About the Editor
Alex Bryan, CFA, is director of passive strategies for North America at Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. Before assuming his current role in 2016, Bryan spent four years as a manager analyst covering equity strategies. Previously, he was a project manager and senior data analyst in Morningstar's Data department. He joined Morningstar in 2008 as an inside sales consultant for Morningstar Office.

Bryan holds a bachelor's degree in economics and finance from Washington University in St. Louis, where he graduated magna cum laude, and a master's degree in business administration, with high honors, from the University of Chicago Booth School of Business. He also holds the Chartered Financial Analyst® designation. In 2016, Bryan was named a Rising Star at the 23rd Annual Mutual Fund Industry Awards.


Investment Strategy
Morningstar ETFInvestor scans the globe for value and improving fundamentals across virtually all asset classes. Editor Alex Bryan draws upon academic and practitioner research — including Morningstar's sizeable bench of stock, bond and fund analysts — to find reliable drivers of outperformance.

Morningstar ETFInvestor features four model portfolios.

The Basic Portfolio harnesses the market's collective wisdom with ultra-low-cost funds and is the baseline portfolio against which the three other portfolios will be compared.

The Defensive Portfolio aims to provide lower volatility, better downside protection, and better risk-adjusted performance than the basic portfolio over the long-term.

The Factor Portfolio is designed to earn higher returns than the basic portfolio over the long-term.

The Income Portfolio attempts to earn a higher distribution yield than the basic portfolio, without taking a lot more risk.

 
About Editor Editor's Photo
Alex Bryan, CFA,
Director of Passive Strategies for North America and Editor
Alex Bryan, CFA, is director of passive strategies for North America at Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. Before assuming his current role in 2016, Bryan spent four years as a manager analyst covering equity strategies.Previously, he was a project manager and senior data analyst in Morningstar's Data department. He joined Morningstar in 2008 as an inside sales consultant for Morningstar Office.
Featured Posts
Notable Fixed Income Research Articles

I came across a pair of interesting articles recently. One was by Sam Lee, a former editor of this newsletter, about why the recent yield curve inversion isn't necessarily an indication of an impending recession. You can view the article here: https://svrn.co/

The second was a longer research piece by Michael Mauboussin of Blue Mountain Capital about why active management has paid off more in the bond market than in the stock market. The paper is available here: https://www.bluemountaincapital.com/wp-content/uploads/2019/04/Looking-for-Easy-Games-in-Bonds.pdf

This paper makes some valid points. The presence of non-economic actors in the market and institutional frictions some investors face (like the requirement to sell when something is downgraded below investment grade) likely create some mispricing that active managers can exploit. But I think the bond market is more efficient than it looks and that it is harder to gain an informational edge in the investment-grade bond market than it is in the stock market.

There is much less uncertainty about what investment-grade bonds' future cash flows will be than there is with stocks. The bond market is more heavily dominated by institutional investors than the stock market, as Mauboussin's data show, and investors who trade in those bonds are typically well-informed, and probably unwilling to leave free money on the table.

Risk-taking tends to explain a lot of active managers' outperformance. After better controlling for risk, fewer active managers outperform. I wrote about this last year: https://www.morningstar.com/articles/889470/raising-the-bar-for-active-bond-managers.html

Best,

Alex 

(Disclaimer: This post should not be intrepreted as an endorsement of the views or services of these organizations, which are not affiliated with Morningstar.) 

  

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