Morningstar Development Program

can someone answer these questions? thanks

hey,

i have done two internships at morningstar including one in equity research. the MDP program is some kind of rotational program and it is Mstar's way of competing for top undergrad talent (i use that term very loosely in this context).

I know that the MDP's in equity research division get the title of "Associate Equity Analyst" instead of just "Equity Analyst." they also get tons of special treatment that makes everyone else jealous, like two weeks of intense training, slightly better compensation, and some additional responsibilities.

the compensation is something like 60k, a modest signing bonus (less than 10k i believe) and a practically nonexistent bonus (cant expect much more than 5k-ish). its nothing to write home about, but the lifestyle is fantastic. you wont work more than 10 hours a day (at the very most), you can wear shorts to work, and theres all kinds of perks that im prety sure a lot of the big banks dont offer.

interview process is supposed to be somewhat rigorous. ive had a few friends who have been through it and can find out more from them if necessary. several two on one's, thats all i know

overall, i can see this program being more competitive now that i-banking is dying out. i would say the skills you develop in equity research are directly transferable to investment banking, although the way Morningstar does valuation is vastly different than any bank. you also get interviewed for newspapers and stuff almost right off the bat, assuming you cover a well-known stock that people actually care about.

personally, i dont want to go back to mstar becasue the culture did not fit me. im more interested in a more professional, demanding, client-oriented culture like that at a BB. so id rather do PWM at a BB and learn nothing than go to Mstar and learn a lot, but to each his own. i know a handful of very intelligent kids from my target school who loved morningstar and will be doing the MDP program. in my internship class last summer there was 1 harvard, 1 cornell, 3 northwestern, and a couple kids from somewhat-respectable Chicago universities. interns in other divisions included some from UChicago, Williams, and Princeton. so the pedigree is decent, and i think it will be getting better.

Morningstar ER also places well with UChicago and Kellogg business schools. taking the CFA is the cool thing to do for equity analysts.

hope that helps. PM me with any more specific questions.