UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-23235
Morningstar Funds Trust
(Exact name of registrant as specified in charter)
Morningstar Funds Trust
22 W. Washington Street
Chicago, IL 60602
(Address of principal executive offices) (Zip code)
D. Scott Schilling
Morningstar Funds Trust
22 W. Washington Street
Chicago, IL 60602
With a copy to:
Eric S. Purple
Stradley Ronon Stevens & Young, LLP
2000 K Street N.W., Suite 700
Washington, District of Columbia, 20006
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 696-6000
Date of fiscal year end: April 30
Date of reporting period: April 30, 2022
Item 1. Reports to Stockholders.
| (a) | Report pursuant to Rule 30e-1 |
April 30, 2022
| Morningstar U.S. Equity Fund | |
| Morningstar International Equity Fund | |
| Morningstar Global Income Fund | |
| Morningstar Total Return Bond Fund | |
| Morningstar Municipal Bond Fund | |
| Morningstar Defensive Bond Fund | |
| Morningstar Multisector Bond Fund | |
| Morningstar Global Opportunistic Equity Fund (formerly the Morningstar Unconstrained Allocation Fund) | |
| Morningstar Alternatives Fund | |
Morningstar Funds Trust April 30, 2022
Introduction
Morningstar Investment Management LLC launched an open end management investment company consisting of nine separate portfolios (each a Fund) that span the investment opportunity set1. Most of these Funds are designed to provide exposure to a broad asset class, such as U.S. equities, while our active management of each Fund’s asset allocation, allocation to active managers (known as “subadvisers”), and exposures to exchange traded funds (ETFs), or direct equities allow us to adjust sub-asset class allocations (such as small-cap value) based on our valuation views and those of the subadvisers.
Concept and Structure
We created the Morningstar Funds Trust using an open architecture, multimanager approach, hiring as active subadvisers both institutional managers and other managers whose mutual funds were previously used in Morningstar® Managed PortfoliosSM. Our analysts and portfolio managers continually use research, data, and analysis from Morningstar, Inc. and its affiliates to study the subadvisers and their investments closely and determine which fit best with our investment philosophy and the investment objectives of each Morningstar Fund2. We have recommended subadvisers we believed were independent, skilled investors in their respective asset classes to manage the Funds.
Consistent with our investment approach, our asset allocation process for the Morningstar Funds is based on fundamentals and driven by valuations. We look for asset classes and sub-asset classes around the globe that, in our view, offer fundamental value relative to price. Allocations within each Fund are in line with what we believe to reflect the best risk-adjusted opportunities.
How to Read This Report
Unless stated otherwise, this report outlines the structure and performance of the assets comprised by the Morningstar Funds Trust from May 1, 2021 through April 30, 2022. Included are fund holdings, positioning and performance summaries, including relevant commentary and examples that may aid understanding of returns for the year.
The commentary, views, and opinions in this report were current as of April 30, 2022. Our views reflect performance results net of fees and expenses as of the end of the reporting year.
Statements made within this report are not guarantees of future performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change views about individual holdings, sectors, and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Morningstar Funds’ future investment intent.
1All references to "we" or "our" in this report, including the funds' performance summaries, refer to Morningstar Investment Management LLC.
2 Morningstar Funds Trust is an open end management investment company registered under the Investment Company Act of 1940 (as amended). Use of the term “Morningstar Funds” hereafter refers to Morningstar Funds Trust, or its individual series, as applicable.
Morningstar Funds Trust April 30, 2022
Morningstar Funds Trust April 30, 2022
Statement of Shareholder Rights
It is important to note that as a shareholder, you have certain rights and protections, chief among them an independent Board of Trustees (the "Trustees"), whose main role is to represent your interests.
The Trustees are responsible for the overall management of the Trust, including general supervision and review of the investment activities of each Fund. The Trustees, in turn, elect the officers of the Trust, who are responsible for administering the day-to-day operations of the Trust and each Fund. The “Independent Trustees” are Trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940 ("1940 Act") (e.g. not a Morningstar employee).
For more information about the Independent Trustees, please see the Fund Governance Matters section of this shareholder report.
You may contact the Trustees with comments or concerns about your investment in the Morningstar Funds:
By mail: Morningstar Funds Trust
c/o D. Scott Schilling, Chief Compliance Officer
22 West Washington Street
Chicago, IL 60602
By email: BoardofTrustees.MorningstarFundsTrust@morningstar.com
Morningstar Funds Trust April 30, 2022
Who is representing you as a shareholder of a Morningstar Fund?
The Morningstar Funds’ Board of Trustees represents shareholder interests. As of June 22, 2022, the Morningstar Funds’ Board of Trustees is comprised of 5 trustees – 4 are “independent” trustees and 1 is an “interested” trustee as a result of being an employee of Morningstar. Additional information about the Board can be found in Morningstar Fund Trust's Statement of Additional Information (SAI), available at https://connect.rightprospectus.com/Morningstar. Information about the Trustees and the Board’s policies are available at https://www.morningstar.com/company/morningstar-funds-governance.
What is the diversity of the Board of Trustees?
The 4 Independent Trustees self-identify as follows:
• 2 as women, and 2 as men; and
• 3 as white, and 1 as African American
The 1 Interested Trustee self-identifies as a white man.
In terms of leadership positions of the Board:
• Chair of the Board is a white woman;
• Chair of the Governance Committee is a white woman; and
• Chair of the Audit Committee is a white man.
How are Independent Trustees compensated?
The compensation adopted by the Board provides for an annual retainer for Independent Trustees of $141,000 per year. The Chair of the Board (an Independent Trustee) is paid an additional retainer of $43,000, while the Chair of the Audit Committee (an Independent Trustee) is paid an additional $15,000 and the Chair of the Governance Committee (an Independent Trustee) is paid an additional $10,000, effective July 1, 2022.
All Independent Trustees are reimbursed for expenses connected with attending a Board meeting, most notably airfare and lodging expenses. Independent Trustees’ annual retainer and costs in connection with attending a Board meeting are allocated among each of the nine Morningstar Funds. The Trust has no pension or retirement plan for the Independent Trustees.
Morningstar Funds Trust April 30, 2022
Fund Governance Matters (continued)
Are Independent Trustees required to invest in the Morningstar Funds?
Yes, the Independent Trustees have adopted a policy to invest, at a minimum, at least $141,000 in the Funds, which is equal to the base annual retainer to be paid to each Independent Trustee. There is a phase-in period for Independent Trustees who have joined the Board after 2018 that requires them to invest at least $47,000 a year (i.e., one-third of the base annual retainer) until they have invested $141,000 in the Funds. As of April 30, 2022, each Independent Trustee has satisfied this investment requirement. For more information on the Independent Trustees investments in Morningstar Funds, please see the Trustee Ownership of Portfolio Shares table within the Trustees and Executive Officers section of the Statement of Additional Information available at https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
To Our Shareholders:
What a difference a few years can make.
When we first launched the Morningstar Funds Trust in 2018, we had two objectives: reduce fees paid by investors in our multi-asset Managed Portfolios and improve investment capabilities.
More than three years later, we can safely say that we have achieved both objectives—and then some.
Prior to the launch of the Morningstar Funds Trust, we built our actively managed multi-asset Morningstar® Managed PortfoliosSM with the help of actively managed third-party 1940 Act mutual funds. This structure, while valuable for its open-architecture approach, embedded the expense ratios of those mutual funds in the overall cost of the Managed Portfolios strategies. By launching the Morningstar Funds Trust and shifting to a proprietary fund structure with outside asset managers embedded within the funds as subadvisers, we were able to operate in a more cost-effective way within the Managed Portfolios while maintaining the same open-architecture access.
In fact, since the launch of the Funds, our managed-portfolio expense fees have fallen by as much as 15bps* in approximately 97% of the product assets as of April 30, 2022.
Moreover, while we still follow the same rigorous manager-selection process to leverage active management from what we believe are the top asset managers in the industry, the launch of the Morningstar Funds Trust has also allowed us to utilize our global research platform to a greater extent, including ETFs alongside subadvisers to express our proprietary investment views and allocating to them with daily cash flows based on market movement.
More recently, we added the ability of using baskets of individual stocks rather than ETFs, which we dub “equity sleeves,” to better express the nuance of a particular market view. This has allowed us to target the most fundamentally appealing area of a market opportunity—favoring a particular sector or company size, for example, rather than adhering to the market cap weights that dominate ETFs—in an effort to generate compelling returns for shareholders.
Lower costs and greater capability were reason enough for the launch of the Funds.
However, a third point, which we believe will contribute equally to the enduring appeal of the Trust, has become apparent: our multi-asset perspective, as opposed to a myopic single asset class focus, in constructing and managing individual mutual funds.
Nearly all major asset-management providers offer model portfolios, which are composed predominately of their own mutual funds, to financial advisers who, in turn, offer them to their clients. In most cases, the model portfolios are new relative to the underlying mutual funds, many of which have been around for decades and were constructed on a case-by-case basis with particular indexes and mutual fund categories in mind.
Morningstar Funds Trust April 30, 2022
Letter to Shareholders (continued)
Our approach has been the reverse. At Morningstar Investment Management we have managed multi-asset model portfolios (i.e., Morningstar® Managed PortfoliosSM) since 2001, which means that some of our models were more than 15 years old when we launched the Morningstar Funds Trust.
While individual Fund performance is always important, as a result of our history, our perspective in the construction of any individual Fund is less about its outperformance in one specific category and more about its role in helping the broader portfolio achieve its investment objective in addition to the objective of the specific individual Fund.
This may sound like hair-splitting, but the difference can be profound. Just as there is no “I” in team, the portfolio’s performance must come from each individual contributor—in this case, each individual Fund—working alongside one another. In fact, when a team is too focused on one player, there is a risk the team will not execute the overall game plan as intended.
Consider the varying incentives for a short-term bond fund. In launching a short-term bond fund, a heavy focus on the category could lead portfolio managers to take modestly higher interest-rate or credit risk, expecting the added juice to lead to outperformance relative to its peers, even if it generates greater volatility or experiences bigger losses during market drawdowns. A holistic portfolio perspective, however, would consider the rate and credit exposure found in core and opportunistic bond funds and focus far more intently on defensiveness—capital preservation—within the short-term bond mandate, regardless of what it might cost from a peer-relative perspective. After all, we believe the ultimate goal for investors is not the category outperformance of a particular fund, but the success of the broader portfolio, which is the greater determinant in the investor’s ability to reach his or her financial goals.
We recently enhanced this perspective after a review of the Funds within the Trust in 2021, which included not just an assessment of the performance and construction of each Fund, but also the clarity and distinctiveness of each Fund relative to its role as part of an investor’s broader portfolio.
The review led to a series of adjustments to various Funds, including recalibrating the Morningstar Global Income Fund to enhance its income potential, a subadviser change to the Morningstar Multisector Bond Fund to make it more explicitly focused on higher-yielding segments of the global fixed-income market, and a subadviser, benchmark, and name change to the Morningstar Global Opportunistic Equity Fund**, to reduce overlap with capital preservation funds within the broader Trust and make it a more predictably opportunistic fund.
We believe these changes will not only allow for better opportunity for improved Fund performance, but also better constructed multi-asset portfolios within our own program and will make our Funds easier for financial advisers to use as they construct their own models using our mutual funds.
That said, this emphasis on “role in portfolio” means the Morningstar Funds will not always rank well relative to category peers, particularly if their roles in a portfolio prevent them from moving in or out of securities that others in the categories use, but conflict with the Morningstar Funds’ portfolio construction mandates.
Morningstar Funds Trust April 30, 2022
Letter to Shareholders (continued)
The Morningstar Global Income Fund, for example, sits in the Morningstar Global Allocation category. At times, this could be an advantage, given the Fund’s heavier stake in high-yield bonds to generate attractive levels of income. However, in periods when the high-yield bond market is selling off, the Fund may suffer deeper stretches of peer-relative underperformance.
The Morningstar U.S. Equity Fund faces its own mismatch, operating as an all-cap fund in the Morningstar Large Blend category. We have structured the Fund in this manner so it can express our best views across market caps and U.S. sectors, but when small-cap performance meaningfully deviates from that of large caps, the discrepancy has an impact on the Fund’s relative ranking. In a similar vein, the broad-reaching Morningstar International Equity Fund carries significantly more exposure to emerging markets compared to the typical peer in the Foreign Large Blend category. This tilt hurt the Fund’s relative showing last year, as China and other emerging markets lagged developed regions in 2021.
These and other mismatches duly noted, it’s critical to recognize that a heightened emphasis on “role in portfolio” is not an excuse for poor performance. Over the trailing three-plus years, some Funds, such as the Morningstar Global Opportunistic Equity Fund and the Morningstar Defensive Bond Fund, have outperformed their benchmarks and ranked well in their respective categories. Other Funds, such as the Morningstar U.S. Equity Fund, the Morningstar International Equity Fund, and the Morningstar Multisector Bond Fund, have suffered significant bouts of underperformance relative to peers and benchmarks.
It is our expectation that the mandate changes to the Morningstar Multisector Bond Fund will improve its ability to outperform its benchmark and compare more favorably with peers over the long run.
In the case of the Morningstar U.S. Equity Fund and the Morningstar International Equity Fund, we believe a certain measure of that underperformance was consistent with expectations given the Funds’ style biases. The valuation orientation of the Morningstar U.S. Equity Fund and the Morningstar International Equity Fund put them at a disadvantage as growth stocks, particularly FAANGM*** stocks in the U.S., soared during the COVID-19 pandemic. Similarly, the Morningstar U.S. Equity Fund’s inclusion of small-cap stocks, as part of its intended all-cap profile, has been a headwind so far.
These biases will not always cost the Funds. In fact, for the Morningstar U.S. Equity Fund in particular, the value orientation has helped results for the first four months of 2022.
However, we do not attribute the underperformance solely to style biases. Their performance dispersion relative to their respective benchmarks was greater than we would have preferred, even given the market environment, and we have taken a close look at the correlation between positions within the Funds, how we have sized our allocations to aggregated exposures, and what adjustments we can make to our portfolio construction framework to generate more consistent Fund results. And, as always, we continuously review the subadvisers within the Funds to ensure they behave as we would expect in different market environments and work well with one another.
Morningstar Funds Trust April 30, 2022
Letter to Shareholders (continued)
Ultimately, our aim is to outperform the benchmarks of our carefully considered Fund objectives over appropriate time horizons; in many cases that means performance over the up and down of a market-cycle. We set out to provide investors with the full range of tools within the Funds so that they can construct well-designed multi-asset portfolios. When we hit the mark, we celebrate our success; when we do not, we endeavor to be as candid as possible about what caused us to fall short, and we redouble our efforts.
Long-term investment success is not a check-the-box exercise; it’s a never-ending, always-restarting journey. That said, there are steps we can take that put us on the right path, and with that in mind, we are pleased to have met our initial objectives from three years ago of lower costs and greater investment capability. We are also encouraged by other refinements to our investment approach, which is designed to lead to strong, full market-cycle performance. These refinements include consideration for contingent events and factors we believe could materially impact a security's market value in our research of asset-class opportunities. We are also increasing our focus and emphasis on robust portfolio construction in a valuation-aware framework.
We appreciate your business, and we thank you for your continued confidence and trust in us. We look forward to helping you achieve your goals over the next year.
Marta K. Norton
Chief Investment Officer, Americas
Morningstar Investment Management LLC
*Source: Morningstar Investment Management. Data as of April 30, 2022.
**Effective as of May 1, 2022, the Morningstar Unconstrained Allocation Fund was renamed to the Morningstar Global Opportunistic Equity Fund.
***FAANGM refers to Facebook, Apple, Amazon, Google (Alphabet), and Microsoft.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar U.S. Equity Fund
| General Information | |
| Net Asset Value Per Share | $11.43 |
| Total Net Assets (millions) | $1,490 |
| Net Expense Ratio(a) | 0.85% |
| Gross Expense Ratio(a) | 0.91% |
| Portfolio Turnover Rate | 61% |
| Number of Companies | 320 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Weighted Average Market Capitalization (billions) | $60.67 |
| Price-to-Earnings Ratio(b) | 18.63 |
| Ten Largest Equities (%)(c)(d)(e) | |
| Amazon.com, Inc. | 2.9 |
| Microsoft Corp. | 2.6 |
| Apple, Inc. | 2.1 |
| Meta Platforms, Inc., Class A | 1.6 |
| Visa, Inc., Class A | 1.3 |
| Thermo Fisher Scientific, Inc. | 1.2 |
| Pfizer, Inc. | 1.2 |
| UnitedHealth Group, Inc. | 1.1 |
| Johnson & Johnson | 1.0 |
| Dominion Energy, Inc. | 1.0 |
| Sector Diversification (%)(c)(d) | |
| Consumer, Noncyclical | 17.5 |
| Financial | 15.9 |
| Technology | 12.4 |
| Communications | 9.9 |
| Industrial | 9.4 |
| Consumer, Cyclical | 8.4 |
| Energy | 6.0 |
| Utilities | 3.0 |
| Basic Materials | 2.7 |
* Includes, if any, cash, short-term investments, receivables, payables and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.85% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 0.85%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.85% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Price-to-earnings (P/E) ratio is calculated using 12-month forward earnings estimates from third party sources deemed reliable.
(c) Percentages shown are based on Net Assets.
(d) Excludes Investment Companies, Master Limited Partnerships and Other.
(e) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar U.S. Equity Fund
Investment Objective
Morningstar U.S. Equity Fund seeks long-term capital appreciation.
Investment Strategies
In seeking long-term capital appreciation, the Fund will normally invest at least 80% of its assets in equity securities of U.S.-based companies, and may invest up to 100% of its assets in such securities. The Fund seeks to provide broad U.S. equity exposure across market capitalizations and investment styles and has the flexibility to invest in large-cap, mid-cap, and small-cap common stocks across the growth and value style spectrum. The Fund may also invest in real estate investment trusts (REITs), master limited partnerships and non-U.S. companies. To meet its objective, the Fund may invest in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets. The Fund may invest in derivatives, including futures and forward foreign currency contracts, for risk management purposes or as part of its investment strategies.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and making Allocation Decisions with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
Over the reporting period from May 1, 2021 to April 30, 2022, the U.S. equity market progressed through a couple of distinct phases. Entering the period, the economy was still rebounding from the 2020 pandemic. Job gains, consumer spending, and corporate earnings were all still recovering strongly. This boded well for so-called value stocks—which tend to be sensitive to the economy, and which had taken a back seat to growth stocks in 2020 as many technology and internet stocks swung into favor in the work-from-home environment. By 2021’s second quarter, however, growth stocks were back leading the market. Some of this simply had to do value stocks coming off a strong first quarter. But also, the rise of the COVID-19 Delta and Omicron variants tempered enthusiasm toward the economy, sending some investors back into growth stocks considered resilient to a slowdown. The result was that from May 1 to December 31, 2021, the Russell 1000 Growth Index gained 17.35%, while the Russell 1000 Value Index was up only 8.17%. Given our value-oriented investment style—and generally value-leaning positioning during the period—that was a headwind for the Fund.
Conditions changed in 2022. High inflation readings spawned by the economic rebound and related supply and labor shortages were too much for the U.S. Federal Reserve to ignore. The Fed let it be known that rate hikes would be necessary to combat inflation, and made good on its promise with an initial rate increase in March (with the understanding that more hikes were coming). Stock analysts often estimate the present “fair values” of high-growth companies by pulling forward the value of (expected) large future cash flows, using current interest rates as a proxy for the time value of money. The lower the interest rate used, the higher the resulting present fair value. Many investors expected rising interest rates to force downward adjustments to analysts’ fair values for the more expensive growth stocks. And that seems to be what has happened so far in 2022. Of course, the Ukraine war has also rattled markets this year. With both of these factors weighing on the market,
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar U.S. Equity Fund
investors seem to have been more eager to exit the priciest growth stocks. From the beginning of 2022 through April 30, 2022 the Russell 1000 Growth Index fell 20.03%, compared to a loss of 6.34% for the Russell 1000 Value Index. For the full trailing 12-month period covered here, the growth index was down 5.35%, while the value index was slightly in the black with a 1.32% gain. (The growth index is still ahead of the value index for the trailing three and five years.)
One important caveat is that smaller-cap stocks lagged large caps over the past year. For the 12-month period, the Russell 2000 Index of small-cap stocks recorded a 16.87% loss, which was far worse than either of the large-cap indices cited above. Because the Fund is intended to be an all-cap vehicle, it has a meaningful allocation to small-cap stocks, whereas small caps are only a minor part of the Fund’s Morningstar U.S. Market Index benchmark. The Fund’s higher allocation to small caps was therefore a performance detractor relative to the benchmark. Another detractor was the fact that the Fund’s large-cap growth subadviser, which commands a big percentage of the Fund’s assets, lagged its benchmark by a fairly wide margin (due largely to weighting differences between its portfolio and its benchmark in some of the market’s biggest technology and internet companies.)
These negatives were accompanied by some positives. Most notably, the Fund’s overweight position in energy and energy infrastructure rallied on the rise in oil prices. More generally, the portfolio’s overall lean toward value was helpful; our large-value and mid-value subadvisers outperformed the broad market. Overweights to consumer staples and healthcare—defensive positions held deliberately to help offset some of the cyclical exposure in the portfolio—also contributed good relative returns over the period.
Given these offsetting effects, the Fund’s return for the period was fairly close to that of the benchmark. The Fund posted a -3.11% return after expenses, compared to the -2.93% return for the Morningstar U.S. Market Index.
As technology, communication services, and other growth stocks have come down in price lately, we have gradually added to them to reduce our underweight. This has made the portfolio noticeably more balanced from a value/growth perspective. As a by-product of our trims and adds, the portfolio’s small/mid-cap weighting has also shrunk from a year ago. All of that said, as of the end of the reporting period, the Fund still leans more toward value and still has more small-cap exposure than the benchmark. Our research continues to support that positioning, even if not as pointedly as a year ago. Our team’s research process emphasizes positioning for a three- to five-year horizon, and we typically make measured adjustments through time rather than wholesale changes.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
ClearBridge Investments, LLC
Diversified large-cap growth equity across stable, cyclical and select growth companies.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar U.S. Equity Fund
Diamond Hill Capital Management, Inc.
Targeted exposure to U.S. mid-cap value companies.
Easterly Investment Partners LLC (formerly Levin Easterly Partners LLC)
Provides large-cap blend U.S equity exposure.
Massachusetts Financial Services Company, d/b/a MFS Investment Management
Provides large-cap value exposure, favoring higher-quality, value companies with stronger balance sheets and more consistent profitability.
Wasatch Advisors, Inc., d/b/a Wasatch Global Investors
Small-/mid-cap growth companies with the potential to deliver more stable profits while avoiding earlier-stage companies that may lack a proven track record of revenues and earnings.
Westwood Management Corp.
Provides small-cap equity with an emphasis on value.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar U.S. Equity Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year2 | Since Inception3 |
| Morningstar U.S. Equity Fund | -3.11% | 9.90% |
| Morningstar U.S. Market Index1 | -2.93% | 14.05% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar U.S. Equity Fund shares versus the Morningstar U.S. Market Index ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar U.S. Equity Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or taxes. The comparison is shown for illustration purposes only.
Morningstar U.S. Equity Fund
This chart does not imply future performance.
1The Morningstar U.S. Market Index is a diversified, broad-market index that targets 97% market capitalization coverage of the U.S. stock market. Investors should note that indices do not reflect the deduction of fees, expenses or taxes.
2Represents performance from May 1, 2021 to April 30, 2022.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar International Equity Fund
| General Information | |
| Net Asset Value Per Share | $9.57 |
| Total Net Assets (millions) | $912 |
| Net Expense Ratio(a) | 1.00% |
| Gross Expense Ratio(a) | 1.19% |
| Portfolio Turnover Rate | 67% |
| Number of Companies | 393 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Weighted Average Market Capitalization (billions) | $42.21 |
| Price-to-Earnings Ratio(b) | 12.35 |
| Countries Represented | 44 |
| Emerging Markets(c)(d) | 29.4% |
| Ten Largest Equities (%)(c)(d)(e) | |
| Tencent Holdings Ltd. | 1.9 |
| Allianz S.E. | 1.5 |
| Shell PLC | 1.5 |
| Alibaba Group Holding Ltd. | 1.4 |
| Samsung Electronics Co. Ltd. | 1.2 |
| Toyota Motor Corp. | 1.1 |
| Lloyds Banking Group PLC | 1.1 |
| Bayer A.G. | 1.0 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.9 |
| Intesa Sanpaolo S.p.A. (Italian Exchange) | 0.9 |
| Sector Diversification (%)(c)(d) | |
| Consumer, Noncyclical | 19.6 |
| Financial | 19.4 |
| Consumer, Cyclical | 14.3 |
| Industrial | 10.9 |
| Communications | 10.8 |
| Technology | 8.5 |
| Basic Materials | 5.7 |
| Energy | 5.0 |
| Utilities | 1.2 |
| Diversified | 0.1 |
| Region Diversification (%)(c)(d) | |
| Europe (excluding United Kingdom) | 30.3 |
| Pacific (excluding Japan) | 28.1 |
| Japan | 18.1 |
| United Kingdom | 10.2 |
| Latin America | 3.9 |
| Canada | 1.6 |
| Africa | 1.3 |
| United States | 1.2 |
| Middle East | 0.8 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 1.00% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 1.00%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 1.00% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Price-to-earnings (P/E) ratio is calculated using 12-month forward earnings estimates from third party sources deemed reliable.
(c) Percentages shown are based on Net Assets.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar International Equity Fund
(d) Excludes Investment Companies and Other.
(e) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar International Equity Fund
Investment Objective
Morningstar International Equity Fund seeks long-term capital appreciation.
Investment Strategies
In seeking long-term capital appreciation, the Fund will normally invest at least 80% of its assets in equity securities. Under normal circumstances, the Fund will invest approximately 80-100% of its assets in securities of issuers domiciled outside of the United States. The Fund may invest in developed and emerging markets and will typically invest in a minimum of 10 countries. The Fund seeks to provide broad international equity exposure across market capitalizations and investment styles and has the flexibility to invest in large-cap, mid-cap, and small-cap common stocks across the growth and value style spectrum. To meet its objective, the Fund may invest in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets. The Fund may also invest in derivatives, including futures and forward foreign currency contracts, for risk management purposes or as part of its investment strategies.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar International Equity Fund posted a loss of 12.77% for the fiscal year ending April 30, 2022, compared to a loss of 10.04% for its benchmark, the Morningstar Global Markets ex U.S. Index (net).
Following strong performance in 2021, global equity markets became volatile in 2022 following Russia’s invasion of Ukraine in late February. The war, and the resulting sanctions against Russia, served to interrupt global supply chains and push commodity and oil prices even higher. Rising inflation resulted in increased interest rates, stoking fears of slower economic growth, particularly in Europe, where ties to Russian energy and supply chains are most acute. At the same time, China’s zero-COVID-19 policy, which resulted in rolling lockdowns in its major cities, stalling its economy, only served to exacerbate investor fears of a global recession taking hold this year.
The Fund’s strong tilt toward cyclical sectors weighed on performance during this recent turbulent period. As investors assessed the primary and secondary effects of the war in Ukraine, positions in European banks and consumer discretionary (through our allocation to subadviser Harris Associates) corrected sharply. And while the portfolio’s overweight to outperforming UK stocks helped to cushion losses, our emphasis on stocks from Japan, Germany, and China hurt overall.
Rising interest rates acted as a headwind for the Fund’s growth-oriented subadvisers Harding Loevner and T. Rowe Price, in part due to their exposure to Asian technology stocks pressured by continued regulatory crackdowns by Chinese authorities. Both subadvisers were also light in their exposure to rallying energy and
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar International Equity Fund
commodity stocks, causing them to further underperform their respective style benchmarks over the trailing one-year period. Lazard Asset Management, which employs a value-oriented investment strategy, was a notable bright spot, outperforming the MSCI Emerging Markets Index by more than 900 basis points.
Despite difficult performance in early 2022, we retain a positive outlook for the Fund’s long-term prospects, particularly on a relative basis, as we see attractive valuations and generous yields in the European value sectors we own compared to the broader market. Volatility often provides opportunities for long-term focused investors and near the end of the reporting period we added to some beaten-down quality growth areas, establishing a dedicated position in Chinese Internet stocks, which we believe offer good value despite regulatory pressures. Our overall preference for more traditional value sectors remains, however, and despite the recent outperformance of value vs. growth stocks over the past twelve months, the long-term performance and valuation deficit between growth and value persists and is still wide by historical standards. This gap, coupled with our patient, valuation-focused approach, makes us optimistic about the Fund’s chances for success going forward.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
Harding Loevner L.P.
Provides growth-leaning exposure to non-U.S. developed equity markets.
Harris Associates L.P.
Provides exposure to value-leaning, non-U.S. developed equity markets.
Lazard Asset Management LLC
Provides active equity exposure to emerging-markets value companies.
T. Rowe Price Associates, Inc.
Provides active exposure to emerging-markets growth companies.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar International Equity Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year2 | Since Inception3 |
| Morningstar International Equity Fund | -12.77% | 4.70% |
| Morningstar Global Markets ex U.S. Index (net)1 | -10.04% | 6.05% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar International Equity Fund shares versus the Morningstar Global Markets ex U.S. Index (net) ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar International Equity Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or certain taxes. The comparison is shown for illustration purposes only.
Morningstar International Equity Fund
This chart does not imply future performance.
1The Morningstar Global Markets ex U.S. Index (net) captures the performance of the stocks located in the developed and emerging countries across the world, excluding the United States. Stocks in the index are weighted by their float capital, which removes corporate cross-ownership, government holdings and other locked-in shares. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident individuals who do not benefit from double taxation treaties. Investors should note that such indices do not reflect the deduction of fees, expenses or other taxes.
2Represents performance from May 1, 2021 to April 30, 2022.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Global Income Fund
| General Information | |
| Net Asset Value Per Share | $9.82 |
| Total Net Assets (millions) | $247 |
| Net Expense Ratio(a) | 0.75% |
| Gross Expense Ratio(a) | 0.76% |
| Portfolio Turnover Rate | 138% |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Equity Portfolio (46.1%) | |
| Number of Common Stocks | 134 |
| Five Largest Sectors (%)(b)(c) | |
| Financial | 10.8 |
| Consumer, Noncyclical | 10.1 |
| Energy | 5.9 |
| Communications | 4.6 |
| Basic Materials | 4.3 |
| Ten Largest Equities (%)(b)(c)(d) | |
| Raytheon Technologies Corp. | 1.9 |
| Novartis A.G. ADR | 1.8 |
| Petroleo Brasileiro S.A. | 1.8 |
| PowerGrid Infrastructure Investment Trust | 1.8 |
| Zurich Insurance Group A.G. | 1.7 |
| Softbank Corp. | 1.7 |
| OPAP S.A. | 1.6 |
| Merck & Co., Inc. | 1.5 |
| Vale S.A. | 1.5 |
| Rio Tinto Ltd. | 1.5 |
| Fixed Income Portfolio (38.8%) | |
| Number of Issuers | 300 |
| Sector Diversification (%)(b)(e) | |
| Government | 7.1 |
| Consumer, Cyclical | 6.0 |
| Consumer, Noncyclical | 5.0 |
| Energy | 4.3 |
| Financial | 3.6 |
| Mortgage Securities | 2.6 |
| Asset Backed Securities | 2.5 |
| Communications | 2.3 |
| Industrial | 2.1 |
| Technology | 1.9 |
| Basic Materials | 1.2 |
| Utilities | 0.2 |
| Five Largest Issuers (%)(b)(d)(e) | |
| U.S. Treasury | 4.8 |
| Government of Indonesia | 0.9 |
| BX Trust | 0.5 |
| Ford Motor Credit Co. LLC | 0.4 |
| First Quantum Minerals Ltd. | 0.4 |
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar Global Income Fund
| Credit Quality (%)(b)(e)(f) | |
| U.S. Treasury | 4.8 |
| U.S. Agency | 0.3 |
| AAA | 1.5 |
| AA | 0.4 |
| A | 0.4 |
| BBB | 4.4 |
| BB | 10.2 |
| B | 11.4 |
| CCC | 2.7 |
| Not Rated | 2.7 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.89% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 0.89%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.75% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Percentages shown are based on Net Assets.
(c) Excludes Master Limited Partnerships, Investment Companies and Other.
(d) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
(e) Excludes Common Stocks, Master Limited Partnerships, Investment Companies and Other.
(f) Credit quality ratings are based on the conservative average of Moody’s, S&P Global and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S& P Global’s nomenclature, range from A1 to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Global Income Fund
Investment Objective
Morningstar Global Income Fund seeks current income and long-term capital appreciation.
Investment Strategies
In seeking current income and long-term capital appreciation, the Fund has significant flexibility and invests across asset classes and geographies, according to the adviser’s assessment of their valuations, fundamental characteristics, and income levels. The Fund invests in investment companies such as open, closed-end or ETFs which could represent a significant percentage of the Fund’s assets. The Fund generally expects to invest at least 20% (or, if market conditions are unfavorable, at least 10%) of its assets in securities of issuers domiciled outside of the United States and may invest up to 100% of its assets in such securities.
The Fund invests in income-generating equity securities, which may include common stocks, preferred stocks, real estate investment trusts (REITs), and master limited partnerships (MLPs). The fund may invest in companies of any size from any country, including emerging markets.
The Fund also invests in fixed-income securities of varying maturity, duration, and quality. These may include U.S. and non-U.S. corporate debt securities, U.S. and non-U.S. government debt securities, emerging market debt securities, mortgage-backed and asset-backed securities, convertible securities and floating-rate notes. The Fund may invest without limit in fixed-income securities that are rated below investment grade (commonly known as junk bonds) or, if unrated, are determined by the Fund’s subadviser(s) to be of comparable quality.
The Fund may also invest in derivatives, including options, futures, swaps, and forward foreign currency contracts, for risk management purposes or as part of its investment strategies.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Global Income Fund declined 6.00% for the fiscal year ending April 30, 2022, outperforming the Fund’s blended benchmark (75% Morningstar Global Markets NR Index, 25% Bloomberg Multiverse Total Return Index), which returned -7.74% for the same period.
Global equity markets continued to rally in 2021 before the strong pullbacks in 2022. Value stocks, which this Fund has the most exposure to, got off to a big lead early in 2021 as cyclical sectors rebounded. However, growth stocks made a comeback when rates stopped rising and pulled slightly ahead of value by the end of 2021. Markets outside of the U.S. continued to lag which was a performance headwind for the Fund given its
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Global Income Fund
overweight in non-U.S. stocks. Weakness in the Euro and the Japanese Yen further hurt returns in U.S. dollar terms. Further, regulatory headwinds within the internet and real estate sectors in China prompted disappointing results for emerging markets during the fiscal year.
As we entered 2022, markets quickly turned sour amid the concerns around rising inflation. Russia’s invasion of Ukraine in February added more uncertainty to the global economy. The Morningstar Global Market index lost 12.9% during the first four months of 2022. Growth sectors saw the biggest decline while value sectors held up significantly better. Energy, the top performing sector in 2021, continued to surge in 2022 and contributed the most to the Fund during the fiscal year. Other dedicated equity exposures in the Fund, including U.K. equity and European Financials, held up well in 2022 and aided performance.
Fixed income markets were more muted in 2021 before experiencing one of the worst starts of the year in the past four decades. The Bloomberg Multiverse index lost 11.2% in 2022 through April largely due to rising rates. The 10-year Treasury yield rose to 2.89% from 1.51% at the start of the year. Credit spreads widened as economic concerns started mounting. Russia's invasion of Ukraine, rising inflation and commodity prices, and monetary policy tightening in developed countries raised concerns over emerging market debt, which suffered one of their most severe selloffs through its history.
As part of the effort to better support the Fund’s mandate, we introduced a new multi-asset credit subadvisor in February 2022 to enhance the income potential of the Fund. The change proved to be a timely and effective move as the new sleeve’s sizable exposure to floating rate securities and active management within credit sectors limited the negative impacts from the market selloff at the end of the reporting period. Moreover, we believe the sleeve is positioned well to take advantage of better income opportunities in global credit markets, including areas that are not easily captured through passive investment options.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
Cullen Capital Management, LLC
Global income that seeks exposure to attractively priced, high-quality, dividend-paying companies in the U.S. and international markets, including emerging markets.
Western Asset Management Company, LLC
The multi-asset income sleeve seeks to generate high income across all global credit markets by leveraging Western Asset's best income ideas.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Global Income Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year2 | Since Inception3 |
| Morningstar Global Income Fund | -6.00% | 5.19% |
| Morningstar Global Income Blended Index1 | -7.74% | 7.85% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Global Income Fund shares versus the Morningstar Global Income Blended Index ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Global Income Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or certain taxes. The comparison is shown for illustration purposes only.
Morningstar Global Income Fund
This chart does not imply future performance.
1The Morningstar Global Income Blended Index is composed of 75% Morningstar Global Markets NR Index and 25% Bloomberg Barclays Multiverse Total Return Index. The Morningstar Global Markets NR Index captures the performance of the stocks located in the developed and emerging countries across the world. The Bloomberg Barclays Multiverse Total Return Index provides a broad-based measure of the global fixed-income bond market. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident individuals who do not benefit from double taxation treaties. Investors should note that such indices do not reflect the deduction of fees, expenses or other taxes.
2Represents performance from May 1, 2021 to April 30, 2022.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Total Return Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.42 |
| Total Net Assets (millions) | $829 |
| Net Expense Ratio(a) | 0.55% |
| Gross Expense Ratio(a) | 0.76% |
| Portfolio Turnover Rate | 346% |
| Number of Issuers | 622 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 6.8 |
| Non-USD Exposure(c)(d)(e) | 0.3% |
| Five Largest Issuers (%)(c)(d)(f) | |
| U.S. Treasury | 17.9 |
| Federal National Mortgage Association | 10.5 |
| Federal Home Loan Mortgage Corporation | 5.1 |
| Government National Mortgage Association | 4.2 |
| Fannie Mae or Freddie Mac | 3.3 |
| Credit Quality (%)(c)(d)(g) | |
| U.S. Treasury | 17.9 |
| U.S. Agency | 23.7 |
| AAA | 5.5 |
| AA | 2.3 |
| A | 11.9 |
| BBB | 16.3 |
| BB | 1.5 |
| B | 0.5 |
| CCC | 0.2 |
| Not Rated | 1.2 |
| Sector Diversification (%)(c)(d) | |
| Mortgage Securities | 28.0 |
| Government | 20.4 |
| Financial | 9.4 |
| Energy | 4.3 |
| Asset Backed Securities | 4.0 |
| Communications | 3.6 |
| Consumer, Noncyclical | 3.4 |
| Technology | 2.0 |
| Industrial | 1.9 |
| Utilities | 1.4 |
| Consumer, Cyclical | 1.3 |
| Basic Materials | 1.3 |
| Region Diversification (%)(c)(d) | |
| United States | 70.7 |
| Latin America | 4.9 |
| Europe (excluding United Kingdom) | 1.9 |
| Pacific (excluding Japan) | 1.4 |
| United Kingdom | 0.6 |
| Middle East | 0.6 |
| Canada | 0.4 |
| Japan | 0.3 |
| Africa | 0.2 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.53% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 0.53%, including as a result of AFFE borne by the Fund. Notwithstanding
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar Total Return Bond Fund
the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.54% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Effective duration is a measure of a Fund's interest-rate sensitivity—the longer a Fund's duration, the more sensitive the Fund is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while shorter maturities and higher coupons shorten duration.
(c) Percentages shown are based on Net Assets.
(d) Excludes Investment Companies and Other.
(e) Non-USD currency exposure for the Fund reflects the value of the portfolio’s non-U.S. dollar denominated investments, as well as the impact of currency derivatives.
(f) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
(g) Credit quality ratings are based on the conservative average of Moody’s, S&P Global and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S& P Global’s nomenclature, range from A‐1 to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Total Return Bond Fund
Investment Objective
Morningstar Total Return Bond Fund seeks to maximize total return while also generating income and preserving capital.
Investment Strategies
In seeking to maximize total return while also generating income and preserving capital, the Fund will normally invest at least 80% of its assets in debt securities (commonly referred to as “bonds”) of varying maturity, duration, and quality. To meet its objective, the Fund may invest in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets.
The Fund invests primarily in investment-grade fixed-income securities. These may include U.S. and non-U.S. investment-grade corporate debt securities, U.S. government debt securities, including Treasury Inflation Protected Bond Securities and zero-coupon securities, non-U.S. government debt securities, emerging-market debt securities, and mortgage-backed and asset-backed securities. The Fund may also invest up to 20% of its assets in fixed-income securities that are rated below investment grade (commonly known as junk bonds), or if unrated, are determined by the Fund’s subadviser(s) to be of comparable quality.
In addition, the Fund may invest up to 15% of its assets in collateralized debt obligations (CDOs), of which 10% (as a percentage of the Fund’s assets) may be in collateralized loan obligations (CLOs). CDOs are types of asset-backed securities. CLOs are ordinarily issued by a trust or other special purpose entity and are typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans, held by such issuer.
The Fund may invest up to 20% of its assets in securities denominated in foreign currencies. The Fund may also invest in securities acquired in a private placement, such as Rule 144A securities, as well as derivatives, including options, futures, swaps, and forward foreign currency contracts, for risk management purposes or as part of its investment strategies. The Fund may also enter into reverse repurchase agreements and dollar rolls. The Fund may also invest in short-term, high-quality fixed-income securities, cash or cash equivalents, including money market funds.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Total Return Bond Fund declined 9.97% for the fiscal year ending April 30, 2022, underperforming the Fund’s benchmark, Bloomberg U.S. Aggregate Bond Index, which returned -8.51% for the same period.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Total Return Bond Fund
On an absolute basis, rising Treasury yields proved to be a headwind, especially during the first three months of 2022. Rising and already elevated inflation led to a swift pivot from the Federal Reserve as they looked to reduce accommodative policy and begin interest rate increases. This reversal in policy, coinciding with the highest level of inflation last seen during the 1980s, led to a sharp increase in Treasury yields. This abrupt increase in Treasury yields alongside the prospects of tighter monetary policy fed into other areas of the fixed income market, such as corporate debt, emerging markets, and securitized products. Nearly every asset class within fixed income failed to post a positive return during the period.
A contributor to the Fund’s performance versus its benchmark was an overweight to high-yield corporate bonds. Unlike investment-grade corporates, the lower duration of the asset class benefitted performance during the period of sharply rising yields. An out-of-benchmark allocation to U.S. TIPS also boosted relative performance as inflation expectations rose sharply on the back of high and rising inflationary pressures within the global economy. An overweight to duration during the period offset those gains as U.S. Treasuries declined following a sharp rise in interest rates. In lieu of U.S. Treasuries, the Fund has long held an overweight to agency mortgage-backed securities, which underperformed relative to the Fund’s benchmark.
During the period, the Fund primarily used U.S. Treasury futures and options, Eurodollar futures, and interest rate swaps to manage its duration and yield curve exposure. These derivatives did not have a significant impact on performance but helped the portfolio managers more efficiently implement their views and manage risk in the portfolio. The Fund also used credit default swaps on investment grade credit indices (IG CDX) as an efficient, low-cost way of adjusting exposures to this sector.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
BlackRock Financial Management, Inc.
Core-plus total return objective; aims to primarily invest in investment-grade, domestic fixed-income securities with opportunistic, out-of-benchmark allocations and derivatives.
Western Asset Management Company, LLC
Provides core-bond exposure seeking exposure to investment-grade, domestic fixed-income securities.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Total Return Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year2 | Since Inception3 |
| Morningstar Total Return Bond Fund | -9.97% | 2.02% |
| Bloomberg U.S. Aggregate Bond Index1 | -8.51% | 1.95% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Total Return Bond Fund shares versus the Bloomberg U.S. Aggregate Bond Index ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Total Return Bond Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or taxes. The comparison is shown for illustration purposes only.
Morningstar Total Return Bond Fund
This chart does not imply future performance.
1The Bloomberg U.S. Aggregate Bond Index is a broad-based, flagship benchmark that measures the investment grade, U.S.-dollar-denominated, fixed-rate, taxable bond market. Investors should note that indices do not reflect the deduction of fees, expenses or taxes.
2Represents performance from May 1, 2021 to April 30, 2022.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Municipal Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.94 |
| Total Net Assets (millions) | $382 |
| Net Expense Ratio(a) | 0.59% |
| Gross Expense Ratio(a) | 0.67% |
| Portfolio Turnover Rate | 41% |
| Number of Issuers | 756 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 4.2 |
| Five Largest Issuers (%)(c)(d)(e) | |
| Illinois State | 1.2 |
| Maryland State Health & Higher Educational Facilities Authority Revenue | 1.1 |
| Virginia State Small Business Financing Authority Revenue | 1.0 |
| New Jersey State Economic Development Authority Revenue | 0.9 |
| Michigan State Finance Authority Revenue | 0.9 |
| Credit Quality (%)(c)(d)(f) | |
| AAA | 4.9 |
| AA | 28.7 |
| A | 30.3 |
| BBB | 14.0 |
| BB | 2.2 |
| B | 0.2 |
| CCC | 0.3 |
| A1 (Short Term) | 0.5 |
| Not Rated | 5.1 |
| Sector Diversification (%)(c)(d) | |
| General | 14.8 |
| Medical | 13.1 |
| Transportation | 9.7 |
| General Obligation | 8.6 |
| Airport | 7.2 |
| Higher Education | 5.9 |
| Education | 4.7 |
| Development | 4.4 |
| Water | 3.2 |
| School District | 2.8 |
| Nursing Home | 2.5 |
| Power | 2.4 |
| Multifamily Housing | 2.4 |
| Housing | 1.2 |
| Utilities | 1.1 |
| Facilities | 0.7 |
| Bond Banks | 0.4 |
| Tobacco Settlement | 0.3 |
| Student Loan | 0.3 |
| Pollution | 0.3 |
| Single Family Housing | 0.2 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.59% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 0.59%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.59% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar Municipal Bond Fund
(b) Effective duration is a measure of a Fund's interest-rate sensitivity—the longer a Fund's duration, the more sensitive the Fund is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while shorter maturities and higher coupons shorten duration.
(c) Percentages shown are based on Net Assets.
(d) Excludes Investment Companies and Other.
(e) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
(f) Credit quality ratings are based on the conservative average of Moody’s, S&P Global and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S& P Global’s nomenclature, range from A‐1 to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Municipal Bond Fund
Investment Objective
Morningstar Municipal Bond Fund seeks income exempt from federal income taxes as well as capital preservation.
Investment Strategies
In seeking income exempt from federal income taxes consistent with the preservation of capital, the Fund will invest, under normal circumstances, at least 80% of its net assets, plus borrowings for investment purposes, in securities of municipal issuers within the United States and its territories, the income of which is exempt from U.S. taxation. To meet its objective, the Fund may invest in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets.
The Fund intends to invest primarily in investment-grade municipal securities, but may invest up to 35% of assets in high-yield fixed-income securities that are rated below investment grade (commonly known as junk bonds) or, if unrated, are determined by the Fund’s subadviser(s) to be of comparable quality. The Fund may also invest in derivatives, including options, futures, swaps, and inverse floating-rate debt instruments (inverse floaters), for risk management purposes or as part of its investment strategies.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Municipal Bond Fund declined 5.93% for the fiscal year ending April 30, 2022, matching the Fund’s blended benchmark, (60% Bloomberg Municipal Bond Index, 40% Bloomberg Municipal 1-3 Year Bond Index), which lost 5.91% for the same period.
The fiscal year ending April 30, 2022, was characterized by a slew of macro-related uncertainty centered around high inflation, war in Ukraine, and reversing accommodative monetary policy. As a result, fixed income broadly performed poorly, and municipal bonds were not immune. Following the drawdown in March 2020 led by COVID-19, municipals were supported by both strong fundamentals and technicals. State and local municipalities were flush with cash given COVID-related fiscal stimulus and yield-starved investors poured money into the asset class at a record pace. However, worrying inflation and other geopolitical-related uncertainty led to an aversion of risk during the start of 2022. In addition, a precipitous increase in U.S. Treasury yields led a sell-off within bonds as the Federal Reserve took a hawkish stance on fighting decades high inflation. The municipal yield curve responded in tandem as the curve bounced higher from record-low levels leading to negative performance and record-level outflows from the asset class during the first three months of 2022.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Municipal Bond Fund
The Morningstar Municipal Bond Fund performance was mixed in this environment. Out-of-benchmark exposure to below investment-grade municipal bonds outperformed investment grade, and strong security selection by the Fund’s subadvisers benefitted relative performance. The Fund’s sector positioning also boosted performance, led by a preference for revenue bonds within transportation and healthcare. However, the Fund’s duration positioning hurt performance for the year. During the first three months of 2022 interest rates experienced a sharp increase led by a hawkish pivot from the Federal Reserve. Historically, municipals have proved to be less sensitive relative to U.S. Treasuries during interest rate shocks, however, they did not provide much insulation during this sell-off. As a result, the Fund’s overweight to duration detracted from performance on a relative basis for the year.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
T. Rowe Price Associates, Inc.
Core-plus exposure to intermediate and long-term municipal bonds and derivatives, including both investment-grade and below-investment-grade securities.
Allspring Global Investments, LLC (formerly Wells Capital Management, Inc.)
Exposure to intermediate and short-term municipal bonds and derivatives, including investment-grade and below-investment-grade securities.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Municipal Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year2 | Since Inception3 |
| Morningstar Municipal Bond Fund | -5.93% | 1.88% |
| Morningstar Municipal Bond Blended Index1 | -5.91% | 1.63% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Municipal Bond Fund shares versus the Morningstar Municipal Bond Blended Index ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Municipal Bond Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or taxes. The comparison is shown for illustration purposes only.
Morningstar Municipal Bond Fund
This chart does not imply future performance.
1The Morningstar Municipal Bond Blended Index is composed of 60% Bloomberg Municipal Bond Index and 40% Bloomberg Municipal 1-3 Year Bond Index. The Bloomberg Municipal Bond Index is an unmanaged index that is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity of at least one year. Bloomberg Municipal 1-3 Year Bond Index consists of a broad selection of investment grade general obligation and revenue bonds of maturities ranging from one year to three years. Investors should note that indices do not reflect the deduction of fees, expenses or taxes.
2Represents performance from May 1, 2021 to April 30, 2022.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Defensive Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.69 |
| Total Net Assets (millions) | $144 |
| Net Expense Ratio(a) | 0.52% |
| Gross Expense Ratio(a) | 0.68% |
| Portfolio Turnover Rate | 45% |
| Number of Issuers | 111 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 2.1 |
| Non-USD Exposure(c)(d)(e) | 0.0% |
| Five Largest Issuers (%)(c)(d)(f) | |
| Cerberus | 2.9 |
| Golub Capital Partners Funding | 2.3 |
| PFS Financing Corp. | 2.2 |
| Pretium Mortgage Credit Partne | 1.6 |
| Westlake Automobile Receivable | 1.6 |
| Credit Quality (%)(c)(d)(g) | |
| U.S. Agency | 0.7 |
| AAA | 15.3 |
| AA | 2.5 |
| A | 5.0 |
| BBB | 1.3 |
| BB | 2.0 |
| B | 5.0 |
| CCC | 0.1 |
| Not Rated | 15.0 |
| Sector Diversification (%)(c)(d) | |
| Asset Backed Securities | 35.9 |
| Mortgage Securities | 3.9 |
| Financial | 1.7 |
| Consumer, Noncyclical | 1.7 |
| Communications | 1.5 |
| Consumer, Cyclical | 0.8 |
| Technology | 0.7 |
| Industrial | 0.5 |
| Energy | 0.2 |
| Region Diversification (%)(c)(d) | |
| United States | 37.1 |
| Latin America | 9.0 |
| Canada | 0.5 |
| Europe (excluding United Kingdom) | 0.3 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.48% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 0.48%, including as a result of AFFE borne by the Fund. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.55% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar Defensive Bond Fund
be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Effective duration is a measure of a Fund's interest-rate sensitivity—the longer a Fund's duration, the more sensitive the Fund is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while shorter maturities and higher coupons shorten duration.
(c) Percentages shown are based on Net Assets.
(d) Excludes Investment Companies, Common Stocks and Other.
(e) Non-USD currency exposure for the Fund reflects the value of the portfolio’s non-U.S. dollar denominated investments, as well as the impact of currency derivatives.
(f) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
(g) Credit quality ratings are based on the conservative average of Moody’s, S&P Global and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S& P Global’s nomenclature, range from A‐1 to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Defensive Bond Fund
Investment Objective
Morningstar Defensive Bond Fund seeks capital preservation.
Investment Strategies
In seeking capital preservation, the Fund will normally invest at least 80% of its assets in a diversified portfolio of debt securities (commonly referred to as “bonds”) of varying maturity, duration, and quality. Under normal conditions, the Fund intends to pursue a defensive strategy of limiting its interest-rate sensitivity by maintaining a portfolio duration of three years or less. The Fund may also invest in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets.
The Fund invests primarily in short- and intermediate-term investment-grade fixed-income securities. These may include U.S. and non-U.S. investment-grade corporate debt securities, U.S. and non-U.S. government debt securities, and mortgage-backed and asset-backed securities. In most market environments, the Fund will not invest more than 20% of assets in fixed-income securities that are rated below investment grade (commonly known as junk bonds), or if unrated, are determined by the Fund’s subadviser(s) to be of comparable quality.
In addition, the Fund may invest a significant portion of its assets in collateralized debt obligations (CDOs), including collateralized loan obligations (CLOs). CDOs are types of asset-backed securities. CLOs are ordinarily issued by a trust or other special purpose entity and are typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans, held by such issuer.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Defensive Bond Fund returned -2.61% for the fiscal year ending April 30, 2022, outperforming the Fund’s benchmark (Bloomberg U.S. Aggregate 1-3 Year Index), which returned -3.53% for the same period.
The fixed income market was quiet in the first few months of the fiscal year through the end of September 2021, when the market started to see more persistent inflationary pressures and less dovish central banks. This led to rising yields, with the biggest increases observed on the short-end and in the belly of the Treasury curve. The 2-Year U.S. Treasury yield rose to 2.70% as of the end of April 2022 from 0.28% at the end of September 2021. Credit spreads for investment grade corporate bonds remained tight until the start of 2022 and widened sharply through mid-March amid geopolitical conflicts between Russia and Ukraine. With geopolitical worries adding to concern about already elevated price pressure, five-year inflation expectations for U.S. Treasury Inflation-Protected securities climbed to 3.59% in late March, the highest level on record.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Defensive Bond Fund
Under this backdrop, the Fund’s allocation to longer duration instruments, including both corporate and Treasury bonds, detracted the most from performance relative to its benchmark, followed by short-term Treasury and corporate bonds. Mortgage-backed securities weighed on performance due to their extended duration amid rising rates. Fortunately, gains from other holdings in the Fund added enough value to push the relative performance back to positive territory for the past fiscal year. Fund subadviser First Pacific Advisors was able to deliver a positive return during this period given their shorter duration profile, allocations to high quality asset back securities, and limited exposure to corporate credit. Our allocation to short-term TIPS was another bright spot and added positively to both absolute and relative performance. Our cash allocation helped relative performance as well.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadviser:
First Pacific Advisors, LP
Diversified portfolio of short-duration, fixed-income securities designed to anchor a portfolio of defensive assets.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Defensive Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year3 | Since Inception4 |
| Morningstar Defensive Bond Fund | -2.61% | 1.74% |
| Bloomberg U.S. Aggregate Bond Index1 | -8.51% | 1.95% |
| Bloomberg U.S. Aggregate 1-3 Year Index2 | -3.53% | 1.30% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Defensive Bond Fund shares versus the Bloomberg U.S. Aggregate Bond Index and the Bloomberg U.S. Aggregate 1-3 Year Index ("the Indicies") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Defensive Bond Fund is a professionally managed portfolio while the Indices are not available for direct investment, are unmanaged and do not include fees, expenses or taxes. The comparison is shown for illustration purposes only.
Morningstar Defensive Bond Fund
This chart does not imply future performance.
1The Bloomberg U.S. Aggregate Bond Index is a broad-based, flagship benchmark that measures the investment grade, U.S.-dollar-denominated, fixed-rate, taxable bond market. Investors should note that indices do not reflect the deduction of fees, expenses or taxes. The Bloomberg U.S. Aggregate Bond Index has been added in order to provide shareholders with a broader market comparison.
2The Bloomberg U.S. Aggregate 1-3 Year Index consists of publicly issued, investment-grade corporate, U.S. Treasury and government agency securities with remaining maturities of one to three years, and is the index against which the Fund is primarily managed. Investors should note that indices do not reflect the deduction of fees, expenses or taxes.
3Represents performance from May 1, 2021 to April 30, 2022.
4Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Multisector Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.00 |
| Total Net Assets (millions) | $172 |
| Net Expense Ratio(a) | 0.80% |
| Gross Expense Ratio(a) | 0.92% |
| Portfolio Turnover Rate | 97% |
| Number of Issuers | 381 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 5.2 |
| Non-USD Exposure(c)(d)(e) | 20.5% |
| Five Largest Issuers (%)(c)(d)(f) | |
| Republic of South Africa | 2.7 |
| Government of Indonesia | 2.2 |
| Mexican Bonos Desarollo | 2.1 |
| Thailand Government Bond | 1.8 |
| Nota Do Tesouro Nacional | 1.6 |
| Credit Quality (%)(c)(d)(g) | |
| AA | 2.8 |
| A | 5.0 |
| BBB | 11.0 |
| BB | 24.6 |
| B | 15.5 |
| CCC | 4.0 |
| C | 0.2 |
| Not Rated | 6.6 |
| Sector Diversification (%)(c)(d) | |
| Government | 30.6 |
| Energy | 9.1 |
| Communications | 6.7 |
| Consumer, Cyclical | 6.2 |
| Consumer, Noncyclical | 4.4 |
| Financial | 4.3 |
| Basic Materials | 2.9 |
| Industrial | 2.0 |
| Utilities | 1.7 |
| Mortgage Securities | 0.8 |
| Asset Backed Securities | 0.5 |
| Technology | 0.5 |
| Region Diversification (%)(c)(d) | |
| United States | 24.1 |
| Latin America | 13.9 |
| Pacific (excluding Japan) | 11.1 |
| Middle East | 7.0 |
| Africa | 6.1 |
| Europe (excluding United Kingdom) | 5.6 |
| Canada | 1.1 |
| United Kingdom | 0.5 |
| Japan | 0.3 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar Multisector Bond Fund
fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.80% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 0.80%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.80% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Effective duration is a measure of a Fund's interest-rate sensitivity—the longer a Fund's duration, the more sensitive the Fund is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while shorter maturities and higher coupons shorten duration.
(c) Percentages shown are based on Net Assets.
(d) Excludes Common Stocks, Convertible Preferred Stocks and Other.
(e) Non-USD currency exposure for the Fund reflects the value of the portfolio’s non-U.S. dollar denominated investments, as well as the impact of currency derivatives.
(f) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
(g) Credit quality ratings are based on the conservative average of Moody’s, S&P Global and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S& P Global’s nomenclature, range from A‐1 to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Multisector Bond Fund
Investment Objective
Morningstar Multisector Bond Fund seeks total return through a combination of current income and capital appreciation.
Investment Strategies
In seeking total return through a combination of current income and capital appreciation, the Fund will normally invest at least 80% of its assets in debt securities (commonly referred to as “bonds”) of varying maturity, duration, and quality across various sectors of the fixed-income market. These may include U.S. and non- U.S. corporate debt securities, U.S. and non-U.S. government debt securities, emerging-market debt securities, mortgage-backed and asset-backed securities, municipal securities, and floating-rate notes.
The Fund may invest without limit in fixed-income securities that are rated below investment grade (commonly known as junk bonds), or if unrated, are determined by the Fund’s subadviser(s) to be of comparable quality. The Fund may invest without limit in securities denominated in foreign currencies and in U.S. dollar-denominated securities of foreign issuers.
The Fund may invest in securities acquired in a private placement, such as Rule 144A securities, as well as derivatives, including options, futures, swaps, forward foreign currency contracts and currency options, for risk management purposes or as part of its investment strategies. Due to the opportunistic nature of its strategy, the Fund may also invest up to 20% of its assets in equity securities, including common stocks and convertible securities.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Multisector Bond Fund returned -10.95% for the fiscal year ending April 30, 2022, underperforming the Fund’s blended benchmark (50% Bloomberg U.S. Corporate High Yield Index, 25% J.P. Morgan EMBI Global TR Index, 25% JPM GBI-EM Global Diversified TR index), which returned -9.91% for the same period.
The fiscal year was a period of weak performance for the areas of the fixed-income market that this Fund invests, including U.S. high yield bonds and emerging-market debt. After a period of very strong returns as global markets recovered from the COVID-19 related sell-off in early 2020, the asset classes that this Fund invests in entered the fiscal year unattractively priced and were negatively impacted by both the pivot by the Federal Reserve to a more hawkish policy stance as well as the risk-off market environment that characterized markets towards the end of the fiscal year. Emerging-market debt was particularly impacted by the Russian invasion of Ukraine.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Multisector Bond Fund
While the Fund was positioned cautiously relative to both interest rate sensitivity and exposure to U.S corporate high yield bonds, the meaningful exposure to emerging markets harmed performance in both relative and absolute terms. Subadviser Franklin Advisers was a relative tailwind as the global bond strategy outpaced the Fund’s benchmark given its cautious duration positioning. However, the performance of Loomis Sayles was a drag on returns as they trailed their corporate high yield benchmark. While the Fund’s use of derivatives during the fiscal year ending April 30, 2022, was not insignificant, derivatives did not materially impact the Fund’s overall performance for the period.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
Franklin Advisers, Inc. (terminated as subadviser effective May 1, 2022)
Benchmark-agnostic investment strategy with opportunistic exposure to interest rates, credit and currencies across both developed and emerging bond markets.
Loomis, Sayles & Company, L.P.
High-yield bond exposure with opportunistic bond allocations to bank loans, convertible bonds, investment-grade credit, agency and non-agency mortgage-backed securities.
TCW Investment Management Company LLC
Diversified, emerging-markets bond exposure across hard-currency, local-currency, and corporate emerging-markets debt.
Voya Investment Management Company, LLC (became a subadviser effective May 2, 2022)
U.S. Investment grade corporate bond strategy with opportunistic exposure to high-yield credits.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Multisector Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year2 | Since Inception3 |
| Morningstar Multisector Bond Fund | -10.95% | 0.83% |
| Morningstar Multisector Bond Blended Index1 | -9.91% | 1.94% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Multisector Bond Fund shares versus the Morningstar Multisector Bond Blended Index ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Multisector Bond Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or taxes. The comparison is shown for illustration purposes only.
Morningstar Multisector Bond Fund
This chart does not imply future performance.
1The Morningstar Multisector Bond Blended Index is composed of 50% Bloomberg U.S. Corporate High Yield Index, 25% J.P. Morgan EMBI Global TR Index, and 25% J.P. Morgan Government Bond Index-Emerging Markets Global Diversified. The Bloomberg U.S. Corporate High Yield Index represents the universe of fixed rate, non-investment grade securities in which the Fund invests. JPMorgan Emerging Markets Bond Index Global: The EMBI Global tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds. JPMorgan Government Bond Index-Emerging Markets Global Diversified Index: The GBI-EM Global Diversified is a global local Emerging Markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. Investors should note that indices do not reflect the deduction of fees, expenses or taxes.
2Represents performance from May 1, 2021 to April 30, 2022.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Global Opportunistic Equity Fund
| General Information | |
| Net Asset Value Per Share | $9.57 |
| Total Net Assets (millions) | $200 |
| Net Expense Ratio(a) | 0.85% |
| Gross Expense Ratio(a) | 0.85% |
| Portfolio Turnover Rate | 96% |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Equity Portfolio (50.4%) | |
| Number of Common Stocks | 246 |
| Five Largest Sectors (%)(b)(c) | |
| Consumer, Noncyclical | 12.4 |
| Communications | 9.7 |
| Financial | 7.6 |
| Consumer, Cyclical | 7.3 |
| Energy | 5.0 |
| Ten Largest Equities (%)(b)(c)(d) | |
| Shell PLC | 1.4 |
| Alibaba Group Holding Ltd. | 1.3 |
| H&R Block, Inc. | 1.3 |
| Tencent Holdings Ltd. | 1.3 |
| Tapestry, Inc. | 1.2 |
| International Game Technology PLC | 1.2 |
| Omnicom Group, Inc. | 1.2 |
| CVS Health Corp. | 1.2 |
| Fresenius Medical Care A.G. & Co. KGaA | 1.0 |
| Nielsen Holdings PLC | 1.0 |
| Sector Diversification (%)(b)(c) | |
| Consumer, Noncyclical | 12.4 |
| Communications | 9.7 |
| Financial | 7.6 |
| Consumer, Cyclical | 7.3 |
| Energy | 5.0 |
| Industrial | 3.7 |
| Technology | 2.5 |
| Basic Materials | 1.1 |
| Utilities | 1.1 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated April 29, 2022, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 1.00% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 1.00%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 0.93% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Percentages shown are based on Net Assets.
(c) Excludes Investment Companies and Other.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited) (continued)
Morningstar Global Opportunistic Equity Fund
(d) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular security and is not indicative of current or future trading activity.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Global Opportunistic Equity Fund
Investment Objective
Morningstar Global Opportunistic Equity Fund seeks long-term capital appreciation over a full market cycle.
Investment Strategies
In seeking long-term capital appreciation over a full market cycle, the Fund has significant flexibility and invests predominantly in equities across asset classes and geographies according to the portfolio management team’s assessment of their valuations and fundamental characteristics. The Fund will normally invest at least 80% of its assets in equity securities. The Fund invests in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets.
The Fund invests in equity securities, which may include common stocks and real estate investment trusts (REITs). The Fund may invest in companies of any size from any country, including emerging markets. Under normal market conditions, the Fund will invest significantly (e.g., at least 40% of its assets, unless market conditions are not deemed favorable, in which case the Fund would invest at least 30% of its assets) in companies organized or located in multiple countries outside the United States or doing a substantial amount of business in multiple countries outside the United States.
To meet its objective, the Fund may also invest up to 20% of its assets in fixed-income securities of varying maturity, duration, and quality. These may include U.S. and non-U.S. corporate debt securities, U.S. government debt securities, including Treasury Inflation Protected Bond Securities and zero-coupon securities, non-U.S. government debt securities, emerging-market debt securities, and mortgage-backed and asset-backed securities. The Fund may invest up to 20% of its assets in fixed-income securities that are rated below investment grade (commonly known as junk bonds) or, if unrated, are determined by the Fund’s subadviser(s) to be of comparable quality.
The Fund may also invest in derivatives, including options, futures, swaps, and forward foreign currency contracts, for risk management purposes or as part of its investment strategies.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open- and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Global Opportunistic Equity Fund (formerly Morningstar Unconstrained Allocation Fund) lost 2.77% for the fiscal year ending April 30, 2022, outperforming the Fund’s blended benchmark (50% Bloomberg Multiverse TR Index, 50% Morningstar Global Markets NR Index), which returned -9.28% for the same period.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Global Opportunistic Equity Fund
With historically low levels of interest rates and credit spreads across the global fixed income markets for much of the period, the Fund maintained a preference for pockets of the global equity market, though it began to favor more defensive sectors compared to the positioning during the market recovery coming out of the COVID-19 driven sell-off when the Fund was more heavily weighted towards economically sensitive sectors. This positioning, combined with an underweight positioning to U.S. tech companies, were a boost to relative returns. Strong performance by global equity subadviser Lazard Asset Management on both absolute and benchmark relative terms was a further tailwind.
Mitigating some of the gains in the Fund were positions in long-term Treasuries which were held to act as a hedge to some of the portfolio’s more cyclical exposures but lost value as the Federal Reserve pivoted towards a more hawkish policy stance. Equity positions in China, Japan, and Germany were also drags on relative and absolute returns.
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
Brandywine Global Investment Management, LLC (terminated as subadviser effective May 1, 2022)
Global fixed income strategy designed to serve as an anchor position.
Lazard Asset Management LLC
Anchor global equity exposure focused on quality, attractively valued stocks, which have appeal throughout a market cycle.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Global Opportunistic Equity Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year3 | Since Inception4 |
| Morningstar Global Opportunistic Equity Fund | -2.77% | 7.11% |
| Morningstar Unconstrained Allocation Blended Index1 | -9.28% | 5.45% |
| Morningstar Global Markets NR2 | -6.22% | 10.12% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Global Opportunistic Equity Fund shares versus the Morningstar Unconstrained Allocation Blended Index ("the Index") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Global Opportunistic Equity Fund is a professionally managed portfolio while the Index is not available for direct investment, is unmanaged and does not include fees, expenses or certain taxes. The comparison is shown for illustration purposes only.
Morningstar Global Opportunistic Equity Fund
This chart does not imply future performance.
1The Morningstar Unconstrained Allocation Blended Index is composed of 50% Morningstar Global Markets NR Index and 50% Bloomberg Multiverse Total Return Index. The Morningstar Global Markets NR Index captures the performance of the stocks located in the developed and emerging countries across the world. The Bloomberg Multiverse Total Return Index provides a broad-based measure of the global fixed-income bond market. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to those who do not benefit from double taxation treaties. Investors should note that such indicies do not reflect the deduction of fees, expenses or other taxes.
2Effective May 2, 2022, the Fund elected to change its benchmark index from the Morningstar Unconstrained Allocation Blended Index to the Morningstar Global Markets NR Index. The Fund believes the composition of the Morningstar Global Markets NR Index more accurately reflects the Fund’s current investment strategy and portfolio characteristics.
3Represents performance from May 1, 2021 to April 30, 2022.
4Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Fund Information (unaudited)
Morningstar Alternatives Fund
| General Information | |
| Net Asset Value Per Share | $10.12 |
| Total Net Assets (millions) | $368 |
| Net Expense Ratio(a) | 1.34% |
| Gross Expense Ratio(a) | 1.76% |
| Portfolio Turnover Rate | 433% |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Allocation Strategy Type (%)(b) | |
| Convertible Arbitrage | 20.3 |
| Merger Arbitrage | 26.1 |
| Multi-Strategy | 47.4 |
| Short-term investments and ETFs | 6.2 |
| Region Diversification (%)(c)(d) | |
| United States | 77.2 |
| Europe (excluding United Kingdom) | 2.0 |
| Canada | 1.6 |
| United Kingdom | 0.9 |
| Japan | 0.5 |
| Pacific (excluding Japan) | 0.3 |
| Africa | 0.3 |
| Latin America | 0.2 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2021, as amended and restated May 2, 2022. Net expense ratio reflects fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses whereas the gross expense ratio does not. Morningstar Investment Management LLC (“Morningstar” or “adviser” or “we”) has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses (AFFE), short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 1.29% (the Base Expense Limitation Agreement). It is important to note that as a result of the exclusion of the above-listed expenses from the cap, the Fund’s Total Annual Fund Operating Expenses may in certain circumstances be higher than 1.29%. Notwithstanding the foregoing, it is the adviser’s intent to partially limit AFFE such that when AFFE is included in the expense ratio, the Fund’s Total Annual Fund Operating Expenses (excluding the above-listed expenses other than AFFE) do not exceed the amount set forth in the Fund’s original prospectus dated July 11, 2018, as revised August 15, 2018. Accordingly, in addition to the Base Expense Limitation Agreement, Morningstar has contractually agreed, through at least August 31, 2022, to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses (to the extent permitted by the Internal Revenue Code of 1986, as amended) to ensure that the Fund’s Total Annual Fund Operating Expenses (excluding taxes, interest, brokerage commissions, trading costs, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed 1.20% (the Supplemental Expense Limitation Agreement). Prior to August 31, 2022, the Base Expense Limitation Agreement and Supplemental Expense Limitation Agreement may be terminated only upon mutual agreement between the Trust (which would require the approval of the Trust’s board of trustees) and the adviser, or automatically upon the termination of the Investment Advisory Agreement between the Trust and the adviser.
(b) Percentages shown are based on Total Investments excluding derivatives.
(c) Percentages shown are based on Net Assets.
(d) Excludes Investment Companies and Other.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited)
Morningstar Alternatives Fund
Investment Objective
Morningstar Alternatives Fund seeks long-term capital appreciation and low sensitivity to traditional U.S. asset classes.
Investment Strategies
In seeking long-term capital appreciation and low sensitivity to traditional U.S. asset classes, the Fund allocates assets to strategies that provide alternative sources of return including (i) long/short macro strategies; (ii) long/short alpha strategies; (iii) merger arbitrage strategy; and (iv) convertible arbitrage strategy. The Fund will normally invest in both U.S. and non-U.S. securities, including securities of companies located in emerging markets. The Fund may invest in non-U.S. dollar denominated investments, including investments denominated in European and Asian currencies and in other non-U.S. and emerging market currencies. The Fund may also seek returns through core allocation across fixed income and equity markets.
In particular, the Fund has the latitude to invest in the following alternative strategies:
Long-Short Equity—Combines long equity positions with short equity positions (selling borrowed securities). Since the strategy is both long and short, total net exposure is typically less than 100%.
Convertible Arbitrage—Includes the purchase of convertible securities and the sale of the underlying common stock. These securities tend to be convertible bonds or convertible preferred stocks that may be converted into the stock of the same company.
Merger Arbitrage—Seeks to profit from the successful completion of corporate re-organizations. The process typically involves purchasing shares of an announced acquisition target company at a discount to its expected value upon completion of the acquisition. Hedging strategies may be used to reduce market exposure and volatility.
Credit Arbitrage—Seeks to exploit the mispricing of different classes of securities that are usually of the same company, and may include investments in investment-grade and/or non-investment-grade corporate debt (otherwise known as junk bonds), credit derivatives, loans, equities, credit index securities, and private debt.
Global Macro—Establishes long (number of contracts bought exceeds number sold) with a short (number of contracts sold exceeds number bought) exposures around the globe to take advantage of what the subadvisers believe to be attractive opportunities. This strategy may include investments in fixed-income and equity securities and a wide variety of derivative instruments. Such investments will likely have significant exposure to foreign investments and may be concentrated in a geographic region or country.
Geographic Concentration Risk—To the extent that the Fund invests a significant portion of its assets in a particular country, region or continent, economic, political, social and environmental conditions in such country, region or continent will have a greater effect on the Fund’s performance than they would in a more geographically diversified fund.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
Hedged Equity—Seeks to limit investment loss by creating a transaction that offsets an existing position in a contract that provides the right to buy or sell shares of a security at a specific price for a certain time. Specifically, this strategy attempts to reduce the systematic risk created by factors such as exposures to sectors, market-cap ranges, investment styles, currencies, and/or countries; the strategy strives to achieve this by matching short positions within each area against long positions. This strategy may be managed as beta-neutral, dollar-neutral, or sector-neutral in order to achieve low beta exposures to certain market indexes.
Market Neutral—Attempts to significantly reduce the systematic risk created by factors such as exposures to sectors, market-cap ranges, investment styles, currencies, and/or countries. This strategy seeks to achieve this by matching short positions within each area against long positions, and the strategy may be managed as beta-neutral, dollar-neutral, or sector-neutral. In attempting to significantly reduce systematic risk, issue selection may be emphasized, with profits dependent on the ability to sell short and buy long the chosen securities.
Nontraditional Bond—Pursues strategies that diverge in one or more ways from conventional practice in the broader bond-fund universe. In pursuing this strategy, the Fund may seek to avoid losses and produce returns uncorrelated with the overall bond market and may employ a variety of methods to achieve those aims, including investing tactically across a wide swath of individual sectors, including high-yield and foreign debt.
Debt Securities—Investment in debt securities may include U.S. Government and agency securities, foreign government and supranational debt securities, corporate bonds, mortgage-related securities and asset-backed securities, mortgage to-be-announced (“TBA”) securities, emerging market debt securities, preferred securities, structured products, credit-linked notes, mezzanine securities, senior secured floating rate and fixed rate loans or debt, second lien or other subordinated or unsecured floating rate and fixed rate loans or debt, convertible debt securities, and derivatives with similar economic characteristics. These debt securities may be of any credit quality, which may include investment grade securities and high yield securities, including unrated securities (commonly called “junk bonds”). The Fund may invest in fixed, variable and floating rate instruments, including participations and assignments, of any duration or maturity.
Equity Securities—Investment in equity securities may include common stock, preferred stock, securities convertible into common stock, including contingent convertible bonds which are securities convertible into equity if a pre-specified trigger event occurs, and non-convertible preferred stock.
Derivatives—Exposure to equity securities may be done through derivatives which at times may be significant. Types of derivatives include, but are not limited to, swaps, (including total return some of which may be referred to as contracts for difference), credit default, index and interest rate swaps; options; forward contracts; futures; options on futures and swaps; and foreign exchange transactions, for hedging purposes, as well as to enhance returns. Use of derivatives may be to maintain a portion of its portfolio long and short positions. Investments in indexed and inverse securities may also be made to provide a potential return based on a particular index of value or interest rates. This strategy may also include investments in repurchase agreements, reverse repurchase agreements and dollar rolls.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
Short Sales—Short sales may be used for hedging purposes or to enhance total return. Short sales “against the box” may also be used. In this type of short sale, at the time of the sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost.
Currency—The Fund may invest in non-U.S. dollar denominated investments, including investments denominated in European and Asian currencies and in other non-U.S. and emerging market currencies. As a result, the Fund may have significant exposure to foreign currencies and investments in non-U.S. dollar-based assets may be made on a currency hedged or unhedged basis.To meet its objective, the Fund may invest in investment companies such as mutual funds and ETFs, which could represent a significant percentage of assets. The Fund may also invest in derivatives, including options, futures, swaps, and forward foreign currency contracts, for risk management purposes or as part of its investment strategies.
Multimanager Approach—The Fund uses a multimanager approach, meaning the adviser may allocate assets to one or more subadvisers, in addition to open and closed-end investment companies, ETFs, and individual securities (collectively “Allocation Decisions”). Each subadviser acts independently from the others and uses its own investment style and process to select securities, within the constraints of the Fund’s investment objective, strategies, and restrictions. Morningstar is responsible for selecting the investment strategies and Allocation Decisions, with the goal of maximizing return with a prudent level of risk for the strategy. Subject to the oversight of the board of trustees, Morningstar may change subadvisers and sell holdings at any time.
Investment Commentary
The Morningstar Alternatives Fund returned -0.78% for the fiscal year ending April 30, 2022, underperforming the Fund’s benchmark (the Morningstar U.S. Cash T-Bill TR USD Index), which returned 0.07% for the same period.
This period was characterized by negative returns across the majority of traditional equity and fixed income asset classes as inflation, central bank policy shifts, and geopolitical events brought meaningful volatility. While the Fund was able to outperform broad traditional market indices, it could not avoid the turmoil altogether.
Subadviser performance was muted over the 12 month period ended April 30, 2022. Blackrock Financial management, which manages a systematic multi-strategy sleeve, generated modestly positive returns which was a relative tailwind. However, SSI Investment Management, which manages a convertible arbitrage sleeve, and Water Island Capital, which manages a merger-arbitrage sleeve for the Fund, were flat for the period. Water Island Capital’s performance was impacted by uncertainty around M&A activities, while the SSI Investment Management strategy was hampered by its sensitivity to interest rates and credit spreads.
Derivatives had a modest effect on Fund performance. Within the Fund’s merger-arbitrage sleeve, derivatives used to implement portfolio-level and deal-level hedges contributed slightly to performance. Within the Fund’s convertible-arbitrage sleeve, option premia generated through call writing contributed positively to performance.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
BlackRock Financial Management, Inc.
Seeks to deliver equity upside participation, balanced returns through defensive alpha and diversified fixed income exposure. The systematic, credit-oriented approach can offer downside protection.
SSI Investment Management LLC
Short-term cash exposure that pursues minimal correlation to broad markets and bond-like volatility through an unlevered convertible arbitrage strategy.
Water Island Capital, LLC
Seeks to provide cash-plus returns while remaining broadly uncorrelated to equity markets.
Morningstar Funds Trust April 30, 2022
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
Performance at a glance
| Average Total Returns as of 04/30/22 | 1 year3 | Since Inception4 |
| Morningstar Alternatives Fund | -0.78% | 3.18% |
| Bloomberg U.S. Aggregate Bond Index1 | -8.51% | 1.95% |
| Morningstar U.S. Cash T-Bill TR USD2 | 0.07% | 0.91% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Alternatives Fund shares versus the Bloomberg U.S. Aggregate Bond Index and the Morningstar U.S. Cash T-Bill TR USD ("the Indicies") from its inception (November 2, 2018) to April 30, 2022 (the Fund's fiscal year end). Shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that Morningstar Alternatives Fund is a professionally managed portfolio while the Indices are not available for direct investment, are unmanaged and do not include fees, expenses or taxes. The comparison is shown for illustration purposes only.
Morningstar Alternatives Fund
This chart does not imply future performance.
1The Bloomberg U.S. Aggregate Bond Index is a broad-based, flagship benchmark that measures the investment grade, U.S.-dollar-denominated, fixed-rate, taxable bond market. Investors should note that indices do not reflect the deduction of fees, expenses or taxes. The Bloomberg U.S. Aggregate Bond Index has been added in order to provide shareholders with a broader market comparison.
2The Morningstar U.S. Cash T-Bill TR USD index measures the performance of a 13-week U.S. Treasury Bill, and is the index against which the Fund is primarily managed. Investors should note that indices do not reflect the deduction of fees, expenses or taxes. In 2020, the Fund replaced FTSE, its prior U.S. Treasury bill index provider, with Morningstar in order to reduce licensing fees borne by the Fund.
3Represents performance from May 1, 2021 to April 30, 2022.
4Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
Past performance does not predict future performance, and the performance information provided, does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Shares held through advisory programs are subject to a program fee, which, if included, would have reduced performance. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For performance current to the most recent month-end, please go to https://connect.rightprospectus.com/Morningstar.
