Morningstar, Inc. (Morningstar), incorporated on May 16, 1984, is a provider of independent investment research to investors worldwide.

The Company offers a range of data, software, and research products for individual investors, financial advisors, and institutional clients through its Investment Information segment. It also provides asset management services for advisors, institutions, and retirement plan participants through its Investment Management segment. In addition to its United States-based products and services, Morningstar offers local versions of its products designed for investors in Asia, Australia, Canada, Europe, and South Africa. Morningstar serves approximately 7.4 million individual investors, 270,000 financial advisors, and 4,300 institutional clients. It has operations in 26 countries.

Morningstar maintains a series of databases on many types of investments, focusing on investment vehicles that are used by investors globally. As of December 31, 2011, the Company provided data on approximately 380,000 investments, including 21,900 mutual fund share classes in the United States. Morningstar sells its advisor-related products both directly to independent financial advisors and through enterprise licenses, which allow financial advisors associated with the licensing enterprise to use its products. Its institutional clients include banks, brokerage firms, insurance companies, mutual fund companies, media outlets, and retirement plan sponsors and providers.

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faces a high degree of competition and a change in the market share prices why?
Morningstar Advisor Workstation is a Web-based investment planning system, that provides financial advisors with a set of tools for conducting their core business, including investment research, planning, and presentations. It allows advisors to build and maintain a client portfolio database that can be fully integrated with the firms backoffice technology and resources. It helps advisors create customized reports for client portfolios that combine mutual funds, stocks, separate accounts, variable annuity/life subaccounts, exchange traded funds (ETFs), hedge funds, closed-end funds, 529 plans, offshore funds, and pension and life funds

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of December 31, 2011, about 153,000 advisors in the United States were licensed to use Advisor Workstation, which is available in two versions: Morningstar Office, formerly Advisor Workstation Office Edition, for independent financial advisors and a configurable enterprise version for financial advisors affiliated with larger firms.

Diversified Emerging Markets: at least 50% of stocks invested in emerging markets. Diversified Pacific Asia: at least 65% of stocks invested in Pacific countries, with at least an additional 10% of stocks invested in Japan. Asia/Pacific ex-Japan: at least 75% of stocks invested in Pacific countries, with less than 10% of stocks invested in Japan. China Region: China region stock portfolios invest almost exclusively in stocks from China, Taiwan and Hong Kong. These portfolios invest at least 65% of total assets in equities and invest at least 75% of stock assets in one specific region or a combination of China, Taiwan and/or Hong Kong. Broad Asset Class Index: MSCI EAFE NR USD Category Index: Russell China TR USD

Europe: at least 75% of stocks invested in Europe. Japan: at least 75% of stocks invested in Japan. Latin America: at least 75% of stocks invested in Latin America. Global Real Estate: Global real estate portfolios invest primarily in non-U.S. real estate securities but may also invest in U.S. real estate securities. Securities that these portfolios purchase include: debt and equity securities, convertible securities, and securities issued by real estate investment trusts (REITs) and REIT-like entities. Portfolios in this category also invest in real-estate operating companies. Also see "World Allocation" in the "Balanced Funds" section below. Bond Funds Funds with 80% or more of their assets invested in bonds are classified as bond funds. Bond funds are divided into two main groups: taxable bond and municipal bond.

china japan asia pacific europe Latin america

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Way wireless narrowband data communications using a single global technology standard anywhere in the world at costs comparable to MORNING STAR. This provides them with a number of competitive advantages that they believe will help promote their success, including the following: Established global satellite network and proven technology. Low cost structure. Sole commercial satellite operator licensed in the VHF spectrum. Significant market lead over satellite-based competitor. Key distribution and OEM customer relationships. Reliable, low cost subscriber communicators.

A global recession and continued worldwide credit and capital constraints could adversely affect them. Recent global economic conditions, including concerns about a recurring global recession, tightening of credit and capital markets and failures or material business deteriorations of financial institutions and other entities, have resulted in unprecedented government intervention in the U.S., Europe and other regions of the world. In addition, the market turmoil and tightening of credit have led to lack of customer confidence,increased market volatility and a reduction of general business activity.

If these conditions recur or worsen, risks to them include: Potential declines in revenues, profitability and cash flow due to reduced orders for our products and services, payment delays or other factors caused by economic challenges faced by our customers, end-users and prospective customers and endusers; Potential adverse impacts on our ability and our customers and vendors ability to access credit and capital sources; and Potential reprioritization by our customers, end-users and prospective customers and end-users of resources away from investments in capital improvements, equipment, vehicles or vessels which use our products and services including in the transportation market among other markets which use our products and services. Any such impacts could have a material adverse effect on our business, financial condition, operating results and cash flow.

Thank you