Skip to main content
MENU
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • CIOs
    • Consultants
    • Defined Contribution
    • ESG
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Private Credit
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • Special Reports
    • Washington
    • White Papers
  • International
    • U.K.
    • Canada
    • Europe
    • Asia
    • Australia - New Zealand
    • Middle East
    • Latin America
    • Africa
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2024
    • Eddy Awards
  • Resource Guides
    • Active Thematic Global Equities
    • Retirement Income
    • Fixed Income
    • Pension Risk Transfer
    • Pooled Employer Plans (PEPs)
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • DC Plan Design: Improving Participant Outcomes
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
  • Print
Breadcrumb
  1. Home
  2. INVESTING
July 05, 2023 01:06 PM

Morningstar CEO focuses on empowering investors amid ESG polarization, AI

Sophie Baker
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Fintech-Illustration_i.jpg
    Getty Images

    Empowering investors and demystifying investment portfolios are top of mind for Morningstar CEO Kunal Kapoor.

    Mr. Kapoor addressed the polarization of ESG views in the U.S., the role of artificial intelligence and the importance of long-term investing in an interview at the annual Morningstar Investment Conference, held in London on Tuesday.

    Related Article
    Specter of inflation keeps hedging programs in place – report

    On ESG, Morningstar's data and research, including that of its Morningstar Sustainalytics unit, is in demand by investors — and is a tool for clients to use in the ongoing debate over taking environmental, social and governance considerations into investment decisions.

    "It helps them personalize how they want to build a portfolio. Many of the political arguments … don't talk about whether the data is useful or not. (An investor) can fall on either side of the aisle and the data is useful to make decisions," he said, adding that finance is at its best when it is democratized and investors can make use of the information and data.

    Demystifying portfolios is a focus for Mr. Kapoor and his team. Morningstar has "invested very heavily in ESG (-related data) because we think it does empower investors, allow them to make choices." The firm has also invested in private equity and private debt information — "we see a lot of growth in private debt coming in the next few years," with non-bank financial institutions stepping into the fray to provide finance to companies, for example.

    "If it goes in a portfolio, we want to be able to … demystify it," Mr. Kapoor said. The firm has 750,000 investment vehicles in its managed funds database alone, for example.

    Regarding today's investment environment, Mr. Kapoor said while the "headlines are not pleasant," ranging from the topic of ESG polarization, to high inflation and rising interest rates, "you don't make your money by focusing on three, six, nine, 12 months. Our message is the world goes up and down, and as investors you have to put yourself in a position where you have a plan and you want to stick to the plan, regardless of what the world around you may or may not be doing."

    While it may be difficult, investors "have to control (their) very worst behavioral instincts" in the current environment. But the reality is "it is a much better time to be entering markets … than two years ago," with fixed income in a "better spot, stocks are cheaper (and one) could argue that the froth is starting to be shaken out" of private markets, he said.

    Mr. Kapoor also addressed AI, which is used internally to collect data and to automate standardized processes, for example. Morningstar also presented its generative AI chatbot, Mo, at the conference. The chatbot is designed to summarize the firm's independent insights in a conversational format, according to a news release.

    Finally, Mr. Kapoor is "glad we are talking about crypto less — I think people don't understand it," and investors can't invest in something they don't understand.

    Related Articles
    Evolution of 60/40 allocation continues amid high inflation
    Investors weigh authoritarianism as a growing portfolio risk
    Recommended for You
    Global family offices scale back U.S. exposure as Asia and Europe rise
    Global family offices scale back U.S. exposure as Asia and Europe rise
    european-union-flag-brussels-bourse_i.jpg
    Tariff uncertainty creating opportunities for European investments, sources say
    Donald Trump speaking in the Rose Garden with two American flags behind him.
    Global tech sell-off prompted by Trump tariffs has investors eyeing diversification abroad
    Sponsored
    White Papers
    The State of Lifetime Income Report
    The Next Wave of LDI Evolution
    Retirement security to future income wins, TIAA brings you the latest financial…
    U.S. Public Funds Top Performers: Q2 2024
    Generative AI Investing: Opportunities at a Key Tech Inflection Point
    Research for Institutional Money Management: Advancing Physical Risk Modelling,…
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    October 23, 2023 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • CIOs
      • Consultants
      • Defined Contribution
      • ESG
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Private Credit
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • Special Reports
      • Washington
      • White Papers
    • International
      • U.K.
      • Canada
      • Europe
      • Asia
      • Australia - New Zealand
      • Middle East
      • Latin America
      • Africa
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2024
      • Eddy Awards
    • Resource Guides
      • Active Thematic Global Equities
      • Retirement Income
      • Fixed Income
      • Pension Risk Transfer
      • Pooled Employer Plans (PEPs)
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • DC Plan Design: Improving Participant Outcomes
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
    • Print