Morningstar Funds Trust April 30, 2022
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Common Stocks – 85.2% |
| Aerospace/Defense – 2.2% |
| Boeing (The) Co.* | | 13,905 | $ 2,069,620 |
| General Dynamics Corp | | 8,137 | 1,924,644 |
| Lockheed Martin Corp. | | 18,448 | 7,971,750 |
| Moog, Inc., Class A | | 19,370 | 1,547,082 |
| Northrop Grumman Corp. | | 16,485 | 7,243,509 |
| Raytheon Technologies Corp. | | 121,289 | 11,511,539 |
| | | | 32,268,144 |
| Agriculture – 0.2% |
| Archer-Daniels-Midland Co. | | 37,220 | 3,333,423 |
| Airlines – 0.3% |
| Alaska Air Group, Inc.* | | 44,344 | 2,411,870 |
| Allegiant Travel Co.* | | 15,194 | 2,357,957 |
| | | | 4,769,827 |
| Apparel – 1.0% |
| Hanesbrands, Inc. | | 189,276 | 2,509,800 |
| NIKE, Inc., Class B | | 58,900 | 7,344,830 |
| Ralph Lauren Corp. | | 25,307 | 2,640,532 |
| VF Corp. | | 36,380 | 1,891,760 |
| | | | 14,386,922 |
| Auto Manufacturers – 0.6% |
| General Motors Co.* | | 202,069 | 7,660,436 |
| PACCAR, Inc. | | 17,711 | 1,470,898 |
| | | | 9,131,334 |
| Auto Parts & Equipment – 0.7% |
| Aptiv PLC* | | 46,071 | 4,901,954 |
| BorgWarner, Inc. | | 37,347 | 1,375,490 |
| Holley, Inc.(a)* | | 180,522 | 1,902,702 |
| Methode Electronics, Inc. | | 19,931 | 889,122 |
| XPEL, Inc.* | | 22,122 | 957,219 |
| | | | 10,026,487 |
| Banks – 6.0% |
| Bank OZK | | 141,655 | 5,442,385 |
| BankUnited, Inc. | | 59,576 | 2,236,483 |
| BOK Financial Corp. | | 21,107 | 1,750,404 |
| Citigroup, Inc. | | 67,213 | 3,240,339 |
| City Holding Co. | | 6,645 | 514,190 |
| Columbia Banking System, Inc. | | 56,908 | 1,597,977 |
| Eagle Bancorp, Inc. | | 18,080 | 910,328 |
| First Republic Bank | | 24,486 | 3,653,801 |
| Goldman Sachs Group (The), Inc. | | 41,520 | 12,683,945 |
| JPMorgan Chase & Co. | | 83,945 | 10,019,675 |
| Morgan Stanley | | 63,267 | 5,098,688 |
| | | Number
of Shares | Value |
| Banks (Continued) |
| PNC Financial Services Group (The), Inc. | | 20,152 | $ 3,347,247 |
| Renasant Corp. | | 51,613 | 1,537,551 |
| Sandy Spring Bancorp, Inc. | | 41,166 | 1,616,589 |
| Seacoast Banking Corp. of Florida | | 50,727 | 1,648,627 |
| Simmons First National Corp., Class A | | 68,274 | 1,629,700 |
| SVB Financial Group* | | 9,840 | 4,798,378 |
| Triumph Bancorp, Inc.* | | 21,249 | 1,475,531 |
| Truist Financial Corp. | | 181,621 | 8,781,375 |
| Trustmark Corp. | | 21,725 | 605,693 |
| U.S. Bancorp | | 32,686 | 1,587,232 |
| Veritex Holdings, Inc. | | 50,697 | 1,665,396 |
| Webster Financial Corp. | | 129,960 | 6,496,700 |
| Wells Fargo & Co. | | 87,080 | 3,799,300 |
| Western Alliance Bancorp | | 51,698 | 3,934,735 |
| | | | 90,072,269 |
| Beverages – 1.5% |
| Diageo PLC (United Kingdom) | | 92,285 | 4,603,992 |
| Duckhorn Portfolio (The), Inc.* | | 113,356 | 2,201,373 |
| Monster Beverage Corp.* | | 102,592 | 8,790,082 |
| PepsiCo, Inc. | | 20,498 | 3,519,712 |
| Primo Water Corp.(a) | | 270,287 | 3,957,002 |
| | | | 23,072,161 |
| Biotechnology – 0.7% |
| Bio-Rad Laboratories, Inc., Class A* | | 18,632 | 9,540,702 |
| Intra-Cellular Therapies, Inc.* | | 26,269 | 1,329,474 |
| | | | 10,870,176 |
| Building Materials – 0.9% |
| Johnson Controls International PLC | | 61,499 | 3,681,945 |
| Masco Corp. | | 38,964 | 2,053,013 |
| Masonite International Corp.* | | 20,558 | 1,593,656 |
| Owens Corning | | 28,472 | 2,588,959 |
| Trex Co., Inc.* | | 34,737 | 2,021,346 |
| UFP Industries, Inc. | | 11,317 | 875,597 |
| | | | 12,814,516 |
| Chemicals – 2.2% |
| Ashland Global Holdings, Inc. | | 35,809 | 3,758,871 |
| Balchem Corp. | | 16,400 | 2,020,480 |
| DuPont de Nemours, Inc. | | 161,382 | 10,639,915 |
| Ecovyst, Inc. | | 77,581 | 780,465 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Chemicals (Continued) |
| Innospec, Inc. | | 10,599 | $ 1,010,191 |
| International Flavors & Fragrances, Inc. | | 9,255 | 1,122,632 |
| PPG Industries, Inc. | | 32,825 | 4,201,272 |
| Sherwin-Williams (The) Co. | | 21,658 | 5,955,083 |
| Stepan Co. | | 15,815 | 1,614,869 |
| Valvoline, Inc. | | 38,399 | 1,160,802 |
| | | | 32,264,580 |
| Commercial Services – 2.1% |
| Equifax, Inc. | | 18,187 | 3,701,418 |
| Euronet Worldwide, Inc.* | | 14,707 | 1,789,107 |
| HealthEquity, Inc.* | | 42,631 | 2,656,764 |
| Mister Car Wash, Inc.(a)* | | 75,908 | 1,093,075 |
| Monro, Inc. | | 35,758 | 1,635,213 |
| Moody's Corp. | | 5,047 | 1,597,275 |
| Paylocity Holding Corp.* | | 6,078 | 1,152,571 |
| PayPal Holdings, Inc.* | | 57,400 | 5,047,182 |
| PROG Holdings, Inc.* | | 42,128 | 1,115,128 |
| Repay Holdings Corp.* | | 112,109 | 1,500,019 |
| S&P Global, Inc. | | 21,128 | 7,954,692 |
| ZipRecruiter, Inc., Class A* | | 95,310 | 2,145,428 |
| | | | 31,387,872 |
| Computers – 3.3% |
| Accenture PLC, Class A | | 22,099 | 6,637,656 |
| Apple, Inc. | | 196,043 | 30,906,179 |
| Check Point Software Technologies Ltd. (Israel)* | | 38,356 | 4,843,979 |
| Cognizant Technology Solutions Corp., Class A | | 29,000 | 2,346,100 |
| CyberArk Software Ltd.* | | 16,702 | 2,624,552 |
| Globant S.A.* | | 6,734 | 1,454,477 |
| | | | 48,812,943 |
| Cosmetics/Personal Care – 0.8% |
| Colgate-Palmolive Co. | | 26,868 | 2,070,179 |
| Unilever PLC ADR (United Kingdom) | | 207,018 | 9,576,653 |
| | | | 11,646,832 |
| Distribution/Wholesale – 1.1% |
| Pool Corp. | | 4,885 | 1,979,500 |
| W.W. Grainger, Inc. | | 17,099 | 8,550,013 |
| WESCO International, Inc.* | | 46,219 | 5,696,954 |
| | | | 16,226,467 |
| Diversified Financial Services – 3.2% |
| American Express Co. | | 29,170 | 5,096,291 |
| Apollo Global Management, Inc. | | 42,616 | 2,120,572 |
| BlackRock, Inc. | | 5,919 | 3,697,481 |
| | | Number
of Shares | Value |
| Diversified Financial Services (Continued) |
| Cohen & Steers, Inc. | | 23,869 | $ 1,854,383 |
| Discover Financial Services | | 9,048 | 1,017,538 |
| Focus Financial Partners, Inc. Class A* | | 37,132 | 1,464,857 |
| Hamilton Lane, Inc., Class A | | 37,720 | 2,586,838 |
| Moelis & Co., Class A | | 34,827 | 1,541,443 |
| Mr. Cooper Group, Inc.* | | 53,337 | 2,398,565 |
| Nasdaq, Inc. | | 27,799 | 4,374,729 |
| Perella Weinberg Partners | | 45,071 | 347,497 |
| Piper Sandler Cos. | | 14,140 | 1,625,817 |
| Visa, Inc., Class A(a) | | 91,848 | 19,575,564 |
| | | | 47,701,575 |
| Electric – 2.6% |
| American Electric Power Co., Inc. | | 24,478 | 2,426,015 |
| Avista Corp. | | 40,533 | 1,644,424 |
| Dominion Energy, Inc. | | 183,583 | 14,987,716 |
| Duke Energy Corp. | | 61,652 | 6,791,584 |
| NorthWestern Corp.(a) | | 27,269 | 1,545,880 |
| PPL Corp. | | 123,598 | 3,499,059 |
| Southern (The) Co. | | 76,305 | 5,600,024 |
| Xcel Energy, Inc. | | 21,465 | 1,572,526 |
| | | | 38,067,228 |
| Electrical Component & Equipment – 0.2% |
| Encore Wire Corp. | | 7,186 | 810,653 |
| Novanta, Inc.* | | 16,982 | 2,185,583 |
| | | | 2,996,236 |
| Electronics – 1.1% |
| Honeywell International, Inc. | | 34,311 | 6,639,522 |
| nVent Electric PLC | | 204,612 | 6,911,793 |
| Sensata Technologies Holding PLC* | | 63,623 | 2,889,120 |
| | | | 16,440,435 |
| Engineering & Construction – 0.1% |
| Comfort Systems USA, Inc. | | 18,955 | 1,600,181 |
| Entertainment – 0.6% |
| Red Rock Resorts, Inc., Class A | | 144,883 | 6,369,057 |
| Vail Resorts, Inc. | | 9,091 | 2,310,568 |
| | | | 8,679,625 |
| Environmental Control – 0.1% |
| Stericycle, Inc.* | | 36,861 | 1,850,054 |
| Food – 1.1% |
| Flowers Foods, Inc. | | 22,611 | 599,644 |
| Hostess Brands, Inc.* | | 72,031 | 1,634,383 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Food (Continued) |
| J&J Snack Foods Corp. | | 11,311 | $ 1,693,257 |
| Lancaster Colony Corp. | | 14,969 | 2,322,889 |
| Nestle S.A. (Switzerland)(b) | | 35,699 | 4,608,530 |
| Post Holdings, Inc.* | | 56,651 | 4,214,268 |
| Seaboard Corp. | | 217 | 916,823 |
| | | | 15,989,794 |
| Forest Products & Paper – 0.2% |
| International Paper Co. | | 69,933 | 3,236,499 |
| Gas – 0.4% |
| South Jersey Industries, Inc. | | 84,832 | 2,900,406 |
| UGI Corp. | | 91,323 | 3,132,379 |
| | | | 6,032,785 |
| Hand/Machine Tools – 0.1% |
| Stanley Black & Decker, Inc. | | 17,205 | 2,067,181 |
| Healthcare - Products – 3.7% |
| Abbott Laboratories | | 37,913 | 4,303,126 |
| Alcon, Inc. (Switzerland)(a) | | 81,014 | 5,769,007 |
| Avanos Medical, Inc.* | | 27,496 | 801,783 |
| Boston Scientific Corp.* | | 131,178 | 5,523,906 |
| CONMED Corp. | | 12,118 | 1,611,209 |
| Danaher Corp. | | 15,851 | 3,980,662 |
| Intuitive Surgical, Inc.* | | 23,660 | 5,661,838 |
| Medtronic PLC | | 46,921 | 4,896,676 |
| Merit Medical Systems, Inc.* | | 26,019 | 1,613,438 |
| Neogen Corp.* | | 49,406 | 1,304,318 |
| Patterson Cos., Inc. | | 49,966 | 1,537,454 |
| Thermo Fisher Scientific, Inc. | | 32,484 | 17,961,053 |
| | | | 54,964,470 |
| Healthcare - Services – 1.6% |
| Ensign Group (The), Inc. | | 36,119 | 2,901,439 |
| ICON PLC (Ireland)* | | 10,795 | 2,441,937 |
| Medpace Holdings, Inc.* | | 17,718 | 2,366,593 |
| UnitedHealth Group, Inc. | | 33,118 | 16,842,159 |
| | | | 24,552,128 |
| Home Builders – 0.4% |
| Century Communities, Inc. | | 30,092 | 1,586,450 |
| Installed Building Products, Inc. | | 10,645 | 856,603 |
| NVR, Inc.* | | 845 | 3,697,898 |
| | | | 6,140,951 |
| Household Products/Wares – 0.4% |
| Central Garden & Pet Co., Class A* | | 39,132 | 1,619,282 |
| | | Number
of Shares | Value |
| Household Products/Wares (Continued) |
| Kimberly-Clark Corp. | | 18,845 | $ 2,616,251 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 19,045 | 1,485,236 |
| | | | 5,720,769 |
| Insurance – 4.4% |
| Alleghany Corp.* | | 3,852 | 3,222,198 |
| American International Group, Inc. | | 156,891 | 9,179,692 |
| AMERISAFE, Inc. | | 17,913 | 830,268 |
| Aon PLC, Class A | | 25,095 | 7,227,109 |
| Argo Group International Holdings Ltd. | | 18,582 | 795,310 |
| Berkshire Hathaway, Inc., Class B* | | 14,249 | 4,600,005 |
| Brighthouse Financial, Inc.* | | 35,636 | 1,830,265 |
| Chubb Ltd. | | 31,928 | 6,591,536 |
| Enstar Group Ltd.* | | 4,838 | 1,140,558 |
| Goosehead Insurance, Inc., Class A | | 13,723 | 788,935 |
| Hagerty, Inc., Class A(a)* | | 52,026 | 494,767 |
| Hartford Financial Services Group (The), Inc. | | 33,813 | 2,364,543 |
| Kemper Corp. | | 81,696 | 3,771,087 |
| Loews Corp. | | 34,378 | 2,160,313 |
| Marsh & McLennan Cos., Inc. | | 41,056 | 6,638,755 |
| Progressive (The) Corp. | | 53,019 | 5,692,120 |
| RenaissanceRe Holdings Ltd. | | 8,880 | 1,274,458 |
| Travelers (The) Cos., Inc. | | 24,550 | 4,199,523 |
| Willis Towers Watson PLC | | 10,596 | 2,276,657 |
| | | | 65,078,099 |
| Internet – 7.3% |
| Alibaba Group Holding Ltd. ADR (China)* | | 34,644 | 3,363,586 |
| Alphabet, Inc., Class A* | | 4,908 | 11,200,989 |
| Amazon.com, Inc.* | | 17,377 | 43,192,792 |
| Meta Platforms, Inc., Class A* | | 116,256 | 23,305,840 |
| Netflix, Inc.* | | 22,100 | 4,206,956 |
| Open Lending Corp., Class A* | | 81,463 | 1,111,155 |
| Palo Alto Networks, Inc.* | | 22,459 | 12,605,788 |
| Q2 Holdings, Inc.* | | 24,040 | 1,243,589 |
| Sea Ltd. ADR (Taiwan)* | | 31,550 | 2,611,078 |
| Uber Technologies, Inc.* | | 167,379 | 5,269,091 |
| | | | 108,110,864 |
| Leisure Time – 0.3% |
| Callaway Golf Co.* | | 49,083 | 1,076,881 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Leisure Time (Continued) |
| Polaris, Inc.(a) | | 19,773 | $ 1,877,249 |
| YETI Holdings, Inc.* | | 26,113 | 1,276,142 |
| | | | 4,230,272 |
| Lodging – 0.2% |
| Marriott International, Inc., Class A* | | 17,726 | 3,146,720 |
| Machinery - Construction & Mining – 0.1% |
| Astec Industries, Inc. | | 23,063 | 901,763 |
| Machinery - Diversified – 1.1% |
| Alamo Group, Inc. | | 6,641 | 839,688 |
| Albany International Corp., Class A | | 10,141 | 793,229 |
| Altra Industrial Motion Corp. | | 101,143 | 3,944,577 |
| Columbus McKinnon Corp. | | 23,979 | 850,056 |
| Enovis Corp.* | | 55,240 | 3,583,462 |
| Esab Corp.* | | 55,241 | 2,596,311 |
| Kadant, Inc. | | 14,663 | 2,712,655 |
| Otis Worldwide Corp. | | 11,907 | 867,306 |
| | | | 16,187,284 |
| Media – 1.0% |
| Charter Communications, Inc., Class A* | | 5,016 | 2,149,306 |
| Comcast Corp., Class A | | 164,768 | 6,551,176 |
| Liberty Media Corp.-Liberty Formula One, Class C* | | 30,599 | 1,907,236 |
| Walt Disney (The) Co.* | | 43,180 | 4,820,183 |
| | | | 15,427,901 |
| Metal Fabricate/Hardware – 0.4% |
| AZZ, Inc. | | 19,739 | 900,888 |
| Helios Technologies, Inc. | | 28,291 | 1,900,589 |
| Janus International Group, Inc.* | | 132,762 | 1,255,929 |
| RBC Bearings, Inc.* | | 11,325 | 1,906,564 |
| | | | 5,963,970 |
| Mining – 0.3% |
| Freeport-McMoRan, Inc. | | 94,627 | 3,837,125 |
| Livent Corp.* | | 37,046 | 791,302 |
| | | | 4,628,427 |
| Miscellaneous Manufacturing – 1.7% |
| Eaton Corp. PLC | | 80,932 | 11,736,758 |
| Fabrinet (Thailand)* | | 17,368 | 1,705,364 |
| Federal Signal Corp. | | 46,673 | 1,588,282 |
| Illinois Tool Works, Inc. | | 22,171 | 4,370,126 |
| | | Number
of Shares | Value |
| Miscellaneous Manufacturing (Continued) |
| Parker-Hannifin Corp. | | 13,274 | $ 3,594,865 |
| Trane Technologies PLC | | 18,844 | 2,636,087 |
| | | | 25,631,482 |
| Office Furnishings – 0.3% |
| Steelcase, Inc., Class A | | 418,294 | 4,906,589 |
| Oil & Gas – 2.4% |
| Brigham Minerals, Inc., Class A | | 54,308 | 1,345,752 |
| Chevron Corp. | | 26,506 | 4,152,695 |
| ConocoPhillips | | 40,768 | 3,894,159 |
| Coterra Energy, Inc. | | 130,092 | 3,745,349 |
| EOG Resources, Inc. | | 21,410 | 2,499,832 |
| Hess Corp. | | 57,816 | 5,959,095 |
| Northern Oil and Gas, Inc. | | 63,003 | 1,573,815 |
| PDC Energy, Inc. | | 22,741 | 1,585,957 |
| Pioneer Natural Resources Co. | | 42,770 | 9,942,742 |
| Whiting Petroleum Corp.* | | 22,186 | 1,620,687 |
| | | | 36,320,083 |
| Packaging & Containers – 0.1% |
| TriMas Corp. | | 47,883 | 1,414,464 |
| Pharmaceuticals – 5.3% |
| BellRing Brands, Inc.* | | 71,821 | 1,539,124 |
| Cigna Corp. | | 27,043 | 6,673,672 |
| Dexcom, Inc.* | | 14,200 | 5,801,836 |
| Johnson & Johnson | | 86,301 | 15,573,879 |
| McKesson Corp. | | 13,686 | 4,237,322 |
| Merck & Co., Inc. | | 145,513 | 12,905,548 |
| Pfizer, Inc. | | 353,956 | 17,368,621 |
| Roche Holding A.G. (Genusschein) (Switzerland) | | 2,667 | 988,961 |
| Viatris, Inc. | | 357,882 | 3,696,921 |
| Zoetis, Inc. | | 58,840 | 10,429,390 |
| | | | 79,215,274 |
| Pipelines – 3.6% |
| Antero Midstream Corp. | | 151,003 | 1,550,801 |
| Cheniere Energy, Inc. | | 68,609 | 9,317,788 |
| Enbridge, Inc. (Canada) | | 234,540 | 10,234,937 |
| Equitrans Midstream Corp. | | 294,044 | 2,311,186 |
| Kinder Morgan, Inc. | | 436,326 | 7,919,317 |
| ONEOK, Inc. | | 61,273 | 3,880,419 |
| Pembina Pipeline Corp. (Canada) | | 63,148 | 2,389,464 |
| Targa Resources Corp. | | 21,206 | 1,556,733 |
| TC Energy Corp. (Canada) | | 144,852 | 7,661,770 |
| Williams (The) Cos., Inc. | | 197,338 | 6,766,720 |
| | | | 53,589,135 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Private Equity – 0.1% |
| KKR & Co., Inc. | | 29,346 | $ 1,495,766 |
| Real Estate – 0.2% |
| Jones Lang LaSalle, Inc.* | | 3,766 | 823,737 |
| Radius Global Infrastructure, Inc. Class A* | | 128,038 | 1,590,232 |
| | | | 2,413,969 |
| Real Estate Investment Trusts – 2.0% |
| Community Healthcare Trust, Inc. | | 31,927 | 1,175,552 |
| CubeSmart | | 103,857 | 4,934,246 |
| Douglas Emmett, Inc. | | 50,902 | 1,499,573 |
| Equinix, Inc. | | 8,229 | 5,917,309 |
| Four Corners Property Trust, Inc. | | 58,613 | 1,609,513 |
| National Storage Affiliates Trust | | 22,527 | 1,275,028 |
| Plymouth Industrial REIT, Inc. | | 64,118 | 1,546,526 |
| PotlatchDeltic Corp. | | 14,511 | 803,764 |
| Public Storage | | 3,937 | 1,462,596 |
| Rayonier, Inc. | | 44,475 | 1,921,320 |
| Ryman Hospitality Properties, Inc.* | | 22,320 | 2,086,474 |
| Sunstone Hotel Investors, Inc.* | | 69,748 | 854,413 |
| UDR, Inc. | | 15,649 | 832,683 |
| Urban Edge Properties | | 63,658 | 1,189,768 |
| Weyerhaeuser Co. | | 56,308 | 2,321,016 |
| | | | 29,429,781 |
| Retail – 2.9% |
| Academy Sports & Outdoors, Inc. | | 21,082 | 787,624 |
| Advance Auto Parts, Inc. | | 35,341 | 7,055,124 |
| Chuy's Holdings, Inc.* | | 34,986 | 875,000 |
| Five Below, Inc.* | | 17,663 | 2,774,857 |
| Floor & Decor Holdings, Inc., Class A* | | 16,734 | 1,334,034 |
| Freshpet, Inc.* | | 13,671 | 1,276,188 |
| Jack in the Box, Inc. | | 19,775 | 1,636,579 |
| Lowe's Cos., Inc. | | 38,016 | 7,516,904 |
| National Vision Holdings, Inc.* | | 21,709 | 817,344 |
| Ollie's Bargain Outlet Holdings, Inc.* | | 27,521 | 1,322,384 |
| Papa John's International, Inc. | | 9,361 | 852,319 |
| Tractor Suppy Co. | | 29,670 | 5,977,022 |
| Ulta Beauty, Inc.* | | 11,068 | 4,391,782 |
| Walmart, Inc. | | 41,472 | 6,344,801 |
| | | | 42,961,962 |
| | | Number
of Shares | Value |
| Savings & Loans – 0.1% |
| Provident Financial Services, Inc. | | 40,148 | $ 888,475 |
| Semiconductors – 2.9% |
| Analog Devices, Inc. | | 13,478 | 2,080,734 |
| ASML Holding N.V. (Netherlands)(b) | | 7,920 | 4,465,058 |
| Intel Corp. | | 141,050 | 6,148,369 |
| Micron Technology, Inc. | | 58,989 | 4,022,460 |
| Monolithic Power Systems, Inc. | | 3,123 | 1,224,966 |
| NVIDIA Corp. | | 69,868 | 12,958,418 |
| NXP Semiconductors N.V. (China) | | 24,801 | 4,238,491 |
| Rambus, Inc.* | | 63,138 | 1,572,768 |
| Texas Instruments, Inc. | | 42,145 | 7,175,186 |
| | | | 43,886,450 |
| Software – 6.2% |
| Adobe, Inc.* | | 21,206 | 8,396,516 |
| Atlassian Corp. PLC, Class A* | | 25,680 | 5,773,634 |
| Avalara, Inc.* | | 10,036 | 763,438 |
| Clearwater Analytics Holdings, Inc., Class A* | | 44,755 | 785,003 |
| Fidelity National Information Services, Inc. | | 60,824 | 6,030,700 |
| Five9, Inc.* | | 10,243 | 1,127,754 |
| Guidewire Software, Inc.* | | 14,440 | 1,255,414 |
| Microsoft Corp. | | 142,167 | 39,454,186 |
| Salesforce, Inc.* | | 66,978 | 11,784,109 |
| Splunk, Inc.* | | 49,457 | 6,034,743 |
| SS&C Technologies Holdings, Inc. | | 29,604 | 1,914,195 |
| UiPath, Inc. Class A* | | 65,380 | 1,165,725 |
| Unity Software, Inc.* | | 35,300 | 2,344,273 |
| Workday, Inc., Class A* | | 29,560 | 6,110,052 |
| | | | 92,939,742 |
| Telecommunications – 1.6% |
| ADTRAN, Inc. | | 53,717 | 934,139 |
| AT&T, Inc. | | 445,566 | 8,403,375 |
| Cisco Systems, Inc. | | 212,224 | 10,394,731 |
| Verizon Communications, Inc. | | 45,040 | 2,085,352 |
| Viavi Solutions, Inc.* | | 115,430 | 1,655,266 |
| | | | 23,472,863 |
| Transportation – 1.3% |
| Canadian National Railway Co. (Canada)(a) | | 15,230 | 1,791,353 |
| Kirby Corp.* | | 45,755 | 2,983,226 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Transportation (Continued) |
| Union Pacific Corp. | | 25,052 | $ 5,869,433 |
| United Parcel Service, Inc., Class B | | 52,835 | 9,509,243 |
| | | | 20,153,255 |
Total Common Stocks
(Cost $1,134,377,052) | 1,269,518,454 |
|
| Master Limited Partnerships – 1.7% |
| Pipelines – 1.7% |
| Energy Transfer L.P. | | 496,522 | 5,501,464 |
| Enterprise Products Partners L.P. | | 395,872 | 10,257,043 |
| Magellan Midstream Partners L.P. | | 63,309 | 3,067,321 |
| MPLX L.P. | | 98,312 | 3,181,376 |
| Plains All American Pipeline L.P. | | 264,502 | 2,740,241 |
| | | | 24,747,445 |
Total Master Limited Partnerships
(Cost $24,797,203) | 24,747,445 |
|
| Investment Companies – 9.8% |
| Energy Select Sector SPDR Fund(a) | | 122,724 | 9,222,709 |
| | | Number
of Shares | Value |
|
| Vanguard Consumer Staples ETF | | 223,488 | $ 44,722,184 |
| Vanguard Financials ETF | | 187,564 | 15,742,246 |
| Vanguard Health Care ETF | | 319,537 | 76,522,721 |
Total Investment Companies
(Cost $121,494,270) | 146,209,860 |
|
| Short-Term Investments – 2.6% |
| Money Market Fund – 2.6% |
| Northern Institutional Funds - Liquid Assets Portfolio (Shares), 0.32%(c)(d) | | 6,209,220 | 6,209,220 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(c) | | 32,072,247 | 32,072,247 |
Total Short-Term Investments
(Cost $38,281,467) | 38,281,467 |
Total Investments – 99.3%
(Cost $1,318,949,992) | 1,478,757,226 |
| Other Assets less Liabilities – 0.7% | 11,141,608 |
| NET ASSETS – 100.0% | $1,489,898,834 |
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Security either partially or fully on loan. | | |
| (b) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (c) | 7-day current yield as of April 30, 2022 is disclosed. | | |
| (d) | Security purchased with the cash proceeds from securities loaned (See Note 7). | | |
| * | Non-Income Producing Security | | |
| Abbreviations: | |
| ADR | American Depositary Receipt |
| ETF | Exchange-Traded Fund |
| L.P. | Limited Partnership |
| PLC | Public Limited Company |
| REIT | Real Estate Investment Trust |
| S&P | Standards & Poor's |
| SPDR | Standard & Poor's Depositary Receipt |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar U.S. Equity Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Common Stocks | 1,257,831,735 | $11,686,719 | $— | 1,269,518,454 |
| Master Limited Partnerships | 24,747,445 | — | — | 24,747,445 |
| Investment Companies | 146,209,860 | — | — | 146,209,860 |
| Short-Term Investments | 38,281,467 | — | — | 38,281,467 |
| Total Investments | $1,467,070,507 | $11,686,719 | $— | $1,478,757,226 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Common Stocks – 95.0% |
| Advertising – 0.9% |
| Dentsu Group, Inc. (Japan) | | 20,894 | $ 753,054 |
| Publicis Groupe S.A. (France) | | 71,900 | 4,316,640 |
| WPP PLC (United Kingdom) | | 251,974 | 3,140,823 |
| | | | 8,210,517 |
| Aerospace/Defense – 0.2% |
| BAE Systems PLC (United Kingdom) | | 118,091 | 1,090,766 |
| Rolls-Royce Holdings PLC (United Kingdom)* | | 822,536 | 843,232 |
| | | | 1,933,998 |
| Agriculture – 0.4% |
| British American Tobacco PLC (United Kingdom) | | 58,218 | 2,440,053 |
| Japan Tobacco, Inc. (Japan) | | 39,800 | 677,069 |
| KT&G Corp. (South Korea) | | 11,309 | 742,649 |
| | | | 3,859,771 |
| Airlines – 0.5% |
| Ryanair Holdings PLC ADR (Ireland)* | | 44,691 | 3,902,418 |
| Wizz Air Holdings PLC (Switzerland)(a)* | | 10,211 | 399,429 |
| | | | 4,301,847 |
| Apparel – 0.4% |
| adidas A.G. (Germany) | | 17,000 | 3,428,207 |
| Shenzhou International Group Holdings Ltd. (China) | | 22,900 | 310,729 |
| | | | 3,738,936 |
| Auto Manufacturers – 4.2% |
| Bayerische Motoren Werke A.G. (Germany) | | 88,920 | 7,261,722 |
| Daimler Truck Holding A.G. (Germany)* | | 154,395 | 4,152,412 |
| Honda Motor Co. Ltd. (Japan) | | 156,000 | 4,103,354 |
| Iveco Group N.V. (Italy)* | | 25,693 | 151,162 |
| Li Auto, Inc. ADR (China)* | | 9,000 | 201,870 |
| Maruti Suzuki India Ltd. (India) | | 4,702 | 470,934 |
| Mercedes-Benz Group A.G. (Germany)* | | 110,990 | 7,747,236 |
| Nissan Motor Co. Ltd. (Japan)* | | 313,576 | 1,255,416 |
| Toyota Motor Corp. (Japan) | | 591,800 | 10,139,730 |
| Volvo AB, Class B (Sweden) | | 187,600 | 2,992,866 |
| | | | 38,476,702 |
| | | Number
of Shares | Value |
| Auto Parts & Equipment – 2.0% |
| Bridgestone Corp. (Japan) | | 72,000 | $ 2,639,066 |
| Continental A.G. (Germany)* | | 84,275 | 5,776,302 |
| Denso Corp. (Japan) | | 24,000 | 1,462,686 |
| Fuyao Glass Industry Group Co. Ltd., Class A (China) | | 87,600 | 464,725 |
| Huayu Automotive Systems Co. Ltd., Class A (China) | | 405,532 | 1,185,871 |
| Hyundai Mobis Co. Ltd. (South Korea) | | 5,881 | 956,763 |
| Stanley Electric Co. Ltd. (Japan) | | 64,500 | 1,112,181 |
| Sumitomo Electric Industries Ltd. (Japan) | | 58,900 | 633,224 |
| Valeo (France) | | 158,894 | 2,888,871 |
| Weichai Power Co. Ltd., Class H (China) | | 752,000 | 1,050,474 |
| | | | 18,170,163 |
| Banks – 11.4% |
| Al Rajhi Bank (Saudi Arabia) | | 20,166 | 944,699 |
| Axis Bank Ltd. (India)* | | 354,407 | 3,340,835 |
| Banco Bilbao Vizcaya Argentaria S.A. (Spain) | | 575,633 | 3,020,491 |
| Banco do Brasil S.A. (Brazil) | | 223,200 | 1,498,850 |
| Banco Santander Chile ADR (Chile) | | 27,017 | 525,210 |
| Bank Central Asia Tbk PT (Indonesia) | | 1,167,800 | 654,986 |
| Bank Mandiri Persero Tbk PT (Indonesia) | | 3,046,800 | 1,870,842 |
| Barclays PLC (United Kingdom) | | 503,355 | 925,238 |
| BNP Paribas S.A. (France) | | 158,105 | 8,197,964 |
| China Construction Bank Corp., Class H (China) | | 5,218,000 | 3,717,299 |
| China Merchants Bank Co. Ltd., Class H (China) | | 171,613 | 1,034,354 |
| Commercial International Bank Egypt S.A.E. GDR (Egypt)(b) | | 443,065 | 994,682 |
| Credicorp Ltd. (Peru) | | 3,549 | 492,921 |
| Credit Suisse Group A.G. (Switzerland)(b) | | 937,507 | 6,363,162 |
| DBS Group Holdings Ltd. (Singapore) | | 262,952 | 6,379,382 |
| First Abu Dhabi Bank PJSC (United Arab Emirates) | | 220,331 | 1,346,082 |
| FirstRand Ltd. (South Africa) | | 282,452 | 1,216,431 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Banks (Continued) |
| Grupo Financiero Banorte S.A.B. de C.V., Class O (Mexico) | | 287,020 | $ 1,891,759 |
| HDFC Bank Ltd. (India) | | 90,450 | 1,621,573 |
| HDFC Bank Ltd. ADR (India) | | 42,864 | 2,366,521 |
| HSBC Holdings PLC (United Kingdom) | | 505,284 | 3,157,584 |
| ICICI Bank Ltd. ADR (India) | | 220,412 | 4,196,644 |
| Intesa Sanpaolo S.p.A. (Italy) | | 44,000 | 89,715 |
| Intesa Sanpaolo S.p.A. (Italian Exchange) (Italy) | | 4,102,600 | 8,359,940 |
| Kasikornbank PCL (Thailand)(b) | | 186,500 | 823,414 |
| Komercni banka A.S. (Czech Republic) | | 13,410 | 440,384 |
| Kotak Mahindra Bank Ltd. (India) | | 83,707 | 1,941,177 |
| Lloyds Banking Group PLC (United Kingdom) | | 17,309,001 | 9,830,885 |
| Mitsubishi UFJ Financial Group, Inc. (Japan) | | 350,300 | 2,036,426 |
| Mizuho Financial Group, Inc. (Japan) | | 55,000 | 667,849 |
| Natwest Group PLC (United Kingdom) | | 939,581 | 2,520,696 |
| Nedbank Group Ltd. (South Africa) | | 135,902 | 1,897,787 |
| OTP Bank Nyrt. (Hungary)* | | 69,770 | 2,081,200 |
| Powszechna Kasa Oszczednosci Bank Polski S.A. (Poland)* | | 62,706 | 462,805 |
| Qatar National Bank QPSC, Class B (Qatar) | | 232,183 | 1,482,324 |
| Resona Holdings, Inc. (Japan) | | 193,800 | 842,726 |
| Saudi National Bank (The) (Saudi Arabia) | | 78,293 | 1,641,008 |
| Sberbank of Russia PJSC (Russia)(c) | | 405,212 | 0 |
| Shinhan Financial Group Co. Ltd. (South Korea) | | 48,113 | 1,598,536 |
| Skandinaviska Enskilda Banken AB Class A (Sweden) | | 222,703 | 2,497,413 |
| Standard Bank Group Ltd. (South Africa) | | 104,810 | 1,110,725 |
| Standard Chartered PLC (United Kingdom) | | 385,171 | 2,633,153 |
| Sumitomo Mitsui Financial Group, Inc. (Japan) | | 104,100 | 3,145,272 |
| Sumitomo Mitsui Trust Holdings, Inc. (Japan) | | 61,400 | 1,905,704 |
| | | | 103,766,648 |
| | | Number
of Shares | Value |
| Beverages – 2.4% |
| Ambev S.A. ADR (Brazil) | | 900,126 | $ 2,619,367 |
| Anheuser-Busch InBev S.A./N.V. (Belgium) | | 83,300 | 4,793,041 |
| Asahi Group Holdings Ltd. (Japan) | | 21,400 | 806,627 |
| Budweiser Brewing Co. APAC Ltd. (China)(a) | | 545,300 | 1,356,814 |
| Diageo PLC (United Kingdom) | | 116,435 | 5,808,807 |
| Fomento Economico Mexicano S.A.B. de C.V. ADR (Mexico) | | 50,429 | 3,769,063 |
| Heineken N.V. (Netherlands) | | 6,112 | 596,599 |
| Kirin Holdings Co. Ltd. (Japan) | | 146,900 | 2,141,468 |
| | | | 21,891,786 |
| Building Materials – 1.2% |
| Anhui Conch Cement Co. Ltd., Class H (China) | | 282,000 | 1,532,398 |
| Daikin Industries Ltd. (Japan) | | 11,500 | 1,757,404 |
| Holcim Ltd. (Switzerland)* | | 117,705 | 5,755,248 |
| Hongfa Technology Co. Ltd., Class A (China)* | | 59,000 | 426,721 |
| Voltas Ltd. (India) | | 89,734 | 1,470,666 |
| | | | 10,942,437 |
| Chemicals – 2.1% |
| Air Liquide S.A. (France) | | 13,782 | 2,384,401 |
| Asian Paints Ltd. (India) | | 6,194 | 261,091 |
| LG Chem Ltd. (South Korea) | | 2,382 | 975,585 |
| Linde PLC (United Kingdom)(d) | | 8,915 | 2,796,078 |
| Nitto Denko Corp. (Japan) | | 23,300 | 1,563,919 |
| Novozymes A/S, Class B (Denmark) | | 33,873 | 2,361,272 |
| Shin-Etsu Chemical Co. Ltd. (Japan) | | 25,100 | 3,449,606 |
| Symrise A.G. (Germany) | | 26,953 | 3,207,254 |
| Toray Industries, Inc. (Japan) | | 142,300 | 674,400 |
| UPL Ltd. (India) | | 123,595 | 1,319,626 |
| | | | 18,993,232 |
| Coal – 0.1% |
| China Shenhua Energy Co. Ltd., Class H (China) | | 256,000 | 817,883 |
| Commercial Services – 3.1% |
| Adyen N.V. (Netherlands)(a)* | | 2,438 | 4,089,241 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Commercial Services (Continued) |
| Amadeus IT Group S.A. (Spain)* | | 60,800 | $ 3,809,906 |
| Bidvest Group (The) Ltd. (South Africa) | | 61,061 | 837,061 |
| Brambles Ltd. (Australia) | | 339,900 | 2,509,930 |
| CCR S.A. (Brazil) | | 616,260 | 1,561,856 |
| Edenred (France) | | 30,100 | 1,511,687 |
| Experian PLC (United Kingdom) | | 21,615 | 746,460 |
| Localiza Rent a Car S.A. (Brazil) | | 48,500 | 522,479 |
| Pony Testing International Group Co. Ltd., Class A (China) | | 31,600 | 283,330 |
| Recruit Holdings Co. Ltd. (Japan) | | 51,100 | 1,853,990 |
| RELX PLC (United Kingdom) | | 46,799 | 1,394,165 |
| Rentokil Initial PLC (United Kingdom) | | 85,170 | 584,971 |
| Secom Co. Ltd. (Japan) | | 20,200 | 1,421,161 |
| SGS S.A. (Switzerland)(b) | | 729 | 1,873,181 |
| Worldline S.A. (France)(a)* | | 132,700 | 5,220,975 |
| | | | 28,220,393 |
| Computers – 1.0% |
| Capgemini SE (France) | | 9,700 | 1,974,717 |
| Globant S.A.* | | 1,327 | 286,619 |
| Infosys Ltd. (India) | | 76,766 | 1,555,831 |
| Lenovo Group Ltd. (China) | | 1,544,000 | 1,499,229 |
| Quanta Computer, Inc. (Taiwan) | | 555,000 | 1,563,162 |
| Sangfor Technologies, Inc., Class A (China) | | 21,300 | 283,506 |
| Tata Consultancy Services Ltd. (India) | | 7,662 | 353,129 |
| Wiwynn Corp. (Taiwan) | | 35,000 | 1,196,847 |
| | | | 8,713,040 |
| Cosmetics/Personal Care – 2.1% |
| Kao Corp. (Japan) | | 61,300 | 2,456,811 |
| L'Oreal S.A. (France) | | 19,546 | 7,111,030 |
| Shiseido Co. Ltd. (Japan) | | 49,900 | 2,358,845 |
| Unicharm Corp. (Japan) | | 82,800 | 2,880,778 |
| Unilever PLC (United Kingdom) | | 28,317 | 1,314,307 |
| Unilever PLC (London Exchange) (United Kingdom) | | 65,156 | 3,029,110 |
| | | | 19,150,881 |
| Distribution/Wholesale – 0.9% |
| Bunzl PLC (United Kingdom) | | 15,048 | 580,561 |
| Ferguson PLC | | 3,898 | 489,001 |
| | | Number
of Shares | Value |
| Distribution/Wholesale (Continued) |
| ITOCHU Corp. (Japan) | | 87,400 | $ 2,637,818 |
| Mitsubishi Corp. (Japan) | | 65,700 | 2,205,912 |
| Mitsui & Co. Ltd. (Japan) | | 88,600 | 2,145,520 |
| | | | 8,058,812 |
| Diversified Financial Services – 2.2% |
| B3 S.A. - Brasil Bolsa Balcao (Brazil) | | 575,700 | 1,548,723 |
| Capitec Bank Holdings Ltd. (South Africa) | | 5,028 | 701,857 |
| Daiwa Securities Group, Inc. (Japan) | | 126,500 | 619,993 |
| HDFC Asset Management Co. Ltd. (India)(a) | | 14,078 | 372,766 |
| Hong Kong Exchanges & Clearing Ltd. (Hong Kong) | | 10,200 | 432,674 |
| Housing Development Finance Corp. Ltd. (India) | | 74,572 | 2,151,547 |
| Japan Exchange Group, Inc. (Japan) | | 40,300 | 600,083 |
| KB Financial Group, Inc. (South Korea) | | 39,186 | 1,823,094 |
| London Stock Exchange Group PLC (United Kingdom) | | 10,994 | 1,083,918 |
| Moscow Exchange MICEX PJSC (Russia)(c) | | 83,130 | 0 |
| Network International Holdings PLC (United Arab Emirates)(a)* | | 77,167 | 252,099 |
| ORIX Corp. (Japan) | | 82,600 | 1,506,539 |
| Sanlam Ltd. (South Africa) | | 185,013 | 766,424 |
| Saudi Tadawul Group Holding Co. (Saudi Arabia)* | | 10,961 | 590,891 |
| Schroders PLC (United Kingdom) | | 112,200 | 3,960,686 |
| St James's Place PLC (United Kingdom) | | 44,483 | 714,824 |
| XP, Inc., Class A (Brazil)* | | 108,395 | 2,667,601 |
| | | | 19,793,719 |
| Electric – 0.5% |
| Chubu Electric Power Co., Inc. (Japan) | | 140,881 | 1,422,203 |
| Electric Power Development Co. Ltd. (Japan) | | 54,651 | 748,873 |
| Engie Brasil Energia S.A. (Brazil) | | 96,900 | 822,012 |
| National Grid PLC (United Kingdom) | | 75,511 | 1,121,865 |
| SSE PLC (United Kingdom) | | 25,591 | 594,372 |
| | | | 4,709,325 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Electrical Component & Equipment – 0.7% |
| Casio Computer Co. Ltd. (Japan) | | 53,100 | $ 550,639 |
| Schneider Electric S.E. | | 40,041 | 5,744,646 |
| | | | 6,295,285 |
| Electronics – 1.2% |
| AAC Technologies Holdings, Inc. (China) | | 149,153 | 348,389 |
| Hon Hai Precision Industry Co. Ltd. (Taiwan) | | 428,000 | 1,466,363 |
| Hoya Corp. (Japan) | | 13,600 | 1,349,693 |
| Kyocera Corp. (Japan) | | 26,400 | 1,386,184 |
| Murata Manufacturing Co. Ltd. (Japan) | | 42,400 | 2,527,358 |
| Nidec Corp. (Japan) | | 19,900 | 1,286,517 |
| Shenzhen Inovance Technology Co. Ltd., Class A (China) | | 71,700 | 616,081 |
| Silergy Corp. (China) | | 5,000 | 445,162 |
| TDK Corp. (Japan) | | 60,800 | 1,878,217 |
| | | | 11,303,964 |
| Engineering & Construction – 0.1% |
| Airports of Thailand PCL (Thailand)(b)* | | 109,100 | 212,625 |
| Grupo Aeroportuario del Sureste S.A.B. de C.V. ADR (Mexico) | | 3,180 | 693,940 |
| | | | 906,565 |
| Entertainment – 0.3% |
| Entain PLC (United Kingdom)* | | 25,980 | 488,173 |
| OPAP S.A. (Greece) | | 64,773 | 960,090 |
| Songcheng Performance Development Co. Ltd., Class A (China) | | 431,300 | 806,289 |
| | | | 2,254,552 |
| Food – 1.8% |
| Associated British Foods PLC (United Kingdom) | | 24,974 | 499,748 |
| Danone S.A. (France) | | 63,300 | 3,827,829 |
| Jeronimo Martins SGPS S.A. (Portugal) | | 11,012 | 229,233 |
| MEIJI Holdings Co. Ltd. (Japan) | | 34,400 | 1,714,734 |
| Nestle S.A. ADR (Switzerland) | | 39,450 | 5,074,848 |
| Seven & i Holdings Co. Ltd. (Japan) | | 30,600 | 1,353,038 |
| Shoprite Holdings Ltd. (South Africa) | | 25,239 | 364,553 |
| Tesco PLC (United Kingdom) | | 311,863 | 1,059,499 |
| | | Number
of Shares | Value |
| Food (Continued) |
| Tingyi Cayman Islands Holding Corp. (China) | | 590,000 | $ 1,076,846 |
| Universal Robina Corp. (Philippines) | | 195,040 | 381,546 |
| X5 Retail Group N.V. GDR (Russia)(b)(c) | | 26,321 | 0 |
| Yamazaki Baking Co. Ltd. (Japan) | | 46,500 | 574,839 |
| | | | 16,156,713 |
| Food Service – 0.3% |
| Compass Group PLC (United Kingdom) | | 124,957 | 2,636,824 |
| Forest Products & Paper – 0.3% |
| Mondi PLC (Austria) | | 29,818 | 560,160 |
| UPM-Kymmene OYJ (Finland) | | 53,600 | 1,854,147 |
| | | | 2,414,307 |
| Gas – 0.6% |
| ENN Energy Holdings Ltd. (China) | | 265,800 | 3,560,411 |
| ENN Natural Gas Co. Ltd., Class A (China) | | 269,700 | 661,488 |
| Osaka Gas Co. Ltd. (Japan) | | 76,500 | 1,378,791 |
| | | | 5,600,690 |
| Healthcare - Products – 1.6% |
| Alcon, Inc. (Switzerland)(d) | | 47,908 | 3,411,529 |
| China Medical System Holdings Ltd. (China) | | 447,000 | 639,991 |
| Hengan International Group Co. Ltd. (China) | | 299,500 | 1,415,385 |
| Koninklijke Philips N.V. (Netherlands) | | 82,000 | 2,142,751 |
| Olympus Corp. (Japan) | | 75,200 | 1,323,605 |
| Smith & Nephew PLC (United Kingdom) | | 34,803 | 564,107 |
| Sonova Holding A.G. (Switzerland)(b) | | 8,323 | 3,001,491 |
| Sysmex Corp. (Japan) | | 34,100 | 2,236,877 |
| | | | 14,735,736 |
| Healthcare - Services – 1.9% |
| Fresenius Medical Care A.G. & Co. KGaA (Germany) | | 77,600 | 4,825,701 |
| Fresenius S.E. & Co. KGaA (Germany) | | 142,200 | 5,026,478 |
| Life Healthcare Group Holdings Ltd. (South Africa) | | 695,509 | 947,751 |
| Lonza Group A.G. (Switzerland)(b) | | 7,634 | 4,501,268 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Healthcare - Services (Continued) |
| Nahdi Medical Co. (Saudi Arabia)* | | 22,765 | $ 1,013,585 |
| Rede D'Or Sao Luiz S.A. (Brazil)(a) | | 51,524 | 385,079 |
| Wuxi Biologics Cayman, Inc. (China)(a)* | | 110,500 | 815,580 |
| | | | 17,515,442 |
| Holding Companies - Diversified – 0.1% |
| Siam Cement (The) PCL (Thailand)(b) | | 59,200 | 639,533 |
| Home Builders – 0.1% |
| Berkeley Group Holdings (The) PLC (United Kingdom)* | | 10,605 | 537,848 |
| Sekisui House Ltd. (Japan) | | 38,369 | 666,391 |
| | | | 1,204,239 |
| Home Furnishings – 1.4% |
| Coway Co. Ltd. (South Korea) | | 20,845 | 1,167,531 |
| Gree Electric Appliances, Inc. of Zhuhai, Class A (China) | | 199,900 | 933,506 |
| Haier Smart Home Co. Ltd., Class A (China) | | 878,900 | 3,390,114 |
| Midea Group Co. Ltd., Class A (China) | | 118,500 | 1,008,328 |
| Panasonic Holdings Corp. (Japan) | | 206,200 | 1,837,901 |
| Sony Group Corp. (Japan) | | 54,200 | 4,677,519 |
| | | | 13,014,899 |
| Household Products/Wares – 1.0% |
| Henkel A.G. & Co. KGaA (Germany) | | 62,300 | 3,953,629 |
| Hindustan Unilever Ltd. (India) | | 12,035 | 349,661 |
| Kimberly-Clark de Mexico S.A.B. de C.V., Series A (Mexico) | | 513,300 | 714,367 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 51,752 | 4,035,911 |
| | | | 9,053,568 |
| Insurance – 4.4% |
| AIA Group Ltd. (Hong Kong) | | 829,800 | 8,151,756 |
| Allianz S.E. (Germany)(b) | | 60,104 | 13,561,514 |
| Aviva PLC (United Kingdom) | | 98,717 | 529,629 |
| BB Seguridade Participacoes S.A. (Brazil) | | 438,400 | 2,239,019 |
| Dai-ichi Life Holdings, Inc. (Japan) | | 74,600 | 1,493,792 |
| | | Number
of Shares | Value |
| Insurance (Continued) |
| HDFC Life Insurance Co. Ltd. (India)(a) | | 70,484 | $ 534,438 |
| Legal & General Group PLC (United Kingdom) | | 155,597 | 485,011 |
| MS&AD Insurance Group Holdings, Inc. (Japan) | | 46,400 | 1,381,201 |
| Ping An Insurance Group Co. of China Ltd., Class H (China) | | 704,000 | 4,449,786 |
| Prudential PLC (United Kingdom) | | 379,649 | 4,726,042 |
| Sompo Holdings, Inc. (Japan) | | 17,800 | 724,638 |
| Tokio Marine Holdings, Inc. (Japan) | | 26,400 | 1,427,414 |
| | | | 39,704,240 |
| Internet – 7.0% |
| Alibaba Group Holding Ltd. (China)* | | 1,032,156 | 12,589,918 |
| Alibaba Group Holding Ltd. ADR (China)* | | 20,113 | 1,952,771 |
| Baidu, Inc., Class A (China)* | | 151,550 | 2,416,270 |
| Coupang, Inc. (South Korea)* | | 19,783 | 254,607 |
| D-MARKET Elektronik Hizmetler ve Ticaret A.S. ADR (Turkey)(d)* | | 21,048 | 33,677 |
| JD.com, Inc., Class A (China)* | | 110,683 | 3,450,936 |
| Meituan, Class B (China)(a)* | | 191,300 | 4,098,872 |
| MercadoLibre, Inc. (Brazil)* | | 577 | 561,785 |
| NAVER Corp. (South Korea) | | 21,566 | 4,804,022 |
| Ozon Holdings PLC ADR (Russia)(c)* | | 8,944 | 0 |
| Pinduoduo, Inc. ADR (China)* | | 37,754 | 1,626,820 |
| Prosus N.V. (China)* | | 161,843 | 7,805,472 |
| Sea Ltd. ADR (Taiwan)* | | 5,461 | 451,952 |
| Tencent Holdings Ltd. (China) | | 358,400 | 16,889,559 |
| Tencent Music Entertainment Group ADR (China)* | | 257,105 | 1,092,696 |
| Trip.com Group Ltd. (China)* | | 55,700 | 1,315,280 |
| Trip.com Group Ltd. ADR (China)* | | 91,299 | 2,159,221 |
| Vipshop Holdings Ltd. ADR (China)* | | 323,900 | 2,481,074 |
| Yandex N.V., Class A (Russia)(c)* | | 41,059 | 0 |
| | | | 63,984,932 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Investment Management Companies – 0.6% |
| EXOR N.V. (Netherlands) | | 81,000 | $ 5,620,982 |
| Iron/Steel – 0.5% |
| Ternium S.A. ADR (Mexico) | | 7,346 | 315,144 |
| thyssenkrupp A.G. (Germany)* | | 499,300 | 3,829,148 |
| Vale S.A. ADR (Brazil) | | 46,579 | 786,719 |
| | | | 4,931,011 |
| Leisure Time – 0.2% |
| Bajaj Auto Ltd. (India) | | 15,981 | 775,657 |
| Hero MotoCorp Ltd. (India) | | 19,471 | 632,505 |
| | | | 1,408,162 |
| Lodging – 0.6% |
| Accor S.A. (France)* | | 159,619 | 5,244,063 |
| InterContinental Hotels Group PLC (United Kingdom) | | 8,252 | 526,806 |
| | | | 5,770,869 |
| Machinery - Construction & Mining – 1.5% |
| Epiroc AB, Class A (Sweden) | | 168,298 | 3,411,916 |
| Hitachi Ltd. (Japan) | | 44,500 | 2,110,478 |
| Komatsu Ltd. (Japan) | | 272,500 | 6,133,016 |
| Mitsubishi Electric Corp. (Japan) | | 232,300 | 2,433,178 |
| | | | 14,088,588 |
| Machinery - Diversified – 3.0% |
| Atlas Copco AB, Class A (Sweden) | | 144,114 | 6,533,678 |
| CNH Industrial N.V. (United Kingdom)(d) | | 359,666 | 5,095,134 |
| Daifuku Co. Ltd. (Japan) | | 16,749 | 1,029,874 |
| FANUC Corp. (Japan) | | 25,100 | 3,846,024 |
| Keyence Corp. (Japan) | | 11,200 | 4,502,447 |
| Kubota Corp. (Japan) | | 189,100 | 3,212,558 |
| Nabtesco Corp. (Japan) | | 28,666 | 653,803 |
| SMC Corp. (Japan) | | 4,000 | 1,936,882 |
| Sumitomo Heavy Industries Ltd. (Japan) | | 33,264 | 703,913 |
| | | | 27,514,313 |
| Media – 1.0% |
| Grupo Televisa S.A.B. ADR (Mexico) | | 274,500 | 2,533,635 |
| Informa PLC (United Kingdom)* | | 410,116 | 2,909,322 |
| Liberty Global PLC, Class A (United Kingdom)* | | 171,200 | 3,896,512 |
| | | | 9,339,469 |
| | | Number
of Shares | Value |
| Metal Fabricate/Hardware – 0.7% |
| SKF AB, Class B (Sweden) | | 264,900 | $ 4,326,529 |
| Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A (China) | | 931,300 | 2,323,753 |
| | | | 6,650,282 |
| Mining – 2.8% |
| Anglo American PLC (South Africa) | | 44,450 | 1,968,735 |
| BHP Group Ltd. ADR (Australia)(d) | | 100,695 | 6,744,551 |
| Cameco Corp. (Canada) | | 4,666 | 120,477 |
| Glencore PLC (Australia)* | | 1,248,038 | 7,689,995 |
| Grupo Mexico S.A.B. de C.V., Series B (Mexico) | | 265,203 | 1,242,288 |
| Rio Tinto PLC (Australia) | | 99,418 | 7,024,495 |
| Sumitomo Metal Mining Co. Ltd. (Japan) | | 15,300 | 671,008 |
| | | | 25,461,549 |
| Miscellaneous Manufacturing – 1.4% |
| Alfa Laval AB (Sweden) | | 108,527 | 3,020,987 |
| Orica Ltd. (Australia) | | 242,207 | 2,783,158 |
| Siemens A.G. (Germany)(b) | | 27,400 | 3,368,967 |
| Smiths Group PLC (United Kingdom) | | 107,213 | 1,961,923 |
| Sunny Optical Technology Group Co. Ltd. (China) | | 27,200 | 396,410 |
| Toshiba Corp. (Japan) | | 37,230 | 1,546,100 |
| | | | 13,077,545 |
| Office/Business Equipment – 0.1% |
| FUJIFILM Holdings Corp. (Japan) | | 24,000 | 1,319,310 |
| Oil & Gas – 4.8% |
| Bharat Petroleum Corp. Ltd. (India) | | 142,286 | 669,594 |
| BP PLC (United Kingdom) | | 1,104,637 | 5,332,962 |
| Canadian Natural Resources Ltd. (Canada) | | 19,464 | 1,204,673 |
| Cenovus Energy, Inc. (Canada) | | 29,461 | 544,661 |
| Chevron Corp. | | 2,980 | 466,877 |
| China Petroleum & Chemical Corp., Class H (China) | | 1,267,092 | 620,206 |
| Ecopetrol S.A. ADR (Colombia)(d) | | 13,677 | 221,978 |
| ENEOS Holdings, Inc. (Japan) | | 191,200 | 672,759 |
| Eni S.p.A. (Italy) | | 74,241 | 1,037,799 |
| Equinor ASA (Norway) | | 23,398 | 790,843 |
| Exxon Mobil Corp. | | 15,808 | 1,347,632 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Oil & Gas (Continued) |
| Galp Energia SGPS S.A. (Portugal) | | 206,984 | $ 2,519,337 |
| Gazprom PJSC ADR (Russia)(c) | | 210,897 | 0 |
| Imperial Oil Ltd. (Canada) | | 5,308 | 267,249 |
| Inpex Corp. (Japan) | | 142,000 | 1,689,541 |
| LUKOIL PJSC ADR (Russia)(c) | | 13,736 | 0 |
| LUKOIL PJSC ADR (OTC Exchange) (Russia)(c) | | 47,274 | 0 |
| Neste OYJ (Finland) | | 15,691 | 673,282 |
| OMV A.G. (Austria) | | 5,818 | 297,403 |
| Petroleo Brasileiro S.A. ADR (Brazil) | | 275,256 | 3,735,224 |
| Reliance Industries Ltd. (India) | | 40,965 | 1,484,263 |
| Repsol S.A. (Spain) | | 38,005 | 566,954 |
| Rosneft Oil Co. PJSC GDR (Russia)(b)(c) | | 210,931 | 0 |
| Santos Ltd. (Australia) | | 39,404 | 220,192 |
| Shell PLC (Netherlands) | | 502,848 | 13,499,405 |
| Suncor Energy, Inc. (Canada) | | 29,194 | 1,049,452 |
| TotalEnergies S.E. (France) | | 71,078 | 3,490,141 |
| Vibra Energia S.A. (Brazil) | | 185,900 | 794,520 |
| Woodside Petroleum Ltd. (Australia) | | 20,950 | 455,790 |
| | | | 43,652,737 |
| Pharmaceuticals – 5.3% |
| Alfresa Holdings Corp. (Japan) | | 53,400 | 726,171 |
| Astellas Pharma, Inc. (Japan) | | 43,000 | 654,706 |
| AstraZeneca PLC (United Kingdom) | | 31,808 | 4,244,499 |
| Bayer A.G. (Germany)(b) | | 140,860 | 9,278,596 |
| Chugai Pharmaceutical Co. Ltd. (Japan) | | 165,700 | 4,965,228 |
| CSPC Pharmaceutical Group Ltd. (China) | | 2,872,000 | 2,936,179 |
| Daiichi Sankyo Co. Ltd. (Japan) | | 63,900 | 1,608,933 |
| GlaxoSmithKline PLC | | 120,683 | 2,720,506 |
| Jiangsu Hengrui Medicine Co. Ltd., Class A (China) | | 38,040 | 168,012 |
| Novartis A.G. (Switzerland)(b) | | 53,200 | 4,701,247 |
| Ono Pharmaceutical Co. Ltd. (Japan) | | 29,800 | 765,578 |
| Roche Holding A.G. (Genusschein) (Switzerland) | | 22,442 | 8,321,809 |
| | | Number
of Shares | Value |
| Pharmaceuticals (Continued) |
| Shionogi & Co. Ltd. (Japan) | | 56,600 | $ 3,148,427 |
| Sinopharm Group Co. Ltd., Class H (China) | | 777,523 | 1,789,220 |
| Takeda Pharmaceutical Co. Ltd. (Japan) | | 92,100 | 2,672,424 |
| | | | 48,701,535 |
| Pipelines – 0.1% |
| Petronet LNG Ltd (India) | | 350,105 | 928,008 |
| Real Estate – 0.9% |
| A-Living Smart City Services Co. Ltd. (China)(a) | | 540,750 | 855,235 |
| China Overseas Land & Investment Ltd. (China) | | 480,500 | 1,484,399 |
| China Resources Mixc Lifestyle Services Ltd. (China)(a) | | 108,800 | 522,709 |
| China Vanke Co. Ltd., Class H (China) | | 568,500 | 1,340,524 |
| Mitsubishi Estate Co. Ltd. (Japan) | | 153,300 | 2,233,057 |
| Mitsui Fudosan Co. Ltd. (Japan) | | 34,600 | 733,304 |
| Sumitomo Realty & Development Co. Ltd. (Japan) | | 26,200 | 695,046 |
| | | | 7,864,274 |
| Retail – 3.1% |
| Alibaba Health Information Technology Ltd. (China)(d)* | | 1,928,000 | 1,086,283 |
| Alimentation Couche-Tard, Inc. (Canada) | | 68,773 | 3,061,634 |
| Astra International Tbk PT (Indonesia) | | 2,576,400 | 1,345,245 |
| Cie Financiere Richemont S.A., Class A (Switzerland)(b) | | 4,580 | 532,154 |
| Clicks Group Ltd. (South Africa) | | 34,353 | 676,118 |
| CP ALL PCL (Thailand)(b) | | 833,000 | 1,580,876 |
| Fast Retailing Co. Ltd. (Japan) | | 3,600 | 1,657,462 |
| Hennes & Mauritz AB, Class B (Sweden)(d) | | 345,268 | 4,346,607 |
| Kingfisher PLC (United Kingdom) | | 164,069 | 517,403 |
| Nitori Holdings Co. Ltd. (Japan) | | 18,900 | 1,944,420 |
| Raia Drogasil S.A. (Brazil) | | 226,141 | 956,901 |
| Restaurant Brands International, Inc. (Canada) | | 44,400 | 2,534,796 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Retail (Continued) |
| SM Investments Corp. (Philippines) | | 51,140 | $ 834,129 |
| Swatch Group (The) A.G. (Bearer) (Switzerland) | | 9,030 | 2,317,484 |
| Wal-Mart de Mexico S.A.B. de C.V. (Mexico) | | 208,601 | 739,378 |
| Yifeng Pharmacy Chain Co. Ltd., Class A (China) | | 83,413 | 459,453 |
| Yum China Holdings, Inc. (China) | | 3,050 | 126,256 |
| Yum China Holdings, Inc. (New York Exchange) (China) | | 59,400 | 2,482,920 |
| Zhongsheng Group Holdings Ltd. (China) | | 225,500 | 1,490,063 |
| | | | 28,689,582 |
| Semiconductors – 5.1% |
| ASE Technology Holding Co. Ltd. (Taiwan) | | 556,000 | 1,773,842 |
| ASM Pacific Technology Ltd. (Hong Kong) | | 107,600 | 1,084,370 |
| ASML Holding N.V. (Netherlands) | | 1,076 | 610,671 |
| Globalwafers Co. Ltd. (Taiwan) | | 41,000 | 714,531 |
| Infineon Technologies A.G. (Germany) | | 188,955 | 5,363,152 |
| MediaTek, Inc. (Taiwan) | | 44,000 | 1,212,992 |
| Novatek Microelectronics Corp. (Taiwan) | | 109,000 | 1,441,914 |
| Samsung Electronics Co. Ltd. (South Korea) | | 133,227 | 7,100,143 |
| Samsung Electronics Co. Ltd. GDR (South Korea)(b) | | 6,134 | 8,012,609 |
| SK Hynix, Inc. (South Korea) | | 34,461 | 3,019,753 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | | 471,945 | 8,534,021 |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) | | 56,553 | 5,255,470 |
| Tokyo Electron Ltd. (Japan) | | 4,700 | 1,983,149 |
| Vanguard International Semiconductor Corp. (Taiwan) | | 110,000 | 387,039 |
| | | | 46,493,656 |
| Software – 2.0% |
| Dassault Systemes S.E. (France) | | 69,383 | 3,068,419 |
| | | Number
of Shares | Value |
| Software (Continued) |
| Hundsun Technologies, Inc., Class A (China) | | 179,600 | $ 1,023,659 |
| Kingdee International Software Group Co. Ltd. (China)* | | 409,000 | 834,603 |
| NetEase, Inc. (China) | | 68,500 | 1,312,137 |
| Nexon Co. Ltd. (Japan) | | 34,500 | 785,603 |
| Open Text Corp. (Canada) | | 81,400 | 3,260,055 |
| SAP S.E. (Germany) | | 47,200 | 4,783,532 |
| SAP S.E. ADR (Germany) | | 26,387 | 2,659,810 |
| Square Enix Holdings Co. Ltd. (Japan) | | 14,600 | 582,916 |
| | | | 18,310,734 |
| Telecommunications – 1.9% |
| America Movil S.A.B. de C.V., Series L ADR (Mexico) | | 45,475 | 883,579 |
| BT Group PLC (United Kingdom) | | 236,055 | 523,473 |
| Indus Towers Ltd. (India)* | | 438,269 | 1,191,487 |
| KDDI Corp. (Japan) | | 89,200 | 2,953,831 |
| KT Corp. (South Korea) | | 16,385 | 461,340 |
| Mobile TeleSystems PJSC ADR (Russia)(c) | | 138,416 | 0 |
| Nippon Telegraph & Telephone Corp. (Japan) | | 45,400 | 1,337,909 |
| Softbank Corp. (Japan) | | 53,300 | 620,298 |
| SoftBank Group Corp. (Japan) | | 71,600 | 2,944,925 |
| Telkom Indonesia Persero Tbk PT (Indonesia) | | 11,247,600 | 3,584,460 |
| Telkom Indonesia Persero Tbk PT ADR (Indonesia) | | 36,653 | 1,166,298 |
| Vodacom Group Ltd. (South Africa) | | 76,817 | 739,253 |
| Vodafone Group PLC (United Kingdom) | | 760,418 | 1,151,242 |
| | | | 17,558,095 |
| Toys/Games/Hobbies – 0.3% |
| Nintendo Co. Ltd. (Japan) | | 5,600 | 2,555,788 |
| Transportation – 0.6% |
| Canadian National Railway Co. (Canada) | | 21,784 | 2,562,234 |
| East Japan Railway Co. (Japan) | | 49,500 | 2,581,266 |
| | | | 5,143,500 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Water – 0.1% |
| Severn Trent PLC (United Kingdom) | | 14,777 | $ 580,759 |
Total Common Stocks
(Cost $896,237,551) | 866,832,327 |
|
| Preferred Stocks – 0.5% |
| Banks – 0.1% |
| Itau Unibanco Holding S.A., 2.70% (Brazil)(e) | | 189,656 | 918,368 |
| Semiconductors – 0.4% |
| Samsung Electronics Co. Ltd., 2.38% (South Korea)(e) | | 81,100 | 3,802,263 |
Total Preferred Stocks
(Cost $5,596,875) | 4,720,631 |
|
| Investment Companies – 0.9% |
| iShares MSCI South Korea ETF(d) | | 122,075 | 8,135,078 |
Total Investment Companies
(Cost $8,526,698) | 8,135,078 |
| | | Number
of Shares | Value |
|
| Short-Term Investments – 5.2% |
| Money Market Fund – 5.2% |
| Northern Institutional Funds - Liquid Assets Portfolio (Shares), 0.32%(f)(g) | | 18,453,591 | $ 18,453,591 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(f) | | 28,643,964 | 28,643,964 |
Total Short-Term Investments
(Cost $47,097,555) | 47,097,555 |
Total Investments – 101.6%
(Cost $957,458,679) | 926,785,591 |
| Liabilities less Other Assets – (1.6)%(h) | (14,865,823) |
| NET ASSETS – 100.0% | $911,919,768 |
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. | | |
| (b) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (c) | Investment is valued using significant unobservable inputs (Level 3) (See Note 4 regarding investments in Russian securities). | | |
| (d) | Security either partially or fully on loan. | | |
| (e) | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. | | |
| (f) | 7-day current yield as of April 30, 2022 is disclosed. | | |
| (g) | Security purchased with the cash proceeds from securities loaned (See Note 7). | | |
| (h) | Includes appreciation/ (depreciation) on forward foreign currency exchange contracts. | | |
| * | Non-Income Producing Security | | |
| Abbreviations: | |
| ADR | American Depositary Receipt |
| ETF | Exchange-Traded Fund |
| GDR | Global Depositary Receipt |
| MSCI | Morgan Stanley Capital International |
| PCL | Public Company Limited |
| PJSC | Public Joint Stock Company |
| PLC | Public Limited Company |
| QPSC | Qualified Personal Service Corporation |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
| Concentration by Currency (%)(a) | |
| Euro | 23.7 |
| Japanese Yen | 18.1 |
| British Pound | 11.0 |
| Hong Kong Dollar | 9.1 |
| U.S. Dollar | 8.7 |
| All other currencies less than 5% | 29.4 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Country Diversification (%)(a) | |
| Japan | 18.1 |
| China | 12.4 |
| United Kingdom | 10.2 |
| Germany | 9.7 |
| France | 5.4 |
| Switzerland | 5.1 |
| All other countries less than 5% | 39.1 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 06/15/22 | U.S. Dollars | 4,097,798 | Swiss Francs | 3,763,000 | Northern Trust | $219,852 |
| | | | | | | |
| 06/15/22 | Swiss Francs | 529,000 | U.S. Dollars | 574,877 | Northern Trust | (29,718) |
| Net Unrealized Appreciation | $190,134 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar International Equity Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar International Equity Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Common Stocks | $103,855,550 | $762,976,777 | $—* | $866,832,327 |
| Preferred Stocks | 918,368 | 3,802,263 | — | 4,720,631 |
| Investment Companies | 8,135,078 | — | — | 8,135,078 |
| Short-Term Investments | 47,097,555 | — | — | 47,097,555 |
| Total Investments | $160,006,551 | $766,779,040 | $ — | $926,785,591 |
| *Includes securities determined to have no value as of April 30, 2022. |
| Morningstar International Equity Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Forward Foreign Currency Exchange Contracts | $— | $219,852 | $— | $219,852 |
| Total Assets - Derivative Financial Instruments | $— | $219,852 | $— | $219,852 |
| Liabilities: | | | | |
| Forward Foreign Currency Exchange Contracts | $— | $ (29,718) | $— | $ (29,718) |
| Total Liabilities - Derivative Financial Instruments | $— | $ (29,718) | $— | $ (29,718) |
| Net Derivative Financial Instruments | $— | $190,134 | $— | $190,134 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Global Income Fund
| | | Par (a) | Value |
| Asset-Backed Securities – 2.5% |
| Other – 2.4% |
| AGL CLO Ltd., Series 2021-12A, Class D, (3M USD LIBOR + 2.85%, 2.85% Floor), 3.91%, 7/20/34(b)(c) | | $250,000 | $243,806 |
| Alinea CLO Ltd., Series 2018-1A, Class D, (3M USD LIBOR + 3.10%, 3.10% Floor), 4.16%, 7/20/31(b)(c) | | 250,000 | 242,706 |
| Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates, Series 2005-R3, Class M4, (1M USD LIBOR + 0.93%, 0.93% Floor), 1.60%, 5/25/35(c) | | 226,180 | 225,578 |
| Apex Credit CLO Ltd., Series 2022-1A, Class D, (3M CME Term SOFR + 4.40%), 5.89%, 4/22/33(b)(c) | | 130,000 | 128,733 |
| Bain Capital Credit CLO Ltd., Series 2022-2A, Class D1, (3M CME Term SOFR + 3.65%, 3.65% Floor), 4.99%, 4/22/35(b)(c) | | 250,000 | 249,386 |
| Ballyrock CLO Ltd., Series 2022-19A, Class D, (3M CME Term SOFR + 7.11%, 7.11% Floor), 8.28%, 4/20/35(b)(c) | | 370,000 | 353,297 |
| Barings CLO Ltd., | | | |
| Series 2018-3A, Class D, (3M USD LIBOR + 2.90%), 3.96%, 7/20/29(b)(c) | | 260,000 | 252,970 |
| Series 2016-2A, Class ER2, (3M USD LIBOR + 6.50%, 6.50% Floor), 7.56%, 1/20/32(b)(c) | | 390,000 | 371,273 |
|
| BlueMountain CLO XXIX Ltd., Series 2020-29A, Class ER, (3M USD LIBOR + 6.86%, 6.86% Floor), 8.04%, 7/25/34(b)(c) | | 250,000 | 243,712 |
| Bristol Park CLO Ltd., | | | |
| Series 2016-1A, Class DR, (3M USD LIBOR + 2.95%, 2.95% Floor), 3.99%, 4/15/29(b)(c) | | 250,000 | 245,836 |
| | | Par (a) | Value |
| Other (Continued) |
| Bristol Park CLO Ltd., | | | |
| Series 2016-1A, Class ER, (3M USD LIBOR + 7.00%, 7.00% Floor), 8.05%, 4/15/29(b)(c) | | $350,000 | $ 348,677 |
|
| Buckhorn Park CLO Ltd., Series 2019-1A, Class DR, (3M USD LIBOR + 3.10%, 3.10% Floor), 4.14%, 7/18/34(b)(c) | | 250,000 | 242,624 |
| Hildene Community Funding CDO Ltd., Series 2015-1A, Class ARR, 2.60%, 11/01/35(b) | | 250,000 | 229,049 |
| Jay Park CLO Ltd., Series 2016-1A, Class DR, (3M USD LIBOR + 5.20%, 5.20% Floor), 6.26%, 10/20/27(b)(c) | | 590,000 | 571,674 |
| JP Morgan Mortgage Acquisition Trust, Series 2007-CH4, Class M1, (1M USD LIBOR + 0.23%, 0.23% Floor), 0.90%, 5/25/37(c) | | 270,000 | 260,842 |
| KKR CLO 40 Ltd., Series 40A, Class D, (3M CME Term SOFR + 3.90%, 3.90% Floor), 10/20/34(b)(c)(d) | | 300,000 | 298,051 |
| KKR CLO Ltd., Series 29A, Class D, (3M USD LIBOR + 3.40%, 3.40% Floor), 4.45%, 1/15/32(b)(c) | | 250,000 | 249,287 |
| Nassau Ltd., Series 2021-IA, Class D, (3M USD LIBOR + 3.75%, 3.75% Floor), 4.80%, 8/26/34(b)(c) | | 250,000 | 236,523 |
| Oaktree CLO Ltd., Series 2022-1A, Class E, (3M CME Term SOFR + 7.76%, 7.76% Floor), 5/15/33(b)(c)(d) | | 487,000 | 467,051 |
| Ocean Trails CLO IX, Series 2020-9A, Class DR, (3M USD LIBOR + 3.75%, 3.75% Floor), 4.80%, 10/15/34(b)(c) | | 280,000 | 277,937 |
| Voya CLO Ltd., Series 2020-3A, Class DR, (3M USD LIBOR + 3.25%, 3.25% Floor), 4.31%, 10/20/34(b)(c) | | 260,000 | 258,227 |
| | | | 5,997,239 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Student Loan – 0.1% |
| National Collegiate Student Loan Trust, Series 2007-2, Class A4, (1M USD LIBOR + 0.29%), 0.96%, 1/25/33(c) | | $202,182 | $ 189,070 |
Total Asset-Backed Securities
(Cost $6,215,828) | 6,186,309 |
| | | Number
of Shares | |
| Common Stocks – 46.1% |
| Advertising – 0.1% |
| WPP PLC (United Kingdom) | | 9,947 | 123,988 |
| Aerospace/Defense – 2.0% |
| BAE Systems PLC (United Kingdom) | | 26,270 | 242,647 |
| Raytheon Technologies Corp. | | 50,300 | 4,773,973 |
| | | | 5,016,620 |
| Agriculture – 3.0% |
| Altria Group, Inc. | | 62,350 | 3,464,789 |
| British American Tobacco PLC (United Kingdom) | | 10,368 | 434,547 |
| British American Tobacco PLC ADR (United Kingdom) | | 84,851 | 3,545,075 |
| | | | 7,444,411 |
| Auto Manufacturers – 1.7% |
| Toyota Motor Corp. ADR (Japan)(e) | | 17,870 | 3,055,770 |
| Volvo AB, Class B (Sweden)(f) | | 73,929 | 1,179,422 |
| | | | 4,235,192 |
| Auto Parts & Equipment – 0.2% |
| Cie Generale des Etablissements Michelin S.C.A. (France) | | 4,396 | 544,489 |
| Banks – 4.9% |
| ABN AMRO Bank N.V. - CVA (Netherlands)(b) | | 3,667 | 45,585 |
| Banco Bilbao Vizcaya Argentaria S.A. (Spain) | | 20,220 | 106,099 |
| Banco Santander S.A. (Spain) | | 55,634 | 162,582 |
| Barclays PLC (United Kingdom) | | 132,021 | 242,673 |
| BNP Paribas S.A. (France) | | 52,225 | 2,707,939 |
| CaixaBank S.A. (Spain) | | 14,343 | 46,298 |
| Credit Suisse Group A.G. (Switzerland)(f) | | 5,959 | 40,446 |
| | | Number
of Shares | Value |
| Banks (Continued) |
| DNB Bank ASA (Norway) | | 2,221 | $ 43,037 |
| Erste Group Bank A.G. (Austria) | | 1,809 | 56,325 |
| HSBC Holdings PLC (United Kingdom) | | 146,184 | 913,522 |
| ING Groep N.V. (Netherlands) | | 16,606 | 157,329 |
| Intesa Sanpaolo S.p.A. (Italy) | | 34,316 | 69,926 |
| JPMorgan Chase & Co. | | 25,280 | 3,017,421 |
| KBC Group N.V. (Belgium) | | 633 | 43,064 |
| Lloyds Banking Group PLC (United Kingdom) | | 658,041 | 373,743 |
| Natwest Group PLC (United Kingdom) | | 66,129 | 177,410 |
| Nordea Bank Abp (Finland) | | 8,955 | 89,282 |
| Skandinaviska Enskilda Banken AB Class A (Sweden) | | 6,320 | 70,873 |
| Standard Chartered PLC (United Kingdom) | | 29,957 | 204,796 |
| Svenska Handelsbanken AB, Class A (Sweden)(f) | | 318,031 | 3,207,762 |
| Swedbank AB, Class A (Sweden) | | 5,933 | 93,856 |
| UBS Group A.G. (Switzerland)(f) | | 10,591 | 179,800 |
| UniCredit S.p.A. (Italy) | | 4,865 | 45,026 |
| | | | 12,094,794 |
| Beverages – 0.2% |
| Diageo PLC (United Kingdom) | | 10,039 | 500,834 |
| Building Materials – 1.2% |
| Cie de Saint-Gobain (France) | | 17,997 | 1,049,913 |
| Xinyi Glass Holdings Ltd. (Hong Kong)(e) | | 888,345 | 1,965,740 |
| | | | 3,015,653 |
| Commercial Services – 0.2% |
| Experian PLC (United Kingdom) | | 4,102 | 141,660 |
| RELX PLC (United Kingdom) | | 8,697 | 259,088 |
| Rentokil Initial PLC (United Kingdom) | | 15,987 | 109,803 |
| | | | 510,551 |
| Computers – 0.6% |
| Quanta Computer, Inc. (Taiwan) | | 509,400 | 1,434,729 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Cosmetics/Personal Care – 0.2% |
| Unilever PLC (United Kingdom) | | 11,604 | $ 539,471 |
| Distribution/Wholesale – 0.1% |
| Bunzl PLC (United Kingdom) | | 2,826 | 109,029 |
| Ferguson PLC | | 697 | 87,438 |
| | | | 196,467 |
| Diversified Financial Services – 0.3% |
| Deutsche Boerse A.G. (Germany) | | 738 | 128,482 |
| Julius Baer Group Ltd. (Switzerland) | | 1,281 | 61,216 |
| London Stock Exchange Group PLC (United Kingdom) | | 3,413 | 336,494 |
| St James's Place PLC (United Kingdom) | | 10,518 | 169,020 |
| | | | 695,212 |
| Electric – 1.9% |
| Duke Energy Corp. | | 31,140 | 3,430,382 |
| Enel S.p.A. (Italy) | | 134,675 | 875,777 |
| National Grid PLC (United Kingdom) | | 13,448 | 199,797 |
| SSE PLC (United Kingdom) | | 4,922 | 114,318 |
| | | | 4,620,274 |
| Entertainment – 1.7% |
| Entain PLC (United Kingdom)* | | 4,740 | 89,066 |
| OPAP S.A. (Greece) | | 269,310 | 3,991,817 |
| | | | 4,080,883 |
| Food – 1.2% |
| Associated British Foods PLC (United Kingdom) | | 4,018 | 80,403 |
| Tesco PLC (United Kingdom) | | 863,913 | 2,934,989 |
| | | | 3,015,392 |
| Food Service – 0.1% |
| Compass Group PLC (United Kingdom) | | 8,994 | 189,790 |
| Forest Products & Paper – 1.1% |
| Smurfit Kappa Group PLC (Ireland) | | 26,715 | 1,128,863 |
| UPM-Kymmene OYJ (Finland) | | 41,965 | 1,451,665 |
| | | | 2,580,528 |
| Healthcare - Products – 0.0%(g) |
| Smith & Nephew PLC (United Kingdom) | | 6,145 | 99,602 |
| | | Number
of Shares | Value |
| Healthcare - Services – 0.2% |
| Sonic Healthcare Ltd. (Australia) | | 19,484 | $ 503,198 |
| Home Builders – 0.5% |
| Berkeley Group Holdings (The) PLC (United Kingdom)* | | 1,976 | 100,216 |
| Persimmon PLC (United Kingdom) | | 43,023 | 1,120,503 |
| | | | 1,220,719 |
| Household Products/Wares – 0.1% |
| Reckitt Benckiser Group PLC (United Kingdom) | | 3,711 | 289,405 |
| Insurance – 2.4% |
| Allianz S.E. (Germany)(f) | | 1,546 | 348,830 |
| Assicurazioni Generali S.p.A. (Italy)(e) | | 2,518 | 47,674 |
| Aviva PLC (United Kingdom) | | 35,730 | 191,696 |
| AXA S.A. (France) | | 6,941 | 183,624 |
| Hannover Rueck S.E. (Germany) | | 266 | 41,345 |
| Legal & General Group PLC (United Kingdom) | | 54,842 | 170,948 |
| Muenchener Rueckversicherungs-Gesellschaft A.G. in Muenchen (Germany)(f) | | 443 | 105,496 |
| Prudential PLC (United Kingdom) | | 21,209 | 264,019 |
| Sampo OYJ, Class A (Finland)(f) | | 1,063 | 51,617 |
| Swiss Life Holding A.G. (Switzerland)(f) | | 123 | 71,920 |
| Swiss Re A.G. | | 993 | 81,433 |
| Tryg A/S (Denmark) | | 2,261 | 53,760 |
| Zurich Insurance Group A.G. (Switzerland) | | 9,376 | 4,268,611 |
| | | | 5,880,973 |
| Investment Companies – 0.1% |
| Investor AB, Class B (Sweden)(f) | | 6,237 | 120,018 |
| Kinnevik AB, Class B (Sweden)* | | 2,096 | 41,024 |
| | | | 161,042 |
| Iron/Steel – 1.5% |
| Vale S.A. (Brazil) | | 214,972 | 3,654,213 |
| Lodging – 0.0%(g) |
| InterContinental Hotels Group PLC (United Kingdom) | | 1,529 | 97,611 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Media – 0.0%(g) |
| Informa PLC (United Kingdom)* | | 12,857 | $ 91,206 |
| Mining – 1.8% |
| Anglo American PLC (South Africa) | | 4,900 | 217,026 |
| Cameco Corp. (Canada) | | 390 | 10,070 |
| Glencore PLC (Australia)* | | 33,990 | 209,435 |
| Rio Tinto Ltd. (Australia) | | 46,186 | 3,653,492 |
| Rio Tinto PLC (Australia) | | 5,765 | 407,333 |
| | | | 4,497,356 |
| Miscellaneous Manufacturing – 0.0%(g) |
| Smiths Group PLC (United Kingdom) | | 5,112 | 93,546 |
| Oil & Gas – 4.4% |
| BP PLC (United Kingdom) | | 133,840 | 646,152 |
| Canadian Natural Resources Ltd. (Canada) | | 1,620 | 100,265 |
| Cenovus Energy, Inc. (Canada) | | 2,465 | 45,572 |
| Chevron Corp. | | 237 | 37,131 |
| China Petroleum & Chemical Corp., Class H (China) | | 104,000 | 50,905 |
| Ecopetrol S.A. ADR (Colombia)(e) | | 1,144 | 18,567 |
| Eni S.p.A. (Italy) | | 6,108 | 85,382 |
| Equinor ASA (Norway) | | 1,902 | 64,287 |
| Exxon Mobil Corp. | | 1,397 | 119,094 |
| Galp Energia SGPS S.A. (Portugal) | | 1,691 | 20,582 |
| Gazprom PJSC ADR (Russia)(h) | | 16,890 | 0 |
| Imperial Oil Ltd. (Canada) | | 444 | 22,355 |
| Inpex Corp. (Japan) | | 1,300 | 15,468 |
| LUKOIL PJSC ADR (Russia)(h) | | 1,232 | 0 |
| Neste OYJ (Finland) | | 1,403 | 60,201 |
| OMV A.G. (Austria) | | 553 | 28,268 |
| Petroleo Brasileiro S.A. (Brazil) | | 640,650 | 4,360,455 |
| Petroleo Brasileiro S.A. ADR (Brazil) | | 7,673 | 104,123 |
| Repsol S.A. (Spain) | | 3,422 | 51,049 |
| Rosneft Oil Co. PJSC GDR (Russia)(f)(h) | | 17,410 | 0 |
| Santos Ltd. (Australia) | | 3,273 | 18,290 |
| Shell PLC (Netherlands) | | 45,918 | 1,232,710 |
| Suncor Energy, Inc. (Canada) | | 2,443 | 87,820 |
| TotalEnergies S.E. (France) | | 5,906 | 290,002 |
| | | Number
of Shares | Value |
| Oil & Gas (Continued) |
| TotalEnergies S.E. ADR (France) | | 69,405 | $ 3,380,717 |
| Woodside Petroleum Ltd. (Australia) | | 1,740 | 37,856 |
| | | | 10,877,251 |
| Pharmaceuticals – 4.9% |
| AstraZeneca PLC (United Kingdom) | | 5,662 | 755,544 |
| GlaxoSmithKline PLC | | 22,503 | 507,276 |
| Merck & Co., Inc. | | 41,820 | 3,709,016 |
| Novartis A.G. ADR (Switzerland) | | 50,930 | 4,483,368 |
| Sanofi ADR (France) | | 51,520 | 2,691,920 |
| | | | 12,147,124 |
| Pipelines – 1.5% |
| Antero Midstream Corp. | | 10,091 | 103,635 |
| Cheniere Energy, Inc. | | 4,720 | 641,023 |
| Enbridge, Inc. (Canada) | | 15,238 | 664,961 |
| Equitrans Midstream Corp. | | 18,140 | 142,580 |
| Kinder Morgan, Inc. | | 29,462 | 534,735 |
| ONEOK, Inc. | | 3,867 | 244,897 |
| Pembina Pipeline Corp. (Canada) | | 4,279 | 161,914 |
| Targa Resources Corp. | | 1,400 | 102,774 |
| TC Energy Corp. (Canada) | | 9,461 | 500,428 |
| Williams (The) Cos., Inc. | | 13,979 | 479,340 |
| | | | 3,576,287 |
| Real Estate Investment Trusts – 3.2% |
| PLA Administradora Industrial S. de R.L. de C.V. (Mexico) | | 2,588,313 | 3,441,106 |
| PowerGrid Infrastructure Investment Trust (India)(b) | | 2,371,000 | 4,326,146 |
| | | | 7,767,252 |
| Retail – 0.0%(g) |
| Kingfisher PLC (United Kingdom) | | 24,869 | 78,426 |
| Semiconductors – 0.3% |
| MediaTek, Inc. (Taiwan) | | 30,000 | 827,040 |
| Telecommunications – 4.5% |
| BCE, Inc. (Canada)(e) | | 66,385 | 3,529,691 |
| BT Group PLC (United Kingdom) | | 40,036 | 88,783 |
| Cisco Systems, Inc. | | 63,750 | 3,122,475 |
| Softbank Corp. (Japan) | | 350,385 | 4,077,733 |
| Vodafone Group PLC (United Kingdom) | | 135,455 | 205,073 |
| | | | 11,023,755 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Transportation – 0.0%(g) |
| Poste Italiane S.p.A. (Italy)(b) | | 4,255 | $ 41,695 |
| Water – 0.0%(g) |
| Severn Trent PLC (United Kingdom) | | 2,802 | 110,123 |
Total Common Stocks
(Cost $114,001,801) | 113,877,102 |
| | | Par (a) | |
| Corporate Bonds – 12.1% |
| Advertising – 0.1% |
| Clear Channel Outdoor Holdings, Inc., 7.50%, 6/01/29(b) | | $250,000 | 235,925 |
| Aerospace/Defense – 0.5% |
| Boeing (The) Co., | | | |
| 2.20%, 2/04/26 | | 50,000 | 45,604 |
| 3.25%, 2/01/35 | | 280,000 | 224,249 |
| 5.81%, 5/01/50 | | 100,000 | 100,006 |
| 5.93%, 5/01/60 | | 140,000 | 138,620 |
|
| TransDigm, Inc., 8.00%, 12/15/25(b) | | 480,000 | 499,594 |
| Triumph Group, Inc., 7.75%, 8/15/25 | | 260,000 | 252,850 |
| | | | 1,260,923 |
| Agriculture – 0.0%(g) |
| Altria Group, Inc., 5.95%, 2/14/49 | | 80,000 | 78,120 |
| Airlines – 0.5% |
| American Airlines, Inc., 11.75%, 7/15/25(b) | | 130,000 | 149,500 |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.75%, 4/20/29(b) | | 200,000 | 192,715 |
| Delta Air Lines, Inc., 7.00%, 5/01/25(b) | | 70,000 | 74,928 |
| Delta Air Lines, Inc./SkyMiles IP Ltd., 4.75%, 10/20/28(b) | | 380,000 | 375,568 |
| Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd., 5.75%, 1/20/26(b) | | 150,000 | 146,272 |
| | | Par (a) | Value |
| Airlines (Continued) |
| Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 6/20/27(b) | | $220,000 | $ 224,396 |
| Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.00%, 9/20/25(b) | | 130,000 | 137,281 |
| United Airlines Pass Through Trust, Series 2020-1, Class B, 4.88%, 1/15/26 | | 49,800 | 47,995 |
| | | | 1,348,655 |
| Auto Manufacturers – 0.8% |
| Ford Motor Co., 3.25%, 2/12/32 | | 280,000 | 227,556 |
| Ford Motor Credit Co. LLC, | | | |
| 4.95%, 5/28/27 | | 200,000 | 194,782 |
| 2.90%, 2/16/28 | | 200,000 | 171,500 |
| 5.11%, 5/03/29 | | 200,000 | 189,500 |
| 4.00%, 11/13/30 | | 600,000 | 519,000 |
|
| General Motors Co., 6.13%, 10/01/25 | | 80,000 | 84,448 |
| PM General Purchaser LLC, 9.50%, 10/01/28(b) | | 480,000 | 463,200 |
| | | | 1,849,986 |
| Auto Parts & Equipment – 0.1% |
| Clarios Global L.P./Clarios U.S. Finance Co., 8.50%, 5/15/27(b) | | 250,000 | 249,845 |
| Banks – 0.1% |
| JPMorgan Chase & Co., (SOFR + 1.56%), 4.32%, 4/26/28(i) | | 180,000 | 179,196 |
| Wells Fargo & Co., (SOFR + 4.50%), 5.01%, 4/04/51(i) | | 80,000 | 83,202 |
| | | | 262,398 |
| Building Materials – 0.1% |
| Builders FirstSource, Inc., 4.25%, 2/01/32(b) | | 160,000 | 136,600 |
| SRM Escrow Issuer LLC, 6.00%, 11/01/28(b) | | 160,000 | 153,600 |
| | | | 290,200 |
| Commercial Services – 0.7% |
| Adtalem Global Education, Inc., 5.50%, 3/01/28(b)(e) | | 63,000 | 57,842 |
| Allied Universal Holdco LLC/Allied Universal Finance Corp., | | | |
| 6.62%, 7/15/26(b) | | 100,000 | 96,644 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Commercial Services (Continued) |
| Allied Universal Holdco LLC/Allied Universal Finance Corp., | | | |
| 6.00%, 6/01/29(b) | | $200,000 | $ 165,500 |
|
| Carriage Services, Inc., 4.25%, 5/15/29(b) | | 140,000 | 121,800 |
| CoreCivic, Inc., 8.25%, 4/15/26 | | 430,000 | 441,704 |
| Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer, Inc., 5.00%, 2/01/26(b) | | 160,000 | 150,152 |
| Paysafe Finance PLC/Paysafe Holdings U.S. Corp., 4.00%, 6/15/29(b)(e) | | 120,000 | 97,800 |
| Rent-A-Center, Inc., 6.37%, 2/15/29(b)(e) | | 170,000 | 146,649 |
| United Rentals North America, Inc., 3.88%, 2/15/31 | | 470,000 | 414,446 |
| ZipRecruiter, Inc., 5.00%, 1/15/30(b)(e) | | 60,000 | 56,100 |
| | | | 1,748,637 |
| Computers – 0.1% |
| NCR Corp., 5.13%, 4/15/29(b) | | 180,000 | 171,450 |
| Distribution/Wholesale – 0.1% |
| H&E Equipment Services, Inc., 3.88%, 12/15/28(b) | | 150,000 | 130,657 |
| Diversified Financial Services – 0.4% |
| Aviation Capital Group LLC, 5.50%, 12/15/24(b) | | 80,000 | 81,199 |
| Burford Capital Global Finance LLC, 6.87%, 4/15/30(b) | | 200,000 | 194,850 |
| Coinbase Global, Inc., 3.63%, 10/01/31(b) | | 140,000 | 103,422 |
| Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/29(b) | | 180,000 | 166,684 |
| LD Holdings Group LLC, 6.12%, 4/01/28(b) | | 130,000 | 98,150 |
| Midcap Financial Issuer Trust, 6.50%, 5/01/28(b) | | 200,000 | 172,500 |
| Navient Corp., 5.63%, 8/01/33 | | 50,000 | 39,500 |
| Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., 4.00%, 10/15/33(b) | | 90,000 | 72,103 |
| | | | 928,408 |
| | | Par (a) | Value |
| Electric – 0.0%(g) |
| NRG Energy, Inc., 3.63%, 2/15/31(b) | | $ 10,000 | $ 8,325 |
| Energy - Alternate Sources – 0.2% |
| Sunnova Energy Corp., 5.88%, 9/01/26(b)(e) | | 410,000 | 375,150 |
| Entertainment – 0.2% |
| AMC Entertainment Holdings, Inc., 10.00%, 6/15/26(b) | | 170,000 | 142,387 |
| Boyne USA, Inc., 4.75%, 5/15/29(b) | | 360,000 | 333,900 |
| | | | 476,287 |
| Environmental Control – 0.1% |
| Madison IAQ LLC, 5.88%, 6/30/29(b) | | 193,000 | 157,295 |
| Food – 0.1% |
| Kraft Heinz Foods Co., 4.38%, 6/01/46 | | 160,000 | 140,182 |
| Simmons Foods, Inc., 4.62%, 3/01/29(b) | | 150,000 | 135,355 |
| | | | 275,537 |
| Food Service – 0.0%(g) |
| TKC Holdings, Inc., 10.50%, 5/15/29(b) | | 70,000 | 67,375 |
| Healthcare - Products – 0.1% |
| Mozart Debt Merger Sub, Inc., 3.88%, 4/01/29(b) | | 220,000 | 192,227 |
| Healthcare - Services – 0.4% |
| Akumin Escrow, Inc., 7.50%, 8/01/28(b) | | 150,000 | 119,063 |
| Centene Corp., 4.25%, 12/15/27 | | 80,000 | 77,600 |
| CHS/Community Health Systems, Inc., 6.13%, 4/01/30(b)(e) | | 400,000 | 329,000 |
| Radiology Partners, Inc., 9.25%, 2/01/28(b) | | 200,000 | 190,000 |
| RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., 9.75%, 12/01/26(b) | | 150,000 | 154,135 |
| US Renal Care, Inc., 10.62%, 7/15/27(b) | | 150,000 | 129,375 |
| | | | 999,173 |
| Home Builders – 0.0%(g) |
| MDC Holdings, Inc., 6.00%, 1/15/43 | | 50,000 | 46,963 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Insurance – 0.2% |
| Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc., 7.62%, 10/15/25(b)(j) | | $400,000 | $ 406,000 |
