S&P sells mutual fund data business to Morningstar

Source: Standard & Poor's

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, (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."

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