Morningstar Investment Services LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Morningstar Investment Services, Inc. is an investment management firm based out of Chicago, Illinois. The company was originally established in 2000 and current continues to operate as a subsidiary of its parent company Morningstar Inc. Morningstar Investment Services conducts its research externally, utilizing a fundamental, quantitative, and qualitative methodology to make its investment decisions. The company invests in the public equity markets within the United States, allocating its assets across a variety of sectors. Morningstar Investment Services invests most heavily in the finance sector, which alone makes up over a third of the firm’s total asset allocations, and also invests in the services, utilities and telecommunications, consumer noncyclical, information technology, health care, and energy sectors, among other sectors to a lesser degree, in order of decreasing allocation. The firm’s top holdings include Vanguard Index FDS, Vanguard BD Index FD Inc., Philip Morris International Inc., Vanguard Tax Managed International FD, General Electric Co., Ventas, Realty Income Corp., and Market Vectors ETF, in order of decreasing allocation. Morningstar Investment Services now operates with 55 total employees of which 7 are investment professionals. Morningstar Investment Services manages over $6.8 billion in total assets under management spread across approximately 44,500 total accounts, all of which are discretionary accounts. Both of the firm’s total number of accounts and total assets under management have been increasing in recent years with its total number of accounts growing significantly from just under 16,000 back in 2010 to its current amount and its total assets under management increasing significantly as well from $1.5 billion back in 2010 to well over four times that amount today. Morningstar Investment Services mainly caters to individuals, which alone makes up over three quarters of the firm’s client base and makes up over half of the firm’s total attributed assets, and also provides services to a variety of other clientele.
As of the latest 13F report, the guru’s equity portfolio contained 215 stocks valued at a total of $7.34Bil. The top holdings were BND(8.86%), VTI(8.17%), and ENB(2.76%).
According to GuruFocus data, these were Morningstar Investment Services LLC’s top five trades of the quarter.
S&P 500 ETF TRUST ETF
During the quarter, Morningstar Investment Services LLC bought 122,433 shares of ARCA:SPY for a total holding of 126,705. The trade had a 0.64% impact on the equity portfolio. During the quarter, the stock traded for an average price of $382.87.
On 02/12/2023, S&P 500 ETF TRUST ETF traded for a price of $408.01 per share and a market cap of $376.74Bil. The stock has returned -7.71% over the past year.
GuruFocus gives the ETF a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, S&P 500 ETF TRUST ETF has a price-earnings ratio of 20.30, a price-book ratio of 3.76, a price-earnings-to-growth (PEG) ratio of 2.47, a EV-to-Ebitda ratio of 15.05 and a price-sales ratio of 2.82.
The price-to-GF Value ratio is 0.91, earning the stock a GF Value rank of 6.
Lockheed Martin Corp
Morningstar Investment Services LLC reduced their investment in NYSE:LMT by 46,409 shares. The trade had a 0.31% impact on the equity portfolio. During the quarter, the stock traded for an average price of $464.67.
On 02/12/2023, Lockheed Martin Corp traded for a price of $480.83 per share and a market cap of $122.75Bil. The stock has returned 27.71% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Lockheed Martin Corp has a price-earnings ratio of 22.15, a price-book ratio of 13.18, a price-earnings-to-growth (PEG) ratio of 3.21, a EV-to-Ebitda ratio of 15.58 and a price-sales ratio of 1.93.
The price-to-GF Value ratio is 1.14, earning the stock a GF Value rank of 3.
Vanguard Short-Term Bond ETF
Morningstar Investment Services LLC reduced their investment in ARCA:BSV by 277,603 shares. The trade had a 0.29% impact on the equity portfolio. During the quarter, the stock traded for an average price of $74.67.
On 02/12/2023, Vanguard Short-Term Bond ETF traded for a price of $75.56 per share and a market cap of $36.84Bil. The stock has returned -2.97% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
Fidelity National Information Services Inc
During the quarter, Morningstar Investment Services LLC bought 276,042 shares of NYSE:FIS for a total holding of 1,338,768. The trade had a 0.26% impact on the equity portfolio. During the quarter, the stock traded for an average price of $71.04000000000001.
On 02/12/2023, Fidelity National Information Services Inc traded for a price of $75.43000000000001 per share and a market cap of $44.76Bil. The stock has returned -32.00% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Fidelity National Information Services Inc has a price-earnings ratio of 49.30, a price-book ratio of 1.00, a EV-to-Ebitda ratio of 11.31 and a price-sales ratio of 3.19.
The price-to-GF Value ratio is 0.54, earning the stock a GF Value rank of 4.
Truist Financial Corp
During the quarter, Morningstar Investment Services LLC bought 431,003 shares of NYSE:TFC for a total holding of 852,800. The trade had a 0.26% impact on the equity portfolio. During the quarter, the stock traded for an average price of $43.87.
On 02/12/2023, Truist Financial Corp traded for a price of $48.38 per share and a market cap of $64.19Bil. The stock has returned -21.97% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Truist Financial Corp has a price-earnings ratio of 10.92, a price-book ratio of 1.19, a price-earnings-to-growth (PEG) ratio of 1.24 and a price-sales ratio of 2.81.
The price-to-GF Value ratio is 0.89, earning the stock a GF Value rank of 7.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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