| NMI Holdings, Inc., 7.38%, 6/01/25(b) | | 150,000 | 156,375 |
| | | | 562,375 |
| Internet – 0.1% |
| Photo Holdings Merger Sub, Inc., 8.50%, 10/01/26(b) | | 130,000 | 120,250 |
| Leisure Time – 0.6% |
| Carnival Corp., 9.87%, 8/01/27(b) | | 710,000 | 765,199 |
| Carnival PLC, 7.87%, 6/01/27 | | 410,000 | 444,115 |
| NCL Corp. Ltd., 5.88%, 2/15/27(b) | | 220,000 | 209,713 |
| Royal Caribbean Cruises Ltd., 9.13%, 6/15/23(b) | | 130,000 | 134,204 |
| VOC Escrow Ltd., 5.00%, 2/15/28(b) | | 20,000 | 18,050 |
| | | | 1,571,281 |
| Lodging – 0.0%(g) |
| Full House Resorts, Inc., 8.25%, 2/15/28(b) | | 40,000 | 39,608 |
| Las Vegas Sands Corp., 3.50%, 8/18/26 | | 80,000 | 72,898 |
| | | | 112,506 |
| Machinery - Construction & Mining – 0.1% |
| Vertiv Group Corp., 4.13%, 11/15/28(b) | | 350,000 | 304,938 |
| Machinery - Diversified – 0.1% |
| Granite U.S. Holdings Corp., 11.00%, 10/01/27(b) | | 240,000 | 247,800 |
| Media – 0.9% |
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.50%, 5/01/32 | | 370,000 | 311,227 |
| Charter Communications Operating LLC/Charter Communications Operating Capital, 5.13%, 7/01/49 | | 70,000 | 60,111 |
| CSC Holdings LLC, | | | |
| 6.50%, 2/01/29(b) | | 400,000 | 380,000 |
| 5.75%, 1/15/30(b) | | 200,000 | 166,000 |
| 4.50%, 11/15/31(b) | | 200,000 | 164,274 |
| | | Par (a) | Value |
| Media (Continued) |
|
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 8/15/27(b) | | $270,000 | $ 254,138 |
| DISH DBS Corp., | | | |
| 5.75%, 12/01/28(b) | | 150,000 | 134,172 |
| 5.12%, 6/01/29 | | 240,000 | 187,466 |
|
| Gannett Holdings LLC, 6.00%, 11/01/26(b) | | 170,000 | 154,700 |
| Liberty Interactive LLC, 8.25%, 2/01/30 | | 120,000 | 105,960 |
| Time Warner Cable LLC, 6.75%, 6/15/39 | | 90,000 | 96,005 |
| Univision Communications, Inc., 9.50%, 5/01/25(b) | | 120,000 | 125,080 |
| | | | 2,139,133 |
| Metal Fabricate/Hardware – 0.1% |
| Park-Ohio Industries, Inc., 6.63%, 4/15/27(e) | | 430,000 | 322,500 |
| Mining – 0.0%(g) |
| Freeport-McMoRan, Inc., 5.45%, 3/15/43 | | 60,000 | 59,974 |
| Oil & Gas – 2.1% |
| Berry Petroleum Co. LLC, 7.00%, 2/15/26(b) | | 550,000 | 533,500 |
| Colgate Energy Partners III LLC, 5.88%, 7/01/29(b) | | 420,000 | 417,900 |
| Continental Resources, Inc., 5.75%, 1/15/31(b) | | 170,000 | 173,798 |
| Devon Energy Corp., 5.00%, 6/15/45 | | 170,000 | 165,491 |
| Diamondback Energy, Inc., 3.13%, 3/24/31 | | 250,000 | 223,093 |
| Endeavor Energy Resources L.P./EER Finance, Inc., 5.75%, 1/30/28(b) | | 160,000 | 160,413 |
| EQT Corp., 7.50%, 2/01/30 | | 150,000 | 166,138 |
| Hilcorp Energy I L.P./Hilcorp Finance Co., 6.25%, 4/15/32(b) | | 120,000 | 116,917 |
| Northern Oil and Gas, Inc., 8.13%, 3/01/28(b) | | 220,000 | 218,900 |
| Oasis Petroleum, Inc., 6.37%, 6/01/26(b) | | 260,000 | 261,264 |
| Occidental Petroleum Corp., | | | |
| 7.20%, 3/15/29 | | 60,000 | 64,800 |
| 6.62%, 9/01/30 | | 420,000 | 455,175 |
| 4.50%, 7/15/44 | | 70,000 | 60,200 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Oil & Gas (Continued) |
|
| Penn Virginia Holdings LLC, 9.25%, 8/15/26(b) | | $260,000 | $ 266,500 |
| Range Resources Corp., | | | |
| 8.25%, 1/15/29 | | 420,000 | 450,324 |
| 4.75%, 2/15/30(b)(e) | | 200,000 | 190,773 |
| Southwestern Energy Co., | | | |
| 7.75%, 10/01/27 | | 675,000 | 704,389 |
| 8.38%, 9/15/28 | | 60,000 | 64,875 |
| 4.75%, 2/01/32 | | 150,000 | 141,845 |
|
| Viper Energy Partners L.P., 5.38%, 11/01/27(b) | | 250,000 | 248,920 |
| | | | 5,085,215 |
| Packaging & Containers – 0.0%(g) |
| Pactiv LLC, 8.38%, 4/15/27 | | 50,000 | 49,368 |
| Pharmaceuticals – 0.5% |
| AdaptHealth LLC, 4.63%, 8/01/29(b) | | 220,000 | 186,450 |
| Bausch Health Americas, Inc., 8.50%, 1/31/27(b) | | 20,000 | 18,926 |
| Bausch Health Cos., Inc., | | | |
| 5.50%, 11/01/25(b) | | 40,000 | 38,700 |
| 6.12%, 2/01/27(b) | | 90,000 | 86,410 |
|
| Endo Dac/Endo Finance LLC/Endo Finco, Inc., 9.50%, 7/31/27(b)(e) | | 150,000 | 118,362 |
| Endo Luxembourg Finance Co. I S.a.r.l./Endo U.S., Inc., 6.12%, 4/01/29(b) | | 430,000 | 374,100 |
| Option Care Health, Inc., 4.38%, 10/31/29(b) | | 360,000 | 323,629 |
| | | | 1,146,577 |
| Pipelines – 1.3% |
| Blue Racer Midstream LLC/Blue Racer Finance Corp., 7.62%, 12/15/25(b) | | 220,000 | 226,600 |
| DCP Midstream L.P., (3M USD LIBOR + 5.15%), 7.37%, 12/15/22(i)(k) | | 200,000 | 190,000 |
| DCP Midstream Operating L.P., 6.75%, 9/15/37(b) | | 200,000 | 224,602 |
| Energy Transfer L.P., | | | |
| 5.50%, 6/01/27 | | 40,000 | 41,409 |
| (5Y US Treasury CMT + 5.31%), 7.12%, 5/15/30(i)(k) | | 70,000 | 66,052 |
| 5.35%, 5/15/45 | | 90,000 | 82,426 |
| Enterprise Products Operating LLC, | | | |
| 3.70%, 1/31/51 | | 50,000 | 40,517 |
| | | Par (a) | Value |
| Pipelines (Continued) |
| Enterprise Products Operating LLC, | | | |
| 3.95%, 1/31/60 | | $ 30,000 | $ 24,310 |
|
| EQM Midstream Partners L.P., 4.75%, 1/15/31(b) | | 150,000 | 133,740 |
| Genesis Energy L.P./Genesis Energy Finance Corp., 5.63%, 6/15/24 | | 120,000 | 117,300 |
| Howard Midstream Energy Partners LLC, 6.75%, 1/15/27(b) | | 130,000 | 125,952 |
| Plains All American Pipeline L.P., (3M USD LIBOR + 4.11%), 6.12%, 11/15/22(i)(k) | | 60,000 | 49,950 |
| Rockies Express Pipeline LLC, 7.50%, 7/15/38(b) | | 100,000 | 98,700 |
| Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 8.50%, 10/15/26(b) | | 120,000 | 112,036 |
| Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 6.00%, 12/31/30(b) | | 80,000 | 74,000 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., 4.88%, 2/01/31 | | 250,000 | 240,313 |
| Transcontinental Gas Pipe Line Co. LLC, 4.60%, 3/15/48 | | 100,000 | 94,335 |
| Venture Global Calcasieu Pass LLC, | | | |
| 4.13%, 8/15/31(b) | | 210,000 | 190,575 |
| 3.88%, 11/01/33(b) | | 370,000 | 321,918 |
| Western Midstream Operating L.P., | | | |
| 5.45%, 4/01/44 | | 340,000 | 310,250 |
| 5.30%, 3/01/48 | | 410,000 | 355,675 |
|
| Williams (The) Cos., Inc., 8.75%, 3/15/32 | | 30,000 | 38,818 |
| | | | 3,159,478 |
| Real Estate – 0.2% |
| Five Point Operating Co. L.P./Five Point Capital Corp., 7.87%, 11/15/25(b) | | 270,000 | 267,883 |
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/29(b)(e) | | 210,000 | 176,037 |
| | | | 443,920 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Real Estate Investment Trusts – 0.2% |
| Apollo Commercial Real Estate Finance, Inc., 4.62%, 6/15/29(b) | | $140,000 | $ 121,800 |
| Diversified Healthcare Trust, | | | |
| 9.75%, 6/15/25 | | 150,000 | 157,125 |
| 4.75%, 2/15/28 | | 40,000 | 34,090 |
|
| Service Properties Trust, 5.50%, 12/15/27 | | 150,000 | 136,500 |
| | | | 449,515 |
| Retail – 0.5% |
| Bath & Body Works, Inc., | | | |
| 5.25%, 2/01/28 | | 150,000 | 144,000 |
| 6.63%, 10/01/30(b) | | 70,000 | 69,622 |
|
| Bed Bath & Beyond, Inc., 5.17%, 8/01/44 | | 230,000 | 127,263 |
| Carrols Restaurant Group, Inc., 5.87%, 7/01/29(b) | | 70,000 | 53,025 |
| Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc., | | | |
| 4.63%, 1/15/29(b) | | 40,000 | 36,290 |
| 6.75%, 1/15/30(b)(e) | | 40,000 | 34,605 |
|
| FirstCash, Inc., 5.63%, 1/01/30(b) | | 180,000 | 167,400 |
| Guitar Center, Inc., 8.50%, 1/15/26(b) | | 340,000 | 340,748 |
| Macy's Retail Holdings LLC, | | | |
| 5.87%, 3/15/30(b)(e) | | 60,000 | 56,301 |
| 6.12%, 3/15/32(b) | | 50,000 | 46,250 |
|
| Michaels (The) Cos., Inc., 7.87%, 5/01/29(b)(e) | | 170,000 | 133,875 |
| Party City Holdings, Inc., 8.75%, 2/15/26(b)(e) | | 120,000 | 110,250 |
| | | | 1,319,629 |
| Software – 0.3% |
| Clarivate Science Holdings Corp., 4.87%, 7/01/29(b)(e) | | 80,000 | 70,502 |
| Minerva Merger Sub, Inc., 6.50%, 2/15/30(b) | | 270,000 | 248,519 |
| Rackspace Technology Global, Inc., 3.50%, 2/15/28(b)(e) | | 70,000 | 60,541 |
| Rocket Software, Inc., 6.50%, 2/15/29(b) | | 150,000 | 128,437 |
| | | Par (a) | Value |
| Software (Continued) |
| Ziff Davis, Inc., 4.63%, 10/15/30(b) | | $210,000 | $ 187,255 |
| ZoomInfo Technologies LLC/ZoomInfo Finance Corp., 3.88%, 2/01/29(b) | | 70,000 | 61,949 |
| | | | 757,203 |
| Telecommunications – 0.3% |
| CommScope, Inc., | | | |
| 8.25%, 3/01/27(b) | | 40,000 | 34,000 |
| 4.75%, 9/01/29(b) | | 170,000 | 142,135 |
|
| LogMeIn, Inc., 5.50%, 9/01/27(b) | | 100,000 | 87,500 |
| Switch Ltd., 4.12%, 6/15/29(b) | | 70,000 | 66,850 |
| T-Mobile USA, Inc., 3.50%, 4/15/31 | | 270,000 | 239,309 |
| Verizon Communications, Inc., | | | |
| 3.40%, 3/22/41 | | 110,000 | 92,473 |
| 3.55%, 3/22/51 | | 50,000 | 41,061 |
| 3.70%, 3/22/61 | | 80,000 | 64,315 |
|
| Viavi Solutions, Inc., 3.75%, 10/01/29(b) | | 60,000 | 53,984 |
| | | | 821,627 |
| Transportation – 0.0%(g) |
| Carriage Purchaser, Inc., 7.88%, 10/15/29(b) | | 70,000 | 61,316 |
Total Corporate Bonds
(Cost $31,830,019) | 29,888,141 |
|
| Foreign Issuer Bonds – 6.8% |
| Angola – 0.1% |
| Angolan Government International Bond, 8.75%, 4/14/32(b) | | 210,000 | 198,607 |
| Argentina – 0.4% |
| Provincia de Buenos Aires, (Step to 5.25% on 9/1/22), 3.90%, 9/01/37(b)(l) | | 600,000 | 250,125 |
| Provincia de Cordoba, (Step to 6.99% on 6/1/22), 5.00%, 6/01/27(b)(l) | | 200,000 | 141,600 |
| Transportadora de Gas del Sur S.A., 6.75%, 5/02/25(b) | | 200,000 | 188,061 |
| YPF S.A., 8.50%, 7/28/25(b) | | 400,000 | 326,000 |
| | | | 905,786 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Brazil – 0.7% |
| B3 SA - Brasil Bolsa Balcao, 4.12%, 9/20/31(b) | | $250,000 | $ 217,312 |
| Braskem Netherlands Finance B.V., 4.50%, 1/10/28(b) | | 270,000 | 254,289 |
| MercadoLibre, Inc., 3.13%, 1/14/31 | | 270,000 | 218,362 |
| Petrobras Global Finance B.V., | | | |
| 5.30%, 1/27/25 | | 150,000 | 155,213 |
| 6.85%, 6/05/15 | | 310,000 | 273,163 |
|
| Suzano Austria GmbH, 3.13%, 1/15/32 | | 500,000 | 403,750 |
| Vale Overseas Ltd., 6.25%, 8/10/26 | | 250,000 | 262,875 |
| | | | 1,784,964 |
| Canada – 0.4% |
| Air Canada, 3.88%, 8/15/26(b) | | 90,000 | 83,221 |
| Hudbay Minerals, Inc., 6.13%, 4/01/29(b)(e) | | 90,000 | 85,164 |
| MEG Energy Corp., 7.12%, 2/01/27(b) | | 200,000 | 203,100 |
| Ritchie Bros Holdings, Inc., 4.75%, 12/15/31(b) | | 180,000 | 180,000 |
| Superior Plus L.P./Superior General Partner, Inc., 4.50%, 3/15/29(b) | | 50,000 | 45,687 |
| TransAlta Corp., 6.50%, 3/15/40 | | 430,000 | 430,527 |
| | | | 1,027,699 |
| Chile – 0.1% |
| VTR Comunicaciones S.p.A., 5.13%, 1/15/28(b) | | 200,000 | 179,800 |
| China – 0.2% |
| Global Aircraft Leasing Co. Ltd., (100% Cash), 6.50%, 9/15/24(b)(j) | | 250,000 | 215,620 |
| Prosperous Ray Ltd., 4.63%, 11/12/23 | | 200,000 | 204,116 |
| Prosus N.V., 3.06%, 7/13/31(b) | | 270,000 | 213,072 |
| | | | 632,808 |
| Colombia – 0.1% |
| Millicom International Cellular S.A., 4.50%, 4/27/31(b)(e) | | 250,000 | 216,381 |
| Dominican Republic – 0.1% |
| Dominican Republic International Bond, 6.00%, 2/22/33(b) | | 300,000 | 272,140 |
| | | Par (a) | Value |
| France – 0.1% |
| Altice France S.A., | | | |
| 5.12%, 7/15/29(b) | | $ 200,000 | $ 169,312 |
| 5.50%, 10/15/29(b) | | 200,000 | 170,000 |
| | | | 339,312 |
| Gabon – 0.1% |
| Gabon Government International Bond, 7.00%, 11/24/31(b) | | 200,000 | 181,130 |
| Ghana – 0.0%(g) |
| Ghana Government International Bond, 8.13%, 3/26/32(b) | | 250,000 | 152,925 |
| Hong Kong – 0.1% |
| Melco Resorts Finance Ltd., 5.38%, 12/04/29(b) | | 200,000 | 160,042 |
| Indonesia – 1.2% |
| Indonesia Government International Bond, | | | |
| 3.50%, 1/11/28 | | 400,000 | 391,561 |
| 5.25%, 1/17/42 | | 500,000 | 503,350 |
|
| Indonesia Treasury Bond, 6.50%, 2/15/31 | IDR | 31,834,000,000 | 2,119,639 |
| | | | 3,014,550 |
| Ireland – 0.1% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.30%, 1/30/32 | | 300,000 | 249,609 |
| Avolon Holdings Funding Ltd., | | | |
| 5.12%, 10/01/23(b) | | 60,000 | 60,679 |
| 4.25%, 4/15/26(b) | | 60,000 | 57,534 |
| | | | 367,822 |
| Israel – 0.2% |
| Teva Pharmaceutical Finance Co. LLC, 6.15%, 2/01/36(e) | | 350,000 | 330,708 |
| Teva Pharmaceutical Finance Netherlands III B.V., 4.75%, 5/09/27 | | 200,000 | 183,000 |
| | | | 513,708 |
| Italy – 0.1% |
| UniCredit S.p.A., (5Y US Treasury CMT + 4.75%), 5.46%, 6/30/35(b)(i) | | 210,000 | 189,481 |
| Ivory Coast – 0.1% |
| Ivory Coast Government International Bond, 5.75%, 12/31/32 | | 164,236 | 156,872 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Kazakhstan – 0.3% |
| Kazakhstan Government International Bond, 5.12%, 7/21/25 | | $220,000 | $230,102 |
| KazMunayGas National Co. JSC, 4.75%, 4/19/27(b) | | 250,000 | 236,875 |
| KazTransGas JSC, 4.38%, 9/26/27(b) | | 200,000 | 183,200 |
| | | | 650,177 |
| Kuwait – 0.1% |
| MEGlobal Canada ULC, 5.88%, 5/18/30(b) | | 210,000 | 227,316 |
| Luxembourg – 0.2% |
| Altice France Holding S.A., 10.50%, 5/15/27(b) | | 200,000 | 202,750 |
| ARD Finance S.A., (100% Cash), 6.50%, 6/30/27(b)(j) | | 200,000 | 168,000 |
| FAGE International S.A./FAGE USA Dairy Industry, Inc., 5.62%, 8/15/26(b) | | 200,000 | 186,182 |
| | | | 556,932 |
| Macau – 0.2% |
| Sands China Ltd., 3.10%, 3/08/29(b) | | 450,000 | 364,824 |
| Wynn Macau Ltd., 5.62%, 8/26/28(b) | | 240,000 | 191,400 |
| | | | 556,224 |
| Mexico – 0.4% |
| Banco Mercantil del Norte S.A., | | | |
| (10Y US Treasury CMT + 5.35%), 7.62%, 1/10/28(b)(i)(k) | | 230,000 | 227,700 |
| (10Y US Treasury CMT + 5.47%), 7.50%, 6/27/29(b)(i)(k) | | 250,000 | 239,637 |
|
| Mexico Government International Bond, 4.75%, 3/08/44 | | 500,000 | 436,850 |
| | | | 904,187 |
| Panama – 0.1% |
| Panama Government International Bond, 4.50%, 4/01/56 | | 200,000 | 170,075 |
| Peru – 0.2% |
| Peruvian Government International Bond, 2.78%, 1/23/31 | | 240,000 | 207,929 |
| | | Par (a) | Value |
| Peru (Continued) |
| Petroleos del Peru S.A., 5.63%, 6/19/47(b) | | $250,000 | $ 181,625 |
| Volcan Cia Minera S.A.A., 4.38%, 2/11/26(b) | | 260,000 | 232,700 |
| | | | 622,254 |
| Qatar – 0.2% |
| Qatar Government International Bond, 4.82%, 3/14/49(b) | | 400,000 | 429,532 |
| South Africa – 0.1% |
| Sasol Financing U.S.A. LLC, 5.50%, 3/18/31 | | 250,000 | 225,000 |
| Switzerland – 0.1% |
| UBS Group A.G., (5Y USD Swap Rate + 4.34%), 7.00%, 1/31/24(b)(i)(k) | | 200,000 | 203,250 |
| VistaJet Malta Finance PLC/XO Management Holding, Inc., 6.37%, 2/01/30(b) | | 50,000 | 43,634 |
| | | | 246,884 |
| Turkey – 0.1% |
| Turk Telekomunikasyon AS, 6.88%, 2/28/25(b) | | 250,000 | 244,150 |
| United Arab Emirates – 0.1% |
| DP World Ltd., 5.63%, 9/25/48(b) | | 290,000 | 290,435 |
| United Kingdom – 0.2% |
| Mclaren Finance PLC, 7.50%, 8/01/26(b) | | 200,000 | 191,869 |
| Neptune Energy Bondco PLC, 6.62%, 5/15/25(b) | | 200,000 | 198,100 |
| Vmed O2 UK Financing I PLC, 4.75%, 7/15/31(b) | | 200,000 | 171,500 |
| | | | 561,469 |
| Zambia – 0.4% |
| First Quantum Minerals Ltd., | | | |
| 6.87%, 3/01/26(b) | | 490,000 | 491,225 |
| 6.88%, 10/15/27(b) | | 480,000 | 482,400 |
| | | | 973,625 |
Total Foreign Issuer Bonds
(Cost $18,042,610) | 16,952,287 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Master Limited Partnerships – 0.7% |
| Pipelines – 0.7% |
| Energy Transfer L.P. | | 36,253 | $ 401,683 |
| Enterprise Products Partners L.P. | | 27,973 | 724,780 |
| Magellan Midstream Partners L.P. | | 4,345 | 210,515 |
| MPLX L.P. | | 6,454 | 208,852 |
| Plains All American Pipeline L.P. | | 17,263 | 178,845 |
| | | | 1,724,675 |
Total Master Limited Partnerships
(Cost $1,670,713) | 1,724,675 |
| | | Par (a) | |
| Mortgage-Backed Securities – 2.6% |
| Commercial Mortgage-Backed Securities – 1.2% |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-VOLT, Class D, (1M USD LIBOR + 1.65%, 1.65% Floor), 2.20%, 9/15/36(b)(c) | | $270,000 | 261,453 |
| Series 2021-ACNT, Class A, (1M USD LIBOR + 0.85%, 0.85% Floor), 1.41%, 11/15/38(b)(c) | | 197,000 | 193,113 |
| Series 2022-AHP, Class A, (1M CME Term SOFR + 0.99%, 0.99% Floor), 1.50%, 1/17/39(b)(c) | | 212,000 | 208,784 |
| BX Trust, | | | |
| Series 2021-SDMF, Class F, (1M USD LIBOR + 1.94%, 1.94% Floor), 2.49%, 9/15/34(b)(c) | | 210,000 | 199,428 |
| Series 2021-ARIA, Class A, (1M USD LIBOR + 0.90%, 0.90% Floor), 1.45%, 10/15/36(b)(c) | | 270,000 | 263,239 |
|
| BXHPP Trust, Series 2021-FILM, Class C, (1M USD LIBOR + 1.10%, 1.10% Floor), 1.65%, 8/15/36(b)(c) | | $270,000 | 257,853 |
| Commercial Mortgage Trust, Series 2015-CR25, Class A4, 3.76%, 8/10/48 | | 260,000 | 259,621 |
| Extended Stay America Trust, | | | |
| Series 2021-ESH, Class A, (1M USD LIBOR + 1.08%, 1.08% Floor), 1.64%, 7/15/38(b)(c) | | 268,348 | 264,642 |
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| Extended Stay America Trust, | | | |
| Series 2021-ESH, Class C, (1M USD LIBOR + 1.70%, 1.70% Floor), 2.25%, 7/15/38(b)(c) | | 258,410 | $ 254,381 |
|
| J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2022-NLP, Class D, (1M CME Term SOFR + 2.17%, 2.17% Floor), 4/15/37(b)(c)(d) | | $210,000 | 201,740 |
| LAQ Mortgage Trust, Series 2022-LAQ, Class A, (1M CME Term SOFR + 1.72%, 1.72% Floor), 2.25%, 3/15/39(b)(c) | | 260,000 | 259,793 |
| MTN Commercial Mortgage Trust, | | | |
| Series 2022-LPFL, Class A, (1M CME Term SOFR + 1.40%, 1.40% Floor), 1.91%, 3/15/39(b)(c) | | 260,000 | 258,730 |
| Series 2022-LPFL, Class F, (1M CME Term SOFR + 5.29%, 5.29% Floor), 5.79%, 3/15/39(b)(c) | | 200,000 | 197,924 |
| | | | 3,080,701 |
| Whole Loan – 1.4% |
| BRAVO Residential Funding Trust, Series 2022-NQM1, Class A1, 3.62%, 9/25/61(b)(m) | | 240,151 | 234,677 |
| COLT Mortgage Loan Trust, Series 2022-3, Class A1, 3.90%, 2/25/67(b)(m) | | 256,001 | 252,191 |
| CSMC Trust, Series 2020-RPL4, Class A1, 2.00%, 1/25/60(b)(f) | | 252,988 | 240,718 |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2017-C07, Class 1M2, (1M USD LIBOR + 2.40%, 2.40% Floor), 3.07%, 5/25/30(c) | | 191,741 | 194,614 |
| Series 2018-C01, Class 1M2, (1M USD LIBOR + 2.25%, 2.25% Floor), 2.92%, 7/25/30(c) | | 221,735 | 223,813 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2021-DNA7, Class B1, (30D Average SOFR + 3.65%), 3.94%, 11/25/41(b)(c) | | 210,000 | $ 195,956 |
| Series 2020-DNA5, Class B1, (30D Average SOFR + 4.80%), 5.09%, 10/25/50(b)(c) | | 180,000 | 187,332 |
|
| Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA2, Class M1B, (30D Average SOFR + 2.40%), 2.69%, 2/25/42(b)(c) | | $210,000 | 205,669 |
| GS Mortgage-Backed Securities Trust, Series 2022-NQM1, Class A4, 4.00%, 5/25/62(b) | | 240,752 | 235,325 |
| New Residential Mortgage Loan Trust, | | | |
| Series 2018-RPL1, Class A1, 3.50%, 12/25/57(b) | | 531,859 | 529,474 |
| Series 2022-NQM2, Class A1, 3.08%, 3/27/62(b)(m) | | 256,251 | 249,994 |
|
| Residential Mortgage Loan Trust, Series 2020-2, Class A2, 2.51%, 5/25/60(b) | | 260,000 | 254,881 |
| Seasoned Credit Risk Transfer Trust, Series 2022-1, Class M, 4.50%, 11/25/61(b) | | 100,000 | 87,250 |
| SG Residential Mortgage Trust, Series 2022-1, Class A1, 3.17%, 3/27/62(b)(m) | | 257,682 | 249,746 |
| | | | 3,341,640 |
Total Mortgage-Backed Securities
(Cost $6,502,899) | 6,422,341 |
|
| Term Loans – 10.0% |
| Aerospace/Defense – 0.4% |
| Vertex Aerospace Services Corp., Initial Term Loan, (Floating, LIBOR USD 1M + 4.00%, 0.75% Floor), 4.77%, 12/06/28(c) | | 670,000 | 666,965 |
| | | Par (a) | Value |
| Aerospace/Defense (Continued) |
| WP CPP Holdings, LLC, Initial Term Loan, | | | |
| (Floating, LIBOR USD 3M + 3.75%, 1.00% Floor), 4.99%, 4/30/25(c) | | $338,321 | $318,698 |
| (Floating, LIBOR USD 3M + 3.75%, 1.00% Floor), 4.75%, 4/30/25(c) | | 840 | 791 |
| | | | 986,454 |
| Airlines – 0.4% |
| Air Canada, Term Loan, (Floating, LIBOR USD 3M + 3.50%, 0.75% Floor), 4.25%, 8/11/28(c) | | 460,000 | 454,825 |
| United AirLines, Inc., Class B Term Loan, (Floating, LIBOR USD 3M + 3.75%, 0.75% Floor), (3M USD LIBOR + 3.75%, 0.75% Floor), 4.50%, 4/21/28(c) | | 458,841 | 454,515 |
| | | | 909,340 |
| Auto Parts & Equipment – 0.2% |
| Clarios Global LP, Amendment No. 1 Dollar Term Loan, (Floating, LIBOR USD 1M + 3.25%), 4.01%, 4/30/26(c) | | 460,000 | 452,143 |
| Beverages – 0.2% |
| Triton Water Holdings, Inc., Initial Term Loan, (Floating, LIBOR USD 3M + 3.50%, 0.50% Floor), 4.51%, 3/31/28(c) | | 458,844 | 445,024 |
| Chemicals – 0.1% |
| Hexion Holdings Corporation, Initial Term Loan, (Floating, CME Term SOFR USD 1M + 4.50%, 0.50% Floor), 5.02%, 3/15/29(c) | | 230,000 | 221,566 |
| Commercial Services – 1.2% |
| Adtalem Global Education Inc., Term B Loan, (Floating, LIBOR USD 1M + 4.50%, 0.75% Floor), 5.25%, 8/12/28(c) | | 242,533 | 242,600 |
| Allied Universal Holdco LLC (f/k/a USAGM Holdco, LLC), Initial U.S. Dollar Term Loan, (Floating, LIBOR USD 1M + 3.75%, 0.50% Floor), 4.51%, 5/12/28(c) | | 199,499 | 194,116 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Commercial Services (Continued) |
| Amentum Government Services Holdings LLC, Tranche 1 Term Loan, (Floating, LIBOR USD 1M + 3.50%), 4.26%, 1/29/27(c) | | $458,832 | $ 455,533 |
| Garda World Security Corporation, Term B-2 Loan, (Floating, LIBOR USD 1M + 4.25%), 4.92%, 10/30/26(c) | | 360,000 | 356,040 |
| Mister Car Wash Holdings, Inc., Initial Term Loan, (Floating, LIBOR USD 1M + 3.00%), 3.76%, 5/14/26(c) | | 458,931 | 454,589 |
| PECF USS Intermediate Holding III Corporation, Initial Term Loan, (Floating, LIBOR USD 3M + 4.25%, 0.50% Floor), 4.76%, 12/15/28(c) | | 458,850 | 451,394 |
| Prime Security Services Borrower, LLC, 2021 Refinancing Term B-1 Loan, 9/23/26(n) | | 340,000 | 335,655 |
| Verscend Holding Corp., Term B-1 Loan, (Floating, LIBOR USD 1M + 4.00%), 4.77%, 8/27/25(c) | | 467,845 | 465,801 |
| | | | 2,955,728 |
| Computers – 0.5% |
| Magenta Buyer LLC, Initial Term Loan, | | | |
| (Floating, LIBOR USD 3M + 5.00%, 0.75% Floor), 6.23%, 7/27/28(c) | | 458,847 | 451,964 |
| (Floating, LIBOR USD 3M + 8.25%, 0.75% Floor), 9.48%, 7/27/29(c) | | 460,000 | 450,607 |
|
| UST Global Inc, Initial Term Loan, (Floating, LIBOR USD 1M + 3.75%, 0.50% Floor), 4.38%, 11/20/28(c) | | 458,850 | 451,013 |
| | | | 1,353,584 |
| Diversified Financial Services – 0.8% |
| CTC Holdings, L.P., Term Loan, (Floating, CME Term SOFR USD 3M + 5.00%, 0.38% Floor), 5.50%, 2/20/29(c) | | 460,000 | 453,100 |
| Greystone Select Financial LLC, Initial Term Loan, (Floating, LIBOR USD 3M + 5.00%, 0.75% Floor), 6.04%, 6/16/28(c) | | 458,572 | 453,986 |
| | | Par (a) | Value |
| Diversified Financial Services (Continued) |
| Hudson River Trading LLC, Term Loan, (Floating, CME Term SOFR USD 1M + 3.00%), 3.82%, 3/20/28(c) | | $458,841 | $ 452,340 |
| Jane Street Group, LLC, Dollar Term Loan, 1/26/28(n) | | 428,914 | 423,660 |
| VFH Parent LLC, Initial Term Loan, (Floating, CME Term SOFR USD 1M + 3.00%, 0.50% Floor), 3.50%, 1/13/29(c) | | 340,000 | 337,130 |
| | | | 2,120,216 |
| Engineering & Construction – 0.1% |
| Brown Group Holdings, LLC, Initial Term Loan, (Floating, LIBOR USD 3M + 2.50%, 0.50% Floor), 3.51%, 6/07/28(c) | | 309,168 | 304,376 |
| Entertainment – 0.4% |
| Allen Media, LLC, Initial Term Loan (2021), (Floating, CME Term SOFR USD 3M + 5.50%), 6.15%, 2/10/27(c) | | 458,829 | 454,127 |
| UFC Holdings, LLC, Term B-3 Loan, (Floating, LIBOR USD 3M + 2.75%, 0.75% Floor), 3.50%, 4/29/26(c) | | 458,745 | 451,648 |
| | | | 905,775 |
| Environmental Control – 0.2% |
| LRS Holdings, LLC, Initial Term Loan, (Floating, LIBOR USD 1M + 4.25%, 0.50% Floor), 5.01%, 8/31/28(c) | | 458,850 | 454,262 |
| Healthcare - Services – 1.2% |
| EyeCare Partners, LLC, Initial Term Loan, (Floating, LIBOR USD 3M + 6.75%, 0.50%Floor), 7.75%, 11/15/28(c) | | 380,000 | 375,410 |
| One Call Corporation, Term B Loan, (Floating, LIBOR USD 3M + 5.50%, 0.75% Floor), 6.69%, 4/22/27(c) | | 458,844 | 417,548 |
| PDS Holdco Inc., Delayed Draw Term Loan, 8/18/28(n) | | 32,407 | 32,205 |
| PDS Holdco Inc., Initial Term Loan, 8/18/28(n) | | 317,593 | 315,608 |
| Phoenix Guarantor Inc., Tranche B-1 Term Loan, 3/05/26(n) | | 109,541 | 107,584 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Healthcare - Services (Continued) |
| Phoenix Newco, Inc., Initial Term Loan, 11/15/28(n) | | $360,000 | $ 357,188 |
| Radiology Partners, Inc., Term B Loan, 7/09/25(n) | | 470,000 | 462,071 |
| U.S. Renal Care, Inc., Initial Term Loan, 6/26/26(n) | | 460,000 | 405,950 |
| WP CityMD Bidco LLC, Second Amendment Refinancing Term Loan, (Floating, LIBOR USD 3M + 3.25%, 0.50% Floor), 3.75%, 12/22/28(c) | | 400,000 | 395,584 |
| | | | 2,869,148 |
| Housewares – 0.1% |
| Hunter Douglas Holding B.V., Tranche B-1 Term Loan, (Floating, CME Term SOFR USD 3M + 3.50%, 0.50% Floor), 4.00%, 2/26/29(c) | | 350,000 | 332,588 |
| Insurance – 0.4% |
| Acrisure, LLC, 2021-2 Additional Term Loan, (Floating, LIBOR USD 1M + 4.25%, 0.50% Floor), 5.01%, 2/15/27(c) | | 339,150 | 336,325 |
| Asurion, LLC, New B-4 Term Loan, (Floating, LIBOR USD 1M + 5.25%), 6.02%, 1/20/29(c) | | 460,000 | 445,740 |
| Asurion, LLC, New B-9 Term Loan, 7/31/27(n) | | 339,144 | 331,089 |
| | | | 1,113,154 |
| Leisure Time – 0.7% |
| 19th Holdings Golf, LLC, Initial Term Loan, (Floating, CME Term SOFR USD 3M + 3.25%, 0.50% Floor), 3.75%, 2/07/29(c) | | 460,000 | 451,950 |
| Alterra Mountain Company, Series B-2 Term Loan, (Floating, LIBOR USD 1M + 3.50%, 0.50% Floor), 4.26%, 8/17/28(c) | | 458,847 | 455,121 |
| | | Par (a) | Value |
| Leisure Time (Continued) |
| ClubCorp Holdings, Inc., Term B Loan, (Floating, LIBOR USD 3M + 2.75%), 3.76%, 9/18/24(c) | | $458,799 | $ 445,480 |
| Hornblower Sub, LLC (American Queen Sub, LLC), 2020 Repriced Term B Loan, (Floating, LIBOR USD 3M + 4.50%, 1.00% Floor), 5.50%, 4/27/25(c) | | 398,961 | 358,068 |
| | | | 1,710,619 |
| Lodging – 0.2% |
| Playa Resorts Holding B.V., Initial Term Loan, 4/29/24(n) | | 458,767 | 451,440 |
| Machinery - Diversified – 0.1% |
| SPX Flow, Inc., Term Loan, (Floating, CME Term SOFR USD 1M + 4.50%, 0.50% Floor), 5.95%, 4/05/29(c) | | 280,000 | 272,563 |
| Media – 0.1% |
| DCert Buyer, Inc., First Amendment Refinancing Loan, (Floating, LIBOR USD 1M + 7.00%), 7.76%, 2/19/29(c) | | 340,000 | 335,893 |
| Pharmaceuticals – 0.2% |
| Gainwell Acquisition Corp., Term B Loan, (Floating, LIBOR USD 3M + 4.00%, 0.75% Floor), 5.01%, 10/01/27(c) | | 468,813 | 466,764 |
| Private Equity – 0.3% |
| Jump Financial, LLC, Term Loan, (Floating, CME Term SOFR USD 1M + 4.50%, 0.50% Floor), 5.20%, 8/07/28(c) | | 688,271 | 674,505 |
| Real Estate Investment Trusts – 0.2% |
| Apollo Commercial Real Estate Finance, Inc., Initial Term Loan, (Floating, LIBOR USD 1M + 2.75%), 3.51%, 5/15/26(c) | | 458,821 | 446,203 |
| Retail – 0.6% |
| Empire Today, LLC, Closing Date Term Loan, (Floating, LIBOR USD 3M + 5.00%, 0.75% Floor), 5.75%, 4/03/28(c) | | 458,844 | 425,348 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Retail (Continued) |
| Great Outdoors Group, LLC, Term B-2 Loan, (Floating, LIBOR USD 1M + 3.75%, 0.75% Floor), 4.51%, 3/05/28(c) | | $349,123 | $ 345,195 |
| Leslie's Poolmart, Inc., Initial Term Loan, (Floating, LIBOR USD 3M + 2.50%, 0.50% Floor), 3.02%, 3/09/28(c) | | 468,816 | 462,370 |
| Whatabrands LLC, Initial Term B Loan, 8/03/28(n) | | 379,050 | 374,570 |
| | | | 1,607,483 |
| Software – 1.0% |
| AppLovin Corporation, Amendment No. 6 New Term Loan, (Floating, LIBOR USD 1M + 3.00%, 0.50% Floor), 3.76%, 10/25/28(c) | | 340,000 | 337,522 |
| Athenahealth Group Inc., Initial DDTL, 1.75%, 2/15/29(o) | | 7,351 | 7,241 |
| Athenahealth Group Inc., Initial Term Loan, (Floating, CME Term SOFR USD 1M + 3.50%, 0.50% Floor), 4.01%, 2/15/29(c)(o) | | 43,374 | 42,723 |
| Cloudera, Inc., Initial Term Loan, | | | |
| (Floating, LIBOR USD 1M + 3.75%, 0.50% Floor), 4.51%, 10/08/28(c) | | 460,000 | 451,950 |
| (Floating, LIBOR USD 1M + 6.00%, 0.50% Floor), 6.77%, 10/08/29(c) | | 340,000 | 329,800 |
|
| DCert Buyer, Inc., Initial Term Loan, (Floating, LIBOR USD 1M + 4.00%), 4.77%, 10/16/26(c) | | 318,804 | 317,210 |
| Rackspace Technology Global, Inc., 2021 Term B Loan, 2/15/28(n) | | 458,841 | 447,563 |
| Virgin Pulse, Inc., Initial Term Loan, 5.02%, 4/06/28 | | 458,847 | 446,802 |
| | | | 2,380,811 |
| Telecommunications – 0.2% |
| Commscope, Inc., Initial Term Loan, (Floating, LIBOR USD 1M + 3.25%), 4.01%, 4/06/26(c) | | 438,875 | 421,429 |
| | | Par (a) | Value |
| Transportation – 0.2% |
| WWEX UNI TopCo Holdings, LLC, Initial Term Loan, (Floating, LIBOR USD 3M + 4.25%, 0.75% Floor), 5.26%, 7/26/28(c) | | $ 458,850 | $ 445,465 |
Total Term Loans
(Cost $24,918,896) | 24,636,533 |
|
| U.S. Government Obligations – 4.8% |
| U.S. Treasury Bonds – 1.8% |
| 2.38%, 2/15/42(e) | | 2,100,000 | 1,855,547 |
| 2.25%, 2/15/52 | | 3,000,000 | 2,575,781 |
| | | | 4,431,328 |
| U.S. Treasury Notes – 3.0% |
| 1.50%, 2/29/24(e) | | 5,310,000 | 5,199,444 |
| 2.25%, 3/31/24(e) | | 400,000 | 396,625 |
| 1.50%, 1/31/27 | | 1,900,000 | 1,778,356 |
| | | | 7,374,425 |
Total U.S. Government Obligations
(Cost $12,629,397) | 11,805,753 |
| | | Number
of Shares | |
| Investment Companies – 8.8% |
| Global X U.S. Preferred ETF(e) | | 225,214 | 4,893,900 |
| iShares STOXX Europe 600 Telecommunications UCITS ETF DE (Germany) | EUR | 189,556 | 4,363,392 |
| Vanguard Long-Term Treasury ETF(e) | | 170,640 | 12,436,243 |
Total Investment Companies
(Cost $25,565,500) | 21,693,535 |
|
| Short-Term Investments – 9.4% |
| Money Market Fund – 9.4% |
| Northern Institutional Funds - Liquid Assets Portfolio (Shares), 0.32%(p)(q) | | 6,245,546 | 6,245,546 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(p) | | 16,948,522 | 16,948,522 |
| | | | 23,194,068 |
Total Short-Term Investments
(Cost $23,194,068) | 23,194,068 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
Number of
Contracts | Notional
Amount | Value |
| Purchased Options – 0.0%(g) |
| Call Options - Exchange Traded – 0.0%(g) |
| 90-Day Euro Future, Strike Price USD 99.00, 12/18/23 | 2 | $ 483,050 | $ 562 |
| U.S. Treasury Long Bond Future, Strike Price USD 143.00, 05/20/22 | 12 | 1,688,250 | 12,938 |
| | | | 13,500 |
| Call Options - Over the Counter – 0.0%(g) |
| U.S. Dollar vs. Australian Dollar, Strike Price USD 0.75, 07/25/22, Counterparty: BNP Paribas | 1 | 1,445,624 | 3,950 |
| Put Options - Over the Counter – 0.0%(g) |
| Japanese Yen vs. U.S. Dollar, Strike Price JPY 116.00, 06/23/22, Counterparty: Morgan Stanley | 1 | 639,840 | 511 |
| Japanese Yen vs. U.S. Dollar, Strike Price JPY 113.00, 09/21/22, Counterparty: Morgan Stanley | 1 | 639,840 | 1,604 |
Number of
Contracts | Notional
Amount | Value |
| Put Options - Over the Counter (Continued) |
| Mexican Peso vs. U.S. Dollar, Strike Price MXN 20.10, 07/22/22, Counterparty: Goldman Sachs | 1 | $1,110,000 | $10,547 |
| Norwegian Kroner vs. U.S. Dollar, Strike Price NOK 8.69, 07/21/22, Counterparty: Morgan Stanley | 1 | 1,090,000 | 3,826 |
| | | | 16,488 |
Total Purchased Options
(Premiums Received $61,289) | 33,938 |
Total Investments – 103.8%
(Cost $264,633,020) | 256,414,682 |
Total Written Options — 0.0%(g)
(Premiums Received $6,910) | | (9,491) |
| Liabilities less Other Assets – (3.8)%(r) | (9,454,978) |
| NET ASSETS – 100.0% | $246,959,704 |
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Par value is in USD unless otherwise indicated. | | |
| (b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. | | |
| (c) | Variable rate security. Rate as of April 30, 2022 is disclosed. | | |
| (d) | When-Issued Security. Coupon rate was not yet in effect at April 30, 2022. | | |
| (e) | Security either partially or fully on loan. | | |
| (f) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (g) | Amount rounds to less than 0.05%. | | |
| (h) | Investment is valued using significant unobservable inputs (Level 3) (See Note 4 regarding investments in Russian securities). | | |
| (i) | Variable rate security. Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate as of April 30, 2022 is disclosed. | | |
| (j) | Distributions from this security are a made via payments in-kind (PIK) unless otherwise noted in the description. | | |
| (k) | Perpetual bond. Maturity date represents next call date. | | |
| (l) | Step coupon bond. Rate as of April 30, 2022 is disclosed. | | |
| (m) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate as of April 30, 2022 is disclosed. | | |
| (n) | Position is unsettled. Contract rate was not determined at April 30, 2022 and does not take effect until settlement date. | | |
| (o) | Unfunded loan commitment. | | |
| (p) | 7-day current yield as of April 30, 2022 is disclosed. | | |
| (q) | Security purchased with the cash proceeds from securities loaned (See Note 7). | | |
| (r) | Includes appreciation/(depreciation) on forward foreign currency exchange and futures contracts. | | |
| * | Non-Income Producing Security | | |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
| 3M | 3 Month |
| 5Y | 5 Year |
| 10Y | 10 Year |
| ADR | American Depositary Receipt |
| CDO | Collaterlized Debt Obligation |
| CLO | Collateralized Loan Obligation |
| CMT | Constant Maturity |
| CVA | Credit Valuation Adjustment |
| ETF | Exchange-Traded Fund |
| EUR | Euro |
| FNMA | Federal National Mortgage Association |
| Freddie Mac | Federal Home Loan Mortgage Corporation |
| GDR | Global Depositary Receipt |
| IDR | Indonesian Rupiah |
| JPY | Japanese Yen |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| MTN | Medium Term Note |
| MXN | Mexican Peso |
| NOK | Norwegian Kroner |
| PJSC | Public Joint Stock Company |
| PLC | Public Limited Company |
| REMIC | Real Estate Mortgage Investment Conduit |
| SOFR | United States Secured Overnight Financing Rate |
| STACR | Structured Agency Credit Risk |
| UCITS | Undertakings for Collective Investment in Transferable Securities |
| USD | United States Dollar |
| Concentration by Currency (%)(a) | |
| U.S. Dollar | 57.2 |
| Euro | 10.4 |
| British Pound | 7.2 |
| All other currencies less than 5% | 25.2 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Country Diversification (%)(a) | |
| United States | 47.0 |
| United Kingdom | 6.9 |
| All other countries less than 5% | 46.1 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. |
Futures Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| Ultra U.S. Treasury Bond | 9 | 6/21/2022 | USD | 1,443,938 | $ 12,688 |
| 2-Year U.S. Treasury Note | 133 | 6/30/2022 | USD | 28,038,063 | (395,323) |
| 90-Day Eurodollar | 19 | 12/19/2022 | USD | 4,596,575 | (11,463) |
| Total Long Contracts | | | | | $(394,098) |
| Short Contracts | | | | | |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
Futures Contracts outstanding at April 30, 2022:
Exchange Traded (continued) |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| 10-Year U.S. Treasury Note | (49) | 6/21/2022 | USD | 5,838,656 | $ 142,969 |
| U.S. Treasury Long Bond | (4) | 6/21/2022 | USD | 562,750 | 63,375 |
| Ultra 10-Year U.S. Treasury Note | (2) | 6/21/2022 | USD | 258,000 | 12,562 |
| 5-Year U.S. Treasury Note | (17) | 6/30/2022 | USD | 1,915,422 | 32,711 |
| Total Short Contracts | | | | | $ 251,617 |
| | | | | | $(142,481) |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 07/19/22 | U.S. Dollars | 405,351 | Australian Dollars | 541,000 | Morgan Stanley | $ 22,562 |
| 07/25/22 | U.S. Dollars | 392,400 | Norwegian Kroner | 3,488,828 | Morgan Stanley | 20,241 |
| 07/26/22 | U.S. Dollars | 378,354 | Australian Dollars | 512,300 | BNP Paribas | 15,834 |
| 07/19/22 | U.S. Dollars | 247,443 | British Pounds | 190,000 | Goldman Sachs | 8,444 |
| 05/17/22 | Mexican Pesos | 5,624,000 | U.S. Dollars | 266,667 | JPMorgan Chase | 8,004 |
| 06/27/22 | U.S. Dollars | 92,110 | Japanese Yen | 11,090,000 | Morgan Stanley | 6,460 |
| 09/26/22 | U.S. Dollars | 74,220 | Japanese Yen | 8,897,000 | Morgan Stanley | 5,081 |
| 07/25/22 | U.S. Dollars | 432,900 | Mexican Pesos | 8,882,892 | Goldman Sachs | 4,925 |
| Total Unrealized Appreciation | $ 91,551 |
| | | | | | | |
| 07/19/22 | U.S. Dollars | 126,793 | Euro | 120,000 | Goldman Sachs | $ (340) |
| 07/19/22 | New Zealand Dollars | 490,000 | U.S. Dollars | 320,185 | Citibank | (4,045) |
| 07/19/22 | Australian Dollars | 580,000 | U.S. Dollars | 414,722 | Morgan Stanley | (4,338) |
| 07/19/22 | U.S. Dollars | 512,407 | British Pounds | 410,996 | Goldman Sachs | (4,582) |
| 07/19/22 | Canadian Dollars | 1,350,000 | U.S. Dollars | 1,057,092 | Morgan Stanley | (6,554) |
| 05/17/22 | U.S. Dollars | 270,681 | Mexican Pesos | 5,700,000 | JPMorgan Chase | (7,703) |
| 07/19/22 | Japanese Yen | 27,791,000 | U.S. Dollars | 224,883 | Goldman Sachs | (9,975) |
| 07/19/22 | Mexican Pesos | 22,680,000 | U.S. Dollars | 1,117,598 | Citibank | (23,636) |
| 07/19/22 | Australian Dollars | 1,370,000 | U.S. Dollars | 1,017,948 | Citibank | (48,591) |
| 07/19/22 | Norwegian Kroner | 18,010,000 | U.S. Dollars | 2,029,488 | Morgan Stanley | (108,446) |
| Total Unrealized Depreciation | $ (218,210) |
| Net Unrealized Depreciation | $(126,659) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Income Fund
Written Put Option Contracts outstanding at April 30, 2022:
Over the Counter |
| | | | | | | | | |
| Description | Counterparty | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| Mexican Peso vs. U.S. Dollar | JPMorgan Chase | 1 | USD | 1,000,000 | MXN | 20.42 | 5/16/2022 | $ (9,491) |
| Total Written OTC Put Options Contracts (Premiums Received $6,910) | $(9,491) |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Global Income Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Asset-Backed Securities | $ — | $ 6,186,309 | $ — | $ 6,186,309 |
| Common Stocks | 57,781,655 | 56,095,447 | —* | 113,877,102 |
| Corporate Bonds | — | 29,888,141 | — | 29,888,141 |
| Foreign Issuer Bonds | — | 16,952,287 | — | 16,952,287 |
| Master Limited Partnerships | 1,724,675 | — | — | 1,724,675 |
| Mortgage-Backed Securities | — | 6,422,341 | — | 6,422,341 |
| Term Loans | — | 24,636,533 | — | 24,636,533 |
| U.S. Government Obligations | — | 11,805,753 | — | 11,805,753 |
| Investment Companies | 21,693,535 | — | — | 21,693,535 |
| Short-Term Investments | 23,194,068 | — | — | 23,194,068 |
| Purchased Options | 13,500 | 20,438 | — | 33,938 |
| Total Investments | $104,407,433 | $152,007,249 | $ — | $256,414,682 |
| *Includes securities determined to have no value as of April 30, 2022. |
| Morningstar Global Income Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $ 264,305 | $ — | $— | $ 264,305 |
| Forward Foreign Currency Exchange Contracts | — | 91,551 | — | 91,551 |
| Total Assets - Derivative Financial Instruments | $ 264,305 | $ 91,551 | $— | $ 355,856 |
| Liabilities: | | | | |
| Futures Contracts | $(406,786) | $ — | $— | $(406,786) |
| Forward Foreign Currency Exchange Contracts | — | (218,210) | — | (218,210) |
| Written Options | — | (9,491) | — | (9,491) |
| Total Liabilities - Derivative Financial Instruments | $(406,786) | $(227,701) | $— | $(634,487) |
| Net Derivative Financial Instruments | $(142,481) | $(136,150) | $— | $(278,631) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Long Positions – 108.5% |
| Asset-Backed Securities – 4.0% |
| Automobile – 0.3% |
| Avis Budget Rental Car Funding AESOP LLC, | | | |
| Series 2020-2A, Class A, 2.02%, 2/20/27(b) | | $730,000 | $ 682,741 |
| Series 2021-1A, Class A, 1.38%, 8/20/27(b) | | 740,000 | 665,308 |
| Hertz Vehicle Financing LLC, | | | |
| Series 2021-1A, Class A, 1.21%, 12/26/25(b) | | 630,000 | 591,795 |
| Series 2021-1A, Class C, 2.05%, 12/26/25(b) | | 420,000 | 394,923 |
| | | | 2,334,767 |
| Home Equity – 0.1% |
| Bayview Financial Mortgage Pass-Through Trust, Series 2006-A, Class M3, (1M USD LIBOR + 0.98%), 1.72%, 2/28/41(c) | | 135,641 | 135,202 |
| GSAA Home Equity Trust, Series 2006-4, Class 1A1, 2.95%, 3/25/36(d) | | 47,936 | 37,559 |
| Option One Mortgage Loan Trust, Series 2004-3, Class M1, (1M USD LIBOR + 0.78%, 0.78% Floor), 1.45%, 11/25/34(c) | | 120,166 | 118,156 |
| Renaissance Home Equity Loan Trust, Series 2005-2, Class AV3, (1M USD LIBOR + 0.37%, 0.37% Floor, 14.00% Cap), 1.04%, 8/25/35(c) | | 320,044 | 300,352 |
| | | | 591,269 |
| Other – 3.4% |
| 522 Funding CLO Ltd., Series 2020-6A, Class A1R, (3M USD LIBOR + 1.15%, 1.15% Floor), 2.33%, 10/23/34(b)(c) | | 610,000 | 600,678 |
| ABPCI Direct Lending Fund CLO X L.P., Series 2020-10A, Class A1A, (3M USD LIBOR + 1.95%, 1.95% Floor), 3.01%, 1/20/32(b)(c) | | 400,000 | 399,427 |
| Ajax Mortgage Loan Trust, | | | |
| Series 2019-A, Class A, 3.75%, 8/25/57(b)(d) | | 174,853 | 174,526 |
| Series 2019-B, Class A, 3.75%, 1/25/59(b)(d) | | 244,839 | 245,287 |
| | | Par (a) | Value |
| Other (Continued) |
|
| Allegro CLO XI Ltd., Series 2019-2A, Class A1A, (3M USD LIBOR + 1.39%, 1.39% Floor), 2.43%, 1/19/33(b)(c) | | $250,000 | $248,895 |
| AMMC CLO Ltd., Series 2017-21A, Class A, (3M USD LIBOR + 1.25%), 2.54%, 11/02/30(b)(c) | | 250,000 | 249,247 |
| Anchorage Capital CLO Ltd., Series 2013-1A, Class A1R, (3M USD LIBOR + 1.25%), 2.27%, 10/13/30(b)(c) | | 500,000 | 498,493 |
| Applebee's Funding LLC/IHOP Funding LLC, Series 2019-1A, Class A2I, 4.19%, 6/05/49(b) | | 376,200 | 371,996 |
| Arbor Realty Commercial Real Estate Notes Ltd., Series 2022-FL1, Class A, (30D Average SOFR + 1.45%, 1.45% Floor), 1.72%, 1/15/37(b)(c) | | 378,000 | 374,915 |
| Ares LXIII CLO Ltd., Series 2022-63A, Class A1A, (3M CME Term SOFR + 1.38%, 1.38% Floor), 2.27%, 4/20/35(b)(c) | | 540,000 | 534,793 |
| ARES XLIV CLO Ltd., Series 2017-44A, Class A1R, (3M USD LIBOR + 1.08%, 1.08% Floor), 2.12%, 4/15/34(b)(c) | | 460,000 | 451,277 |
| Atrium IX, Series 9A, Class AR2, (3M USD LIBOR + 0.99%, 0.99% Floor), 1.50%, 5/28/30(b)(c) | | 530,000 | 526,830 |
| Babson CLO Ltd., Series 2015-IA, Class AR, (3M USD LIBOR + 0.99%, 0.99% Floor), 2.05%, 1/20/31(b)(c) | | 250,000 | 247,886 |
| Ballyrock CLO Ltd., Series 2019-2A, Class A1BR, (3M USD LIBOR + 1.20%, 1.20% Floor), 1.68%, 11/20/30(b)(c) | | 250,000 | 248,881 |
| Basswood Park CLO Ltd, Series 2021-1A, Class A, (3M USD LIBOR + 1.00%, 1.00% Floor), 2.06%, 4/20/34(b)(c) | | 800,000 | 783,151 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Other (Continued) |
|
| Bayview Commercial Asset Trust, Series 2007-4A, Class A1, (1M USD LIBOR + 0.45%, 0.45% Floor), 1.12%, 9/25/37(b)(c) | | $307,709 | $289,556 |
| BCRED MML CLO LLC, Series 2022-1A, Class A1, (3M CME Term SOFR + 1.65%, 1.65% Floor), 2.24%, 4/20/35(b)(c) | | 430,000 | 428,691 |
| BlueMountain CLO Ltd., | | | |
| Series 2013-2A, Class A1R, (3M USD LIBOR + 1.18%), 2.32%, 10/22/30(b)(c) | | 245,096 | 244,334 |
| Series 2015-3A, Class A1R, (3M USD LIBOR + 1.00%), 2.06%, 4/20/31(b)(c) | | 250,000 | 247,813 |
| Carlyle Global Market Strategies CLO Ltd., | | | |
| Series 2014-2RA, Class A1, (3M USD LIBOR + 1.05%), 1.56%, 5/15/31(b)(c) | | 729,370 | 722,730 |
| Series 2014-3RA, Class A1A, (3M USD LIBOR + 1.05%), 2.27%, 7/27/31(b)(c) | | 247,958 | 245,537 |
|
| Cayuga Park CLO Ltd., Series 2020-1A, Class AR, (3M USD LIBOR + 1.12%, 1.12% Floor), 2.16%, 7/17/34(b)(c) | | 440,000 | 433,934 |
| Cerberus Loan Funding XXVIII L.P., Series 2020-1A, Class A, (3M USD LIBOR + 1.85%, 1.85% Floor), 2.89%, 10/15/31(b)(c) | | 125,000 | 125,634 |
| Citigroup Mortgage Loan Trust, Inc., Series 2007-WFH4, Class M3A, (1M USD LIBOR + 2.50%, 2.50% Floor), 3.17%, 7/25/37(c) | | 500,000 | 516,288 |
| Dryden 87 CLO Ltd., Series 2021-87A, Class A1, (3M USD LIBOR + 1.10%, 1.10% Floor), 1.58%, 5/20/34(b)(c) | | 770,000 | 762,191 |
| First Franklin Mortgage Loan Trust, | | | |
| Series 2003-FF4, Class M1, (1M USD LIBOR + 1.80%, 1.80% Floor), 2.26%, 10/25/33(c) | | 294,237 | 290,935 |
| | | Par (a) | Value |
| Other (Continued) |
| First Franklin Mortgage Loan Trust, | | | |
| Series 2006-FF13, Class A1, (1M USD LIBOR + 0.24%, 0.24% Floor), 0.91%, 10/25/36(c) | | $ 30,592 | $ 22,664 |
| Series 2006-FF13, Class A2C, (1M USD LIBOR + 0.32%, 0.32% Floor), 0.99%, 10/25/36(c) | | 17,849 | 13,497 |
|
| GCI Funding I LLC, Series 2021-1, Class A, 2.38%, 6/18/46(b) | | 580,020 | 524,816 |
| Generate CLO 3 Ltd., Series 2016-1A, Class BR, (3M USD LIBOR + 1.75%), 2.81%, 10/20/29(b)(c) | | 500,000 | 497,600 |
| Golub Capital Partners CLO Ltd., Series 2015-25A, Class AR, (3M USD LIBOR + 1.38%, 1.38% Floor), 1.70%, 5/05/30(b)(c) | | 590,000 | 586,163 |
| Hardee's Funding LLC, Series 2021-1A, Class A2, 2.87%, 6/20/51(b) | | 416,850 | 367,258 |
| HGI CRE CLO Ltd., Series 2021-FL1, Class A, (1M USD LIBOR + 1.05%, 1.05% Floor), 1.60%, 6/16/36(b)(c) | | 600,000 | 593,435 |
| Hildene Community Funding CDO Ltd., Series 2015-1A, Class ARR, 2.60%, 11/01/35(b) | | 460,000 | 421,449 |
| Home Equity Asset Trust, Series 2006-4, Class 2A4, (1M USD LIBOR + 0.56%, 0.56% Floor), 1.23%, 8/25/36(c) | | 441,682 | 436,629 |
| ICG U.S. CLO Ltd., Series 2015-2RA, Class A1, (3M USD LIBOR + 1.37%, 1.37% Floor), 2.41%, 1/16/33(b)(c) | | 500,000 | 497,286 |
| KKR CLO 32 Ltd., Series 32A, Class A1, (3M USD LIBOR + 1.32%, 1.32% Floor), 2.36%, 1/15/32(b)(c) | | 150,000 | 149,243 |
| KREF Ltd., Series 2022-FL3, Class A, (1M CME Term SOFR + 1.45%, 1.45% Floor), 1.97%, 2/17/39(b)(c) | | 820,000 | 811,752 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Other (Continued) |
|
| LCM Loan Income Fund I Income Note Issuer Ltd., Series 27A, Class A1, (3M USD LIBOR + 1.08%), 2.12%, 7/16/31(b)(c) | | $ 250,000 | $ 248,256 |
| Legacy Mortgage Asset Trust, Series 2019-GS5, Class A1, (Step to 6.20% on 8/25/22), 3.20%, 5/25/59(b)(e) | | 575,952 | 575,407 |
| Long Beach Mortgage Loan Trust, Series 2006-6, Class 2A3, (1M USD LIBOR + 0.30%, 0.30% Floor), 0.97%, 7/25/36(c) | | 757,133 | 346,697 |
| Madison Park Funding XIII Ltd., Series 2014-13A, Class AR2, (3M USD LIBOR + 0.95%, 0.95% Floor), 1.99%, 4/19/30(b)(c) | | 487,726 | 484,474 |
| Merrill Lynch Mortgage Investors Trust, Series 2004-WMC5, Class M1, (1M USD LIBOR + 0.93%, 0.93% Floor), 1.60%, 7/25/35(c) | | 173,728 | 170,919 |
| Myers Park CLO Ltd., Series 2018-1A, Class B1, (3M USD LIBOR + 1.60%, 1.60% Floor), 2.66%, 10/20/30(b)(c) | | 250,000 | 245,769 |
| NP SPE X L.P., Series 2021-1A, Class A1, 2.23%, 3/19/51(b) | | 780,000 | 710,859 |
| Oaktree CLO Ltd., Series 2015-1A, Class A1R, (3M USD LIBOR + 0.87%), 1.93%, 10/20/27(b)(c) | | 58,798 | 58,685 |
| Octagon Investment Partners XXI Ltd., | | | |
| Series 2012-1A, Class AARR, (3M USD LIBOR + 0.95%, 0.95% Floor), 1.99%, 7/15/29(b)(c) | | 1,450,000 | 1,437,770 |
| Series 2012-1A, Class AAR3, (3M USD LIBOR + 1.00%, 1.00% Floor), 1.39%, 2/14/31(b)(c) | | 260,000 | 256,960 |
|
| OHA Credit Funding 7 Ltd., Series 2020-7A, Class AR, (3M CME Term SOFR + 1.30%, 1.30% Floor), 2.15%, 2/24/37(b)(c) | | 350,000 | 344,986 |
| | | Par (a) | Value |
| Other (Continued) |
|
| Owl Rock CLO III Ltd., Series 2020-3A, Class A1L, (3M USD LIBOR + 1.80%), 2.86%, 4/20/32(b)(c) | | $270,000 | $272,293 |
| Palmer Square CLO Ltd., Series 2018-2A, Class A1A, (3M USD LIBOR + 1.10%), 2.14%, 7/16/31(b)(c) | | 500,000 | 496,381 |
| Point Au Roche Park CLO Ltd., Series 2021-1A, Class A, (3M USD LIBOR + 1.08%, 1.08% Floor), 2.14%, 7/20/34(b)(c) | | 620,000 | 609,268 |
| REESE PARK CLO Ltd., Series 2020-1A, Class AR, (3M USD LIBOR + 1.13%, 1.13% Floor), 2.17%, 10/15/34(b)(c) | | 740,000 | 729,787 |
| RR 3 Ltd., Series 2018-3A, Class A1R2, (3M USD LIBOR + 1.09%, 1.09% Floor), 2.13%, 1/15/30(b)(c) | | 250,000 | 248,733 |
| SBA Small Business Investment Cos., | | | |
| Series 2019-10A, Class 1, 3.11%, 3/10/29 | | 70,657 | 68,652 |
| Series 2021-10A, Class 1, 1.67%, 3/10/31 | | 225,889 | 206,160 |
|
| Silver Rock CLO I Ltd., Series 2020-1A, Class A, (3M USD LIBOR + 1.65%, 1.65% Floor), 2.71%, 10/20/31(b)(c) | | 440,000 | 439,757 |
| Structured Asset Investment Loan Trust, Series 2004-7, Class A8, (1M USD LIBOR + 1.20%, 1.20% Floor), 1.87%, 8/25/34(c) | | 209,235 | 206,074 |
| STWD Ltd., Series 2022-FL3, Class A, (30D Average SOFR + 1.35%, 1.35% Floor), 1.62%, 11/15/38(b)(c) | | 630,000 | 623,554 |
| Sunrun Vulcan Issuer LLC, Series 2021-1A, Class A, 2.46%, 1/30/52(b) | | 611,198 | 562,397 |
| Towd Point Mortgage Trust, | | | |
| Series 2016-3, Class B1, 4.08%, 4/25/56(b)(d) | | 190,000 | 188,278 |
| Series 2017-4, Class B2, 3.41%, 6/25/57(b)(d) | | 330,000 | 298,429 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Other (Continued) |
| Towd Point Mortgage Trust, | | | |
| Series 2020-2, Class M1B, 3.00%, 4/25/60(b)(d) | | $240,000 | $ 213,639 |
|
| TRTX Issuer Ltd., Series 2022-FL5, Class A, (30D Average SOFR + 1.65%, 1.65% Floor), 1.92%, 2/15/39(b)(c) | | 810,000 | 802,034 |
| United States Small Business Administration, | | | |
| Series 2019-20D, Class 1, 2.98%, 4/01/39 | | 37,762 | 36,551 |
| Series 2019-25G, Class 1, 2.69%, 7/01/44 | | 67,061 | 64,429 |
|
| Venture 31 CLO Ltd., Series 2018-31A, Class A1, (3M USD LIBOR + 1.03%, 1.03% Floor), 2.09%, 4/20/31(b)(c) | | 410,000 | 406,255 |
| Voya CLO Ltd., | | | |
| Series 2018-2A, Class A1, (3M USD LIBOR + 1.00%, 1.00% Floor), 2.04%, 7/15/31(b)(c) | | 570,000 | 564,750 |
| Series 2018-4A, Class A1AR, (3M USD LIBOR + 1.04%, 1.04% Floor), 2.08%, 1/15/32(b)(c) | | 680,000 | 672,139 |
| Series 2017-3A, Class A1R, (3M USD LIBOR + 1.04%), 2.10%, 4/20/34(b)(c) | | 230,000 | 225,092 |
|
| Whitebox CLO II Ltd., Series 2020-2A, Class A1R, (3M USD LIBOR + 1.22%, 1.22% Floor), 2.40%, 10/24/34(b)(c) | | 290,000 | 286,545 |
| Whitebox CLO III Ltd., Series 2021-3A, Class A1, (3M USD LIBOR + 1.22%, 1.22% Floor), 2.26%, 10/15/34(b)(c) | | 420,000 | 415,018 |
| | | | 28,702,714 |
| Student Loan – 0.2% |
| Navient Student Loan Trust, | | | |
| Series 2017-1A, Class A3, (1M USD LIBOR + 1.15%), 1.82%, 7/26/66(b)(c) | | 248,508 | 248,284 |
| | | Par (a) | Value |
| Student Loan (Continued) |
| Navient Student Loan Trust, | | | |
| Series 2017-2A, Class A, (1M USD LIBOR + 1.05%), 1.72%, 12/27/66(b)(c) | | $110,515 | $ 110,790 |
|
| SLM Private Credit Student Loan Trust, Series 2006-B, Class A5, (3M USD LIBOR + 0.27%), 1.10%, 12/15/39(c) | | 210,592 | 201,402 |
| SLM Private Education Loan Trust, Series 2010-C, Class A5, (1M USD LIBOR + 4.75%), 5.30%, 10/15/41(b)(c) | | 267,219 | 295,682 |
| SMB Private Education Loan Trust 2021-A, Series 2021-A, Class A2B, 1.59%, 1/15/53(b) | | 670,000 | 619,376 |
| Sofi Professional Loan Program Trust, Series 2018-B, Class A2FX, 3.34%, 8/25/47(b) | | 88,277 | 88,094 |
| | | | 1,563,628 |
Total Asset-Backed Securities
(Cost $34,091,984) | 33,192,378 |
|
| Corporate Bonds – 22.4% |
| Advertising – 0.0%(f) |
| Interpublic (The) Group of Cos., Inc, 4.75%, 3/30/30 | | 97,000 | 98,987 |
| Lamar Media Corp., 3.75%, 2/15/28 | | 8,000 | 7,320 |
| Outfront Media Capital LLC/Outfront Media Capital Corp., | | | |
| 5.00%, 8/15/27(b) | | 82,000 | 78,002 |
| 4.63%, 3/15/30(b) | | 7,000 | 6,264 |
| | | | 190,573 |
| Aerospace/Defense – 1.0% |
| Boeing (The) Co., | | | |
| 1.43%, 2/04/24 | | 110,000 | 105,691 |
| 4.88%, 5/01/25 | | 360,000 | 364,501 |
| 2.20%, 2/04/26 | | 390,000 | 355,715 |
| 3.10%, 5/01/26 | | 40,000 | 37,832 |
| 2.70%, 2/01/27 | | 30,000 | 27,619 |
| 2.80%, 3/01/27 | | 40,000 | 36,881 |
| 3.20%, 3/01/29 | | 130,000 | 116,971 |
| 5.15%, 5/01/30 | | 470,000 | 466,282 |
| 3.25%, 2/01/35 | | 290,000 | 232,258 |
| 5.71%, 5/01/40 | | 170,000 | 169,848 |
| 3.75%, 2/01/50 | | 300,000 | 229,608 |
| 5.81%, 5/01/50 | | 430,000 | 430,025 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Aerospace/Defense (Continued) |
| Boeing (The) Co., | | | |
| 5.93%, 5/01/60 | | $140,000 | $ 138,620 |
| General Dynamics Corp., | | | |
| 3.63%, 4/01/30 | | 58,000 | 56,907 |
| 4.25%, 4/01/40 | | 10,000 | 9,875 |
| 4.25%, 4/01/50 | | 70,000 | 69,856 |
| L3Harris Technologies, Inc., | | | |
| 3.95%, 5/28/24 | | 62,000 | 62,811 |
| 4.40%, 6/15/28 | | 399,000 | 398,993 |
| 1.80%, 1/15/31 | | 328,000 | 269,041 |
| Lockheed Martin Corp., | | | |
| 3.55%, 1/15/26 | | 120,000 | 120,904 |
| 6/15/32 (g) | | 130,000 | 128,989 |
| 3.60%, 3/01/35 | | 222,000 | 210,312 |
| 3.80%, 3/01/45 | | 82,000 | 75,992 |
| 2.80%, 6/15/50 | | 49,000 | 37,864 |
| 6/15/53 (g) | | 460,000 | 445,972 |
| Northrop Grumman Corp., | | | |
| 2.93%, 1/15/25 | | 40,000 | 39,287 |
| 3.25%, 1/15/28 | | 787,000 | 755,360 |
| 4.03%, 10/15/47 | | 273,000 | 251,509 |
| 5.25%, 5/01/50 | | 785,000 | 855,827 |
| Raytheon Technologies Corp., | | | |
| 3.15%, 12/15/24 | | 105,000 | 103,899 |
| 7.20%, 8/15/27 | | 26,000 | 29,629 |
| 7.00%, 11/01/28 | | 90,000 | 102,739 |
| 4.13%, 11/16/28 | | 630,000 | 630,436 |
| 2.25%, 7/01/30 | | 100,000 | 86,761 |
| 2.38%, 3/15/32 | | 166,000 | 142,678 |
| 4.50%, 6/01/42 | | 46,000 | 45,578 |
| 4.15%, 5/15/45 | | 150,000 | 140,074 |
| 3.75%, 11/01/46 | | 50,000 | 44,221 |
| 4.63%, 11/16/48 | | 40,000 | 40,752 |
| 3.13%, 7/01/50 | | 460,000 | 366,387 |
| 2.82%, 9/01/51 | | 225,000 | 166,500 |
| 3.03%, 3/15/52 | | 122,000 | 94,109 |
| | | | 8,495,113 |
| Agriculture – 0.3% |
| Altria Group, Inc., | | | |
| 2.35%, 5/06/25 | | 30,000 | 28,586 |
| 4.40%, 2/14/26 | | 172,000 | 173,877 |
| 2.20%, 6/15/27 | EUR | 100,000 | 102,835 |
| 4.80%, 2/14/29 | | 240,000 | 237,705 |
| 3.13%, 6/15/31 | EUR | 205,000 | 208,670 |
| 2.45%, 2/04/32 | | 180,000 | 144,042 |
| 5.80%, 2/14/39 | | 202,000 | 200,066 |
| 3.40%, 2/04/41 | | 233,000 | 170,474 |
| 5.95%, 2/14/49 | | 325,000 | 317,363 |
| 6.20%, 2/14/59 | | 24,000 | 23,971 |
| | | Par (a) | Value |
| Agriculture (Continued) |
|
| Cargill, Inc., 1.38%, 7/23/23(b) | | $110,000 | $ 107,959 |
| Darling Ingredients, Inc., 5.25%, 4/15/27(b) | | 18,000 | 18,000 |
| Philip Morris International, Inc., | | | |
| 1.13%, 5/01/23 | | 70,000 | 68,902 |
| 2.10%, 5/01/30 | | 70,000 | 59,802 |
| 1.45%, 8/01/39 | EUR | 200,000 | 148,238 |
| 4.50%, 3/20/42 | | 60,000 | 55,108 |
| | | | 2,065,598 |
| Airlines – 0.2% |
| American Airlines Pass Through Trust, | | | |
| Series 2015-2, Class B, 4.40%, 9/22/23 | | 16,196 | 15,731 |
| Series 2016-1, Class B, 5.25%, 1/15/24 | | 88,607 | 86,657 |
| Series 2017-1, Class B, 4.95%, 2/15/25 | | 12,336 | 11,737 |
| Series 2015-2, Class AA, 3.60%, 9/22/27 | | 12,884 | 12,302 |
| Series 2016-1, Class AA, 3.58%, 1/15/28 | | 73,812 | 69,998 |
| Series 2019-1, Class B, 3.85%, 2/15/28 | | 64,839 | 58,675 |
| Series 2016-2, Class AA, 3.20%, 6/15/28 | | 22,935 | 21,506 |
| Series 2016-3, Class AA, 3.00%, 10/15/28 | | 110,525 | 101,568 |
| Series 2017-1, Class AA, 3.65%, 2/15/29 | | 19,695 | 18,662 |
| Series 2019-1, Class AA, 3.15%, 2/15/32 | | 66,868 | 60,198 |
| Delta Air Lines Pass Through Trust, | | | |
| Series 2019-1, Class AA, 3.20%, 4/25/24 | | 137,000 | 134,853 |
| Series 2015-1, Class AA, 3.63%, 7/30/27 | | 53,790 | 52,005 |
| Delta Air Lines, Inc./SkyMiles IP Ltd., | | | |
| 4.50%, 10/20/25(b) | | 220,000 | 218,511 |
| 4.75%, 10/20/28(b) | | 260,000 | 256,968 |
| United Airlines Pass Through Trust, | | | |
| Series 2016-2, Class B, 3.65%, 10/07/25 | | 2,458 | 2,283 |
| Series 2020-1, Class B, 4.88%, 1/15/26 | | 53,950 | 51,994 |
| Series 2014-1, Class A, 4.00%, 4/11/26 | | 86,176 | 85,331 |
| Series 2020-1, Class A, 5.88%, 10/15/27 | | 376,845 | 384,679 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Airlines (Continued) |
| United Airlines Pass Through Trust, | | | |
| Series 2015-1, Class AA, 3.45%, 12/01/27 | | $ 734 | $ 711 |
| Series 2019-2, Class B, 3.50%, 5/01/28 | | 47,299 | 43,082 |
| Series 2016-1, Class AA, 3.10%, 7/07/28 | | 2,288 | 2,135 |
| Series 2016-2, Class AA, 2.88%, 10/07/28 | | 16,767 | 15,543 |
| Series 2018-1, Class AA, 3.50%, 3/01/30(h) | | 15,010 | 13,903 |
| Series 2019-2, Class AA, 2.70%, 5/01/32 | | 54,603 | 48,616 |
| | | | 1,767,648 |
| Apparel – 0.0%(f) |
| NIKE, Inc., | | | |
| 2.40%, 3/27/25 | | 60,000 | 58,670 |
| 2.75%, 3/27/27 | | 100,000 | 96,534 |
| 2.85%, 3/27/30 | | 100,000 | 93,090 |
| 3.25%, 3/27/40 | | 50,000 | 44,298 |
| 3.38%, 3/27/50 | | 20,000 | 17,583 |
| | | | 310,175 |
| Auto Manufacturers – 0.2% |
| Ford Motor Co., 3.25%, 2/12/32 | | 21,000 | 17,066 |
| General Motors Co., | | | |
| 4.88%, 10/02/23 | | 560,000 | 571,474 |
| 6.60%, 4/01/36 | | 10,000 | 10,776 |
| 5.95%, 4/01/49 | | 70,000 | 70,025 |
| General Motors Financial Co., Inc., | | | |
| 3.70%, 5/09/23 | | 68,000 | 68,350 |
| 1.70%, 8/18/23 | | 203,000 | 198,964 |
| 5.10%, 1/17/24 | | 70,000 | 71,569 |
| 1.05%, 3/08/24 | | 269,000 | 256,777 |
| 2.75%, 6/20/25 | | 359,000 | 344,007 |
| 2.40%, 10/15/28 | | 139,000 | 118,918 |
| 3.10%, 1/12/32 | | 60,000 | 50,603 |
| | | | 1,778,529 |
| Banks – 6.0% |
| Bank of America Corp., | | | |
| (3M USD LIBOR + 0.79%), 3.00%, 12/20/23(i) | | 93,000 | 92,782 |
| (3M USD LIBOR + 0.78%), 3.55%, 3/05/24(i) | | 93,000 | 93,059 |
| 4.20%, 8/26/24 | | 60,000 | 60,551 |
| (SOFR + 0.74%), 0.81%, 10/24/24(i) | | 39,000 | 37,433 |
| 3.95%, 4/21/25 | | 79,000 | 78,592 |
| | | Par (a) | Value |
| Banks (Continued) |
| Bank of America Corp., | | | |
| (3M USD LIBOR + 0.87%), 2.46%, 10/22/25(i) | | $ 232,000 | $ 223,361 |
| (3M USD LIBOR + 0.81%), 3.37%, 1/23/26(i) | | 62,000 | 60,642 |
| (SOFR + 1.33%), 3.38%, 4/02/26(i) | | 287,000 | 280,764 |
| (SOFR + 1.15%), 1.32%, 6/19/26(i) | | 290,000 | 265,738 |
| 4.25%, 10/22/26 | | 680,000 | 678,502 |
| (SOFR + 1.01%), 1.20%, 10/24/26(i) | | 85,000 | 76,700 |
| (SOFR + 0.91%), 1.66%, 3/11/27(i) | | 893,000 | 808,635 |
| (3M USD LIBOR + 1.06%), 3.56%, 4/23/27(i) | | 384,000 | 372,568 |
| (SOFR + 0.96%), 1.73%, 7/22/27(i) | | 662,000 | 594,068 |
| (3M USD LIBOR + 1.58%), 3.82%, 1/20/28(i) | | 398,000 | 386,932 |
| (SOFR + 1.05%), 2.55%, 2/04/28(h)(i) | | 202,000 | 186,577 |
| (3M USD LIBOR + 2.93%), 5.88%, 3/15/28(i)(j) | | 171,000 | 163,698 |
| (3M USD LIBOR + 1.51%), 3.71%, 4/24/28(i) | | 252,000 | 243,058 |
| (SOFR + 1.58%), 4.38%, 4/27/28(i) | | 910,000 | 908,298 |
| (3M USD LIBOR + 1.37%), 3.59%, 7/21/28(i) | | 239,000 | 229,683 |
| (3M USD LIBOR + 1.04%), 3.42%, 12/20/28(i) | | 600,000 | 567,714 |
| (3M USD LIBOR + 1.07%), 3.97%, 3/05/29(i) | | 138,000 | 133,444 |
| (3M USD LIBOR + 1.21%), 3.97%, 2/07/30(i) | | 1,127,000 | 1,087,945 |
| (3M USD LIBOR + 1.18%), 3.19%, 7/23/30(i) | | 166,000 | 151,782 |
| (3M USD LIBOR + 1.19%), 2.88%, 10/22/30(i) | | 393,000 | 351,085 |
| (SOFR + 2.15%), 2.59%, 4/29/31(i) | | 1,176,000 | 1,015,385 |
| (SOFR + 1.53%), 1.90%, 7/23/31(i) | | 200,000 | 163,421 |
| (SOFR + 1.22%), 2.30%, 7/21/32(i) | | 260,000 | 214,660 |
| (SOFR + 1.21%), 2.57%, 10/20/32(i) | | 508,000 | 429,156 |
| (SOFR + 1.33%), 2.97%, 2/04/33(i) | | 1,585,000 | 1,379,190 |
| (SOFR + 1.83%), 4.57%, 4/27/33(i) | | 535,000 | 532,621 |
| 5.00%, 1/21/44 | | 170,000 | 173,454 |
| (3M USD LIBOR + 1.52%), 4.33%, 3/15/50(i) | | 30,000 | 28,218 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Banks (Continued) |
| Bank of America Corp., | | | |
| (3M USD LIBOR + 3.15%), 4.08%, 3/20/51(i) | | $ 450,000 | $ 404,156 |
| Bank of New York Mellon (The) Corp., | | | |
| 1.60%, 4/24/25 | | 60,000 | 56,921 |
| (5Y US Treasury CMT + 3.35%), 3.70%, 3/20/26(i)(j) | | 90,000 | 83,250 |
| (3M USD LIBOR + 3.13%), 4.63%, 9/20/26(i)(j) | | 136,000 | 127,160 |
| Citigroup, Inc., | | | |
| (SOFR + 1.67%), 1.68%, 5/15/24(i) | | 120,000 | 118,228 |
| 5.50%, 9/13/25 | | 120,000 | 125,152 |
| (SOFR + 0.69%), 2.01%, 1/25/26(i) | | 237,000 | 224,058 |
| (5Y US Treasury CMT + 3.42%), 3.88%, 2/18/26(i)(j) | | 82,000 | 74,072 |
| (SOFR + 1.53%), 3.29%, 3/17/26(i) | | 545,000 | 531,467 |
| (SOFR + 2.84%), 3.11%, 4/08/26(i) | | 80,000 | 77,396 |
| (SOFR + 1.28%), 3.07%, 2/24/28(i) | | 610,000 | 573,043 |
| (3M USD LIBOR + 1.39%), 3.67%, 7/24/28(i) | | 617,000 | 593,418 |
| (3M USD LIBOR + 1.15%), 3.52%, 10/27/28(i) | | 1,213,000 | 1,153,921 |
| (3M USD LIBOR + 1.19%), 4.08%, 4/23/29(i) | | 150,000 | 145,364 |
| (3M USD LIBOR + 1.34%), 3.98%, 3/20/30(i) | | 550,000 | 526,073 |
| (SOFR + 1.42%), 2.98%, 11/05/30(i) | | 519,000 | 463,542 |
| (SOFR + 3.91%), 4.41%, 3/31/31(i) | | 290,000 | 283,252 |
| (SOFR + 2.11%), 2.57%, 6/03/31(i) | | 760,000 | 652,029 |
| (SOFR + 1.35%), 3.06%, 1/25/33(i) | | 98,000 | 85,571 |
| (SOFR + 1.94%), 3.79%, 3/17/33(i) | | 340,000 | 314,801 |
| 8.13%, 7/15/39 | | 580,000 | 798,592 |
| 4.65%, 7/23/48 | | 30,000 | 29,564 |
|
| Citizens Financial Group, Inc., 3.25%, 4/30/30 | | 58,000 | 53,027 |
| Goldman Sachs Group (The), Inc., | | | |
| 3.63%, 2/20/24 | | 120,000 | 120,223 |
| 4.00%, 3/03/24 | | 418,000 | 421,772 |
| 3.00%, 3/15/24 | | 382,000 | 378,950 |
| 3.85%, 7/08/24 | | 30,000 | 30,166 |
| | | Par (a) | Value |
| Banks (Continued) |
| Goldman Sachs Group (The), Inc., | | | |
| 3.50%, 4/01/25 | | $ 575,000 | $ 566,315 |
| (3M USD LIBOR + 1.20%), 3.27%, 9/29/25(i) | | 69,000 | 67,889 |
| (SOFR + 0.61%), 0.86%, 2/12/26(i) | | 77,000 | 70,299 |
| 3.75%, 2/25/26 | | 18,000 | 17,878 |
| 3.50%, 11/16/26 | | 672,000 | 655,301 |
| 3.85%, 1/26/27 | | 547,000 | 534,731 |
| (SOFR + 0.80%), 1.43%, 3/09/27(i) | | 277,000 | 247,269 |
| (SOFR + 1.11%), 2.64%, 2/24/28(i) | | 80,000 | 73,514 |
| (SOFR + 1.85%), 3.62%, 3/15/28(i) | | 551,000 | 528,765 |
| (3M USD LIBOR + 1.51%), 3.69%, 6/05/28(i) | | 59,000 | 56,581 |
| (3M USD LIBOR + 1.16%), 3.81%, 4/23/29(i) | | 400,000 | 383,735 |
| (3M USD LIBOR + 1.30%), 4.22%, 5/01/29(i) | | 2,009,000 | 1,961,187 |
| (SOFR + 1.28%), 2.62%, 4/22/32(i) | | 130,000 | 109,958 |
| (SOFR + 1.26%), 2.65%, 10/21/32(i) | | 359,000 | 302,828 |
| (SOFR + 1.41%), 3.10%, 2/24/33(i) | | 751,000 | 656,305 |
| (SOFR + 1.51%), 3.21%, 4/22/42(i) | | 80,000 | 64,387 |
| (SOFR + 1.47%), 2.91%, 7/21/42(i) | | 160,000 | 122,033 |
| 5.15%, 5/22/45 | | 410,000 | 410,302 |
| 4.75%, 10/21/45 | | 230,000 | 227,586 |
| JPMorgan Chase & Co., | | | |
| (SOFR + 1.46%), 1.51%, 6/01/24(i) | | 310,000 | 305,073 |
| (3M USD LIBOR + 1.00%), 4.02%, 12/05/24(i) | | 559,000 | 561,528 |
| (3M CME Term SOFR + 1.59%), 2.01%, 3/13/26(i) | | 732,000 | 689,606 |
| (SOFR + 1.85%), 2.08%, 4/22/26(i) | | 200,000 | 188,086 |
| (SOFR + 1.32%), 4.08%, 4/26/26(i) | | 880,000 | 877,768 |
| (3M USD LIBOR + 1.25%), 3.96%, 1/29/27(i) | | 35,000 | 34,632 |
| (SOFR + 0.89%), 1.58%, 4/22/27(i) | | 530,000 | 479,449 |
| (3M USD LIBOR + 1.34%), 3.78%, 2/01/28(i) | | 610,000 | 591,891 |
| (SOFR + 1.17%), 2.95%, 2/24/28(i) | | 244,000 | 229,699 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Banks (Continued) |
| JPMorgan Chase & Co., | | | |
| (3M USD LIBOR + 1.38%), 3.54%, 5/01/28(i) | | $ 428,000 | $ 410,672 |
| (3M USD LIBOR + 1.12%), 4.01%, 4/23/29(i) | | 125,000 | 121,925 |
| (3M USD LIBOR + 1.33%), 4.45%, 12/05/29(i) | | 929,000 | 920,199 |
| (SOFR + 2.04%), 2.52%, 4/22/31(i) | | 510,000 | 443,047 |
| (SOFR + 1.25%), 2.58%, 4/22/32(i) | | 320,000 | 273,990 |
| (SOFR + 1.18%), 2.55%, 11/08/32(i) | | 130,000 | 110,062 |
| (SOFR + 1.26%), 2.96%, 1/25/33(i) | | 469,000 | 412,613 |
| (SOFR + 1.80%), 4.59%, 4/26/33(i) | | 175,000 | 175,792 |
| 4.95%, 6/01/45 | | 220,000 | 220,232 |
| (3M USD LIBOR + 1.58%), 4.26%, 2/22/48(i) | | 151,000 | 140,241 |
| (3M USD LIBOR + 1.46%), 4.03%, 7/24/48(i) | | 52,000 | 46,605 |
| (3M USD LIBOR + 1.22%), 3.90%, 1/23/49(i) | | 24,000 | 21,160 |
| (SOFR + 2.44%), 3.11%, 4/22/51(i) | | 50,000 | 38,488 |
| Morgan Stanley, | | | |
| (SOFR + 0.62%), 0.73%, 4/05/24(i) | | 1,602,000 | 1,559,839 |
| (3M USD LIBOR + 0.85%), 3.74%, 4/24/24(i) | | 475,000 | 474,779 |
| (SOFR + 1.16%), 3.62%, 4/17/25(i) | | 710,000 | 706,329 |
| 3.88%, 1/27/26 | | 87,000 | 86,240 |
| (SOFR + 1.99%), 2.19%, 4/28/26(i) | | 460,000 | 433,833 |
| 3.63%, 1/20/27 | | 543,000 | 529,526 |
| (SOFR + 0.88%), 1.59%, 5/04/27(i) | | 190,000 | 170,850 |
| (SOFR + 0.86%), 1.51%, 7/20/27(i) | | 119,000 | 105,935 |
| (SOFR + 1.61%), 4.21%, 4/20/28(i) | | 165,000 | 163,676 |
| (3M USD LIBOR + 1.34%), 3.59%, 7/22/28(i) | | 444,000 | 425,273 |
| (3M USD LIBOR + 1.14%), 3.77%, 1/24/29(i) | | 370,000 | 356,734 |
| (3M USD LIBOR + 1.63%), 4.43%, 1/23/30(i) | | 838,000 | 829,248 |
| (SOFR + 1.14%), 2.70%, 1/22/31(i) | | 1,111,000 | 976,426 |
| (SOFR + 3.12%), 3.62%, 4/01/31(i) | | 420,000 | 392,996 |
| (SOFR + 1.02%), 1.93%, 4/28/32(i) | | 63,000 | 50,748 |
| | | Par (a) | Value |
| Banks (Continued) |
| Morgan Stanley, | | | |
| (SOFR + 1.18%), 2.24%, 7/21/32(i) | | $ 265,000 | $ 218,739 |
| (SOFR + 1.20%), 2.51%, 10/20/32(i) | | 314,000 | 263,969 |
| (SOFR + 1.29%), 2.94%, 1/21/33(i) | | 376,000 | 327,767 |
|
| State Street Corp., (3M USD LIBOR + 2.54%), 5.63%, 12/15/23(i)(j) | | 292,000 | 279,056 |
| U.S. Bancorp, 1.45%, 5/12/25 | | 250,000 | 235,491 |
| Wells Fargo & Co., | | | |
| 3.75%, 1/24/24 | | 160,000 | 161,180 |
| (SOFR + 1.32%), 3.91%, 4/25/26(i) | | 460,000 | 456,766 |
| (SOFR + 2.00%), 2.19%, 4/30/26(i) | | 570,000 | 538,414 |
| 3.00%, 10/23/26 | | 80,000 | 76,388 |
| 4.30%, 7/22/27 | | 270,000 | 269,658 |
| (3M USD LIBOR + 1.31%), 3.58%, 5/22/28(i) | | 300,000 | 287,543 |
| (SOFR + 2.10%), 2.39%, 6/02/28(i) | | 130,000 | 118,265 |
| 4.15%, 1/24/29 | | 820,000 | 810,096 |
| (SOFR + 1.43%), 2.88%, 10/30/30(i) | | 250,000 | 224,088 |
| (SOFR + 4.03%), 4.48%, 4/04/31(i) | | 333,000 | 331,647 |
| (SOFR + 1.50%), 3.35%, 3/02/33(i) | | 80,000 | 72,688 |
| 4.40%, 6/14/46 | | 40,000 | 37,091 |
| 4.75%, 12/07/46 | | 370,000 | 362,361 |
| (SOFR + 4.50%), 5.01%, 4/04/51(i) | | 2,210,000 | 2,298,457 |
| (SOFR + 2.13%), 4.61%, 4/25/53(i) | | 100,000 | 98,457 |
| | | | 49,595,058 |
| Beverages – 0.1% |
| Coca-Cola (The) Co., | | | |
| 3.38%, 3/25/27 | | 280,000 | 279,398 |
| 1.45%, 6/01/27(h) | | 90,000 | 81,980 |
| 2.50%, 6/01/40 | | 50,000 | 40,045 |
| PepsiCo, Inc., | | | |
| 0.75%, 5/01/23 | | 120,000 | 118,048 |
| 2.25%, 3/19/25 | | 10,000 | 9,759 |
| 2.63%, 3/19/27 | | 10,000 | 9,644 |
| 1.63%, 5/01/30 | | 40,000 | 34,161 |
| 2.88%, 10/15/49 | | 40,000 | 32,480 |
| | | | 605,515 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Biotechnology – 0.1% |
| Amgen, Inc., | | | |
| 4.40%, 5/01/45 | | $252,000 | $234,217 |
| 4.20%, 2/22/52 | | 34,000 | 30,609 |
| Biogen, Inc., | | | |
| 2.25%, 5/01/30 | | 258,000 | 215,676 |
| 3.15%, 5/01/50(h) | | 75,000 | 52,187 |
| Gilead Sciences, Inc., | | | |
| 4.75%, 3/01/46 | | 361,000 | 357,442 |
| 4.15%, 3/01/47 | | 54,000 | 49,347 |
| | | | 939,478 |
| Building Materials – 0.0%(f) |
| Carrier Global Corp., | | | |
| 2.24%, 2/15/25 | | 37,000 | 35,419 |
| 3.58%, 4/05/50 | | 10,000 | 8,021 |
|
| Masonite International Corp., 5.38%, 2/01/28(b) | | 33,000 | 31,594 |
| Owens Corning, 3.95%, 8/15/29 | | 16,000 | 15,647 |
| Standard Industries, Inc., | | | |
| 5.00%, 2/15/27(b) | | 33,000 | 31,268 |
| 4.75%, 1/15/28(b) | | 10,000 | 9,200 |
| | | | 131,149 |
| Chemicals – 0.1% |
| DuPont de Nemours, Inc., 4.49%, 11/15/25 | | 278,000 | 282,875 |
| Ecolab, Inc., 2.75%, 8/18/55 | | 97,000 | 71,003 |
| LYB International Finance III LLC, 4.20%, 5/01/50 | | 108,000 | 94,105 |
| RPM International, Inc., 4.25%, 1/15/48 | | 3,000 | 2,749 |
| Sherwin-Williams (The) Co., 2.30%, 5/15/30 | | 155,000 | 134,509 |
| Westlake Corp., 3.38%, 8/15/61 | | 103,000 | 73,858 |
| | | | 659,099 |
| Commercial Services – 0.2% |
| Cintas Corp. No. 2, 3.70%, 4/01/27 | | 20,000 | 19,869 |
| Global Payments, Inc., | | | |
| 1.20%, 3/01/26 | | 359,000 | 322,478 |
| 4.80%, 4/01/26 | | 237,000 | 242,401 |
| 2.15%, 1/15/27 | | 80,000 | 72,532 |
| 4.45%, 6/01/28 | | 45,000 | 44,792 |
| 3.20%, 8/15/29 | | 208,000 | 189,207 |
| 2.90%, 5/15/30 | | 166,000 | 146,138 |
|
| Herc Holdings, Inc., 5.50%, 7/15/27(b) | | 72,000 | 70,538 |
| Moody's Corp., | | | |
| 3.25%, 1/15/28 | | 50,000 | 48,255 |
| | | Par (a) | Value |
| Commercial Services (Continued) |
| Moody's Corp., | | | |
| 3.75%, 2/25/52 | | $ 2,000 | $ 1,702 |
| 3.10%, 11/29/61 | | 111,000 | 78,684 |
| PayPal Holdings, Inc., | | | |
| 1.35%, 6/01/23 | | 90,000 | 88,824 |
| 1.65%, 6/01/25 | | 90,000 | 85,073 |
| 2.30%, 6/01/30 | | 150,000 | 131,022 |
|
| S&P Global, Inc., 4.75%, 8/01/28(b) | | 174,000 | 180,469 |
| | | | 1,721,984 |
| Computers – 0.3% |
| Apple, Inc., | | | |
| 0.75%, 5/11/23 | | 39,000 | 38,432 |
| 1.13%, 5/11/25(h) | | 260,000 | 245,086 |
| 2.45%, 8/04/26 | | 100,000 | 96,578 |
| 2.90%, 9/12/27 | | 460,000 | 444,697 |
| 3.85%, 5/04/43 | | 200,000 | 189,845 |
| 2.55%, 8/20/60 | | 134,000 | 94,052 |
| 2.80%, 2/08/61 | | 108,000 | 78,961 |
| Dell International LLC/EMC Corp., | | | |
| 8.35%, 7/15/46(h) | | 10,000 | 13,344 |
| 3.45%, 12/15/51(b) | | 85,000 | 59,937 |
|
| Hewlett Packard Enterprise Co., 6.35%, 10/15/45 | | 30,000 | 31,751 |
| HP, Inc., | | | |
| 2.65%, 6/17/31 | | 50,000 | 41,285 |
| 6.00%, 9/15/41 | | 22,000 | 22,885 |
| International Business Machines Corp., | | | |
| 3.00%, 5/15/24 | | 270,000 | 268,704 |
| 4.25%, 5/15/49 | | 100,000 | 94,102 |
| 3.43%, 2/09/52 | | 140,000 | 115,134 |
| Leidos, Inc., | | | |
| 4.38%, 5/15/30 | | 289,000 | 279,209 |
| 2.30%, 2/15/31 | | 172,000 | 141,684 |
|
| Seagate HDD Cayman, 4.09%, 6/01/29 | | 70,000 | 62,125 |
| Western Digital Corp., 2.85%, 2/01/29 | | 296,000 | 262,165 |
| | | | 2,579,976 |
| Cosmetics/Personal Care – 0.1% |
| GSK Consumer Healthcare Capital U.S. LLC, 3.63%, 3/24/32(b) | | 480,000 | 450,891 |
| Procter & Gamble (The) Co., | | | |
| 2.80%, 3/25/27 | | 20,000 | 19,426 |
| 3.00%, 3/25/30 | | 60,000 | 56,958 |
| | | | 527,275 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Distribution/Wholesale – 0.0%(f) |
| KAR Auction Services, Inc., 5.13%, 6/01/25(b)(h) | | $ 59,000 | $ 59,664 |
| Diversified Financial Services – 0.4% |
| Air Lease Corp., 3.38%, 7/01/25 | | 70,000 | 67,546 |
| American Express Co., | | | |
| 3.38%, 5/03/24 | | 170,000 | 169,864 |
| 2.50%, 7/30/24 | | 410,000 | 401,369 |
| 4.20%, 11/06/25 | | 70,000 | 71,653 |
| 2.55%, 3/04/27 | | 77,000 | 72,483 |
| 4.05%, 5/03/29 | | 210,000 | 208,036 |
| Blackstone Private Credit Fund, | | | |
| 3.25%, 3/15/27(b) | | 217,000 | 194,575 |
| 4.00%, 1/15/29(b) | | 154,000 | 137,981 |
| Capital One Financial Corp., | | | |
| 3.90%, 1/29/24 | | 267,000 | 268,285 |
| (SOFR + 1.79%), 3.27%, 3/01/30(i) | | 138,000 | 125,455 |
| Charles Schwab (The) Corp., | | | |
| (5Y US Treasury CMT + 3.17%), 4.00%, 6/01/26(i)(j) | | 75,000 | 68,006 |
| 3.20%, 3/02/27 | | 4,000 | 3,908 |
| (10Y US Treasury CMT + 3.08%), 4.00%, 12/01/30(i)(j) | | 205,000 | 173,762 |
|
| Discover Financial Services, 4.50%, 1/30/26 | | 7,000 | 7,083 |
| Intercontinental Exchange, Inc., | | | |
| 3.75%, 9/21/28 | | 51,000 | 50,328 |
| 2.10%, 6/15/30 | | 157,000 | 135,764 |
| 1.85%, 9/15/32 | | 64,000 | 51,734 |
|
| Mastercard, Inc., 3.85%, 3/26/50 | | 300,000 | 283,201 |
| Navient Corp., | | | |
| 7.25%, 9/25/23 | | 19,000 | 19,475 |
| 5.88%, 10/25/24 | | 28,000 | 27,790 |
| 6.75%, 6/25/25 | | 30,000 | 29,925 |
| 6.75%, 6/15/26 | | 28,000 | 27,511 |
|
| Nuveen LLC, 4.00%, 11/01/28(b) | | 100,000 | 99,692 |
| Synchrony Financial, | | | |
| 4.50%, 7/23/25 | | 2,000 | 2,009 |
| 3.70%, 8/04/26 | | 44,000 | 42,079 |
|
| USAA Capital Corp., 2.13%, 5/01/30(b) | | 150,000 | 131,678 |
| Vanguard Group (The), Inc., 3.05%, 8/22/50(k) | | 170,000 | 132,249 |
| | | Par (a) | Value |
| Diversified Financial Services (Continued) |
| Visa, Inc., | | | |
| 3.15%, 12/14/25 | | $230,000 | $ 228,382 |
| 4.30%, 12/14/45 | | 170,000 | 170,688 |
| | | | 3,402,511 |
| Electric – 1.1% |
| AEP Texas, Inc., | | | |
| 3.95%, 6/01/28 | | 212,000 | 208,557 |
| 3.45%, 1/15/50 | | 28,000 | 22,319 |
| 3.45%, 5/15/51 | | 124,000 | 97,732 |
| AEP Transmission Co. LLC, | | | |
| 3.80%, 6/15/49 | | 65,000 | 57,399 |
| 3.15%, 9/15/49 | | 101,000 | 78,907 |
| 3.65%, 4/01/50 | | 144,000 | 123,524 |
| 2.75%, 8/15/51 | | 10,000 | 7,336 |
| Alabama Power Co., | | | |
| 3.75%, 3/01/45 | | 101,000 | 86,784 |
| 3.70%, 12/01/47 | | 53,000 | 46,209 |
| 3.45%, 10/01/49 | | 47,000 | 38,563 |
| Ameren Illinois Co., | | | |
| 3.80%, 5/15/28 | | 46,000 | 45,769 |
| 3.25%, 3/15/50 | | 116,000 | 94,317 |
