independent fund
ratings and research, which include fund management ratings, fund research
and selection services, and money market and bond fund ratings.
"Our market-leading qualitative fund ratings and research business has
grown significantly over the last few years, specifically our fund
management ratings business, which currently rates over 2,200 funds
globally," said Deven Sharma, Executive Vice-President at Standard &
Poor's. "As a result, we have ambitious plans to expand the fund ratings
and research business by widening the pool of funds that we rate,
increasing our research capacity and developing additional distribution
channels throughout the world for our market-leading analysis and opinions.
Our fund management ratings supplement quantitative historical performance
with qualitative fund manager evaluation."
Consistent with this strategy, Standard & Poor's announced that it is
selling its mutual fund data business to Morningstar, which includes mutual
fund data on performance, rankings and holdings on more than 135,000 funds
in over 30 countries. The sale includes desktop applications and data feed
products.
Under the agreement, Standard & Poor's will license mutual fund data
from Morningstar for use in Standard & Poor's fund ratings and research
products and services.
"Standard & Poor's market-leading fund management ratings, money market
and bond fund ratings, and fund selection services are widely recognized
throughout the world for their objectivity, analytical rigor and value as
forward-looking investment tools," continued Sharma. "Historical fund data
is used as a screen for our fund ratings and research business, but is not
core to our business of providing independent qualitative ratings and
analysis for the global fund industry."
An explanation of the difference between fund ratings and fund rankings
can be found at the conclusion of this press release.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP),
is the world's foremost provider of financial market intelligence,
including independent credit ratings, indices, risk evaluation, investment
research and data. With approximately 8,500 employees, including wholly
owned affiliates, located in 21 countries. Standard & Poor's is an
essential part of the world's financial infrastructure and has played a
leading role for more than 140 years in providing investors with the
independent benchmarks they need to feel more confident about their
investment and financial decisions. For more information, visit
http://www.standardandpoors.com.
Fund Ratings Versus Fund Rankings
Standard & Poor's fund rating is a forward-looking opinion of the
quality of a fund's management, based on an in-depth analysis, qualitative
analysis of its investment process and consistency of approach. Standard &
Poor's will continue to build and develop this market-leading business.
Standard & Poor's fund ranking is a quantitative assessment of the past
performance of a mutual fund compared to that of its peers in its
respective style group. Standard & Poor's fund rankings are part of the
mutual fund data business sold to Morningstar.
SOURCE Standard & Poor's
back to top
