CHICAGO, March 18, 2013 /CNW/ - Morningstar, Inc. (NASDAQ: MORN), a
leading provider of independent investment research, today announced
that the CFA Institute Financial Analysts Journal (FAJ) has selected "The Liquidity Style of Mutual Funds" by Thomas Idzorek,
James Xiong, and Roger Ibbotson for a prestigious Graham & Dodd Scroll
Award for 2012. Idzorek, CFA, is president of the Morningstar
Investment Management division; Xiong, Ph.D., CFA, is a senior research
consultant in the Morningstar Investment Management division; and
Ibbotson, Ph.D., CFA, is founder of Ibbotson Associates, chairman and
chief investment officer of Zebra Capital Management, and professor of
finance at the Yale School of Management. Morningstar acquired Ibbotson
Associates in 2006. This is the 10th award from the FAJ won for financial writing based on research of Morningstar, Inc. or its
Recent studies have shown that a liquidity investment style—investing in
stocks with lower trading volume—has led to excess returns. In "The
Liquidity Style of Mutual Funds," the authors examined whether this
style premium, previously documented in stock investing, can be applied
at the mutual fund level. Across a wide range of mutual fund
categories, they found that, on average, mutual funds that held
less-liquid stocks significantly outperformed those that held
more-liquid stocks. The paper was published in the November/December
2012 edition of the FAJ and can be found at www.cfapubs.org.
"There are many lenses through which we can view investments—large
capitalization versus small, growth versus value. Liquidity offers
another valuable lens to help investors evaluate and select mutual
funds," Joe Mansueto, chairman and chief executive officer of
Morningstar, said. "For years, Tom, James, and Roger have been
producing innovative research on manager selection, asset allocation,
and portfolio construction with an emphasis on theories and techniques
that can be put into practice. We're pleased that the FAJ recognized these thought leaders and their contribution to the field."
Awarded by the FAJ's Advisory Council and Editorial Board, the Graham and Dodd Awards are
given in recognition of excellence in research and financial writing.
The FAJ is published six times a year by CFA Institute, the global association
of more than 100,000 securities analysts, portfolio managers,
strategists, consultants, and other investment specialists. The Journal advances the knowledge and understanding of the practice of investment
management through the publication of high-quality,
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment
research in North America, Europe, Australia, and Asia. The company
offers an extensive line of products and services for individuals,
financial advisors, and institutions. Morningstar provides data on
approximately 416,000 investment offerings, including stocks, mutual
funds, and similar vehicles, along with real-time global market data on
more than 9 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 registered investment advisor subsidiaries and has approximately
$149 billion in assets under advisement and management as of Dec. 31,
2012. The company has operations in 27 countries.
Morningstar Investment Management is a division of Morningstar and
includes Morningstar Associates, Ibbotson Associates, and Morningstar
Investment Services, which are registered investment advisors and
wholly owned subsidiaries of Morningstar, Inc.
SOURCE: Morningstar Research Inc.
For further information:
Alexa Auerbach, 312-696-6481, firstname.lastname@example.org