|
| American Transmission Systems, Inc., 2.65%, 1/15/32(b) | | 203,000 | 176,561 |
| Baltimore Gas and Electric Co., | | | |
| 3.75%, 8/15/47 | | 62,000 | 54,661 |
| 3.20%, 9/15/49 | | 40,000 | 31,896 |
| 2.90%, 6/15/50 | | 164,000 | 124,777 |
| CenterPoint Energy Houston Electric LLC, | | | |
| 2.35%, 4/01/31 | | 75,000 | 66,209 |
| 4.25%, 2/01/49 | | 2,000 | 1,978 |
| 3.35%, 4/01/51 | | 125,000 | 106,870 |
| 3.60%, 3/01/52 | | 56,000 | 49,578 |
|
| Cleveland Electric Illuminating (The) Co., 3.50%, 4/01/28(b) | | 100,000 | 94,141 |
| Commonwealth Edison Co., | | | |
| 4.00%, 3/01/49 | | 67,000 | 61,984 |
| 3.00%, 3/01/50 | | 52,000 | 40,974 |
| 3.13%, 3/15/51 | | 55,000 | 44,192 |
| 3.85%, 3/15/52 | | 32,000 | 29,332 |
| Consolidated Edison Co. of New York, Inc., | | | |
| 3.35%, 4/01/30 | | 50,000 | 47,302 |
| 3.95%, 4/01/50 | | 20,000 | 18,077 |
| Consumers Energy Co., | | | |
| 4.05%, 5/15/48 | | 54,000 | 51,407 |
| 3.75%, 2/15/50 | | 151,000 | 137,759 |
| 3.10%, 8/15/50 | | 41,000 | 32,854 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Electric (Continued) |
| Consumers Energy Co., | | | |
| 3.50%, 8/01/51 | | $ 75,000 | $ 65,122 |
| DTE Electric Co., | | | |
| 4.05%, 5/15/48 | | 10,000 | 9,470 |
| 3.95%, 3/01/49 | | 160,000 | 147,744 |
| 3.65%, 3/01/52(h) | | 36,000 | 31,933 |
| Duke Energy Carolinas LLC, | | | |
| 3.95%, 11/15/28 | | 28,000 | 27,983 |
| 3.88%, 3/15/46 | | 59,000 | 53,466 |
| 3.95%, 3/15/48 | | 122,000 | 111,128 |
| 3.55%, 3/15/52 | | 112,000 | 96,506 |
| Duke Energy Florida LLC, | | | |
| 3.80%, 7/15/28 | | 40,000 | 39,452 |
| 2.50%, 12/01/29 | | 325,000 | 293,768 |
| Duke Energy Progress LLC, | | | |
| 3.45%, 3/15/29 | | 233,000 | 223,783 |
| 2.50%, 8/15/50 | | 100,000 | 71,472 |
|
| Edison International, 4.95%, 4/15/25 | | 129,000 | 131,241 |
| Entergy Louisiana LLC, 4.20%, 9/01/48 | | 148,000 | 141,456 |
| Exelon Corp., | | | |
| 2.75%, 3/15/27(b)(h) | | 50,000 | 47,237 |
| 5.10%, 6/15/45 | | 16,000 | 16,171 |
| 4.70%, 4/15/50 | | 52,000 | 50,533 |
| 4.10%, 3/15/52(b) | | 55,000 | 48,835 |
| FirstEnergy Corp., | | | |
| 2.05%, 3/01/25 | | 22,000 | 20,735 |
| 1.60%, 1/15/26 | | 40,000 | 36,542 |
| 4.40%, 7/15/27 | | 499,000 | 484,125 |
| 2.65%, 3/01/30 | | 142,000 | 120,420 |
| 2.25%, 9/01/30 | | 56,000 | 46,760 |
| 7.38%, 11/15/31 | | 410,000 | 470,192 |
| 5.35%, 7/15/47 | | 90,000 | 84,123 |
| FirstEnergy Transmission LLC, | | | |
| 4.35%, 1/15/25(b) | | 285,000 | 284,393 |
| 4.55%, 4/01/49(b) | | 246,000 | 211,998 |
| Florida Power & Light Co., | | | |
| 5.25%, 2/01/41 | | 5,000 | 5,443 |
| 4.05%, 10/01/44 | | 33,000 | 31,581 |
| 3.70%, 12/01/47 | | 125,000 | 114,262 |
| 3.95%, 3/01/48 | | 105,000 | 99,227 |
| 3.99%, 3/01/49 | | 58,000 | 55,117 |
| 3.15%, 10/01/49 | | 110,000 | 91,013 |
| 2.88%, 12/04/51 | | 50,000 | 39,140 |
| MidAmerican Energy Co., | | | |
| 3.10%, 5/01/27 | | 35,000 | 33,992 |
| 3.65%, 4/15/29 | | 589,000 | 581,003 |
| 4.25%, 7/15/49 | | 85,000 | 82,475 |
| 3.15%, 4/15/50 | | 40,000 | 32,425 |
| | | Par (a) | Value |
| Electric (Continued) |
|
| Mid-Atlantic Interstate Transmission LLC, 4.10%, 5/15/28(b) | | $ 27,000 | $ 26,377 |
| Northern States Power Co., | | | |
| 2.25%, 4/01/31(h) | | 5,000 | 4,391 |
| 2.90%, 3/01/50 | | 50,000 | 39,108 |
| 2.60%, 6/01/51 | | 104,000 | 77,516 |
| NRG Energy, Inc., | | | |
| 2.45%, 12/02/27(b) | | 265,000 | 234,730 |
| 5.75%, 1/15/28 | | 33,000 | 32,258 |
| 5.25%, 6/15/29(b) | | 47,000 | 44,268 |
|
| NSTAR Electric Co., 3.95%, 4/01/30 | | 28,000 | 27,795 |
| Ohio Power Co., | | | |
| 1.63%, 1/15/31 | | 107,000 | 87,317 |
| 4.15%, 4/01/48 | | 14,000 | 12,793 |
| 4.00%, 6/01/49 | | 45,000 | 39,900 |
| Oncor Electric Delivery Co. LLC, | | | |
| 5.75%, 3/15/29 | | 4,000 | 4,390 |
| 4.10%, 11/15/48 | | 51,000 | 49,065 |
| 3.80%, 6/01/49 | | 69,000 | 63,494 |
| 5.35%, 10/01/52 | | 24,000 | 27,033 |
| Pacific Gas and Electric Co., | | | |
| 2.10%, 8/01/27 | | 50,000 | 43,072 |
| 2.50%, 2/01/31 | | 193,000 | 152,755 |
| 3.30%, 8/01/40 | | 20,000 | 14,576 |
| 3.50%, 8/01/50 | | 20,000 | 13,942 |
| PECO Energy Co., | | | |
| 3.00%, 9/15/49 | | 65,000 | 51,061 |
| 3.05%, 3/15/51 | | 99,000 | 78,871 |
|
| Progress Energy, Inc., 7.75%, 3/01/31 | | 180,000 | 218,889 |
| Public Service Electric and Gas Co., | | | |
| 3.65%, 9/01/28 | | 3,000 | 2,966 |
| 3.20%, 5/15/29 | | 50,000 | 47,775 |
| 2.05%, 8/01/50 | | 80,000 | 53,369 |
| 3.00%, 3/01/51 | | 42,000 | 33,239 |
| Southern California Edison Co., | | | |
| 3.70%, 8/01/25 | | 28,000 | 27,931 |
| 2.25%, 6/01/30 | | 262,000 | 224,036 |
|
| Southwestern Public Service Co., 3.15%, 5/01/50 | | 145,000 | 116,154 |
| Tampa Electric Co., | | | |
| 4.45%, 6/15/49 | | 17,000 | 16,521 |
| 3.45%, 3/15/51 | | 92,000 | 75,718 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Electric (Continued) |
|
| Trans-Allegheny Interstate Line Co., 3.85%, 6/01/25(b) | | $299,000 | $ 296,964 |
| Virginia Electric and Power Co., | | | |
| 3.15%, 1/15/26 | | 37,000 | 36,252 |
| 3.80%, 4/01/28 | | 37,000 | 36,638 |
| 6.00%, 1/15/36 | | 25,000 | 28,278 |
| 6.00%, 5/15/37 | | 42,000 | 47,897 |
| 4.00%, 1/15/43 | | 30,000 | 27,494 |
| Vistra Operations Co. LLC, | | | |
| 5.50%, 9/01/26(b) | | 64,000 | 63,776 |
| 5.63%, 2/15/27(b) | | 54,000 | 53,190 |
| 5.00%, 7/31/27(b) | | 53,000 | 50,483 |
| 4.30%, 7/15/29(b) | | 310,000 | 287,904 |
| | | | 9,480,420 |
| Electrical Component & Equipment – 0.0%(f) |
| Emerson Electric Co., 2.80%, 12/21/51 | | 400,000 | 304,459 |
| Electronics – 0.0%(f) |
| Agilent Technologies, Inc., | | | |
| 3.05%, 9/22/26 | | 81,000 | 78,420 |
| 2.75%, 9/15/29 | | 43,000 | 38,571 |
| 2.10%, 6/04/30 | | 152,000 | 127,068 |
|
| Honeywell International, Inc., 1.35%, 6/01/25 | | 70,000 | 66,250 |
| | | | 310,309 |
| Entertainment – 0.2% |
| Caesars Entertainment, Inc., 4.63%, 10/15/29(b)(h) | | 24,000 | 20,580 |
| Cedar Fair L.P., 5.25%, 7/15/29 | | 43,000 | 40,689 |
| Cedar Fair L.P./Canada's Wonderland Co./Magnum Management Corp./Millennium Operations LLC, | | | |
| 5.50%, 5/01/25(b) | | 39,000 | 39,195 |
| 5.38%, 4/15/27(h) | | 51,000 | 49,594 |
| Churchill Downs, Inc., | | | |
| 5.50%, 4/01/27(b) | | 72,000 | 70,697 |
| 4.75%, 1/15/28(b) | | 38,000 | 35,579 |
| Magallanes, Inc., | | | |
| 3.43%, 3/15/24(b) | | 147,000 | 146,027 |
| 3.76%, 3/15/27(b)(h) | | 80,000 | 77,372 |
| 4.05%, 3/15/29(b) | | 140,000 | 133,681 |
| 4.28%, 3/15/32(b) | | 610,000 | 566,626 |
| 5.05%, 3/15/42(b) | | 30,000 | 27,331 |
| 5.14%, 3/15/52(b) | | 450,000 | 401,189 |
| | | Par (a) | Value |
| Entertainment (Continued) |
| Six Flags Entertainment Corp., | | | |
| 4.88%, 7/31/24(b) | | $ 64,000 | $ 63,744 |
| 5.50%, 4/15/27(b)(h) | | 38,000 | 37,240 |
|
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.13%, 10/01/29(b) | | 53,000 | 46,408 |
| | | | 1,755,952 |
| Environmental Control – 0.1% |
| Republic Services, Inc., | | | |
| 2.50%, 8/15/24 | | 70,000 | 68,485 |
| 3.95%, 5/15/28 | | 88,000 | 87,780 |
| Waste Management, Inc., | | | |
| 1.15%, 3/15/28(h) | | 208,000 | 178,642 |
| 2.00%, 6/01/29 | | 49,000 | 43,576 |
|
| Waste Pro USA, Inc., 5.50%, 2/15/26(b)(h) | | 28,000 | 24,909 |
| | | | 403,392 |
| Food – 0.1% |
| Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertsons LLC, | | | |
| 5.88%, 2/15/28(b) | | 58,000 | 56,333 |
| 4.88%, 2/15/30(b) | | 13,000 | 11,766 |
|
| Hershey (The) Co., 0.90%, 6/01/25 | | 30,000 | 28,012 |
| JBS USA LUX S.A./JBS USA Finance, Inc., 6.75%, 2/15/28(b) | | 30,000 | 30,975 |
| Kraft Heinz Foods Co., 3.00%, 6/01/26 | | 102,000 | 97,495 |
| Mars, Inc., | | | |
| 2.70%, 4/01/25(b) | | 90,000 | 88,227 |
| 3.20%, 4/01/30(b) | | 180,000 | 169,788 |
| 2.38%, 7/16/40(b) | | 200,000 | 150,237 |
|
| Mondelez International, Inc., 1.50%, 5/04/25 | | 250,000 | 236,192 |
| Performance Food Group, Inc., 5.50%, 10/15/27(b) | | 64,000 | 62,107 |
| Post Holdings, Inc., | | | |
| 5.63%, 1/15/28(b)(h) | | 59,000 | 55,785 |
| 5.50%, 12/15/29(b) | | 47,000 | 42,770 |
| | | | 1,029,687 |
| Food Service – 0.0%(f) |
| Aramark Services, Inc., 5.00%, 2/01/28(b) | | 74,000 | 69,009 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Forest Products & Paper – 0.0%(f) |
| Georgia-Pacific LLC, | | | |
| 3.60%, 3/01/25(b) | | $ 14,000 | $ 14,009 |
| 8.88%, 5/15/31 | | 13,000 | 17,456 |
|
| International Paper Co., 6.00%, 11/15/41 | | 50,000 | 55,368 |
| | | | 86,833 |
| Gas – 0.0%(f) |
| Atmos Energy Corp., 4.13%, 3/15/49 | | 40,000 | 37,751 |
| CenterPoint Energy Resources Corp., 1.75%, 10/01/30 | | 129,000 | 106,780 |
| ONE Gas, Inc., 2.00%, 5/15/30 | | 35,000 | 29,886 |
| Piedmont Natural Gas Co., Inc., 2.50%, 3/15/31 | | 90,000 | 77,939 |
| | | | 252,356 |
| Healthcare - Products – 0.1% |
| Abbott Laboratories, | | | |
| 3.75%, 11/30/26 | | 390,000 | 394,092 |
| 4.90%, 11/30/46 | | 10,000 | 10,928 |
|
| Baxter International, Inc., 3.13%, 12/01/51(b) | | 43,000 | 31,979 |
| Boston Scientific Corp., 2.65%, 6/01/30 | | 180,000 | 159,928 |
| Medtronic Global Holdings SCA, | | | |
| 1.50%, 7/02/39 | EUR | 100,000 | 86,531 |
| 1.75%, 7/02/49 | EUR | 100,000 | 81,022 |
|
| Mozart Debt Merger Sub, Inc., 3.88%, 4/01/29(b) | | 225,000 | 196,596 |
| Thermo Fisher Scientific, Inc., 2.80%, 10/15/41 | | 75,000 | 59,989 |
| | | | 1,021,065 |
| Healthcare - Services – 0.6% |
| Aetna, Inc., | | | |
| 2.80%, 6/15/23 | | 90,000 | 89,749 |
| 6.63%, 6/15/36 | | 61,000 | 71,356 |
| 4.75%, 3/15/44 | | 2,000 | 1,942 |
| Anthem, Inc., | | | |
| 3.65%, 12/01/27 | | 300,000 | 293,424 |
| 4.38%, 12/01/47 | | 87,000 | 82,865 |
| 4.55%, 3/01/48 | | 57,000 | 55,354 |
|
| Charles River Laboratories International, Inc., 4.25%, 5/01/28(b) | | 7,000 | 6,682 |
| HCA, Inc., | | | |
| 5.25%, 4/15/25 | | 641,000 | 660,304 |
| 5.25%, 6/15/26 | | 97,000 | 99,964 |
| | | Par (a) | Value |
| Healthcare - Services (Continued) |
| HCA, Inc., | | | |
| 2.38%, 7/15/31 | | $327,000 | $ 269,010 |
| 3.63%, 3/15/32(b) | | 425,000 | 380,889 |
| 4.63%, 3/15/52(b)(h) | | 344,000 | 300,261 |
| Humana, Inc., | | | |
| 4.50%, 4/01/25 | | 43,000 | 43,850 |
| 3.95%, 3/15/27 | | 140,000 | 138,766 |
| 3.70%, 3/23/29 | | 310,000 | 297,421 |
| 3.13%, 8/15/29 | | 310,000 | 286,014 |
| 4.88%, 4/01/30 | | 95,000 | 97,475 |
| 2.15%, 2/03/32 | | 50,000 | 41,155 |
|
| Select Medical Corp., 6.25%, 8/15/26(b) | | 22,000 | 21,835 |
| Tenet Healthcare Corp., | | | |
| 4.88%, 1/01/26(b) | | 128,000 | 125,334 |
| 6.25%, 2/01/27(b)(h) | | 183,000 | 181,627 |
| 5.13%, 11/01/27(b) | | 20,000 | 19,419 |
| 4.38%, 1/15/30(b) | | 78,000 | 70,970 |
| UnitedHealth Group, Inc., | | | |
| 3.50%, 6/15/23 | | 30,000 | 30,331 |
| 3.75%, 7/15/25 | | 50,000 | 50,452 |
| 1.25%, 1/15/26(h) | | 40,000 | 36,916 |
| 3.85%, 6/15/28 | | 130,000 | 130,156 |
| 3.88%, 12/15/28 | | 110,000 | 110,109 |
| 2.00%, 5/15/30 | | 40,000 | 34,687 |
| 2.30%, 5/15/31 | | 30,000 | 26,216 |
| 4.63%, 7/15/35 | | 197,000 | 201,768 |
| 2.75%, 5/15/40 | | 90,000 | 72,283 |
| 4.75%, 7/15/45 | | 37,000 | 38,620 |
| 4.25%, 6/15/48 | | 40,000 | 38,795 |
| 4.45%, 12/15/48 | | 77,000 | 76,986 |
| 3.70%, 8/15/49 | | 130,000 | 115,967 |
| 2.90%, 5/15/50 | | 143,000 | 110,643 |
| 3.25%, 5/15/51 | | 444,000 | 366,752 |
| 3.88%, 8/15/59 | | 70,000 | 62,591 |
| 3.13%, 5/15/60 | | 20,000 | 15,348 |
| | | | 5,154,286 |
| Household Products/Wares – 0.0%(f) |
| Kimberly-Clark Corp., 3.10%, 3/26/30 | | 30,000 | 28,411 |
| Insurance – 0.2% |
| American International Group, Inc., | | | |
| 2.50%, 6/30/25 | | 60,000 | 57,636 |
| 4.75%, 4/01/48 | | 90,000 | 92,247 |
| Aon Corp., | | | |
| 4.50%, 12/15/28 | | 144,000 | 146,538 |
| 3.75%, 5/02/29 | | 162,000 | 157,915 |
| 2.80%, 5/15/30 | | 42,000 | 37,361 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Insurance (Continued) |
| Berkshire Hathaway Finance Corp., | | | |
| 4.25%, 1/15/49 | | $ 150,000 | $ 145,157 |
| 3.85%, 3/15/52 | | 55,000 | 48,929 |
|
| Guardian Life Global Funding, 1.10%, 6/23/25(b) | | 50,000 | 46,572 |
| Hartford Financial Services Group (The), Inc., 3.60%, 8/19/49 | | 32,000 | 27,046 |
| Marsh & McLennan Cos., Inc., 2.25%, 11/15/30 | | 176,000 | 152,457 |
| MassMutual Global Funding II, 0.85%, 6/09/23(b) | | 330,000 | 323,104 |
| MetLife, Inc., 6.40%, 12/15/36 | | 100,000 | 103,721 |
| Metropolitan Life Global Funding I, 0.90%, 6/08/23(b) | | 250,000 | 244,918 |
| New York Life Global Funding, 0.95%, 6/24/25(b) | | 80,000 | 74,024 |
| Principal Life Global Funding II, 1.25%, 6/23/25(b) | | 40,000 | 37,120 |
| Teachers Insurance & Annuity Association of America, 4.90%, 9/15/44(b) | | 80,000 | 80,728 |
| Willis North America, Inc., 3.60%, 5/15/24 | | 42,000 | 41,834 |
| | | | 1,817,307 |
| Internet – 0.4% |
| Alphabet, Inc., | | | |
| 0.45%, 8/15/25 | | 30,000 | 27,653 |
| 0.80%, 8/15/27 | | 50,000 | 43,947 |
| 1.10%, 8/15/30 | | 60,000 | 49,049 |
| 2.05%, 8/15/50 | | 110,000 | 75,691 |
| Amazon.com, Inc., | | | |
| 0.80%, 6/03/25 | | 130,000 | 121,387 |
| 3.30%, 4/13/27(h) | | 50,000 | 49,593 |
| 1.20%, 6/03/27 | | 380,000 | 340,205 |
| 3.15%, 8/22/27 | | 140,000 | 137,019 |
| 3.45%, 4/13/29 | | 110,000 | 108,408 |
| 1.50%, 6/03/30 | | 70,000 | 58,824 |
| 2.10%, 5/12/31 | | 80,000 | 69,640 |
| 3.60%, 4/13/32 | | 460,000 | 451,012 |
| 4.05%, 8/22/47 | | 140,000 | 136,388 |
| 2.50%, 6/03/50 | | 1,120,000 | 827,697 |
| 4.25%, 8/22/57 | | 240,000 | 238,617 |
| 4.10%, 4/13/62 | | 40,000 | 38,179 |
| | | Par (a) | Value |
| Internet (Continued) |
|
| eBay, Inc., 1.40%, 5/10/26 | | $ 40,000 | $ 36,406 |
| Morgan Stanley Domestic Holdings, Inc., 3.80%, 8/24/27 | | 79,000 | 77,253 |
| | | | 2,886,968 |
| Iron/Steel – 0.0%(f) |
| Commercial Metals Co., 4.38%, 3/15/32 | | 68,000 | 60,690 |
| Nucor Corp., 3.95%, 5/01/28 | | 24,000 | 23,911 |
| | | | 84,601 |
| Lodging – 0.1% |
| Las Vegas Sands Corp., | | | |
| 3.20%, 8/08/24 | | 100,000 | 96,036 |
| 2.90%, 6/25/25 | | 380,000 | 349,977 |
| MGM Resorts International, | | | |
| 5.75%, 6/15/25 | | 10,000 | 9,935 |
| 4.63%, 9/01/26 | | 8,000 | 7,532 |
| 5.50%, 4/15/27(h) | | 10,000 | 9,740 |
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., | | | |
| 5.50%, 3/01/25(b) | | 131,000 | 126,742 |
| 5.25%, 5/15/27(b)(h) | | 65,000 | 59,779 |
| | | | 659,741 |
| Machinery - Diversified – 0.1% |
| CNH Industrial Capital LLC, 4.20%, 1/15/24 | | 405,000 | 409,924 |
| Deere & Co., | | | |
| 3.10%, 4/15/30 | | 30,000 | 28,547 |
| 3.75%, 4/15/50(h) | | 200,000 | 189,370 |
| Otis Worldwide Corp., | | | |
| 2.06%, 4/05/25 | | 50,000 | 47,581 |
| 2.57%, 2/15/30 | | 119,000 | 104,361 |
| | | | 779,783 |
| Media – 1.1% |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | |
| 5.38%, 6/01/29(b) | | 74,000 | 70,115 |
| 4.75%, 3/01/30(b) | | 58,000 | 51,837 |
| Charter Communications Operating LLC/Charter Communications Operating Capital, | | | |
| 4.91%, 7/23/25 | | 570,000 | 580,522 |
| 4.20%, 3/15/28 | | 90,000 | 86,961 |
| 2.25%, 1/15/29 | | 31,000 | 26,416 |
| 5.05%, 3/30/29 | | 480,000 | 477,443 |
| 4.40%, 4/01/33 | | 578,000 | 526,889 |
| 5.38%, 4/01/38 | | 60,000 | 55,545 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Media (Continued) |
| Charter Communications Operating LLC/Charter Communications Operating Capital, | | | |
| 3.50%, 6/01/41 | | $300,000 | $219,224 |
| 3.50%, 3/01/42 | | 60,000 | 43,250 |
| 6.48%, 10/23/45 | | 521,000 | 525,117 |
| 5.38%, 5/01/47 | | 161,000 | 144,028 |
| 5.75%, 4/01/48 | | 226,000 | 212,192 |
| 5.13%, 7/01/49 | | 216,000 | 185,487 |
| 4.80%, 3/01/50 | | 30,000 | 24,578 |
| 3.90%, 6/01/52 | | 500,000 | 360,749 |
| 6.83%, 10/23/55 | | 107,000 | 112,394 |
| 3.85%, 4/01/61 | | 82,000 | 55,876 |
| 4.40%, 12/01/61 | | 146,000 | 109,141 |
| 3.95%, 6/30/62 | | 185,000 | 127,107 |
| 5.50%, 4/01/63 | | 110,000 | 96,187 |
|
| Clear Channel Outdoor Holdings, Inc., 5.13%, 8/15/27(b) | | 74,000 | 69,538 |
| Comcast Corp., | | | |
| 3.95%, 10/15/25 | | 160,000 | 161,850 |
| 3.15%, 3/01/26 | | 50,000 | 49,099 |
| 3.30%, 4/01/27 | | 50,000 | 48,941 |
| 4.15%, 10/15/28 | | 330,000 | 331,777 |
| 3.40%, 4/01/30 | | 70,000 | 66,462 |
| 4.25%, 10/15/30 | | 620,000 | 622,303 |
| 3.25%, 11/01/39 | | 20,000 | 16,944 |
| 3.75%, 4/01/40 | | 279,000 | 250,641 |
| 3.40%, 7/15/46 | | 20,000 | 16,562 |
| 4.00%, 8/15/47 | | 52,000 | 46,938 |
| 3.97%, 11/01/47 | | 330,000 | 295,801 |
| 4.00%, 3/01/48 | | 20,000 | 18,038 |
| 4.00%, 11/01/49 | | 210,000 | 189,280 |
| 3.45%, 2/01/50 | | 30,000 | 24,724 |
| 2.80%, 1/15/51 | | 340,000 | 250,664 |
| 2.89%, 11/01/51(b) | | 207,000 | 152,638 |
| 2.45%, 8/15/52(h) | | 74,000 | 50,744 |
| 2.94%, 11/01/56(b) | | 40,000 | 28,613 |
| Cox Communications, Inc., | | | |
| 3.15%, 8/15/24(b) | | 71,000 | 70,219 |
| 3.85%, 2/01/25(b) | | 90,000 | 89,909 |
| 3.60%, 6/15/51(b)(h) | | 139,000 | 109,700 |
|
| Discovery Communications LLC, 1.90%, 3/19/27 | EUR | 240,000 | 244,466 |
| FactSet Research Systems, Inc., 3.45%, 3/01/32 | | 211,000 | 193,588 |
| Fox Corp., 5.48%, 1/25/39 | | 450,000 | 465,828 |
| iHeartCommunications, Inc., | | | |
| 6.38%, 5/01/26 | | 49,783 | 49,907 |
| | | Par (a) | Value |
| Media (Continued) |
| iHeartCommunications, Inc., | | | |
| 5.25%, 8/15/27(b) | | $ 48,000 | $ 44,880 |
| 4.75%, 1/15/28(b)(h) | | 7,000 | 6,344 |
|
| NBCUniversal Media LLC, 4.45%, 1/15/43 | | 69,000 | 66,021 |
| Nexstar Media, Inc., 5.63%, 7/15/27(b) | | 69,000 | 67,146 |
| Paramount Global, | | | |
| 4.38%, 3/15/43 | | 62,000 | 51,245 |
| 5.85%, 9/01/43 | | 70,000 | 70,740 |
|
| Sirius XM Radio, Inc., 5.50%, 7/01/29(b) | | 51,000 | 49,045 |
| TEGNA, Inc., | | | |
| 4.63%, 3/15/28 | | 13,000 | 12,509 |
| 5.00%, 9/15/29 | | 10,000 | 9,700 |
| Time Warner Cable LLC, | | | |
| 6.55%, 5/01/37 | | 50,000 | 52,358 |
| 5.88%, 11/15/40 | | 130,000 | 127,172 |
|
| Time Warner Entertainment Co. L.P., 8.38%, 7/15/33 | | 170,000 | 206,029 |
| Walt Disney (The) Co., | | | |
| 2.75%, 9/01/49 | | 44,000 | 32,937 |
| 4.70%, 3/23/50 | | 233,000 | 237,413 |
| | | | 9,039,771 |
| Mining – 0.0%(f) |
| Freeport-McMoRan, Inc., 5.45%, 3/15/43 | | 80,000 | 79,965 |
| Newmont Corp., 2.25%, 10/01/30 | | 156,000 | 133,173 |
| | | | 213,138 |
| Miscellaneous Manufacturing – 0.1% |
| 3M Co., | | | |
| 2.38%, 8/26/29 | | 310,000 | 280,619 |
| 3.70%, 4/15/50 | | 100,000 | 90,919 |
|
| Eaton Corp., 4.15%, 11/02/42 | | 30,000 | 28,612 |
| GE Capital Funding LLC, 4.55%, 5/15/32 | | 255,000 | 255,525 |
| GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35 | | 200,000 | 195,474 |
| General Electric Co., 6.75%, 3/15/32 | | 11,000 | 12,850 |
| Textron, Inc., | | | |
| 3.65%, 3/15/27 | | 38,000 | 37,330 |
| 3.90%, 9/17/29 | | 122,000 | 118,283 |
| 2.45%, 3/15/31 | | 47,000 | 39,919 |
| | | | 1,059,531 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Oil & Gas – 1.6% |
| Apache Corp., | | | |
| 4.75%, 4/15/43 | | $ 100,000 | $ 86,500 |
| 4.25%, 1/15/44 | | 380,000 | 302,169 |
| BP Capital Markets America, Inc., | | | |
| 3.79%, 2/06/24 | | 228,000 | 229,972 |
| 3.19%, 4/06/25 | | 36,000 | 35,672 |
| 3.41%, 2/11/26 | | 20,000 | 19,776 |
| 3.12%, 5/04/26 | | 220,000 | 214,714 |
| 3.94%, 9/21/28 | | 240,000 | 237,462 |
| 3.63%, 4/06/30 | | 80,000 | 77,145 |
| 1.75%, 8/10/30 | | 200,000 | 166,318 |
| 3.00%, 2/24/50 | | 380,000 | 286,898 |
| 3.00%, 3/17/52 | | 110,000 | 82,368 |
| Chevron Corp., | | | |
| 1.55%, 5/11/25 | | 130,000 | 123,250 |
| 2.00%, 5/11/27 | | 40,000 | 37,031 |
| 3.08%, 5/11/50 | | 490,000 | 407,288 |
| Chevron USA, Inc., | | | |
| 3.85%, 1/15/28 | | 240,000 | 241,808 |
| 2.34%, 8/12/50 | | 55,000 | 39,023 |
|
| Citgo Holding, Inc., 9.25%, 8/01/24(b)(h) | | 41,000 | 40,744 |
| Continental Resources, Inc., | | | |
| 3.80%, 6/01/24 | | 130,000 | 130,218 |
| 4.38%, 1/15/28 | | 230,000 | 224,186 |
| 5.75%, 1/15/31(b) | | 20,000 | 20,447 |
| 4.90%, 6/01/44 | | 160,000 | 139,584 |
| Coterra Energy, Inc., | | | |
| 3.90%, 5/15/27(b) | | 280,000 | 273,459 |
| 4.38%, 3/15/29(b) | | 850,000 | 844,525 |
|
| CrownRock L.P./CrownRock Finance, Inc., 5.63%, 10/15/25(b) | | 33,000 | 33,000 |
| Devon Energy Corp., | | | |
| 8.25%, 8/01/23 | | 52,000 | 54,716 |
| 5.85%, 12/15/25 | | 120,000 | 127,211 |
| 5.25%, 10/15/27 | | 12,000 | 12,386 |
| 5.88%, 6/15/28 | | 8,000 | 8,380 |
| 4.50%, 1/15/30 | | 145,000 | 141,652 |
| 5.60%, 7/15/41 | | 220,000 | 228,788 |
| 4.75%, 5/15/42 | | 544,000 | 517,445 |
| 5.00%, 6/15/45(h) | | 503,000 | 489,660 |
| Diamondback Energy, Inc., | | | |
| 3.25%, 12/01/26 | | 504,000 | 489,920 |
| 3.50%, 12/01/29 | | 1,199,000 | 1,124,329 |
| 3.13%, 3/24/31 | | 485,000 | 432,801 |
| 4.40%, 3/24/51 | | 258,000 | 231,645 |
| 4.25%, 3/15/52 | | 124,000 | 108,524 |
| EOG Resources, Inc., | | | |
| 4.38%, 4/15/30 | | 270,000 | 277,496 |
| | | Par (a) | Value |
| Oil & Gas (Continued) |
| EOG Resources, Inc., | | | |
| 3.90%, 4/01/35 | | $ 180,000 | $ 170,832 |
| 4.95%, 4/15/50(h) | | 270,000 | 293,455 |
|
| EQT Corp., 7.50%, 2/01/30 | | 150,000 | 166,139 |
| Exxon Mobil Corp., | | | |
| 2.99%, 3/19/25 | | 300,000 | 297,026 |
| 3.04%, 3/01/26 | | 70,000 | 68,894 |
| 2.44%, 8/16/29 | | 240,000 | 219,428 |
| 3.48%, 3/19/30 | | 120,000 | 116,834 |
| 4.11%, 3/01/46 | | 20,000 | 19,045 |
| 4.33%, 3/19/50 | | 10,000 | 9,849 |
| 3.45%, 4/15/51 | | 300,000 | 257,414 |
|
| Hess Corp., 5.80%, 4/01/47 | | 33,000 | 34,829 |
| Marathon Petroleum Corp., 4.50%, 4/01/48 | | 78,000 | 68,605 |
| Matador Resources Co., 5.88%, 9/15/26 | | 15,000 | 14,726 |
| Occidental Petroleum Corp., | | | |
| 6.95%, 7/01/24 | | 200,000 | 209,750 |
| 5.55%, 3/15/26 | | 160,000 | 164,000 |
| 3.00%, 2/15/27 | | 220,000 | 204,600 |
| 7.88%, 9/15/31 | | 210,000 | 245,528 |
| 4.50%, 7/15/44 | | 80,000 | 68,800 |
| 6.60%, 3/15/46 | | 150,000 | 163,500 |
| 4.10%, 2/15/47 | | 50,000 | 41,625 |
| 4.20%, 3/15/48 | | 230,000 | 190,613 |
|
| Ovintiv Exploration, Inc., 5.63%, 7/01/24 | | 510,000 | 529,998 |
| Pioneer Natural Resources Co., | | | |
| 1.13%, 1/15/26 | | 30,000 | 27,175 |
| 1.90%, 8/15/30(h) | | 150,000 | 124,555 |
| 2.15%, 1/15/31 | | 612,000 | 516,169 |
|
| SM Energy Co., 10.00%, 1/15/25(b) | | 8,000 | 8,642 |
| Sunoco L.P./Sunoco Finance Corp., 4.50%, 4/30/30(b) | | 46,000 | 41,509 |
| | | | 12,812,050 |
| Oil & Gas Services – 0.0%(f) |
| Halliburton Co., 3.80%, 11/15/25 | | 3,000 | 3,017 |
| Pharmaceuticals – 1.1% |
| AbbVie, Inc., | | | |
| 3.75%, 11/14/23 | | 20,000 | 20,215 |
| 2.60%, 11/21/24 | | 1,101,000 | 1,074,283 |
| 3.80%, 3/15/25 | | 495,000 | 495,440 |
| 3.60%, 5/14/25 | | 88,000 | 87,425 |
| 2.95%, 11/21/26 | | 100,000 | 95,760 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Pharmaceuticals (Continued) |
| AbbVie, Inc., | | | |
| 3.20%, 11/21/29 | | $640,000 | $595,556 |
| 4.55%, 3/15/35 | | 123,000 | 122,211 |
| 4.50%, 5/14/35 | | 242,000 | 239,088 |
| 4.63%, 10/01/42 | | 2,000 | 1,919 |
| 4.70%, 5/14/45 | | 154,000 | 150,189 |
| 4.88%, 11/14/48 | | 20,000 | 20,033 |
| 4.25%, 11/21/49 | | 368,000 | 337,036 |
| Bausch Health Americas, Inc., | | | |
| 9.25%, 4/01/26(b) | | 53,000 | 52,613 |
| 8.50%, 1/31/27(b) | | 96,000 | 90,842 |
| Bausch Health Cos., Inc., | | | |
| 9.00%, 12/15/25(b) | | 53,000 | 53,199 |
| 5.75%, 8/15/27(b) | | 15,000 | 14,025 |
| 7.00%, 1/15/28(b) | | 41,000 | 33,825 |
| 7.25%, 5/30/29(b) | | 41,000 | 31,014 |
| Becton Dickinson and Co., | | | |
| 3.36%, 6/06/24 | | 87,000 | 86,564 |
| 4.69%, 12/15/44 | | 16,000 | 15,407 |
| Bristol-Myers Squibb Co., | | | |
| 2.90%, 7/26/24 | | 192,000 | 190,901 |
| 3.20%, 6/15/26 | | 105,000 | 104,019 |
| 3.40%, 7/26/29 | | 65,000 | 63,015 |
| Cigna Corp., | | | |
| 3.75%, 7/15/23 | | 101,000 | 101,861 |
| 4.13%, 11/15/25 | | 20,000 | 20,194 |
| 3.40%, 3/01/27 | | 79,000 | 76,794 |
| 4.38%, 10/15/28 | | 763,000 | 765,484 |
| 4.80%, 8/15/38 | | 100,000 | 99,719 |
| 4.90%, 12/15/48 | | 130,000 | 129,274 |
| CVS Health Corp., | | | |
| 3.63%, 4/01/27 | | 40,000 | 39,334 |
| 4.30%, 3/25/28 | | 217,000 | 217,962 |
| 3.75%, 4/01/30 | | 774,000 | 739,580 |
| 1.88%, 2/28/31 | | 40,000 | 32,837 |
| 2.13%, 9/15/31(h) | | 130,000 | 108,036 |
| 4.78%, 3/25/38 | | 400,000 | 395,574 |
| 4.13%, 4/01/40 | | 40,000 | 36,348 |
| 5.13%, 7/20/45 | | 417,000 | 417,360 |
| 5.05%, 3/25/48 | | 540,000 | 543,253 |
| 4.25%, 4/01/50 | | 36,000 | 32,603 |
| Johnson & Johnson, | | | |
| 0.55%, 9/01/25 | | 80,000 | 73,640 |
| 0.95%, 9/01/27 | | 150,000 | 132,850 |
| 3.63%, 3/03/37 | | 70,000 | 67,418 |
| 2.10%, 9/01/40 | | 350,000 | 264,335 |
| Merck & Co., Inc., | | | |
| 0.75%, 2/24/26 | | 120,000 | 109,217 |
| 1.45%, 6/24/30 | | 70,000 | 58,420 |
| 2.75%, 12/10/51 | | 250,000 | 190,784 |
| | | Par (a) | Value |
| Pharmaceuticals (Continued) |
| Pfizer, Inc., | | | |
| 0.80%, 5/28/25 | | $160,000 | $ 149,012 |
| 2.63%, 4/01/30 | | 110,000 | 100,914 |
| 1.70%, 5/28/30 | | 100,000 | 85,092 |
| 2.55%, 5/28/40 | | 240,000 | 193,475 |
| 2.70%, 5/28/50 | | 310,000 | 242,377 |
| | | | 9,398,326 |
| Pipelines – 1.9% |
| Boardwalk Pipelines L.P., 4.80%, 5/03/29 | | 20,000 | 19,673 |
| Buckeye Partners L.P., 3.95%, 12/01/26 | | 8,000 | 7,560 |
| Cameron LNG LLC, | | | |
| 2.90%, 7/15/31(b) | | 30,000 | 26,911 |
| 3.30%, 1/15/35(b) | | 731,000 | 646,741 |
| 3.40%, 1/15/38(b) | | 129,000 | 111,677 |
| Cheniere Corpus Christi Holdings LLC, | | | |
| 7.00%, 6/30/24 | | 304,000 | 318,789 |
| 5.88%, 3/31/25 | | 337,000 | 349,858 |
| 5.13%, 6/30/27 | | 687,000 | 705,630 |
| 3.70%, 11/15/29 | | 215,000 | 201,483 |
| Energy Transfer L.P., | | | |
| 7.60%, 2/01/24 | | 154,000 | 162,345 |
| 4.50%, 4/15/24 | | 136,000 | 137,115 |
| 3.90%, 5/15/24 | | 418,000 | 416,753 |
| 4.05%, 3/15/25 | | 120,000 | 119,332 |
| 2.90%, 5/15/25 | | 527,000 | 508,676 |
| 5.95%, 12/01/25 | | 160,000 | 168,243 |
| 5.50%, 6/01/27 | | 130,000 | 134,579 |
| 4.00%, 10/01/27 | | 38,000 | 36,763 |
| 4.95%, 6/15/28 | | 20,000 | 20,179 |
| 5.25%, 4/15/29 | | 60,000 | 60,944 |
| 3.75%, 5/15/30 | | 430,000 | 396,162 |
| 6.50%, 2/01/42 | | 130,000 | 135,801 |
| 5.30%, 4/01/44 | | 160,000 | 147,593 |
| 5.35%, 5/15/45 | | 360,000 | 329,706 |
| 5.40%, 10/01/47 | | 160,000 | 147,012 |
| 6.25%, 4/15/49 | | 150,000 | 151,373 |
| 5.00%, 5/15/50 | | 274,000 | 243,668 |
| Enterprise Products Operating LLC, | | | |
| 4.15%, 10/16/28 | | 270,000 | 269,360 |
| 3.13%, 7/31/29 | | 170,000 | 157,667 |
| 2.80%, 1/31/30 | | 550,000 | 498,903 |
| 7.55%, 4/15/38 | | 10,000 | 12,316 |
| 5.95%, 2/01/41 | | 114,000 | 123,242 |
| 4.85%, 3/15/44 | | 80,000 | 76,776 |
| 5.10%, 2/15/45 | | 100,000 | 97,824 |
| 4.80%, 2/01/49 | | 40,000 | 38,113 |
| 4.20%, 1/31/50 | | 60,000 | 52,591 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Pipelines (Continued) |
| Enterprise Products Operating LLC, | | | |
| 3.70%, 1/31/51 | | $ 230,000 | $ 186,377 |
| 3.20%, 2/15/52 | | 29,000 | 21,265 |
| 3.30%, 2/15/53 | | 69,000 | 51,847 |
| 3.95%, 1/31/60 | | 70,000 | 56,723 |
| (3M USD LIBOR + 2.57%), 5.38%, 2/15/78(i) | | 50,000 | 44,810 |
| Kinder Morgan Energy Partners L.P., | | | |
| 4.25%, 9/01/24 | | 100,000 | 101,127 |
| 6.38%, 3/01/41 | | 110,000 | 117,337 |
| 5.50%, 3/01/44 | | 10,000 | 9,873 |
| Kinder Morgan, Inc., | | | |
| 4.30%, 6/01/25 | | 90,000 | 90,770 |
| 4.30%, 3/01/28 | | 60,000 | 59,642 |
| 5.30%, 12/01/34 | | 7,000 | 7,164 |
| 5.55%, 6/01/45 | | 130,000 | 130,721 |
| 5.05%, 2/15/46 | | 40,000 | 37,940 |
| 5.20%, 3/01/48 | | 60,000 | 57,915 |
| 3.60%, 2/15/51 | | 55,000 | 42,181 |
| MPLX L.P., | | | |
| 4.88%, 12/01/24 | | 74,000 | 75,418 |
| 1.75%, 3/01/26 | | 78,000 | 71,236 |
| 4.00%, 3/15/28 | | 200,000 | 193,903 |
| 4.80%, 2/15/29 | | 30,000 | 30,348 |
| 4.50%, 4/15/38 | | 90,000 | 82,667 |
| 5.20%, 3/01/47 | | 60,000 | 56,905 |
| 5.20%, 12/01/47 | | 100,000 | 94,102 |
| 4.70%, 4/15/48 | | 450,000 | 396,845 |
| 5.50%, 2/15/49 | | 90,000 | 87,970 |
| NGPL PipeCo LLC, | | | |
| 4.88%, 8/15/27(b) | | 168,000 | 170,001 |
| 3.25%, 7/15/31(b) | | 238,000 | 206,445 |
|
| Northwest Pipeline LLC, 4.00%, 4/01/27 | | 253,000 | 249,956 |
| Sabine Pass Liquefaction LLC, | | | |
| 5.75%, 5/15/24 | | 500,000 | 517,340 |
| 5.63%, 3/01/25 | | 1,754,000 | 1,815,789 |
| 5.00%, 3/15/27 | | 95,000 | 97,156 |
|
| Southern Natural Gas Co. LLC, 8.00%, 3/01/32 | | 80,000 | 97,198 |
| Targa Resources Corp., 4.95%, 4/15/52 | | 193,000 | 176,272 |
| Tennessee Gas Pipeline Co. LLC, 2.90%, 3/01/30(b) | | 380,000 | 336,365 |
| Texas Eastern Transmission L.P., | | | |
| 3.50%, 1/15/28(b) | | 185,000 | 177,641 |
| 7.00%, 7/15/32 | | 74,000 | 85,930 |
| | | Par (a) | Value |
| Pipelines (Continued) |
| Transcontinental Gas Pipe Line Co. LLC, | | | |
| 7.85%, 2/01/26 | | $1,103,000 | $ 1,236,202 |
| 4.00%, 3/15/28 | | 258,000 | 255,222 |
| 3.95%, 5/15/50 | | 68,000 | 58,489 |
| Western Midstream Operating L.P., | | | |
| 3.60%, 2/01/25 | | 50,000 | 47,816 |
| 4.65%, 7/01/26 | | 90,000 | 88,763 |
| Williams (The) Cos., Inc., | | | |
| 4.90%, 1/15/45 | | 440,000 | 412,839 |
| 5.10%, 9/15/45 | | 140,000 | 136,613 |
| 4.85%, 3/01/48 | | 110,000 | 104,833 |
| | | | 15,407,314 |
| Real Estate Investment Trusts – 0.7% |
| Alexandria Real Estate Equities, Inc., 2.95%, 3/15/34 | | 99,000 | 85,913 |
| American Tower Corp., | | | |
| 5.00%, 2/15/24 | | 54,000 | 55,359 |
| 2.95%, 1/15/25 | | 10,000 | 9,774 |
| 1.30%, 9/15/25 | | 72,000 | 65,856 |
| 3.65%, 3/15/27 | | 90,000 | 86,674 |
| 3.95%, 3/15/29 | | 53,000 | 50,356 |
| 3.80%, 8/15/29 | | 317,000 | 296,241 |
| 2.10%, 6/15/30 | | 136,000 | 111,638 |
| 2.30%, 9/15/31 | | 91,000 | 74,083 |
| Crown Castle International Corp., | | | |
| 3.15%, 7/15/23 | | 36,000 | 35,974 |
| 2.90%, 3/15/27 | | 83,000 | 77,710 |
| 3.10%, 11/15/29 | | 245,000 | 219,352 |
| 3.30%, 7/01/30 | | 226,000 | 204,530 |
| 2.10%, 4/01/31 | | 237,000 | 192,121 |
| 2.50%, 7/15/31 | | 129,000 | 108,168 |
| Digital Dutch Finco B.V., | | | |
| 1.50%, 3/15/30 | EUR | 130,000 | 119,746 |
| 1.00%, 1/15/32 | EUR | 100,000 | 83,477 |
| Duke Realty L.P., | | | |
| 1.75%, 7/01/30 | | 39,000 | 32,454 |
| 1.75%, 2/01/31 | | 198,000 | 162,510 |
| Equinix, Inc., | | | |
| 1.00%, 9/15/25(h) | | 297,000 | 269,123 |
| 1.45%, 5/15/26 | | 83,000 | 74,837 |
| 3.20%, 11/18/29(h) | | 235,000 | 213,033 |
| 2.15%, 7/15/30 | | 89,000 | 73,795 |
| 2.50%, 5/15/31 | | 78,000 | 65,525 |
| 3.90%, 4/15/32 | | 1,043,000 | 978,557 |
| GLP Capital L.P./GLP Financing II, Inc., | | | |
| 3.35%, 9/01/24 | | 65,000 | 63,957 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
| GLP Capital L.P./GLP Financing II, Inc., | | | |
| 4.00%, 1/15/30 | | $ 92,000 | $ 85,567 |
| 4.00%, 1/15/31 | | 200,000 | 181,077 |
| 3.25%, 1/15/32 | | 512,000 | 430,761 |
| Invitation Homes Operating Partnership L.P., | | | |
| 2.30%, 11/15/28 | | 59,000 | 51,369 |
| 4.15%, 4/15/32 | | 71,000 | 67,862 |
|
| MPT Operating Partnership L.P./MPT Finance Corp., 5.25%, 8/01/26 | | 8,000 | 8,012 |
| National Retail Properties, Inc., | | | |
| 4.80%, 10/15/48 | | 145,000 | 143,136 |
| 3.10%, 4/15/50 | | 42,000 | 31,036 |
| 3.50%, 4/15/51 | | 107,000 | 84,975 |
| 3.00%, 4/15/52 | | 67,000 | 47,968 |
| Realty Income Corp., | | | |
| 3.00%, 1/15/27 | | 15,000 | 14,391 |
| 3.25%, 1/15/31 | | 74,000 | 68,859 |
|
| RHP Hotel Properties L.P./RHP Finance Corp., 4.75%, 10/15/27 | | 49,000 | 45,691 |
| Service Properties Trust, 4.35%, 10/01/24 | | 28,000 | 25,940 |
| VICI Properties L.P., | | | |
| 4.38%, 5/15/25 | | 60,000 | 59,942 |
| 4.75%, 2/15/28 | | 165,000 | 164,327 |
| 4.95%, 2/15/30 | | 210,000 | 208,413 |
| VICI Properties L.P./VICI Note Co., Inc., | | | |
| 5.23%, 5/01/24 | | 132,000 | 133,039 |
| 4.50%, 9/01/26 | | 38,000 | 36,507 |
| 5.75%, 2/01/27 | | 59,000 | 59,002 |
|
| WP Carey, Inc., 2.40%, 2/01/31 | | 212,000 | 179,996 |
| | | | 5,938,633 |
| Retail – 0.4% |
| Costco Wholesale Corp., | | | |
| 1.38%, 6/20/27 | | 190,000 | 171,388 |
| 1.75%, 4/20/32 | | 90,000 | 74,700 |
| Home Depot (The), Inc., | | | |
| 2.50%, 4/15/27 | | 60,000 | 57,130 |
| 3.90%, 12/06/28 | | 10,000 | 9,989 |
| 2.70%, 4/15/30 | | 80,000 | 73,051 |
| 3.30%, 4/15/40 | | 160,000 | 139,970 |
| 3.90%, 6/15/47 | | 20,000 | 18,458 |
| 3.35%, 4/15/50 | | 210,000 | 176,378 |
| Lowe's Cos., Inc., | | | |
| 1.30%, 4/15/28 | | 154,000 | 131,281 |
| | | Par (a) | Value |
| Retail (Continued) |
| Lowe's Cos., Inc., | | | |
| 1.70%, 9/15/28 | | $180,000 | $ 157,321 |
| 3.65%, 4/05/29 | | 78,000 | 75,285 |
| 4.50%, 4/15/30 | | 290,000 | 293,213 |
| 2.80%, 9/15/41 | | 183,000 | 139,443 |
| 4.25%, 4/01/52 | | 32,000 | 28,755 |
| McDonald's Corp., | | | |
| 3.30%, 7/01/25 | | 70,000 | 69,766 |
| 1.45%, 9/01/25 | | 140,000 | 131,330 |
| 3.70%, 1/30/26 | | 60,000 | 60,145 |
| 3.50%, 3/01/27 | | 30,000 | 29,655 |
| 3.50%, 7/01/27 | | 60,000 | 59,098 |
| 3.80%, 4/01/28 | | 270,000 | 268,293 |
| 2.13%, 3/01/30 | | 170,000 | 147,018 |
| 3.60%, 7/01/30 | | 80,000 | 76,781 |
| 4.20%, 4/01/50 | | 310,000 | 285,709 |
|
| Target Corp., 2.25%, 4/15/25 | | 110,000 | 106,794 |
| Walmart, Inc., | | | |
| 1.50%, 9/22/28 | | 60,000 | 53,062 |
| 2.38%, 9/24/29 | | 20,000 | 18,336 |
| 1.80%, 9/22/31 | | 40,000 | 34,086 |
| | | | 2,886,435 |
| Semiconductors – 0.6% |
| Analog Devices, Inc., 2.80%, 10/01/41 | | 43,000 | 34,759 |
| Applied Materials, Inc., | | | |
| 1.75%, 6/01/30 | | 140,000 | 119,838 |
| 4.35%, 4/01/47 | | 70,000 | 70,380 |
|
| Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 1/15/27 | | 132,000 | 128,745 |
| Broadcom, Inc., | | | |
| 4.15%, 11/15/30 | | 154,000 | 145,899 |
| 4.15%, 4/15/32(b) | | 125,000 | 116,028 |
| 3.47%, 4/15/34(b) | | 214,000 | 181,641 |
| 3.14%, 11/15/35(b) | | 640,000 | 516,942 |
| 4.93%, 5/15/37(b) | | 899,000 | 840,430 |
| Intel Corp., | | | |
| 3.70%, 7/29/25 | | 20,000 | 20,182 |
| 1.60%, 8/12/28 | | 170,000 | 149,558 |
| 3.73%, 12/08/47 | | 183,000 | 162,522 |
| 4.75%, 3/25/50 | | 142,000 | 146,386 |
| 3.05%, 8/12/51 | | 80,000 | 62,108 |
| KLA Corp., | | | |
| 4.10%, 3/15/29 | | 265,000 | 266,354 |
| 3.30%, 3/01/50 | | 216,000 | 179,470 |
| Lam Research Corp., | | | |
| 3.75%, 3/15/26 | | 77,000 | 77,506 |
| 4.88%, 3/15/49 | | 112,000 | 119,879 |
| 2.88%, 6/15/50 | | 100,000 | 76,930 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Semiconductors (Continued) |
|
| Micron Technology, Inc., 3.37%, 11/01/41 | | $ 41,000 | $ 32,588 |
| NVIDIA Corp., | | | |
| 3.50%, 4/01/40 | | 250,000 | 225,850 |
| 3.50%, 4/01/50 | | 550,000 | 485,583 |
| 3.70%, 4/01/60 | | 100,000 | 87,137 |
| QUALCOMM, Inc., | | | |
| 4.80%, 5/20/45 | | 50,000 | 52,233 |
| 4.30%, 5/20/47 | | 124,000 | 122,923 |
| 3.25%, 5/20/50(h) | | 40,000 | 33,949 |
| Texas Instruments, Inc., | | | |
| 2.90%, 11/03/27 | | 390,000 | 378,455 |
| 1.75%, 5/04/30 | | 70,000 | 60,185 |
| 3.88%, 3/15/39 | | 200,000 | 193,867 |
| | | | 5,088,327 |
| Shipbuilding – 0.0%(f) |
| Huntington Ingalls Industries, Inc., | | | |
| 3.84%, 5/01/25 | | 75,000 | 75,112 |
| 2.04%, 8/16/28(b) | | 24,000 | 20,702 |
| 4.20%, 5/01/30 | | 143,000 | 140,266 |
| | | | 236,080 |
| Software – 0.8% |
| Adobe, Inc., 2.30%, 2/01/30 | | 200,000 | 179,187 |
| Autodesk, Inc., | | | |
| 3.50%, 6/15/27 | | 148,000 | 143,967 |
| 2.40%, 12/15/31 | | 109,000 | 91,425 |
|
| Citrix Systems, Inc., 3.30%, 3/01/30 | | 71,000 | 70,016 |
| Electronic Arts, Inc., 1.85%, 2/15/31 | | 115,000 | 95,176 |
| Fidelity National Information Services, Inc., 1.00%, 12/03/28 | EUR | 105,000 | 101,821 |
| Fiserv, Inc., | | | |
| 4.20%, 10/01/28 | | 57,000 | 56,123 |
| 3.50%, 7/01/29 | | 657,000 | 613,019 |
| Microsoft Corp., | | | |
| 2.40%, 8/08/26 | | 60,000 | 57,945 |
| 3.30%, 2/06/27 | | 1,120,000 | 1,123,478 |
| 2.53%, 6/01/50 | | 284,000 | 212,940 |
| 2.92%, 3/17/52 | | 58,000 | 47,018 |
| Oracle Corp., | | | |
| 1.65%, 3/25/26 | | 360,000 | 325,257 |
| 2.95%, 4/01/30 | | 30,000 | 25,882 |
| 2.88%, 3/25/31 | | 430,000 | 364,893 |
| 3.90%, 5/15/35 | | 109,000 | 94,187 |
| 3.85%, 7/15/36 | | 170,000 | 142,989 |
| 6.13%, 7/08/39 | | 182,000 | 188,714 |
| | | Par (a) | Value |
| Software (Continued) |
| Oracle Corp., | | | |
| 3.60%, 4/01/40 | | $295,000 | $ 228,568 |
| 3.65%, 3/25/41 | | 557,000 | 431,380 |
| 4.13%, 5/15/45 | | 70,000 | 55,509 |
| 4.00%, 7/15/46 | | 260,000 | 203,737 |
| 4.00%, 11/15/47 | | 174,000 | 135,231 |
| 3.60%, 4/01/50 | | 231,000 | 166,176 |
| 3.95%, 3/25/51 | | 105,000 | 79,756 |
|
| Roper Technologies, Inc., 2.95%, 9/15/29 | | 76,000 | 70,127 |
| Salesforce, Inc., | | | |
| 3.70%, 4/11/28 | | 250,000 | 249,240 |
| 3.05%, 7/15/61 | | 181,000 | 138,172 |
|
| ServiceNow, Inc., 1.40%, 9/01/30 | | 243,000 | 194,746 |
| VMware, Inc., | | | |
| 1.80%, 8/15/28 | | 72,000 | 61,145 |
| 2.20%, 8/15/31 | | 282,000 | 229,477 |
| Workday, Inc., | | | |
| 3.50%, 4/01/27 | | 70,000 | 68,233 |
| 3.70%, 4/01/29 | | 100,000 | 95,512 |
| 3.80%, 4/01/32 | | 205,000 | 193,975 |
| | | | 6,535,021 |
| Telecommunications – 1.7% |
| AT&T, Inc., | | | |
| 3.80%, 2/15/27 | | 170,000 | 169,542 |
| 2.30%, 6/01/27 | | 170,000 | 156,326 |
| 1.65%, 2/01/28 | | 888,000 | 774,252 |
| 4.35%, 3/01/29 | | 144,000 | 145,374 |
| 4.30%, 2/15/30(b) | | 105,000 | 105,346 |
| 2.25%, 2/01/32 | | 30,000 | 25,002 |
| 2.55%, 12/01/33 | | 887,000 | 736,032 |
| 3.15%, 9/04/36 | EUR | 100,000 | 105,661 |
| 5.35%, 9/01/40 | | 50,000 | 52,748 |
| 5.55%, 8/15/41 | | 40,000 | 42,975 |
| 3.10%, 2/01/43 | | 450,000 | 348,196 |
| 4.80%, 6/15/44 | | 22,000 | 21,121 |
| 5.15%, 2/15/50 | | 191,000 | 198,879 |
| 3.30%, 2/01/52 | | 40,000 | 30,300 |
| 3.50%, 9/15/53 | | 518,000 | 405,544 |
| 3.55%, 9/15/55 | | 397,000 | 307,188 |
| 3.80%, 12/01/57 | | 230,000 | 183,241 |
| 3.65%, 9/15/59 | | 266,000 | 205,164 |
| 3.50%, 2/01/61 | | 224,000 | 165,887 |
|
| Juniper Networks, Inc., 2.00%, 12/10/30 | | 70,000 | 57,432 |
| Level 3 Financing, Inc., 4.63%, 9/15/27(b) | | 12,000 | 10,785 |
| Motorola Solutions, Inc., | | | |
| 4.60%, 5/23/29 | | 235,000 | 230,349 |
| 2.75%, 5/24/31 | | 403,000 | 336,184 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Telecommunications (Continued) |
| Motorola Solutions, Inc., | | | |
| 5.50%, 9/01/44 | | $ 105,000 | $ 104,458 |
| T-Mobile USA, Inc., | | | |
| 3.50%, 4/15/25 | | 230,000 | 226,738 |
| 3.75%, 4/15/27 | | 148,000 | 143,900 |
| 2.05%, 2/15/28 | | 41,000 | 36,122 |
| 3.88%, 4/15/30 | | 1,351,000 | 1,278,639 |
| 2.55%, 2/15/31 | | 70,000 | 59,454 |
| 2.25%, 11/15/31 | | 560,000 | 458,222 |
| 2.70%, 3/15/32(b) | | 119,000 | 100,963 |
| 3.00%, 2/15/41 | | 90,000 | 68,590 |
| 4.50%, 4/15/50 | | 45,000 | 41,012 |
| 3.30%, 2/15/51 | | 70,000 | 52,363 |
| 3.40%, 10/15/52(b) | | 199,000 | 150,779 |
| Verizon Communications, Inc., | | | |
| 2.63%, 8/15/26 | | 10,000 | 9,504 |
| 4.13%, 3/16/27 | | 100,000 | 100,416 |
| 3.00%, 3/22/27 | | 30,000 | 28,725 |
| 2.10%, 3/22/28 | | 632,000 | 565,981 |
| 4.33%, 9/21/28 | | 424,000 | 426,426 |
| 3.88%, 2/08/29 | | 102,000 | 100,600 |
| 4.02%, 12/03/29 | | 127,000 | 124,247 |
| 3.15%, 3/22/30 | | 403,000 | 370,119 |
| 1.50%, 9/18/30 | | 544,000 | 440,626 |
| 1.68%, 10/30/30 | | 126,000 | 102,120 |
| 1.75%, 1/20/31 | | 329,000 | 268,622 |
| 2.55%, 3/21/31 | | 465,000 | 404,788 |
| 2.36%, 3/15/32(b) | | 528,000 | 443,336 |
| 4.50%, 8/10/33 | | 1,010,000 | 1,009,740 |
| 2.65%, 11/20/40 | | 874,000 | 661,277 |
| 3.40%, 3/22/41 | | 201,000 | 168,974 |
| 2.85%, 9/03/41 | | 151,000 | 117,833 |
| 3.85%, 11/01/42 | | 60,000 | 53,141 |
| 4.13%, 8/15/46 | | 70,000 | 63,517 |
| 4.86%, 8/21/46 | | 40,000 | 40,260 |
| 4.00%, 3/22/50 | | 190,000 | 169,668 |
| 2.88%, 11/20/50 | | 607,000 | 443,089 |
| 3.55%, 3/22/51 | | 401,000 | 329,306 |
| 3.70%, 3/22/61 | | 93,000 | 74,766 |
| | | | 14,051,849 |
| Transportation – 0.3% |
| Burlington Northern Santa Fe LLC, | | | |
| 5.40%, 6/01/41 | | 106,000 | 116,099 |
| 3.30%, 9/15/51 | | 242,000 | 200,792 |
| 2.88%, 6/15/52 | | 31,000 | 23,801 |
| CSX Corp., | | | |
| 4.75%, 11/15/48 | | 74,000 | 74,624 |
| 2.50%, 5/15/51 | | 47,000 | 32,822 |
| 4.65%, 3/01/68 | | 38,000 | 36,031 |
| | | Par (a) | Value |
| Transportation (Continued) |
|
| FedEx Corp., 3.88%, 8/01/42 | | $ 14,000 | $ 12,109 |
| Norfolk Southern Corp., | | | |
| 3.00%, 3/15/32 | | 180,000 | 163,342 |
| 3.05%, 5/15/50 | | 260,000 | 199,901 |
| Ryder System, Inc., | | | |
| 2.50%, 9/01/24 | | 75,000 | 72,924 |
| 4.63%, 6/01/25 | | 287,000 | 291,608 |
| Union Pacific Corp., | | | |
| 3.25%, 8/15/25 | | 27,000 | 26,862 |
| 2.75%, 3/01/26(h) | | 53,000 | 51,412 |
| 2.15%, 2/05/27 | | 120,000 | 112,307 |
| 2.40%, 2/05/30 | | 220,000 | 197,321 |
| 2.95%, 3/10/52 | | 21,000 | 16,100 |
| 3.95%, 8/15/59 | | 104,000 | 92,649 |
| 3.84%, 3/20/60 | | 238,000 | 208,358 |
| 2.97%, 9/16/62 | | 43,000 | 31,088 |
| 3.75%, 2/05/70 | | 160,000 | 132,769 |
| | | | 2,092,919 |
| Trucking & Leasing – 0.1% |
| Penske Truck Leasing Co. L.P./PTL Finance Corp., | | | |
| 3.95%, 3/10/25(b) | | 30,000 | 29,980 |
| 4.00%, 7/15/25(b) | | 94,000 | 93,622 |
| 1.20%, 11/15/25(b) | | 82,000 | 74,429 |
| 4.45%, 1/29/26(b) | | 10,000 | 10,032 |
| 1.70%, 6/15/26(b)(h) | | 241,000 | 218,549 |
| | | | 426,612 |
Total Corporate Bonds
(Cost $207,992,771) | 186,142,947 |
|
| Foreign Issuer Bonds – 8.1% |
| Argentina – 0.0%(f) |
| Argentine Republic Government International Bond, (Step to 1.50% on 7/9/22), 1.13%, 7/09/35(e) | | 219,000 | 62,492 |
| Genneia S.A., 8.75%, 9/02/27(b) | | 16,330 | 16,012 |
| YPF S.A., 7.00%, 12/15/47(b) | | 45,000 | 28,111 |
| | | | 106,615 |
| Australia – 0.2% |
| BHP Billiton Finance USA Ltd., 5.00%, 9/30/43 | | 20,000 | 21,608 |
| Glencore Funding LLC, | | | |
| 4.13%, 3/12/24(b) | | 390,000 | 391,674 |
| 1.63%, 4/27/26(b) | | 238,000 | 215,425 |
| 4.00%, 3/27/27(b) | | 320,000 | 313,581 |
| 3.88%, 10/27/27(b) | | 70,000 | 68,001 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Australia (Continued) |
| Glencore Funding LLC, | | | |
| 2.50%, 9/01/30(b) | | $ 320,000 | $ 268,714 |
| 2.85%, 4/27/31(b)(h) | | 208,000 | 177,686 |
| 2.63%, 9/23/31(b) | | 38,000 | 31,726 |
| 3.38%, 9/23/51(b) | | 96,000 | 70,992 |
| | | | 1,559,407 |
| Belgium – 0.3% |
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., | | | |
| 3.65%, 2/01/26 | | 300,000 | 298,081 |
| 4.70%, 2/01/36 | | 145,000 | 143,501 |
| 4.90%, 2/01/46 | | 200,000 | 197,127 |
|
| Anheuser-Busch InBev Finance, Inc., 4.00%, 1/17/43 | | 62,000 | 54,206 |
| Anheuser-Busch InBev Worldwide, Inc., | | | |
| 4.00%, 4/13/28 | | 707,000 | 703,593 |
| 4.75%, 1/23/29 | | 420,000 | 432,232 |
| 3.50%, 6/01/30 | | 50,000 | 47,419 |
| 4.35%, 6/01/40 | | 130,000 | 122,280 |
| 4.95%, 1/15/42 | | 34,000 | 33,826 |
| 4.60%, 4/15/48 | | 169,000 | 159,139 |
| 5.55%, 1/23/49 | | 260,000 | 277,448 |
| 4.50%, 6/01/50 | | 230,000 | 215,198 |
| | | | 2,684,050 |
| Brazil – 0.4% |
| Embraer Netherlands Finance B.V., | | | |
| 5.05%, 6/15/25 | | 34,000 | 33,744 |
| 5.40%, 2/01/27 | | 13,000 | 12,529 |
|
| Gol Finance S.A., 7.00%, 1/31/25(b) | | 102,000 | 87,186 |
| JSM Global S.a.r.l., 4.75%, 10/20/30(b) | | 200,000 | 171,066 |
| Klabin Austria GmbH, 3.20%, 1/12/31(b) | | 200,000 | 158,702 |
| Oi S.A., (100% Cash), 10.00%, 7/27/25(l) | | 26,000 | 20,735 |
| Suzano Austria GmbH, | | | |
| 6.00%, 1/15/29 | | 1,620,000 | 1,637,626 |
| 3.13%, 1/15/32 | | 45,000 | 36,337 |
| Vale Overseas Ltd., | | | |
| 6.25%, 8/10/26 | | 850,000 | 893,775 |
| 6.88%, 11/21/36 | | 300,000 | 330,420 |
| | | | 3,382,120 |
| Canada – 0.4% |
| 1011778 B.C. ULC/New Red Finance, Inc., 3.88%, 1/15/28(b) | | 11,000 | 10,120 |
| | | Par (a) | Value |
| Canada (Continued) |
| Air Canada Pass Through Trust, Series 2017-1, Class AA, 3.30%, 1/15/30(b) | | $ 14,774 | $ 13,961 |
| Bank of Montreal, | | | |
| 1.85%, 5/01/25(h) | | 210,000 | 199,388 |
| (5Y USD Swap Rate + 1.43%), 3.80%, 12/15/32(i) | | 40,000 | 37,884 |
| Bank of Nova Scotia (The), | | | |
| 3.45%, 4/11/25 | | 430,000 | 425,150 |
| 1.30%, 6/11/25 | | 120,000 | 111,290 |
| (5Y US Treasury CMT + 2.05%), 4.59%, 5/04/37(i) | | 140,000 | 132,766 |
|
| Barrick North America Finance LLC, 5.75%, 5/01/43 | | 190,000 | 209,360 |
| Brookfield Residential Properties, Inc./Brookfield Residential U.S. LLC, 6.25%, 9/15/27(b) | | 74,000 | 69,427 |
| Canadian Imperial Bank of Commerce, 0.95%, 6/23/23 | | 100,000 | 97,869 |
| Canadian Pacific Railway Co., | | | |
| 2.45%, 12/02/31 | | 560,000 | 487,095 |
| 3.00%, 12/02/41 | | 150,000 | 121,979 |
|
| Cenovus Energy, Inc., 3.75%, 2/15/52 | | 15,000 | 11,961 |
| Mattamy Group Corp., 5.25%, 12/15/27(b) | | 8,000 | 7,480 |
| Rogers Communications, Inc., | | | |
| 3.80%, 3/15/32(b) | | 346,000 | 318,611 |
| 4.55%, 3/15/52(b) | | 240,000 | 212,935 |
| Royal Bank of Canada, | | | |
| 1.15%, 6/10/25 | | 100,000 | 92,399 |
| 3.88%, 5/04/32 | | 340,000 | 326,653 |
|
| Suncor Energy, Inc., 6.50%, 6/15/38 | | 81,000 | 92,566 |
| Toronto-Dominion Bank (The), | | | |
| 0.75%, 6/12/23 | | 210,000 | 205,509 |
| 1.15%, 6/12/25 | | 110,000 | 101,968 |
|
| TransCanada PipeLines Ltd., 4.63%, 3/01/34 | | 61,000 | 60,295 |
| | | | 3,346,666 |
| Chile – 0.4% |
| Chile Government International Bond, | | | |
| 3.50%, 1/31/34 | | 430,000 | 389,365 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Chile (Continued) |
| Chile Government International Bond, | | | |
| 3.10%, 5/07/41 | | $1,120,000 | $ 872,626 |
| 4.34%, 3/07/42 | | 200,000 | 182,070 |
| 3.10%, 1/22/61 | | 310,000 | 214,089 |
| Corp. Nacional del Cobre de Chile, | | | |
| 3.63%, 8/01/27(b) | | 330,000 | 317,691 |
| 3.70%, 1/30/50(b) | | 860,000 | 683,055 |
|
| Kenbourne Invest S.A., 6.88%, 11/26/24(b) | | 200,000 | 190,750 |
| | | | 2,849,646 |
| China – 0.3% |
| NXP B.V./NXP Funding LLC/NXP USA, Inc., | | | |
| 2.70%, 5/01/25(b) | | 80,000 | 76,475 |
| 4.30%, 6/18/29(b) | | 332,000 | 323,601 |
| 3.40%, 5/01/30(b) | | 205,000 | 186,770 |
| 2.50%, 5/11/31(b) | | 358,000 | 297,436 |
| 2.65%, 2/15/32(b) | | 160,000 | 133,801 |
| Prosus N.V., | | | |
| 3.68%, 1/21/30(b) | | 600,000 | 505,944 |
| 4.03%, 8/03/50(b) | | 580,000 | 403,284 |
|
| Sinopec Group Overseas Development 2014 Ltd., 4.38%, 4/10/24(b) | | 290,000 | 295,903 |
| Tencent Holdings Ltd., 3.24%, 6/03/50 | | 540,000 | 387,315 |
| | | | 2,610,529 |
| Colombia – 0.4% |
| Colombia Government International Bond, | | | |
| 4.50%, 3/15/29 | | 243,000 | 220,027 |
| 3.25%, 4/22/32 | | 620,000 | 473,599 |
| 5.00%, 6/15/45 | | 1,010,000 | 749,925 |
| 5.20%, 5/15/49(h) | | 460,000 | 345,575 |
| Ecopetrol S.A., | | | |
| 6.88%, 4/29/30 | | 56,000 | 55,301 |
| 5.88%, 5/28/45 | | 1,410,000 | 1,108,556 |
|
| Grupo Aval Ltd., 4.38%, 2/04/30(b) | | 200,000 | 169,330 |
| Promigas S.A. ESP/Gases del Pacifico SAC, | | | |
| 3.75%, 10/16/29(b) | | 200,000 | 174,940 |
| 3.75%, 10/16/29 | | 200,000 | 174,940 |
| | | | 3,472,193 |
| Denmark – 0.2% |
| Danske Bank A/S, | | | |
| 3.88%, 9/12/23(b) | | 400,000 | 401,635 |
| | | Par (a) | Value |
| Denmark (Continued) |
| Danske Bank A/S, | | | |
| (1Y US Treasury CMT + 1.03%), 1.17%, 12/08/23(b)(i) | | $200,000 | $ 197,129 |
| 5.38%, 1/12/24(b) | | 600,000 | 611,966 |
| 5.38%, 1/12/24 | | 200,000 | 203,989 |
| 1.23%, 6/22/24(b) | | 200,000 | 188,750 |
| | | | 1,603,469 |
| Dominican Republic – 0.0%(f) |
| Dominican Republic International Bond, 5.50%, 2/22/29(b) | | 150,000 | 140,175 |
| Finland – 0.0%(f) |
| Nordea Bank Abp, 1.00%, 6/09/23(b) | | 210,000 | 205,058 |
| France – 0.2% |
| BNP Paribas S.A., | | | |
| (3M USD LIBOR + 2.24%), 4.71%, 1/10/25(b)(i) | | 200,000 | 201,622 |
| (SOFR + 2.07%), 2.22%, 6/09/26(b)(i) | | 600,000 | 559,775 |
| (3M USD LIBOR + 2.57%), 5.20%, 1/10/30(b)(i) | | 300,000 | 304,980 |
| (SOFR + 1.51%), 3.05%, 1/13/31(b)(i) | | 200,000 | 175,983 |
|
| Credit Agricole S.A., (SOFR + 1.68%), 1.91%, 6/16/26(b)(i) | | 250,000 | 231,573 |
| Danone S.A., 2.95%, 11/02/26(b) | | 200,000 | 193,933 |
| | | | 1,667,866 |
| Germany – 0.1% |
| Deutsche Bank A.G., | | | |
| (SOFR + 1.13%), 1.45%, 4/01/25(i) | | 212,000 | 200,275 |
| 1.69%, 3/19/26 | | 350,000 | 319,365 |
|
| Deutsche Telekom International Finance B.V., 3.60%, 1/19/27(b) | | 150,000 | 148,105 |
| | | | 667,745 |
| Hungary – 0.0%(f) |
| Hungary Government International Bond, 5.38%, 3/25/24 | | 122,000 | 125,742 |
| India – 0.1% |
| Export-Import Bank of India, 3.38%, 8/05/26(b) | | 200,000 | 192,046 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| India (Continued) |
| Reliance Industries Ltd., | | | |
| 2.88%, 1/12/32(b) | | $ 250,000 | $ 213,875 |
| 3.63%, 1/12/52(b) | | 450,000 | 357,680 |
| | | | 763,601 |
| Indonesia – 0.5% |
| Indonesia Government International Bond, | | | |
| 2.85%, 2/14/30 | | 200,000 | 186,246 |
| 4.35%, 1/11/48 | | 1,550,000 | 1,428,689 |
| 3.70%, 10/30/49 | | 530,000 | 448,074 |
| 3.05%, 3/12/51(h) | | 222,000 | 178,020 |
|
| Pertamina Persero PT, 6.00%, 5/03/42(b) | | 280,000 | 284,321 |
| Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 5.45%, 5/21/28(b) | | 1,080,000 | 1,110,780 |
| | | | 3,636,130 |
| Ireland – 0.1% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, | | | |
| 2.45%, 10/29/26 | | 550,000 | 489,116 |
| 3.00%, 10/29/28 | | 400,000 | 347,657 |
| 3.30%, 1/30/32 | | 150,000 | 124,804 |
| | | | 961,577 |
| Israel – 0.1% |
| Israel Government International Bond, | | | |
| 2.75%, 7/03/30 | | 700,000 | 661,500 |
| 4.50%, 4/03/20(m) | | 220,000 | 217,273 |
| | | | 878,773 |
| Japan – 0.3% |
| Mitsubishi UFJ Financial Group, Inc., | | | |
| (1Y US Treasury CMT + 0.68%), 0.85%, 9/15/24(i) | | 366,000 | 352,852 |
| (1Y US Treasury CMT + 1.13%), 3.84%, 4/17/26(i) | | 200,000 | 199,251 |
|
| Mizuho Financial Group, Inc., (SOFR + 1.53%), 1.98%, 9/08/31(i) | | 200,000 | 163,456 |
| Nissan Motor Co. Ltd., 4.81%, 9/17/30(b) | | 600,000 | 562,235 |
| Nomura Holdings, Inc., | | | |
| 2.61%, 7/14/31 | | 293,000 | 246,175 |
| 3.00%, 1/22/32 | | 200,000 | 172,898 |
| | | Par (a) | Value |
| Japan (Continued) |
| Sumitomo Mitsui Financial Group, Inc., | | | |
| 2.70%, 7/16/24 | | $ 202,000 | $ 197,971 |
| 2.35%, 1/15/25 | | 400,000 | 384,638 |
| Takeda Pharmaceutical Co. Ltd., | | | |
| 5.00%, 11/26/28 | | 200,000 | 208,390 |
| 2.05%, 3/31/30 | | 200,000 | 168,023 |
| 2.00%, 7/09/40 | EUR | 110,000 | 98,548 |
| | | | 2,754,437 |
| Kazakhstan – 0.1% |
| Kazakhstan Government International Bond, 4.88%, 10/14/44 | | 600,000 | 570,029 |
| KazMunayGas National Co. JSC, 6.38%, 10/24/48(b) | | 420,000 | 400,895 |
| | | | 970,924 |
| Kuwait – 0.1% |
| Equate Petrochemical B.V., | | | |
| 4.25%, 11/03/26(b) | | 210,000 | 209,035 |
| 2.63%, 4/28/28(b) | | 450,000 | 408,669 |
|
| MEGlobal Canada ULC, 5.00%, 5/18/25(b) | | 200,000 | 203,626 |
| | | | 821,330 |
| Macau – 0.0%(f) |
| Sands China Ltd., 5.13%, 8/08/25 | | 300,000 | 291,000 |
| Mexico – 0.7% |
| Braskem Idesa SAPI, 6.99%, 2/20/32(b) | | 200,000 | 179,474 |
| Comision Federal de Electricidad, 3.88%, 7/26/33(b) | | 720,000 | 578,026 |
| Grupo Televisa S.A.B., 6.63%, 1/15/40 | | 9,000 | 10,081 |
| Mexico City Airport Trust, 5.50%, 7/31/47 | | 200,000 | 159,502 |
| Mexico Government International Bond, | | | |
| 2.66%, 5/24/31 | | 368,000 | 308,355 |
| 4.75%, 3/08/44 | | 2,060,000 | 1,799,822 |
| 4.50%, 1/31/50 | | 420,000 | 345,702 |
| 4.40%, 2/12/52 | | 1,210,000 | 965,035 |
| Orbia Advance Corp. S.A.B. de C.V., | | | |
| 1.88%, 5/11/26(b) | | 280,000 | 250,600 |
| 2.88%, 5/11/31(b) | | 270,000 | 220,863 |
| Petroleos Mexicanos, | | | |
| 7.19%, 9/12/24 | MXN | 1,203,000 | 54,825 |
| 6.88%, 10/16/25 | | 25,000 | 25,245 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Mexico (Continued) |
| Petroleos Mexicanos, | | | |
| 6.84%, 1/23/30 | | $130,000 | $ 118,469 |
| 6.70%, 2/16/32(h) | | 389,000 | 335,193 |
| 5.63%, 1/23/46(h) | | 620,000 | 425,481 |
| 7.69%, 1/23/50 | | 51,000 | 39,850 |
| | | | 5,816,523 |
| Morocco – 0.0%(f) |
| OCP S.A., 4.50%, 10/22/25(b) | | 200,000 | 200,068 |
| Netherlands – 0.2% |
| Cooperatieve Rabobank U.A., | | | |
| 4.38%, 8/04/25 | | 440,000 | 440,478 |
| (1Y US Treasury CMT + 1.22%), 3.65%, 4/06/28(b)(i) | | 250,000 | 241,050 |
| (1Y US Treasury CMT + 1.42%), 3.76%, 4/06/33(b)(i) | | 250,000 | 232,615 |
| Shell International Finance B.V., | | | |
| 3.50%, 11/13/23 | | 170,000 | 171,596 |
| 2.88%, 5/10/26 | | 140,000 | 136,280 |
| 2.38%, 11/07/29 | | 200,000 | 178,443 |
| 2.75%, 4/06/30 | | 100,000 | 91,781 |
| 4.38%, 5/11/45 | | 70,000 | 67,824 |
| 4.00%, 5/10/46 | | 80,000 | 74,304 |
| 3.25%, 4/06/50 | | 300,000 | 247,506 |
| | | | 1,881,877 |
| Panama – 0.2% |
| Panama Government International Bond, | | | |
| 3.88%, 3/17/28 | | 200,000 | 193,140 |
| 6.70%, 1/26/36 | | 780,000 | 873,623 |
| 4.30%, 4/29/53 | | 800,000 | 666,632 |
| 4.50%, 4/01/56 | | 247,000 | 210,043 |
| | | | 1,943,438 |
| Peru – 0.4% |
| Peruvian Government International Bond, | | | |
| 4.13%, 8/25/27 | | 137,000 | 136,103 |
| 6.55%, 3/14/37 | | 560,000 | 643,026 |
| 3.30%, 3/11/41 | | 370,000 | 289,266 |
| 5.63%, 11/18/50(h) | | 130,000 | 142,556 |
| 3.55%, 3/10/51 | | 220,000 | 170,810 |
| 3.60%, 1/15/72 | | 270,000 | 191,536 |
| Petroleos del Peru S.A., | | | |
| 4.75%, 6/19/32(b) | | 700,000 | 567,770 |
| 5.63%, 6/19/47(b) | | 200,000 | 145,300 |
| | | Par (a) | Value |
| Peru (Continued) |
|
| Southern Copper Corp., 5.25%, 11/08/42 | | $ 1,040,000 | $1,064,908 |
| | | | 3,351,275 |
| Philippines – 0.0%(f) |
| Philippine Government International Bond, 3.20%, 7/06/46 | | 267,000 | 210,116 |
| Poland – 0.1% |
| Republic of Poland Government International Bond, 4.00%, 1/22/24 | | 790,000 | 797,748 |
| Qatar – 0.2% |
| Qatar Energy, | | | |
| 3.13%, 7/12/41(b) | | 550,000 | 459,382 |
| 3.30%, 7/12/51(b) | | 360,000 | 298,714 |
|
| Qatar Government International Bond, 4.82%, 3/14/49(b) | | 580,000 | 622,821 |
| | | | 1,380,917 |
| Russia – 0.1% |
| Lukoil Capital DAC, | | | |
| 2.80%, 4/26/27(b)(n) | | 370,000 | 133,200 |
| 3.60%, 10/26/31(b)(n) | | 470,000 | 164,500 |
|
| Russian Federal Bond - OFZ, 6.10%, 7/18/35(o) | RUB | 15,614,000 | 14,498 |
| | | | 312,198 |
| Saudi Arabia – 0.1% |
| Arabian Centres Sukuk II Ltd., 5.63%, 10/07/26(b) | | 200,000 | 188,500 |
| EIG Pearl Holdings S.a.r.l., | | | |
| 3.55%, 8/31/36(b) | | 217,000 | 192,205 |
| 4.39%, 11/30/46(b) | | 305,000 | 257,859 |
| | | | 638,564 |
| South Africa – 0.1% |
| Anglo American Capital PLC, | | | |
| 4.00%, 9/11/27(b) | | 400,000 | 389,750 |
| 5.63%, 4/01/30(b) | | 200,000 | 209,642 |
|
| Liquid Telecommunications Financing PLC, 5.50%, 9/04/26(b) | | 200,000 | 191,000 |
| Sasol Financing U.S.A. LLC, 5.50%, 3/18/31 | | 200,000 | 180,000 |
| | | | 970,392 |
| Spain – 0.1% |
| Banco Santander S.A., | | | |
| 2.75%, 5/28/25 | | 800,000 | 764,709 |
| 1.85%, 3/25/26 | | 200,000 | 181,771 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Spain (Continued) |
|
| Telefonica Emisiones S.A., 4.10%, 3/08/27 | | $ 150,000 | $ 148,349 |
| | | | 1,094,829 |
| Supranational – 0.1% |
| European Union, 1.25%, 2/04/43 | EUR | 485,000 | 470,531 |
| Sweden – 0.0%(f) |
| Swedbank AB, 1.30%, 6/02/23(b) | | 200,000 | 196,456 |
| Switzerland – 0.4% |
| Credit Suisse A.G., | | | |
| 1.00%, 5/05/23 | | 920,000 | 900,682 |
| 2.95%, 4/09/25 | | 250,000 | 242,441 |
| Credit Suisse Group A.G., | | | |
| (SOFR + 1.56%), 2.59%, 9/11/25(b)(i) | | 250,000 | 238,442 |
| (SOFR + 3.73%), 4.19%, 4/01/31(b)(i) | | 250,000 | 231,669 |
| (SOFR + 1.73%), 3.09%, 5/14/32(b)(i) | | 500,000 | 418,153 |
| UBS Group A.G., | | | |
| (3M USD LIBOR + 0.95%), 2.86%, 8/15/23(b)(i) | | 200,000 | 199,607 |
| 4.25%, 3/23/28(b) | | 770,000 | 759,906 |
| | | | 2,990,900 |
| Taiwan – 0.1% |
| TSMC Arizona Corp., | | | |
| 2.50%, 10/25/31 | | 1,020,000 | 886,084 |
| 4.25%, 4/22/32 | | 200,000 | 198,873 |
| | | | 1,084,957 |
| United Arab Emirates – 0.2% |
| Abu Dhabi Government International Bond, 3.13%, 9/30/49(b) | | 520,000 | 429,318 |
| Abu Dhabi National Energy Co. PJSC, 3.40%, 4/29/51(b) | | 370,000 | 320,457 |
| DP World Ltd., 5.63%, 9/25/48(b) | | 700,000 | 701,050 |
| | | | 1,450,825 |
| United Kingdom – 0.7% |
| BAE Systems Holdings, Inc., 3.85%, 12/15/25(b) | | 253,000 | 249,889 |
| BAE Systems PLC, 3.40%, 4/15/30(b) | | 496,000 | 462,676 |
| Barclays PLC, | | | |
| (3M USD LIBOR + 1.90%), 4.97%, 5/16/29(i) | | 200,000 | 200,729 |
| | | Par (a) | Value |
| United Kingdom (Continued) |
| Barclays PLC, | | | |
| (3M USD LIBOR + 3.05%), 5.09%, 6/20/30(i) | | $200,000 | $ 195,975 |
| BAT Capital Corp., | | | |
| 3.56%, 8/15/27 | | 300,000 | 279,638 |
| 2.26%, 3/25/28 | | 100,000 | 85,392 |
| 4.54%, 8/15/47 | | 190,000 | 150,627 |
| 3.98%, 9/25/50(h) | | 66,000 | 47,586 |
| HSBC Holdings PLC, | | | |
| (SOFR + 1.93%), 2.10%, 6/04/26(i) | | 200,000 | 186,768 |
| (SOFR + 1.10%), 2.25%, 11/22/27(i) | | 207,000 | 187,244 |
| (3M USD LIBOR + 1.55%), 4.04%, 3/13/28(i) | | 240,000 | 232,179 |
| (3M USD LIBOR + 1.53%), 4.58%, 6/19/29(i) | | 287,000 | 281,497 |
| (3M USD LIBOR + 1.61%), 3.97%, 5/22/30(i) | | 550,000 | 518,627 |
| (SOFR + 1.19%), 2.80%, 5/24/32(i) | | 200,000 | 168,464 |
| Lloyds Banking Group PLC, | | | |
| (3M USD LIBOR + 0.81%), 2.91%, 11/07/23(i) | | 270,000 | 269,538 |
| 4.38%, 3/22/28 | | 290,000 | 286,860 |
|
| Nationwide Building Society, (3M USD LIBOR + 1.39%), 4.36%, 8/01/24(b)(i) | | 200,000 | 201,625 |
| Natwest Group PLC, | | | |
| (3M USD LIBOR + 1.76%), 4.27%, 3/22/25(i) | | 400,000 | 400,105 |
| (3M USD LIBOR + 1.91%), 5.08%, 1/27/30(h)(i) | | 200,000 | 202,349 |
| RELX Capital, Inc., | | | |
| 4.00%, 3/18/29 | | 272,000 | 268,649 |
| 3.00%, 5/22/30 | | 209,000 | 188,415 |
|
| Reynolds American, Inc., 5.85%, 8/15/45 | | 108,000 | 100,731 |
| Vodafone Group PLC, 4.38%, 5/30/28 | | 130,000 | 132,030 |
| | | | 5,297,593 |
| Uruguay – 0.2% |
| Uruguay Government International Bond, | | | |
| 4.38%, 1/23/31 | | 800,000 | 820,016 |
| 5.10%, 6/18/50 | | 617,641 | 643,397 |
| | | | 1,463,413 |
Total Foreign Issuer Bonds
(Cost $76,058,005) | 67,051,673 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
|
| Mortgage-Backed Securities – 29.0% |
| Commercial Mortgage-Backed Securities – 2.5% |
| 245 Park Avenue Trust, Series 2017-245P, Class E, 3.78%, 6/05/37(b)(d) | | $ 740,000 | $ 626,210 |
| AREIT Trust, Series 2022-CRE6, Class A, (30D Average SOFR + 1.25%, 1.25% Floor), 1.53%, 11/17/24(b)(c) | | 840,000 | 832,489 |
| BANK, | | | |
| Series 2017-BNK5, Class A4, 3.13%, 6/15/60 | | 330,000 | 316,430 |
| Series 2017-BNK7, Class A5, 3.44%, 9/15/60 | | 100,000 | 97,377 |
| Series 2019-BN19, Class C, 4.17%, 8/15/61(d) | | 280,000 | 254,686 |
| Series 2018-BN13, Class A5, 4.22%, 8/15/61 | | 480,000 | 484,873 |
|
| Bayview Commercial Asset Trust, Series 2006-1A, Class A1, (1M USD LIBOR + 0.41%), 1.07%, 4/25/36(b)(c) | | 307,068 | 285,707 |
| Benchmark Mortgage Trust, | | | |
| Series 2020-IG1, Class AS, 2.91%, 9/15/43 | | 720,000 | 656,211 |
| Series 2018-B2, Class A5, 3.88%, 2/15/51 | | 390,000 | 387,911 |
| Series 2019-B9, Class XA, 1.20%, 3/15/52(d) | | 1,747,287 | 96,925 |
| Series 2021-B25, Class XA, 1.23%, 4/15/54(d) | | 6,746,385 | 491,809 |
| Series 2021-B27, Class XA, 1.39%, 7/15/54(d) | | 5,254,280 | 435,575 |
| Series 2019-B10, Class A4, 3.72%, 3/15/62 | | 500,000 | 492,438 |
|
| BHMS, Series 2018-ATLS, Class A, (1M USD LIBOR + 1.25%, 1.25% Floor), 1.80%, 7/15/35(b)(c) | | 1,190,000 | 1,176,264 |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-SOAR, Class A, (1M USD LIBOR + 0.67%, 0.67% Floor), 1.23%, 6/15/38(b)(c) | | 670,000 | 653,053 |
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-XL2, Class A, (1M USD LIBOR + 0.69%, 0.69% Floor), 1.24%, 10/15/38(b)(c) | | $ 1,008,596 | $982,734 |
|
| BXP Trust, Series 2017-GM, Class D, 3.54%, 6/13/39(b)(d) | | 370,000 | 338,140 |
| CAMB Commercial Mortgage Trust, | | | |
| Series 2019-LIFE, Class A, (1M USD LIBOR + 1.07%, 1.07% Floor), 1.62%, 12/15/37(b)(c) | | 720,000 | 716,385 |
| Series 2019-LIFE, Class D, (1M USD LIBOR + 1.75%, 1.75% Floor), 2.30%, 12/15/37(b)(c) | | 100,000 | 98,189 |
|
| CFK Trust, Series 2019-FAX, Class D, 4.79%, 1/15/39(b)(d) | | 100,000 | 94,139 |
| Citigroup Commercial Mortgage Trust, | | | |
| Series 2019-SMRT, Class D, 4.90%, 1/10/36(b)(d) | | 500,000 | 496,127 |
| Series 2019-SMRT, Class E, 4.90%, 1/10/36(b)(d) | | 500,000 | 491,338 |
| Series 2014-GC23, Class B, 4.18%, 7/10/47 | | 240,000 | 237,933 |
| Series 2016-C1, Class D, 5.11%, 5/10/49(b)(d) | | 250,000 | 229,827 |
| Series 2017-C4, Class A4, 3.47%, 10/12/50 | | 420,000 | 408,382 |
|
| Commercial Mortgage Trust, Series 2020-CX, Class A, 2.17%, 11/10/46(b) | | 290,000 | 249,873 |
| CSMC OA LLC, Series 2014-USA, Class B, 4.18%, 9/15/37(b) | | 530,000 | 492,427 |
| DBGS Mortgage Trust, Series 2019-1735, Class X, 0.43%, 4/10/37(b)(d) | | 13,945,000 | 212,020 |
| GS Mortgage Securities Corp. Trust, | | | |
| Series 2021-ROSS, Class A, (1M USD LIBOR + 1.15%, 1.15% Floor), 1.71%, 5/15/26(b)(c) | | 700,000 | 686,625 |
| Series 2020-DUNE, Class A, (1M USD LIBOR + 1.10%, 1.10% Floor), 1.65%, 12/15/36(b)(c) | | 960,000 | 952,394 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| GS Mortgage Securities Corp. Trust, | | | |
| Series 2019-BOCA, Class A, (1M USD LIBOR + 1.20%, 1.20% Floor), 1.75%, 6/15/38(b)(c) | | $ 100,000 | $ 99,798 |
| Series 2019-BOCA, Class B, (1M USD LIBOR + 1.50%, 1.50% Floor), 2.05%, 6/15/38(b)(c) | | 620,000 | 616,514 |
| Series 2019-BOCA, Class C, (1M USD LIBOR + 1.73%, 1.73% Floor), 2.28%, 6/15/38(b)(c) | | 530,000 | 526,701 |
|
| GS Mortgage Securities Trust, Series 2017-GS8, Class A4, 3.47%, 11/10/50 | | 240,000 | 234,100 |
| J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2022-ACB, Class A, (30D Average SOFR + 1.40%, 1.40% Floor), 1.67%, 3/15/39(b)(c) | | 330,000 | 327,950 |
| JPMorgan Chase Commercial Mortgage Securities Trust, | | | |
| Series 2020-MKST, Class D, (1M USD LIBOR + 1.50%, 1.50% Floor), 2.05%, 12/15/36(b)(c) | | 710,000 | 673,995 |
| Series 2017-JP6, Class A5, 3.49%, 7/15/50 | | 235,000 | 230,583 |
|
| LSTAR Commercial Mortgage Trust, Series 2015-3, Class AS, 3.30%, 4/20/48(b)(d) | | 57,505 | 56,254 |
| MHC Trust, Series 2021-MHC2, Class A, (1M USD LIBOR + 0.85%, 0.85% Floor), 1.40%, 5/15/23(b)(c) | | 240,000 | 235,128 |
| Morgan Stanley Capital I Trust, | | | |
| Series 2019-BPR, Class A, (1M USD LIBOR + 1.40%, 1.40% Floor), 1.95%, 5/15/36(b)(c) | | 410,000 | 404,460 |
| Series 2019-L2, Class XA, 1.19%, 3/15/52(d) | | 2,543,838 | 140,118 |
|
| OPG Trust, Series 2021-PORT, Class A, (1M USD LIBOR + 0.48%, 0.48% Floor), 1.04%, 10/15/36(b)(c) | | 840,000 | 811,076 |
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
|
| SFO Commercial Mortgage Trust, Series 2021-555, Class A, (1M USD LIBOR + 1.15%, 1.15% Floor), 1.70%, 5/15/38(b)(c) | | $ 200,000 | $ 195,494 |
| SMRT, Series 2022-MINI, Class A, (1M CME Term SOFR + 1.00%, 1.00% Floor), 1.52%, 1/15/39(b)(c) | | 310,000 | 305,343 |
| Soho Trust, Series 2021-SOHO, Class A, 2.79%, 8/10/38(b)(d) | | 846,000 | 734,479 |
| VASA Trust, Series 2021-VASA, Class A, (1M USD LIBOR + 0.90%, 0.90% Floor), 1.45%, 7/15/39(b)(c) | | 410,000 | 400,743 |
| Wells Fargo Commercial Mortgage Trust, | | | |
| Series 2015-P2, Class D, 3.24%, 12/15/48(b) | | 147,000 | 119,572 |
| Series 2016-BNK1, Class B, 2.97%, 8/15/49 | | 300,000 | 271,463 |
| Series 2017-C38, Class A5, 3.45%, 7/15/50 | | 315,000 | 307,271 |
| | | | 20,665,533 |
| Federal Home Loan Mortgage Corporation – 4.6% |
| Multiclass Certificates, Series 2020-RR07, Class BX, 2.61%, 10/27/28 | | 4,160,000 | 543,192 |
| Multifamily Structured Pass Through Certificates, | | | |
| Series K736, Class X1, 1.43%, 7/25/26(d) | | 1,024,034 | 43,927 |
| Series K095, Class XAM, 1.37%, 6/25/29(d) | | 500,000 | 38,735 |
| Series K-1517, Class X1, 1.44%, 7/25/35(d) | | 239,624 | 30,733 |
| Pool, | | | |
| 3.00%, 10/01/32 - 2/01/52 | | 5,847,321 | 5,568,635 |
| 3.50%, 4/01/33 - 2/01/52 | | 1,341,711 | 1,322,019 |
| 2.00%, 7/01/41 - 2/01/52 | | 10,370,353 | 9,231,340 |
| 1.50%, 10/01/41 | | 38,529 | 33,032 |
| 4.00%, 1/01/45 - 6/01/50 | | 2,032,904 | 2,052,641 |
| (1Y USD LIBOR + 1.62%, 1.62% Floor, 7.87% Cap), 2.87%, 11/01/47(c) | | 225,095 | 224,779 |
| (1Y USD LIBOR + 1.63%, 1.63% Floor, 8.01% Cap), 3.01%, 11/01/48(c) | | 795,211 | 785,409 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Federal Home Loan Mortgage Corporation
(Continued) |
| Pool, | | | |
| 4.50%, 1/01/49 - 1/01/51 | | $1,556,844 | $1,613,399 |
| 6/01/49 - 4/01/52(g) | | 8,121,691 | 7,519,159 |
| 5.00%, 11/01/49 | | 76,039 | 79,647 |
| (1Y USD LIBOR + 1.62%, 1.62% Floor, 8.09% Cap), 3.09%, 2/01/50(c) | | 392,797 | 390,307 |
| 2.50%, 7/01/50 - 3/01/52 | | 7,760,674 | 7,121,898 |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2019-RR01, Class X, 1.53%, 6/25/28 | | 2,500,000 | 195,200 |
| Series 5100, Class MI, 3.50%, 9/25/48 | | 173,322 | 31,450 |
| Series 5148, Class BI, 2.50%, 1/25/49 | | 864,622 | 141,652 |
| Series 5140, Class NI, 2.50%, 5/25/49 | | 386,318 | 53,172 |
| Series 5148, Class CI, 2.00%, 6/25/49 | | 486,568 | 57,611 |
| Series 4940, Class PI, 4.00%, 7/25/49 | | 38,319 | 5,968 |
| Series 4995, Class BI, 4.50%, 6/25/50 | | 43,662 | 8,450 |
| Series 5010, Class IK, 2.50%, 9/25/50 | | 72,791 | 11,065 |
| Series 5010, Class JI, 2.50%, 9/25/50 | | 344,788 | 57,460 |
| Series 5013, Class IN, 2.50%, 9/25/50 | | 90,105 | 15,023 |
| Series 5129, Class IO, 3.00%, 9/25/50 | | 112,836 | 15,872 |
| Series 5014, Class DI, 4.00%, 9/25/50 | | 50,982 | 9,343 |
| Series 5018, Class MI, 2.00%, 10/25/50 | | 270,884 | 38,147 |
| Series 5018, Class CI, 4.50%, 10/25/50 | | 48,528 | 9,973 |
| Series 5040, Class IB, 2.50%, 11/25/50 | | 79,548 | 11,695 |
| Series 5059, Class IB, 2.50%, 1/25/51 | | 370,482 | 62,866 |
| Series 5069, Class MI, 2.50%, 2/25/51 | | 85,740 | 13,273 |
| Series 5139, Class IG, 3.00%, 9/25/51 | | 324,662 | 45,455 |
| Series 5142, Class IP, 3.00%, 9/25/51 | | 86,580 | 13,020 |
| Series 5142, Class PI, 3.00%, 9/25/51 | | 91,060 | 14,134 |
| Series 5145, Class HI, 3.00%, 9/25/51 | | 88,120 | 12,761 |
| Series 5155, Class JI, 3.00%, 10/25/51 | | 89,779 | 11,807 |
| | | Par (a) | Value |
Federal Home Loan Mortgage Corporation
(Continued) |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 5155, Class NI, 3.00%, 10/25/51 | | $ 178,745 | $ 23,521 |
| Series 5167, Class MI, 3.00%, 11/25/51 | | 93,097 | 11,946 |
| Series 5224, Class HL, 4.00%, 4/25/52 | | 500,000 | 499,373 |
|
| Strips, Series 334, Class S7, (6.10% - 1M USD LIBOR, 6.10% Cap), 5.55%, 8/15/44(c) | | 25,150 | 3,772 |
| | | | 37,972,861 |
Federal Home Loan Mortgage Corporation Gold –
0.7% |
| Pool, | | | |
| 3.00%, 10/01/32 - 9/01/48 | | 908,425 | 893,298 |
| 3.50%, 6/01/46 - 4/01/49 | | 3,253,046 | 3,202,067 |
| 4.50%, 4/01/47 - 4/01/49 | | 702,511 | 728,063 |
| 4.00%, 6/01/48 | | 786,043 | 794,763 |
| 5.00%, 11/01/48 | | 37,918 | 39,577 |
| | | | 5,657,768 |
| Federal National Mortgage Association – 10.5% |
| Alternative Credit Enhancement Securities, | | | |
| Series 2019-M6, Class A2, 3.45%, 1/01/29 | | 87,511 | 87,505 |
| Series 2019-M23, Class 3A3, 2.72%, 10/25/31 | | 91,779 | 86,509 |
| Series 2020-M36, Class X1, 1.55%, 9/25/34(d) | | 589,073 | 52,651 |
| Series 2013-M6, Class 1AC, 3.46%, 2/25/43(d) | | 54,740 | 53,646 |
|
| Interest Strip, Series 409, Class C18, 4.00%, 4/25/42 | | 9,318 | 1,677 |
| Pool, | | | |
| 3.00%, 9/01/28 - 12/01/54 | | 14,891,787 | 14,278,445 |
| 3.16%, 5/01/29 | | 57,699 | 56,967 |
| 2.93%, 6/01/30 | | 19,307 | 18,630 |
| 2.15%, 2/01/32(d) | | 19,997 | 17,894 |
| 2.50%, 12/01/33 - 4/01/52 | | 16,529,932 | 15,243,744 |
| 3.50%, 1/01/34 - 4/01/52 | | 9,660,193 | 9,488,823 |
| 1.50%, 12/01/35 - 12/01/41 | | 3,459,025 | 2,972,218 |
| 3/01/41 - 4/01/52(g) | | 8,619,317 | 8,015,023 |
| 6.00%, 7/01/41 | | 36,204 | 40,006 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Federal National Mortgage Association (Continued) |
| Pool, | | | |
| 2.00%, 10/01/41 - 3/01/52 | | $14,139,647 | $12,541,836 |
| 4.50%, 11/01/43 - 1/01/59 | | 6,532,518 | 6,744,561 |
| 4.00%, 7/01/44 - 10/01/51 | | 11,506,090 | 11,528,861 |
| 5.00%, 8/01/48 - 9/01/49 | | 1,358,945 | 1,429,597 |
| 3.50%, 1/01/51(p) | | 3,480,696 | 3,382,207 |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2013-54, Class BS, (6.15% - 1M USD LIBOR, 6.15% Cap), 5.48%, 6/25/43(c) | | 22,757 | 3,549 |
| Series 2021-69, Class IJ, 2.50%, 1/25/49 | | 882,425 | 132,141 |
| Series 2021-61, Class KI, 2.50%, 4/25/49 | | 577,776 | 94,134 |
| Series 2020-32, Class PI, 4.00%, 5/25/50 | | 104,142 | 19,656 |
| Series 2020-47, Class GZ, 2.00%, 7/25/50 | | 207,463 | 150,127 |
| Series 2020-56, Class DI, 2.50%, 8/25/50 | | 168,844 | 28,097 |
| Series 2020-74, Class EI, 2.50%, 10/25/50 | | 82,418 | 13,815 |
| Series 2020-77, Class HI, 4.00%, 11/25/50 | | 326,600 | 58,303 |
| Series 2020-89, Class DI, 2.50%, 12/25/50 | | 247,886 | 37,295 |
| Series 2020-97, Class AI, 2.00%, 1/25/51 | | 463,860 | 63,694 |
| Series 2021-3, Class QI, 2.50%, 2/25/51 | | 785,494 | 121,780 |
| Series 2021-3, Class IB, 2.50%, 2/25/51 | | 276,144 | 47,295 |
| Series 2021-1, Class IG, 2.50%, 2/25/51 | | 179,798 | 29,104 |
| Series 2021-31, Class IB, 4.00%, 6/25/51 | | 143,380 | 27,491 |
| Series 2021-50, Class IO, 4.00%, 8/25/51 | | 315,518 | 58,336 |
| | | | 86,925,617 |
| Government National Mortgage Association – 2.7% |
Pool,
5/01/52 - 6/01/52(g) | | 20,470,571 | 19,465,101 |
| Series 2013-107, Class AD, 2.76%, 11/16/47(d) | | 93,488 | 89,866 |
| Series 2014-17, Class AM, 3.33%, 6/16/48(d) | | 11,307 | 11,271 |
| Series 2014-H20, Class FA, (1M USD LIBOR + 0.43%, 0.43% Floor), 0.67%, 10/20/64(c) | | 188,648 | 187,529 |
| Series 2020-123, Class IL, 2.50%, 8/20/50 | | 88,489 | 12,886 |
| | | Par (a) | Value |
Government National Mortgage Association
(Continued) |
| Series 2020-123, Class NI, 2.50%, 8/20/50 | | $ 173,246 | $ 25,095 |
| Series 2020-127, Class IN, 2.50%, 8/20/50 | | 86,355 | 12,403 |
| Series 2020-129, Class IE, 2.50%, 9/20/50 | | 89,149 | 13,465 |
| Series 2020-144, Class IO, 2.50%, 9/20/50 | | 161,269 | 20,005 |
| Series 2020-146, Class DI, 2.50%, 10/20/50 | | 82,706 | 10,720 |
| Series 2020-151, Class MI, 2.50%, 10/20/50 | | 500,090 | 68,572 |
| Series 2020-160, Class IH, 2.50%, 10/20/50 | | 90,882 | 13,704 |
| Series 2020-160, Class VI, 2.50%, 10/20/50 | | 89,322 | 13,394 |
| Series 2020-160, Class YI, 2.50%, 10/20/50 | | 269,705 | 39,782 |
| Series 2020-181, Class WI, 2.00%, 12/20/50 | | 432,602 | 50,587 |
| Series 2020-185, Class MI, 2.50%, 12/20/50 | | 85,889 | 12,127 |
| Series 2020-190, Class IO, 1.04%, 11/16/62(d) | | 3,276,523 | 268,993 |
| Series 2020-47, Class MI, 3.50%, 4/20/50 | | 311,993 | 49,876 |
| Series 2020-47, Class NI, 3.50%, 4/20/50 | | 81,578 | 12,268 |
| Series 2020-H04, Class FP, (1M USD LIBOR + 0.50%, 0.50% Floor), 0.74%, 6/20/69(c) | | 210,715 | 209,640 |
| Series 2020-H09, Class FL, (1M USD LIBOR + 1.15%, 1.15% Floor), 1.39%, 5/20/70(c) | | 146,855 | 149,775 |
| Series 2020-H13, Class FA, (1M USD LIBOR + 0.45%, 0.45% Floor, 7.50% Cap), 0.69%, 7/20/70(c) | | 797,944 | 790,635 |
| Series 2020-H13, Class FM, (1M USD LIBOR + 0.40%, 0.40% Floor, 11.00% Cap), 0.64%, 8/20/70(c) | | 206,921 | 206,026 |
| Series 2021-15, Class GI, 3.50%, 1/20/51 | | 83,128 | 14,028 |
| Series 2021-161, Class IB, 4.00%, 9/20/51 | | 79,489 | 11,261 |
| Series 2021-176, Class IA, 3.50%, 10/20/51 | | 81,572 | 11,813 |
| Series 2021-199, Class KI, 3.50%, 11/20/51 | | 89,310 | 11,031 |
| Series 2021-209, Class TJ, 3.50%, 11/20/51 | | 83,076 | 10,567 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Government National Mortgage Association
(Continued) |
| Series 2021-214, Class AI, 4.00%, 12/20/51 | | $ 118,298 | $ 18,612 |
| Series 2021-215, Class LI, 3.00%, 12/20/51 | | 95,831 | 10,757 |
| Series 2021-221, Class AI, 3.50%, 12/20/51 | | 171,514 | 19,940 |
