Morningstar reports decline in active fund performance amid market challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Source: seekingalpha
Morningstar Inc's stock rose by 5.82% as it reached a 5-day high, despite the broader market decline with the Nasdaq-100 down 1.24% and the S&P 500 down 0.61%.
The company reported that only 38% of actively managed funds outperformed their passive counterparts in 2025, down from 42% in 2024, indicating challenges for active management amid increasing market competition. However, the performance of diversified emerging market funds improved significantly, with 64% surpassing passive peers, suggesting growing investment opportunities that may attract more capital inflows.
This mixed performance highlights the evolving landscape of fund management, where passive strategies are gaining traction due to lower fees, while active funds face increasing pressure to deliver superior returns.
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Analyst Views on MORN
Wall Street analysts forecast MORN stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 166.380
Low
250.00
Averages
285.00
High
320.00
Current: 166.380
Low
250.00
Averages
285.00
High
320.00
About MORN
Morningstar, Inc. is a provider of independent investment insights. The Company's segments include Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. The Morningstar Direct Platform provides investors with data, research and insights, and investment analysis to empower investment decision-making. The PitchBook provides investors with access to data, research, analytics, and artificial intelligence (AI) enabled software across private capital markets, including venture capital, private equity, private credit, bank loans, and mergers & acquisitions (M&A). Morningstar Credit provides investors with credit ratings, research, data, and credit analytics solutions. Morningstar Wealth provides investment products, investor tools, and an advisor platform powered by research and data. The Morningstar Retirement offers products designed to help individuals reach retirement goals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Divergent Future Predictions: Arete Research projects a price target of $401 for SpaceX within the next 12 months, suggesting an upside of approximately 148%, while Morningstar estimates a fair value of $63, indicating stark differences in market sentiment regarding SpaceX's future performance.
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- Diverse Funding Sources: In addition to the federal government's initial contribution, certain children may receive a $250 donation from tech CEO Michael Dell and his wife Susan, along with potential contributions from their parents' employers, showcasing a diversified funding support mechanism.
- Wealth Growth Potential: Projections on the Trump Accounts website suggest that without additional contributions, a child's account could grow to $243,000 by age 55, although research by Morningstar indicates a more conservative estimate of $38,000, reflecting the impact of investor behavior and family income.
- Importance of Long-Term Investment: Morningstar emphasizes that ongoing contributions from families and employers are crucial for wealth accumulation, with average account holders expected to have $3,324 at age 18, which could rise to $15,154 with an annual contribution of $250, highlighting the necessity of regular investments.
See More
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See More