| Series 2021-221, Class CI, 3.00%, 12/20/51 | | 87,180 | 13,133 |
| Series 2021-29, Class TI, 2.50%, 2/20/51 | | 484,442 | 91,614 |
| Series 2021-5, Class IO, 1.09%, 1/16/61(d) | | 3,617,895 | 299,324 |
| Series 2021-78, Class IC, 4.00%, 5/20/51 | | 77,708 | 11,458 |
| Series 2022-3, Class IO, 0.64%, 2/16/61(d) | | 99,548 | 6,211 |
| | | | 22,263,469 |
Government National Mortgage Association I –
0.0%(f) |
| Pool, | | | |
| 3.00%, 9/15/42 - 10/15/42 | | 191,405 | 184,103 |
| 3.50%, 6/15/48 - 5/15/50 | | 130,274 | 130,412 |
| | | | 314,515 |
| Government National Mortgage Association II – 1.5% |
| Pool, | | | |
| 1/07/39 | | 400,000 | 377,750 |
| 3.50%, 3/20/45 - 7/20/50 | | 2,094,143 | 2,071,204 |
| 3.00%, 8/20/46 - 9/20/51 | | 2,371,314 | 2,269,022 |
| 4.00%, 3/20/47 - 5/20/50 | | 1,868,733 | 1,893,699 |
| 4.50%, 4/20/47 - 12/20/50 | | 1,856,989 | 1,908,699 |
| 2.00%, 8/20/50 - 3/20/51 | | 1,180,057 | 1,072,920 |
| 11/20/50 (g) | | 662,562 | 603,959 |
| 2.50%, 10/20/51 - 12/20/51 | | 2,506,198 | 2,330,821 |
| | | | 12,528,074 |
| Uniform Mortgage-Backed Securities – 4.3% |
Pool,
5/01/37 - 7/01/52(g) | | 38,842,738 | 35,902,059 |
| Whole Loan – 2.2% |
| Adjustable Rate Mortgage Trust, Series 2005-9, Class 5A1, (1M USD LIBOR + 0.54%, 0.54% Floor, 11.00% Cap), 1.21%, 11/25/35(c) | | 145,956 | 146,522 |
| Cascade MH Asset Trust, Series 2021-MH1, Class A1, 1.75%, 2/25/46(b) | | 146,281 | 133,517 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| CIM Trust, Series 2021-R6, Class A1, 1.43%, 7/25/61(b) | | $324,293 | $300,448 |
| COLT Mortgage Loan Trust, Series 2022-2, Class A1, (Step to 3.99% on 3/25/26), 2.99%, 2/25/67(b)(e) | | 191,185 | 187,216 |
| CSMC, | | | |
| Series 2021-2R, Class 1A1, (1M USD LIBOR + 1.75%, 1.75% Floor), 2.55%, 7/25/47(b)(c) | | 309,440 | 301,168 |
| Series 2019-NQM1, Class A2, (Step to 3.86% on 12/25/23), 2.86%, 10/25/59(b)(e) | | 409,483 | 403,263 |
| Series 2021-NQM2, Class A3, 1.54%, 2/25/66(b) | | 108,290 | 103,221 |
| Series 2021-NQM6, Class A3, 1.59%, 7/25/66(b) | | 712,010 | 634,503 |
| Series 2021-NQM7, Class A1, 1.76%, 10/25/66(b) | | 171,792 | 161,692 |
| Series 2022-NQM1, Class A1, 2.27%, 11/25/66(b) | | 725,522 | 672,049 |
| CSMC Trust, | | | |
| Series 2021-RPL2, Class A1, 2.00%, 1/25/60(b) | | 134,265 | 124,721 |
| Series 2021-RPL3, Class A1, 2.00%, 1/25/60(b) | | 143,888 | 138,340 |
| Series 2021-RPL6, Class A1, 2.00%, 10/25/60(b) | | 172,989 | 161,440 |
| Series 2021-RPL4, Class A1, 1.80%, 12/27/60(b)(d) | | 173,255 | 163,804 |
|
| Deephaven Residential Mortgage Trust, Series 2022-1, Class A1, 2.21%, 1/25/67(b) | | 447,107 | 423,049 |
| Ellington Financial Mortgage Trust, | | | |
| Series 2021-2, Class A1, 0.93%, 6/25/66(b) | | 358,882 | 326,828 |
| Series 2022-1, Class A1, 2.21%, 1/25/67(b) | | 202,638 | 191,303 |
|
| FHLMC Structured Agency Credit Risk Debt Notes, Series 2014-DN3, Class M3, (1M USD LIBOR + 4.00%), 4.67%, 8/25/24(c) | | 41,394 | 41,812 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2014-C04, Class 1M2, (1M USD LIBOR + 4.90%), 5.57%, 11/25/24(c) | | $ 85,610 | $ 90,312 |
| Series 2016-C02, Class 1M2, (1M USD LIBOR + 6.00%), 6.67%, 9/25/28(c) | | 222,391 | 234,333 |
| Series 2016-C03, Class 1M2, (1M USD LIBOR + 5.30%), 5.97%, 10/25/28(c) | | 229,625 | 239,072 |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2021-DNA6, Class M2, (30D Average SOFR + 1.50%), 1.79%, 10/25/41(b)(c) | | 580,000 | 558,726 |
| Series 2022-DNA1, Class M1A, (30D Average SOFR + 1.00%), 1.29%, 1/25/42(b)(c) | | 820,000 | 805,137 |
| Series 2022-DNA3, Class M1B, (30D Average SOFR + 2.90%), 3.15%, 4/25/42(b)(c) | | 550,000 | 550,687 |
| Series 2020-DNA6, Class M1, (30D Average SOFR + 0.90%), 1.19%, 12/25/50(b)(c) | | 14,687 | 14,670 |
| Freddie Mac Structured Agency Credit Risk Debt Notes, | | | |
| Series 2021-DNA2, Class M2, (30D Average SOFR + 2.30%), 2.59%, 8/25/33(b)(c) | | 190,000 | 187,408 |
| Series 2022-DNA2, Class M1A, (30D Average SOFR + 1.30%), 1.59%, 2/25/42(b)(c) | | 617,672 | 612,267 |
| Series 2022-DNA2, Class M1B, (30D Average SOFR + 2.40%), 2.69%, 2/25/42(b)(c) | | 200,000 | 195,875 |
|
| GSR Mortgage Loan Trust, Series 2007-1F, Class 2A4, 5.50%, 1/25/37 | | 175,016 | 208,841 |
| HarborView Mortgage Loan Trust, | | | |
| Series 2005-9, Cllass 2A1B, (1M USD LIBOR + 0.74%, 0.74% Floor, 11.00% Cap), 1.33%, 6/20/35(c) | | 154,607 | 150,479 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| HarborView Mortgage Loan Trust, | | | |
| Series 2005-9, Cllass 2A1C, (1M USD LIBOR + 0.90%, 0.90% Floor, 11.00% Cap), 1.49%, 6/20/35(c) | | $569,923 | $551,279 |
|
| Impac CMB Trust, Series 2007-A, Class A, (1M USD LIBOR + 0.50%, 0.50% Floor, 11.50% Cap), 1.17%, 5/25/37(b)(c) | | 198,797 | 195,462 |
| Legacy Mortgage Asset Trust, | | | |
| Series 2021-GS2, Class A1, (Step to 4.75% on 5/25/24), 1.75%, 4/25/61(b)(e) | | 314,914 | 298,235 |
| Series 2021-GS5, Class A1, (Step to 5.25% on 12/25/24), 2.25%, 7/25/67(b)(e) | | 193,332 | 185,494 |
| MASTR Asset Securitization Trust, | | | |
| Series 2007-1, Class 1A4, 6.50%, 11/25/37 | | 616,224 | 201,164 |
| Series 2007-2, Class A2, 6.25%, 1/25/38 | | 380,936 | 255,455 |
|
| Merrill Lynch Mortgage Investors Trust, Series 2004-A1, Class 2A2, 2.32%, 2/25/34(d) | | 255,917 | 257,278 |
| Mill City Mortgage Loan Trust, Series 2019-1, Class A1, 3.25%, 10/25/69(b)(d) | | 349,269 | 341,510 |
| Morgan Stanley Resecuritization Trust, Series 2015-R2, Class 2A1, (12MTA + 1.09%, 1.09% Floor), 2.40%, 12/26/46(b)(c) | | 77,964 | 78,405 |
| New Residential Mortgage Loan Trust, | | | |
| Series 2015-2A, Class A1, 3.75%, 8/25/55(b) | | 253,804 | 247,107 |
| Series 2021-NQM3, Class A1, 1.16%, 11/27/56(b) | | 207,407 | 195,318 |
| Series 2017-2A, Class B2, 4.75%, 3/25/57(b) | | 269,316 | 265,264 |
| Series 2018-RPL1, Class M2, 3.50%, 12/25/57(b) | | 280,000 | 264,487 |
| Series 2018-3A, Class A1, 4.50%, 5/25/58(b)(d) | | 735,931 | 737,620 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| New Residential Mortgage Loan Trust, | | | |
| Series 2019-NQM4, Class A1, 2.49%, 9/25/59(b) | | $110,860 | $109,508 |
| Series 2019-6A, Class A1B, 3.50%, 9/25/59(b)(d) | | 672,979 | 654,945 |
| Series 2019-6A, Class B3C, 3.75%, 9/25/59(b)(d) | | 571,258 | 542,391 |
| Series 2022-NQM3, Class A1, 3.90%, 4/25/62(b)(d) | | 800,000 | 788,962 |
| OBX Trust, | | | |
| Series 2021-NQM2, Class A1, 1.10%, 5/25/61(b) | | 620,417 | 576,829 |
| Series 2021-NQM3, Class A1, 1.05%, 7/25/61(b) | | 195,677 | 177,181 |
| Series 2022-NQM1, Class A1, 2.31%, 11/25/61(b) | | 757,571 | 711,806 |
|
| PRKCM Trust, Series 2021-AFC2, Class A1, 2.07%, 11/25/56(b) | | 200,489 | 186,811 |
| Residential Mortgage Loan Trust, | | | |
| Series 2019-2, Class A1, 2.91%, 5/25/59(b) | | 75,150 | 74,906 |
| Series 2020-2, Class A1, 1.65%, 5/25/60(b) | | 139,933 | 139,050 |
|
| SG Residential Mortgage Trust, Series 2022-1, Class A1, 3.17%, 3/27/62(b)(d) | | 782,958 | 758,845 |
| Thornburg Mortgage Securities Trust, Series 2004-2, Class A4, (1M USD LIBOR + 0.68%, 0.34% Floor, 11.50% Cap), 1.35%, 6/25/44(c) | | 287,486 | 276,667 |
| Voyager OPTONE Delaware Trust, Series 2009-1, Class SAA7, 6.64%, 2/25/38(b)(d) | | 177,182 | 52,248 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
|
| WaMu Mortgage Pass-Through Certificates, Series 2006-AR13, Class 1A, (12MTA + 0.88%, 0.88% Floor), 1.10%, 10/25/46(c) | | $303,695 | $ 281,736 |
| ZH Trust, Series 2021-2, Class A, 2.35%, 10/17/27(b) | | 233,492 | 231,398 |
| | | | 18,100,064 |
Total Mortgage-Backed Securities
(Cost $252,779,294) | 240,329,960 |
|
| Municipal Bonds – 0.3% |
| California – 0.1% |
| Bay Area Toll Authority Toll Bridge Subordinate Revenue Bonds, Series S1, Build America Bonds, 7.04%, 4/01/50 | | 150,000 | 214,195 |
| California State Taxable GO Unlimited Refunding Bonds, 4.60%, 4/01/38 | | 215,000 | 224,291 |
| California State Various Purpose Taxable GO Unlimited Bonds, Build America Bonds, | | | |
| 7.50%, 4/01/34 | | 65,000 | 85,414 |
| 7.55%, 4/01/39 | | 20,000 | 27,735 |
|
| Los Angeles Community College District GO Unlimited Bonds, Build America Bonds, 6.60%, 8/01/42 | | 45,000 | 59,065 |
| Los Angeles Unified School District GO Unlimited Bonds, Series RY, Build America Bonds, 6.76%, 7/01/34 | | 215,000 | 258,026 |
| University of California Taxable General Revenue Bonds, Series AD, 4.86%, 5/15/12(q) | | 25,000 | 25,099 |
| | | | 893,825 |
| Georgia – 0.0%(f) |
| Municipal Electric Authority of Georgia Taxable Revenue Bonds, Build America Bonds, 6.64%, 4/01/57 | | 40,000 | 49,086 |
| Illinois – 0.1% |
| Illinois State Taxable GO Unlimited Pension Bonds, 5.10%, 6/01/33 | | 380,000 | 388,850 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| New Jersey – 0.0%(f) |
| New Jersey State Turnpike Authority Taxable Revenue Bonds, Build America Bonds, 7.41%, 1/01/40 | | $66,000 | $ 89,628 |
| New York – 0.1% |
| Metropolitan Transportation Authority Revenue Bonds, Build America Bonds, 5.87%, 11/15/39 | | 45,000 | 50,475 |
| New York City Municipal Water Finance Authority Water & Sewer System Second General Resolution Taxable Revenue Bonds, 5.88%, 6/15/44 | | 30,000 | 37,628 |
| New York City Municipal Water Finance Authority Water & Sewer System Taxable Revenue Bonds, Build America Bonds, 6.01%, 6/15/42 | | 25,000 | 31,409 |
| New York State Dormitory Authority Personal Income TRB, Build America Bonds, 5.39%, 3/15/40 | | 30,000 | 33,266 |
| Port Authority of New York & New Jersey Consolidated 164th Taxable Revenue Bonds, 5.65%, 11/01/40 | | 35,000 | 40,667 |
| Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds, 4.93%, 10/01/51 | | 55,000 | 60,858 |
| Port Authority of New York & New Jersey Consolidated Taxable Revenue Bonds, Series 181, 4.96%, 8/01/46 | | 60,000 | 65,689 |
| | | | 319,992 |
| Ohio – 0.0%(f) |
| American Municipal Power-Ohio, Inc., Taxable Revenue Bonds, Series B, Combined Hydroelectric Projects, 8.08%, 2/15/50 | | 75,000 | 114,149 |
| | | Par (a) | Value |
| Texas – 0.0%(f) |
| San Antonio Electric & Gas Junior Lien Revenue Bonds, Build America Bonds, 5.81%, 2/01/41 | | $ 75,000 | $ 87,835 |
| Texas State Taxable GO Unlimited Bonds, Build America Bonds, 5.52%, 4/01/39 | | 115,000 | 134,179 |
| | | | 222,014 |
| Washington – 0.0%(f) |
| Seattle Municipal Light & Power Improvement Revenue Bonds, 5.00%, 4/01/44 | | 275,000 | 303,618 |
Total Municipal Bonds
(Cost $2,603,873) | 2,381,162 |
|
| Term Loans – 0.2% |
| Aerospace/Defense – 0.0%(f) |
| Cobham Ultra U.S. Co-Borrower LLC, Term Loan, 11/17/28(r) | | 20,000 | 19,815 |
| Apparel – 0.0%(f) |
| Fanatics Commerce Intermediate Holdco LLC, Initial Term Loan, (Floating, ICE LIBOR USD 1M + 3.25%), 4.06%, 11/24/28(c) | | 28,928 | 28,711 |
| Building Materials – 0.0%(f) |
| CP Iris Holdco I, Inc., Delayed Draw Term Loan, 10/02/28(r) | | 3,480 | 3,407 |
| CP Iris Holdco I, Inc., Initial Term Loan, (Floating, ICE LIBOR USD 1M + 3.50%), 4.26%, 10/02/28(c) | | 17,399 | 17,035 |
| Zurn LLC, Term B Loan, (Floating, ICE LIBOR USD 1M + 2.25%), 3.01%, 10/04/28(c) | | 5,985 | 5,961 |
| | | | 26,403 |
| Chemicals – 0.1% |
| Bakelite UK Intermediate Ltd., Term Loan, 2/02/29(r) | | 128,000 | 125,440 |
| LSF11 A5 Holdco LLC, Term Loan, (Floating, ICE CME Term SOFR USD 1M + 3.50%), 4.31%, 10/15/28(c) | | 100,000 | 98,275 |
| | | | 223,715 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Commercial Services – 0.0%(f) |
| AEA International Holdings (Luxembourg) S.a.r.l. Initial Term Loan (First Lien), (Floating, ICE LIBOR USD 3M + 3.75%), 4.81%, 9/07/28(c) | | $ 74,713 | $ 74,433 |
| Allied Universal Holdco LLC, Initial U.S. Dollar Term Loan, (Floating, ICE LIBOR USD 1M + 3.75%), 4.51%, 5/12/28(c) | | 67,660 | 65,834 |
| | | | 140,267 |
| Distribution/Wholesale – 0.0%(f) |
| KAR Auction Services, Inc., Tranche B-6 Term Loan, (Floating, ICE LIBOR USD 1M + 2.25%), 3.06%, 9/19/26(c) | | 14,454 | 14,363 |
| Entertainment – 0.1% |
| Bally's Corp., Term B Facility Loan, (Floating, ICE LIBOR USD 3M + 3.25%), 3.75%, 10/02/28(c) | | 162,592 | 160,967 |
| Herschend Entertainment Company LLC, Initial Term Loan, (Floating, ICE LIBOR USD 1M + 3.75%), 4.56%, 8/28/28(c) | | 37,810 | 37,526 |
| Scientific Games Holdings L.P., Initial Dollar Term Loan, (Floating, ICE CME Term SOFR USD 3M + 3.50%), 4.18%, 4/04/29(c) | | 80,000 | 79,114 |
| Seaworld Parks & Entertainment, Inc., Term B Loan, (Floating, ICE LIBOR USD 1M + 3.00%), 3.81%, 8/25/28(c) | | 235,815 | 232,179 |
| | | | 509,786 |
| Food – 0.0%(f) |
| BCPE North Star U.S. Holdco 2, Inc., Initial Term Loan, (Floating, ICE LIBOR USD 3M + 4.00%), 5.01%, 6/09/28(c) | | 84,787 | 82,615 |
| Healthcare - Products – 0.0%(f) |
| Medline Borrower L.P., Initial Dollar Term Loan, (Floating, ICE LIBOR USD 1M + 3.25%), 4.01%, 10/23/28(c) | | 192,000 | 188,640 |
| | | Par (a) | Value |
| Holding Companies - Diversified – 0.0%(f) |
| SWF Holdings I Corp., Initial Term Loan, (Floating, ICE LIBOR USD 1M + 4.00%), 4.75%, 10/06/28(c) | | $ 39,000 | $ 36,051 |
| Internet – 0.0%(f) |
| Olaplex, Inc., Initial Term Loan, (Floating, ICE CME Term SOFR USD 3M + 3.75%), 4.80%, 2/23/29(c) | | 207,000 | 206,483 |
| Lodging – 0.0%(f) |
| Jack Ohio Finance LLC, Initial Term Loan, (Floating, ICE LIBOR USD 1M + 4.75%), 5.51%, 10/04/28(c) | | 25,935 | 25,481 |
| Media – 0.0%(f) |
| Gray Television, Inc., Term D Loan, 12/01/28(r) | | 111,000 | 110,133 |
| Oil & Gas – 0.0%(f) |
| Southwestern Energy Company, Initial Loan, (Floating, ICE CME Term SOFR USD 3M + 2.50%), 3.15%, 6/22/27(c) | | 74,813 | 74,625 |
| Packaging & Containers – 0.0%(f) |
| Valcour Packaging LLC, Initial Term Loan, (Floating, ICE LIBOR USD 3M + 3.75%), 5.22%, 10/04/28(c) | | 15,000 | 14,738 |
| Retail – 0.0%(f) |
| Foundation Building Materials, Inc., Initial Term Loan, | | | |
| (Floating, ICE LIBOR USD 1M + 3.25%), 4.01%, 1/29/28(c) | | 290 | 279 |
| (Floating, ICE LIBOR USD 3M + 3.25%), 4.49%, 1/29/28(c) | | 114,840 | 110,677 |
|
| Leslie's Poolmart, Inc., Initial Term Loan, (Floating, ICE LIBOR USD 3M + 2.50%), 3.02%, 3/09/28(c) | | 21,345 | 21,052 |
| Tory Burch LLC, Initial Term B Loan, (Floating, ICE LIBOR USD 1M + 3.00%), 3.76%, 4/16/28(c) | | 69,475 | 67,217 |
| | | | 199,225 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Software – 0.0%(f) |
| ConnectWise LLC, Initial Term Loan, (Floating, ICE LIBOR USD 1M + 3.50%), 4.26%, 9/30/28(c) | | $ 78,802 | $ 78,211 |
Total Term Loans
(Cost $2,000,890) | 1,979,262 |
|
| U.S. Government Obligations – 18.6% |
| U.S. Treasury Bonds – 9.1% |
| 4.25%, 5/15/39 | | 51,000 | 59,393 |
| 4.50%, 8/15/39 | | 51,000 | 61,178 |
| 4.38%, 11/15/39 | | 51,000 | 60,174 |
| 4.63%, 2/15/40 | | 370,000 | 450,417 |
| 1.13%, 5/15/40 | | 1,108,000 | 798,323 |
| 3.88%, 8/15/40 | | 370,000 | 409,457 |
| 1.13%, 8/15/40 | | 1,108,000 | 794,471 |
| 4.25%, 11/15/40 | | 370,000 | 428,391 |
| 1.38%, 11/15/40 | | 1,108,000 | 829,182 |
| 1.88%, 2/15/41 | | 3,750,000 | 3,061,523 |
| 2.25%, 5/15/41 | | 1,130,000 | 979,127 |
| 1.75%, 8/15/41(p) | | 2,570,000 | 2,035,922 |
| 2.00%, 11/15/41 | | 1,690,000 | 1,398,739 |
| 3.13%, 2/15/43 | | 198,000 | 195,548 |
| 2.88%, 5/15/43 | | 198,000 | 187,706 |
| 3.63%, 8/15/43 | | 198,000 | 211,094 |
| 3.75%, 11/15/43 | | 198,000 | 215,062 |
| 2.50%, 2/15/45(p) | | 3,341,000 | 2,957,438 |
| 2.88%, 11/15/46 | | 193,000 | 183,795 |
| 2.75%, 11/15/47(p) | | 3,341,000 | 3,122,661 |
| 3.00%, 2/15/48(p) | | 3,264,000 | 3,207,008 |
| 1.63%, 11/15/50(p) | | 8,620,000 | 6,336,373 |
| 1.88%, 2/15/51(p) | | 22,470,000 | 17,609,985 |
| 2.38%, 5/15/51(p) | | 23,210,000 | 20,433,866 |
| 2.00%, 8/15/51 | | 3,840,000 | 3,102,600 |
| 1.88%, 11/15/51 | | 1,449,000 | 1,136,559 |
| 2.25%, 2/15/52 | | 6,126,000 | 5,259,745 |
| | | | 75,525,737 |
| U.S. Treasury Notes – 9.5% |
| 2.75%, 5/31/23 | | 392,000 | 394,144 |
| 0.13%, 5/31/23 | | 1,269,000 | 1,240,794 |
| 0.25%, 11/15/23 | | 30,000 | 28,963 |
| 2.25%, 3/31/24(h) | | 104,000 | 103,122 |
| 2.13%, 7/31/24 | | 392,000 | 386,350 |
| 1.75%, 7/31/24 | | 662,000 | 647,157 |
| 1.50%, 9/30/24 | | 384,000 | 372,135 |
| 1.50%, 10/31/24 | | 5,809,000 | 5,620,207 |
| 2.25%, 11/15/24(p) | | 1,540,000 | 1,516,720 |
| 1.75%, 12/31/24(p) | | 6,696,000 | 6,502,967 |
| 2.00%, 2/15/25 | | 487,000 | 475,510 |
| 1.50%, 2/15/25 | | 63,000 | 60,652 |
| | | Par (a) | Value |
| U.S. Treasury Notes (Continued) |
| 0.50%, 3/31/25 | | $ 1,540,000 | $ 1,437,975 |
| 0.38%, 4/30/25 | | 7,349,000 | 6,820,791 |
| 2.13%, 5/15/25 | | 420,000 | 410,419 |
| 0.25%, 5/31/25 | | 9,100,000 | 8,389,773 |
| 0.25%, 10/31/25 | | 80,000 | 72,878 |
| 0.38%, 11/30/25 | | 1,286,000 | 1,173,927 |
| 0.38%, 12/31/25 | | 1,286,000 | 1,171,667 |
| 0.38%, 1/31/26(p) | | 250,000 | 227,207 |
| 0.75%, 4/30/26 | | 930,000 | 853,057 |
| 0.75%, 5/31/26 | | 6,736,000 | 6,165,545 |
| 1.50%, 8/15/26 | | 558,000 | 525,087 |
| 1.63%, 11/30/26 | | 1,555,000 | 1,466,681 |
| 1.88%, 2/28/27 | | 3,000 | 2,857 |
| 0.63%, 3/31/27 | | 621,000 | 555,552 |
| 0.50%, 4/30/27 | | 621,000 | 550,701 |
| 2.38%, 5/15/27 | | 614,000 | 597,571 |
| 0.50%, 5/31/27 | | 484,000 | 428,170 |
| 2.25%, 8/15/27(p) | | 2,561,000 | 2,471,865 |
| 0.75%, 1/31/28 | | 5,350,000 | 4,724,510 |
| 1.25%, 3/31/28 | | 3,438,000 | 3,117,836 |
| 1.25%, 4/30/28 | | 443,000 | 401,313 |
| 1.25%, 5/31/28 | | 12,640,000 | 11,433,275 |
| 2.88%, 8/15/28(p) | | 122,000 | 121,309 |
| 1.25%, 9/30/28 | | 87,000 | 78,269 |
| 3.13%, 11/15/28 | | 329,000 | 332,033 |
| 1.38%, 12/31/28 | | 44,000 | 39,806 |
| 2.63%, 2/15/29 | | 548,000 | 536,826 |
| 1.88%, 2/28/29(h) | | 34,000 | 31,753 |
| 2.38%, 3/31/29 | | 9,000 | 8,677 |
| 2.88%, 4/30/29 | | 3,200,000 | 3,185,000 |
| 2.38%, 5/15/29 | | 548,000 | 528,049 |
| 1.63%, 8/15/29(h) | | 890,000 | 814,559 |
| 1.75%, 11/15/29 | | 453,000 | 417,609 |
| 1.50%, 2/15/30 | | 869,000 | 783,865 |
| 1.13%, 2/15/31 | | 207,000 | 178,651 |
| 1.63%, 5/15/31 | | 109,000 | 97,968 |
| 1.25%, 8/15/31 | | 420,000 | 363,759 |
| 1.88%, 2/15/32 | | 457,000 | 417,298 |
| | | | 78,282,809 |
Total U.S. Government Obligations
(Cost $175,034,880) | 153,808,546 |
| | | Number
of Shares | |
| Investment Companies – 17.7% |
| BlackRock Allocation Target Shares - BATS, Series A | | 7,512,328 | 71,892,978 |
| Schwab Intermediate-Term U.S. Treasury ETF | | 321,586 | 16,642,076 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Number
of Shares | Value |
| Schwab Short-Term U.S. Treasury ETF | | 845,934 | $ 41,687,628 |
| Vanguard Long-Term Treasury ETF(h) | | 226,224 | 16,487,205 |
Total Investment Companies
(Cost $154,640,052) | 146,709,887 |
| | | Par (a)/Number
of Shares | |
| Short-Term Investments – 8.1% |
| Borrowed Bond Agreements – 0.6% |
| Barclays Capital, Inc., 0.22%, Open (Purchased on 4/29/22 to be repurchased at $1,528,791, collateralized by U.S. Treasury Bonds, 1.88%, due 2/15/51, par and fair value of $1,926,000 and $1,528,763, respectively)(s) | | $1,528,762 | 1,528,762 |
| Barclays Capital, Inc., 0.22%, Open (Purchased on 4/29/22 to be repurchased at $44,040, collateralized by U.S. Treasury Bonds, 2.38%, due 5/15/51, par and fair value of $49,000 and $44,039, respectively)(s) | | $ 44,039 | 44,039 |
| BofA Securities, Inc., 0.20%, Open (Purchased on 4/29/22 to be repurchased at $1,765, collateralized by U.S. Treasury Notes, 1.38%, due 11/15/31, par and fair value of $2,000 and $1,765, respectively)(s) | | $ 1,765 | 1,765 |
| BofA Securities, Inc., 0.20%, Open (Purchased on 4/29/22 to be repurchased at $135,332, collateralized by U.S. Treasury Bonds, 2.25%, due 8/15/49, par and fair value of $156,000 and $135,330, respectively)(s) | | $ 135,330 | 135,330 |
| | | Par (a)/Number
of Shares | Value |
| Borrowed Bond Agreements (Continued) |
| BofA Securities, Inc., 0.20%, Open (Purchased on 4/29/22 to be repurchased at $254,422, collateralized by U.S. Treasury Notes, 0.88%, due 11/15/30, par and fair value of $298,000 and $254,418, respectively)(s) | | $ 254,418 | $ 254,418 |
| BofA Securities, Inc., 0.20%, Open (Purchased on 4/29/22 to be repurchased at $326,143, collateralized by U.S. Treasury Notes, 0.63%, due 8/15/30, par and fair value of $390,000 and $326,138, respectively)(s) | | $ 326,137 | 326,137 |
| BNP Paribas SA, 0.19%, Open (Purchased on 4/29/22 to be repurchased at $1,348,545, collateralized by U.S. Treasury Notes, 0.63%, due 5/15/30, par and fair value of $1,603,000 and $1,348,524, respectively)(s) | | $1,348,524 | 1,348,524 |
| BofA Securities, Inc., 0.20%, Open (Purchased on 4/29/22 to be repurchased at $981,489, collateralized by U.S. Treasury Bonds, 1.25%, due 5/15/50, par and fair value of $1,446,000 and $981,473, respectively)(s) | | $ 981,472 | 981,472 |
| BofA Securities, Inc., 0.20%, Open (Purchased on 4/29/22 to be repurchased at $515,897, collateralized by U.S. Treasury Bonds, 1.63%, due 11/15/50, par and fair value of $689,000 and $515,889, respectively)(s) | | $ 515,889 | 515,889 |
| | | | 5,136,336 |
| Corporate Bonds – 0.4% |
| AbbVie, Inc., 2.30%, 11/21/22 | | $ 555,000 | 554,912 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a)/Number
of Shares | Value |
| Corporate Bonds (Continued) |
| American Airlines Pass Through Trust, Series 2013-2, Class A, 4.95%, 1/15/23 | | $ 24,744 | $ 24,579 |
| Anthem, Inc., 2.95%, 12/01/22 | | 30,000 | 30,108 |
| Bank of America Corp., 3.30%, 1/11/23 | | 270,000 | 272,172 |
| Bristol-Myers Squibb Co., 2.60%, 5/16/22 | | 110,000 | 110,073 |
| Continental Resources, Inc., 4.50%, 4/15/23 | | 90,000 | 91,008 |
| Dollar General Corp., 3.25%, 4/15/23 | | 10,000 | 10,036 |
| Eaton Corp., 2.75%, 11/02/22 | | 40,000 | 40,106 |
| Edison International, 3.13%, 11/15/22 | | 15,000 | 15,021 |
| Energy Transfer L.P., 3.60%, 2/01/23 | | 653,000 | 654,175 |
| Exxon Mobil Corp., 1.57%, 4/15/23 | | 10,000 | 9,917 |
| General Motors Financial Co., Inc., 3.55%, 7/08/22 | | 329,000 | 330,192 |
| Goldman Sachs Group (The), Inc., 3.20%, 2/23/23 | | 40,000 | 40,141 |
| International Lease Finance Corp., 5.88%, 8/15/22 | | 230,000 | 231,869 |
| Newell Brands, Inc., 4.10%, 4/01/23 | | 20,000 | 20,013 |
| Pacific Gas and Electric Co., 1.75%, 6/16/22 | | 160,000 | 159,892 |
| Penske Truck Leasing Co. L.P./PTL Finance Corp., | | | |
| 2.70%, 3/14/23(b) | | 51,000 | 50,829 |
| 4.25%, 1/17/23(b) | | 4,000 | 4,037 |
|
| Philip Morris International, Inc., 2.50%, 8/22/22 | | 330,000 | 330,630 |
| Sabine Pass Liquefaction LLC, 5.63%, 4/15/23 | | 100,000 | 101,570 |
| State Street Corp., (3M USD LIBOR + 3.60%), 4.42%, 6/15/22(c)(j) | | 26,000 | 25,865 |
| United Airlines Pass Through Trust, Series 2014-2, Class B, 4.63%, 9/03/22 | | 3,597 | 3,611 |
| UnitedHealth Group, Inc., 2.38%, 10/15/22 | | 20,000 | 20,008 |
| | | Par (a)/Number
of Shares | Value |
| Corporate Bonds (Continued) |
|
| Virginia Electric and Power Co., 3.45%, 9/01/22 | | $ 62,000 | $ 62,092 |
| Western Midstream Operating L.P., (3M USD LIBOR + 1.85%), 2.62%, 1/13/23(c) | | 40,000 | 39,400 |
| | | | 3,232,256 |
| Foreign Issuer Bonds – 0.3% |
| Abu Dhabi Government International Bond, 2.50%, 10/11/22(b) | | 610,000 | 611,501 |
| Banco Votorantim S.A., 4.00%, 9/24/22(b) | | 200,000 | 200,002 |
| Barclays Bank PLC, 1.70%, 5/12/22 | | 200,000 | 200,038 |
| Credit Suisse Group Funding Guernsey Ltd., 3.80%, 9/15/22 | | 435,000 | 437,466 |
| Enbridge, Inc., 2.90%, 7/15/22 | | 36,000 | 36,053 |
| Intesa Sanpaolo S.p.A., 3.13%, 7/14/22(b) | | 840,000 | 840,926 |
| Mitsubishi UFJ Financial Group, Inc., 3.46%, 3/02/23 | | 52,000 | 52,346 |
| RELX Capital, Inc., 3.50%, 3/16/23 | | 56,000 | 56,316 |
| Royal Bank of Canada, 1.60%, 4/17/23 | | 190,000 | 188,260 |
| | | | 2,622,908 |
| Money Market Fund – 4.8% |
| Northern Institutional Funds - Liquid Assets Portfolio (Shares), 0.32%(t)(u) | | 3,241,194 | 3,241,194 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(t) | | 36,351,125 | 36,351,125 |
| | | | 39,592,319 |
| U.S. Government Obligations – 2.0% |
| U.S. Treasury Notes, | | | |
| 2.13%, 12/31/22 | | 392,000 | 392,934 |
| 1.75%, 7/15/22 | | 4,711,000 | 4,719,649 |
| 1.50%, 9/15/22 | | 75,000 | 75,053 |
| 1.38%, 10/15/22 | | 84,000 | 83,993 |
| 0.50%, 3/15/23 | | 4,711,000 | 4,650,824 |
| 0.25%, 4/15/23(h)(p) | | 4,711,000 | 4,628,190 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a)/Number
of Shares | Value |
| U.S. Government Obligations (Continued) |
| U.S. Treasury Notes, | | | |
| 0.13%, 3/31/23 | | $1,071,000 | $ 1,052,299 |
| 0.13%, 4/30/23 | | 1,071,000 | 1,049,664 |
| | | | 16,652,606 |
Total Short-Term Investments
(Cost $67,447,277) | 67,236,425 |
Number of
Contracts | Notional
Amount | |
| Purchased Options – 0.1% |
| Call Options - Exchange Traded – 0.0%(f) |
| 10-Year U.S. Treasury Note Future, Strike Price $119.00, Expires 5/20/22 | 6 | 714,938 | 6,281 |
| 1-Year Mid Curve Future, Strike Price $96.56, Expires 5/13/22 | 82 | 19,827,600 | 14,862 |
| 5-Year U.S. Treasury Note Future, Strike Price $112.75, Expires 5/20/22 | 12 | 1,352,063 | 7,219 |
| 5-Year U.S. Treasury Note Future, Strike Price $113.25, Expires 5/20/22 | 12 | 1,352,063 | 4,500 |
| U.S. Treasury Long Bond Future, Strike Price $140.00, Expires 5/20/22 | 2 | 281,375 | 4,781 |
| | | | 37,643 |
| Call Options - Over the Counter – 0.0%(f) |
| Colombian Pesos vs. U.S. Dollar, Strike Price COP 4,100.00, Expires 5/19/22, Counterparty: Morgan Stanley | 2 | 18,000 | 119 |
| Mexican Peso vs. U.S. Dollar, Strike Price MXN 20.30, Expires 5/27/22, Counterparty: Goldman Sachs | 2 | 210,000 | 4,038 |
| South African Rand vs. U.S. Dollar, Strike Price ZAR 15.00, Expires 5/27/22, Counterparty: Bank of America | 2 | 140,000 | 7,629 |
Number of
Contracts | Notional
Amount | Value |
| Call Options - Over the Counter (Continued) |
| U.S. Dollar vs. Australian Dollar, Strike Price USD 0.72, Expires 5/31/22, Counterparty: JPMorgan Chase | 2 | $ 208,000(v) | $ 994 |
| U.S. Dollar vs. Euro, Strike Price USD 1.19, Expires 8/05/22, Counterparty: Bank of America | 1 | 2,170,000 (w) | 533 |
| | | | 13,313 |
| Put Options - Exchange Traded – 0.0%(f) |
| 10-Year U.S. Treasury Note Future, Strike Price $119.00, Expires 5/20/22 | 127 | 15,132,844 | 113,110 |
| Put Options - Over the Counter – 0.0%(f) |
| Chilean Peso vs. U.S. Dollar, Strike Price CLP 815.00, Expires 5/06/22, Counterparty: Barclays | 2 | 294,000 | 72 |
| Chilean Peso vs. U.S. Dollar, Strike Price CLP 815.00, Expires 6/09/22, Counterparty: Barclays | 2 | 140,000 | 620 |
| Chilean Peso vs. U.S. Dollar, Strike Price CLP 845.00, Expires 5/31/22, Counterparty: Barclays | 2 | 146,000 | 1,774 |
| Japanese Yen vs. U.S. Dollar, Strike Price JPY 126.00, Expires 7/25/22, Counterparty: Citibank | 2 | 364,000 | 4,114 |
| Mexican Peso vs. U.S. Dollar, Strike Price MXN 20.65, Expires 7/12/22, Counterparty: Bank of America | 2 | 290,000 | 1,322 |
| U.S. Dollar vs. Euro, Strike Price USD 1.05, Expires 5/31/22, Counterparty: BNP Paribas | 2 | 210,000 (w) | 1,929 |
| U.S. Dollar vs. Euro, Strike Price USD 1.08, Expires 5/10/22, Counterparty: Goldman Sachs | 2 | 256,000 (w) | 6,513 |
| | | | 16,344 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Number of
Contracts | Notional
Amount | Value |
| Put Swaptions - Over the Counter – 0.1% |
| Pay 2.02% (Semi-Annually); Receive 1-Day USD SOFR (Quarterly); Interest Rate Swap Maturing 05/06/2026, Strike Price $2.02, Expires 5/04/22, Counterparty: Bank of America | 1 | $64,820,000 | $406,603 |
Total Purchased Options
(Premiums Received $184,800) | 587,013 |
Total Long Positions – 108.5%
(Cost $972,833,826) | 899,419,253 |
| | | Par | Value |
| Short Positions – (1.6)% |
| Mortgage-Backed Securities – (1.0)% |
| Uniform Mortgage-Backed Securities – (1.0)% |
Pool,
5/01/52 - 6/01/52(g) | | $(8,466,045) | $ (8,289,094) |
Government National Mortgage Association –
(0.0)%(f) |
Pool,
6/01/52(g) | | (301,000) | (309,137) |
Total Mortgage-Backed Securities
(Proceeds $8,646,724) | (8,598,231) |
|
| U.S. Government Obligations – (0.6)% |
| U.S. Treasury Bonds – (0.4)% |
| 2.25%, 8/15/49 | | (156,000) | (133,337) |
| 1.25%, 5/15/50 | | (1,446,000) | (963,906) |
| 1.63%, 11/15/50 | | (689,000) | (506,469) |
| 1.88%, 2/15/51 | | (1,926,000) | (1,509,427) |
| 2.38%, 5/15/51 | | (49,000) | (43,139) |
| | | | (3,156,278) |
| U.S. Treasury Notes – (0.2)% |
| 0.63%, 5/15/30 | | (1,603,000) | (1,341,385) |
| 0.63%, 8/15/30 | | (390,000) | (324,629) |
| 0.88%, 11/15/30 | | (298,000) | (252,509) |
| 1.38%, 11/15/31 | | (2,000) | (1,747) |
| | | | (1,920,270) |
Total U.S. Government Obligations
(Proceeds $6,331,712) | (5,076,548) |
Total Short Positions – (1.6)%
(Proceeds $14,978,436) | (13,674,779) |
Total Written Options – (0.1)%
(Premiums Received $631,382) | (493,296) |
| Liabilities less Other Assets – (6.8)%(x) | (56,037,520) |
| NET ASSETS – 100.0% | $829,213,658 |
| Percentages shown are based on Net Assets. |
| |
| (a) | Par value is in USD unless otherwise indicated. |
| (b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. |
| (c) | Variable rate security. Rate as of April 30, 2022 is disclosed. |
| (d) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate as of April 30, 2022 is disclosed. |
| (e) | Step coupon bond. Rate as of April 30, 2022 is disclosed. |
| (f) | Amount rounds to less than 0.05%. |
| (g) | When-Issued Security. Coupon rate was not yet in effect at April 30, 2022. |
| (h) | Security either partially or fully on loan. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| (i) | Variable rate security. Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate as of April 30, 2022 is disclosed. |
| (j) | Perpetual bond. Maturity date represents next call date. |
| (k) | Investment is valued using significant unobservable inputs (Level 3). |
| (l) | Distributions from this security are a made via payments in-kind (PIK) unless otherwise noted in the description. |
| (m) | Century bond maturing in 2120. |
| (n) | Restricted security that has been deemed illiquid. At April 30, 2022, the value of these restricted illiquid securities amounted to $297,700 or 0.04% of net assets. Additional information on these restricted illiquid securities is as follows: |
| | Security | Acquisition Date | Acquisition Cost |
| | Lukoil Capital DAC, 3.60%, 10/26/31 | 10/19/21 | $470,000 |
| | Lukoil Capital DAC, 2.80%, 4/26/27 | 10/19/21 | 370,000 |
| |
|
| (o) | Issuer has defaulted on terms of debt obligation. |
| (p) | All or a portion of the security was held as collateral for open futures, options, securities sold short and/or swap agreements. |
| (q) | Century bond maturing in 2112. |
| (r) | Position is unsettled. Contract rate was not determined at April 30, 2022 and does not take effect until settlement date. |
| (s) | The amount to be repurchased assumes the maturity will be the day after the period end. |
| (t) | 7-day current yield as of April 30, 2022 is disclosed. |
| (u) | Security purchased with the cash proceeds from securities loaned (See Note 7). |
| (v) | The notional amount is AUD. |
| (w) | The notional amount is EUR. |
| (x) | Includes appreciation/ (depreciation) on forward foreign currency exchange, futures and swap contracts. |
| Abbreviations: | |
| 10Y | 10 Year |
| 12MTA | 12 Month Treasury Average |
| 1M | 1 Month |
| 1Y | 1 Year |
| 3M | 3 Month |
| 5Y | 5 Year |
| BATS | Better Alternative Trading System |
| CDO | Collaterlized Debt Obligation |
| CLO | Collateralized Loan Obligation |
| CMT | Constant Maturity |
| CP | Commercial Paper |
| ETF | Exchange-Traded Fund |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| Freddie Mac | Federal Home Loan Mortgage Corporation |
| GO | Government Obligation |
| ICE | Intercontinental Exchange |
| IO | Interest Only |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| PJSC | Public Joint Stock Company |
| PLC | Public Limited Company |
| REMIC | Real Estate Mortgage Investment Conduit |
| S&P | Standards & Poor's |
| SOFR | United States Secured Overnight Financing Rate |
| STACR | Structured Agency Credit Risk |
| Strip | Separate Trading of Registered Interest and Principal |
| TRB | Tax Revenue Bonds |
| USD | United States Dollar |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| EUR | Euro |
| MXN | Mexican Peso |
| RUB | Russian Ruble |
| COP | Colombian Peso |
| ZAR | South African Rand |
| CLP | Chilean Peso |
| JPY | Japanese Yen |
Futures Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| Euro-Bobl | 14 | 6/08/2022 | EUR | 1,878,360 | $ (1,203) |
| 10-Year U.S. Treasury Note | 183 | 6/21/2022 | USD | 21,805,594 | (302,895) |
| U.S. Treasury Long Bond | 81 | 6/21/2022 | USD | 11,395,688 | (671,854) |
| Ultra 10-Year U.S. Treasury Note | 44 | 6/21/2022 | USD | 5,676,000 | (82,781) |
| Ultra U.S. Treasury Bond | 97 | 6/21/2022 | USD | 15,562,438 | (1,722,374) |
| 2-Year U.S. Treasury Note | 393 | 6/30/2022 | USD | 82,849,312 | (1,105,904) |
| 5-Year U.S. Treasury Note | 431 | 6/30/2022 | USD | 48,561,578 | (411,096) |
| 90-Day Eurodollar | 507 | 12/19/2022 | USD | 122,655,975 | (1,501,199) |
| 3-Month SONIA Index | 1 | 3/15/2023 | GBP | 307,101 | 5 |
| 90-Day Eurodollar | 83 | 6/19/2023 | USD | 20,000,925 | (591,569) |
| 90-Day Eurodollar | 21 | 9/18/2023 | USD | 5,065,725 | (99,689) |
| 90-Day Eurodollar | 203 | 12/18/2023 | USD | 49,029,575 | (689,250) |
| Total Long Contracts | | | | | $(7,179,809) |
| Short Contracts | | | | | |
| 30-Year Euro Buxl | (18) | 6/08/2022 | EUR | 3,246,756 | $ 184,796 |
| Euro-BTP Italian Government Bond | (15) | 6/08/2022 | EUR | 2,062,533 | 64,708 |
| Euro-Bund | (18) | 6/08/2022 | EUR | 2,916,536 | 27,639 |
| Euro-Schatz | (96) | 6/08/2022 | EUR | 11,154,957 | 4,581 |
| 10-Year Japanese Treasury Bond | (4) | 6/13/2022 | JPY | 4,611,674 | (11,550) |
| 10-Year U.S. Treasury Note | (24) | 6/21/2022 | USD | 2,859,750 | 2,591 |
| U.S. Treasury Long Bond | (242) | 6/21/2022 | USD | 34,046,375 | 1,193,270 |
| Ultra 10-Year U.S. Treasury Note | (5) | 6/21/2022 | USD | 645,000 | 3,431 |
| Ultra U.S. Treasury Bond | (34) | 6/21/2022 | USD | 5,454,875 | 46,272 |
| Total Short Contracts | | | | | $ 1,515,738 |
| | | | | | $(5,664,071) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 06/15/22 | U.S. Dollars | 2,856,834 | Euro | 2,596,000 | BNP Paribas | $ 112,022 |
| 05/24/22 | U.S. Dollars | 1,059,787 | Chinese Offshore Yuan | 6,751,248 | BNP Paribas | 45,487 |
| 06/15/22 | U.S. Dollars | 1,153,994 | Euro | 1,060,000 | JPMorgan Chase | 33,232 |
| 06/15/22 | U.S. Dollars | 1,829,312 | Japanese Yen | 232,938,187 | JPMorgan Chase | 31,290 |
| 06/15/22 | U.S. Dollars | 757,474 | Euro | 687,000 | Morgan Stanley | 31,093 |
| 05/24/22 | Russian Rubles | 4,240,000 | U.S. Dollars | 35,187 | JPMorgan Chase | 22,143 |
| 06/15/22 | U.S. Dollars | 485,813 | Euro | 440,000 | Barclays | 20,590 |
| 05/20/22 | U.S. Dollars | 252,000 | South African Rand | 3,675,919 | BNP Paribas | 19,789 |
| 06/15/22 | U.S. Dollars | 363,476 | Euro | 330,000 | Deutsche Bank | 14,559 |
| 05/25/22 | Russian Rubles | 2,916,396 | U.S. Dollars | 24,837 | JPMorgan Chase | 14,536 |
| 06/15/22 | U.S. Dollars | 309,922 | Euro | 280,000 | Bank of America | 13,872 |
| 06/15/22 | U.S. Dollars | 289,031 | British Pounds | 220,000 | JPMorgan Chase | 12,371 |
| 06/15/22 | U.S. Dollars | 326,509 | Euro | 300,000 | HSBC | 9,312 |
| 06/15/22 | U.S. Dollars | 463,232 | Euro | 430,000 | Goldman Sachs | 8,583 |
| 06/15/22 | Japanese Yen | 119,543,581 | U.S. Dollars | 914,656 | Deutsche Bank | 8,087 |
| 05/24/22 | Russian Rubles | 6,784,000 | U.S. Dollars | 84,029 | Goldman Sachs | 7,699 |
| 06/15/22 | Euro | 560,000 | British Pounds | 464,873 | Goldman Sachs | 7,503 |
| 05/03/22 | U.S. Dollars | 106,000 | Brazilian Reals | 500,638 | Goldman Sachs | 4,839 |
| 05/25/22 | Russian Rubles | 1,032,387 | U.S. Dollars | 9,116 | Citibank | 4,822 |
| 06/13/22 | U.S. Dollars | 103,292 | Chilean Pesos | 85,190,078 | Barclays | 4,305 |
| 06/15/22 | Euro | 840,000 | British Pounds | 703,191 | Deutsche Bank | 3,858 |
| 06/15/22 | Swiss Francs | 547,381 | Euro | 530,000 | BNP Paribas | 3,721 |
| 05/25/22 | Russian Rubles | 748,651 | U.S. Dollars | 6,837 | Morgan Stanley | 3,270 |
| 06/08/22 | Turkish Lira | 1,144,799 | U.S. Dollars | 71,713 | UBS | 3,100 |
| 06/02/22 | U.S. Dollars | 36,000 | Brazilian Reals | 168,480 | Citibank | 2,293 |
| 05/20/22 | U.S. Dollars | 55,000 | Colombian Pesos | 210,210,000 | Toronto-Dominion Bank | 2,081 |
| 05/20/22 | U.S. Dollars | 55,000 | Colombian Pesos | 210,210,000 | Citibank | 2,081 |
| 06/15/22 | Euro | 250,000 | British Pounds | 208,879 | Bank of America | 1,657 |
| 06/15/22 | British Pounds | 236,693 | Euro | 280,000 | Deutsche Bank | 1,601 |
| 05/20/22 | U.S. Dollars | 53,000 | Mexican Pesos | 1,062,443 | BNP Paribas | 1,142 |
| 05/20/22 | Euro | 96,000 | Hungarian Forint | 36,126,192 | Deutsche Bank | 882 |
| 06/15/22 | U.S. Dollars | 96,480 | Canadian Dollars | 123,000 | Morgan Stanley | 745 |
| 05/20/22 | U.S. Dollars | 52,000 | Canadian Dollars | 65,847 | Morgan Stanley | 745 |
| 05/02/22 | Euro | 130,000 | Swedish Krona | 1,339,548 | HSBC | 726 |
| 06/15/22 | U.S. Dollars | 7,110 | Japanese Yen | 837,000 | Bank of America | 649 |
| 05/20/22 | Colombian Pesos | 438,900,000 | U.S. Dollars | 110,000 | Citibank | 490 |
| 06/29/22 | U.S. Dollars | 112,000 | Turkish Lira | 1,733,224 | Goldman Sachs | 488 |
| 06/02/22 | Brazilian Reals | 182,225 | U.S. Dollars | 36,000 | Barclays | 457 |
| 06/02/22 | Euro | 50,030 | U.S. Dollars | 52,535 | BNP Paribas | 323 |
| 06/02/22 | Brazilian Reals | 476,229 | U.S. Dollars | 95,086 | Citibank | 191 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 05/20/22 | South African Rand | 1,712,016 | U.S. Dollars | 108,000 | Bank of America | $ 149 |
| 06/01/22 | U.S. Dollars | 72,000 | Mexican Pesos | 1,476,374 | HSBC | 110 |
| 06/15/22 | Euro | 370,000 | Swiss Francs | 379,508 | Barclays | 109 |
| 06/02/22 | Euro | 19,970 | U.S. Dollars | 20,991 | UBS | 107 |
| 06/08/22 | Turkish Lira | 36,397 | U.S. Dollars | 2,287 | Barclays | 92 |
| 06/02/22 | Brazilian Reals | 74,666 | U.S. Dollars | 14,914 | Goldman Sachs | 24 |
| Total Unrealized Appreciation | $ 457,225 |
| | | | | | | |
| 05/20/22 | Mexican Pesos | 165,055 | U.S. Dollars | 8,070 | Bank of America | $ (13) |
| 06/15/22 | Euro | 53,191 | Swiss Francs | 54,603 | Barclays | (31) |
| 06/02/22 | U.S. Dollars | 19,900 | Chilean Pesos | 17,127,930 | Barclays | (44) |
| 05/20/22 | Mexican Pesos | 919,197 | U.S. Dollars | 44,930 | Citibank | (64) |
| 05/20/22 | Chilean Pesos | 1,639,340 | U.S. Dollars | 2,000 | Citibank | (86) |
| 06/02/22 | U.S. Dollars | 54,100 | Chilean Pesos | 46,620,676 | Goldman Sachs | (187) |
| 06/15/22 | Euro | 190,000 | Swiss Francs | 195,189 | JPMorgan Chase | (260) |
| 06/15/22 | U.S. Dollars | 251,193 | British Pounds | 200,000 | State Street | (316) |
| 06/15/22 | Euro | 206,809 | Swiss Francs | 212,492 | HSBC | (319) |
| 06/15/22 | Euro | 270,000 | British Pounds | 227,276 | Bank of America | (333) |
| 06/15/22 | Euro | 140,000 | British Pounds | 117,988 | Goldman Sachs | (349) |
| 05/31/22 | South African Rand | 564,732 | U.S. Dollars | 36,000 | Citibank | (372) |
| 05/31/22 | U.S. Dollars | 36,000 | South African Rand | 577,378 | Bank of America | (426) |
| 06/01/22 | U.S. Dollars | 74,000 | Mexican Pesos | 1,530,535 | Goldman Sachs | (527) |
| 05/24/22 | U.S. Dollars | 55,871 | Mexican Pesos | 1,156,538 | BNP Paribas | (535) |
| 06/15/22 | U.S. Dollars | 238,373 | British Pounds | 190,000 | HSBC | (560) |
| 06/15/22 | Euro | 270,000 | Swiss Francs | 277,737 | Morgan Stanley | (743) |
| 06/15/22 | Euro | 130,000 | British Pounds | 109,958 | BNP Paribas | (825) |
| 05/20/22 | Canadian Dollars | 65,639 | U.S. Dollars | 52,000 | HSBC | (906) |
| 06/15/22 | U.S. Dollars | 237,942 | British Pounds | 190,000 | Morgan Stanley | (991) |
| 06/15/22 | British Pounds | 16,038 | U.S. Dollars | 21,174 | Barclays | (1,006) |
| 05/20/22 | U.S. Dollars | 110,000 | South African Rand | 1,757,382 | Bank of America | (1,015) |
| 06/15/22 | Euro | 280,000 | British Pounds | 236,228 | Deutsche Bank | (1,016) |
| 05/20/22 | Czech Republic Koruna | 4,024,102 | Euro | 164,000 | HSBC | (1,071) |
| 05/20/22 | U.S. Dollars | 110,000 | Japanese Yen | 14,413,888 | Goldman Sachs | (1,141) |
| 05/20/22 | Japanese Yen | 9,185,948 | U.S. Dollars | 72,000 | JPMorgan Chase | (1,170) |
| 05/20/22 | Australian Dollars | 75,000 | Canadian Dollars | 69,688 | Deutsche Bank | (1,235) |
| 05/12/22 | Euro | 68,000 | U.S. Dollars | 73,333 | Deutsche Bank | (1,559) |
| 05/12/22 | Euro | 64,000 | U.S. Dollars | 69,222 | Morgan Stanley | (1,670) |
| 05/20/22 | South African Rand | 1,956,852 | U.S. Dollars | 126,000 | Citibank | (2,384) |
| 06/15/22 | British Pounds | 527,490 | Euro | 630,000 | Bank of America | (2,773) |
| 06/15/22 | British Pounds | 232,891 | Euro | 280,000 | HSBC | (3,180) |
| 06/15/22 | British Pounds | 232,848 | Euro | 280,000 | JPMorgan Chase | (3,234) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 06/08/22 | U.S. Dollars | 74,000 | Turkish Lira | 1,184,000 | Citibank | $ (3,375) |
| 06/15/22 | British Pounds | 53,962 | U.S. Dollars | 71,264 | State Street | (3,404) |
| 05/20/22 | Australian Dollars | 98,000 | U.S. Dollars | 72,797 | Goldman Sachs | (3,529) |
| 05/20/22 | Polish Zloty | 472,301 | U.S. Dollars | 110,000 | Citibank | (3,730) |
| 06/15/22 | British Pounds | 602,370 | Euro | 720,000 | Deutsche Bank | (3,766) |
| 06/13/22 | Chilean Pesos | 85,190,078 | U.S. Dollars | 103,292 | BNP Paribas | (4,305) |
| 06/15/22 | Swiss Francs | 569,922 | Euro | 560,000 | Barclays | (4,770) |
| 06/01/22 | Mexican Pesos | 5,287,681 | U.S. Dollars | 263,202 | HSBC | (5,726) |
| 05/03/22 | Brazilian Reals | 492,158 | U.S. Dollars | 106,000 | Deutsche Bank | (6,552) |
| 05/24/22 | U.S. Dollars | 164,539 | Russian Rubles | 12,720,000 | JPMorgan Chase | (7,451) |
| 06/15/22 | British Pounds | 150,000 | U.S. Dollars | 197,635 | JPMorgan Chase | (9,004) |
| 06/15/22 | Euro | 220,000 | U.S. Dollars | 243,698 | Morgan Stanley | (11,087) |
| 06/15/22 | Euro | 340,000 | U.S. Dollars | 370,981 | HSBC | (11,491) |
| 05/25/22 | U.S. Dollars | 54,902 | Russian Rubles | 5,152,553 | Citibank | (14,661) |
| 06/15/22 | Euro | 390,000 | U.S. Dollars | 427,309 | Barclays | (14,953) |
| 06/15/22 | Euro | 280,000 | U.S. Dollars | 311,311 | Goldman Sachs | (15,260) |
| 06/15/22 | Euro | 500,000 | U.S. Dollars | 544,652 | Bank of America | (15,990) |
| 06/15/22 | Euro | 710,000 | U.S. Dollars | 771,455 | JPMorgan Chase | (20,756) |
| 06/15/22 | Euro | 740,000 | U.S. Dollars | 816,591 | Deutsche Bank | (34,172) |
| 05/24/22 | Chinese Offshore Yuan | 6,751,248 | U.S. Dollars | 1,057,957 | HSBC | (43,657) |
| Total Unrealized Depreciation | $(267,980) |
| Net Unrealized Appreciation | $ 189,245 |
Written Call Option Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 10-Year U.S. Treasury Note Future | 8 | USD | (953,250) | 121.50 | 5/20/2022 | $ (1,750) |
| 10-Year U.S. Treasury Note Future | 10 | USD | (1,191,562) | 119.50 | 5/20/2022 | (8,125) |
| 10-Year U.S. Treasury Note Future | 13 | USD | (1,549,031) | 126.00 | 5/20/2022 | (406) |
| 10-Year U.S. Treasury Note Future | 19 | USD | (2,263,969) | 120.50 | 5/20/2022 | (4,375) |
| 10-Year U.S. Treasury Note Future | 28 | USD | (3,336,375) | 121.00 | 5/20/2022 | (8,750) |
| 10-Year U.S. Treasury Note Future | 43 | USD | (5,123,719) | 127.00 | 5/20/2022 | (1,344) |
| 10-Year U.S. Treasury Note Future | 43 | USD | (5,123,719) | 124.50 | 5/20/2022 | (2,016) |
| 10-Year U.S. Treasury Note Future | 44 | USD | (5,242,875) | 130.00 | 5/20/2022 | (688) |
| 10-Year U.S. Treasury Note Future | 102 | USD | (12,153,937) | 123.00 | 5/20/2022 | (9,562) |
| 10-Year U.S. Treasury Note Future | 234 | USD | (27,882,563) | 124.00 | 5/20/2022 | (14,625) |
| 10-Year U.S. Treasury Note Future | 7 | USD | (831,141) | 122.00 | 6/24/2022 | (2,844) |
| 1-Year Mid Curve Future | 164 | USD | (39,655,200) | 96.75 | 5/13/2022 | (12,300) |
| 5-Year U.S. Treasury Note Future | 5 | USD | (563,359) | 115.00 | 5/20/2022 | (273) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Written Call Option Contracts outstanding at April 30, 2022:
Exchange Traded (continued) |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 5-Year U.S. Treasury Note Future | (6) | USD | (676,032) | 113.00 | 5/20/2022 | $ (2,859) |
| 5-Year U.S. Treasury Note Future | 24 | USD | (2,704,126) | 114.25 | 5/20/2022 | (3,000) |
| 5-Year U.S. Treasury Note Future | 24 | USD | (2,704,126) | 114.50 | 5/20/2022 | (2,250) |
| 5-Year U.S. Treasury Note Future | 24 | USD | (2,704,126) | 113.50 | 5/20/2022 | (6,937) |
| 5-Year U.S. Treasury Note Future | 96 | USD | (10,816,502) | 114.75 | 5/20/2022 | (6,750) |
| 5-Year U.S. Treasury Note Future | 170 | USD | (19,154,223) | 114.00 | 5/20/2022 | (27,891) |
| U.S. Treasury Long Bond Future | 1 | USD | (140,688) | 156.00 | 5/20/2022 | (63) |
| U.S. Treasury Long Bond Future | 3 | USD | (422,063) | 155.00 | 5/20/2022 | (188) |
| U.S. Treasury Long Bond Future | 13 | USD | (1,828,937) | 150.00 | 5/20/2022 | (2,031) |
| Total Written Call Options Contracts (Premiums Received $505,809) | $(119,027) |
Written Put Option Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 10-Year U.S. Treasury Note Future | 25 | USD | 15,132,844 | 119.00 | 5/20/2022 | $ (22,266) |
| 10-Year U.S. Treasury Note Future | 15 | USD | 1,787,344 | 120.00 | 5/20/2022 | (21,562) |
| 10-Year U.S. Treasury Note Future | 42 | USD | 5,004,562 | 118.00 | 5/20/2022 | (21,656) |
| 10-Year U.S. Treasury Note Future | 85 | USD | 10,128,281 | 117.00 | 5/20/2022 | (22,579) |
| 5-Year U.S. Treasury Note Future | (37) | USD | 4,168,860 | 113.00 | 5/20/2022 | (29,773) |
| Total Written Put Options Contracts (Premiums Received $82,199) | $(117,836) |
Written Call Option Contracts outstanding at April 30, 2022:
Over the Counter |
| | | | | | | | | |
| Description | Counterparty | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| Chilean Peso vs. U.S. Dollar | Barclays | 2 | USD | 74,000 | CLP | 855.00 | 5/6/2022 | $ (707) |
| Chilean Peso vs. U.S. Dollar | Barclays | 2 | USD | 140,000 | CLP | 850.00 | 6/9/2022 | (3,962) |
| Japanese Yen vs. U.S. Dollar | Citibank | 2 | USD | 110,000 | JPY | 130.00 | 5/23/2022 | (1,227) |
| Mexican Peso vs. U.S. Dollar | Goldman Sachs | 2 | USD | 314,000 | MXN | 20.70 | 5/27/2022 | (3,313) |
| South African Rand vs. U.S. Dollar | Bank of America | 2 | USD | 208,000 | ZAR | 15.70 | 5/27/2022 | (4,645) |
| U.S. Dollar vs. Australian Dollar | JPMorgan Chase | 2 | AUD | 258,000 | USD | 0.75 | 7/1/2022 | (520) |
| Total Written OTC Call Options Contracts (Premiums Received $9,352) | $(14,374) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Written Put Option Contracts outstanding at April 30, 2022:
Over the Counter |
| | | | | | | | | |
| Description | Counterparty | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| Chilean Peso vs. U.S. Dollar | Barclays | 2 | USD | 294,000 | CLP | 795.00 | 5/6/2022 | $ (5) |
| Chilean Peso vs. U.S. Dollar | Barclays | 2 | USD | 220,000 | CLP | 820.00 | 5/31/2022 | (873) |
| Japanese Yen vs. U.S. Dollar | Citibank | 2 | USD | 110,000 | JPY | 126.00 | 5/25/2022 | (365) |
| Japanese Yen vs. U.S. Dollar | Citibank | 2 | USD | 364,000 | JPY | 120.00 | 7/21/2022 | (1,190) |
| U.S. Dollar vs. Euro | BNP Paribas | 2 | EUR | 314,000 | USD | 1.02 | 5/31/2022 | (874) |
| Total Written OTC Put Options Contracts (Premiums Received $8,095) | $(3,307) |
Written Put Interest Rate Swaption Contracts outstanding at April 30, 2022:
Over the Counter |
| | | | | | | | | |
| Description | Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Counterparty | Expiration
Date | Exercise
Rate | Notional
Amount | Value |
| Interest Rate Swap Maturing 05/06/2026 | 1-Day USD SOFR (At Maturity) | 2.32% (At Maturity) | Bank of America | 5/4/2022 | 2.32% | | 64,820,000 | $ (238,752) |
| Total Written OTC Put Swaptions Contracts (Premiums Received $25,928) | $(238,752) |
Interest Rate Swap Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 3M USD LIBOR (Quarterly) | 0.19% (Semi-Annually) | 6/15/2022 | USD | 6,485,000 | $ (7,766) | $ (2) | $ (7,764) |
| 8.81% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 4/8/2024 | MXN | 11,365,000 | 3,201 | — | 3,201 |
| 6.15% (Annually) | 3M PLN WIBOR (Quarterly) | 4/11/2024 | PLN | 2,234,000 | 4,182 | — | 4,182 |
| 1.19% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 4/25/2024 | EUR | 2,280,000 | 3,843 | (39) | 3,882 |
| 6.76% (Quarterly) | 3M PLN WIBOR(Quarterly) | 4/30/2024 | PLN | 1,385,000 | — | — | — |
| 1.16% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 5/3/2024 | EUR | 2,270,000 | 4,934 | 652 | 4,282 |
| 3M USD LIBOR (Quarterly) | 0.82% (Semi-Annually) | 6/4/2024 | USD | 36,626,000 | (934,823) | — | (934,823) |
| 0.55% (Annually) | 1-Day EUR ESTR (Annually) | 3/21/2025 | EUR | 1,160,000 | 19,520 | (610) | 20,130 |
| 0.64% (Annually) | 1-Day EUR ESTR (Annually) | 3/23/2025 | EUR | 1,340,000 | 20,188 | — | 20,188 |
| 0.70% (Annually) | 1-Day EUR ESTR (Annually) | 3/24/2025 | EUR | 1,340,000 | 18,408 | — | 18,408 |
| 0.73% (Annually) | 1-Day EUR ESTR (Annually) | 3/27/2025 | EUR | 2,600,000 | 34,235 | — | 34,235 |
| 2-Day USD SOFR (Annually) | 2.47% (Annually) | 8/31/2026 | USD | 20,472,000 | (283,762) | (158,136) | (125,626) |
| 1.52% (Annually) | 2-Day USD SOFR (Annually) | 11/20/2026 | USD | 5,980,000 | 213,101 | (9,357) | 222,458 |
| 2-Day USD SOFR (Annually) | 1.55% (Annually) | 3/4/2027 | USD | 4,175,000 | (214,287) | (6,270) | (208,017) |
| 1-Day EUR ESTR (At Maturity) | 0.85% (At Maturity) | 3/20/2027 | EUR | 5,350,000 | (27,925) | 2,792 | (30,717) |
| 1-Day EUR ESTR (At Maturity) | 0.87% (At Maturity) | 3/25/2027 | EUR | 5,450,000 | (27,033) | — | (27,033) |
| 1-Day EUR ESTR (At Maturity) | 1.01% (At Maturity) | 3/30/2027 | EUR | 5,440,000 | (19,536) | — | (19,536) |
| 1.35% (Quarterly) | 3M USD LIBOR (Quarterly) | 2/15/2028 | USD | 5,548,000 | 479,851 | (24,559) | 504,410 |
| 1.13% (Annually) | 2-Day USD SOFR (Annually) | 8/15/2028 | USD | 17,907,000 | 1,573,126 | 48,103 | 1,525,023 |
| 1.22% (Annually) | 2-Day USD SOFR (Annually) | 8/15/2028 | USD | 4,412,000 | 363,267 | (1,697) | 364,964 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Interest Rate Swap Contracts outstanding at April 30, 2022:
Exchange Traded (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 1.20% (Annually) | 2-Day USD SOFR (Annually) | 11/1/2028 | USD | 2,576,000 | $ 217,391 | $ (139) | $ 217,530 |
| 6M EUR EURIBOR (Semi-Annually) | 1.57% (Annually) | 2/15/2031 | EUR | 1,018,750 | (9,942) | — | (9,942) |
| 6M EUR EURIBOR (Semi-Annually) | 1.54% (Annually) | 2/15/2031 | EUR | 1,018,317 | (12,637) | — | (12,637) |
| 6M EUR EURIBOR (Semi-Annually) | 1.56% (Annually) | 2/15/2031 | EUR | 1,018,317 | (10,734) | — | (10,734) |
| 6M EUR EURIBOR (Semi-Annually) | 1.55% (Annually) | 2/15/2031 | EUR | 810,383 | (9,148) | — | (9,148) |
| 6M EUR EURIBOR (Semi-Annually) | 1.52% (Annually) | 2/15/2031 | EUR | 700,249 | (9,649) | — | (9,649) |
| 6M EUR EURIBOR (Semi-Annually) | 1.59% (Annually) | 2/15/2031 | EUR | 508,866 | (3,937) | — | (3,937) |
| 6M EUR EURIBOR (Semi-Annually) | 1.65% (Annually) | 2/15/2031 | EUR | 401,247 | (1,180) | — | (1,180) |
| 6M EUR EURIBOR (Semi-Annually) | 1.65% (Annually) | 2/15/2031 | EUR | 198,618 | — | — | — |
| 6M EUR EURIBOR (Semi-Annually) | 1.64% (Annually) | 2/15/2031 | EUR | 198,617 | — | — | — |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 7.60% (Monthly) | 1/1/2032 | MXN | 4,119,000 | (17,774) | — | (17,774) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 7.57% (Monthly) | 1/12/2032 | MXN | 4,681,000 | (20,817) | — | (20,817) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 7.53% (Monthly) | 1/23/2032 | MXN | 2,753,000 | (12,610) | — | (12,610) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 8.29% (Monthly) | 3/17/2032 | MXN | 2,396,000 | (5,234) | — | (5,234) |
| 2.00% (Annually) | 2-Day USD SOFR (Annually) | 3/18/2032 | USD | 2,112,000 | 122,571 | 16,904 | 105,667 |
| 0.30% (At Maturity) | 1-Day JPY TONAR (At Maturity) | 4/7/2032 | JPY | 270,866,113 | 12,250 | — | 12,250 |
| 0.31% (Annually) | 1-Day JPY TONAR (Annually) | 4/7/2032 | JPY | 167,708,887 | 6,055 | — | 6,055 |
| 0.39% (Annually) | 1-Day JPY TONAR (Annually) | 5/2/2032 | JPY | 58,850,500 | (1,554) | — | (1,554) |
| 0.40% (Annually) | 1-Day JPY TONAR (Annually) | 5/2/2032 | JPY | 58,850,500 | (1,666) | — | (1,666) |
| 1.52% (Annually) | 2-Day USD SOFR (Annually) | 2/15/2047 | USD | 3,815,000 | 707,416 | 69,322 | 638,094 |
| 1.73% (Annually) | 2-Day USD SOFR (Annually) | 2/15/2047 | USD | 2,710,000 | 398,417 | 35,989 | 362,428 |
| 2-Day USD SOFR (Annually) | 1.63% (Annually) | 5/15/2047 | USD | 310,000 | (51,889) | (1,266) | (50,623) |
| 1.65% (Annually) | 2-Day USD SOFR (Annually) | 8/15/2047 | USD | 6,080,000 | 1,011,736 | 385,931 | 625,805 |
| 2.50% (Annually) | 2-Day USD SOFR (Annually) | 4/21/2052 | USD | 2,600,000 | (23,818) | 5,925 | (29,743) |
| 0.87% (Annually) | 1-Day JPY TONAR (Annually) | 4/22/2052 | JPY | 43,521,324 | (6,330) | — | (6,330) |
| 0.88% (Annually) | 1-Day JPY TONAR (Annually) | 4/22/2052 | JPY | 21,762,838 | (3,578) | — | (3,578) |
| 0.87% (Annually) | 1-Day JPY TONAR (Annually) | 4/25/2052 | JPY | 21,762,838 | (3,288) | — | (3,288) |
| 0.84% (Annually) | 1-Day JPY TONAR (Annually) | 5/2/2052 | JPY | 44,138,000 | (3,948) | — | (3,948) |
| Total | | | | | $3,488,827 | $ 363,543 | $3,125,284 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Interest Rate Swap Contracts outstanding at April 30, 2022:
Over the Counter |
| | | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Counterparty | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 1.42% (Semi-Annually) | 1-Day CLP CLICP (Semi-Annually) | Bank of America | 4/3/2023 | CLP | 357,254,000 | $ 29,057 | $— | $ 29,057 |
| 1-Day CLP CLICP (Semi-Annually) | 1.65% (Semi-Annually) | Bank of America | 5/30/2023 | CLP | 357,254,000 | (36,660) | — | (36,660) |
| 1-Day BRL BZDIO (At Maturity) | 12.03% (At Maturity) | BNP Paribas | 1/2/2025 | BRL | 721,000 | 183 | — | 183 |
| Total | | | | | | $ (7,420) | $— | $ (7,420) |
Credit Default Swap Contracts outstanding - Sell Protection as of April 30, 2022:
Exchange Traded |
| | | | | | | | | |
| Reference Obligation | Implied
Credit
Spread | Fixed
Deal
Receive Rate | Maturity
Date | | Notional
Amount(1) | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Markit CDX North America Investment Grade Index Series 38 (Pay Quarterly) | 0.08% | 1.00% | 6/20/2027 | USD | 139,895,000 | $1,248,407 | $1,870,330 | $ (621,923) |
| Markit iTraxx Europe Main Index Series 37 (Pay Quarterly) | 0.09% | 1.00% | 6/20/2027 | EUR | 1,120,000 | 7,001 | 7,272 | (271) |
| Markit iTraxx Europe Main Index Series 37 (Pay Quarterly) | 0.43% | 1.00% | 6/20/2027 | EUR | 550,000 | 19,541 | 21,080 | (1,539) |
| Total | | | | | | $1,274,949 | $1,898,682 | $(623,733) |
| (1) | The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
Credit Default Swap Contracts outstanding - Buy Protection at April 30, 2022:
Over the Counter |
| | | | | | | | | |
| Reference Obligation | Fixed
Deal
Pay Rate | Maturity
Date | Counterparty | | Notional
Amount | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Federal Republic of Brazil, 4.25%, Due: 01/07/2025 (Pay Quarterly) | 1.00% | 12/20/2024 | Barclays | USD | 336,000 | $ 2,631 | $ 4,431 | $(1,800) |
| Abbott Laboratories 3.40% 11/30/2023 (Pay Quarterly) | 1.00% | 6/20/2027 | JPMorgan Chase | USD | 129,278 | (3,639) | (3,094) | (545) |
| Federal Republic of Brazil, 4.25%, Due: 01/07/2025 (Pay Quarterly) | 1.00% | 6/20/2027 | Barclays | USD | 686,000 | 38,048 | 41,136 | (3,088) |
| Republic of Chile, 3.24%, Due: 02/06/2028 (Pay Quarterly) | 1.00% | 6/20/2027 | Goldman Sachs | USD | 79,000 | 72 | (452) | 524 |
| Republic of Colombia, 10.38%, Due: 01/28/2033 (Pay Quarterly) | 1.00% | 6/20/2027 | Goldman Sachs | USD | 453,000 | 27,631 | 24,788 | 2,843 |
| Republic of Colombia, 10.38%, Due: 01/28/2033 (Pay Quarterly) | 1.00% | 6/20/2027 | Morgan Stanley | USD | 264,000 | 16,111 | 11,537 | 4,574 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Credit Default Swap Contracts outstanding - Buy Protection at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | | |
| Reference Obligation | Fixed
Deal
Pay Rate | Maturity
Date | Counterparty | | Notional
Amount | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Republic of Indonesia, 4.13%, Due: 01/15/2025 (Pay Quarterly) | 1.00% | 6/20/2027 | Goldman Sachs | USD | 470,000 | $ 3,207 | $ 5,663 | $(2,456) |
| Republic of Philippines, 10.63%, Due: 03/16/2025 (Pay Quarterly) | 1.00% | 6/20/2027 | Goldman Sachs | USD | 198,269 | 684 | 1,050 | (366) |
| Republic of South Africa, 5.88%, Due: 09/16/2025 (Pay Quarterly) | 1.00% | 6/20/2027 | Morgan Stanley | USD | 456,293 | 30,519 | 27,832 | 2,687 |
| United Mexican States, 4.15%, Due: 03/28/2027 (Pay Quarterly) | 1.00% | 6/20/2027 | Morgan Stanley | USD | 381,000 | 6,595 | 2,376 | 4,219 |
| Total | | | | | | $121,859 | $115,267 | $ 6,592 |
Inflation Swap Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 3.46% (At Maturity) | 1-Day U.S. Consumer Price Index (At Maturity) | 7/1/2022 | USD | 15,750,000 | $ 634,618 | $ 614 | $ 634,004 |
| 3.97% (At Maturity) | 1-Day U.S. Consumer Price Index (At Maturity) | 11/18/2023 | USD | 5,260,000 | 178,272 | (15,269) | 193,541 |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.62% (At Maturity) | 7/1/2026 | USD | 20,100,000 | (1,866,321) | (129,146) | (1,737,175) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 3.37% (At Maturity) | 11/18/2026 | USD | 5,260,000 | (199,104) | 51,175 | (250,279) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.34% (At Maturity) | 3/4/2031 | USD | 526,000 | (72,405) | (41,475) | (30,930) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.47% (At Maturity) | 4/26/2031 | USD | 2,285,370 | (278,850) | (142,227) | (136,623) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.64% (At Maturity) | 5/21/2031 | USD | 1,447,000 | (149,935) | (61,732) | (88,203) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.59% (At Maturity) | 6/4/2031 | USD | 320,000 | (34,356) | (14,983) | (19,373) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 3.06% (At Maturity) | 4/4/2032 | USD | 634,000 | (9,058) | — | (9,058) |
| Total | | | | | $(1,797,139) | $(353,043) | $(1,444,096) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Total Return Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Asset-Backed Securities | $ — | $ 33,192,378 | $ — | $ 33,192,378 |
| Corporate Bonds | — | 186,010,698 | 132,249 | 186,142,947 |
| Foreign Issuer Bonds | — | 67,051,673 | — | 67,051,673 |
| Mortgage-Backed Securities | — | 240,329,960 | — | 240,329,960 |
| Municipal Bonds | — | 2,381,162 | — | 2,381,162 |
| Term Loans | — | 1,979,262 | — | 1,979,262 |
| U.S. Government Obligations | — | 153,808,546 | — | 153,808,546 |
| Investment Companies | 146,709,887 | — | — | 146,709,887 |
| Short-Term Investments | 39,592,319 | 27,644,106 | — | 67,236,425 |
| Purchased Options | 150,753 | 436,260 | — | 587,013 |
| Total Assets – Investments at value | $186,452,959 | $712,834,045 | $132,249 | $899,419,253 |
| Liabilities: | | | | |
| Mortgage-Backed Securities | $ — | $ (8,598,231) | $ — | $ (8,598,231) |
| U.S. Government Obligations | — | (5,076,548) | — | (5,076,548) |
| Total Liabilities – Investments at value | $ — | $ (13,674,779) | $ — | $ (13,674,779) |
| Net Investments | $186,452,959 | $699,159,266 | $132,249 | $885,744,474 |
| Morningstar Total Return Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $ 1,527,293 | $ — | $— | $ 1,527,293 |
| Forward Foreign Currency Exchange Contracts | — | 457,225 | — | 457,225 |
| Swap Agreements | — | 7,456,269 | — | 7,456,269 |
| Total Assets - Derivative Financial Instruments | $ 1,527,293 | $ 7,913,494 | $— | $ 9,440,787 |
| Liabilities: | | | | |
| Futures Contracts | $(7,191,364) | $ — | $— | $ (7,191,364) |
| Forward Foreign Currency Exchange Contracts | — | (267,980) | — | (267,980) |
| Written Options | (236,863) | (256,433) | — | (493,296) |
| Swap Agreements | — | (4,375,193) | — | (4,375,193) |
| Total Liabilities - Derivative Financial Instruments | $(7,428,227) | $(4,899,606) | $— | $(12,327,833) |
| Net Derivative Financial Instruments | $(5,900,934) | $ 3,013,888 | $— | $ (2,887,046) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Municipal Bond Fund
| | | Par | Value |
| Municipal Bonds – 86.2% |
| Alabama – 1.9% |
| Alabama Federal Aid Highway Finance Authority Special Obligation GARVEE Bonds, Series A, Prerefunded, 5.00%, 9/01/27(a) | | $ 545,000 | $ 610,444 |
| Black Belt Energy Gas District Gas Prepay Revenue Bonds, Series A-1, Project No. 4, 4.00%, 6/01/24 | | 500,000 | 507,243 |
| Black Belt Energy Gas District Gas Prepay Revenue Bonds, Series A-1, Project No. 5, 4.00%, 10/01/26(b)(c)(d) | | 525,000 | 533,538 |
| Black Belt Energy Gas District Gas Supply Revenue Refunding Bonds, 4.00%, 12/01/31(b)(c)(d) | | 500,000 | 513,909 |
| Black Belt Energy Gas District Project Variable Revenue Bonds, Series B-2, 1.09%, 10/01/27(b)(d) | | 250,000 | 250,003 |
| Black Belt Energy Gas District Revenue Bonds, Project No. 7, 4.00%, 12/01/26(b)(c)(d) | | 1,110,000 | 1,128,085 |
| Jefferson County Sewer Warrants Senior Lien Revenue Bonds, Series A (AGM Insured), 5.50%, 10/01/53 | | 300,000 | 316,934 |
| Lower Alabama Gas District Gas Project Revenue Bonds, 4.00%, 12/01/25(b)(c)(d) | | 500,000 | 509,580 |
| Mobile Industrial Development Board PCR Bonds, Alabama Power Company Barry Plant Project, 1.00%, 6/26/25(b)(c)(d) | | 1,000,000 | 941,637 |
| Southeast Alabama State Gas Supply District Revenue Bonds, Series A, Project No. 2, 4.00%, 6/01/24(b)(c)(d) | | 600,000 | 608,628 |
| Tuscaloosa County IDA Gulf Opportunity Zone Revenue Refunding Bonds, Series A, Hunt Refining Project, 5.25%, 5/01/44(e) | | 410,000 | 403,693 |
| | | Par | Value |
| Alabama (Continued) |
| University of South Alabama University Revenue Bonds (BAM Insured), 5.00%, 4/01/27 | | $ 375,000 | $ 414,393 |
| University of West Alabama University Revenue Refunding Bonds (AGM Insured), 5.00%, 1/01/27 | | 505,000 | 545,927 |
| | | | 7,284,014 |
| Arizona – 1.1% |
| Arizona State Health Facilities Authority Variable Revenue Bonds, Series B, (SIFMA Municipal Swap Index Yield + 0.25%), 0.69%, 11/04/26(b)(d) | | 1,000,000 | 1,000,012 |
| Arizona State Industrial Development Authority Education Revenue Bonds, Series B, Jerome Facilities Project, Social Bonds, | | | |
| 4.00%, 7/01/51 | | 175,000 | 150,612 |
| 4.00%, 7/01/61 | | 250,000 | 207,211 |
|
| Chandler IDA Industrial Development Variable Revenue Bonds (AMT), Intel Corp., Project, 2.70%, 8/14/23(b)(c)(d) | | 500,000 | 499,954 |
| Maricopa County IDA Revenue Refunding Bonds, Banner Health Obligation Group, 5.00%, 1/01/27 | | 475,000 | 519,101 |
| Phoenix Civic Improvement Corp., Airport Senior Lien Revenue Refunding Bonds (AMT), | | | |
| 5.00%, 7/01/28 | | 490,000 | 501,545 |
| 5.00%, 7/01/30 | | 250,000 | 255,890 |
|
| Pima County IDA Education Revenue Facility Revenue Bonds, Paideia Academies Project, 6.13%, 7/01/45(e) | | 240,000 | 244,485 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Arizona (Continued) |
|
| Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Salt River Project, 5.00%, 1/01/32 | | $ 400,000 | $ 459,549 |
| Salt River Project Agricultural Improvement & Power District Electric System Revenue Refunding Bonds, Series A, 5.00%, 12/01/45 | | 500,000 | 528,841 |
| | | | 4,367,200 |
| Arkansas – 1.0% |
| Arkansas State Development Finance Authority Multi Family Housing Variable Revenue Bonds, The Cottages Apartments (Housing & Urban Development Sector 8 Program), 1.25%, 12/01/23(b)(c)(d) | | 3,000,000 | 2,937,879 |
| Bentonville Sales & Use Tax Revenue Refunding Bonds, Series B, 1.05%, 11/01/46 | | 750,000 | 719,737 |
| | | | 3,657,616 |
| California – 7.0% |
| Anaheim Housing & Public Improvement Authority Revenue Bonds, Series A, 5.00%, 10/01/50 | | 900,000 | 948,167 |
| Anaheim Public Financing Authority Lease Revenue Refunding Bonds, Series A, Prerefunded, 5.00%, 5/01/24(a) | | 250,000 | 263,105 |
| Bay Area Toll Authority Toll Bridge Variable Revenue Bonds, San Francisco Bay Area, (SIFMA Municipal Swap Index Yield + 0.90%), 1.34%, 5/01/23(b)(d) | | 700,000 | 699,488 |
| Bay Area Toll Bridge Authority Variable Revenue Refunding Bonds, San Francisco Bay, | | | |
| (SIFMA Municipal Swap Index Yield + 0.28%), 0.72%, 4/01/24(b)(d) | | 250,000 | 247,807 |
| (SIFMA Municipal Swap Index Yield + 0.45%), 0.89%, 4/01/26(b)(d) | | 2,000,000 | 1,975,708 |
| | | Par | Value |
| California (Continued) |
|
| California HFA Municipal Certificates Revenue Bonds, Series 2, Class A, 4.00%, 3/20/33 | | $ 240,891 | $ 247,439 |
| California PFA Revenue Refunding Bonds, Henry Mayo Newhall Hospital, 5.00%, 10/15/47 | | 400,000 | 427,227 |
| California State GO Unlimited Refunding Bonds, | | | |
| 4.00%, 10/01/37 | | 300,000 | 306,545 |
| 4.00%, 11/01/37 | | 1,400,000 | 1,434,397 |
| 5.00%, 4/01/42 | | 880,000 | 1,005,410 |
|
| California State Health Facilities Financing Authority Revenue Bonds, City of Hope Obligated Group, 5.00%, 11/15/49 | | 500,000 | 535,064 |
| California State Health Facilities Financing Authority Revenue Bonds, Series A, Sutter Health, Prerefunded, 5.00%, 11/15/25(a) | | 500,000 | 543,078 |
| California State Health Facilities Financing Authority Revenue Refunding Bonds, Cedars Sinai Health System, 5.00%, 8/15/51 | | 550,000 | 605,130 |
| California State Health Facilities Financing Authority Revenue Refunding Bonds, Marshall Medical Center (California Mortgage Insured), 4.00%, 11/01/40 | | 750,000 | 742,918 |
| California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, Los Angeles County Museum of Natural History Foundation, 4.00%, 7/01/50 | | 1,510,000 | 1,480,948 |
| California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, Series B, 5.00%, 11/01/29 | | 1,000,000 | 1,136,464 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| California (Continued) |
|
| California State Municipal Finance Authority Revenue Bonds, Charter School John Adams Academies-Lincoln Project, 5.00%, 10/01/57(e) | | $ 330,000 | $ 311,226 |
| California State Municipal Finance Authority Revenue Refunding Bonds, Series A, Eisenhower Medical Center, 5.00%, 7/01/25 | | 650,000 | 692,221 |
| California State Municipal Finance Authority Senior Living Revenue Bonds, Mt. San Antonio Garden, 2.12%, 11/15/26 | | 250,000 | 234,301 |
| California State Municipal Finance Authority Student Housing Revenue Bonds, CHF-Davis I, LLC-West Village, 5.00%, 5/15/36 | | 1,130,000 | 1,201,735 |
| California State Municipal Finance Authority Student Housing Revenue Bonds, Series A-P3, Claremont Colleges Project, 5.00%, 7/01/30(e) | | 320,000 | 332,955 |
| California State Municipal Finance Authority Student Housing Revenue Bonds, UCR North District Phase 1 (BAM Insured), 5.00%, 5/15/28 | | 500,000 | 546,462 |
| California State Public Works Board Lease Revenue Bonds, Series B, 4.00%, 5/01/46 | | 200,000 | 199,653 |
| California State Various Purpose Bid Group GO Unlimited Refunding Bonds, 5.00%, 8/01/30 | | 600,000 | 673,357 |
| California Statewide Communities Development Authority Revenue Bonds, Lancer Educational Standard Housing Project, 5.00%, 6/01/34(e) | | 375,000 | 391,325 |
| California Statewide Communities Development Authority Revenue Bonds, Loma Linda University Medical, 5.50%, 12/01/58(e) | | 500,000 | 529,304 |
| | | Par | Value |
| California (Continued) |
|
| California Statewide Communities Development Authority Revenue Bonds, Series A, Loma Linda University Medical Center, 5.25%, 12/01/56(e) | | $250,000 | $259,071 |
| California Statewide Communities Development Authority Special Assessment Bonds, Statewide Community Infrastructure Program, 5.00%, 9/02/34 | | 100,000 | 106,140 |
| California Tobacco Securitization Agency Tobacco Settlement Senior Revenue Refunding Bonds, Series A, 4.00%, 6/01/40 | | 300,000 | 300,672 |
| Cathedral City Redevelopment Agency Successor Agency Tax Allocation Revenue Refunding Bonds, Merged Redevelopment Project Area (BAM Insured), 4.00%, 8/01/26 | | 250,000 | 260,344 |
| CSCDA Community Improvement Authority Essential Housing Mezzanine Lien Revenue Bonds, City of Orange, 4.00%, 3/01/57(e) | | 200,000 | 149,717 |
| Foothill Eastern Transportation Corridor Agency Toll Road Junior Lien Revenue Bonds, Series C, 5.00%, 1/15/26 | | 200,000 | 210,824 |
| Foothill Eastern Transportation Corridor Agency Toll Road Junior Lien Revenue Refunding Bonds, Series C, 4.00%, 1/15/43 | | 250,000 | 241,926 |
| Fresno Airport Revenue Refunding Bonds, Series B (AMT) (BAM Insured), 5.00%, 7/01/28 | | 390,000 | 399,640 |
| Los Angeles Department of Airports Airport Subordinate Revenue Bonds (AMT), Los Angeles International Airport, 5.00%, 5/15/34 | | 510,000 | 536,619 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| California (Continued) |
|
| Los Angeles Department of Airports Airport Subordinate Revenue Bonds, Series C (AMT), Los Angeles International Airport, 5.00%, 5/15/29 | | $1,000,000 | $1,083,664 |
| Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), 5.00%, 8/01/35 | | 1,250,000 | 1,297,456 |
| Mesa Water District COPS, 4.00%, 3/15/39 | | 300,000 | 309,183 |
| Newman-Crows Landing Unified School District GO Unlimited CABS, 0.00%, 8/01/25(f) | | 250,000 | 222,784 |
| Port of Oakland Intermediate Lien Revenue Refunding Bonds (AMT), 5.00%, 11/01/29 | | 250,000 | 276,312 |
| Rocklin Community Facilities District No. 10 Special Tax Bonds, 5.00%, 9/01/34 | | 150,000 | 156,315 |
| San Diego County Regional Airport Authority Subordinate Revenue Refunding Bonds, Series A, 4.00%, 7/01/37 | | 300,000 | 302,391 |
| San Diego County Regional Airport Authority Subordinate Revenue Refunding Bonds, Series B (AMT), 5.00%, 7/01/39 | | 525,000 | 564,144 |
| San Francisco City & County Airports Commission International Airport Revenue Bonds, Series A (AMT), 5.00%, 5/01/44 | | 250,000 | 266,016 |
| San Francisco City & County Airports Community International Revenue Refunding Bonds, Second Series A (AMT), 5.00%, 5/01/28 | | 500,000 | 500,000 |
| Sunnyvale Financing Authority Lease Revenue Bonds, Green Bonds, Civic Center Project, 4.00%, 4/01/34 | | 865,000 | 905,900 |
| | | Par | Value |
| California (Continued) |
|
| Susanville Natural Gas Revenue Refunding Bonds, Natural Gas Enterprise (AGM Insured), 3.00%, 6/01/26 | | $ 595,000 | $ 603,094 |
| Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Refunding Bonds, San Diego Asset Securities, 5.00%, 6/01/35 | | 100,000 | 107,599 |
| | | | 26,771,245 |
| Colorado – 2.4% |
| Aurora Crossroads Metropolitan District No. 2 Senior Lien GO Limited Bonds, Series A, 5.00%, 12/01/40 | | 500,000 | 497,191 |
| Colorado Educational & Cultural Authority Revenue Refunding Bonds, Prospect Ridge Academy Project (Moral Obligation Insured), | | | |
| 5.00%, 3/15/25 | | 485,000 | 513,495 |
| 5.00%, 3/15/26 | | 510,000 | 548,008 |
| 5.00%, 3/15/29 | | 590,000 | 656,031 |
| 5.00%, 3/15/30 | | 310,000 | 347,187 |
| 5.00%, 3/15/35 | | 590,000 | 652,763 |
|
| Colorado High Performance Transportation Enterprise Revenue Bonds, C-470 Express Lane, 5.00%, 12/31/56 | | 1,000,000 | 1,033,206 |
| Colorado State Bridge Enterprise Revenue Bonds (AMT), Central 70 Project, 4.00%, 12/31/24 | | 630,000 | 647,203 |
| Colorado State COPS, Series A, | | | |
| 4.00%, 12/15/35 | | 1,250,000 | 1,301,183 |
| 4.00%, 12/15/36 | | 200,000 | 208,701 |
|
| Denver City & County Airport System Subordinate Revenue Refunding Bonds, Series A (AMT), 5.25%, 12/01/43 | | 500,000 | 535,655 |
| Denver Convention Center Hotel Authority Senior Revenue Refunding Bonds, 5.00%, 12/01/40 | | 250,000 | 259,157 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Colorado (Continued) |
| E-470 Public Highway Authority Senior Revenue Refunding Bonds, Series A, | | | |
| 5.00%, 9/01/23 | | $150,000 | $ 155,222 |
| 5.00%, 9/01/40 | | 810,000 | 844,265 |
|
| Park Creek Metropolitan District Revenue Refunding Bonds, Series A (NATL, IBC Insured), 5.00%, 12/01/45 | | 500,000 | 525,631 |
| Sand Creek Metropolitan District GO Limited Refunding Bonds, Series A (AGM Insured), 4.00%, 12/01/23 | | 180,000 | 184,804 |
| University of Colorado Enterprise Variable Revenue Bonds, Series C, Green Bond, 2.00%, 10/15/24(b)(c)(d) | | 250,000 | 244,428 |
| | | | 9,154,130 |
| Connecticut – 1.6% |
| Bridgeport GO Unlimited Bonds, Series A, | | | |
| 5.00%, 8/01/23 | | 200,000 | 206,846 |
| 5.00%, 8/01/25 | | 260,000 | 278,954 |
| 5.00%, 8/01/27 | | 275,000 | 302,529 |
|
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Forward Delivery, Stamford Hospital Issue, 4.00%, 7/01/42 | | 250,000 | 237,936 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series B-1, 5.00%, 1/01/25(b)(c)(d) | | 500,000 | 529,919 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series F, Masonicare Issue, 5.00%, 7/01/27 | | 220,000 | 234,332 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series K, Sacred Heart University, 5.00%, 7/01/27 | | 400,000 | 438,787 |
| | | Par | Value |
| Connecticut (Continued) |
|
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series R, Trinity College, 5.00%, 6/01/32 | | $ 265,000 | $ 295,181 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, University of Hartford, | | | |
| 5.00%, 7/01/24 | | 240,000 | 247,681 |
| 5.00%, 7/01/25 | | 260,000 | 271,358 |
| 5.00%, 7/01/31 | | 500,000 | 529,545 |
| 4.00%, 7/01/39 | | 120,000 | 113,560 |
| 4.00%, 7/01/49 | | 100,000 | 89,215 |
|
| Connecticut State HFA Mortgage Finance Program Variable Revenue Bonds, Series A-4, Social Bonds, 0.74%, 11/15/24(b)(d) | | 1,000,000 | 1,000,004 |
| Hamden GO Unlimited Refunding Bonds, Series A (BAM Insured), 5.00%, 8/01/24 | | 500,000 | 527,837 |
| Hamden Revenue Refunding Bonds, Whitney Center Project, 5.00%, 1/01/40 | | 125,000 | 120,864 |
| Hartford County Metropolitan District GO Unlimited Bonds, 5.00%, 7/15/35 | | 750,000 | 836,961 |
| | | | 6,261,509 |
| Delaware – 0.2% |
| Delaware River & Bay Authority Revenue Refunding Bonds, 1/01/34(g) | | 530,000 | 598,073 |
| Kent County Student Housing & Dining Facilities Revenue Bonds, CHF-Dover LLC-Delaware State University Project, | | | |
| 5.00%, 7/01/32 | | 250,000 | 255,044 |
| 5.00%, 7/01/48 | | 100,000 | 99,993 |
| | | | 953,110 |
| District of Columbia – 1.6% |
| District of Columbia Revenue Bonds, Ingleside Rock Creek Project, 5.00%, 7/01/52 | | 400,000 | 380,274 |
| District of Columbia Revenue Bonds, KIPP DC Project, 4.00%, 7/01/39 | | 100,000 | 93,832 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| District of Columbia (Continued) |
| District of Columbia Revenue Refunding Bonds, National Public Radio, Prerefunded, 4.00%, 4/01/26(a) | | $ 250,000 | $ 264,006 |
| District of Columbia University Revenue Refunding Bonds, Georgetown University, 5.00%, 4/01/29 | | 350,000 | 377,835 |
| District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series B, 5.00%, 10/01/49 | | 500,000 | 550,729 |
| District of Columbia Water & Sewer Authority Public Utility Subordinate Lien Revenue Bonds, Series A, Prerefunded, 5.00%, 10/01/23(a) | | 650,000 | 675,732 |
| Metropolitan Washington Airports Authority Airport System Revenue Refunding Bonds, Series A (AMT), 5.00%, 10/01/46 | | 500,000 | 540,451 |
| Metropolitan Washington Airports Authority Dulles Toll Road Subordinate Lien Revenue Refunding Bonds, Dulles Metrorail & Capital Improvement Projects, Series B, 4.00%, 10/01/35 | | 350,000 | 356,673 |
| Metropolitan Washington Airports Authority System Revenue Refunding Bonds, Series A (AMT), | | | |
| 5.00%, 10/01/25 | | 1,000,000 | 1,062,813 |
| 5.00%, 10/01/43 | | 500,000 | 533,093 |
|
| Washington Metropolitan Area Transit Authority Dedicated Revenue Bonds, Series A, 4.00%, 7/15/40 | | 1,000,000 | 1,026,485 |
| Washington Metropolitan Area Transit Authority Gross Revenue Bonds, 5.00%, 7/01/43 | | 300,000 | 325,648 |
| | | | 6,187,571 |
| Florida – 3.5% |
| Alachua County Health Facilities Authority Revenue Bonds, Shands Teaching Hospital & Clinics, 5.00%, 12/01/44 | | 500,000 | 517,713 |
| | | Par | Value |
| Florida (Continued) |
| Broward County Airport System Revenue Bonds, Series A (AMT), 5.00%, 10/01/36 | | $ 750,000 | $ 807,132 |
| Capital Trust Agency Sustainability Revenue Bonds, The Marie, 4.00%, 6/15/23(e) | | 550,000 | 548,673 |
| Central Florida Expressway Authority Senior Lien Revenue Refunding Bonds, 5.00%, 7/01/42 | | 350,000 | 382,711 |
| Collier County Water-Sewer District Revenue Bonds, 4.00%, 7/01/40 | | 500,000 | 519,704 |
| Florida State Board of Education Public Education GO Unlimited Refunding Bonds, Capital Outlay, Series E, 5.00%, 6/01/31 | | 1,000,000 | 1,067,092 |
| Florida State Municipal Power Agency Revenue Refunding Bonds, Series A, 5.00%, 10/01/31 | | 300,000 | 326,243 |
| Greater Orlando Aviation Authority Airport Facilities Revenue Bonds, Series A (AMT), 5.00%, 10/01/40 | | 500,000 | 519,933 |
| Greater Orlando Aviation Authority Airport Facilities Revenue Bonds, Series A (AMT), Unrefunded Balance, 5.00%, 10/01/44 | | 1,000,000 | 1,073,304 |
| Hillsborough County Aviation Authority Subordinate Revenue Bonds, Series B, Tampa International Airport, Prerefunded, 5.00%, 10/01/24(a) | | 470,000 | 498,379 |
| JEA Electric System Revenue Refunding Bonds, Series Three A, 4.00%, 10/01/37 | | 1,395,000 | 1,433,972 |
| Lee Memorial Health System Hospital Revenue Refunding Bonds, Series A-1, 5.00%, 4/01/44 | | 600,000 | 647,810 |
| Leon County School District Sales TRB, 4.00%, 9/01/26 | | 800,000 | 816,610 |
| Miami-Dade County Aviation Revenue Bonds, Series A (AMT), 5.00%, 10/01/49 | | 250,000 | 261,685 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Florida (Continued) |
| Miami-Dade County Aviation Revenue Refunding Bonds, Series A (AMT), 5.00%, 10/01/33 | | $500,000 | $ 515,958 |
| Miami-Dade County Educational Facilities Authority Revenue Refunding Bonds, Series A, University of Miami, 5.00%, 4/01/30 | | 250,000 | 262,400 |
| Osceola County Florida Transportation Revenue Refunding CABS, Series A-2, | | | |
| 0.00%, 10/01/25(f) | | 125,000 | 111,037 |
| 0.00%, 10/01/26(f) | | 275,000 | 234,853 |
| 0.00%, 10/01/27(f) | | 360,000 | 294,198 |
| Tampa Hospital Revenue Bonds, H. Lee Moffitt Cancer Center, | | | |
| 5.00%, 7/01/23 | | 150,000 | 154,893 |
| 5.00%, 7/01/25 | | 150,000 | 160,118 |
| 5.00%, 7/01/26 | | 125,000 | 135,623 |
| 5.00%, 7/01/27 | | 125,000 | 137,498 |
|
| Village Community Development District No. 13 Special Assessment Bonds, Limited Offering, 2.62%, 5/01/24 | | 370,000 | 364,098 |
| Volusia County Educational Facilities Authority Revenue Refunding Bonds, Embry-Riddle Aeronautical, 5.00%, 10/15/44 | | 500,000 | 540,186 |
| Wildwood Utility Dependent District Senior Lien Revenue Bonds, South Sumter Utility Project (BAM Insured), 5.00%, 10/01/41 | | 465,000 | 520,742 |
| Wildwood Utility Dependent District Subordinate Revenue Bonds, South Sumter Utility Project (BAM Insured), 5.00%, 10/01/36 | | 400,000 | 454,964 |
| | | | 13,307,529 |
| Georgia – 2.4% |
| Atlanta Airport Passenger Facility Charge Subordinate Revenue Bonds (AMT), 4.00%, 7/01/37 | | 500,000 | 504,297 |
| | | Par | Value |
| Georgia (Continued) |
| Atlanta Development Authority Senior Lien Revenue Bonds, Series A-1, 5.00%, 7/01/30 | | $ 200,000 | $212,505 |
| Bartow County Development Authority Revenue Refunding Bonds, Georgia Power Company Plant Bowen Project, 1.80%, 9/01/29(c)(d) | | 250,000 | 222,047 |
| Brookhaven Development Authority Revenue Bonds, Children's Healthcare of Atlanta, 4.00%, 7/01/49 | | 1,000,000 | 997,105 |
| Fulton County Development Authority Transportation Corp., Toll Revenue Refunding Bonds, Robert W. Woodruff Arts Center, Inc., Project, 5.00%, 3/15/32 | | 200,000 | 220,077 |
| Gainesville & Hall County Hospital Authority Revenue Refunding Bonds, Northeast Georgia Health System, Inc., Project, 5.00%, 2/15/37 | | 500,000 | 545,057 |
| Gainesville & Hall County Hospital Authority Revenue Refunding Bonds, Series S, Northeast Georgia Health System, Inc., Project (County Gtd), Prerefunded, 5.50%, 2/15/25(a) | | 500,000 | 541,039 |
| Glynn-Brunswick Memorial Hospital Authority Revenue Refunding Anticipation Certificates Bonds, Southeast Georgia Health System, 5.00%, 8/01/34 | | 530,000 | 560,630 |
| Griffin-Spalding County Hospital Authority Revenue Anticipation Certificates Bonds, Wellstar, 5.00%, 4/01/35 | | 150,000 | 162,808 |
| Main Street Natural Gas Inc., Gas Supply Variable Revenue Bonds, Series B, | | | |
| 4.00%, 12/01/23 | | 355,000 | 362,199 |
| 4.00%, 12/02/24(b)(c)(d) | | 100,000 | 102,468 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Georgia (Continued) |
|
| Main Street Natural Gas, Inc. Gas Supply Revenue Bonds, Series A, 4.00%, 9/01/27(b)(d) | | $1,675,000 | $1,720,234 |
| Main Street Natural Gas, Inc., Gas Supply Revenue Bonds, Series A, 4.00%, 9/01/23(b)(c)(d) | | 370,000 | 376,086 |
| Main Street Natural Gas, Inc., Gas Supply Revenue Bonds, Subseries C, 4.00%, 12/01/23(b)(d) | | 500,000 | 509,205 |
| Municipal Electric Authority of Georgia Power Revenue Refunding Bonds, Series HH, 5.00%, 1/01/29 | | 500,000 | 549,998 |
| Private Colleges & Universities Authority Revenue Refunding Bonds, Series B, Emory University, 4.00%, 9/01/40 | | 1,500,000 | 1,514,434 |
| | | | 9,100,189 |
| Guam – 0.1% |
| Guam Government Business Privilege Tax Revenue Refunding Bonds, Series F, 4.00%, 1/01/42 | | 250,000 | 227,933 |
| Illinois – 7.0% |
| Chicago Board Of Education GO Unlimited Bonds, Series A, 5.00%, 12/01/38 | | 500,000 | 523,215 |
| Chicago City Colleges Capital Appreciation GO Unlimited Bonds (NATL Insured), 0.00%, 1/01/30(f) | | 750,000 | 560,969 |
| Chicago GO Unlimited Bonds, Series A, 5.50%, 1/01/49 | | 100,000 | 107,388 |
| Chicago Midway Airport Second Lien Revenue Refunding Bonds, Series A (AMT), 5.00%, 1/01/31 | | 1,045,000 | 1,071,409 |
| Chicago O'Hare International Airport Senior Lien General Revenue Bonds, Series D (AMT), 5.00%, 1/01/26 | | 140,000 | 148,800 |
| | | Par | Value |
| Illinois (Continued) |
| Chicago O'Hare International Airport Senior Lien Revenue Refunding Bonds, Series A (AMT), 5.00%, 1/01/31 | | $ 250,000 | $ 270,259 |
| Chicago Park District GO Limited Tax Refunding Bonds, Series B, | | | |
| 5.00%, 1/01/24 | | 175,000 | 182,263 |
| 5.00%, 1/01/26 | | 395,000 | 408,558 |
|
| Chicago Special Assessment Refunding Bonds, Lakeshore East Project, 2.87%, 12/01/27 | | 254,000 | 237,372 |
| Chicago Wastewater Transmission Second Lien Revenue Bonds, 5.00%, 1/01/39 | | 500,000 | 513,415 |
| Cook County GO Unlimited Refunding Bonds, Series A, 5.00%, 11/15/25 | | 1,000,000 | 1,073,803 |
| Cook County Sales TRB, 5.00%, 11/15/37 | | 500,000 | 507,966 |
| Grundy Kendall & Will Counties Community High School District No. 111 GO Unlimited Refunding Bonds, 4.00%, 5/01/23 | | 175,000 | 177,932 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, 4.00%, 7/15/39 | | 250,000 | 254,227 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, Bradley Universtiy Project, 4.00%, 8/01/43 | | 250,000 | 231,854 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, Lutheran Communities, 5.00%, 11/01/40 | | 350,000 | 353,923 |
| Illinois State Finance Authority Variable Revenue Bonds, Series B-2, 5.00%, 11/15/26(b)(c)(d) | | 500,000 | 540,419 |
| Illinois State GO Unlimited Bonds, | | | |
| 5.37%, 5/01/23 | | 250,000 | 256,849 |
| 5.50%, 5/01/25 | | 845,000 | 902,817 |
| 5.50%, 7/01/26 | | 460,000 | 474,352 |
| Illinois State GO Unlimited Bonds, Series B, | | | |
| 5.00%, 3/01/24 | | 250,000 | 259,528 |
| 5.00%, 10/01/31 | | 250,000 | 271,097 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Illinois (Continued) |
|
| Illinois State GO Unlimited Bonds, Series D, 5.00%, 11/01/27 | | $1,500,000 | $1,618,578 |
| Illinois State GO Unlimited Refunding Bonds, 5.00%, 8/01/24 | | 470,000 | 474,299 |
| Illinois State GO Unlimited Refunding Bonds, Series A, 5.00%, 10/01/25 | | 110,000 | 116,567 |
| Illinois State GO Unlimited Refunding Bonds, Series B, 5.00%, 10/01/28 | | 250,000 | 270,913 |
| Illinois State Housing Development Authority MFH Variable Revenue Bonds, Marshall Field Garden (FNMA LOC), (SIFMA Municipal Swap Index Yield + 1.00%), 1.44%, 5/15/25(b)(d) | | 500,000 | 504,600 |
| Illinois State Sales Tax Junior Obligations Revenue Bonds, Series A (BAM Insured), 4.00%, 6/15/34 | | 620,000 | 627,723 |
| Illinois State Sales Tax Revenue Refunding Bonds, Subseries D (BAM, TCRS Insured), 3.00%, 6/15/31 | | 390,000 | 365,008 |
| Illinois State Sales TRB, Build Illinois - Junior Obligation, 5.00%, 6/15/23 | | 200,000 | 204,922 |
| Illinois State Sports Facilities Authority State Tax Supported Revenue CABS (AMBAC Insured), 0.00%, 6/15/25(f) | | 95,000 | 85,330 |
| Illinois State Sports Facilities Authority State Tax Supported Revenue Refunding Bonds (AGM Insured), 5.00%, 6/15/27 | | 400,000 | 415,398 |
| Illinois State Toll Highway Authority Revenue Bonds, Series A, 5.00%, 1/01/46 | | 500,000 | 556,613 |
| Illinois State Toll Highway Authority Senior Revenue Bonds, Series A, 5.00%, 1/01/40 | | 500,000 | 557,847 |
| Illinois State Toll Highway Authority Senior Revenue Refunding Bonds, Series A, 5.00%, 1/01/31 | | 525,000 | 587,977 |
| | | Par | Value |
| Illinois (Continued) |
|
| Kane, Cook & Dupage Counties, Illinois School District, GO Unlimited Refunding Bonds, Series D, 5.00%, 1/01/28 | | $215,000 | $223,244 |
| Libertyville GO Unlimited Refunding Bonds, Series A, 3.00%, 12/15/23 | | 245,000 | 247,468 |
| Madison, Macoupin Etc. Counties Community College District No. 536 GO Unlimited Refunding Bonds, Lewis & Clark Community (AGM Insured), 4.00%, 5/01/23 | | 700,000 | 710,898 |
| Metropolitan Pier & Exposition Authority Dedicated Capital Appreciation Tax Revenue Refunding Bonds, Series B, McCormick Project (AGM Insured), 0.00%, 6/15/26(f) | | 250,000 | 217,270 |
| Metropolitan Pier & Exposition Authority Revenue Refunding Bonds, McCormick Place Expansion, | | | |
| 4.00%, 12/15/42 | | 375,000 | 351,886 |
| 4.00%, 6/15/52 | | 245,000 | 222,641 |
|
| Metropolitan Pier & Exposition Authority Revenue Refunding CABS, McCormick Place Expansion, 0.00%, 12/15/35(f) | | 150,000 | 77,218 |
| Metropolitan Pier and Exposition Authority Revenue Refunding Bonds, McCormick Place Expansion Project, | | | |
| 5.00%, 6/15/42 | | 500,000 | 524,439 |
| 5.00%, 6/15/50 | | 500,000 | 518,699 |
| Northern University Board of Trustees Revenue Bonds, Auxiliary Facilities System (BAM Insured), | | | |
| 5.00%, 10/01/25 | | 325,000 | 346,828 |
| 5.00%, 10/01/26 | | 250,000 | 270,360 |
|
| Peoria County School District No. 150 GO Unlimited Refunding Bonds, Series A (AGM Insured), 4.00%, 12/01/26 | | 390,000 | 410,263 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Illinois (Continued) |
|
| Peoria GO Unlimited Refunding Bonds, Series C (AGM Insured), 5.00%, 1/01/27 | | $2,000,000 | $ 2,177,485 |
| Regional Transportation Authority Revenue Bonds, Series A (AGM Insured), 5.75%, 6/01/34 | | 750,000 | 903,562 |
| Regional Transportation Authority Revenue Bonds, Series B (NATL Insured), 5.50%, 6/01/27 | | 350,000 | 380,705 |
| Sales Tax Securitization Corp., Second Lien Revenue Refunding Bonds, Series A, 4.00%, 1/01/38 | | 250,000 | 248,963 |
| Sangamon Logan & Menard Counties Community Unit School District No. 15 GO Unlimited Bonds, Series B (BAM Insured), | | | |
| 5.00%, 12/01/25 | | 300,000 | 323,658 |
| 4.00%, 12/01/39 | | 250,000 | 258,755 |
| Waukegan City Lake County Water & Sewer System Revenue Refunding Bonds (AGM Insured), | | | |
| 5.00%, 12/30/26 | | 200,000 | 218,743 |
| 4.00%, 12/30/38 | | 500,000 | 515,780 |
| 4.00%, 12/30/40 | | 500,000 | 514,170 |
|
| Waukegan GO Unlimited Bonds, Series A (AGM Insured), 5.00%, 12/30/32 | | 250,000 | 265,144 |
| Will County Community High School District No. 210 Lincoln-Way Refunding GO Unlimited Bonds (AGM Insured), 4.00%, 1/01/34 | | 650,000 | 667,972 |
| Will County Community School District No. 161 Summit Hill Refunding GO Unlimited Bonds, 4.00%, 1/01/24 | | 470,000 | 481,593 |
| | | | 26,791,934 |
| Indiana – 2.4% |
| Clarksville Sewage Works Revenue BANS, 2.75%, 12/11/23 | | 125,000 | 125,006 |
| | | Par | Value |
| Indiana (Continued) |
| Fort Wayne Redevelopment Authority Lease Rental Revenue Refunding Bonds, Grand Wayne Center Project (State Intercept Program), 4.00%, 2/01/26 | | $ 760,000 | $ 791,894 |
| Indiana Bond Bank Revenue CABS, Hamilton Co., Projects, | | | |
| 0.00%, 7/15/25(f) | | 450,000 | 408,231 |
| 0.00%, 7/15/28(f) | | 900,000 | 733,833 |
| 0.00%, 1/15/29(f) | | 560,000 | 448,905 |
|
| Indiana Finance Authority Midwestern Disaster Relief Revenue Bonds, Series A, Ohio Valley Electric Corp., Project, 5.00%, 6/01/39 | | 140,000 | 140,127 |
| Indiana State Finance Authority Private Activity Revenue Bonds (AMT), Ohio River Bridges East End Crossing Project, Prerefunded, 5.25%, 7/01/23(a) | | 600,000 | 618,342 |
| Indiana State Finance Authority Revenue Refunding Bonds, Valparaiso University Project, 5.00%, 10/01/23 | | 585,000 | 602,706 |
| Indiana State Finance Authority Variable Revenue Refunding Bonds, Deaconess Health System, (SIFMA Municipal Swap Index Yield + 0.30%), 0.74%, 3/01/27(b)(d) | | 1,445,000 | 1,445,019 |
| Knox Middle School Building Corp., Revenue Bonds (State Intercept), 5.00%, 1/15/27 | | 440,000 | 485,811 |
| Upland Economic Development Revenue Refunding Bonds, Taylor University Project, 4.00%, 9/01/24 | | 570,000 | 583,992 |
| Vinton-Tecumseh School Building Corp. Ad Valorem Property Tax First Mortgage Revenue Bonds (State Intercept), | | | |
| 4.00%, 7/15/26 | | 530,000 | 556,042 |
| 4.00%, 1/15/27 | | 540,000 | 568,830 |
| 4.00%, 7/15/27 | | 550,000 | 581,369 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Indiana (Continued) |
|
| Warrick County, Indiana Environmental Improvement Variable Revenue Bonds (AMT), Vectren Energy Delivery, 0.88%, 9/01/23(b)(c)(d) | | $1,000,000 | $ 975,840 |
| Whiting Environmental Facilities Revenue Refunding Bonds (AMT), BP Products North America, 5.00%, 6/05/26(b)(c)(d) | | 290,000 | 308,933 |
| | | | 9,374,880 |
| Iowa – 0.2% |
| Indianola GO Unlimited Capital Loan Notes, | | | |
| 3.00%, 6/01/23 | | 195,000 | 196,813 |
| 3.00%, 6/01/24 | | 255,000 | 257,810 |
|
| PEFA, Inc. Gas Project Revenue Bonds, 5.00%, 9/01/26(b)(c)(d) | | 150,000 | 158,294 |
| | | | 612,917 |
| Kentucky – 1.7% |
| Kenton County Airport Board Revenue Refunding Bonds, 5.00%, 1/01/32 | | 400,000 | 430,336 |
| Kentucky Bond Development Corp. Educational Facilities Revenue Refunding Bonds, Transylvania University Project, 5.00%, 3/01/27 | | 155,000 | 168,782 |
| Kentucky State Economic Development Finance Authority Health System Revenue Refunding Bonds, Norton Healthcare, Inc., Series B (NATL Insured), 0.00%, 10/01/24(f) | | 280,000 | 259,205 |
| Kentucky State Economic Development Finance Authority Revenue Bonds, Owensboro Health, 5.25%, 6/01/50 | | 250,000 | 261,495 |
| Kentucky State Economic Development Finance Authority Revenue Refunding Bonds, Masonic Home Independent Living, 5.00%, 5/15/46 | | 100,000 | 93,123 |
| | | Par | Value |
| Kentucky (Continued) |
| Kentucky State Economic Development Finance Authority Revenue Refunding Bonds, Series B, Owensboro Health, 5.00%, 6/01/40 | | $ 300,000 | $ 320,571 |
| Kentucky State Public Energy Authority Gas Supply Revenue Bonds, Series A, 4.00%, 4/01/24(b)(c)(d) | | 475,000 | 481,735 |
| Kentucky State Public Energy Authority Gas Supply Revenue Bonds, Series A-1, 4.00%, 6/01/25(b)(c)(d) | | 500,000 | 507,116 |
| Kentucky State Public Energy Authority Revenue Bonds, Series B, Gas Supply, 4.00%, 1/01/25(b)(c)(d) | | 650,000 | 663,186 |
| Kentucky State University COPS, Kentucky State University Project (BAM Insured), 5.00%, 11/01/24 | | 230,000 | 242,835 |
| Louisville & Jefferson County Metro Government Pollution Control Revenue Refunding Bonds (AMT), Louisville Gas & Electric, 1.35%, 11/01/27 | | 1,500,000 | 1,318,699 |
| Louisville & Jefferson County Metropolitan Government Health System Variable Revenue Bonds, Norton Healthcare, Inc., 5.00%, 10/01/26(b)(c)(d) | | 1,000,000 | 1,090,940 |
| Louisville Regional Airport Authority Airport System Revenue Refunding Bonds, Series A (AMT), 5.00%, 7/01/23 | | 500,000 | 514,097 |
| | | | 6,352,120 |
| Louisiana – 0.7% |
| East Baton Rouge Parish Sewerage Commission Revenue Refunding Bonds, Series A, | | | |
| 5.00%, 2/01/24 | | 325,000 | 340,197 |
| 5.00%, 2/01/25 | | 475,000 | 507,323 |
| 5.00%, 2/01/26 | | 100,000 | 108,766 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Louisiana (Continued) |
|
| East Baton Rouge Parish Sewerage Commission Variable Revenue Refunding Bonds, Series A, 1.30%, 2/01/28(b)(c)(d) | | $ 500,000 | $ 435,469 |
| Louisiana Public Facilities Authority Revenue Refunding Bonds, Loyola University Project, | | | |
| 5.00%, 10/01/25 | | 250,000 | 263,876 |
| 5.00%, 10/01/26 | | 215,000 | 229,485 |
|
| Saint James Parish Variable Revenue Bonds, Nustar Logistics, 5.85%, 6/01/25(b)(c)(d)(e) | | 525,000 | 555,809 |
| Saint John The Baptist Parish Variable Revenue Refunding Bonds, Marathon Oil Corp., Project, 2.38%, 7/01/26(b)(c)(d) | | 125,000 | 118,154 |
| | | | 2,559,079 |
| Maine – 0.4% |
| Maine Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Series A, 5.00%, 7/01/27 | | 215,000 | 236,822 |
| Maine Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Series A (State Aid Withholding), 5.00%, 7/01/28 | | 650,000 | 710,099 |
| Maine State Finance Authority Student Loan Revenue Refunding Bonds (AMT) (AGM Insured), 5.00%, 12/01/24 | | 500,000 | 525,651 |
| | | | 1,472,572 |
| Maryland – 2.7% |
| Baltimore Convention Center Hotel Revenue Refunding Bonds, Convention Center Hotel, 5.00%, 9/01/39 | | 500,000 | 486,957 |
| Baltimore County GO Unlimited Bonds, 5.00%, 3/01/25 | | 1,265,000 | 1,355,548 |
| Department of Transportation Revenue Bonds (AMT), Baltimore Washington International, 4.00%, 8/01/37 | | 250,000 | 248,553 |
| | | Par | Value |
| Maryland (Continued) |
| Maryland Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Stevenson University Project, 4.00%, 6/01/51 | | $ 325,000 | $ 300,622 |
| Maryland State Community Development Administration Department Housing Revenue Bonds, Series A, Woodside Gardens, 1.33%, 1/01/24(e) | | 2,000,000 | 1,951,836 |
| Maryland State Economic Development Corp. Private Activity Revenue Bonds (AMT), Purple Line Light Rail Project, Green Bond, 5.25%, 6/30/55 | | 1,000,000 | 1,036,583 |
| Maryland State Economic Development Corp., Revenue Bonds (AMT), Seagirt Marine Terminal Projects, 5.00%, 6/01/44 | | 500,000 | 534,578 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Adventist Healthcare Obligated, 5.50%, 1/01/31 | | 400,000 | 434,664 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Peninsula Regional Health System, | | | |
| 5.00%, 7/01/24 | | 350,000 | 367,694 |
| 5.00%, 7/01/27 | | 1,320,000 | 1,451,315 |
|
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Adventist Healthcare, 4.00%, 1/01/26 | | 875,000 | 895,416 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Arundel Health Systems, 5.00%, 7/01/29 | | 250,000 | 275,753 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Series A, Broadmead Issue, 4.00%, 7/01/35 | | 285,000 | 291,555 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Maryland (Continued) |
|
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Series A, Mercy Medical Center, 4.00%, 7/01/42 | | $120,000 | $ 120,214 |
| Maryland State Health & Higher Educational Facilities Authority Variable Revenue Refunding Bonds, University of Maryland, 5.00%, 7/01/27(b)(c)(d) | | 200,000 | 218,569 |
| Montgomery County Housing Opportunities Commission Multifamily & Reconstruction Development Revenue Bonds, Series C (FHA 542 (C) Insured), 2.85%, 1/01/51 | | 250,000 | 192,558 |
| Washington Country Economic Development Revenue Refunding Bonds, Homewood Maryland Obligated Group Project, 4.00%, 5/01/42 | | 225,000 | 193,186 |
| | | | 10,355,601 |
| Massachusetts – 1.2% |
| Development Finance Agency Revenue Refunding Bonds, Lasell University, | | | |
| 4.00%, 7/01/25 | | 235,000 | 237,495 |
| 4.00%, 7/01/26 | | 240,000 | 241,913 |
|
| Massachusetts Development Finance Agency Revenue Bonds, UMass Boston Student Housing Project, 5.00%, 10/01/48 | | 500,000 | 508,877 |
| Massachusetts Port Authority Revenue Bonds, Series E (AMT), 5.00%, 7/01/27 | | 365,000 | 398,384 |
| Massachusetts State Consolidated Loan GO Limited Bonds, Series E, 5.25%, 9/01/48 | | 500,000 | 553,209 |
| | | Par | Value |
| Massachusetts (Continued) |
|
| Massachusetts State Development Financing Agency Variable Revenue Bonds, Partners Healthcare System, (SIFMA Municipal Swap Index Yield + 0.00%), 1.04%, 1/29/26(b)(d)(e) | | $1,000,000 | $ 998,339 |
| Massachusetts State GO Limited Refunding Bonds, Series B, 5.00%, 7/01/34 | | 1,350,000 | 1,543,032 |
| | | | 4,481,249 |
| Michigan – 2.1% |
| Detroit Downtown Development Authority Tax Allocation Increment Revenue Refunding Bonds, Series A, Catalyst Development Project (AGM Insured), | | | |
| 5.00%, 7/01/43 | | 100,000 | 104,304 |
| 5.00%, 7/01/48 | | 200,000 | 208,054 |
|
| Detroit GO Unlimited Bonds, 5.00%, 4/01/27 | | 50,000 | 53,260 |
| Detroit GO Unlimited Bonds, Series A, Social Bonds, 4.00%, 4/01/40 | | 250,000 | 229,884 |
| Gerald R. Ford International Airport Authority Revenue Bonds (AMT) (County Gtd), 5.00%, 1/01/51 | | 525,000 | 571,845 |
| Great Lakes Water Authority Sewage Disposal System Second Lien Revenue Refunding Bonds, Series C, 5.00%, 7/01/36 | | 495,000 | 536,663 |
| Michigan Finance Authority Revenue Bonds, Local Government Loan Program, 5.00%, 7/01/33 | | 350,000 | 372,625 |
| Michigan State Finance Authority Limited Obligation Revenue Refunding Bonds, Lawrence Technological University, 4.00%, 2/01/27 | | 185,000 | 188,815 |
| Michigan State Finance Authority Local Government Loan Program Revenue Refunding Bonds, | | | |
| 5.00%, 7/01/29 | | 425,000 | 451,811 |
| 4.50%, 10/01/29 | | 250,000 | 252,250 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Michigan (Continued) |
|
| Michigan State Finance Authority Revenue Refunding Bonds, Michigan Health, Escrowed to Maturity, 5.00%, 6/01/23 | | $ 390,000 | $ 401,849 |
| Michigan State Finance Authority Revenue Refunding Bonds, Trinity Health Credit Group, 4.00%, 12/01/35 | | 515,000 | 518,147 |
| Michigan State Finance Authority Variable Revenue Refunding Bonds, Beaumont Spectrum, 4/15/27(b)(d)(g) | | 1,500,000 | 1,500,000 |
| Michigan State Hospital Finance Authority Revenue Refunding Bonds, Ascenion Senior, 5.00%, 11/15/47 | | 420,000 | 448,907 |
| Michigan State Strategic Fund Limited Obligation Variable Revenue Bonds (AMT), Consumers Energy Co., 1.80%, 10/01/24(b)(c)(d) | | 500,000 | 485,036 |
| Michigan State Strategic Fund Limited Obligation Variable Revenue Bonds (AMT), Green Bond, 4.00%, 10/01/26(b)(c)(d) | | 100,000 | 102,107 |
| Northern University General Revenue Refunding Bonds, Series A, 5.00%, 12/01/27 | | 590,000 | 658,093 |
| Wayne County Airport Authority Junior Lien Revenue Refunding Bonds, Series A, 5.00%, 12/01/26 | | 500,000 | 544,634 |
| Wayne University Revenue Refunding Bonds, Series A (BAM, TCRS Insured), 5.00%, 11/15/27 | | 300,000 | 326,879 |
| | | | 7,955,163 |
| | | Par | Value |
| Minnesota – 0.2% |
| City of Shakopee Senior Housing Revenue Bonds, Benedictine Living Community of Shakopee LLC Project, 5.85%, 11/01/25(b)(c)(d)(e) | | $250,000 | $252,796 |
| Minnesota Municipal Gas Agency Commodity Supply Revenue Bonds, Series A, 4.00%, 12/01/27(b)(c)(d) | | 450,000 | 464,525 |
| | | | 717,321 |
| Mississippi – 0.2% |
| Mississippi State Hospital Equipment & Facilities Authority Adjustable Revenue Refunding Bonds, North Mississippi Health, 5.00%, 3/01/27(b)(c)(d) | | 265,000 | 286,529 |
| Mississippi State Hospital Equipment & Facilities Authority Revenue Refunding Bonds, Forrest Country General Hospital Project, 5.00%, 1/01/24 | | 400,000 | 416,667 |
| | | | 703,196 |
| Missouri – 1.3% |
| Central Southwest Community College District COPS, | | | |
| 5.00%, 3/01/26 | | 225,000 | 243,829 |
| 5.00%, 3/01/27 | | 225,000 | 247,556 |
| Missouri Health & Educational Facilities Authority Revenue Refunding Bonds, | | | |
| 5.00%, 2/15/26 | | 200,000 | 216,488 |
| 5.00%, 2/15/27 | | 215,000 | 236,287 |
| 5.00%, 2/15/28 | | 250,000 | 277,752 |
|
| Missouri Joint Municipal Electric Utility Commission Power Project Revenue Refunding Bonds, Series A, Iatan 2 Project, 5.00%, 1/01/33 | | 310,000 | 321,067 |
| Missouri State Health & Educational Facilities Authority Health Facilities Revenue Refunding Bonds, Series A, St. Luke's Health System, Inc., | | | |
| 5.00%, 11/15/23 | | 150,000 | 156,079 |
| 5.00%, 11/15/30 | | 250,000 | 270,904 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Missouri (Continued) |
| Missouri State Health & Educational Facilities Authority Revenue Refunding Bonds, Bethesda Health Group, Inc., | | | |
| 4.00%, 8/01/24 | | $ 320,000 | $ 328,349 |
| 4.00%, 8/01/26 | | 200,000 | 207,894 |
|
| Missouri State Public Utilities Commission Revenue Notes, 0.75%, 8/01/23 | | 2,000,000 | 1,946,719 |
| Saint Louis County IDA Senior Living Facilities Revenue Refunding Bonds, Friendship Village St. Louis, 5.00%, 9/01/48 | | 500,000 | 501,821 |
| | | | 4,954,745 |
| Nebraska – 0.6% |
| Central Plains Energy Project Gas Supply Revenue Refunding Bonds, 4.00%, 8/01/25(b)(c)(d) | | 225,000 | 229,887 |
| Douglas County Educational Facilities Variable Revenue Refunding Bonds, Creighton University Project, 0.97%, 9/01/26(b)(d) | | 750,000 | 752,424 |
| Douglas County Hospital Authority No. 2 Revenue Bonds, Children's Hospital Obligated Group, 5.00%, 11/15/25(b)(c)(d) | | 600,000 | 644,210 |
| Gretna COPS, 5.00%, 12/15/25 | | 500,000 | 529,955 |
| | | | 2,156,476 |
| Nevada – 1.6% |
| Clark County Airport Subordinate Revenue Refunding Bonds, Series B (AMT), 5.00%, 7/01/26 | | 1,200,000 | 1,285,890 |
| Clark County Pollution Control Revenue Refunding Bonds, Southern California Edison Company, 2.10%, 6/01/31 | | 250,000 | 216,077 |
| Clark County School District GO Limited Refunding Bonds, Series C, Building, 5.00%, 6/15/23 | | 500,000 | 515,320 |
| | | Par | Value |
| Nevada (Continued) |
| Clark County School District GO Limited Refunding Bonds, Series E, 5.00%, 6/15/25 | | $1,330,000 | $1,422,699 |
| Clark County Stadium Improvement GO Limited Bonds, Series A, 5.00%, 5/01/48 | | 500,000 | 542,216 |
| Las Vegas Convention & Visitors Authority Convention Center Expansion Revenue Bonds, Series B, 5.00%, 7/01/43 | | 250,000 | 273,283 |
| Las Vegas New Convention & Visitors Authority Revenue Bonds, Series B, 5.00%, 7/01/37 | | 1,000,000 | 1,112,933 |
| Las Vegas Special Improvement District No. 814 Summerlin Village 21 & 24A Special Assessment Bonds, 4.00%, 6/01/49 | | 100,000 | 89,642 |
| Reno Sales Tax First Lien Revenue Refunding Bonds, Retrac-Reno Transportation Rail Access Corridor Project, 5.00%, 6/01/48 | | 500,000 | 525,765 |
| Sparks Nevada Tourism Improvement District No. 1 Sales Tax Senior Lien Revenue Refunding Bonds, Series A, 2.50%, 6/15/24(e) | | 225,000 | 220,984 |
| | | | 6,204,809 |
| New Hampshire – 0.3% |
| National Finance Authority Municipal Certificates Revenue Bonds, Series 1-A, 4.13%, 1/20/34 | | 702,154 | 723,841 |
| National Finance Authority Revenue Bonds, Series A, 4.00%, 7/01/51 | | 250,000 | 251,461 |
| New Hampshire State Health & Education Facilities Authority Revenue Refunding Bonds, Kendal at Hanover Issue, 5.00%, 10/01/36 | | 180,000 | 189,888 |
| | | | 1,165,190 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New Jersey – 3.8% |
| Atlantic City Board Of Education GO Unlimited Refunding Bonds (AGM School Board Resource Fund Insured), 4.00%, 4/01/25 | | $ 350,000 | $ 363,716 |
| Garden State Preservation Trust Open Space & Farmland Preservation Revenue Bonds, Series A (AGM Insured), 5.75%, 11/01/28 | | 1,170,000 | 1,327,336 |
| New Jersey Covid-19 GO Unlimited Emergency Bonds, 5.00%, 6/01/26 | | 385,000 | 415,635 |
| New Jersey Economic Development Authority Revenue Refunding bonds, Series GGG, School Facilities Construction, 5.25%, 9/01/23(e) | | 1,500,000 | 1,554,091 |
| New Jersey Economic Development Authority Revenue Refunding Bonds, Cranes Mill Project, 5.00%, 1/01/49 | | 260,000 | 269,972 |
| New Jersey State EDA Energy Facility Revenue Bonds, Series A (AMT), UMM Energy Partners, | | | |
| 5.00%, 6/15/37 | | 190,000 | 190,384 |
| 5.12%, 6/15/43 | | 350,000 | 350,726 |
|
| New Jersey State EDA Motor Vehicle Surcharge Revenue Refunding Bonds, Subseries A, 3.38%, 7/01/30 | | 250,000 | 242,815 |
| New Jersey State EDA Private Activity Revenue Bonds (AMT), The Goethals Project, | | | |
| 5.00%, 1/01/24 | | 150,000 | 154,929 |
| 5.25%, 1/01/25 | | 100,000 | 103,691 |
| 5.37%, 1/01/43 | | 100,000 | 102,765 |
|
| New Jersey State EDA Revenue Bonds, Provident Group Rowan Properties LLC, 5.00%, 1/01/48 | | 125,000 | 120,606 |
| New Jersey State EDA Revenue Refunding Bonds, School Facilities Construction, 5.00%, 3/01/24 | | 1,000,000 | 1,019,447 |
| | | Par | Value |
| New Jersey (Continued) |
|
| New Jersey State EDA Revenue Refunding Bonds, Series A, United Methodist Homes, 5.00%, 7/01/29 | | $ 100,000 | $ 101,672 |
| New Jersey State EDA Revenue Refunding Bonds, Series XX, 5.00%, 6/15/23 | | 170,000 | 175,209 |
| New Jersey State EDA Special Facility Revenue Refunding Bonds (AMT), Port Newark Container, 5.00%, 10/01/47 | | 300,000 | 312,825 |
| New Jersey State EDA Water Facilities Revenue Refunding Bonds (AMT), New Jersey American Water Co., Inc. Project, 2.20%, 12/03/29(b)(d) | | 775,000 | 704,378 |
| New Jersey State Health Care Facilities Financing Authority Revenue Bonds, Valley Health System Obligated Group Series, 5.00%, 7/01/33 | | 1,000,000 | 1,129,408 |
| New Jersey State Health Care Facilities Financing Authority Revenue Refunding Bonds, Inspira Health Obligated Group, 5.00%, 7/01/30 | | 1,000,000 | 1,077,646 |
| New Jersey State Health Care Facilities Financing Authority Revenue Refunding Bonds, RWJ Barnajas Health Obligated Group, 5.00%, 7/01/26(b)(c)(d) | | 400,000 | 431,384 |
| New Jersey State Higher Education Assistance Authority Student Loan Revenue Bonds, Series B (AMT), 5.00%, 12/01/24 | | 570,000 | 602,150 |
| New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series A, 4.00%, 6/15/42 | | 250,000 | 240,205 |
| New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series AA, 5.00%, 6/15/40 | | 500,000 | 533,179 |
| New Jersey State Transportation Trust Fund Authority Revenue Bonds, Transportation Program, | | | |
| 5.25%, 6/15/43 | | 625,000 | 665,436 |
| 4.00%, 6/15/50 | | 280,000 | 260,451 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New Jersey (Continued) |
|
| New Jersey State Transportation Trust Fund Authority Revenue Refunding Bonds, Series A, 4.00%, 6/15/34 | | $175,000 | $ 173,362 |
| New Jersey State Transportation Trust Fund Authority Transportation System Revenue Refunding Bonds, 5.00%, 12/15/25 | | 100,000 | 106,912 |
| New Jersey State Turnpike Authority Revenue Bonds, Series A, | | | |
| 5.00%, 1/01/27 | | 305,000 | 335,135 |
| 5.00%, 1/01/33 | | 230,000 | 240,146 |
|
| New Jersey State Turnpike Authority Turnpike Revenue Refunding Bonds, Series E, 5.00%, 1/01/31 | | 255,000 | 279,564 |
| New Jersey Turnpike Revenue Bonds, Series A, 4.00%, 1/01/42 | | 240,000 | 241,882 |
| Newark Board of Education GO Unlimited Bonds, Sustainability Bonds (School Board Guaranty Program), 5.00%, 7/15/23 | | 300,000 | 310,028 |
| Newark Housing Authority Port Newark Marine Terminal Rental Revenue Refunding Bonds, Additional Newark Redevelopment Project (NATL Insured), 5.25%, 1/01/24 | | 500,000 | 513,377 |
| | | | 14,650,462 |
| New Mexico – 0.3% |
| Farmington PCR Refunding Bonds, Public Service Company of New Mexico San Juan Project, 1.15%, 6/01/24(b)(c)(d) | | 250,000 | 239,571 |
| New Mexico State Hospital Equipment Loan Council Variable Revenue Bonds, Series B, 5.00%, 8/01/25(b)(c)(d) | | 500,000 | 536,934 |
| New Mexico State Municipal Energy Acquisition Authority Gas Supply Revenue Refunding Bonds, Series A, 5.00%, 5/01/25(b)(c)(d) | | 275,000 | 290,234 |
| | | | 1,066,739 |
| | | Par | Value |
| New York – 8.3% |
| Build Resource Corp., Revenue Bonds, Friends of Hellenic Classical Charter Schools, Inc., 4.00%, 12/01/31(e) | | $ 500,000 | $ 482,594 |
| Hempstead Town Local Develop Corp., Education Revenue Refunding Bonds, Academy Charter School Project, 5.66%, 2/01/44 | | 250,000 | 257,072 |
| Hempstead Town Local Development Corp. Revenue Refunding Bonds, Adelphi University Project, | | | |
| 5.00%, 6/01/27 | | 300,000 | 326,104 |
| 5.00%, 6/01/28 | | 500,000 | 549,010 |
|
| Hempstead Town Local Development Corp., Education Revenue Bonds, Academy Charter School Project, 4.60%, 2/01/51 | | 250,000 | 204,066 |
| Hudson Yards Infrastructure Corp. Revenue Refunding Bonds, Second Indenture Series, Fiscal 2022, Green Bonds, 4.00%, 2/15/43 | | 1,000,000 | 994,993 |
| Long Beach GO Limited Bonds, Series A, 5.00%, 9/01/28 | | 665,000 | 710,847 |
| Long Island Power Authority Electric System Variable Revenue Bonds, Series B, 1.65%, 9/01/24(b)(c)(d) | | 1,650,000 | 1,618,810 |
| Metropolitan Transportation Authority Revenue Bonds, Series A-1-Group 1, Green Bond, 5.00%, 11/15/49 | | 500,000 | 520,098 |
| Metropolitan Transportation Authority Transportation Revenue Bonds, Series E, 4.00%, 11/15/23 | | 535,000 | 546,902 |
| Metropolitan Transportation Authority Variable Revenue Bonds, Subseries D-1, (SOFR + 0.33%), 0.53%, 4/01/24(b)(d) | | 950,000 | 942,620 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New York (Continued) |
|
| Metropolitan Transportation Authority, New York Transportation Variable Rate Revenue Refunding Bonds, Subseries G-3, (SIFMA Municipal Swap Index Yield + 0.43%), 0.87%, 2/01/25(b)(d) | | $1,000,000 | $1,006,080 |
| Monroe County Industrial Development Agency School Facility Revenue Bonds, Rochester Schools Modernization Project (State Aid Withholding), 5.00%, 5/01/35 | | 800,000 | 907,712 |
| Monroe County Industrial Development Corp., Revenue Bonds, University of Rochester Project, 4.00%, 7/01/50 | | 1,000,000 | 985,686 |
| New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, 4.00%, 11/01/40 | | 400,000 | 402,107 |
| New York City Transitional Finance Authority Future Tax Subordinate Revenue Bonds, 4.00%, 5/01/36 | | 1,000,000 | 1,018,613 |
| New York City Transitional Finance Authority Revenue Bonds, Sub Series C-2, 5.00%, 5/01/32 | | 1,000,000 | 1,102,393 |
| New York City Transitional Finance Authority Subordinate Revenue Bonds, Series F-1, 5.00%, 2/01/47 | | 625,000 | 691,431 |
| New York GO Unlimited Bonds, Series 1, 4.00%, 8/01/27 | | 625,000 | 661,758 |
| New York GO Unlimited Bonds, Series D, Subseries D1, 5.00%, 12/01/42 | | 250,000 | 270,910 |
| New York State Convention Center Development Corp., Revenue Refunding Bonds, Hotel Unit Fee Secured, 5.00%, 11/15/40 | | 600,000 | 636,389 |
| New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Fordham University, 4.00%, 7/01/50 | | 600,000 | 583,575 |
| | | Par | Value |
| New York (Continued) |
|
| New York State Dormitory Authority Non State Supported Debt Revenue Refunding Bonds, Series A, Barnard College, 4.00%, 7/01/49 | | $ 300,000 | $ 293,302 |
| New York State Dormitory Authority Personal Income Tax Revenue Refunding Bonds, Series A, 5.00%, 3/15/41 | | 2,000,000 | 2,231,781 |
| New York State Dormitory Authority Revenues Non State Supported Debt Revenue Bonds, Master Boces Program (State Aid Withholding), 5.00%, 8/15/26 | | 455,000 | 497,297 |
| New York State Dormitory Authority Revenues Non State Supported Debt Revenue Bonds, Northwell Health Obligated Group, 5.00%, 5/01/24(b)(d) | | 1,250,000 | 1,298,706 |
| New York State Dormitory Authority Revenues Non State Supported Debt Revenue Refunding Bonds, Memorial Sloan Kettering Cancer Center, 5.00%, 7/01/42 | | 200,000 | 219,795 |
| New York State Dormitory Authority Revenues Non State Supported Debt Revenue Refunding Bonds, Series A, Montefiore Obligated Group, 4.00%, 9/01/50 | | 500,000 | 441,501 |
| New York State Dormitory Authority State Personal Income Tax Revenue Refunding Bonds, Series D, 4.00%, 2/15/39 | | 500,000 | 502,633 |
| New York State Dormitory Authority State Personal Income Tax Revenue Refunding Bonds, Series E, Unrefunded Balance, 5.00%, 2/15/44 | | 425,000 | 444,688 |
| New York State Dormitory Authority Supported Debt Revenue Refunding Bonds, New York University, Series A, 4.00%, 7/01/46 | | 250,000 | 247,263 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New York (Continued) |
|
| New York State Housing Finance Agency Affordable Housing Sustainability Revenue Bonds, Series L-2 (SonyMA Insured), 0.75%, 11/01/25 | | $500,000 | $461,841 |
| New York State Liberty Development Corp., Revenue Refunding Bonds, Class 2, 3 World Trade Center Project, | | | |
| 5.15%, 11/15/34(e) | | 500,000 | 511,657 |
| 5.37%, 11/15/40(e) | | 150,000 | 153,576 |
|
| New York State Liberty Development Corp., Revenue Refunding Bonds, Green Bonds, 4 World Trade Center Project, 1.20%, 11/15/28 | | 500,000 | 416,351 |
| New York State Transportation Development Corp., Special Facility Revenue Refunding Bonds (AMT), John F. Kennedy International Airport Project, 5.38%, 8/01/36 | | 250,000 | 274,191 |
| New York State Transportation Development Corp., Special Facility Revenue Refunding Bonds (AMT), Terminal 4 John F. Kennedy International Airport Project, 5.00%, 12/01/33 | | 250,000 | 262,286 |
| New York State Transportation Development Corporation Special Facilities Revenue Bonds (AMT), Delta Air Lines, Inc., Laguardia Airport Terminal C&D Redevelopment Project, 5.00%, 10/01/35 | | 500,000 | 528,628 |
| New York State Urban Development Corp. Personal Income TRB, Series A, 5.00%, 3/15/41 | | 250,000 | 275,765 |
| New York State Urban Development Corp. Revenue Refunding Bonds, Series E Group 3, 4.00%, 3/15/43 | | 500,000 | 499,596 |
| | | Par | Value |
| New York (Continued) |
|
| Niagara Frontier Transportation Authority Revenue Refunding Bonds (AMT), Buffalo Niagara International Airport, 5.00%, 4/01/26 | | $ 250,000 | $ 266,627 |
| Onondaga County Trust Cultural Resource Revenue Refunding Bonds, Syracuse University Project, 4.00%, 12/01/47 | | 500,000 | 495,184 |
| Port Authority of New York & New Jersey Consolidated 211th Revenue Refunding Bonds, 5.00%, 9/01/48 | | 830,000 | 911,055 |
| Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 218 (AMT), 5.00%, 11/01/31 | | 1,065,000 | 1,178,380 |
| Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 221 (AMT), 4.00%, 7/15/40 | | 500,000 | 487,765 |
| Port Authority of New York & New Jersey Revenue Bonds, Series 179, 5.00%, 12/01/25 | | 750,000 | 781,097 |
| Poughkeepsie City GO Limited Refunding Bonds, 4.00%, 4/15/25 | | 440,000 | 451,753 |
| Sales Tax Asset Receivable Corp., Revenue Refunding Bonds, Series A, Fiscal 2015, Prerefunded, 5.00%, 10/15/24(a) | | 245,000 | 260,328 |
| Suffolk County GO Limited Refunding Bonds, Series D (BAM Insured), 5.00%, 10/15/24 | | 390,000 | 410,464 |
| Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A, MTA Bridges and Tunnels, 4.00%, 11/15/54 | | 1,300,000 | 1,269,859 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New York (Continued) |
|
| Troy Capital Resource Corp. Revenue Bonds, Rensselaer Polytechnic Institutute Project, 4.00%, 9/01/33 | | $100,000 | $ 101,463 |
| Yonkers Economic Development Corp., Educational Revenue Bonds, Charter School Educational Excellence Project, 5.00%, 10/15/49 | | 100,000 | 100,244 |
| | | | 31,694,846 |
| North Carolina – 1.3% |
| North Carolina Capital Facilities Finance Agency Educational Facilities Revenue Refunding Bonds, High Point University, | | | |
| 4.00%, 5/01/23 | | 300,000 | 305,086 |
| 4.00%, 5/01/24 | | 240,000 | 245,943 |
| 5.00%, 5/01/25 | | 240,000 | 254,789 |
| 5.00%, 5/01/26 | | 275,000 | 296,085 |
| North Carolina Medical Care Commission Retirement Facilities Revenue Bonds, The Forest At Duke Project, | | | |
| 4.00%, 9/01/33 | | 180,000 | 182,939 |
| 4.00%, 9/01/34 | | 185,000 | 187,585 |
|
| North Carolina State Medical Care Commission Health Care Facilities Revenue Refunding Bonds, Vidant Health, 5.00%, 6/01/45 | | 500,000 | 529,294 |
| North Carolina State Medical Care Commission Retirement Facilities Revenue Refunding Bonds, First Mortgage, 4.00%, 1/01/25 | | 250,000 | 247,874 |
| North Carolina State Medical Care Commission Retirement Facilities Revenue Refunding Bonds, First Mortgage, United Church Services, Prerefunded, 5.00%, 9/01/24(a) | | 155,000 | 163,343 |
| North Carolina State Medical Care Commission Retirement Facilities Revenue Refunding Bonds, Series A, Sharon Towers, 5.00%, 7/01/49 | | 100,000 | 100,952 |
| | | Par | Value |
| North Carolina (Continued) |
|
| North Carolina State Turnpike Authority Senior Lien Revenue Bonds, Triangle Expressway, 4.00%, 1/01/55 | | $400,000 | $ 386,517 |
| North Carolina State Turnpike Authority Senior Lien Revenue Bonds, Triangle Expressway (AGM Insured), 5.00%, 1/01/49 | | 500,000 | 549,736 |
| North Carolina State Turnpike Authority Senior Lien Revenue Refunding Bonds, 5.00%, 1/01/40 | | 550,000 | 589,724 |
| North Carolina Turnpike Authority Triangle Expressway System Revenue BANS, 5.00%, 2/01/24 | | 200,000 | 207,607 |
| Raleigh Durham Airport Authority Revenue Refunding Bonds, Series A (AMT), 5.00%, 5/01/36 | | 500,000 | 544,550 |
| | | | 4,792,024 |
| North Dakota – 0.5% |
| Cass County Joint Water Resource District GO Unlimited Bonds, Series A, 0.48%, 5/01/24 | | 600,000 | 571,224 |
| University of North Dakota COPS, Infrastructure Energy Improvement, 5.00%, 4/01/48 | | 500,000 | 537,019 |
| Watford City North Dakota State Aid Certificates Indebtedness Revenue Refunding Bonds (AGM Insured), 3.00%, 12/01/23 | | 800,000 | 800,630 |
| | | | 1,908,873 |
| Ohio – 2.1% |
| Akron Bath Copley Joint Township Hospital District Revenue Refunding Bonds, Summa Health Obligated Group Hospital, | | | |
| 5.00%, 11/15/26 | | 350,000 | 376,835 |
| 5.00%, 11/15/27 | | 370,000 | 401,767 |
|
| Allen County Ohio Hospital Facilities Revenue Refunding Bonds, Bon Secours Mercy Health, Inc., 5.00%, 12/01/28 | | 400,000 | 446,476 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Ohio (Continued) |
|
| Buckeye Tobacco Settlement Financing Authority Revenue Refunding Bonds, Senior-Class 2, Series B-2, 5.00%, 6/01/55 | | $900,000 | $875,254 |
| Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue Refunding Bonds, Playhouse Square Foundation Project, 5.50%, 12/01/43 | | 175,000 | 183,947 |
| Cleveland-Cuyahoga County Port Authority Cultural Facility Revenue Bonds, Cleveland Museum Of Natural History Project, | | | |
| 5.00%, 7/01/25 | | 125,000 | 133,510 |
| 5.00%, 7/01/26 | | 125,000 | 135,521 |
| 5.00%, 7/01/27 | | 125,000 | 137,121 |
| 5.00%, 7/01/28 | | 155,000 | 171,526 |
|
| Cleveland-Cuyahoga County Port Authority Euclid Avenue Development Corp., Revenue Refunding Bonds, 5.00%, 8/01/23 | | 370,000 | 381,971 |
| Cleveland-Cuyahoga County Port Authority Financing Senior Tax Allocation Increment Revenue Refunding Bonds, Flats East Bank Project, 4.00%, 12/01/55(e) | | 250,000 | 209,161 |
| Conotton Valley Union Local School District COPS, School Facilities Project (FHLMC Insured), 4.00%, 12/01/42 | | 500,000 | 512,331 |
| Franklin County Convention Facilities Authority Hotel Project Revenue Bonds, Greater Columbus Convention Center, | | | |
| 5.00%, 12/01/34 | | 170,000 | 176,081 |
| 5.00%, 12/01/36 | | 305,000 | 314,628 |
|
| Hamilton County Hospital Facilities Revenue Bonds, Cincinnati Children's Hospital Project, 5.00%, 11/15/41 | | 250,000 | 286,461 |
| Marion County Health Care Facilities Revenue Refunding Bonds, United Church Homes, Inc., 5.12%, 12/01/49 | | 100,000 | 99,925 |
| | | Par | Value |
| Ohio (Continued) |
|
| Miami Valley Career Technology Center GO Unlimited Bonds, 4.00%, 12/01/37 | | $250,000 | $ 262,078 |
| Middleburg Heights Hospital Revenue Refunding Bonds, Southwest General Health Center, 4.00%, 8/01/41 | | 500,000 | 492,450 |
| Ohio State Air Quality Development Authority Revenue Refunding Bonds (AMT), American Electric Power Company Project, 2.10%, 10/01/24(b)(c)(d) | | 500,000 | 484,883 |
| Ohio State Air Quality Development Authority Revenue Refunding Bonds, Ohio Valley Electric Corp., 3.25%, 9/01/29 | | 50,000 | 46,465 |
| Ohio State Higher Educational Facilities Commission Revenue Refunding Bonds, Xavier University 2020 Project, 5.00%, 5/01/35 | | 880,000 | 968,998 |
| Ohio State Higher Educational Facility Commission Revenue Refunding Bonds, Otterbein University 2022 Project, 4.00%, 12/01/46 | | 500,000 | 473,630 |
| Ohio State Hospital Revenue Refunding Bonds, Premier Health Partners Obligated Group, 5.00%, 11/15/26 | | 145,000 | 157,137 |
| United Local School District COPS (BAM Insured), 3.00%, 12/01/23 | | 330,000 | 333,158 |
| | | | 8,061,314 |
| Oklahoma – 1.8% |
| Bryan County School Finance Authority Educational Facilities Lease Revenue Refunding Bonds, Durant Public Schools Project, 4.00%, 12/01/23 | | 620,000 | 635,088 |
| Carter County Public Facilities Authority Educational Facilities Lease Revenue Bonds, 5.00%, 9/01/27 | | 500,000 | 540,613 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Oklahoma (Continued) |
| Kingfisher Special Projects Authority Educational Facilities Lease Revenue Bonds, Kingfisher Public Schools Project, 4.00%, 3/01/24 | | $ 600,000 | $ 615,690 |
| Mcintosh County Educational Facilities Authority Lease Revenue Bonds, Checotah Public Schools Project, 2.00%, 9/01/23 | | 300,000 | 296,665 |
| Muskogee Industrial Trust Educational Lease Revenue Bonds, Muskogee Public Schools Project, 5.00%, 9/01/23 | | 900,000 | 927,504 |
| Oklahoma County Finance Authority Revenue Refunding Bonds, Series A, Epworth Villa Project, 5.88%, 4/01/30 | | 50,000 | 42,500 |
| Oklahoma State Development Finance Authority Revenue Refunding Bonds, Oklahoma City University Project, 5.00%, 8/01/24 | | 590,000 | 611,312 |
| Osage County Industrial Authority Use Tax Revenue BANS, 2.00%, 9/01/23 | | 1,500,000 | 1,480,411 |
| Tulsa County Industrial Authority Educational Facilities Lease Revenue Bonds, Berryhill Public Schools Project, 4.00%, 9/01/26 | | 500,000 | 522,633 |
| Wagoner County School Development Authority Educational Facilities Lease Revenue Bonds, Wagoner Public Schools Project, 4.00%, 9/01/23 | | 1,060,000 | 1,082,568 |
| | | | 6,754,984 |
| Oregon – 1.3% |
| Medford Hospital Facilities Authority Revenue Refunding Bonds, Series A, Asante Projects, 5.00%, 8/15/45 | | 500,000 | 545,132 |
| Multnomah County Hospital Facilities Authority Revenue Refunding Bonds, Adventist Health System, 5.00%, 3/01/25(b)(c)(d) | | 500,000 | 524,138 |
| | | Par | Value |
| Oregon (Continued) |
| Multnomah County Hospital Facilities Authority Revenue Refunding Bonds, Terwilliger Plaza-Parkview Project, Green Bond Series, 0.95%, 6/01/27 | | $ 500,000 | $ 439,435 |
| Multnomah County School District No. 1J Portland GO Unlimited Bonds (School Board Guaranty Program), 5.00%, 6/15/24 | | 250,000 | 263,834 |
| Oregon State Facilities Authority Revenue Refunding Bonds, Series A, Legacy Health Project, 5.00%, 6/01/46 | | 1,000,000 | 1,072,011 |
| Port of Morrow GO Limited Refunding Bonds, Series D, | | | |
| 4.00%, 12/01/26 | | 170,000 | 177,789 |
| 4.00%, 12/01/27 | | 240,000 | 251,693 |
|
| Port of Portland Airport Revenue Refunding Bonds, Portland International Airport, 5.00%, 7/01/40 | | 615,000 | 681,666 |
| Port of Portland Airport Revenue Refunding Bonds, Portland International Airport (AMT), 5.00%, 7/01/25 | | 750,000 | 792,428 |
| Salem Hospital Facility Authority Revenue Refunding Bonds, Capital Manor Project, | | | |
| 5.00%, 5/15/24 | | 110,000 | 113,428 |
| 5.00%, 5/15/27 | | 260,000 | 273,195 |
| | | | 5,134,749 |
| Pennsylvania – 3.7% |
| Allegheny County Sanitary Authority Revenue Bonds, Series B, 4.00%, 6/01/25 | | 100,000 | 104,348 |
| Allentown Neighborhood Improvement Zone Development Authority Tax Revenue Refunding Bonds, Forward Delivery, 5.00%, 5/01/42 | | 250,000 | 268,894 |
| Commonwealth Financing Authority Taxable Revenue Refunding Bonds, Series B-1, 5.00%, 6/01/26 | | 300,000 | 321,781 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Pennsylvania (Continued) |
| Cumberland County Municipal Authority Revenue Bonds, AICUP Financing Program-Messiah College Project, 3.15%, 4/30/24(b)(c)(d) | | $ 500,000 | $ 500,000 |
| Cumberland County Municipal Authority Revenue Refunding Bonds, Asbury Pennsylvania Obligated, 4.50%, 1/01/40(e) | | 185,000 | 172,985 |
| Lancaster County GO Unlimited Refunding Bonds, Series A, 4.00%, 11/01/25 | | 275,000 | 286,379 |
| Laurel Highlands School District GO Limited Refunding Bonds (BAM State Aid Withholding), 4.00%, 2/01/26 | | 350,000 | 365,703 |
| Lehigh County General Purpose Authority Revenue Refunding Bonds, Muhlenberg College Project, (SIFMA Municipal Swap Index Yield + 0.58%), 1.02%, 11/01/24(b)(d) | | 435,000 | 434,363 |
| Luzerne County IDA Revenue Refunding Bonds (AMT), Pennsylvania-American Water Co., Project, 2.45%, 12/03/29(b)(c)(d) | | 750,000 | 728,655 |
| Monroeville Finance Authority Revenue Bonds, 5.00%, 2/15/28 | | 1,000,000 | 1,010,259 |
| Montgomery County IDA Revenue Bonds, Acts Retirement-Life Communities, 5.00%, 11/15/45 | | 1,500,000 | 1,628,739 |
| Neshannock Township School District GO Limited Refunding Bonds, Series B (State Aid Withholding), 2.00%, 9/01/24 | | 190,000 | 186,826 |
| Oil City GO Unlimited Bonds, Series A (AGM Insured), | | | |
| 4.00%, 12/01/23 | | 145,000 | 148,665 |
| 4.00%, 12/01/24 | | 150,000 | 155,244 |
| 4.00%, 12/01/25 | | 185,000 | 193,125 |
| | | Par | Value |
| Pennsylvania (Continued) |
| Pennsylvania State Economic Development Financing Authority UPMC Revenue Bonds, Series A-1, | | | |
| 5.00%, 4/15/24 | | $1,200,000 | $1,257,116 |
| 5.00%, 4/15/25 | | 200,000 | 212,630 |
| 4.00%, 4/15/45 | | 500,000 | 492,393 |
|
| Pennsylvania State Higher Educational Facilities Authority Revenue Refunding Bonds, Thomas Jefferson University, 5.00%, 9/01/39 | | 500,000 | 524,999 |
| Pennsylvania State Housing Finance Agency SFM Revenue Refunding Bonds (AMT), Series 125A, 2.37%, 10/01/25 | | 820,000 | 804,628 |
| Pennsylvania State Turnpike Commission Turnpike Variable Revenue Refunding Bonds, Series B, (SIFMA Municipal Swap Index Yield + 0.70%), 1.14%, 12/01/23(d) | | 500,000 | 500,327 |
| Pequea Valley School District GO Limited Bonds (State Aid Withholding), 2.00%, 5/15/23 | | 175,000 | 174,859 |
| Philadelphia Airport Revenue Refunding Bonds, Series B (AMT), | | | |
| 5.00%, 7/01/30 | | 510,000 | 544,721 |
| 5.00%, 7/01/33 | | 400,000 | 422,297 |
| 5.00%, 7/01/35 | | 155,000 | 163,344 |
|
| Philadelphia Airport Revenue Refunding Bonds, Series C (AMT), 4.00%, 7/01/40 | | 250,000 | 243,272 |
| Philadelphia Authority for Industrial Development Temple University Revenue Refunding Bonds, Series 1-2015, 5.00%, 4/01/33 | | 400,000 | 424,509 |
| Philadelphia School District GO Limited Refunding Bonds, Series C (State Aid Withholding), 5.00%, 9/01/33 | | 500,000 | 554,808 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Pennsylvania (Continued) |
| Southcentral General Authority Revenue Bonds, York College of Pennsylvania Project, | | | |
| 5.00%, 5/01/27 | | $ 300,000 | $ 325,524 |
| 5.00%, 5/01/28 | | 215,000 | 235,625 |
| West Cornwall Township Municipal Authority Healthcare Facilities Revenue Refunding Bonds, Lebanon Valley Brethren Home Project, | | | |
| 4.00%, 11/15/24 | | 115,000 | 118,152 |
| 4.00%, 11/15/25 | | 115,000 | 118,905 |
| 4.00%, 11/15/26 | | 125,000 | 129,508 |
| 4.00%, 11/15/27 | | 130,000 | 134,767 |
| 4.00%, 11/15/28 | | 105,000 | 108,724 |
| | | | 13,997,074 |
| Puerto Rico – 1.2% |
| Puerto Rico Commonwealth Aqueduct & Sewer Authority Senior Lien Revenue Bonds, Series A, 5.25%, 7/01/42 | | 815,000 | 819,849 |
| Puerto Rico Commonwealth Aqueduct & Sewer Authority Senior Lien Revenue Refunding Bonds, Series A, 5.00%, 7/01/30(e) | | 250,000 | 268,431 |
| Puerto Rico Commonwealth Notes, 0.00%, 11/01/43(c)(d) | | 269,868 | 140,331 |
| Puerto Rico Commonwealth Restructured GO Unlimited Bonds, Series A1, | | | |
| 5.25%, 7/01/23 | | 60,564 | 61,294 |
| 5.38%, 7/01/25 | | 160,394 | 165,688 |
| 5.62%, 7/01/27 | | 59,847 | 63,399 |
| 5.63%, 7/01/29 | | 1,058,875 | 1,139,092 |
| 5.75%, 7/01/31 | | 57,185 | 62,454 |
| 4.00%, 7/01/33 | | 54,226 | 50,286 |
| 4.00%, 7/01/35 | | 48,742 | 45,057 |
| 4.00%, 7/01/37 | | 41,833 | 37,586 |
| 4.00%, 7/01/41 | | 56,878 | 51,084 |
| 4.00%, 7/01/46 | | 59,153 | 51,811 |
| Puerto Rico Commonwealth Restructured GO Unlimited CABS, Series A, | | | |
| 0.00%, 7/01/24(f) | | 27,894 | 25,362 |
| 0.00%, 7/01/33(f) | | 69,785 | 39,815 |
| | | Par | Value |
| Puerto Rico (Continued) |
|
| Puerto Rico Electric Power Authority Power Revenue Bonds, Series TT-RSA-1, 5.00%, 7/01/37(h) | | $130,000 | $ 124,150 |
| Puerto Rico Electric Power Authority Power Revenue Refunding Bonds, Series ZZ-RSA-1, 5.25%, 7/01/23(h) | | 175,000 | 168,000 |
| Puerto Rico Sales Tax Financing Corp., Restructured TRB, Series A-1, 4.75%, 7/01/53 | | 527,000 | 533,140 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue CABS, Series A-1, | | | |
| 0.00%, 7/01/27(f) | | 225,000 | 192,175 |
| 0.00%, 7/01/31(f) | | 500,000 | 371,058 |
| 0.00%, 7/01/46(f) | | 875,000 | 245,684 |
| | | | 4,655,746 |
| Rhode Island – 0.2% |
| Providence GO Unlimited Refunding Bonds, Series A, 5.00%, 1/15/25 | | 200,000 | 210,676 |
| Rhode Island Commerce Corp., First Lien Special Facility Revenue Refunding Bonds, Rhode Island Airport Corp., International, 5.00%, 7/01/31 | | 500,000 | 544,092 |
| | | | 754,768 |
| South Carolina – 0.4% |
| Connector 2000 Association, Inc. Toll Road Revenue CABS, Senior Series A-1, | | | |
| 0.00%, 1/01/32(f) | | 511,272 | 251,138 |
| 0.00%, 1/01/42(f) | | 228,148 | 51,576 |
| 0.00%, 7/22/51(f) | | 265,293 | 27,817 |
|
| South Carolina State Jobs EDA Hospital Revenue Refunding Bonds, Prisma Health Obligated Group, 5.00%, 5/01/38 | | 400,000 | 435,675 |
| South Carolina State Jobs EDA Hospital Variable Revenue Bonds, Bon Secours Mercy Health, 5.00%, 10/01/25(b)(c)(d) | | 850,000 | 917,129 |
| | | | 1,683,335 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| South Dakota – 0.2% |
| South Dakota State Board of Regents Housing & Auxiliary Facilities System Revenue Refunding Bonds, | | | |
| 4.00%, 4/01/26 | | $ 375,000 | $ 393,721 |
| 4.00%, 4/01/27 | | 425,000 | 449,219 |
| | | | 842,940 |
| Tennessee – 0.8% |
| Greeneville Health & Educational Facilities Board Revenue Refunding Bonds, Ballad Health Obligation Group, 5.00%, 7/01/31 | | 140,000 | 143,040 |
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Vanderbilt University Medical Center, | | | |
| 5.00%, 7/01/40 | | 400,000 | 427,985 |
| 5.00%, 7/01/46 | | 500,000 | 530,574 |
|
| Metropolitan Government Nashville & Davidson County Health & Educational Facility Board Revenue Refunding Bonds, Trevecca Nazarene University, 3.00%, 10/01/24 | | 320,000 | 315,405 |
| Metropolitan Nashville Airport Authority Subordinate Revenue Bonds, Series B (AMT), 5.00%, 7/01/39 | | 1,000,000 | 1,076,198 |
| Tennergy Corp. Gas Revenue Bonds, Series A, 4.00%, 9/01/28(b)(c)(d) | | 500,000 | 508,292 |
| | | | 3,001,494 |
| Texas – 6.2% |
| Arlington Higher Education Finance Corp. Revenue Bonds, Riverwalk Education Foundation (PSF, Gtd), 5.00%, 8/15/47 | | 500,000 | 557,837 |
| Austin Airport System Revenue Bonds, Series A, 5.00%, 11/15/46 | | 1,380,000 | 1,486,368 |
| Austin Convention Enterprises, Inc., Convention Center Revenue Refunding Bonds, First Tier, 5.00%, 1/01/32 | | 625,000 | 649,829 |
| | | Par | Value |
| Texas (Continued) |
| Board of Managers Joint Guadalupe County-City of Seguin Hospital Mortgage Revenue Refunding Bonds, 5.00%, 12/01/40 | | $ 200,000 | $ 202,583 |
| Central Texas Regional Mobility Authority Revenue Bonds, Series C, 5.00%, 1/01/27 | | 275,000 | 291,108 |
| Central Texas Regional Mobility Authority Senior Lien Revenue Refunding Bonds, Series A, 5.00%, 1/01/49 | | 500,000 | 529,392 |
| Clifton Higher Education Finance Corp. Revenue Bonds, Series A, Idea Public School, 5.00%, 8/15/23 | | 325,000 | 334,743 |
| Dallas Texas Hotel Occupancy Tax Revenue Refunding Bonds, 4.00%, 8/15/30 | | 300,000 | 311,880 |
| Dallas Texas Housing Finance Corp., Estates at Shiloh Revenue Bonds, 1.25%, 7/01/23(b)(c)(d) | | 500,000 | 494,546 |
| Dallas-Fort Worth International Airport Improvement Revenue Bonds, Series B, 5.00%, 11/01/44 | | 350,000 | 354,270 |
| Dallas-Fort Worth International Airport Joint Improvement Revenue Bonds, Series C, 5.00%, 11/01/34 | | 445,000 | 459,219 |
| Dallas-Fort Worth International Airport Joint Revenue Refunding Bonds, Series A (AMT), 5.25%, 11/01/30 | | 1,100,000 | 1,135,552 |
| El Paso Texas Airport Revenue Bonds (AMT), 5.00%, 8/15/27 | | 375,000 | 405,292 |
| Fort Bend Independent School District Variable GO Unlimited Refunding Bonds, Series B (PSF, Gtd), 0.72%, 8/01/26(b)(c)(d) | | 1,000,000 | 907,339 |
| Grand Parkway Transportation Corp., System Toll Revenue Refunding Bonds, Grand Parkway System - First, 4.00%, 10/01/45 | | 265,000 | 262,097 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Texas (Continued) |
| Harris County Cultural Education Facilities Finance Corp., Variable Revenue Bonds, Memorial Hermann Health System, 5.00%, 12/01/24(b)(c)(d) | | $1,000,000 | $1,057,172 |
| Harris County Cultural Educational Facilities Finance Corp., Revenue Refunding Bonds, Texas Children's Hospital, 4.00%, 10/01/38 | | 350,000 | 352,099 |
| Houston Airport System Revenue Bonds, Subseries A (AMT), 5.00%, 7/01/25 | | 500,000 | 528,285 |
| Houston Airport System Revenue Refunding Bonds (AMT), United Airlines, Inc., Improvement Projects, 5.00%, 7/15/27 | | 175,000 | 185,300 |
| Houston Airport System Revenue Refunding Bonds (AMT), United Airlines, Inc., Terminal, 5.00%, 7/01/27 | | 125,000 | 132,326 |
| Houston Airport System Subordinate Revenue Refunding Bonds, Series B, 5.00%, 7/01/26 | | 500,000 | 543,107 |
| Houston Hotel Occupancy Tax & Special Revenue Refunding Bonds, Convention & Entertainment, | | | |
| 4.00%, 9/01/23 | | 185,000 | 189,257 |
| 5.00%, 9/01/36 | | 510,000 | 565,008 |
|
| Lower Colorado River Authority Transmission Contract Revenue Refunding Bonds, LCRA Transmission Services Corp. Project, 5.00%, 5/15/35 | | 250,000 | 276,691 |
| Montgomery County Toll Road Authority Senior Lien Revenue Bonds, 5.00%, 9/15/37 | | 500,000 | 519,881 |
| New Hope Cultural Educational Facilities Finance Corp., Retirement Facilities Revenue Refunding Bonds, Presbyterian Village North Project, 5.25%, 10/01/49 | | 100,000 | 97,443 |
| | | Par | Value |
| Texas (Continued) |
|
| New Hope Cultural Educational Facilities Finance Corp., Retirement Facilities Revenue Refunding Bonds, Westminster Manor Project, 5.00%, 11/01/31 | | $ 250,000 | $ 262,853 |
| North Texas Tollway Authority Revenue Refunding Bonds, Series A, 5.00%, 1/01/26 | | 70,000 | 72,731 |
| Northside Texas Independent School District GO Unlimited Refunding Bonds (PSF, Gtd), 1.60%, 8/01/24(b)(c)(d) | | 345,000 | 337,047 |
| Northside Texas Independent School District Variable GO Unlimited Bonds (PSF, Gtd), 2.75%, 8/01/23(b)(c)(d) | | 1,000,000 | 1,007,386 |
| Odessa Junior College District Consolidated Revenue Bonds (AGM Insured), 4.00%, 7/01/27 | | 435,000 | 461,859 |
| Port Arthur Certificates GO Limited Bonds (BAM Insured), 5.00%, 2/15/27 | | 345,000 | 379,321 |
| Port Beaumont Navigation District Dock & Wharf Facility Revenue Refunding Bonds (AMT), Jefferson Gulf Coast Energy Project, 4.00%, 1/01/50(e) | | 375,000 | 313,695 |
| San Antonio Airport System Subordinate Lien Revenue Refunding Bonds, Series A (AMT), 5.00%, 7/01/30 | | 250,000 | 272,833 |
| San Antonio Water Junior Lien Variable Revenue Bonds, Series A, 2.63%, 5/01/24(b)(d) | | 1,125,000 | 1,124,977 |
| Tarrant County Cultural Educational Facilities Finance Corp., Revenue Refunding Bonds, Texas Health Resources System Obligation, | | | |
| 5.00%, 2/15/34 | | 400,000 | 433,642 |
| 5.00%, 2/15/47 | | 700,000 | 751,860 |
|
| Texas City Industrial Development Corp., Revenue Bonds, Series 2012, NRG Energy Project, 4.12%, 12/01/45 | | 545,000 | 552,512 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Texas (Continued) |
|
| Texas State PFA Lease Revenue Refunding Bonds, 4.00%, 2/01/36 | | $ 250,000 | $ 263,461 |
| Texas State Private Activity Bond Surface Transportation Corp., Revenue Bonds (AMT), Segment 3C Project, 5.00%, 6/30/58 | | 1,000,000 | 1,031,486 |
| Texas State Private Activity Bond Surface Transportation Corp., Senior Lien Revenue Bonds (AMT), Blueridge Transportation, | | | |
| 5.00%, 12/31/45 | | 500,000 | 522,166 |
| 5.00%, 12/31/55 | | 200,000 | 207,842 |
|
| Texas State Private Activity Bond Surface Transportation Corp., Senior Lien Revenue Refunding Bonds, North Tarrant Express, 4.00%, 12/31/38 | | 750,000 | 751,166 |
| Texas State Transportation Commission Central Turnpike System Revenue Refunding Bonds, Series A, 5.00%, 8/15/39 | | 750,000 | 837,674 |
| Texas State Transportation Commission Central Turnpike System Subordinate Revenue Refunding Bonds, Series C, 5.00%, 8/15/42 | | 100,000 | 102,856 |
| Texas State Transportation Commission First Tier Toll Revenue Bonds, State Highway, 5.00%, 8/01/57 | | 100,000 | 104,291 |
| Texas State Transportation Commission First Tier Toll Revenue CABS, 0.00%, 8/01/29(f) | | 480,000 | 360,445 |
| Texas State Water Development Board Revenue Bonds, State Water Implementation Fund, 4.00%, 10/15/38 | | 510,000 | 530,473 |
| | | | 23,511,200 |
| Utah – 0.2% |
| Salt Lake City Airport Revenue Bonds, Series A (AMT), 5.00%, 7/01/47 | | 805,000 | 844,814 |
| | | Par | Value |
| Virginia – 3.8% |
| Botetourt County Residential Care Facility Revenue Refunding Bonds, Series A, Glebe, Inc., 4.75%, 7/01/23 | | $ 120,000 | $ 121,551 |
| Chesapeake Bay Bridge & Tunnel District Revenue Bonds, First Tier General Resolution (AGM Insured), 5.00%, 7/01/41 | | 1,000,000 | 1,057,413 |
| Chesapeake Bay Bridge & Tunnel District Revenue First Tier General Resolution Revenue BANS, 5.00%, 11/01/23 | | 1,000,000 | 1,032,696 |
| Chesapeake Bay Bridge & Tunnel District Revenue First Tier General Resolution Revenue Bonds, 5.00%, 7/01/51 | | 750,000 | 779,822 |
| Chesapeake Hospital Authority Hospital Facilities Revenue Refunding Bonds, Chesapeake Regional Medical Center, 5.00%, 7/01/31 | | 500,000 | 554,113 |
| Chesapeake Transportation System Senior Toll Road Revenue Bonds, Series A, 5.00%, 7/15/47 | | 500,000 | 501,922 |
| Fairfax County EDA Residential Care Facilities Revenue Bonds, Series A, Vinson Hall LLC, Prerefunded, 5.00%, 12/01/23(a) | | 200,000 | 208,356 |
| Fairfax County EDA Residential Care Facilities Revenue Refunding Bonds, Series A, Goodwin House, Inc., 5.00%, 10/01/36 | | 150,000 | 158,057 |
| Fairfax County EDA Revenue Refunding Bonds, Wiehle Avenue Metrorail Station, 5.00%, 8/01/33 | | 1,000,000 | 1,152,092 |
| Fairfax County IDA Health Care Revenue Bonds, Inova Health System, 4.00%, 5/15/42 | | 250,000 | 250,234 |
| Fairfax County IDA Health Care Revenue Refunding Bonds, Inova Health System, 5.00%, 5/15/23(b)(c)(d) | | 500,000 | 514,645 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Virginia (Continued) |
| Fairfax County Water Authority Revenue Refunding Bonds, 5.00%, 4/01/45 | | $ 500,000 | $ 545,787 |
| Hampton Roads Transportation Accountability Commission Senior Lien Revenue Bonds, Series A, Prerefunded, 5.50%, 1/01/28(a) | | 300,000 | 342,964 |
| James City County EDA Residential Care Facilities Variable Revenue Bonds, United Methodist Home, Prerefunded, 6.00%, 6/01/23(a) | | 101,741 | 105,456 |
| Louisa Industrial Development Authority Pollution Control Variable Revenue Bonds, Series 2008A, Virginia Electric, 1.90%, 6/01/23(b)(c)(d) | | 1,000,000 | 992,894 |
| Newport News Economic Development Authority Residential Care Facilities Revenue Refunding Bonds, Lifespire of Virginia, 5.00%, 12/01/38 | | 560,000 | 569,508 |
| University of Virginia Revenue Refunding Bonds, Series A, 5.00%, 4/01/47 | | 500,000 | 545,558 |
| Virginia Small Business Financing Authority Private Activity Revenue Bonds (AMT), Transform 66 P3 Project, 5.00%, 12/31/56 | | 165,000 | 169,262 |
| Virginia State Small Business Financing Authority Senior Lien Revenue Bonds (AMT), Elizabeth River Crossings OpCo, LLC Project, | | | |
| 5.00%, 1/01/27 | | 250,000 | 251,346 |
| 1/01/37 (g) | | 660,000 | 649,237 |
| 5.50%, 1/01/42 | | 1,500,000 | 1,509,277 |
| Virginia State Small Business Financing Authority Senior Lien Revenue Refunding Bonds (AMT), 95 Express Lanes, | | | |
| 5.00%, 7/01/38 | | 645,000 | 691,124 |
| 4.00%, 1/01/40 | | 280,000 | 268,556 |
| 4.00%, 1/01/48 | | 225,000 | 209,664 |
| | | Par | Value |
| Virginia (Continued) |
|
| Virginia State Small Business Financing Authority Senior Lien Revenue Refunding Bonds (AMT), I-495 Hot Lanes, 5.00%, 12/31/47 | | $ 350,000 | $ 373,203 |
| York County EDA PCR Bonds, Series A, Electric & Power, 1.90%, 6/01/23(b)(c)(d) | | 1,000,000 | 992,894 |
| | | | 14,547,631 |
| Washington – 2.9% |
| Central Puget Sound Regional Transit Authority Sales & Use Tax Improvement Revenue Refunding Bonds, Series S-1, Green Bond, Prerefunded, 5.00%, 11/01/25(a) | | 1,000,000 | 1,084,206 |
| Energy Electric Revenue Refunding Bonds, Columbia Generating Station, 5.00%, 7/01/36 | | 1,200,000 | 1,353,527 |
| King County Public Hospital District No. 1 GO Limited Tax Refunding Bonds, Valley Medical Center, 5.00%, 12/01/26 | | 550,000 | 604,793 |
| King County School District No. 210 Federal Way GO Unlimited Bonds (School Board Guaranty Program), 4.00%, 12/01/33 | | 500,000 | 529,363 |
| King County Sewer Revenue Refunding Bonds, 5.00%, 7/01/42 | | 250,000 | 272,741 |
| Port of Seattle Airport Intermediate Lien Revenue Bonds (AMT), | | | |
| 5.00%, 4/01/32 | | 490,000 | 535,960 |
| 5.00%, 4/01/44 | | 500,000 | 537,631 |
|
| Port of Seattle Airport Intermediate Lien Subordinate Revenue Refunding Bonds, Series B (AMT), 5.00%, 8/01/23 | | 600,000 | 604,053 |
| Seattle Housing Authority Revenue Refunding Bonds, Northgate Plaza Project, 1.00%, 6/01/26 | | 500,000 | 465,992 |
| Seattle Municipal Light & Power Revenue Refunding Bonds, 4.00%, 9/01/40 | | 500,000 | 510,349 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Washington (Continued) |
|
| Seattle Municipal Light & Power Variable Revenue Refunding Bonds, Series B, (SIFMA Municipal Swap Index Yield + 0.25%), 0.69%, 11/01/26(b)(d) | | $ 750,000 | $ 742,854 |
| Washington State GO Unlimited Bonds, Series C, | | | |
| 5.00%, 2/01/26 | | 350,000 | 380,681 |
| 5.00%, 2/01/40 | | 2,000,000 | 2,246,114 |
|
| Washington State Health Care Facilities Authority Revenue Bonds, Series A, Providence Health & Services, 4.00%, 10/01/34 | | 500,000 | 500,966 |
| Washington State Health Care Facilities Authority Revenue Refunding Bonds, Series B, Commonspirit Health, 5.00%, 8/01/26(b)(c)(d) | | 615,000 | 658,446 |
| Washington State Higher Educational Facilities Authority Revenue Bonds, Seattle University Project, 4.00%, 5/01/50 | | 250,000 | 243,592 |
| | | | 11,271,268 |
| Wisconsin – 1.8% |
| Clayton Town NANS, Series B, | | | |
| 2.00%, 6/01/24 | | 100,000 | 96,880 |
| 2.00%, 6/01/25 | | 225,000 | 213,879 |
|
| Milwaukee Corp., Purpose GO Unlimited Bonds, Series B3, 4.00%, 4/01/26 | | 1,000,000 | 1,028,345 |
| Park Falls NANS, Series B, 3.00%, 3/01/25 | | 975,000 | 977,779 |
| PFA Education Revenue Bonds, North Carolina Leadership Academy, 5.00%, 6/15/49(e) | | 100,000 | 101,630 |
| PFA Educational Revenue Bonds, Piedmont Community Charter School, | | | |
| 5.00%, 6/15/39 | | 490,000 | 505,353 |
| 5.00%, 6/15/49 | | 150,000 | 152,712 |
|
| PFA Exempt Facilities Revenue Refunding Bonds (AMT), National Gypsum Co., 4.00%, 8/01/35 | | 370,000 | 335,455 |
| | | Par | Value |
| Wisconsin (Continued) |
|
| PFA Hospital Revenue Refunding Bonds, Series A, WakeMed Hospital, 4.00%, 10/01/49 | | $ 500,000 | $ 486,389 |
| PFA Revenue Bonds, Roseman University of Health System, 5.00%, 4/01/50(e) | | 250,000 | 255,394 |
| Wisconsin Center District Appropriation Revenue Bonds, Milwaukee Arena Project, 5.00%, 12/15/27 | | 200,000 | 219,046 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Beloit Health System, Inc., 5.00%, 7/01/23 | | 645,000 | 665,740 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Benevolent Corp., Cedar Community, 5.00%, 6/01/41 | | 250,000 | 251,030 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Series B1, Ascension Health Credit Group, 5.00%, 11/15/39 | | 350,000 | 374,571 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Series B5, 5.00%, 12/03/24(b)(c)(d) | | 1,000,000 | 1,059,588 |
| | | | 6,723,791 |
Total Municipal Bonds
(Cost $348,095,486) | 329,027,350 |
| | | Number
of Shares | |
| Investment Companies – 0.1% |
| iShares National Muni Bond ETF | | 4,205 | 448,757 |
Total Investment Companies
(Cost $477,537) | 448,757 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Short-Term Investments – 13.7% |
| Money Market Fund – 3.4% |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(i) | | 13,049,716 | $13,049,716 |
| Municipal Bonds – 10.3% |
| Arizona Board of Regents Refunding COPS, Series C, University of Arizona, Prerefunded, 5.00%, 6/01/22(a) | | 400,000 | 401,196 |
| Atlantic City Board Of Education GO Unlimited Refunding Bonds (AGM School Board Resource Fund Insured), 4.00%, 4/01/23 | | 300,000 | 305,281 |
| Bartow County Development Authority Revenue Bonds, Georgia Power Company Plant Bowen Project, 1.55%, 8/19/22(b)(c)(d) | | 500,000 | 498,844 |
| Bartow County Development Authority Variable Revenue Refunding Bonds, Georgia Power Company Plant Bowen Project, 2.75%, 3/15/23(b)(c)(d) | | 500,000 | 499,971 |
| Burke County Development Authority PCR Refunding Bonds, Georgia Power Company Plant Vogtle Project, 1.55%, 8/19/22(b)(c)(d) | | 100,000 | 99,769 |
| California State Statewide Communities Development Authority MFH Variable Revenue Bonds, Series W-1 (AMT), Irvine Apartment Communities Project (Wells Fargo Bank LOC), 0.28%, 5/02/22(b)(d)(j) | | 4,000,000 | 4,000,000 |
| Central Plains Energy Gas Project Revenue Bonds, Project No. 3, 5.00%, 9/01/22 | | 500,000 | 505,161 |
| Central Regional Mobility Authority Senior Lien Revenue Refunding Bonds, Series A, Prerefunded, 5.00%, 1/01/23(a) | | 635,000 | 648,454 |
| Chicago GO Unlimited Refunding Bonds, Series A, 5.00%, 1/01/23 | | 400,000 | 406,185 |
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Davie Educational Facilities Revenue Bonds, Series B, Nova Southeastern University Project , Prerefunded, 5.00%, 4/01/23(a) | | 250,000 | $ 256,668 |
| Detroit Downtown Development Authority Tax Allocation Increment Revenue Refunding Bonds, Series A, Catalyst Development Project (AGM Insured), 5.00%, 7/01/22 | | 500,000 | 502,939 |
| Director of the State of Nevada Department of Business & Industry Variable Revenue Bonds (AMT), Brightline Passenger, 0.85%, 1/26/23(b)(c)(d)(e) | | 2,500,000 | 2,477,399 |
| East Vincent GO Unlimited Refunding Bonds, 2.00%, 12/01/22 | | 200,000 | 200,331 |
| Energy Northwest Electric Revenue Refunding Bonds, Columbia Generating Station, 5.00%, 7/01/22 | | 250,000 | 251,511 |
| Hampton Roads Transportation Accountability Commission Revenue BANS, Series A, 5.00%, 7/01/22 | | 750,000 | 754,397 |
| Harris County Cultural Education Facilities Finance Corp., Variable Revenue Bonds, Memorial Hermann Health System, 5.00%, 12/01/22(b)(c)(d) | | 100,000 | 102,005 |
| Harris County HFDC Variable Revenue Refunding Bonds, Methodist Hospital System A-2, 0.30%, 5/02/22(b)(d)(j) | | 545,000 | 545,000 |
| Houston Airport System Revenue Refunding Bonds, Subseries D, 5.00%, 7/01/22 | | 405,000 | 407,308 |
| Houston Hotel Occupancy Tax & Special Revenue Refunding Bonds, Convention & Entertainment, 4.00%, 9/01/22 | | 180,000 | 181,458 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Illinois State Finance Authority Revenue Refunding Bonds, Series C, Presence Health Network, 5.00%, 2/15/23 | | 500,000 | $511,052 |
| Illinois State Finance Authority Revenue Refunding Bonds, Smith Crossing, 4.00%, 10/15/22 | | 165,000 | 165,677 |
| Indiana State Finance Authority Revenue Refunding Bonds, Valparaiso University Project, 5.00%, 10/01/22 | | 265,000 | 268,099 |
| Indianola GO Unlimited Capital Loan Notes, 3.00%, 6/01/22 | | 180,000 | 180,250 |
| Kentucky State Economic Development Finance Authority Health System Revenue Refunding Bonds, Norton Healthcare, Inc., Series B (NATL Insured), 0.00%, 10/01/22(f) | | 500,000 | 495,557 |
| Kentucky State Housing Corp., Revenue Bonds, City View Park Project, 1.16%, 8/01/22(b)(c)(d) | | 1,000,000 | 996,822 |
| Lehigh County IDA Revenue Refunding Bonds, PPL Electric Utilities Corp., Project, 1.80%, 8/15/22(b)(c)(d) | | 330,000 | 329,451 |
| Libertyville GO Unlimited Refunding Bonds, Series A, 3.00%, 12/15/22 | | 235,000 | 236,715 |
| Louisiana State Offshore Terminal Authority Deepwater Port Variable Revenue Bonds, Loop LLC Project, 2.00%, 10/01/22(b)(c)(d) | | 515,000 | 514,612 |
| Louisiana State Public Facilities Authority Revenue Refunding CABS, Loyola University Project, 0.00%, 10/01/22(f) | | 300,000 | 296,080 |
| Maryland State Economic Development Corp., PCR Refunding Bonds, Potomac Electric Power Company, 1.70%, 9/01/22 | | 500,000 | 499,769 |
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Massachusetts State Department of Transportation Metropolitan Highway System Variable Revenue Refunding Bonds, Series A, 5.00%, 1/01/23(b)(c)(d) | | 1,600,000 | $1,626,555 |
| Massachusetts State Development Finance Agency Variable Revenue Refunding Bonds, Partners Healthcare, (SIFMA Municipal Swap Index Yield + 0.00%), 0.94%, 1/26/23(b)(d) | | 500,000 | 499,485 |
| Memphis-Shelby County Airport Authority Revenue Refunding Bonds, Series B (AMT), 5.00%, 7/01/22 | | 400,000 | 402,049 |
| Metropolitan Transportation Authority Revenue BANS, Series A-1, 5.00%, 2/01/23 | | 750,000 | 763,262 |
| Metropolitan Transportation Authority Revenue BANS, Series D1, 5.00%, 9/01/22 | | 965,000 | 974,927 |
| Metropolitan Transportation Authority Transportation Revenue Refunding Bonds, Series B, Green Bonds, Climate, 4.00%, 11/15/22 | | 730,000 | 737,504 |
| Michigan State Finance Authority Revenue Refunding Bonds, Trinity Health Corp., Prerefunded, 5.00%, 6/01/22(a) | | 215,000 | 215,643 |
| Michigan State Finance Authority Variable Revenue Bonds, Bronson Healthcare Group, 3.50%, 11/15/22(b)(c)(d) | | 250,000 | 252,257 |
| Mission Economic Development Corp. Solid Waste Disposal Variable Refunding Revenue (AMT), Waste Management, Inc. Project, 1.00%, 6/01/22(b)(c)(d) | | 600,000 | 599,616 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Mississipi Hospital Equipment & Facilities Authority Adjustable Revenue Refunding Bonds, Baptist Memorial Health Care, 0.20%, 9/01/22(b)(c)(d) | | 1,000,000 | $ 994,374 |
| Missouri State Health & Educational Facilities Authority Educational Facilities Revenue Refunding Bonds, A.T. Still University Health Science, 5.00%, 10/01/22 | | 725,000 | 734,682 |
| New Jersey State Economic Development Authority Private Activity Revenue Bonds (AMT), 5.00%, 7/01/22 | | 1,050,000 | 1,053,880 |
| New Jersey State Transportation Trust Fund Authority Transportation System Revenue Bonds, Series A, 5.25%, 12/15/22 | | 1,000,000 | 1,021,212 |
| New Jersey State Turnpike Authority Revenue Bonds, Series B, Prerefunded, 5.00%, 1/01/23(a) | | 135,000 | 137,905 |
| New York City Housing Development Corp., MFH Revenue Bonds, Series C-2-A, 2.35%, 7/01/22 | | 380,000 | 380,166 |
| New York State Mortgage Agency Homeowner Mortgage Revenue Refunding Bonds, Series 214 (AMT), 2.90%, 10/01/22 | | 140,000 | 140,528 |
| North Carolina Capital Facilities Finance Agency Educational Facilities Revenue Refunding Bonds, High Point University, 3.00%, 5/01/22 | | 270,000 | 270,000 |
| Oil City GO Unlimited Bonds, Series A (AGM Insured), 3.00%, 12/01/22 | | 100,000 | 100,715 |
| Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Revenue Bonds (AMT), Republic Services, Inc. Project, 2.00%, 7/15/22(b)(d) | | 2,700,000 | 2,700,424 |
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Pennsylvania State Housing Finance Agency Special Limited Obligation MFH Revenue Bonds, Norris Homes Phase V, 1.40%, 1/01/23(b)(c)(d) | | 1,000,000 | $ 993,998 |
| Pequea Valley School District GO Limited Bonds (State Aid Withholding), 1.00%, 5/15/22 | | 225,000 | 224,978 |
| Plainfield GO Unlimited BANS, 1.00%, 8/16/22 | | 1,000,000 | 998,447 |
| Princeton Hospital Revenue Refunding Bonds, Princeton Community Hospital Project, 5.00%, 5/01/22 | | 500,000 | 500,000 |
| Saint John The Baptist Parish Revenue Refunding Bonds, Marathon Oil Corp., Project, 2.00%, 4/01/23(b)(d) | | 600,000 | 592,942 |
| Sand Creek Metropolitan District GO Limited Refunding Bonds, Series A (AGM Insured), 4.00%, 12/01/22 | | 125,000 | 126,645 |
| Seattle Municipal Light & Power Variable Revenue Refunding Bonds, (SIFMA Municipal Swap Index Yield + 0.35%), 0.79%, 11/01/22(d) | | 900,000 | 900,143 |
| Spotsylvania County EDA Housing Revenue Bonds, Palmers Creek Apartments Project (FHA 221(D4) GNMA Insured), 0.65%, 8/01/22(c)(d) | | 2,000,000 | 1,991,423 |
| Troy GO Limited BANS, 1.50%, 7/29/22 | | 1,000,000 | 1,000,143 |
| Virginia State Small Business Financing Authority Senior Lien Revenue Bonds (AMT), Elizabeth River Crossings OpCo, LLC Project, 4.50%, 1/01/23 | | 135,000 | 135,619 |
| Washington State Higher Educational Facilities Authority Revenue Bonds, Seattle University Project, 5.00%, 5/01/22 | | 215,000 | 215,000 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Wilkes-Barre Area School District GO Limited Bonds (BAM State Aid Withholding), 5.00%, 4/15/23 | | 200,000 | $ 205,182 |
| Wisconsin State Transportation Revenue Refunding Bonds, Series 1, Prerefunded, 4.50%, 7/01/22(a) | | 400,000 | 402,097 |
| | | | 39,429,762 |
Total Short-Term Investments
(Cost $52,552,854) | 52,479,478 |
Total Investments – 100.0%
(Cost $401,125,877) | 381,955,585 |
| Other Assets less Liabilities – 0.0% | 14,237 |
| NET ASSETS – 100.0% | $381,969,822 |
| Percentages shown are based on Net Assets. |
| |
| (a) | Maturity date represents the prerefunded date. | | |
| (b) | Maturity date represents the puttable date. | | |
| (c) | These securities are remarketed by an agent, and the interest rate is determined by general market conditions and supply and demand. | | |
| (d) | Variable rate security. Rate as of April 30, 2022 is disclosed. | | |
| (e) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. | | |
| (f) | Zero coupon bond. | | |
| (g) | When-Issued Security. Coupon rate was not yet in effect at April 30, 2022. | | |
| (h) | Issuer has defaulted on terms of debt obligation. Income is not being accrued. | | |
| (i) | 7-day current yield as of April 30, 2022 is disclosed. | | |
| (j) | Rate is determined by a Remarketing Agent which, in its judgment, on the basis of prevailing financial markets, will be the lowest interest rate necessary to enable the remarketing agent to sell the bonds at a price equal to 100% of the principal amount. | | |
| Abbreviations: | |
| AGM | Assured Guarantee Municipal Corporation |
| AMBAC | American Municipal Bond Assurance Corporation |
| AMT | Alternative Minimum Tax |
| BAM | Build America Mutual |
| BANS | Bond Anticipation Notes |
| CABS | Capital Appreciation Bonds |
| COPS | Certificates of Participation |
| EDA | Economic Development Authority |
| ETF | Exchange-Traded Fund |
| FHA | Federal Housing Administration |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| GARVEE | Grant Anticipation Revenue Vehicle |
| GNMA | Government National Mortgage Association |
| GO | Government Obligation |
| Gtd | Guaranteed |
| HFA | Housing Finance Authority |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| HFDC | Health Facility Development Corporation |
| IBC | Insured Bond Certificates |
| IDA | Industrial Development Authority |
| LLC | Limited Liability Company |
| LOC | Letter of Credit |
| MFH | Multifamily Housing |
| NATL | National Public Finance Guarantee Corporation |
| PCR | Pollution Control Revenue |
| PFA | Public Finance Authority |
| PSF | Permanent School Fund |
| SFM | Single Family Mortgage |
| SIFMA | Securities Industry and Financial Markets Association |
| SOFR | United States Secured Overnight Financing Rate |
| SonyMA | State of New York Mortgage Agency |
| TCRS | Transferable Custodial Receipts |
| TRB | Tax Revenue Bonds |
| Municipal Issue Type (%)(a),(b) | |
| Revenue Bonds | 81.0 |
| General Obligation Unlimited Bonds | 9.3 |
| General Obligation Limited Bonds | 2.8 |
| Certificates of Participation | 1.3 |
| Revenue Notes | 0.9 |
| Tax Allocation Bonds | 0.3 |
| General Obligation Limited Notes | 0.3 |
| General Obligation Unlimited Notes | 0.3 |
| Special Assessment Bonds | 0.2 |
| Special Tax Bonds | 0.1 |
| Total | 96.5 |
| (a)Percentages shown are based on Net Assets. |
| (b)Excludes Investment Companies, Short-Term Money Market Fund Investments and Other. |
| Sector Diversification (%)(a) | |
| General | 15.7 |
| Medical | 14.1 |
| Transportation | 11.3 |
| General Obligation | 9.4 |
| Airport | 7.4 |
| Higher Education | 6.4 |
| Development | 5.7 |
| All other sectors less than 5% | 30.0 |
| Total | 100.0 |
| (a)Percentages shown are based on Net Assets. |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Municipal Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Municipal Bonds | $ — | $329,027,350 | $— | $329,027,350 |
| Investment Companies | 448,757 | — | — | 448,757 |
| Short-Term Investments | 13,049,716 | 39,429,762 | — | 52,479,478 |
| Total Investments | $13,498,473 | $368,457,112 | $— | $381,955,585 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Defensive Bond Fund
| | | Par | Value |
| Asset-Backed Securities – 35.9% |
| Automobile – 8.4% |
| American Credit Acceptance Receivables Trust, | | | |
| Series 2021-4, Class B, 0.86%, 2/13/26(a) | | $ 81,000 | $ 78,465 |
| Series 2022-1, Class B, 1.68%, 9/14/26(a) | | 189,000 | 182,040 |
| Series 2021-4, Class C, 1.32%, 2/14/28(a) | | 296,000 | 281,716 |
| Series 2022-1, Class C, 2.12%, 3/13/28(a) | | 389,000 | 370,510 |
|
| AmeriCredit Automobile Receivables Trust, Series 2021-3, Class A3, 0.76%, 8/18/26 | | 189,000 | 183,576 |
| BMW Vehicle Lease Trust, Series 2022-1, Class A4, 1.23%, 5/27/25 | | 255,000 | 243,967 |
| CarMax Auto Owner Trust, Series 2022-1, Class A3, 1.47%, 12/15/26 | | 519,000 | 497,995 |
| Chesapeake Funding II LLC, Series 2020-1A, Class C, 2.14%, 8/15/32(a) | | 159,000 | 157,036 |
| Drive Auto Receivables Trust, | | | |
| Series 2021-3, Class B, 1.11%, 5/15/26 | | 625,000 | 608,574 |
| Series 2021-3, Class C, 1.47%, 1/15/27 | | 625,000 | 594,335 |
| Series 2021-2, Class C, 0.87%, 10/15/27 | | 417,000 | 399,027 |
| DT Auto Owner Trust, | | | |
| Series 2021-3A, Class B, 0.58%, 11/17/25(a) | | 170,000 | 164,294 |
| Series 2021-4A, Class B, 1.02%, 5/15/26(a) | | 116,000 | 110,522 |
| Series 2021-3A, Class C, 0.87%, 5/17/27(a) | | 149,000 | 140,934 |
| Series 2021-4A, Class C, 1.50%, 9/15/27(a) | | 116,000 | 109,585 |
| Series 2022-1A, Class C, 2.96%, 11/15/27(a) | | 162,000 | 157,508 |
|
| Enterprise Fleet Financing LLC, Series 2021-3, Class A2, 0.77%, 8/20/27(a) | | 488,000 | 471,389 |
| Exeter Automobile Receivables Trust, | | | |
| Series 2021-4A, Class B, 1.05%, 5/15/26 | | 367,000 | 357,588 |
| Series 2021-4A, Class C, 1.46%, 10/15/27 | | 356,000 | 337,260 |
| | | Par | Value |
| Automobile (Continued) |
| Flagship Credit Auto Trust, | | | |
| Series 2021-4, Class B, 1.49%, 2/15/27(a) | | $ 73,000 | $ 69,105 |
| Series 2021-2, Class C, 1.27%, 6/15/27(a) | | 150,000 | 140,186 |
| Ford Credit Auto Lease Trust, | | | |
| Series 2021-B, Class B, 0.66%, 1/15/25 | | 178,000 | 170,096 |
| Series 2021-B, Class C, 0.90%, 5/15/26 | | 176,000 | 167,193 |
|
| Ford Credit Auto Owner Trust, Series 2022-A, Class A3, 1.29%, 6/15/26 | | 279,000 | 269,529 |
| GM Financial Consumer Automobile Receivables Trust, | | | |
| Series 2020-3, Class C, 1.37%, 1/16/26 | | 50,000 | 48,341 |
| Series 2022-1, Class A3, 1.26%, 11/16/26 | | 244,000 | 234,328 |
|
| Hertz Vehicle Financing LLC, Series 2021-1A, Class A, 1.21%, 12/26/25(a) | | 626,000 | 588,038 |
| Honda Auto Receivables Owner Trust, Series 2021-4, Class A3, 0.88%, 1/21/26 | | 379,000 | 365,796 |
| Hyundai Auto Lease Securitization Trust, Series 2022-A, Class A4, 1.32%, 12/15/25(a) | | 300,000 | 287,969 |
| Hyundai Auto Receivables Trust, Series 2021-C, Class A3, 0.74%, 5/15/26 | | 250,000 | 239,115 |
| Prestige Auto Receivables Trust, | | | |
| Series 2021-1A, Class B, 1.19%, 4/15/26(a) | | 323,000 | 307,612 |
| Series 2021-1A, Class C, 1.53%, 2/15/28(a) | | 116,000 | 107,812 |
|
| Santander Drive Auto Receivables Trust, Series 2021-4, Class C, 1.26%, 2/16/27 | | 518,000 | 493,755 |
| Santander Retail Auto Lease Trust, | | | |
| Series 2022-A, Class A3, 1.34%, 7/21/25(a) | | 262,000 | 252,161 |
| Series 2022-A, Class A4, 1.42%, 1/20/26(a) | | 157,000 | 149,643 |
| Series 2022-A, Class B, 1.61%, 1/20/26(a) | | 86,000 | 81,901 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Automobile (Continued) |
|
| Volkswagen Auto Loan Enhanced Trust, Series 2021-1, Class A3, 1.02%, 6/22/26 | | $449,000 | $ 432,891 |
| Westlake Automobile Receivables Trust, | | | |
| Series 2021-1A, Class C, 0.95%, 3/16/26(a) | | 272,000 | 263,603 |
| Series 2021-2A, Class C, 0.89%, 7/15/26(a) | | 406,000 | 386,942 |
| Series 2021-3A, Class B, 1.29%, 1/15/27(a) | | 599,000 | 577,839 |
| Series 2021-3A, Class C, 1.58%, 1/15/27(a) | | 598,000 | 575,329 |
| Series 2022-1A, Class C, 3.11%, 3/15/27(a) | | 448,000 | 436,225 |
|
| World Omni Auto Receivables Trust, Series 2020-C, Class C, 1.39%, 5/17/27 | | 50,000 | 47,447 |
| | | | 12,139,177 |
| Other – 27.5% |
| ABPCI Direct Lending Fund ABS I Ltd., Series 2020-1A, Class B, 4.94%, 12/20/30(a)(b) | | 891,000 | 887,675 |
| ABPCI Direct Lending Fund ABS II LLC, | | | |
| Series 2022-2A, Class A1, (3M CME Term SOFR + 2.10%, 2.10% Floor), 2.37%, 3/01/32(a)(b)(c)(d) | | 224,000 | 224,000 |
| Series 2022-2A, Class C, 8.24%, 3/01/32(a)(b)(c) | | 935,000 | 925,650 |
|
| ABPCI Direct Lending Fund CLO II LLC, Series 2017-1A, Class ER, (3M USD LIBOR + 7.60%, 7.60% Floor), 8.66%, 4/20/32(a)(d) | | 746,000 | 727,504 |
| ABPCI Direct Lending Fund CLO X L.P., Series 2020-10A, Class A1A, (3M USD LIBOR + 1.95%, 1.95% Floor), 3.01%, 1/20/32(a)(d) | | 250,000 | 249,642 |
| ABPCI Direct Lending Fund IX LLC, Series 2020-9A, Class A1R, (3M USD LIBOR + 1.40%, 1.40% Floor), 2.63%, 11/18/31(a)(d) | | 378,000 | 373,616 |
| | | Par | Value |
| Other (Continued) |
|
| Blackrock DLF VIII-L CLO Trust, Series 2021-1A, Class A, (3M USD LIBOR + 1.35%, 1.35% Floor), 2.39%, 4/17/32(a)(d) | | $ 79,926 | $ 79,907 |
| Blackrock Mount Adams CLO IX L.P., Series 2021-9A, Class A1, (3M USD LIBOR + 1.37%, 1.37% Floor), 2.30%, 9/22/31(a)(d) | | 259,000 | 251,286 |
| CARS-DB4 L.P., Series 2020-1A, Class A1, 2.69%, 2/15/50(a) | | 145,202 | 140,618 |
| Cerberus Loan Funding XXIX L.P., Series 2020-2A, Class A, (3M USD LIBOR + 1.90%, 1.90% Floor), 2.94%, 10/15/32(a)(d) | | 939,000 | 947,611 |
| Cerberus Loan Funding XXV L.P., Series 2018-4RA, Class A1TR, (3M USD LIBOR + 1.53%, 1.53% Floor), 2.57%, 10/15/30(a)(d) | | 797,000 | 793,005 |
| Cerberus Loan Funding XXVI L.P., Series 2019-1A, Class AR, (3M USD LIBOR + 1.50%, 1.50% Floor), 2.54%, 4/15/31(a)(d) | | 250,000 | 248,371 |
| Cerberus Loan Funding XXVIII L.P., | | | |
| Series 2020-1A, Class A, (3M USD LIBOR + 1.85%, 1.85% Floor), 2.89%, 10/15/31(a)(d) | | 825,000 | 829,182 |
| Series 2020-1A, Class D, (3M USD LIBOR + 5.30%, 5.30% Floor), 6.35%, 10/15/31(a)(d) | | 764,000 | 766,180 |
|
| Cerberus Loan Funding XXXI L.P., Series 2021-1A, Class A, (3M USD LIBOR + 1.50%, 1.50% Floor), 2.54%, 4/15/32(a)(d) | | 389,000 | 387,087 |
| Cerberus Loan Funding XXXIV L.P., Series 2021-4A, Class A, (3M USD LIBOR + 1.50%, 1.50% Floor), 2.54%, 8/13/33(a)(d) | | 165,342 | 165,355 |
| Coinstar Funding LLC, Series 2017-1A, Class A2, 5.22%, 4/25/47(a) | | 881,600 | 876,419 |
| Cologix Data Centers U.S. Issuer LLC, Series 2021-1A, Class A2, 3.30%, 12/26/51(a) | | 412,000 | 389,296 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Other (Continued) |
| Conn's Receivables Funding LLC, | | | |
| Series 2020-A, Class B, 4.27%, 6/16/25(a) | | $ 30,556 | $ 30,539 |
| Series 2021-A, Class B, 2.87%, 5/15/26(a) | | 381,000 | 370,244 |
| Dell Equipment Finance Trust, | | | |
| Series 2020-2, Class D, 1.92%, 3/23/26(a) | | 255,000 | 251,761 |
| Series 2021-2, Class C, 0.94%, 12/22/26(a) | | 104,000 | 99,430 |
|
| Diamond Infrastructure Funding LLC, Series 2021-1A, Class C, 3.48%, 4/15/49(a) | | 104,000 | 96,421 |
| Diamond Issuer, Series 2021-1A, Class C, 3.79%, 11/20/51(a) | | 282,000 | 259,861 |
| Ellington CLO IV Ltd., Series 2019-4A, Class AR, (3M USD LIBOR + 1.58%, 1.58% Floor), 2.62%, 4/15/29(a)(d) | | 186,942 | 187,221 |
| Elm Trust, | | | |
| Series 2020-3A, Class A2, 2.95%, 8/20/29(a) | | 134,000 | 129,705 |
| Series 2020-3A, Class B, 4.48%, 8/20/29(a) | | 332,000 | 318,940 |
| Series 2020-4A, Class A2, 2.29%, 10/20/29(a) | | 113,000 | 107,279 |
| Series 2020-4A, Class B, 3.87%, 10/20/29(a) | | 338,000 | 320,489 |
|
| FCI Funding, Series 2021-1A, Class A, 1.13%, 4/15/33(a) | | 106,602 | 105,542 |
| Finance of America HECM Buyout, Series 2020-HB2, Class A, 1.71%, 7/25/30(a) | | 437,653 | 432,021 |
| Fortress Credit Opportunities IX CLO Ltd., Series 2017-9A, Class A1TR, (3M USD LIBOR + 1.55%, 1.55% Floor), 2.59%, 10/15/33(a)(d) | | 954,000 | 955,402 |
| Fortress Credit Opportunities XI CLO Ltd., Series 2018-11A, Class A1T, (3M USD LIBOR + 1.30%), 2.34%, 4/15/31(a)(d) | | 373,000 | 369,084 |
| | | Par | Value |
| Other (Continued) |
|
| Fortress Credit Opportunities XVII CLO Ltd., Series 2022-17A, Class A, (3M CME Term SOFR + 1.37%, 1.37% Floor), 1.59%, 1/15/30(a)(d) | | $527,000 | $523,112 |
| Golub Capital Partners ABS Funding Ltd., | | | |
| Series 2020-1A, Class A2, 3.21%, 1/22/29(a) | | 769,000 | 732,364 |
| Series 2020-1A, Class B, 4.50%, 1/22/29(a) | | 476,000 | 455,934 |
| Series 2021-1A, Class A2, 2.77%, 4/20/29(a) | | 161,000 | 152,161 |
| Series 2021-1A, Class B, 3.82%, 4/20/29(a) | | 382,000 | 355,868 |
| Series 2021-2A, Class A, 2.94%, 10/19/29(a) | | 796,000 | 745,732 |
| Series 2021-2A, Class B, 3.99%, 10/19/29(a) | | 926,000 | 853,983 |
|
| Golub Capital Partners CLO 36m Ltd., Series 2018-36A, Class A, (3M USD LIBOR + 1.30%), 1.62%, 2/05/31(a)(d) | | 562,000 | 555,850 |
| Golub Capital Partners CLO Ltd., | | | |
| Series 2018-38A, Class C, (3M USD LIBOR + 2.80%, 2.80% Floor), 3.86%, 7/20/30(a)(d) | | 507,000 | 506,996 |
| Series 2019-42A, Class A2, (3M USD LIBOR + 2.00%, 2.00% Floor), 3.06%, 4/20/31(a)(d) | | 472,000 | 470,902 |
|
| Gracie Point International Funding, Series 2021-1A, Class A, (1M USD LIBOR + 0.75%), 1.55%, 11/01/23(a)(d) | | 402,936 | 401,933 |
| HPEFS Equipment Trust, | | | |
| Series 2022-1A, Class A3, 1.38%, 5/21/29(a) | | 551,000 | 532,807 |
| Series 2022-1A, Class B, 1.79%, 5/21/29(a) | | 226,000 | 216,465 |
| Series 2022-1A, Class C, 1.96%, 5/21/29(a) | | 150,000 | 143,155 |
|
| Ivy Hill Middle Market Credit Fund XVIII Ltd., Series 18A, Class E, (3M USD LIBOR + 7.75%, 7.75% Floor), 8.89%, 4/22/33(a)(d) | | 970,000 | 932,974 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Other (Continued) |
| Lake Shore MM CLO III LLC, | | | |
| Series 2019-2A, Class A1R, (3M USD LIBOR + 1.48%, 1.48% Floor), 2.52%, 10/17/31(a)(d) | | $202,000 | $200,117 |
| Series 2019-2A, Class A2R, 2.53%, 10/17/31(a) | | 100,000 | 99,826 |
|
| Lake Shore MM CLO IV Ltd., Series 2021-1A, Class X, (3M USD LIBOR + 1.18%, 1.18% Floor), 1.31%, 10/15/33(a)(d) | | 135,333 | 135,211 |
| Legal Fee Funding LLC, Series 2006-1A, Class A, 8.00%, 7/20/36(a) | | 49,743 | 48,244 |
| MCF CLO IX Ltd., Series 2019-1A, Class A1R, (3M CME Term SOFR + 1.50%, 1.50% Floor), 2.35%, 7/17/31(a)(d) | | 971,000 | 970,845 |
| Monroe Capital ABS Funding Ltd., | | | |
| Series 2021-1A, Class A2, 2.82%, 4/22/31(a)(b) | | 403,000 | 376,508 |
| Series 2021-1A, Class B, 3.91%, 4/22/31(a)(b) | | 221,000 | 206,523 |
|
| NRZ Advance Receivables Trust, Series 2020-T2, Class AT2, 1.48%, 9/15/53(a) | | 930,000 | 900,538 |
| Oasis Securitization Funding LLC, Series 2021-1A, Class A, 2.58%, 2/15/33(a) | | 98,452 | 97,987 |
| Oportun Funding XIV LLC, Series 2021-A, Class A, 1.21%, 3/08/28(a) | | 143,000 | 138,730 |
| Oportun Issuance Trust, | | | |
| Series 2021-B, Class A, 1.47%, 5/08/31(a) | | 230,000 | 215,649 |
| Series 2021-C, Class A, 2.18%, 10/08/31(a) | | 803,000 | 726,864 |
|
| Owl Rock CLO III Ltd., Series 2020-3A, Class A1L, (3M USD LIBOR + 1.80%), 2.86%, 4/20/32(a)(d) | | 400,000 | 403,397 |
| Owl Rock CLO VI Ltd., Series 2021-6A, Class A, (3M USD LIBOR + 1.45%, 1.45% Floor), 2.38%, 6/21/32(a)(d) | | 915,000 | 913,254 |
| | | Par | Value |
| Other (Continued) |
|
| Owl Rock Technology Financing LLC, Series 2020-1A, Class A, (3M USD LIBOR + 2.95%, 2.95% Floor), 3.08%, 1/15/31(a)(d) | | $788,000 | $788,660 |
| Parliament CLO II Ltd., Series 2021-2A, Class A, (3M USD LIBOR + 1.35%, 1.35% Floor), 1.83%, 8/20/32(a)(d) | | 334,000 | 332,188 |
| Parliament Funding II Ltd., Series 2020-1A, Class AR, (3M USD LIBOR + 1.25%, 1.25% Floor), 2.31%, 10/20/31(a)(d) | | 349,000 | 347,318 |
| Pawneee Equipment Receivables LLC, Series 2021-1, Class A2, 1.10%, 7/15/27(a) | | 177,000 | 170,610 |
| PFS Financing Corp., | | | |
| Series 2020-E, Class B, 1.57%, 10/15/25(a) | | 747,000 | 725,298 |
| Series 2020-E, Class A, 1.00%, 10/15/25(a) | | 134,000 | 129,358 |
| Series 2020-G, Class A, 0.97%, 2/15/26(a) | | 531,000 | 505,937 |
| Series 2020-G, Class B, 1.57%, 2/15/26(a) | | 100,000 | 95,873 |
| Series 2021-A, Class A, 0.71%, 4/15/26(a) | | 367,000 | 346,112 |
| Series 2021-A, Class B, 0.96%, 4/15/26(a) | | 100,000 | 94,275 |
| Series 2021-B, Class A, 0.77%, 8/15/26(a) | | 317,000 | 295,901 |
| Series 2021-B, Class B, 1.09%, 8/15/26(a) | | 101,000 | 94,499 |
| Series 2022-A, Class A, 2.47%, 2/15/27(a) | | 899,000 | 861,527 |
| PRET LLC, | | | |
| Series 2021-NPL6, Class A1, (Step to 5.49% on 12/25/24), 2.49%, 7/25/51(a)(e) | | 312,347 | 299,123 |
| Series 2021-NPL5, Class A1, (Step to 5.49% on 11/25/24), 2.49%, 10/25/51(a)(e) | | 906,601 | 873,300 |
| Pretium Mortgage Credit Partners I LLC, | | | |
| Series 2021-NPL2, Class A1, (Step to 3.28% on 7/27/24), 1.99%, 6/27/60(a)(e) | | 404,280 | 384,328 |
| Series 2021-NPL4, Class A1, (Step to 2.83% on 11/27/24), 2.36%, 10/27/60(a)(e) | | 832,140 | 792,677 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Other (Continued) |
|
| SpringCastle America Funding LLC, Series 2020-AA, Class A, 1.97%, 9/25/37(a) | | $ 397,686 | $ 379,144 |
| Telos CLO Ltd., Series 2014-5A, Class A1R, (3M USD LIBOR + 0.95%, 0.95% Floor), 1.99%, 4/17/28(a)(d) | | 7,047 | 7,040 |
| Towd Point Mortgage Trust, Series 2018-2, Class A1, 3.25%, 3/25/58(a) | | 289,287 | 287,497 |
| TVEST LLC, Series 2020-A, Class A, 4.50%, 7/15/32(a) | | 100,636 | 100,430 |
| Vantage Data Centers Issuer LLC, Series 2020-1A, Class A2, 1.65%, 9/15/45(a) | | 140,000 | 128,242 |
| VCAT LLC, | | | |
| Series 2021-NPL1, Class A1, (Step to 5.29% on 1/25/24), 2.29%, 12/26/50(a)(e) | | 78,186 | 75,764 |
| Series 2021-NPL2, Class A1, (Step to 5.12% on 3/26/24), 2.12%, 3/27/51(a)(e) | | 287,338 | 276,775 |
| VCP CLO II Ltd., | | | |
| Series 2021-2A, Class E, (3M USD LIBOR + 8.41%), 9.46%, 4/15/31(a)(b)(d) | | 1,119,000 | 1,110,330 |
| Series 2021-2A, Class A1, (3M USD LIBOR + 1.67%), 2.71%, 4/15/31(a)(b)(d) | | 817,000 | 816,424 |
| VCP RRL ABS I Ltd., | | | |
| Series 2021-1A, Class A, 2.15%, 10/20/31(a)(b) | | 376,712 | 357,440 |
| Series 2021-1A, Class B, 2.85%, 10/20/31(a)(b) | | 336,784 | 314,416 |
|
| VOLT C LLC, Series 2021-NPL9, Class A1, (Step to 4.99% on 5/25/24), 1.99%, 5/25/51(a)(e) | | 276,570 | 263,873 |
| VOLT XCIV LLC, Series 2021-NPL3, Class A1, (Step to 5.24% on 2/25/24), 2.24%, 2/27/51(a)(e) | | 344,688 | 329,248 |
| VOLT XCV LLC, Series 2021-NPL4, Class A1, (Step to 5.24% on 3/25/24), 2.24%, 3/27/51(a)(e) | | 363,945 | 349,148 |
| | | Par | Value |
| Other (Continued) |
|
| Wellfleet CLO Ltd., Series 2016-1A, Class AR, (3M USD LIBOR + 0.91%), 1.97%, 4/20/28(a)(d) | | $157,744 | $ 157,272 |
| Woodmont Trust, | | | |
| Series 2019-6A, Class A1R, (3M USD LIBOR + 1.48%, 1.48% Floor), 1.60%, 7/15/31(a)(d) | | 526,000 | 525,695 |
| Series 2019-6A, Class A1R2, (3M USD LIBOR + 1.48%, 1.48% Floor), 1.60%, 7/15/31(a)(d) | | 250,000 | 249,855 |
|
| Zais CLO 7 Ltd., Series 2017-2A, Class A, (3M USD LIBOR + 1.29%), 2.33%, 4/15/30(a)(d) | | 311,757 | 310,972 |
| | | | 39,486,821 |
| Student Loan – 0.0%(f) |
| SMB Private Education Loan Trust 2021-A, Series 2021-A, Class A1, (1M USD LIBOR + 0.50%), 1.05%, 1/15/53(a)(d) | | 11,274 | 11,272 |
Total Asset-Backed Securities
(Cost $53,018,744) | 51,637,270 |
| | | Number
of Shares | |
| Common Stocks – 0.9% |
| Real Estate – 0.3% |
| Copper Property CTL Pass Through Trust(c)* | | 25,536 | 402,192 |
| Retail – 0.0%(f) |
| J.C. Penney Earnout(c) | | 3,405 | 40,009 |
| Telecommunications – 0.1% |
| Windstream Corp.(c) | | 3,347 | 49,368 |
| Transportation – 0.5% |
| PHI Group, Inc. | | 44,387 | 710,192 |
Total Common Stocks
(Cost $894,480) | 1,201,761 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Corporate Bonds – 2.4% |
| Coal – 0.3% |
| Natural Resource Partners L.P./NRP Finance Corp., 9.12%, 6/30/25(a) | | $391,000 | $ 397,843 |
| Diversified Financial Services – 0.9% |
| Midcap Financial Issuer Trust, 6.50%, 5/01/28(a) | | 761,000 | 656,362 |
| OWL Rock Core Income Corp., 4.70%, 2/08/27(a) | | 660,000 | 622,460 |
| | | | 1,278,822 |
| Food Service – 0.1% |
| Aramark Services, Inc., 6.38%, 5/01/25(a) | | 159,000 | 161,921 |
| Housewares – 0.2% |
| CD&R Smokey Buyer, Inc., 6.75%, 7/15/25(a) | | 315,000 | 320,591 |
| Investment Management Companies – 0.3% |
| Golub Capital BDC, Inc., 3.38%, 4/15/24 | | 513,000 | 503,377 |
| Leisure Time – 0.1% |
| Royal Caribbean Cruises Ltd., 11.50%, 6/01/25(a) | | 164,000 | 178,301 |
| Telecommunications – 0.5% |
| Consolidated Communications, Inc., 6.50%, 10/01/28(a) | | 381,000 | 331,982 |
| Frontier Communications Holdings LLC, | | | |
| 5.88%, 10/15/27(a) | | 137,000 | 131,177 |
| 6.00%, 1/15/30(a)(g) | | 214,000 | 186,199 |
| | | | 649,358 |
Total Corporate Bonds
(Cost $3,668,066) | 3,490,213 |
|
| Foreign Issuer Bonds – 0.5% |
| Canada – 0.4% |
| Air Canada Pass Through Trust, Series 2020-1, Class C, 10.50%, 7/15/26(a) | | 470,000 | 528,781 |
| Ireland – 0.1% |
| Cimpress PLC, 7.00%, 6/15/26(a) | | 175,000 | 163,187 |
Total Foreign Issuer Bonds
(Cost $607,231) | 691,968 |
| | | Par | Value |
|
| Mortgage-Backed Securities – 3.9% |
| Commercial Mortgage-Backed Securities – 1.3% |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-VOLT, Class E, (1M USD LIBOR + 2.00%, 2.00% Floor), 2.56%, 9/15/36(a)(d) | | $242,000 | $ 232,784 |
| Series 2021-VOLT, Class F, (1M USD LIBOR + 2.40%, 2.40% Floor), 2.96%, 9/15/36(a)(d) | | 370,000 | 355,621 |
|
| Hawaii Hotel Trust, Series 2019-MAUI, Class C, (1M USD LIBOR + 1.65%, 1.65% Floor), 2.20%, 5/15/38(a)(d) | | $616,000 | 602,115 |
| JPMBB Commercial Mortgage Securities Trust, Series 2015-C30, Class ASB, 3.56%, 7/15/48 | | 344,031 | 343,883 |
| LoanCore Issuer Ltd., Series 2021-CRE4, Class A, (30D Average SOFR + 0.91%, 0.80% Floor), 1.18%, 7/15/35(a)(d) | | 157,490 | 155,786 |
| VCC Trust, Series 2020-MC1, Class A, 4.50%, 6/25/45(a) | | 17,668 | 17,668 |
| VMC Finance LLC, Series 2021-HT1, Class A, (1M USD LIBOR + 1.65%, 1.65% Floor), 2.20%, 1/18/37(a)(d) | | 227,131 | 225,764 |
| | | | 1,933,621 |
| Federal Home Loan Mortgage Corporation – 0.1% |
| Real Estate Mortgage Investment Conduits, Series 4162, Class P, 3.00%, 2/15/33 | | 210,613 | 209,553 |
| Federal National Mortgage Association – 0.2% |
| Interest Strip, Series 284, Class 1, 0.00%, 7/25/27(h) | | 83,813 | 77,727 |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2014-3, Class AM, 2.50%, 1/25/32 | | 73,674 | 73,704 |
| Series 2012-144, Class PD, 3.50%, 4/25/42 | | 119,924 | 118,716 |
| | | | 270,147 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Government National Mortgage Association – 0.4% |
| Series 2012-150, Class IO, 0.54%, 11/16/52(i) | | $1,438,187 | $ 21,926 |
| Series 2015-108, Class IO, 0.35%, 10/16/56(i) | | 59,799 | 1,949 |
| Series 2015-7, Class IO, 0.55%, 1/16/57(i) | | 1,959,940 | 52,798 |
| Series 2020-42, Class IO, 0.93%, 3/16/62(i) | | 1,472,401 | 99,886 |
| Series 2020-43, Class IO, 1.27%, 11/16/61(i) | | 988,089 | 76,345 |
| Series 2020-71, Class IO, 1.10%, 1/16/62(i) | | 1,291,692 | 94,617 |
| Series 2020-75, Class IO, 0.90%, 2/16/62(i) | | 2,361,892 | 154,609 |
| | | | 502,130 |
| Whole Loan – 1.9% |
| Cascade Funding Mortgage Trust, Series 2021-HB6, Class A, 0.90%, 6/25/36(a) | | 150,490 | 148,563 |
| CFMT LLC, | | | |
| Series 2021-HB5, Class A, 0.80%, 2/25/31(a)(i) | | 314,919 | 310,689 |
| Series 2021-HB7, Class A, 1.15%, 10/27/31(a) | | 169,485 | 166,434 |
| Series 2021-HB7, Class M1, 2.12%, 10/27/31(a) | | 192,000 | 183,141 |
| PRPM LLC, | | | |
| Series 2021-2, Class A1, 2.11%, 3/25/26(a)(i) | | 285,807 | 275,179 |
| Series 2021-9, Class A1, (Step to 5.36% on 11/25/24), 2.36%, 10/25/26(a)(e) | | 415,478 | 400,348 |
| Series 2021-10, Class A1, (Step to 5.49% on 11/25/24), 2.49%, 10/25/26(a)(e) | | 406,940 | 386,558 |
| Series 2021-11, Class A1, (Step to 5.49% on 12/25/24), 2.49%, 11/25/26(a)(e) | | 498,972 | 480,554 |
|
| RCO VII Mortgage LLC, Series 2021-2, Class A1, (Step to 5.12% on 10/25/24), 2.12%, 9/25/26(a)(e) | | 388,331 | 373,168 |
| | | | 2,724,634 |
Total Mortgage-Backed Securities
(Cost $6,476,286) | 5,640,085 |
| | | Par | Value |
|
| Term Loans – 4.2% |
| Advertising – 0.6% |
| ABG Intermediate Holdings 2 LLC, 2021 Refinancing Term Loan, (3M USD LIBOR + 3.25%, 0.75% Floor), 0.04%, 9/27/24 | | $484,143 | $482,633 |
| CB Poly Investments LLC, Closing Date Term Loan, (3M USD LIBOR + 4.50%, 1.00% Floor), 0.06%, 8/16/23 | | 373,900 | 372,030 |
| | | | 854,663 |
| Commercial Services – 0.6% |
| Cimpress PLC, Tranche B-1 Term Loan, (1M USD LIBOR + 3.50%, 0.50% Floor), 0.04%, 5/17/28 | | 269,960 | 266,418 |
| MediaCo Holding, Inc., Term Loan, (1M USD LIBOR + 7.50%, 1.00% Floor), 0.05%, 11/25/24(c) | | 691,513 | 643,108 |
| | | | 909,526 |
| Environmental Control – 0.2% |
| Packers Holdings LLC, Initial Term Loan (2021), (3M USD LIBOR + 3.25%, 0.75% Floor), 0.04%, 3/09/28 | | 330,740 | 324,373 |
| Healthcare - Services – 0.7% |
| GHX Ultimate Parent Corp., Initial Term Loan, (3M USD LIBOR + 3.25%, 1.00% Floor), 0.04%, 6/28/24 | | 493,467 | 487,298 |
| Heartland Dental LLC, 2021 Incremental Term Loan, (1M USD LIBOR + 4.00%), 0.05%, 4/30/25 | | 495,312 | 491,246 |
| | | | 978,544 |
| Insurance – 0.4% |
| Asurion LLC, New B-7 Term Loan, (1M USD LIBOR + 3.00%), 0.04%, 11/03/24 | | 646,603 | 639,561 |
| Pharmaceuticals – 0.2% |
| PetVet Care Centers LLC, 2021 First Lien Replacement Term Loan, | | | |
| (1M USD LIBOR + 3.50%, 0.75% Floor), 0.04%, 2/14/25 | | 184,056 | 182,732 |
| 2/14/25 (j) | | 138,645 | 137,648 |
| | | | 320,380 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Retail – 0.0%(f)* |
| J.C. Penney Corp., Inc., Term Loan, (k) | | $233,386 | $ 23 |
| Software – 0.7% |
| Applied Systems, Inc., Closing Date Term Loan, (3M USD LIBOR + 3.00%, 0.50% Floor), 0.05%, 9/19/24 | | 315,659 | 314,516 |
| Azalea Topco, Inc., Initial Term Loan, (1M USD LIBOR + 3.50%), 0.04%, 7/24/26 | | 330,488 | 325,472 |
| Polaris Newco LLC, Dollar Term Loan, (1M USD LIBOR + 4.00%, 0.50% FLOOR), 0.05%, 6/02/28 | | 328,350 | 324,518 |
| | | | 964,506 |
| Telecommunications – 0.5% |
| Frontier Communications Corp., TLB, (3M USD LIBOR + 3.75%, 0.75% Floor), 0.05%, 5/01/28 | | 366,300 | 359,586 |
| Windstream Services II LLC, Initial Term Loan, (1M USD LIBOR + 6.25%, 1.00% Floor), 0.07%, 9/21/27 | | 310,423 | 309,002 |
| | | | 668,588 |
| Transportation – 0.3% |
| Hanjin International Corp., Loan, | | | |
| (3M USD LIBOR + 5.00%, 0.50% Floor), 0.06%, 12/23/22 | | 424,000 | 379,430 |
| 12/23/22 (j) | | 3,000 | 41,165 |
| | | | 420,595 |
Total Term Loans
(Cost $6,127,031) | 6,080,759 |
| | | Number
of Shares | |
| Warrants – 0.0%(f) |
| Telecommunications – 0.0%(f) |
| Windstream Services LLC (c)* | | 318 | 4,691 |
Total Warrants
(Cost $146,140) | 4,691 |
| | | Number
of Shares | Value |
|
| Investment Companies – 47.2% |
| Schwab Intermediate-Term U.S. Treasury ETF | | 334,836 | $17,327,763 |
| Schwab Short-Term U.S. Treasury ETF | | 496,706 | 24,477,672 |
| VanEck Investment Grade Floating Rate ETF | | 113,540 | 2,845,880 |
| Vanguard Intermediate-Term Corporate Bond ETF(g) | | 36,004 | 2,936,846 |
| Vanguard Short-Term Corporate Bond ETF(g) | | 142,087 | 10,912,282 |
| Vanguard Short-Term Inflation-Protected Securities ETF | | 186,006 | 9,424,924 |
Total Investment Companies
(Cost $71,846,185) | 67,925,367 |
|
| Short-Term Investments – 13.7% |
| Money Market Fund – 13.7% |
| Northern Institutional Funds - Liquid Assets Portfolio (Shares), 0.32%(l)(m) | | 12,153,261 | 12,153,261 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(l) | | 7,550,926 | 7,550,926 |
| | | | 19,704,187 |
Total Short-Term Investments
(Cost $19,704,187) | 19,704,187 |
Total Investments – 108.7%
(Cost $162,488,350) | 156,376,301 |
| Liabilities less Other Assets – (8.7)% | (12,459,411) |
| NET ASSETS – 100.0% | $143,916,890 |
| Percentages shown are based on Net Assets. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| (a) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. | | |
| (b) | Restricted security that has been deemed illiquid. At April 30, 2022, the value of these restricted illiquid securities amounted to $5,218,967 or 3.63% of net assets. Additional information on these restricted illiquid securities is as follows: | | |
| | Security | Acquisition Date | Acquisition Cost |
| | ABPCI Direct Lending Fund ABS I Ltd., 4.94%, 12/20/30 | 12/16/20 | $ 891,000 |
| | ABPCI Direct Lending Fund ABS II LLC, 2.37%, 3/1/32 | 2/15/22 | 224,000 |
| | ABPCI Direct Lending Fund ABS II LLC, 8.24%, 3/1/32 | 2/15/22 | 935,000 |
| | Monroe Capital ABS Funding Ltd., 2.82%, 4/22/31 | 2/18/21-3/25/21 | 402,757 |
| | Monroe Capital ABS Funding Ltd., 3.91%, 4/22/31 | 2/18/21 | 221,000 |
| | VCP CLO II Ltd., 9.46%, 4/15/31 | 2/5/21 | 1,085,430 |
| | VCP CLO II Ltd., 2.71%, 4/15/31 | 3/7/22 | 813,426 |
| | VCP RRL ABS I Ltd., 2.15%, 10/20/31 | 7/28/21 | 376,712 |
| | VCP RRL ABS I Ltd., 2.85%, 10/20/31 | 7/28/21 | 336,784 |
| |
|
| (c) | Investment is valued using significant unobservable inputs (Level 3) (See table below). |
| (d) | Variable rate security. Rate as of April 30, 2022 is disclosed. |
| (e) | Step coupon bond. Rate as of April 30, 2022 is disclosed. |
| (f) | Amount rounds to less than 0.05%. |
| (g) | Security either partially or fully on loan. |
| (h) | Zero coupon bond. |
| (i) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate as of April 30, 2022 is disclosed. |
| (j) | Position is unsettled. Contract rate was not determined at April 30, 2022 and does not take effect until settlement date. |
| (k) | Issuer has defaulted on terms of debt obligation. Income is not being accrued. |
| (l) | 7-day current yield as of April 30, 2022 is disclosed. |
| (m) | Security purchased with the cash proceeds from securities loaned (See Note 7). |
| * | Non-Income Producing Security |
| Abbreviations: | |
| 1M | 1 Month |
| 3M | 3 Month |
| ABS | Asset-Backed Security |
| BDC | Business Development Company |
| CLO | Collateralized Loan Obligation |
| ETF | Exchange-Traded Fund |
| IO | Interest Only |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| PLC | Public Limited Company |
| SOFR | United States Secured Overnight Financing Rate |
| Strip | Separate Trading of Registered Interest and Principal |
| USD | United States Dollar |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Defensive Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Asset-Backed Securities | $ — | $50,487,620 | $1,149,650 | $ 51,637,270 |
| Common Stocks | 710,192 | — | 491,569 | 1,201,761 |
| Corporate Bonds | — | 3,490,213 | — | 3,490,213 |
| Foreign Issuer Bonds | — | 691,968 | — | 691,968 |
| Mortgage-Backed Securities | — | 5,640,085 | — | 5,640,085 |
| Term Loans | — | 5,437,651 | 643,108 | 6,080,759 |
| Warrants | — | — | 4,691 | 4,691 |
| Investment Companies | 67,925,367 | — | — | 67,925,367 |
| Short-Term Investments | 19,704,187 | — | — | 19,704,187 |
| Total Investments | $88,339,746 | $65,747,537 | $2,289,018 | $156,376,301 |
Investments classified within Level 3 of the fair value hierarchy are valued by Morningstar Investment Management LLC ("MIM") in good faith under procedures adopted by authority of the Fund’s Board of Trustees. MIM employs various methods to determine fair valuations including regular review of key inputs and assumptions, and review of related market activity, if any. However, there are generally no observable trade activities in these securities. MIM reports to the Board of Trustees at their regularly scheduled quarterly meetings, or more often if warranted. The report includes a summary of the results of the process, the key inputs and assumptions noted, and any changes to the inputs and assumptions used. When appropriate, MIM will recommend changes to the procedures and process employed. The value determined for an investment using the fair value procedures may differ significantly from the value realized upon the sale of such investment.
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | Balance
as of
4/30/21
(000s) | Accrued
discounts
(premiums)
(000s) | Realized
gains
(losses)
(000s) | Change in
unrealized
appreciation
(depreciation)
(000s) | Purchases
(000s) | Sales
(000s) | Transfers
into
level 3
(000s) | Transfers
out of
level 3
(000s)* | Balance
as of
4/30/22
(000s) | Change in
unrealized
appreciation
(depreciation)
from
investments
still held
at 4/30/22
(000s) |
| Investments, at value | | | | | | | | | | |
| Asset-Backed Securities - Other | $ 619,257 | $ 21 | $ — | $(45,597) | $1,159,000 | $ — | $— | $(583,031) | $1,149,650 | $ (9,350) |
| Common Stocks - Real Estate | 408,576 | — | — | (6,384) | — | — | — | — | 402,192 | (6,384) |
| Common Stocks - Retail | 30,645 | — | — | 9,364 | — | — | — | — | 40,009 | 9,364 |
| Common Stocks - Telecommunications | — | — | — | 17,603 | 31,765 | — | — | — | 49,368 | 17,603 |
| Private Placement - Transportation | 110,837 | — | — | — | — | (110,837) | — | — | — | — |
| Term Loans - Commercial Services | 665,607 | 1,307 | 224 | 163 | 6,060 | (30,253) | — | — | 643,108 | 163 |
| Term Loans - Retail | 505 | — | — | (482) | — | — | — | (23) | — | — |
| Warrants - Telecommunications | 3,975 | — | — | 716 | — | — | — | — | 4,691 | 716 |
| Total | $1,839,402 | $1,328 | $224 | $(24,617) | $1,196,825 | $(141,090) | $— | $(583,054) | $2,289,018 | $12,112 |
* During the year securities transferred out of level 3 due to pricing coverage initiated by pricing vendor.
The following table summarizes the quantitative inputs and assumptions used for items categorized as Level 3 of the fair value hierarchy as of April 30, 2022:
| Financial Assets | Fair Value at
4/30/22 | Valuation Technique(s) | Unobservable Inputs | Price/Range |
| Asset-Backed Securities | $1,149,650 | Third Party Broker Quotes | Quotes/Prices | $99.00 - $100.00 |
| Common Stocks | $ 442,201 | Third Party Broker Quotes | Quotes/Prices | $11.75 - $15.75 |
| Common Stocks | $ 49,368 | Third Party Broker Quotes | Indicative Quote | $14.75 |
| Term Loans | $ 643,108 | Discounted Cash Flow Method | Projected cash flow and discount rate | $93.00 |
| Warrants | $ 4,691 | Third Party Broker Quotes | Quotes/Prices | $14.75 |
| Total | $2,289,018 | | | |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Asset-Backed Securities – 0.5% |
| Other – 0.5% |
| AIG CLO LLC, Series 2021-2A, Class E, (3M USD LIBOR + 6.50%, 6.50% Floor), 7.56%, 7/20/34(b)(c) | | $250,000 | $242,238 |
| Octagon Investment Partners 44 Ltd., Series 2019-1A, Class ER, (3M USD LIBOR + 6.75%, 6.75% Floor), 7.80%, 10/15/34(b)(c) | | 250,000 | 235,003 |
| Pikes Peak CLO 4, Series 2019-4A, Class ER, (3M USD LIBOR + 6.61%, 6.61% Floor), 7.65%, 7/15/34(b)(c) | | 250,000 | 238,750 |
| VOLT XCVI LLC, Series 2021-NPL5, Class A2, (Step to 8.83% on 3/25/25), 4.83%, 3/27/51(b)(d) | | 100,000 | 95,256 |
| | | | 811,247 |
Total Asset-Backed Securities
(Cost $847,590) | 811,247 |
| | | Number
of Shares | |
| Common Stocks – 1.0% |
| Aerospace/Defense – 0.0%(e) |
| L3Harris Technologies, Inc. | | 22 | 5,110 |
| Lockheed Martin Corp. | | 90 | 38,891 |
| | | | 44,001 |
| Auto Manufacturers – 0.0%(e) |
| Cummins, Inc. | | 131 | 24,784 |
| Banks – 0.0%(e) |
| Morgan Stanley | | 330 | 26,595 |
| Beverages – 0.0%(e) |
| Coca-Cola (The) Co. | | 556 | 35,923 |
| Commercial Services – 0.0%(e) |
| Automatic Data Processing, Inc. | | 74 | 16,145 |
| Computers – 0.1% |
| Accenture PLC, Class A | | 95 | 28,534 |
| Apple, Inc. | | 211 | 33,264 |
| | | | 61,798 |
| Cosmetics/Personal Care – 0.0%(e) |
| Procter & Gamble (The) Co. | | 309 | 49,610 |
| | | Number
of Shares | Value |
| Diversified Financial Services – 0.0%(e) |
| BlackRock, Inc. | | 56 | $ 34,982 |
| Electric – 0.1% |
| Duke Energy Corp. | | 338 | 37,234 |
| NextEra Energy, Inc. | | 470 | 33,379 |
| | | | 70,613 |
| Engineering & Construction – 0.0%(e) |
| Mcdermott International Ltd.* | | 1,932 | 1,256 |
| Healthcare - Products – 0.0%(e) |
| Abbott Laboratories | | 205 | 23,268 |
| Thermo Fisher Scientific, Inc. | | 20 | 11,058 |
| | | | 34,326 |
| Healthcare - Services – 0.0%(e) |
| Anthem, Inc. | | 48 | 24,092 |
| UnitedHealth Group, Inc. | | 34 | 17,291 |
| | | | 41,383 |
| Machinery - Diversified – 0.0%(e) |
| Deere & Co. | | 67 | 25,296 |
| Media – 0.1% |
| Altice USA, Inc., Class A* | | 16,055 | 148,990 |
| Comcast Corp., Class A | | 848 | 33,717 |
| | | | 182,707 |
| Mining – 0.0%(e) |
| Newmont Corp. | | 515 | 37,518 |
| Oil & Gas – 0.0%(e) |
| Battalion Oil Corp.* | | 363 | 6,839 |
| Pioneer Natural Resources Co. | | 107 | 24,874 |
| | | | 31,713 |
| Pharmaceuticals – 0.1% |
| AbbVie, Inc. | | 294 | 43,183 |
| Bristol-Myers Squibb Co. | | 388 | 29,205 |
| Johnson & Johnson | | 261 | 47,100 |
| Merck & Co., Inc. | | 579 | 51,351 |
| | | | 170,839 |
| Pipelines – 0.0%(e) |
| Williams (The) Cos., Inc. | | 753 | 25,820 |
| Real Estate Investment Trusts – 0.0%(e) |
| American Tower Corp. | | 149 | 35,912 |
| Retail – 0.1% |
| Home Depot (The), Inc. | | 77 | 23,131 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Number
of Shares | Value |
| Retail (Continued) |
| Starbucks Corp. | | 278 | $ 20,750 |
| Walmart, Inc. | | 295 | 45,132 |
| | | | 89,013 |
| Semiconductors – 0.1% |
| Broadcom, Inc. | | 36 | 19,958 |
| Microchip Technology, Inc. | | 310 | 20,212 |
| Texas Instruments, Inc. | | 62 | 10,556 |
| | | | 50,726 |
| Software – 0.0%(e) |
| Clarivate PLC* | | 78 | 1,223 |
| Microsoft Corp. | | 113 | 31,360 |
| | | | 32,583 |
| Telecommunications – 0.3% |
| Cisco Systems, Inc. | | 615 | 30,123 |
| T-Mobile U.S., Inc.* | | 3,901 | 480,369 |
| | | | 510,492 |
| Transportation – 0.1% |
| Union Pacific Corp. | | 144 | 33,738 |
| United Parcel Service, Inc., Class B | | 163 | 29,336 |
| | | | 63,074 |
Total Common Stocks
(Cost $1,816,560) | 1,697,109 |
| | | Par (a) | |
| Convertible Bonds – 1.7% |
| Airlines – 0.2% |
| Southwest Airlines Co., 1.25%, 5/01/25 | | $230,000 | 314,065 |
| Biotechnology – 0.4% |
| BioMarin Pharmaceutical, Inc., | | | |
| 0.60%, 8/01/24 | | 140,000 | 142,310 |
|
| 1.25%, 5/15/27 | | 455,000 | 467,512 |
|
| Livongo Health, Inc., 0.87%, 6/01/25 | | 100,000 | 84,750 |
| | | | 694,572 |
| Entertainment – 0.0%(e) |
| Penn National Gaming, Inc., 2.75%, 5/15/26 | | 25,000 | 43,450 |
| Healthcare - Services – 0.2% |
| Teladoc Health, Inc., 1.25%, 6/01/27 | | 480,000 | 355,920 |
| | | Par (a) | Value |
| Internet – 0.1% |
| Uber Technologies, Inc., 0.00%, 12/15/25(f) | | $ 205,000 | $ 177,017 |
| Zillow Group, Inc., 1.38%, 9/01/26 | | 25,000 | 28,588 |
| | | | 205,605 |
| Leisure Time – 0.1% |
| NCL Corp. Ltd., 1.13%, 2/15/27(b) | | 195,000 | 170,333 |
| Media – 0.7% |
| DISH Network Corp., | | | |
| 2.37%, 3/15/24 | | 135,000 | 125,483 |
|
| 0.00%, 12/15/25(f) | | 100,000 | 90,250 |
|
| 3.38%, 8/15/26 | | 1,045,000 | 896,087 |
| | | | 1,111,820 |
| Software – 0.0%(e) |
| Bilibili, Inc., 0.50%, 12/01/26(b) | | 90,000 | 63,810 |
Total Convertible Bonds
(Cost $3,293,516) | 2,959,575 |
| | | Number
of Shares | |
| Convertible Preferred Stocks – 0.2% |
| Software – 0.1% |
| Clarivate PLC | | 1,770 | 114,218 |
| Telecommunications – 0.1% |
| 2020 Cash Mandatory Exchangeable Trust(b)(g)* | | 250 | 273,270 |
Total Convertible Preferred Stocks
(Cost $479,244) | 387,488 |
| | | Par (a) | |
| Corporate Bonds – 21.4% |
| Advertising – 0.0%(e) |
| Terrier Media Buyer, Inc., 8.88%, 12/15/27(b) | | 45,000 | 43,983 |
| Aerospace/Defense – 0.3% |
| Moog, Inc., 4.25%, 12/15/27(b) | | 15,000 | 13,969 |
| Spirit AeroSystems, Inc., 4.60%, 6/15/28 | | 275,000 | 237,553 |
| TransDigm, Inc., 5.50%, 11/15/27 | | 225,000 | 206,323 |
| | | | 457,845 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Airlines – 0.5% |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | |
| 5.50%, 4/20/26(b) | | $170,000 | $ 168,512 |
| 5.75%, 4/20/29(b) | | 720,000 | 693,774 |
| | | | 862,286 |
| Auto Manufacturers – 0.7% |
| Ford Motor Co., | | | |
| 9.00%, 4/22/25 | | 305,000 | 339,875 |
| 3.25%, 2/12/32 | | 145,000 | 117,842 |
|
| Ford Motor Credit Co. LLC, 2.30%, 2/10/25 | | 475,000 | 441,132 |
| General Motors Financial Co., Inc., | | | |
| (3M USD LIBOR + 3.60%), 5.75%, 9/30/27(h)(i) | | 190,000 | 174,802 |
| (3M USD LIBOR + 3.44%), 6.50%, 9/30/28(h)(i) | | 155,000 | 149,575 |
| (5Y US Treasury CMT + 5.00%), 5.70%, 9/30/30(h)(i) | | 30,000 | 29,288 |
| | | | 1,252,514 |
| Auto Parts & Equipment – 0.1% |
| Dana, Inc., 4.25%, 9/01/30 | | 35,000 | 30,002 |
| Goodyear Tire & Rubber (The) Co., 5.00%, 7/15/29(b) | | 5,000 | 4,458 |
| Meritor, Inc., 4.50%, 12/15/28(b) | | 45,000 | 44,944 |
| Tenneco, Inc., 7.87%, 1/15/29(b) | | 45,000 | 45,463 |
| Wheel Pros, Inc., 6.50%, 5/15/29(b) | | 55,000 | 41,800 |
| | | | 166,667 |
| Banks – 0.1% |
| Freedom Mortgage Corp., 7.63%, 5/01/26(b) | | 160,000 | 145,600 |
| Beverages – 0.1% |
| Triton Water Holdings, Inc., 6.25%, 4/01/29(b) | | 110,000 | 91,051 |
| Building Materials – 0.4% |
| Builders FirstSource, Inc., | | | |
| 5.00%, 3/01/30(b) | | 185,000 | 171,125 |
| 4.25%, 2/01/32(b) | | 60,000 | 51,225 |
|
| Cornerstone Building Brands, Inc., 6.12%, 1/15/29(b) | | 100,000 | 83,205 |
| CP Atlas Buyer, Inc., 7.00%, 12/01/28(b) | | 55,000 | 45,925 |
| | | Par (a) | Value |
| Building Materials (Continued) |
|
| MIWD Holdco II LLC/MIWD Finance Corp., 5.50%, 2/01/30(b) | | $ 75,000 | $ 64,875 |
| Patrick Industries, Inc., 4.75%, 5/01/29(b) | | 90,000 | 77,175 |
| Standard Industries, Inc., 4.38%, 7/15/30(b) | | 65,000 | 54,201 |
| Summit Materials LLC/Summit Materials Finance Corp., 5.25%, 1/15/29(b) | | 40,000 | 37,500 |
| Victors Merger Corp., 6.37%, 5/15/29(b) | | 105,000 | 63,000 |
| | | | 648,231 |
| Chemicals – 0.2% |
| ASP Unifrax Holdings, Inc., 5.25%, 9/30/28(b) | | 100,000 | 88,144 |
| Chemours (The) Co., 5.38%, 5/15/27 | | 60,000 | 57,900 |
| Diamond B.C. B.V., 4.63%, 10/01/29(b) | | 50,000 | 43,012 |
| Olin Corp., | | | |
| 5.62%, 8/01/29 | | 20,000 | 19,694 |
| 5.00%, 2/01/30 | | 135,000 | 127,575 |
| | | | 336,325 |
| Coal – 0.0%(e) |
| SunCoke Energy, Inc., 4.88%, 6/30/29(b) | | 35,000 | 31,379 |
| Commercial Services – 0.5% |
| ADT Security (The) Corp., 4.13%, 8/01/29(b) | | 270,000 | 229,238 |
| Deluxe Corp., 8.00%, 6/01/29(b) | | 80,000 | 75,913 |
| MPH Acquisition Holdings LLC, 5.75%, 11/01/28(b) | | 180,000 | 156,777 |
| Nielsen Finance LLC/Nielsen Finance Co., | | | |
| 5.63%, 10/01/28(b) | | 135,000 | 130,819 |
| 5.87%, 10/01/30(b) | | 105,000 | 100,699 |
| Sabre GLBL, Inc., | | | |
| 9.25%, 4/15/25(b) | | 20,000 | 21,331 |
| 7.37%, 9/01/25(b) | | 65,000 | 65,744 |
| | | | 780,521 |
| Computers – 0.1% |
| NCR Corp., | | | |
| 5.75%, 9/01/27(b) | | 75,000 | 72,187 |
| 5.00%, 10/01/28(b) | | 75,000 | 71,625 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Computers (Continued) |
| Presidio Holdings, Inc., | | | |
| 4.88%, 2/01/27(b) | | $ 25,000 | $ 23,725 |
| 8.25%, 2/01/28(b) | | 25,000 | 24,279 |
| | | | 191,816 |
| Cosmetics/Personal Care – 0.1% |
| Coty, Inc., 5.00%, 4/15/26(b) | | 60,000 | 56,991 |
| Coty, Inc./HFC Prestige Products, Inc./HFC Prestige International U.S. LLC, 4.75%, 1/15/29(b) | | 175,000 | 155,750 |
| | | | 212,741 |
| Distribution/Wholesale – 0.0%(e) |
| Resideo Funding, Inc., 4.00%, 9/01/29(b) | | 80,000 | 71,200 |
| Diversified Financial Services – 1.7% |
| Aircastle Ltd., (5Y US Treasury CMT + 4.41%), 5.25%, 6/15/26(b)(h)(i) | | 45,000 | 40,056 |
| Cobra AcquisitionCo LLC, 6.37%, 11/01/29(b) | | 205,000 | 156,825 |
| Coinbase Global, Inc., 3.63%, 10/01/31(b) | | 40,000 | 29,549 |
| LFS Topco LLC, 5.87%, 10/15/26(b) | | 75,000 | 69,375 |
| Midcap Financial Issuer Trust, | | | |
| 6.50%, 5/01/28(b) | | 120,000 | 103,500 |
| 5.62%, 1/15/30(b) | | 200,000 | 159,254 |
|
| Nationstar Mortgage Holdings, Inc., 6.00%, 1/15/27(b) | | 180,000 | 174,600 |
| Navient Corp., | | | |
| 5.00%, 3/15/27 | | 300,000 | 273,085 |
| 4.88%, 3/15/28 | | 230,000 | 201,825 |
| 5.50%, 3/15/29 | | 235,000 | 206,643 |
| OneMain Finance Corp., | | | |
| 6.88%, 3/15/25 | | 85,000 | 85,425 |
| 8.88%, 6/01/25 | | 45,000 | 47,228 |
| 7.12%, 3/15/26 | | 120,000 | 121,500 |
| 3.50%, 1/15/27 | | 285,000 | 250,378 |
|
| Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc., 6.37%, 2/01/27(b) | | 105,000 | 106,292 |
| Provident Funding Associates L.P./PFG Finance Corp., 6.37%, 6/15/25(b) | | 90,000 | 88,313 |
| Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | |
| 2.88%, 10/15/26(b) | | 95,000 | 84,075 |
| | | Par (a) | Value |
| Diversified Financial Services (Continued) |
| Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | |
| 3.63%, 3/01/29 | | $105,000 | $ 89,775 |
| 3.88%, 3/01/31(b) | | 250,000 | 210,957 |
| 4.00%, 10/15/33(b) | | 510,000 | 408,586 |
| | | | 2,907,241 |
| Electric – 0.5% |
| Calpine Corp., 5.12%, 3/15/28(b) | | 400,000 | 363,350 |
| NRG Energy, Inc., | | | |
| 5.25%, 6/15/29(b) | | 10,000 | 9,419 |
| 3.88%, 2/15/32(b) | | 85,000 | 70,953 |
|
| Pattern Energy Operations L.P./Pattern Energy Operations, Inc., 4.50%, 8/15/28(b) | | 45,000 | 42,075 |
| PG&E Corp., | | | |
| 5.00%, 7/01/28 | | 110,000 | 101,221 |
| 5.25%, 7/01/30 | | 15,000 | 13,632 |
|
| Vistra Operations Co. LLC, 5.50%, 9/01/26(b) | | 180,000 | 179,370 |
| | | | 780,020 |
| Electrical Component & Equipment – 0.1% |
| Energizer Holdings, Inc., 4.38%, 3/31/29(b) | | 115,000 | 95,759 |
| Entertainment – 0.7% |
| Boyne USA, Inc., 4.75%, 5/15/29(b) | | 50,000 | 46,375 |
| Caesars Entertainment, Inc., 4.63%, 10/15/29(b) | | 120,000 | 102,900 |
| Everi Holdings, Inc., 5.00%, 7/15/29(b) | | 40,000 | 36,292 |
| International Game Technology PLC, 4.13%, 4/15/26(b) | | 200,000 | 188,604 |
| Lions Gate Capital Holdings LLC, 5.50%, 4/15/29(b) | | 35,000 | 31,027 |
| Live Nation Entertainment, Inc., | | | |
| 4.75%, 10/15/27(b) | | 165,000 | 155,017 |
| 3.75%, 1/15/28(b) | | 85,000 | 76,925 |
|
| Mohegan Gaming & Entertainment, 8.00%, 2/01/26(b) | | 75,000 | 66,563 |
| Scientific Games International, Inc., 7.00%, 5/15/28(b) | | 285,000 | 291,779 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Entertainment (Continued) |
|
| Speedway Motorsports LLC/Speedway Funding II, Inc., 4.87%, 11/01/27(b) | | $ 60,000 | $ 57,288 |
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.13%, 10/01/29(b) | | 125,000 | 109,453 |
| | | | 1,162,223 |
| Environmental Control – 0.0%(e) |
| Madison IAQ LLC, 5.88%, 6/30/29(b) | | 80,000 | 65,200 |
| Food – 0.3% |
| Performance Food Group, Inc., 4.25%, 8/01/29(b) | | 95,000 | 84,429 |
| Post Holdings, Inc., | | | |
| 4.62%, 4/15/30(b) | | 290,000 | 247,950 |
| 4.50%, 9/15/31(b) | | 170,000 | 141,372 |
|
| Simmons Foods, Inc., 4.63%, 3/01/29(b) | | 85,000 | 76,702 |
| | | | 550,453 |
| Food Service – 0.0%(e) |
| Aramark Services, Inc., 5.00%, 2/01/28(b) | | 20,000 | 18,651 |
| Healthcare - Products – 0.1% |
| Mozart Debt Merger Sub, Inc., 5.25%, 10/01/29(b) | | 135,000 | 117,450 |
| Healthcare - Services – 1.2% |
| AHP Health Partners, Inc., 5.75%, 7/15/29(b) | | 75,000 | 67,688 |
| CHS/Community Health Systems, Inc., 5.25%, 5/15/30(b) | | 420,000 | 368,193 |
| DaVita, Inc., 3.75%, 2/15/31(b) | | 230,000 | 187,450 |
| Encompass Health Corp., 4.75%, 2/01/30 | | 115,000 | 103,931 |
| HCA, Inc., | | | |
| 5.87%, 2/15/26 | | 50,000 | 51,775 |
| 5.38%, 9/01/26 | | 355,000 | 363,344 |
|
| LifePoint Health, Inc., 5.38%, 1/15/29(b) | | 230,000 | 196,650 |
| RP Escrow Issuer LLC, 5.25%, 12/15/25(b) | | 65,000 | 60,450 |
| Tenet Healthcare Corp., | | | |
| 6.25%, 2/01/27(b) | | 60,000 | 59,550 |
| 4.63%, 6/15/28(b) | | 20,000 | 18,850 |
| 6.13%, 10/01/28(b) | | 220,000 | 211,189 |
| 4.38%, 1/15/30(b) | | 385,000 | 350,300 |
| | | Par (a) | Value |
| Healthcare - Services (Continued) |
|
| US Acute Care Solutions LLC, 6.37%, 3/01/26(b) | | $ 70,000 | $ 67,987 |
| | | | 2,107,357 |
| Home Builders – 0.0%(e) |
| Installed Building Products, Inc., 5.75%, 2/01/28(b) | | 25,000 | 23,685 |
| Home Furnishings – 0.1% |
| Tempur Sealy International, Inc., 3.88%, 10/15/31(b) | | 90,000 | 74,572 |
| Insurance – 0.2% |
| AmWINS Group, Inc., 4.88%, 6/30/29(b) | | 130,000 | 118,993 |
| AssuredPartners, Inc., 5.63%, 1/15/29(b) | | 85,000 | 74,754 |
| BroadStreet Partners, Inc., 5.87%, 4/15/29(b) | | 80,000 | 69,400 |
| | | | 263,147 |
| Internet – 0.8% |
| ANGI Group LLC, 3.88%, 8/15/28(b) | | 65,000 | 51,472 |
| Arches Buyer, Inc., 6.12%, 12/01/28(b) | | 40,000 | 34,800 |
| Endurance International Group Holdings, Inc., 6.00%, 2/15/29(b) | | 220,000 | 178,064 |
| Match Group Holdings II LLC, 3.63%, 10/01/31(b) | | 20,000 | 16,638 |
| Netflix, Inc., | | | |
| 5.87%, 2/15/25 | | 85,000 | 88,188 |
| 5.38%, 11/15/29(b) | | 170,000 | 170,170 |
| 4.88%, 6/15/30(b) | | 10,000 | 9,750 |
|
| Uber Technologies, Inc., 4.50%, 8/15/29(b) | | 940,000 | 809,584 |
| | | | 1,358,666 |
| Investment Management Companies – 0.4% |
| Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | | | |
| 6.25%, 5/15/26 | | 65,000 | 64,442 |
| 5.25%, 5/15/27 | | 605,000 | 565,173 |
| 4.38%, 2/01/29 | | 80,000 | 69,019 |
| | | | 698,634 |
| Iron/Steel – 0.3% |
| Allegheny Technologies, Inc., | | | |
| 5.87%, 12/01/27 | | 130,000 | 125,450 |
| 4.88%, 10/01/29 | | 75,000 | 68,243 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Iron/Steel (Continued) |
|
| Carpenter Technology Corp., 6.37%, 7/15/28 | | $ 20,000 | $ 19,927 |
| Cleveland-Cliffs, Inc., | | | |
| 6.75%, 3/15/26(b) | | 35,000 | 36,684 |
| 5.88%, 6/01/27 | | 125,000 | 124,375 |
|
| Commercial Metals Co., 4.13%, 1/15/30 | | 100,000 | 91,000 |
| United States Steel Corp., 6.88%, 3/01/29 | | 60,000 | 61,040 |
| | | | 526,719 |
| Leisure Time – 0.9% |
| Carnival Corp., 5.75%, 3/01/27(b) | | 355,000 | 321,458 |
| NCL Corp. Ltd., | | | |
| 5.87%, 3/15/26(b) | | 320,000 | 295,619 |
| 5.88%, 3/15/26 | | 5,000 | 4,619 |
| 7.75%, 2/15/29(b) | | 135,000 | 130,950 |
|
| NCL Finance Ltd., 6.12%, 3/15/28(b) | | 55,000 | 49,500 |
| Royal Caribbean Cruises Ltd., | | | |
| 4.25%, 7/01/26(b) | | 135,000 | 122,201 |
| 3.70%, 3/15/28 | | 95,000 | 79,544 |
| 5.50%, 4/01/28(b) | | 400,000 | 365,000 |
|
| Viking Cruises Ltd., 5.87%, 9/15/27(b) | | 55,000 | 46,593 |
| Viking Ocean Cruises Ship VII Ltd., 5.63%, 2/15/29(b) | | 135,000 | 119,137 |
| VOC Escrow Ltd., 5.00%, 2/15/28(b) | | 85,000 | 76,713 |
| | | | 1,611,334 |
| Lodging – 0.7% |
| Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, | | | |
| 5.00%, 6/01/29(b) | | 140,000 | 126,350 |
| 4.88%, 7/01/31(b) | | 40,000 | 34,932 |
| Marriott Ownership Resorts, Inc., | | | |
| 4.75%, 1/15/28 | | 265,000 | 243,800 |
| 4.50%, 6/15/29(b) | | 60,000 | 52,800 |
|
| MGM Resorts International, 5.50%, 4/15/27 | | 260,000 | 253,243 |
| Travel + Leisure Co., | | | |
| 6.62%, 7/31/26(b) | | 205,000 | 209,875 |
| 6.00%, 4/01/27 | | 10,000 | 10,075 |
| | | Par (a) | Value |
| Lodging (Continued) |
| Travel + Leisure Co., | | | |
| 4.50%, 12/01/29(b) | | $145,000 | $ 128,325 |
| 4.63%, 3/01/30(b) | | 130,000 | 115,700 |
| | | | 1,175,100 |
| Machinery - Diversified – 0.0%(e) |
| GrafTech Finance, Inc., 4.63%, 12/15/28(b) | | 50,000 | 45,638 |
| Media – 2.9% |
| Audacy Capital Corp., 6.75%, 3/31/29(b) | | 190,000 | 164,565 |
| Block Communications, Inc., 4.88%, 3/01/28(b) | | 20,000 | 18,700 |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | |
| 5.00%, 2/01/28(b) | | 120,000 | 114,300 |
| 4.75%, 3/01/30(b) | | 665,000 | 594,344 |
| 4.50%, 8/15/30(b) | | 105,000 | 91,612 |
| 4.25%, 2/01/31(b) | | 50,000 | 42,140 |
| 4.75%, 2/01/32(b) | | 650,000 | 558,564 |
| 4.50%, 5/01/32 | | 55,000 | 46,264 |
| 4.25%, 1/15/34(b) | | 110,000 | 87,450 |
| CSC Holdings LLC, | | | |
| 5.75%, 1/15/30(b) | | 500,000 | 415,000 |
| 4.63%, 12/01/30(b) | | 600,000 | 459,000 |
| 4.50%, 11/15/31(b) | | 400,000 | 328,548 |
| Diamond Sports Group LLC/Diamond Sports Finance Co., | | | |
| 5.37%, 8/15/26(b) | | 175,000 | 64,750 |
| 6.62%, 8/15/27(b) | | 90,000 | 18,675 |
|
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 8/15/27(b) | | 345,000 | 324,731 |
| DISH DBS Corp., | | | |
| 7.75%, 7/01/26 | | 250,000 | 235,166 |
| 7.38%, 7/01/28 | | 65,000 | 56,835 |
| 5.13%, 6/01/29 | | 345,000 | 269,483 |
|
| Gray Escrow II, Inc., 5.37%, 11/15/31(b) | | 35,000 | 30,169 |
| Gray Television, Inc., 4.75%, 10/15/30(b) | | 245,000 | 213,150 |
| iHeartCommunications, Inc., 4.75%, 1/15/28(b) | | 165,000 | 149,531 |
| McGraw-Hill Education, Inc., | | | |
| 5.75%, 8/01/28(b) | | 120,000 | 107,100 |
| 8.00%, 8/01/29(b) | | 120,000 | 107,400 |
|
| Nexstar Media, Inc., 5.63%, 7/15/27(b) | | 20,000 | 19,463 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Media (Continued) |
|
| Radiate Holdco LLC/Radiate Finance, Inc., 6.50%, 9/15/28(b) | | $185,000 | $ 162,800 |
| Scripps Escrow II, Inc., 5.37%, 1/15/31(b) | | 80,000 | 71,210 |
| Sinclair Television Group, Inc., 5.13%, 2/15/27(b) | | 120,000 | 105,124 |
| Townsquare Media, Inc., 6.88%, 2/01/26(b) | | 35,000 | 34,846 |
| Univision Communications, Inc., 6.62%, 6/01/27(b) | | 80,000 | 80,200 |
| | | | 4,971,120 |
| Mining – 0.1% |
| Novelis Corp., 4.75%, 1/30/30(b) | | 180,000 | 165,551 |
| Office/Business Equipment – 0.1% |
| Pitney Bowes, Inc., 6.88%, 3/15/27(b) | | 135,000 | 124,774 |
| Xerox Holdings Corp., 5.00%, 8/15/25(b) | | 20,000 | 19,200 |
| | | | 143,974 |
| Oil & Gas – 2.5% |
| Antero Resources Corp., 8.38%, 7/15/26(b) | | 50,000 | 53,883 |
| Ascent Resources Utica Holdings LLC/ARU Finance Corp., | | | |
| 7.00%, 11/01/26(b) | | 130,000 | 131,019 |
| 5.88%, 6/30/29(b) | | 80,000 | 77,433 |
|
| California Resources Corp., 7.12%, 2/01/26(b) | | 30,000 | 30,515 |
| Callon Petroleum Co., 8.00%, 8/01/28(b) | | 175,000 | 181,006 |
| Calumet Specialty Products Partners L.P./Calumet Finance Corp., 11.00%, 4/15/25(b) | | 35,000 | 35,000 |
| Centennial Resource Production LLC, 6.87%, 4/01/27(b) | | 75,000 | 74,853 |
| Chesapeake Energy Corp., | | | |
| 5.50%, 2/01/26(b) | | 205,000 | 203,271 |
| 6.75%, 4/15/29(b) | | 90,000 | 90,562 |
|
| Comstock Resources, Inc., 6.75%, 3/01/29(b) | | 80,000 | 80,894 |
| Crescent Energy Finance LLC, 7.25%, 5/01/26(b) | | 95,000 | 93,575 |
| CVR Energy, Inc., 5.25%, 2/15/25(b) | | 155,000 | 149,947 |
| | | Par (a) | Value |
| Oil & Gas (Continued) |
|
| Energy Ventures Gom LLC/EnVen Finance Corp., 11.75%, 4/15/26(b) | | $ 39,000 | $ 40,365 |
| EQT Corp., | | | |
| 6.62%, 2/01/25 | | 105,000 | 109,283 |
| 3.13%, 5/15/26(b) | | 10,000 | 9,428 |
|
| Holly Energy Partners L.P./Holly Energy Finance Corp., 6.38%, 4/15/27(b) | | 65,000 | 66,300 |
| Laredo Petroleum, Inc., 7.75%, 7/31/29(b) | | 40,000 | 39,200 |
| Matador Resources Co., 5.88%, 9/15/26 | | 150,000 | 147,261 |
| Murphy Oil Corp., 6.37%, 12/01/42 | | 100,000 | 90,242 |
| Nabors Industries, Inc., 7.37%, 5/15/27(b) | | 75,000 | 76,515 |
| Northern Oil and Gas, Inc., 8.13%, 3/01/28(b) | | 50,000 | 49,750 |
| Oasis Petroleum, Inc., 6.38%, 6/01/26(b) | | 40,000 | 40,194 |
| Occidental Petroleum Corp., | | | |
| 5.55%, 3/15/26 | | 65,000 | 66,625 |
| 3.20%, 8/15/26 | | 25,000 | 23,500 |
| 3.00%, 2/15/27 | | 35,000 | 32,550 |
| 8.50%, 7/15/27 | | 90,000 | 101,475 |
| 3.50%, 8/15/29 | | 315,000 | 294,131 |
| 8.87%, 7/15/30 | | 215,000 | 258,234 |
| 6.62%, 9/01/30 | | 140,000 | 151,725 |
| 6.13%, 1/01/31 | | 100,000 | 105,106 |
| 7.50%, 5/01/31 | | 45,000 | 51,300 |
| 7.88%, 9/15/31 | | 20,000 | 23,384 |
| 4.10%, 2/15/47 | | 180,000 | 149,850 |
| 4.20%, 3/15/48 | | 85,000 | 70,444 |
|
| PBF Holding Co. LLC/PBF Finance Corp., 9.25%, 5/15/25(b) | | 60,000 | 62,201 |
| PDC Energy, Inc., 5.75%, 5/15/26 | | 75,000 | 72,987 |
| Penn Virginia Holdings LLC, 9.25%, 8/15/26(b) | | 80,000 | 82,000 |
| Range Resources Corp., 8.25%, 1/15/29 | | 45,000 | 48,249 |
| SM Energy Co., | | | |
| 5.63%, 6/01/25 | | 70,000 | 68,425 |
| 6.75%, 9/15/26 | | 65,000 | 64,672 |
| 6.50%, 7/15/28 | | 140,000 | 138,019 |
| Southwestern Energy Co., | | | |
| 7.75%, 10/01/27 | | 15,000 | 15,653 |
| 5.38%, 2/01/29 | | 140,000 | 138,292 |
| 5.38%, 3/15/30 | | 90,000 | 88,862 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Oil & Gas (Continued) |
| Southwestern Energy Co., | | | |
| 4.75%, 2/01/32 | | $ 10,000 | $ 9,456 |
|
| Tap Rock Resources LLC, 7.00%, 10/01/26(b) | | 65,000 | 65,664 |
| Transocean Pontus Ltd., 6.13%, 8/01/25(b) | | 36,900 | 36,252 |
| Transocean Poseidon Ltd., 6.87%, 2/01/27(b) | | 168,750 | 162,375 |
| Transocean, Inc., | | | |
| 11.50%, 1/30/27(b) | | 40,000 | 39,790 |
| 8.00%, 2/01/27(b) | | 95,000 | 75,050 |
| | | | 4,366,767 |
| Oil & Gas Services – 0.2% |
| Transocean Proteus Ltd., 6.25%, 12/01/24(b) | | 124,000 | 121,830 |
| Weatherford International Ltd., | | | |
| 11.00%, 12/01/24(b) | | 13,000 | 13,390 |
| 8.62%, 4/30/30(b) | | 115,000 | 113,834 |
| | | | 249,054 |
| Packaging & Containers – 0.0%(e) |
| Graham Packaging Co., Inc., 7.13%, 8/15/28(b) | | 65,000 | 58,609 |
| Pharmaceuticals – 0.7% |
| AdaptHealth LLC, 5.13%, 3/01/30(b) | | 65,000 | 55,900 |
| Bausch Health Cos., Inc., | | | |
| 7.00%, 1/15/28(b) | | 25,000 | 20,625 |
| 5.00%, 1/30/28(b) | | 250,000 | 184,417 |
| 6.25%, 2/15/29(b) | | 400,000 | 291,104 |
| 5.00%, 2/15/29(b) | | 5,000 | 3,516 |
| 5.25%, 1/30/30(b) | | 130,000 | 90,233 |
| 5.25%, 2/15/31(b) | | 350,000 | 243,250 |
|
| Endo Dac/Endo Finance LLC/Endo Finco, Inc., 6.00%, 6/30/28(b) | | 100,000 | 43,000 |
| Endo Luxembourg Finance Co. I S.a.r.l./Endo U.S., Inc., 6.12%, 4/01/29(b) | | 25,000 | 21,750 |
| Organon & Co./Organon Foreign Debt Co-Issuer B.V., 5.12%, 4/30/31(b) | | 240,000 | 216,900 |
| Par Pharmaceutical, Inc., 7.50%, 4/01/27(b) | | 86,000 | 78,465 |
| | | | 1,249,160 |
| Pipelines – 1.0% |
| Antero Midstream Partners L.P./Antero Midstream Finance Corp., | | | |
| 7.87%, 5/15/26(b) | | 70,000 | 73,219 |
| | | Par (a) | Value |
| Pipelines (Continued) |
| Antero Midstream Partners L.P./Antero Midstream Finance Corp., | | | |
| 5.38%, 6/15/29(b) | | $ 50,000 | $ 46,866 |
|
| Blue Racer Midstream LLC/Blue Racer Finance Corp., 7.62%, 12/15/25(b) | | 170,000 | 175,100 |
| Buckeye Partners L.P., | | | |
| 4.50%, 3/01/28(b) | | 90,000 | 82,125 |
| 5.85%, 11/15/43 | | 45,000 | 35,888 |
| 5.60%, 10/15/44 | | 60,000 | 48,150 |
|
| Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 6.00%, 2/01/29(b) | | 85,000 | 82,676 |
| DCP Midstream Operating L.P., | | | |
| 5.38%, 7/15/25 | | 70,000 | 70,350 |
| 5.63%, 7/15/27 | | 195,000 | 197,851 |
| EnLink Midstream Partners L.P., | | | |
| 5.60%, 4/01/44 | | 10,000 | 8,251 |
| 5.05%, 4/01/45 | | 5,000 | 3,850 |
| 5.45%, 6/01/47 | | 55,000 | 44,550 |
| EQM Midstream Partners L.P., | | | |
| 6.00%, 7/01/25(b) | | 60,000 | 59,463 |
| 6.50%, 7/01/27(b) | | 160,000 | 161,600 |
| 5.50%, 7/15/28 | | 25,000 | 23,875 |
| 6.50%, 7/15/48 | | 60,000 | 55,200 |
|
| Genesis Energy L.P./Genesis Energy Finance Corp., 7.75%, 2/01/28 | | 175,000 | 168,437 |
| Hess Midstream Operations L.P., | | | |
| 5.62%, 2/15/26(b) | | 109,000 | 109,000 |
| 4.25%, 2/15/30(b) | | 145,000 | 133,007 |
|
| New Fortress Energy, Inc., 6.75%, 9/15/25(b) | | 95,000 | 93,398 |
| NuStar Logistics L.P., 5.75%, 10/01/25 | | 85,000 | 84,575 |
| | | | 1,757,431 |
| Real Estate – 0.2% |
| Realogy Group LLC/Realogy Co-Issuer Corp., | | | |
| 5.75%, 1/15/29(b) | | 100,000 | 83,827 |
| 5.25%, 4/15/30(b) | | 230,000 | 186,343 |
|
| VICI Properties L.P., 4.38%, 5/15/25 | | 145,000 | 144,861 |
| | | | 415,031 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Real Estate Investment Trusts – 0.5% |
| Iron Mountain, Inc., | | | |
| 4.88%, 9/15/29(b) | | $210,000 | $192,370 |
| 4.50%, 2/15/31(b) | | 70,000 | 59,981 |
|
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.25%, 2/01/27(b) | | 110,000 | 101,112 |
| Service Properties Trust, | | | |
| 7.50%, 9/15/25 | | 140,000 | 139,738 |
| 4.75%, 10/01/26 | | 65,000 | 55,900 |
|
| Starwood Property Trust, Inc., 3.63%, 7/15/26(b) | | 50,000 | 45,625 |
| Uniti Group L.P./Uniti Group Finance, Inc./CSL Capital LLC, 4.75%, 4/15/28(b) | | 150,000 | 133,875 |
| VICI Properties L.P./VICI Note Co., Inc., 4.50%, 1/15/28 | | 191,000 | 188,135 |
| | | | 916,736 |
| Retail – 1.3% |
| Asbury Automotive Group, Inc., | | | |
| 4.50%, 3/01/28 | | 79,000 | 73,668 |
| 4.63%, 11/15/29(b) | | 110,000 | 99,014 |
| 4.75%, 3/01/30 | | 22,000 | 19,717 |
| At Home Group, Inc., | | | |
| 4.87%, 7/15/28(b) | | 50,000 | 41,313 |
| 7.12%, 7/15/29(b) | | 90,000 | 67,032 |
| Bath & Body Works, Inc., | | | |
| 5.25%, 2/01/28 | | 140,000 | 134,400 |
| 6.87%, 11/01/35 | | 5,000 | 4,885 |
| 6.75%, 7/01/36 | | 65,000 | 63,050 |
|
| Bloomin' Brands, Inc./OSI Restaurant Partners LLC, 5.12%, 4/15/29(b) | | 75,000 | 69,750 |
| Carvana Co., | | | |
| 5.62%, 10/01/25(b) | | 70,000 | 60,624 |
| 5.50%, 4/15/27(b) | | 145,000 | 116,036 |
| 4.88%, 9/01/29(b) | | 20,000 | 14,596 |
|
| Ferrellgas L.P./Ferrellgas Finance Corp., 5.37%, 4/01/26(b) | | 90,000 | 81,450 |
| Foundation Building Materials, Inc., 6.00%, 3/01/29(b) | | 215,000 | 174,956 |
| Group 1 Automotive, Inc., 4.00%, 8/15/28(b) | | 30,000 | 26,992 |
| Ken Garff Automotive LLC, 4.87%, 9/15/28(b) | | 50,000 | 45,502 |
| LBM Acquisition LLC, 6.25%, 1/15/29(b) | | 115,000 | 93,581 |
| | | Par (a) | Value |
| Retail (Continued) |
|
| Lithia Motors, Inc., 4.38%, 1/15/31(b) | | $105,000 | $ 96,337 |
| Michaels (The) Cos., Inc., 7.87%, 5/01/29(b) | | 60,000 | 47,250 |
| Murphy Oil USA, Inc., 4.75%, 9/15/29 | | 20,000 | 18,950 |
| Papa John's International, Inc., 3.88%, 9/15/29(b) | | 60,000 | 52,482 |
| PetSmart, Inc./PetSmart Finance Corp., 4.75%, 2/15/28(b) | | 250,000 | 232,500 |
| QVC, Inc., 4.85%, 4/01/24 | | 5,000 | 4,972 |
| Rite Aid Corp., 7.50%, 7/01/25(b) | | 75,000 | 64,211 |
| Sonic Automotive, Inc., | | | |
| 4.63%, 11/15/29(b) | | 155,000 | 133,341 |
| 4.88%, 11/15/31(b) | | 100,000 | 85,363 |
|
| Suburban Propane Partners L.P./Suburban Energy Finance Corp., 5.00%, 6/01/31(b) | | 80,000 | 72,748 |
| Victoria's Secret & Co., 4.63%, 7/15/29(b) | | 125,000 | 102,545 |
| Yum! Brands, Inc., 3.63%, 3/15/31 | | 135,000 | 116,000 |
| | | | 2,213,265 |
| Software – 0.1% |
| Dun & Bradstreet (The) Corp., 5.00%, 12/15/29(b) | | 45,000 | 41,850 |
| Playtika Holding Corp., 4.25%, 3/15/29(b) | | 50,000 | 45,048 |
| Rocket Software, Inc., 6.50%, 2/15/29(b) | | 100,000 | 85,625 |
| Ziff Davis, Inc., 4.63%, 10/15/30(b) | | 83,000 | 74,010 |
| | | | 246,533 |
| Telecommunications – 0.7% |
| CommScope Technologies LLC, 5.00%, 3/15/27(b) | | 785,000 | 616,225 |
| CommScope, Inc., 7.12%, 7/01/28(b) | | 65,000 | 51,837 |
| Embarq Corp., 7.99%, 6/01/36 | | 55,000 | 49,500 |
| Ligado Networks LLC, | | | |
| 15.50%, 11/01/23(b)(j) | | 123,825 | 83,582 |
| 17.50%, 5/01/24(b)(j) | | 45,278 | 17,545 |
|
| LogMeIn, Inc., 5.50%, 9/01/27(b) | | 95,000 | 83,125 |
| Lumen Technologies, Inc., | | | |
| 5.63%, 4/01/25 | | 50,000 | 48,750 |
| 5.38%, 6/15/29(b) | | 60,000 | 48,859 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Telecommunications (Continued) |
|
| ViaSat, Inc., 6.50%, 7/15/28(b) | | $ 85,000 | $ 73,419 |
| Windstream Escrow LLC/Windstream Escrow Finance Corp., 7.75%, 8/15/28(b) | | 100,000 | 95,250 |
| | | | 1,168,092 |
| Trucking & Leasing – 0.0%(e) |
| Fortress Transportation and Infrastructure Investors LLC, 5.50%, 5/01/28(b) | | 75,000 | 64,688 |
| Water – 0.0%(e) |
| Solaris Midstream Holdings LLC, 7.63%, 4/01/26(b) | | 40,000 | 41,000 |
Total Corporate Bonds
(Cost $40,554,926) | 36,901,019 |
|
| Foreign Government Inflation-Linked Bonds – 0.2% |
| Sovereign – 0.2% |
| Bonos de la Tesoreria de la Republica, 1.50%, 3/01/26 | CLP | 6,500 | 245,238 |
Total Foreign Government Inflation-Linked Bonds
(Cost $310,428) | 245,238 |
|
| Foreign Issuer Bonds – 45.1% |
| Angola – 0.3% |
| Angolan Government International Bond, | | | |
| 8.25%, 5/09/28(b) | | 260,000 | 249,444 |
| 9.12%, 11/26/49(b) | | 270,000 | 239,771 |
| | | | 489,215 |
| Argentina – 0.4% |
| Argentine Republic Government International Bond, | | | |
| (Step to 1.50% on 7/9/22), 1.13%, 7/09/35(d) | | 252,524 | 72,058 |
| (Step to 3.88% on 7/9/22), 2.00%, 1/09/38(d) | | 688,956 | 247,370 |
| (Step to 3.50% on 7/9/22), 2.50%, 7/09/41(d) | | 658,931 | 220,313 |
|
| YPF S.A., 6.95%, 7/21/27(b) | | 120,000 | 86,851 |
| | | | 626,592 |
| | | Par (a) | Value |
| Australia – 0.2% |
| Mineral Resources Ltd., | | | |
| 8.12%, 5/01/27(b) | | $ 140,000 | $ 142,132 |
| 8.00%, 11/01/27(b) | | 145,000 | 144,456 |
| | | | 286,588 |
| Bahrain – 0.7% |
| Bahrain Government International Bond, | | | |
| 5.62%, 9/30/31(b) | | 200,000 | 184,476 |
| 5.45%, 9/16/32 | | 250,000 | 225,402 |
| 5.25%, 1/25/33(b) | | 700,000 | 616,543 |
|
| Oil and Gas Holding (The) Co. BSCC, 7.50%, 10/25/27 | | 200,000 | 210,820 |
| | | | 1,237,241 |
| Brazil – 2.2% |
| Brazil Notas do Tesouro Nacional, Serie F, | | | |
| 10.00%, 1/01/25 | BRL | 6,305,000 | 1,212,583 |
| 10.00%, 1/01/27 | BRL | 2,600,000 | 488,696 |
| 10.00%, 1/01/29 | BRL | 4,157,000 | 761,894 |
| 10.00%, 1/01/31 | BRL | 1,550,000 | 278,342 |
| Brazilian Government International Bond, | | | |
| 4.63%, 1/13/28 | | 300,000 | 292,113 |
| 4.50%, 5/30/29 | | 200,000 | 189,400 |
|
| CSN Resources S.A., 5.87%, 4/08/32(b) | | 275,000 | 244,750 |
| MC Brazil Downstream Trading S.a.r.l., 7.25%, 6/30/31(b) | | 200,000 | 174,000 |
| MV24 Capital B.V., 6.75%, 6/01/34(b) | | 180,614 | 171,159 |
| | | | 3,812,937 |
| Canada – 1.1% |
| 1011778 B.C. ULC/New Red Finance, Inc., 3.88%, 1/15/28(b) | | 335,000 | 308,200 |
| Baytex Energy Corp., 8.75%, 4/01/27(b) | | 170,000 | 179,722 |
| Bombardier, Inc., | | | |
| 7.12%, 6/15/26(b) | | 320,000 | 294,400 |
| 6.00%, 2/15/28(b) | | 90,000 | 77,850 |
|
| Brookfield Residential Properties, Inc./Brookfield Residential U.S. LLC, 4.88%, 2/15/30(b) | | 120,000 | 100,200 |
| GFL Environmental, Inc., 4.00%, 8/01/28(b) | | 80,000 | 70,400 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Canada (Continued) |
|
| Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC, 6.00%, 9/15/28(b) | | $ 80,000 | $ 75,200 |
| MEG Energy Corp., | | | |
| 7.12%, 2/01/27(b) | | 175,000 | 177,712 |
| 5.88%, 2/01/29(b) | | 65,000 | 63,627 |
| Methanex Corp., | | | |
| 5.13%, 10/15/27 | | 85,000 | 81,600 |
| 5.25%, 12/15/29 | | 15,000 | 14,250 |
|
| Open Text Corp., 3.88%, 12/01/29(b) | | 200,000 | 177,732 |
| Parkland Corp., 5.88%, 7/15/27(b) | | 80,000 | 77,576 |
| Precision Drilling Corp., | | | |
| 7.12%, 1/15/26(b) | | 5,000 | 5,014 |
| 6.87%, 1/15/29(b) | | 55,000 | 53,363 |
|
| Strathcona Resources Ltd., 6.87%, 8/01/26(b) | | 80,000 | 77,400 |
| Telesat Canada/Telesat LLC, 5.63%, 12/06/26(b) | | 65,000 | 46,406 |
| | | | 1,880,652 |
| Chile – 0.9% |
| AES Andes S.A., (5Y USD Swap Rate + 4.64%), 7.12%, 3/26/79(b)(i) | | 200,000 | 194,002 |
| Bonos de la Tesoreria de la Republica en pesos, | | | |
| 5.80%, 6/01/24(b) | CLP | 105,000,000 | 119,883 |
| 2.50%, 3/01/25 | CLP | 45,000,000 | 46,718 |
| 5.00%, 10/01/28(b) | CLP | 95,000,000 | 101,594 |
| 5.00%, 3/01/35 | CLP | 55,000,000 | 56,081 |
| Chile Government International Bond, | | | |
| 2.55%, 1/27/32 | | 790,000 | 685,388 |
| 2.55%, 7/27/33 | | 200,000 | 166,712 |
| 3.50%, 1/31/34 | | 200,000 | 181,100 |
| | | | 1,551,478 |
| China – 2.0% |
| Agile Group Holdings Ltd., 6.05%, 10/13/25 | | 205,000 | 67,189 |
| Agricultural Development Bank of China, | | | |
| 2.25%, 4/22/25 | CNY | 1,100,000 | 163,637 |
| 3.75%, 1/25/29 | CNY | 2,860,000 | 448,479 |
|
| China Development Bank, 4.88%, 2/09/28(k) | CNY | 970,000 | 160,282 |
| China Evergrande Group, 8.75%, 6/28/25 | | 200,000 | 22,000 |
| | | Par (a) | Value |
| China (Continued) |
| China Government Bond, | | | |
| 2.85%, 6/04/27 | CNY | $ 4,650,000 | $ 705,589 |
| 3.28%, 12/03/27 | CNY | 2,220,000 | 344,591 |
| 3.27%, 11/19/30 | CNY | 7,560,000 | 1,174,635 |
|
| Fantasia Holdings Group Co. Ltd., 11.87%, 6/01/23(k) | | 200,000 | 32,000 |
| Global Aircraft Leasing Co. Ltd., (100% Cash), 6.50%, 9/15/24(b)(j) | | 75,000 | 64,686 |
| Kaisa Group Holdings Ltd., 9.38%, 6/30/24(k) | | 200,000 | 40,550 |
| Sunac China Holdings Ltd., 6.50%, 1/26/26 | | 200,000 | 42,300 |
| Times China Holdings Ltd., 6.20%, 3/22/26 | | 215,000 | 91,375 |
| Yuzhou Group Holdings Co. Ltd., 6.35%, 1/13/27 | | 200,000 | 26,000 |
| Zhenro Properties Group Ltd., 6.63%, 1/07/26(k) | | 200,000 | 17,000 |
| | | | 3,400,313 |
| Colombia – 1.6% |
| AI Candelaria Spain S.A., 5.75%, 6/15/33(b) | | 250,000 | 208,125 |
| Colombia Government International Bond, | | | |
| 3.13%, 4/15/31 | | 200,000 | 155,754 |
| 4.13%, 2/22/42 | | 200,000 | 139,700 |
| Colombian TES, | | | |
| 7.50%, 8/26/26 | COP | 2,578,400,000 | 600,110 |
| 6.00%, 4/28/28 | COP | 1,215,100,000 | 251,908 |
| 7.75%, 9/18/30 | COP | 659,900,000 | 144,583 |
| 7.00%, 6/30/32 | COP | 3,035,500,000 | 611,121 |
| Ecopetrol S.A., | | | |
| 4.62%, 11/02/31 | | 85,000 | 71,018 |
| 5.87%, 11/02/51 | | 230,000 | 175,087 |
|
| Gran Tierra Energy International Holdings Ltd., 6.25%, 2/15/25 | | 200,000 | 184,002 |
| Millicom International Cellular S.A., 5.12%, 1/15/28 | | 180,000 | 169,650 |
| | | | 2,711,058 |
| Costa Rica – 0.1% |
| Instituto Costarricense de Electricidad, 6.75%, 10/07/31(b) | | 200,000 | 199,290 |
| Czech Republic – 0.9% |
| Czech Republic Government Bond, | | | |
| 1.25%, 2/14/25 | CZK | 8,090,000 | 312,940 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Czech Republic (Continued) |
| Czech Republic Government Bond, | | | |
| 1.00%, 6/26/26 | CZK | $ 6,500,000 | $ 240,120 |
| 2.75%, 7/23/29 | CZK | 8,230,000 | 317,630 |
| 0.95%, 5/15/30 | CZK | 8,670,000 | 289,293 |
| 2.00%, 10/13/33 | CZK | 12,340,000 | 423,173 |
| | | | 1,583,156 |
| Dominican Republic – 0.8% |
| Dominican Republic International Bond, | | | |
| 5.50%, 2/22/29(b) | | 150,000 | 140,175 |
| 4.50%, 1/30/30(b) | | 390,000 | 335,670 |
| 4.87%, 9/23/32(b) | | 480,000 | 403,118 |
| 6.00%, 2/22/33(b) | | 350,000 | 317,496 |
| 5.30%, 1/21/41(b) | | 150,000 | 118,277 |
| | | | 1,314,736 |
| Ecuador – 0.3% |
| Ecuador Government International Bond, | | | |
| (Step to 5.50% on 7/31/22), 5.00%, 7/31/30(d) | | 387,610 | 314,236 |
| (Step to 2.50% on 7/31/22), 1.00%, 7/31/35(b)(d) | | 454,407 | 283,327 |
| | | | 597,563 |
| Egypt – 0.8% |
| Egypt Government Bond, 14.06%, 1/12/26 | EGP | 5,010,000 | 266,163 |
| Egypt Government International Bond, | | | |
| 6.59%, 2/21/28 | | 275,000 | 230,103 |
| 7.60%, 3/01/29 | | 225,000 | 192,251 |
| 7.05%, 1/15/32(b) | | 360,000 | 277,095 |
| 7.30%, 9/30/33 | | 200,000 | 150,799 |
|
| Energean PLC, 6.50%, 4/30/27(b) | | 200,000 | 187,900 |
| | | | 1,304,311 |
| El Salvador – 0.1% |
| El Salvador Government International Bond, | | | |
| 6.38%, 1/18/27 | | 230,000 | 94,206 |
| 8.25%, 4/10/32 | | 210,000 | 85,050 |
| | | | 179,256 |
| France – 0.1% |
| Altice France S.A., 5.13%, 1/15/29(b) | | 290,000 | 246,090 |
| | | Par (a) | Value |
| Gabon – 0.1% |
| Gabon Government International Bond, 6.63%, 2/06/31 | | $ 200,000 | $ 181,093 |
| Germany – 0.3% |
| Cheplapharm Arzneimittel GmbH, 5.50%, 1/15/28(b) | | 200,000 | 191,482 |
| Deutsche Bank A.G., (5Y USD Swap Rate + 2.55%), 4.88%, 12/01/32(i) | | 400,000 | 366,632 |
| | | | 558,114 |
| Ghana – 0.1% |
| Ghana Government International Bond, | | | |
| 7.88%, 2/11/35 | | 200,000 | 118,900 |
| 8.87%, 5/07/42 | | 200,000 | 119,038 |
| | | | 237,938 |
| Guatemala – 0.3% |
| Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL, 5.25%, 4/27/29(b) | | 185,000 | 175,763 |
| CT Trust, 5.13%, 2/03/32(b) | | 200,000 | 186,320 |
| Guatemala Government Bond, 3.70%, 10/07/33(b) | | 200,000 | 171,563 |
| | | | 533,646 |
| Hong Kong – 0.1% |
| Melco Resorts Finance Ltd., 5.75%, 7/21/28(b) | | 200,000 | 168,058 |
| Hungary – 0.8% |
| Hungary Government Bond, | | | |
| 6.00%, 11/24/23 | HUF | 101,530,000 | 280,527 |
| 2.50%, 10/24/24 | HUF | 84,270,000 | 212,028 |
| 1.00%, 11/26/25 | HUF | 131,020,000 | 297,504 |
| 3.00%, 10/27/27 | HUF | 62,670,000 | 143,404 |
| 3.25%, 10/22/31 | HUF | 91,050,000 | 190,701 |
| 3.00%, 10/27/38 | HUF | 23,570,000 | 41,714 |
|
| Hungary Government International Bond, 3.12%, 9/21/51(b) | | 200,000 | 137,839 |
| | | | 1,303,717 |
| India – 0.4% |
| Clean Renewable Power Mauritius Pte. Ltd., 4.25%, 3/25/27(b) | | 196,000 | 179,830 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| India (Continued) |
| India Green Power Holdings, 4.00%, 2/22/27(b) | | $ 200,000 | $ 173,160 |
| JSW Steel Ltd., 3.95%, 4/05/27(b) | | 345,000 | 307,331 |
| | | | 660,321 |
| Indonesia – 3.3% |
| Freeport Indonesia PT, 5.32%, 4/14/32(b) | | 400,000 | 387,000 |
| Indonesia Asahan Aluminium Persero PT, | | | |
| 4.75%, 5/15/25(b) | | 400,000 | 400,048 |
| 6.53%, 11/15/28(b) | | 200,000 | 217,846 |
| 5.45%, 5/15/30(b) | | 300,000 | 300,918 |
| Indonesia Treasury Bond, | | | |
| 8.37%, 3/15/24 | IDR | 2,716,000,000 | 196,913 |
| 6.50%, 6/15/25 | IDR | 5,438,000,000 | 382,420 |
| 8.37%, 9/15/26 | IDR | 5,700,000,000 | 422,672 |
| 6.13%, 5/15/28 | IDR | 4,200,000,000 | 281,987 |
| 9.00%, 3/15/29 | IDR | 8,223,000,000 | 633,298 |
| 7.00%, 9/15/30 | IDR | 5,360,000,000 | 368,789 |
| 6.50%, 2/15/31 | IDR | 6,870,000,000 | 457,433 |
| 7.50%, 8/15/32 | IDR | 5,944,000,000 | 419,712 |
| 8.37%, 3/15/34 | IDR | 3,453,000,000 | 259,237 |
| 7.50%, 6/15/35 | IDR | 3,930,000,000 | 275,418 |
| Perusahaan Penerbit SBSN Indonesia III, | | | |
| 4.15%, 3/29/27 | | 300,000 | 303,903 |
| 2.55%, 6/09/31 | | 200,000 | 179,300 |
| 3.55%, 6/09/51(b) | | 200,000 | 166,568 |
| | | | 5,653,462 |
| Iraq – 0.3% |
| Iraq International Bond, 5.80%, 1/15/28 | | 585,000 | 565,217 |
| Israel – 1.1% |
| Energean Israel Finance Ltd., | | | |
| 4.88%, 3/30/26(b) | | 30,000 | 27,882 |
| 5.37%, 3/30/28(b) | | 65,000 | 59,893 |
| 5.87%, 3/30/31(b) | | 295,000 | 265,866 |
| Leviathan Bond Ltd., | | | |
| 6.50%, 6/30/27(b) | | 115,000 | 113,748 |
| 6.75%, 6/30/30(b) | | 340,000 | 333,974 |
|
| Teva Pharmaceutical Finance Co. LLC, 6.15%, 2/01/36 | | 50,000 | 47,244 |
| Teva Pharmaceutical Finance Netherlands III B.V., 4.10%, 10/01/46 | | 1,377,000 | 983,770 |
| | | | 1,832,377 |
| | | Par (a) | Value |
| Italy – 0.2% |
| Telecom Italia Capital S.A., | | | |
| 6.38%, 11/15/33 | | $ 60,000 | $ 52,425 |
| 6.00%, 9/30/34 | | 10,000 | 8,553 |
| 7.20%, 7/18/36 | | 39,000 | 35,180 |
|
| UniCredit S.p.A., (5Y US Treasury CMT + 4.75%), 5.46%, 6/30/35(b)(i) | | 200,000 | 180,458 |
| | | | 276,616 |
| Ivory Coast – 0.1% |
| Ivory Coast Government International Bond, | | | |
| 4.88%, 1/30/32(b) | EUR | 100,000 | 88,980 |
| 6.87%, 10/17/40(b) | EUR | 175,000 | 156,304 |
| | | | 245,284 |
| Japan – 0.3% |
| SoftBank Group Corp., 4.63%, 7/06/28 | | 605,000 | 521,445 |
| Kazakhstan – 0.3% |
| KazMunayGas National Co. JSC, 3.50%, 4/14/33(b) | | 725,000 | 599,938 |
| Lebanon – 0.1% |
| Lebanon Government International Bond, 8.25%, 5/17/34(k) | | 1,024,000 | 119,900 |
| Luxembourg – 0.2% |
| Altice Financing S.A., 5.00%, 1/15/28(b) | | 240,000 | 200,335 |
| ARD Finance S.A., (100% Cash), 6.50%, 6/30/27(b)(j) | | 200,000 | 168,000 |
| | | | 368,335 |
| Macau – 0.3% |
| MGM China Holdings Ltd., 4.75%, 2/01/27(b) | | 200,000 | 168,000 |
| Studio City Finance Ltd., 5.00%, 1/15/29(b) | | 200,000 | 138,000 |
| Wynn Macau Ltd., 5.13%, 12/15/29(b) | | 200,000 | 157,672 |
| | | | 463,672 |
| Malaysia – 1.8% |
| Malaysia Government Bond, | | | |
| 4.18%, 7/15/24 | MYR | 1,667,000 | 388,531 |
| 3.95%, 9/15/25 | MYR | 1,720,000 | 397,342 |
| 3.90%, 11/30/26 | MYR | 1,000,000 | 229,564 |
| 3.90%, 11/16/27 | MYR | 3,201,000 | 722,103 |
| 3.73%, 6/15/28 | MYR | 2,174,000 | 482,644 |
| 3.88%, 8/15/29 | MYR | 1,429,000 | 315,809 |
| 3.76%, 5/22/40 | MYR | 778,000 | 153,122 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Malaysia (Continued) |
|
| Malaysia Government Investment Issue, 3.47%, 10/15/30 | MYR | $ 1,720,000 | $ 367,630 |
| | | | 3,056,745 |
| Mexico – 4.2% |
| America Movil S.A.B. de C.V., 5.37%, 4/04/32(b) | | 200,000 | 182,042 |
| Banco Mercantil del Norte S.A., (5Y US Treasury CMT + 4.64%), 5.87%, 1/24/27(b)(h)(i) | | 200,000 | 179,030 |
| Braskem Idesa SAPI, 6.99%, 2/20/32(b) | | 200,000 | 179,474 |
| Cemex S.A.B. de C.V., | | | |
| (5Y US Treasury CMT + 4.53%), 5.13%, 6/08/26(b)(h)(i) | | 260,000 | 237,486 |
| 3.88%, 7/11/31(b) | | 490,000 | 415,623 |
|
| Comision Federal de Electricidad, 4.69%, 5/15/29(b) | | 200,000 | 184,704 |
| Electricidad Firme de Mexico Holdings S.A. de C.V., 4.90%, 11/20/26(b) | | 200,000 | 177,000 |
| Mexican Bonos, | | | |
| 10.00%, 12/05/24 | MXN | 9,030,000 | 452,089 |
| 5.75%, 3/05/26 | MXN | 13,387,900 | 586,087 |
| 7.50%, 6/03/27 | MXN | 16,013,000 | 736,080 |
| 8.50%, 5/31/29 | MXN | 15,877,400 | 755,376 |
| 7.75%, 5/29/31 | MXN | 11,596,500 | 521,477 |
| 10.00%, 11/20/36 | MXN | 1,346,500 | 70,473 |
| 8.50%, 11/18/38 | MXN | 13,050,000 | 604,575 |
| Mexico Government International Bond, | | | |
| 3.50%, 2/12/34 | | 200,000 | 169,008 |
| 4.40%, 2/12/52 | | 200,000 | 159,510 |
|
| Nemak S.A.B. de C.V., 3.63%, 6/28/31(b) | | 200,000 | 163,200 |
| Petroleos Mexicanos, | | | |
| 6.50%, 1/23/29 | | 150,000 | 138,000 |
| 5.95%, 1/28/31 | | 677,000 | 569,560 |
| 6.62%, 6/15/35 | | 619,000 | 502,009 |
| 7.69%, 1/23/50 | | 445,000 | 347,710 |
| | | | 7,330,513 |
| Morocco – 0.1% |
| OCP S.A., 3.75%, 6/23/31 | | 200,000 | 169,779 |
| Netherlands – 0.2% |
| UPC Broadband Finco B.V., 4.88%, 7/15/31(b) | | 220,000 | 193,325 |
| Ziggo Bond Co. B.V., 6.00%, 1/15/27(b) | | 185,000 | 181,300 |
| | | | 374,625 |
| | | Par (a) | Value |
| Nigeria – 0.7% |
| IHS Holding Ltd., 5.63%, 11/29/26(b) | | $ 200,000 | $ 190,000 |
| IHS Netherlands Holdco B.V., 8.00%, 9/18/27 | | 200,000 | 202,180 |
| Nigeria Government International Bond, | | | |
| 6.12%, 9/28/28(b) | | 350,000 | 299,250 |
| 7.37%, 9/28/33 | | 300,000 | 240,004 |
| 7.70%, 2/23/38(b) | | 390,000 | 293,054 |
| | | | 1,224,488 |
| Oman – 0.8% |
| Oman Government International Bond, 6.25%, 1/25/31(b) | | 315,000 | 320,538 |
| OQ SAOC, 5.13%, 5/06/28 | | 1,050,000 | 1,022,033 |
| | | | 1,342,571 |
| Pakistan – 0.2% |
| Pakistan Government International Bond, 6.88%, 12/05/27 | | 335,000 | 275,096 |
| Panama – 0.7% |
| Panama Government International Bond, | | | |
| 3.16%, 1/23/30 | | 600,000 | 544,056 |
| 2.25%, 9/29/32 | | 750,000 | 600,022 |
| 3.87%, 7/23/60 | | 200,000 | 148,834 |
| | | | 1,292,912 |
| Paraguay – 0.2% |
| Paraguay Government International Bond, | | | |
| 2.74%, 1/29/33 | | 200,000 | 162,446 |
| 5.60%, 3/13/48 | | 300,000 | 270,841 |
| | | | 433,287 |
| Peru – 1.1% |
| Peru Government Bond, | | | |
| 5.94%, 2/12/29 | PEN | 370,000 | 87,126 |
| 6.15%, 8/12/32 | PEN | 1,150,000 | 261,568 |
| 5.35%, 8/12/40 | PEN | 474,000 | 90,039 |
| Peruvian Government International Bond, | | | |
| 8.20%, 8/12/26 | | 800,000 | 217,695 |
| 6.35%, 8/12/28 | PEN | 675,000 | 164,226 |
| 2.78%, 1/23/31 | | 250,000 | 216,593 |
| 3.00%, 1/15/34 | | 590,000 | 491,329 |
| 6.90%, 8/12/37 | PEN | 700,000 | 161,356 |
| 3.30%, 3/11/41 | | 300,000 | 234,540 |
|
| Volcan Cia Minera S.A.A., 4.38%, 2/11/26(b) | | 30,000 | 26,850 |
| | | | 1,951,322 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Philippines – 0.4% |
| Philippine Government International Bond, | | | |
| 1.95%, 1/06/32 | | $ 400,000 | $ 336,688 |
| 3.20%, 7/06/46 | | 350,000 | 275,433 |
| | | | 612,121 |
| Poland – 1.4% |
| Republic of Poland Government Bond, | | | |
| 4.00%, 10/25/23 | PLN | 680,000 | 148,559 |
| 2.50%, 4/25/24 | PLN | 2,105,000 | 439,960 |
| 2.50%, 7/25/26 | PLN | 3,093,000 | 588,920 |
| 2.50%, 7/25/27 | PLN | 3,491,000 | 645,917 |
| 2.75%, 10/25/29 | PLN | 1,439,000 | 255,786 |
| 1.25%, 10/25/30 | PLN | 2,180,000 | 333,999 |
| | | | 2,413,141 |
| Qatar – 1.2% |
| Qatar Energy, | | | |
| 1.38%, 9/12/26 | | 200,000 | 181,181 |
| 2.25%, 7/12/31(b) | | 600,000 | 523,500 |
| 3.13%, 7/12/41(b) | | 625,000 | 522,025 |
| 3.30%, 7/12/51(b) | | 200,000 | 165,952 |
|
| Qatar Government International Bond, 3.75%, 4/16/30(b) | | 600,000 | 606,343 |
| | | | 1,999,001 |
| Romania – 0.9% |
| Romania Government Bond, | | | |
| 4.25%, 6/28/23 | RON | 1,685,000 | 353,729 |
| 3.25%, 4/29/24 | RON | 1,325,000 | 268,820 |
| 3.25%, 6/24/26 | RON | 1,625,000 | 305,044 |
| 5.00%, 2/12/29 | RON | 1,050,000 | 200,082 |
| Romanian Government International Bond, | | | |
| 3.00%, 2/27/27(b) | | 320,000 | 297,207 |
| 3.00%, 2/14/31(b) | | 114,000 | 97,121 |
| | | | 1,522,003 |
| Saudi Arabia – 1.4% |
| KSA Sukuk Ltd., 2.25%, 5/17/31 | | 300,000 | 267,445 |
| SA Global Sukuk Ltd., 1.60%, 6/17/26 | | 425,000 | 391,569 |
| Saudi Arabian Oil Co., | | | |
| 2.88%, 4/16/24 | | 550,000 | 544,062 |
| 4.25%, 4/16/39 | | 200,000 | 190,676 |
| Saudi Government International Bond, | | | |
| 3.25%, 10/26/26 | | 525,000 | 523,057 |
| | | Par (a) | Value |
| Saudi Arabia (Continued) |
| Saudi Government International Bond, | | | |
| 2.25%, 2/02/33(b) | | $ 400,000 | $ 346,846 |
| 3.45%, 2/02/61 | | 200,000 | 160,298 |
| | | | 2,423,953 |
| Senegal – 0.1% |
| Senegal Government International Bond, 5.38%, 6/08/37(b) | EUR | 160,000 | 131,151 |
| South Africa – 3.4% |
| Eskom Holdings SOC Ltd., | | | |
| 7.13%, 2/11/25 | | 225,000 | 214,815 |
| 4.31%, 7/23/27 | | 200,000 | 181,503 |
| 8.45%, 8/10/28 | | 200,000 | 192,979 |
| 6.35%, 8/10/28 | | 400,000 | 395,926 |
| Republic of South Africa Government Bond, | | | |
| 10.50%, 12/21/26 | ZAR | 3,654,517 | 250,711 |
| 8.00%, 1/31/30 | ZAR | 21,185,369 | 1,202,573 |
| 7.00%, 2/28/31 | ZAR | 9,175,658 | 474,520 |
| 8.25%, 3/31/32 | ZAR | 21,000,000 | 1,159,537 |
| 8.87%, 2/28/35 | ZAR | 9,884,022 | 545,921 |
| 8.50%, 1/31/37 | ZAR | 12,324,445 | 645,296 |
| Republic of South Africa Government International Bond, | | | |
| 4.85%, 9/30/29 | | 200,000 | 183,964 |
| 7.30%, 4/20/52 | | 200,000 | 187,040 |
|
| Sasol Financing U.S.A. LLC, 5.50%, 3/18/31 | | 200,000 | 180,000 |
| | | | 5,814,785 |
| Sri Lanka – 0.2% |
| Sri Lanka Government International Bond, | | | |
| 6.20%, 5/11/27(k) | | 275,000 | 116,017 |
| 6.75%, 4/18/28(k) | | 400,000 | 168,636 |
| | | | 284,653 |
| Switzerland – 0.1% |
| Consolidated Energy Finance S.A., 6.50%, 5/15/26(b) | | 150,000 | 153,188 |
| Tanzania, United Republic of – 0.1% |
| HTA Group Ltd., 7.00%, 12/18/25(b) | | 255,000 | 251,940 |
| Thailand – 2.1% |
| GC Treasury Center Co. Ltd., 5.20%, 3/30/52(b) | | 200,000 | 188,034 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Thailand (Continued) |
| Krung Thai Bank PCL, (5Y US Treasury CMT + 3.53%), 4.40%, 3/25/26(h)(i) | | $ 300,000 | $ 279,000 |
| Thailand Government Bond, | | | |
| 0.75%, 6/17/24 | THB | 14,600,000 | 419,780 |
| 1.00%, 6/17/27 | THB | 27,300,000 | 746,753 |
| 2.87%, 12/17/28 | THB | 29,638,000 | 882,680 |
| 2.00%, 12/17/31 | THB | 24,176,000 | 663,349 |
| 1.59%, 12/17/35 | THB | 7,400,000 | 175,861 |
| 3.30%, 6/17/38 | THB | 8,000,000 | 225,460 |
| | | | 3,580,917 |
| Turkey – 0.7% |
| Turkey Government International Bond, | | | |
| 8.60%, 9/24/27 | | 575,000 | 581,040 |
| 6.12%, 10/24/28 | | 400,000 | 357,253 |
| 5.88%, 6/26/31 | | 355,000 | 293,715 |
| | | | 1,232,008 |
| Ukraine – 0.2% |
| NPC Ukrenergo, 6.88%, 11/09/26(b)(g) | | 200,000 | 66,000 |
| Ukraine Government International Bond, | | | |
| 7.75%, 9/01/27 | | 380,000 | 128,201 |
| 7.25%, 3/15/33 | | 280,000 | 90,405 |
| | | | 284,606 |
| United Arab Emirates – 0.8% |
| Abu Dhabi Government International Bond, 3.12%, 9/30/49 | | 200,000 | 165,638 |
| DP World Salaam, (5Y US Treasury CMT + 5.75%), 6.00%, 10/01/25(h)(i) | | 200,000 | 203,353 |
| Galaxy Pipeline Assets Bidco Ltd., | | | |
| 2.16%, 3/31/34(b) | | 192,172 | 168,967 |
| 2.63%, 3/31/36(b) | | 400,000 | 334,419 |
| 2.94%, 9/30/40(b) | | 221,087 | 184,621 |
|
| UAE International Government Bond, 2.87%, 10/19/41(b) | | 400,000 | 335,092 |
| | | | 1,392,090 |
| United Kingdom – 0.4% |
| Connect Finco S.a.r.l./Connect U.S. Finco LLC, 6.75%, 10/01/26(b) | | 200,000 | 194,500 |
| | | Par (a) | Value |
| United Kingdom (Continued) |
| Jaguar Land Rover Automotive PLC, 5.50%, 7/15/29(b) | | $ 200,000 | $ 166,472 |
| Virgin Media Secured Finance PLC, 5.50%, 5/15/29(b) | | 450,000 | 416,250 |
| | | | 777,222 |
| Uruguay – 0.4% |
| Uruguay Government International Bond, | | | |
| 4.38%, 1/23/31 | | 418,136 | 428,598 |
| 4.48%, 7/02/40 | UYU | 7,000,000 | 221,571 |
| 4.97%, 4/20/55 | | 59,844 | 61,199 |
| | | | 711,368 |
| Zambia – 0.5% |
| First Quantum Minerals Ltd., 6.88%, 3/01/26(b) | | 800,000 | 802,000 |
| Zambia Government International Bond, 8.50%, 4/14/24(k) | | 200,000 | 150,662 |
| | | | 952,662 |
Total Foreign Issuer Bonds
(Cost $87,932,532) | 77,697,756 |
|
| Mortgage-Backed Securities – 0.8% |
| Commercial Mortgage-Backed Securities – 0.8% |
| Citigroup Commercial Mortgage Trust, Series 2014-GC21, Class D, 5.11%, 5/10/47(b)(l) | | 175,000 | 162,654 |
| Commercial Mortgage Trust, Series 2012-CR3, Class B, 3.92%, 10/15/45(b) | | 100,000 | 95,028 |
| GS Mortgage Securities Trust, | | | |
| Series 2011-GC5, Class D, 5.30%, 8/10/44(b)(l) | | 315,000 | 137,025 |
| Series 2011-GC5, Class C, 5.30%, 8/10/44(b)(l) | | 35,000 | 30,986 |
| Series 2013-GC13, Class C, 4.20%, 7/10/46(b)(l) | | 320,000 | 295,196 |
| Series 2014-GC22, Class D, 4.84%, 6/10/47(b)(l) | | 50,000 | 45,153 |
|
| JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class C, 5.36%, 2/15/46(b) | | 100,000 | 96,339 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
|
| Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class B, 4.50%, 8/15/46(l) | | $110,000 | $ 80,856 |
| MSBAM Commercial Mortgage Securities Trust, Series 2012-CKSV, Class C, 4.42%, 10/15/30(b)(l) | | 100,000 | 90,030 |
| Wells Fargo Commercial Mortgage Trust, | | | |
| Series 2014-LC16, Class C, 4.46%, 8/15/50 | | 75,000 | 46,643 |
| Series 2016-C36, Class C, 4.31%, 11/15/59(l) | | 45,000 | 37,166 |
| WFRBS Commercial Mortgage Trust, | | | |
| Series 2011-C3, Class D, 5.42%, 3/15/44(b)(l) | | 173,663 | 75,543 |
| Series 2012-C7, Class D, 4.79%, 6/15/45(b)(l) | | 320,000 | 137,600 |
| Series 2012-C10, Class C, 4.49%, 12/15/45(l) | | 120,000 | 109,888 |
| | | | 1,440,107 |
Total Mortgage-Backed Securities
(Cost $1,773,721) | 1,440,107 |
| | | Number
of Shares | |
| Warrants – 0.0%(e) |
| Engineering & Construction – 0.0%(e) |
| Mcdermott International Ltd., Class A (m)* | | 3,868 | 77 |
| Mcdermott International Ltd., Class B (m)* | | 4,298 | 43 |
| | | | 120 |
Total Warrants
(Cost $6,000) | 120 |
| | | Par (a)/Number
of Shares | Value |
| Short-Term Investments – 6.9% |
| Foreign Issuer Bonds – 0.7% |
| Brazil Letras do Tesouro Nacional, 0.00%, 1/01/23(f) | BRL | 940,000 | $ 175,030 |
| Brazil Notas do Tesouro Nacional, Serie F, 10.00%, 1/01/23 | | 4,572,000 | 906,410 |
| Egypt Treasury Bill, 11.46%, 9/20/22(n) | EGP | 1,300,000 | 67,274 |
| Egypt Treasury Bill, 11.45%, 9/27/22(n) | | 1,300,000 | 67,103 |
| | | | 1,215,817 |
| Money Market Fund – 4.5% |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(o) | | 7,807,018 | 7,807,018 |
| Sovereign – 0.3% |
| Malaysia Government Bond, 3.48%, 3/15/23 | MYR | 2,030,000 | 470,207 |
| U.S. Treasury Notes – 1.4% |
| U.S. Treasury Notes, 0.50%, 3/15/23 | | 625,000 | 617,017 |
| U.S. Treasury Notes, 0.13%, 3/31/23 | | 1,425,000 | 1,400,118 |
| U.S. Treasury Notes, 0.25%, 4/15/23 | | 305,000 | 299,639 |
| | | | 2,316,774 |
Total Short-Term Investments
(Cost $11,811,039) | 11,809,816 |
Total Investments – 77.8%
(Cost $148,825,556) | 133,949,475 |
| Other Assets less Liabilities – 22.2%(p) | 38,326,793 |
| NET ASSETS – 100.0% | $172,276,268 |
| Percentages shown are based on Net Assets. |
| |
| (a) | Par value is in USD unless otherwise indicated. | | |
| (b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. | | |
| (c) | Variable rate security. Rate as of April 30, 2022 is disclosed. | | |
| (d) | Step coupon bond. Rate as of April 30, 2022 is disclosed. | | |
| (e) | Amount rounds to less than 0.05%. | | |
| (f) | Zero coupon bond. | | |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| (g) | Restricted security that has been deemed illiquid. At April 30, 2022, the value of these restricted illiquid securities amounted to $339,270 or 0.20% of net assets. Additional information on these restricted illiquid securities is as follows: | | |
| | Security | Acquisition Date | Acquisition Cost |
| | 2020 Cash Mandatory Exchangeable Trust | 5/06/21 | $ 305,140 |
| | NPC Ukrenergo, 6.88%, 11/9/26 | 11/08/21 | 203,750 |
| |
|
| (h) | Perpetual bond. Maturity date represents next call date. |
| (i) | Variable rate security. Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate as of April 30, 2022 is disclosed. |
| (j) | Distributions from this security are a made via payments in-kind (PIK) unless otherwise noted in the description. |
| (k) | Issuer has defaulted on terms of debt obligation. |
| (l) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate as of April 30, 2022 is disclosed. |
| (m) | Investment is valued using significant unobservable inputs (Level 3). |
| (n) | Discount rate at the time of purchase. |
| (o) | 7-day current yield as of April 30, 2022 is disclosed. |
| (p) | Includes appreciation/ (depreciation) on forward foreign currency exchange contracts and swap contracts. |
| * | Non-Income Producing Security |
| Abbreviations: | |
| 3M | 3 Month |
| 5Y | 5 Year |
| BRL | Brazilian Real |
| CLO | Collateralized Loan Obligation |
| CLP | Chilean Peso |
| CMT | Constant Maturity |
| CNY | Chinese Offshore Yuan |
| COP | Colombian Peso |
| CP | Commercial Paper |
| CVR | Contingent Value Rights |
| CZK | Czech Republic Koruna |
| EGP | Egyptian Pound |
| EUR | Euro |
| HUF | Hungarian Forint |
| IDR | Indonesian Rupiah |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| MXN | Mexican Peso |
| MYR | Malaysian Ringgit |
| PCL | Public Company Limited |
| PEN | Peruvian Nuevo Sole |
| PLC | Public Limited Company |
| PLN | Polish Zloty |
| RON | Romania New Leu |
| THB | Thai Baht |
| USD | United States Dollar |
| UYU | Uruguay Peso |
| ZAR | South African Rand |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| Concentration by Currency (%)(a) | |
| U.S. Dollar | 51.3 |
| All other currencies less than 5% | 48.7 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Composition by Type (%)(a) | |
| Non-Government | 46.1 |
| Sovereign | 31.7 |
| Others | 22.2 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 07/20/22 | U.S. Dollars | 985,000 | South African Rand | 15,275,380 | Bank of America | $ 26,319 |
| 05/09/22 | U.S. Dollars | 452,019 | Polish Zloty | 1,925,028 | BNP Paribas | 18,214 |
| 07/20/22 | U.S. Dollars | 150,000 | South African Rand | 2,218,650 | Standard Chartered Bank | 10,758 |
| 06/06/22 | Brazilian Real | 1,119,528 | U.S. Dollars | 213,000 | JPMorgan Chase | 10,711 |
| 05/31/22 | U.S. Dollars | 140,000 | Hungarian Forint | 46,837,000 | Morgan Stanley | 9,937 |
| 05/31/22 | U.S. Dollars | 126,000 | Hungarian Forint | 42,222,600 | Goldman Sachs | 8,750 |
| 07/20/22 | U.S. Dollars | 119,201 | South African Rand | 1,764,169 | JPMorgan Chase | 8,482 |
| 05/09/22 | U.S. Dollars | 98,292 | Polish Zloty | 400,000 | Bank of America | 8,152 |
| 06/06/22 | U.S. Dollars | 230,643 | Brazilian Real | 1,119,528 | BNP Paribas | 6,932 |
| 07/01/22 | U.S. Dollars | 198,076 | Euro | 181,000 | Morgan Stanley | 6,520 |
| 05/09/22 | U.S. Dollars | 235,000 | Polish Zloty | 1,014,730 | Morgan Stanley | 6,331 |
| 05/09/22 | U.S. Dollars | 235,000 | Polish Zloty | 1,016,845 | JPMorgan Chase | 5,854 |
| 07/20/22 | South African Rand | 4,770,982 | U.S. Dollars | 296,700 | State Street | 2,726 |
| 05/09/22 | U.S. Dollars | 53,238 | Polish Zloty | 225,000 | Barclays | 2,534 |
| 07/26/22 | U.S. Dollars | 310,000 | Mexican Peso | 6,407,700 | JPMorgan Chase | 1,337 |
| 06/10/22 | Czech Koruna | 2,207,727 | U.S. Dollars | 93,000 | BNP Paribas | 1,174 |
| 05/24/22 | Mexican Peso | 2,290,494 | U.S. Dollars | 111,000 | Bank of America | 711 |
| 05/24/22 | U.S. Dollars | 125,300 | Chilean Peso | 107,023,742 | Bank of America | 444 |
| Total Unrealized Appreciation | $ 135,886 |
| | | | | | | |
| 05/24/22 | U.S. Dollars | 110,073 | Mexican Peso | 2,290,494 | BNP Paribas | $ (1,637) |
| 07/18/22 | Thai Baht | 17,849,373 | U.S. Dollars | 528,557 | Barclays | (6,517) |
| 05/31/22 | Hungarian Forint | 89,059,600 | U.S. Dollars | 265,361 | BNP Paribas | (18,048) |
| 05/09/22 | Polish Zloty | 1,367,211 | U.S. Dollars | 326,819 | BNP Paribas | (18,718) |
| 05/09/22 | Polish Zloty | 784,392 | U.S. Dollars | 196,000 | Barclays | (19,237) |
| 05/24/22 | Chilean Peso | 280,000,000 | U.S. Dollars | 348,823 | Morgan Stanley | (22,170) |
| 05/09/22 | Polish Zloty | 2,430,000 | U.S. Dollars | 607,584 | Morgan Stanley | (59,983) |
| Total Unrealized Depreciation | $(146,310) |
| Net Unrealized Depreciation | $ (10,424) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
Credit Default Swap Contracts outstanding - Buy Protection at April 30, 2022:
Over the Counter |
| | | | | | | | | |
| Reference Obligation | Fixed
Deal
Pay Rate | Maturity
Date | Counterparty | | Notional
Amount | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Republic of Chile, 3.24%, Due: 02/06/2028 (Pay Quarterly) | 1.00% | 6/20/2027 | Morgan Stanley | USD | 297,046 | $ 271 | $(1,458) | $1,729 |
| United Mexican States, 4.15%, Due: 03/28/2027 (Pay Quarterly) | 1.00% | 6/20/2027 | Barclays | USD | 268,000 | 4,640 | 2,553 | 2,087 |
| Total | | | | | | $4,911 | $ 1,095 | $3,816 |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Multisector Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Asset-Backed Securities | $ — | $ 811,247 | $ — | $ 811,247 |
| Common Stocks | 1,695,853 | 1,256 | — | 1,697,109 |
| Convertible Bonds | — | 2,959,575 | — | 2,959,575 |
| Convertible Preferred Stocks | 114,218 | 273,270 | — | 387,488 |
| Corporate Bonds | — | 36,901,019 | — | 36,901,019 |
| Foreign Government Inflation-Linked Bonds | — | 245,238 | — | 245,238 |
| Foreign Issuer Bonds | — | 77,697,756 | — | 77,697,756 |
| Mortgage-Backed Securities | — | 1,440,107 | — | 1,440,107 |
| Warrants | — | — | 120 | 120 |
| Short-Term Investments | 7,807,018 | 4,002,798 | — | 11,809,816 |
| Total Investments | $9,617,089 | $124,332,266 | $120 | $133,949,475 |
| Morningstar Multisector Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Forward Foreign Currency Exchange Contracts | $— | $ 135,886 | $— | $ 135,886 |
| Swap Agreements | — | 4,911 | — | 4,911 |
| Total Assets - Derivative Financial Instruments | $— | $ 140,797 | $— | $ 140,797 |
| Liabilities: | | | | |
| Forward Foreign Currency Exchange Contracts | $— | $(146,310) | $— | $(146,310) |
| Total Liabilities - Derivative Financial Instruments | $— | $(146,310) | $— | $(146,310) |
| Net Derivative Financial Instruments | $— | $ (5,513) | $— | $ (5,513) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Common Stocks – 50.4% |
| Advertising – 1.4% |
| Dentsu Group, Inc. (Japan) | | 2,800 | $ 100,916 |
| Omnicom Group, Inc. | | 32,213 | 2,452,376 |
| WPP PLC (United Kingdom) | | 13,946 | 173,835 |
| | | | 2,727,127 |
| Aerospace/Defense – 0.2% |
| BAE Systems PLC (United Kingdom) | | 34,152 | 315,450 |
| Agriculture – 0.3% |
| British American Tobacco PLC (United Kingdom) | | 13,907 | 582,875 |
| Japan Tobacco, Inc. (Japan) | | 4,600 | 78,254 |
| | | | 661,129 |
| Apparel – 1.2% |
| Tapestry, Inc. | | 75,479 | 2,484,769 |
| Auto Manufacturers – 0.8% |
| Honda Motor Co. Ltd. (Japan) | | 18,900 | 497,137 |
| Nissan Motor Co. Ltd. (Japan)* | | 38,600 | 154,537 |
| Toyota Motor Corp. (Japan) | | 59,100 | 1,012,602 |
| | | | 1,664,276 |
| Auto Parts & Equipment – 0.4% |
| Bridgestone Corp. (Japan) | | 8,800 | 322,553 |
| Denso Corp. (Japan) | | 2,600 | 158,458 |
| Stanley Electric Co. Ltd. (Japan) | | 7,800 | 134,496 |
| Sumitomo Electric Industries Ltd. (Japan) | | 7,700 | 82,781 |
| | | | 698,288 |
| Banks – 3.8% |
| ABN AMRO Bank N.V. - CVA (Netherlands)(a) | | 6,108 | 75,930 |
| Banco Bilbao Vizcaya Argentaria S.A. (Spain) | | 39,420 | 206,847 |
| Banco del Bajio S.A. (Mexico)(a) | | 22,449 | 55,225 |
| Banco Santander S.A. (Spain) | | 107,118 | 313,036 |
| Barclays PLC (United Kingdom) | | 202,974 | 373,095 |
| BNP Paribas S.A. (France) | | 7,813 | 405,115 |
| CaixaBank S.A. (Spain) | | 24,977 | 80,623 |
| Credit Suisse Group A.G. (Switzerland)(b) | | 11,761 | 79,826 |
| DNB Bank ASA (Norway) | | 4,323 | 83,768 |
| Erste Group Bank A.G. (Austria) | | 3,344 | 104,118 |
| | | Number
of Shares | Value |
| Banks (Continued) |
| Grupo Financiero Banorte S.A.B. de C.V., Class O (Mexico) | | 42,075 | $ 277,318 |
| Grupo Financiero Inbursa S.A.B. de C.V., Class O (Mexico)* | | 21,985 | 37,352 |
| HSBC Holdings PLC (United Kingdom) | | 238,222 | 1,488,680 |
| ING Groep N.V. (Netherlands) | | 35,249 | 333,956 |
| Intesa Sanpaolo S.p.A. (Italy) | | 77,084 | 157,075 |
| KBC Group N.V. (Belgium) | | 1,152 | 78,373 |
| Lloyds Banking Group PLC (United Kingdom) | | 1,037,657 | 589,352 |
| Mitsubishi UFJ Financial Group, Inc. (Japan) | | 51,600 | 299,970 |
| Mizuho Financial Group, Inc. (Japan) | | 7,100 | 86,213 |
| Natwest Group PLC (United Kingdom) | | 105,364 | 282,669 |
| Nordea Bank Abp (Finland) | | 15,095 | 150,499 |
| Regional S.A.B. de C.V. (Mexico) | | 8,692 | 52,463 |
| Resona Holdings, Inc. (Japan) | | 26,700 | 116,103 |
| Skandinaviska Enskilda Banken AB Class A (Sweden) | | 9,939 | 111,457 |
| Standard Chartered PLC (United Kingdom) | | 48,117 | 328,943 |
| Sumitomo Mitsui Financial Group, Inc. (Japan) | | 14,700 | 444,145 |
| Sumitomo Mitsui Trust Holdings, Inc. (Japan) | | 8,500 | 263,819 |
| Svenska Handelsbanken AB, Class A (Sweden) | | 12,493 | 126,008 |
| Swedbank AB, Class A (Sweden) | | 9,534 | 150,821 |
| UBS Group A.G. (Switzerland)(b) | | 19,008 | 322,692 |
| UniCredit S.p.A. (Italy) | | 12,574 | 116,373 |
| | | | 7,591,864 |
| Beverages – 1.1% |
| Anheuser-Busch InBev S.A./N.V. (Belgium) | | 12,152 | 699,220 |
| Arca Continental S.A.B. de C.V. (Mexico) | | 5,114 | 32,496 |
| Asahi Group Holdings Ltd. (Japan) | | 2,100 | 79,155 |
| Becle S.A.B. de C.V. (Mexico) | | 27,817 | 69,329 |
| Coca-Cola Femsa S.A.B. de C.V. (Mexico) | | 12,466 | 68,034 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Beverages (Continued) |
| Diageo PLC (United Kingdom) | | 13,732 | $ 685,074 |
| Fomento Economico Mexicano S.A.B. de C.V. (Mexico) | | 53,925 | 403,331 |
| Kirin Holdings Co. Ltd. (Japan) | | 16,900 | 246,364 |
| | | | 2,283,003 |
| Building Materials – 0.1% |
| Cemex S.A.B. de C.V., Series CPO (Mexico)* | | 153,529 | 67,787 |
| Daikin Industries Ltd. (Japan) | | 1,300 | 198,663 |
| | | | 266,450 |
| Chemicals – 0.3% |
| Nitto Denko Corp. (Japan) | | 2,400 | 161,090 |
| Orbia Advance Corp. S.A.B. de C.V. (Mexico) | | 27,633 | 66,434 |
| Shin-Etsu Chemical Co. Ltd. (Japan) | | 2,700 | 371,073 |
| Toray Industries, Inc. (Japan) | | 15,700 | 74,407 |
| | | | 673,004 |
| Commercial Services – 3.7% |
| Experian PLC (United Kingdom) | | 5,888 | 203,338 |
| H&R Block, Inc. | | 98,690 | 2,572,848 |
| Nielsen Holdings PLC | | 76,220 | 2,043,458 |
| Promotora y Operadora de Infraestructura S.A.B. de C.V. (Mexico) | | 4,209 | 30,833 |
| Recruit Holdings Co. Ltd. (Japan) | | 5,600 | 203,177 |
| RELX PLC (United Kingdom) | | 11,108 | 330,913 |
| Rentokil Initial PLC (United Kingdom) | | 18,587 | 127,661 |
| Secom Co. Ltd. (Japan) | | 26,118 | 1,837,519 |
| | | | 7,349,747 |
| Computers – 0.2% |
| Cognizant Technology Solutions Corp., Class A | | 4,960 | 401,264 |
| Cosmetics/Personal Care – 0.5% |
| Kao Corp. (Japan) | | 7,000 | 280,549 |
| Unilever PLC (United Kingdom) | | 15,225 | 707,812 |
| | | | 988,361 |
| Distribution/Wholesale – 0.6% |
| Bunzl PLC (United Kingdom) | | 3,467 | 133,759 |
| Ferguson PLC | | 1,081 | 135,610 |
| | | Number
of Shares | Value |
| Distribution/Wholesale (Continued) |
| ITOCHU Corp. (Japan) | | 12,900 | $ 389,335 |
| Mitsubishi Corp. (Japan) | | 9,000 | 302,180 |
| Mitsui & Co. Ltd. (Japan) | | 12,300 | 297,854 |
| | | | 1,258,738 |
| Diversified Financial Services – 1.5% |
| Bolsa Mexicana de Valores S.A.B. de C.V. (Mexico) | | 18,694 | 37,422 |
| Daiwa Securities Group, Inc. (Japan) | | 17,300 | 84,790 |
| Deutsche Boerse A.G. (Germany) | | 1,246 | 216,922 |
| Japan Exchange Group, Inc. (Japan) | | 3,900 | 58,073 |
| Julius Baer Group Ltd. (Switzerland) | | 2,488 | 118,896 |
| London Stock Exchange Group PLC (United Kingdom) | | 4,933 | 486,353 |
| ORIX Corp. (Japan) | | 9,400 | 171,446 |
| St James's Place PLC (United Kingdom) | | 16,062 | 258,110 |
| Visa, Inc., Class A | | 7,695 | 1,640,035 |
| | | | 3,072,047 |
| Electric – 0.7% |
| Chubu Electric Power Co., Inc. (Japan) | | 17,000 | 171,616 |
| Electric Power Development Co. Ltd. (Japan) | | 7,000 | 95,920 |
| National Grid PLC (United Kingdom) | | 70,547 | 1,048,115 |
| SSE PLC (United Kingdom) | | 5,899 | 137,009 |
| | | | 1,452,660 |
| Electrical Component & Equipment – 0.0%(c) |
| Casio Computer Co. Ltd. (Japan) | | 6,300 | 65,330 |
| Electronics – 0.5% |
| Hoya Corp. (Japan) | | 1,300 | 129,015 |
| Kyocera Corp. (Japan) | | 3,200 | 168,022 |
| Murata Manufacturing Co. Ltd. (Japan) | | 4,900 | 292,077 |
| Nidec Corp. (Japan) | | 1,700 | 109,903 |
| TDK Corp. (Japan) | | 8,100 | 250,223 |
| | | | 949,240 |
| Engineering & Construction – 1.3% |
| Ferrovial S.A. (Spain) | | 62,292 | 1,597,439 |
| Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (Mexico) | | 12,025 | 83,807 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Engineering & Construction (Continued) |
| Grupo Aeroportuario del Pacifico S.A.B. de C.V., Class B (Mexico)* | | 7,247 | $ 111,646 |
| Grupo Aeroportuario del Sureste S.A.B. de C.V., Class B (Mexico) | | 4,760 | 103,800 |
| Vinci S.A. (France) | | 8,083 | 784,325 |
| | | | 2,681,017 |
| Entertainment – 1.3% |
| Entain PLC (United Kingdom)* | | 5,078 | 95,417 |
| International Game Technology PLC(d) | | 113,390 | 2,475,304 |
| | | | 2,570,721 |
| Food – 0.5% |
| Associated British Foods PLC (United Kingdom) | | 6,224 | 124,547 |
| Gruma S.A.B. de C.V., Class B (Mexico) | | 5,325 | 63,420 |
| Grupo Bimbo S.A.B. de C.V., Class A (Mexico) | | 32,979 | 101,540 |
| MEIJI Holdings Co. Ltd. (Japan) | | 4,500 | 224,311 |
| Seven & i Holdings Co. Ltd. (Japan) | | 4,500 | 198,976 |
| Tesco PLC (United Kingdom) | | 79,632 | 270,535 |
| Yamazaki Baking Co. Ltd. (Japan) | | 5,886 | 72,764 |
| | | | 1,056,093 |
| Food Service – 0.1% |
| Compass Group PLC (United Kingdom) | | 13,030 | 274,957 |
| Gas – 0.3% |
| Osaka Gas Co. Ltd. (Japan) | | 11,000 | 198,258 |
| Snam S.p.A. (Italy) | | 67,444 | 369,903 |
| | | | 568,161 |
| Healthcare - Products – 1.5% |
| DENTSPLY SIRONA, Inc. | | 17,231 | 689,067 |
| Medtronic PLC | | 14,697 | 1,533,779 |
| Olympus Corp. (Japan) | | 8,600 | 151,370 |
| Smith & Nephew PLC (United Kingdom) | | 34,153 | 553,571 |
| | | | 2,927,787 |
| Healthcare - Services – 1.5% |
| Fresenius Medical Care A.G. & Co. KGaA (Germany) | | 32,997 | 2,051,980 |
| MEDNAX, Inc.* | | 54,572 | 1,010,673 |
| | | | 3,062,653 |
| | | Number
of Shares | Value |
| Home Builders – 0.1% |
| Berkeley Group Holdings (The) PLC (United Kingdom)* | | 2,730 | $ 138,456 |
| Sekisui House Ltd. (Japan) | | 4,861 | 84,426 |
| | | | 222,882 |
| Home Furnishings – 0.4% |
| Panasonic Holdings Corp. (Japan) | | 23,900 | 213,026 |
| Sony Group Corp. (Japan) | | 5,700 | 491,916 |
| | | | 704,942 |
| Household Products/Wares – 0.3% |
| Kimberly-Clark de Mexico S.A.B. de C.V., Series A (Mexico) | | 46,860 | 65,215 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 5,367 | 418,549 |
| | | | 483,764 |
| Insurance – 1.8% |
| Allianz S.E. (Germany)(b) | | 2,441 | 550,773 |
| Assicurazioni Generali S.p.A. (Italy)(d) | | 4,089 | 77,417 |
| Aviva PLC (United Kingdom) | | 51,171 | 274,539 |
| AXA S.A. (France) | | 12,096 | 320,000 |
| Dai-ichi Life Holdings, Inc. (Japan) | | 8,900 | 178,214 |
| Hannover Rueck S.E. (Germany) | | 503 | 78,182 |
| Legal & General Group PLC (United Kingdom) | | 95,226 | 296,828 |
| MS&AD Insurance Group Holdings, Inc. (Japan) | | 6,000 | 178,604 |
| Muenchener Rueckversicherungs-Gesellschaft A.G. in Muenchen (Germany)(b) | | 786 | 187,179 |
| Prudential PLC (United Kingdom) | | 33,556 | 417,720 |
| Sampo OYJ, Class A (Finland) | | 1,457 | 70,748 |
| Sompo Holdings, Inc. (Japan) | | 2,200 | 89,562 |
| Swiss Life Holding A.G. (Switzerland)(b) | | 197 | 115,189 |
| Swiss Re A.G. | | 1,888 | 154,829 |
| Tokio Marine Holdings, Inc. (Japan) | | 3,600 | 194,647 |
| Tryg A/S (Denmark) | | 3,099 | 73,685 |
| Zurich Insurance Group A.G. (Switzerland) | | 762 | 346,916 |
| | | | 3,605,032 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Internet – 5.8% |
| Alibaba Group Holding Ltd. (China)* | | 215,900 | $ 2,633,481 |
| Baidu, Inc., Class A (China)* | | 80,250 | 1,279,483 |
| JD.com, Inc., Class A (China)* | | 41,500 | 1,293,910 |
| Meituan, Class B (China)(a)* | | 61,700 | 1,322,010 |
| Pinduoduo, Inc. ADR (China)* | | 15,547 | 669,920 |
| Tencent Holdings Ltd. (China) | | 54,500 | 2,568,306 |
| Tencent Music Entertainment Group ADR (China)* | | 139,278 | 591,932 |
| Trip.com Group Ltd. (China)* | | 23,600 | 557,282 |
| Trip.com Group Ltd. ADR (China)* | | 30,354 | 717,872 |
| | | | 11,634,196 |
| Investment Companies – 0.1% |
| Investor AB, Class B (Sweden) | | 10,174 | 195,777 |
| Kinnevik AB, Class B (Sweden)* | | 3,130 | 61,262 |
| | | | 257,039 |
| Lodging – 0.1% |
| InterContinental Hotels Group PLC (United Kingdom) | | 2,146 | 137,000 |
| Machinery - Construction & Mining – 0.4% |
| Hitachi Ltd. (Japan) | | 4,800 | 227,647 |
| Komatsu Ltd. (Japan) | | 7,100 | 159,796 |
| Mitsubishi Electric Corp. (Japan) | | 29,600 | 310,039 |
| | | | 697,482 |
| Machinery - Diversified – 0.4% |
| FANUC Corp. (Japan) | | 1,700 | 260,488 |
| Keyence Corp. (Japan) | | 600 | 241,203 |
| Nabtesco Corp. (Japan) | | 2,438 | 55,605 |
| SMC Corp. (Japan) | | 500 | 242,110 |
| Sumitomo Heavy Industries Ltd. (Japan) | | 3,800 | 80,413 |
| | | | 879,819 |
| Media – 0.1% |
| Grupo Televisa S.A.B., Series CPO (Mexico) | | 48,698 | 90,421 |
| Informa PLC (United Kingdom)* | | 17,013 | 120,688 |
| | | | 211,109 |
| | | Number
of Shares | Value |
| Mining – 0.8% |
| Anglo American PLC (South Africa) | | 7,766 | $ 343,964 |
| Cameco Corp. (Canada) | | 2,987 | 77,125 |
| Glencore PLC (Australia)* | | 51,101 | 314,867 |
| Grupo Mexico S.A.B. de C.V., Series B (Mexico) | | 27,032 | 126,626 |
| Industrias Penoles S.A.B. de C.V. (Mexico) | | 5,012 | 55,147 |
| Rio Tinto PLC (Australia) | | 8,638 | 610,328 |
| Sumitomo Metal Mining Co. Ltd. (Japan) | | 2,700 | 118,413 |
| | | | 1,646,470 |
| Miscellaneous Manufacturing – 0.2% |
| Smiths Group PLC (United Kingdom) | | 7,559 | 138,325 |
| Toshiba Corp. (Japan) | | 4,388 | 182,226 |
| | | | 320,551 |
| Office/Business Equipment – 0.1% |
| FUJIFILM Holdings Corp. (Japan) | | 2,400 | 131,931 |
| Oil & Gas – 5.0% |
| BP PLC (United Kingdom) | | 337,249 | 1,628,169 |
| Canadian Natural Resources Ltd. (Canada) | | 7,389 | 457,323 |
| Cenovus Energy, Inc. (Canada) | | 7,549 | 139,562 |
| Chevron Corp. | | 1,501 | 235,162 |
| China Petroleum & Chemical Corp., Class H (China) | | 400,250 | 195,911 |
| Ecopetrol S.A. ADR (Colombia)(d) | | 3,505 | 56,886 |
| ENEOS Holdings, Inc. (Japan) | | 25,800 | 90,780 |
| Eni S.p.A. (Italy) | | 22,984 | 321,288 |
| Equinor ASA (Norway) | | 6,909 | 233,521 |
| Exxon Mobil Corp. | | 6,468 | 551,397 |
| Galp Energia SGPS S.A. (Portugal) | | 6,423 | 78,179 |
| Gazprom PJSC ADR (Russia)(e) | | 50,266 | 0 |
| Imperial Oil Ltd. (Canada) | | 1,360 | 68,474 |
| Inpex Corp. (Japan) | | 26,800 | 318,871 |
| LUKOIL PJSC ADR (Russia)(e) | | 3,271 | 0 |
| Neste OYJ (Finland) | | 5,077 | 217,848 |
| OMV A.G. (Austria) | | 1,690 | 86,389 |
| Petroleo Brasileiro S.A. ADR (Brazil) | | 35,255 | 478,410 |
| Repsol S.A. (Spain) | | 11,510 | 171,705 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Oil & Gas (Continued) |
| Rosneft Oil Co. PJSC GDR (Russia)(b)(e) | | 48,304 | $ 0 |
| Santos Ltd. (Australia) | | 13,934 | 77,864 |
| Shell PLC (Netherlands) | | 105,118 | 2,821,987 |
| Suncor Energy, Inc. (Canada) | | 9,538 | 342,868 |
| TotalEnergies S.E. (France) | | 24,694 | 1,212,549 |
| Woodside Petroleum Ltd. (Australia) | | 7,127 | 155,056 |
| | | | 9,940,199 |
| Pharmaceuticals – 3.0% |
| Alfresa Holdings Corp. (Japan) | | 6,800 | 92,471 |
| Astellas Pharma, Inc. (Japan) | | 6,200 | 94,399 |
| AstraZeneca PLC (United Kingdom) | | 7,772 | 1,037,105 |
| Chugai Pharmaceutical Co. Ltd. (Japan) | | 7,600 | 227,735 |
| CVS Health Corp. | | 24,369 | 2,342,592 |
| Daiichi Sankyo Co. Ltd. (Japan) | | 7,600 | 191,360 |
| Genomma Lab Internacional S.A.B. de C.V., Class B (Mexico) | | 53,955 | 57,058 |
| GlaxoSmithKline PLC | | 30,310 | 683,266 |
| McKesson Corp. | | 2,605 | 806,534 |
| Ono Pharmaceutical Co. Ltd. (Japan) | | 4,300 | 110,469 |
| Takeda Pharmaceutical Co. Ltd. (Japan) | | 12,300 | 356,904 |
| | | | 5,999,893 |
| Real Estate – 0.2% |
| Corp. Inmobiliaria Vesta S.A.B. de C.V. (Mexico) | | 18,657 | 34,504 |
| Mitsubishi Estate Co. Ltd. (Japan) | | 18,800 | 273,852 |
| Mitsui Fudosan Co. Ltd. (Japan) | | 4,100 | 86,894 |
| Sumitomo Realty & Development Co. Ltd. (Japan) | | 2,900 | 76,933 |
| | | | 472,183 |
| Real Estate Investment Trusts – 0.1% |
| Fibra Uno Administracion S.A. de C.V. (Mexico) | | 62,275 | 68,053 |
| PLA Administradora Industrial S. de R.L. de C.V. (Mexico) | | 26,996 | 35,891 |
| Prologis Property Mexico S.A. de C.V. (Mexico) | | 13,978 | 37,537 |
| | | | 141,481 |
| | | Number
of Shares | Value |
| Retail – 2.1% |
| Alibaba Health Information Technology Ltd. (China)(d)* | | 1,028,000 | $ 579,201 |
| Alsea S.A.B. de C.V. (Mexico)* | | 23,570 | 51,537 |
| Fast Retailing Co. Ltd. (Japan) | | 400 | 184,163 |
| Industria de Diseno Textil S.A. (Spain) | | 38,083 | 798,497 |
| Kingfisher PLC (United Kingdom) | | 39,406 | 124,270 |
| La Comer S.A.B. de C.V. (Mexico) | | 19,232 | 35,756 |
| Ross Stores, Inc. | | 8,999 | 897,830 |
| TJX (The) Cos., Inc. | | 13,504 | 827,525 |
| USS Co. Ltd. (Japan) | | 20,500 | 341,285 |
| Wal-Mart de Mexico S.A.B. de C.V. (Mexico) | | 99,387 | 352,273 |
| | | | 4,192,337 |
| Semiconductors – 0.9% |
| Intel Corp. | | 35,876 | 1,563,835 |
| Tokyo Electron Ltd. (Japan) | | 600 | 253,168 |
| | | | 1,817,003 |
| Software – 1.4% |
| Fiserv, Inc.* | | 20,056 | 1,963,884 |
| NetEase, Inc. (China) | | 35,700 | 683,843 |
| Nexon Co. Ltd. (Japan) | | 5,300 | 120,687 |
| Square Enix Holdings Co. Ltd. (Japan) | | 1,800 | 71,866 |
| | | | 2,840,280 |
| Telecommunications – 2.4% |
| America Movil S.A.B. de C.V., Series L (Mexico) | | 659,893 | 643,514 |
| BT Group PLC (United Kingdom) | | 60,053 | 133,173 |
| Cisco Systems, Inc. | | 15,798 | 773,786 |
| KDDI Corp. (Japan) | | 12,100 | 400,688 |
| Megacable Holdings S.A.B. de C.V., Series CPO (Mexico) | | 21,523 | 61,173 |
| Nippon Telegraph & Telephone Corp. (Japan) | | 7,100 | 209,232 |
| SES S.A. (France) | | 200,959 | 1,798,084 |
| Softbank Corp. (Japan) | | 7,200 | 83,793 |
| SoftBank Group Corp. (Japan) | | 8,800 | 361,946 |
| Vodafone Group PLC (United Kingdom) | | 199,011 | 301,295 |
| | | | 4,766,684 |
| Toys/Games/Hobbies – 0.2% |
| Nintendo Co. Ltd. (Japan) | | 900 | 410,752 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Transportation – 0.6% |
| East Japan Railway Co. (Japan) | | 6,000 | $ 312,881 |
| Norfolk Southern Corp. | | 3,205 | 826,506 |
| Poste Italiane S.p.A. (Italy)(a) | | 7,984 | 78,236 |
| | | | 1,217,623 |
| Water – 0.1% |
| Severn Trent PLC (United Kingdom) | | 3,266 | 128,359 |
Total Common Stocks
(Cost $102,729,386) | 100,903,147 |
|
| Investment Companies – 38.1% |
| Franklin FTSE Brazil ETF | | 190,558 | 3,893,100 |
| Invesco KBW Bank ETF(d) | | 85,129 | 4,816,599 |
| iShares Core DAX UCITS ETF DE (Germany)* | EUR | 66,222 | 8,341,391 |
| iShares MSCI China ETF | | 72,778 | 3,672,378 |
| iShares STOXX Europe 600 Telecommunications UCITS ETF DE (Germany) | EUR | 95,249 | 2,192,538 |
| Schwab Fundamental Emerging Markets Large Company Index ETF | | 436,003 | 12,024,963 |
| Vanguard Consumer Staples ETF | | 39,435 | 7,891,338 |
| | | Number
of Shares | Value |
|
| Vanguard Health Care ETF | | 24,883 | $ 5,958,981 |
| Vanguard Small-Cap ETF(d) | | 19,464 | 3,796,453 |
| Vanguard Total Stock Market ETF | | 113,989 | 23,582,044 |
Total Investment Companies
(Cost $72,931,691) | 76,169,785 |
|
| Short-Term Investments – 16.2% |
| Money Market Fund – 16.2% |
| Northern Institutional Funds - Liquid Assets Portfolio (Shares), 0.32%(f)(g) | | 2,912,780 | 2,912,780 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(f) | | 29,550,979 | 29,550,979 |
| | | | 32,463,759 |
Total Short-Term Investments
(Cost $32,463,759) | 32,463,759 |
Total Investments – 104.7%
(Cost $208,124,836) | 209,536,691 |
| Liabilities less Other Assets – (4.7)% | (9,315,603) |
| NET ASSETS – 100.0% | $200,221,088 |
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. | | |
| (b) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (c) | Amount rounds to less than 0.05%. | | |
| (d) | Security either partially or fully on loan. | | |
| (e) | Investment is valued using significant unobservable inputs (Level 3) (See Note 4 regarding investments in Russian securities). | | |
| (f) | 7-day current yield as of April 30, 2022 is disclosed. | | |
| (g) | Security purchased with the cash proceeds from securities loaned (See Note 7). | | |
| * | Non-Income Producing Security | | |
| Abbreviations: | |
| ADR | American Depositary Receipt |
| CPO | Certificate of Ordinary Participation |
| CVA | Credit Valuation Adjustment |
| DAX | Deutscher Aktienindex |
| ETF | Exchange-Traded Fund |
| EUR | Euro |
| GDR | Global Depositary Receipt |
| MSCI | Morgan Stanley Capital International |
| PJSC | Public Joint Stock Company |
| PLC | Public Limited Company |
| UCITS | Undertakings for Collective Investment in Transferable Securities |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| Concentration by Currency (%)(a) | |
| U.S. Dollar | 48.3 |
| Euro | 13.5 |
| Japanese Yen | 9.4 |
| British Pound | 8.5 |
| Hong Kong Dollar | 5.3 |
| All other currencies less than 5% | 15.0 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Country Diversification (%)(a) | |
| United States | 47.3 |
| Japan | 9.4 |
| United Kingdom | 7.4 |
| Germany | 6.8 |
| China | 6.5 |
| All other countries less than 5% | 22.6 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Global Opportunistic Equity Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Common Stocks | $ 35,069,938 | $65,833,209 | $—* | $100,903,147 |
| Investment Companies | 76,169,785 | — | — | 76,169,785 |
| Short-Term Investments | 32,463,759 | — | — | 32,463,759 |
| Total Investments | $143,703,482 | $65,833,209 | $ — | $209,536,691 |
| *Includes securities determined to have no value as of April 30, 2022. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Long Positions – 105.3% |
| Asset-Backed Securities – 1.4% |
| Automobile – 0.8% |
| ACC Auto Trust, Series 2021-A, Class A, 1.08%, 4/15/27(b) | | $448,543 | $ 443,637 |
| Carvana Auto Receivables Trust, Series 2021-N2, Class B, 0.75%, 3/10/28 | | 122,885 | 119,109 |
| Drive Auto Receivables Trust, Series 2019-1, Class D, 4.09%, 6/15/26 | | 571,342 | 575,217 |
| JPMorgan Chase Bank NA - CACLN, | | | |
| Series 2021-2, Class B, 0.89%, 12/26/28(b) | | 263,814 | 257,830 |
| Series 2021-3, Class B, 0.76%, 2/26/29(b) | | 541,801 | 524,131 |
|
| Santander Bank NA - SBCLN, Series 2021-1A, Class B, 1.83%, 12/15/31(b) | | 203,453 | 199,001 |
| Santander Drive Auto Receivables Trust, | | | |
| Series 2019-1, Class D, 3.65%, 4/15/25 | | 478,896 | 481,032 |
| Series 2020-2, Class B, 0.96%, 11/15/24 | | 10,763 | 10,759 |
|
| Westlake Automobile Receivables Trust, Series 2020-2A, Class B, 1.32%, 7/15/25(b) | | 260,000 | 259,634 |
| | | | 2,870,350 |
| Other – 0.6% |
| Avant Loans Funding Trust, Series 2021-REV1, Class A, 1.21%, 7/15/30(b) | | 270,000 | 259,824 |
| Conn's Receivables Funding LLC, Series 2020-A, Class A, 1.71%, 6/16/25(b) | | 10,881 | 10,872 |
| Upstart Securitization Trust, | | | |
| Series 2021-1, Class A, 0.87%, 3/20/31(b) | | 63,411 | 62,794 |
| Series 2021-2, Class A, 0.91%, 6/20/31(b) | | 374,884 | 367,746 |
| Series 2021-3, Class A, 0.83%, 7/20/31(b) | | 515,790 | 505,078 |
| | | Par (a) | Value |
| Other (Continued) |
| Upstart Securitization Trust, | | | |
| Series 2021-4, Class A, 0.84%, 9/20/31(b) | | $505,557 | $ 490,091 |
| Series 2021-5, Class A, 1.31%, 11/20/31(b) | | 518,198 | 506,200 |
| | | | 2,202,605 |
Total Asset-Backed Securities
(Cost $5,178,639) | 5,072,955 |
| | | Number
of Shares | |
| Common Stocks – 28.2% |
| Advertising – 0.0%(c) |
| Omnicom Group, Inc. | | 1,244 | 94,706 |
| Aerospace/Defense – 0.8% |
| Aerojet Rocketdyne Holdings, Inc.(d)* | | 37,575 | 1,502,248 |
| General Dynamics Corp | | 354 | 83,732 |
| Lockheed Martin Corp. | | 375 | 162,045 |
| Meggitt PLC (United Kingdom)* | | 124,150 | 1,203,624 |
| | | | 2,951,649 |
| Agriculture – 0.0%(c) |
| Philip Morris International, Inc. | | 245 | 24,500 |
| Auto Parts & Equipment – 0.9% |
| Meritor, Inc.(d)* | | 57,501 | 2,064,861 |
| Tenneco, Inc., Class A(d)* | | 71,107 | 1,220,907 |
| | | | 3,285,768 |
| Banks – 0.6% |
| First Horizon Corp.(d) | | 95,700 | 2,141,766 |
| Prosperity Bancshares, Inc. | | 232 | 15,168 |
| | | | 2,156,934 |
| Beverages – 0.1% |
| Coca-Cola Europacific Partners PLC (United Kingdom) | | 193 | 9,640 |
| PepsiCo, Inc. | | 990 | 169,993 |
| | | | 179,633 |
| Biotechnology – 0.7% |
| Amgen, Inc. | | 686 | 159,968 |
| Gilead Sciences, Inc. | | 2,807 | 166,568 |
| Sierra Oncology, Inc. (Canada)* | | 16,586 | 904,103 |
| Swedish Orphan Biovitrum AB (Sweden)* | | 62,343 | 1,311,499 |
| | | | 2,542,138 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Building Materials – 0.6% |
| Cornerstone Building Brands, Inc.(d)* | | 93,507 | $2,280,636 |
| Chemicals – 0.6% |
| Air Products and Chemicals, Inc. | | 79 | 18,492 |
| Rogers Corp.(d)* | | 8,614 | 2,331,982 |
| | | | 2,350,474 |
| Commercial Services – 1.4% |
| Atlantia S.p.A. (Italy)* | | 27,124 | 647,058 |
| Automatic Data Processing, Inc. | | 417 | 90,981 |
| Booz Allen Hamilton Holding Corp. | | 249 | 20,326 |
| Clipper Logistics PLC (United Kingdom) | | 53,832 | 582,143 |
| Moneylion, Inc.* | | 25,132 | 52,274 |
| Nielsen Holdings PLC | | 112,574 | 3,018,109 |
| Terminix Global Holdings, Inc.(d)* | | 19,139 | 878,289 |
| | | | 5,289,180 |
| Computers – 0.2% |
| Amdocs Ltd. | | 2,032 | 161,930 |
| Avast PLC(b) | | 69,680 | 494,172 |
| International Business Machines Corp. | | 1,301 | 172,005 |
| | | | 828,107 |
| Cosmetics/Personal Care – 0.1% |
| Colgate-Palmolive Co. | | 2,166 | 166,890 |
| Procter & Gamble (The) Co. | | 1,085 | 174,197 |
| | | | 341,087 |
| Diversified Financial Services – 0.6% |
| Brewin Dolphin Holdings PLC (United Kingdom) | | 94,505 | 605,274 |
| Intertrust N.V. (Netherlands)(b)* | | 33,485 | 692,370 |
| Sanne Group PLC (Jersey, C.I.)* | | 71,691 | 817,641 |
| Virtu Financial, Inc. Class A | | 2,016 | 58,222 |
| Western Union (The) Co. | | 306 | 5,129 |
| | | | 2,178,636 |
| Electric – 1.2% |
| Albioma S.A. (France) | | 6,567 | 349,077 |
| Alliant Energy Corp. | | 2,085 | 122,619 |
| Ameren Corp. | | 491 | 45,614 |
| American Electric Power Co., Inc. | | 1,654 | 163,928 |
| Avangrid, Inc. | | 1,573 | 69,762 |
| CMS Energy Corp. | | 1,426 | 97,952 |
| | | Number
of Shares | Value |
| Electric (Continued) |
| Consolidated Edison, Inc. | | 1,700 | $ 157,658 |
| Dominion Energy, Inc. | | 1,330 | 108,581 |
| DTE Energy Co. | | 316 | 41,409 |
| Duke Energy Corp. | | 1,491 | 164,248 |
| Evergy, Inc. | | 1,340 | 90,919 |
| Eversource Energy | | 1,158 | 101,209 |
| IDACORP, Inc. | | 199 | 20,931 |
| NorthWestern Corp. | | 158 | 8,957 |
| OGE Energy Corp. | | 619 | 23,943 |
| Pinnacle West Capital Corp. | | 508 | 36,170 |
| PNM Resources, Inc.(d) | | 47,982 | 2,238,840 |
| Southern (The) Co. | | 2,256 | 165,568 |
| WEC Energy Group, Inc. | | 1,649 | 164,982 |
| Xcel Energy, Inc. | | 506 | 37,070 |
| | | | 4,209,437 |
| Electronics – 0.7% |
| Coherent, Inc.* | | 9,541 | 2,556,034 |
| Energy - Alternate Sources – 0.7% |
| Renewable Energy Group, Inc.* | | 42,257 | 2,580,212 |
| Food – 0.8% |
| Campbell Soup Co. | | 2,803 | 132,358 |
| Conagra Brands, Inc. | | 3,430 | 119,810 |
| Flowers Foods, Inc. | | 5,441 | 144,295 |
| General Mills, Inc. | | 2,425 | 171,520 |
| JM Smucker (The) Co. | | 524 | 71,751 |
| Kellogg Co. | | 2,549 | 174,606 |
| Kraft Heinz (The) Co. | | 1,086 | 46,296 |
| Lancaster Colony Corp. | | 3 | 466 |
| Mondelez International, Inc., Class A | | 856 | 55,195 |
| Sanderson Farms, Inc.(d) | | 10,470 | 1,982,704 |
| | | | 2,899,001 |
| Forest Products & Paper – 0.0%(c) |
| International Paper Co. | | 1,940 | 89,783 |
| Gas – 0.5% |
| South Jersey Industries, Inc.(d) | | 53,843 | 1,840,892 |
| Healthcare - Products – 0.2% |
| Medtronic PLC | | 1,221 | 127,424 |
| Natus Medical, Inc.* | | 17,568 | 584,487 |
| Patterson Cos., Inc. | | 962 | 29,601 |
| | | | 741,512 |
| Healthcare - Services – 0.9% |
| LHC Group, Inc.(d)* | | 11,460 | 1,900,641 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Healthcare - Services (Continued) |
| Tivity Health, Inc.* | | 40,041 | $1,286,518 |
| UpHealth, Inc.* | | 2,540 | 2,030 |
| | | | 3,189,189 |
| Household Products/Wares – 0.1% |
| Clorox (The) Co. | | 496 | 71,161 |
| Kimberly-Clark Corp. | | 1,340 | 186,032 |
| | | | 257,193 |
| Insurance – 1.5% |
| Alleghany Corp.* | | 4,300 | 3,596,950 |
| Allstate (The) Corp. | | 1,196 | 151,342 |
| Radian Group, Inc. | | 55 | 1,176 |
| TOWER Ltd. (New Zealand) | | 173,173 | 78,260 |
| Travelers (The) Cos., Inc. | | 876 | 149,849 |
| Willis Towers Watson PLC | | 7,096 | 1,524,647 |
| | | | 5,502,224 |
| Internet – 2.0% |
| Anaplan, Inc.* | | 43,620 | 2,834,864 |
| Mandiant, Inc.(d)* | | 142,335 | 3,128,523 |
| Twitter, Inc.* | | 26,428 | 1,295,501 |
| | | | 7,258,888 |
| Leisure Time – 0.2% |
| Accell Group NV (Netherlands)* | | 11,051 | 667,580 |
| Machinery - Diversified – 1.0% |
| Welbilt, Inc.* | | 150,059 | 3,544,394 |
| Media – 0.8% |
| Comcast Corp., Class A | | 3,504 | 139,319 |
| TEGNA, Inc.(d) | | 108,921 | 2,401,708 |
| Uniti Group Ltd. (Australia)* | | 148,830 | 513,941 |
| | | | 3,054,968 |
| Mining – 0.1% |
| Newmont Corp. | | 2,100 | 152,985 |
| Miscellaneous Manufacturing – 0.0%(c) |
| 3M Co. | | 947 | 136,576 |
| Illinois Tool Works, Inc. | | 54 | 10,644 |
| | | | 147,220 |
| Oil & Gas – 0.1% |
| Chevron Corp. | | 937 | 146,800 |
| Exxon Mobil Corp. | | 1,474 | 125,658 |
| | | | 272,458 |
| Packaging & Containers – 0.7% |
| Amcor PLC | | 13,650 | 161,889 |
| | | Number
of Shares | Value |
| Packaging & Containers (Continued) |
| Intertape Polymer Group, Inc. (Canada) | | 72,206 | $2,234,218 |
| Packaging Corp. of America | | 1,001 | 161,331 |
| | | | 2,557,438 |
| Pharmaceuticals – 0.7% |
| AbbVie, Inc. | | 1,026 | 150,699 |
| Antares Pharma, Inc.* | | 107,882 | 600,364 |
| Bristol-Myers Squibb Co. | | 2,253 | 169,583 |
| Cardinal Health, Inc. | | 2,080 | 120,744 |
| CVS Health Corp. | | 1,034 | 99,399 |
| Johnson & Johnson | | 944 | 170,354 |
| Merck & Co., Inc. | | 2,003 | 177,646 |
| Pfizer, Inc. | | 2,988 | 146,621 |
| Premier, Inc., Class A | | 3,676 | 133,108 |
| Vifor Pharma A.G. (Switzerland) | | 4,480 | 792,376 |
| | | | 2,560,894 |
| Pipelines – 0.0%(c) |
| Williams (The) Cos., Inc. | | 1,923 | 65,940 |
| Real Estate Investment Trusts – 1.2% |
| American Campus Communities, Inc. | | 23,032 | 1,489,480 |
| Healthcare Realty Trust, Inc. | | 645 | 17,467 |
| Healthcare Trust of America, Inc., Class A | | 8,162 | 248,614 |
| National Retail Properties, Inc. | | 1,277 | 55,984 |
| Physicians Realty Trust | | 5,178 | 88,751 |
| Preferred Apartment Communities, Inc. | | 53,021 | 1,319,162 |
| PS Business Parks, Inc. | | 6,331 | 1,185,163 |
| WP Carey, Inc. | | 883 | 71,320 |
| | | | 4,475,941 |
| Retail – 0.3% |
| Genuine Parts Co. | | 313 | 40,706 |
| McDonald's Corp. | | 581 | 144,762 |
| MSC Industrial Direct Co., Inc., Class A | | 504 | 41,761 |
| Vivo Energy PLC (Kenya)(b) | | 503,787 | 917,289 |
| Walgreens Boots Alliance, Inc. | | 292 | 12,381 |
| | | | 1,156,899 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Semiconductors – 0.7% |
| CMC Materials, Inc.(d) | | 11,594 | $ 2,074,283 |
| Magnachip Semiconductor Corp. (South Korea)* | | 33,970 | 621,311 |
| | | | 2,695,594 |
| Shipbuilding – 0.0%(c) |
| Huntington Ingalls Industries, Inc. | | 64 | 13,615 |
| Software – 5.4% |
| Activision Blizzard, Inc. | | 36,010 | 2,722,356 |
| CDK Global, Inc. | | 45,009 | 2,448,940 |
| Cerner Corp.(d) | | 35,004 | 3,277,775 |
| Change Healthcare, Inc.(d)* | | 178,674 | 4,209,559 |
| Citrix Systems, Inc. | | 23,195 | 2,321,820 |
| Datto Holding Corp.* | | 17,193 | 596,597 |
| Momentive Global, Inc.(d)* | | 117,112 | 1,852,712 |
| Sailpoint Technologies Holdings, Inc.* | | 27,834 | 1,776,644 |
| Zynga, Inc., Class A* | | 98,753 | 816,687 |
| | | | 20,023,090 |
| Telecommunications – 1.6% |
| Cisco Systems, Inc. | | 3,054 | 149,585 |
| NeoPhotonics Corp.(d)* | | 65,603 | 993,230 |
| Plantronics, Inc.* | | 59,655 | 2,377,848 |
| Verizon Communications, Inc. | | 3,178 | 147,141 |
| Vonage Holdings Corp.(d)* | | 113,279 | 2,261,049 |
| | | | 5,928,853 |
| Transportation – 0.1% |
| C.H. Robinson Worldwide, Inc. | | 636 | 67,511 |
| Stagecoach Group PLC (United Kingdom)* | | 223,472 | 295,336 |
| | | | 362,847 |
| Water – 0.1% |
| Vidler Water Resouces, Inc.* | | 32,724 | 515,076 |
Total Common Stocks
(Cost $105,092,644) | 103,823,605 |
| | | Par (a) | |
| Convertible Bonds – 22.7% |
| Aerospace/Defense – 0.2% |
| Kaman Corp., 3.25%, 5/01/24(d) | | $605,000 | 589,028 |
| | | Par (a) | Value |
| Airlines – 0.3% |
| Southwest Airlines Co., 1.25%, 5/01/25(d) | | $ 392,000 | $ 535,276 |
| Spirit Airlines, Inc., 1.00%, 5/15/26(d) | | 535,000 | 486,047 |
| | | | 1,021,323 |
| Auto Manufacturers – 0.0%(c) |
| Lightning eMotors, Inc., 7.50%, 5/15/24(b) | | 121,000 | 95,862 |
| Biotechnology – 1.2% |
| Exact Sciences Corp., 0.38%, 3/15/27(d)(e) | | 1,499,000 | 1,276,399 |
| Halozyme Therapeutics, Inc., 0.25%, 3/01/27 | | 1,523,000 | 1,306,924 |
| Insmed, Inc., 0.75%, 6/01/28(e) | | 1,431,000 | 1,342,994 |
| Ligand Pharmaceuticals, Inc., 0.75%, 5/15/23(d) | | 525,000 | 504,984 |
| | | | 4,431,301 |
| Building Materials – 0.2% |
| Patrick Industries, Inc., 1.75%, 12/01/28(b)(d) | | 841,000 | 756,374 |
| Commercial Services – 1.1% |
| Chegg, Inc., 0.00%, 9/01/26(d)(f) | | 1,472,000 | 1,142,272 |
| Marathon Digital Holdings, Inc., 1.00%, 12/01/26(b)(d) | | 1,617,000 | 941,902 |
| Sabre GLBL, Inc., 4.00%, 4/15/25(d) | | 578,000 | 883,762 |
| Stride, Inc., 1.13%, 9/01/27 | | 885,000 | 911,993 |
| | | | 3,879,929 |
| Computers – 0.2% |
| Lumentum Holdings, Inc., 0.50%, 12/15/26(d)(e) | | 337,000 | 352,367 |
| Mitek Systems, Inc., 0.75%, 2/01/26 | | 519,000 | 456,720 |
| | | | 809,087 |
| Cosmetics/Personal Care – 0.2% |
| Beauty Health (The) Co., 1.25%, 10/01/26(b)(d) | | 942,000 | 790,338 |
| Diversified Financial Services – 1.7% |
| Coinbase Global, Inc., 0.50%, 6/01/26(b)(d)(e) | | 1,159,000 | 927,779 |
| Encore Capital Europe Finance Ltd., 4.50%, 9/01/23(d) | | 812,000 | 1,133,552 |
| LendingTree, Inc., 0.50%, 7/15/25(d) | | 1,639,000 | 1,311,200 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Diversified Financial Services (Continued) |
| PRA Group, Inc., 3.50%, 6/01/23(d) | | $ 785,000 | $ 836,025 |
| SoFi Technologies, Inc., 0.00%, 10/15/26(b)(d)(f) | | 966,000 | 647,800 |
| Upstart Holdings, Inc., 0.25%, 8/15/26(b) | | 756,000 | 578,340 |
| WisdomTree Investments, Inc., | | | |
| 4.25%, 6/15/23 | | 701,000 | 789,501 |
| 3.25%, 6/15/26(b) | | 177,000 | 167,088 |
| | | | 6,391,285 |
| Electric – 0.5% |
| NRG Energy, Inc., 2.75%, 6/01/48(d) | | 1,566,000 | 1,656,985 |
| Energy - Alternate Sources – 0.6% |
| Array Technologies, Inc., 1.00%, 12/01/28(b)(d) | | 1,352,000 | 836,888 |
| Enphase Energy, Inc., 0.00%, 3/01/28(f) | | 982,000 | 933,882 |
| Sunnova Energy International, Inc., 0.25%, 12/01/26(b)(d)(e) | | 701,000 | 546,780 |
| | | | 2,317,550 |
| Food – 0.2% |
| Chefs' Warehouse (The), Inc., 1.88%, 12/01/24(d) | | 813,000 | 893,487 |
| Healthcare - Products – 0.3% |
| Haemonetics Corp., 0.00%, 3/01/26(f) | | 1,188,000 | 937,807 |
| Healthcare - Services – 0.0%(c) |
| UpHealth, Inc., 6.25%, 6/15/26(b) | | 187,000 | 139,788 |
| Holding Companies - Diversified – 0.1% |
| RWT Holdings, Inc., 5.75%, 10/01/25(d) | | 573,000 | 531,744 |
| Home Builders – 0.2% |
| Winnebago Industries, Inc., 1.50%, 4/01/25(d) | | 793,000 | 847,321 |
| Insurance – 0.4% |
| MGIC Investment Corp., 9.00%, 4/01/63(b)(d) | | 1,017,000 | 1,357,695 |
| Internet – 2.3% |
| Etsy, Inc., 0.25%, 6/15/28(b) | | 345,000 | 274,275 |
| Groupon, Inc., 1.13%, 3/15/26 | | 562,000 | 428,299 |
| | | Par (a) | Value |
| Internet (Continued) |
| Magnite, Inc., 0.25%, 3/15/26 | | $1,589,000 | $1,236,401 |
| Perficient, Inc., 0.13%, 11/15/26(b)(d) | | 711,000 | 610,394 |
| Q2 Holdings, Inc., 0.13%, 11/15/25(d) | | 1,247,000 | 1,045,609 |
| Snap, Inc., 0.00%, 5/01/27(f) | | 1,131,000 | 897,448 |
| Spotify USA, Inc., 0.00%, 3/15/26(f) | | 1,171,000 | 953,487 |
| Upwork, Inc., 0.25%, 8/15/26(b)(d) | | 1,607,000 | 1,255,067 |
| Wayfair, Inc., 0.63%, 10/01/25(d) | | 1,122,000 | 837,721 |
| Zillow Group, Inc., 2.75%, 5/15/25(d)(e) | | 764,000 | 787,684 |
| | | | 8,326,385 |
| Leisure Time – 1.1% |
| Callaway Golf Co., 2.75%, 5/01/26(e) | | 452,000 | 649,750 |
| Liberty TripAdvisor Holdings, Inc., 0.50%, 6/30/51(b)(d) | | 1,946,000 | 1,536,367 |
| NCL Corp. Ltd., 2.50%, 2/15/27(b) | | 648,000 | 588,384 |
| Royal Caribbean Cruises Ltd., 4.25%, 6/15/23 | | 922,000 | 1,135,259 |
| | | | 3,909,760 |
| Lodging – 0.2% |
| Marcus (The) Corp., 5.00%, 9/15/25(b)(d)(e) | | 425,000 | 704,172 |
| Machinery - Construction & Mining – 0.1% |
| Bloom Energy Corp., 2.50%, 8/15/25(d) | | 401,000 | 546,002 |
| Media – 0.5% |
| Cable One, Inc., 1.13%, 3/15/28 | | 1,000,000 | 821,000 |
| DISH Network Corp., 3.38%, 8/15/26(d) | | 1,026,000 | 879,795 |
| | | | 1,700,795 |
| Oil & Gas – 0.6% |
| Centennial Resource Production LLC, 3.25%, 4/01/28(d) | | 871,000 | 1,278,737 |
| Pioneer Natural Resources Co., 0.25%, 5/15/25 | | 350,000 | 770,350 |
| | | | 2,049,087 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Oil & Gas Services – 0.2% |
| Helix Energy Solutions Group, Inc., | | | |
| 4.13%, 9/15/23(d) | | $ 330,000 | $ 318,450 |
| 6.75%, 2/15/26(d) | | 488,000 | 506,593 |
| | | | 825,043 |
| Pharmaceuticals – 0.4% |
| Coherus Biosciences, Inc., 1.50%, 4/15/26 | | 728,000 | 595,595 |
| Jazz Investments I Ltd., 1.50%, 8/15/24(d) | | 889,000 | 904,002 |
| | | | 1,499,597 |
| Real Estate – 0.4% |
| Realogy Group LLC/Realogy Co-Issuer Corp., 0.25%, 6/15/26(b)(d) | | 1,262,000 | 970,162 |
| Redfin Corp., 0.50%, 4/01/27 | | 652,000 | 398,046 |
| | | | 1,368,208 |
| Real Estate Investment Trusts – 3.1% |
| Apollo Commercial Real Estate Finance, Inc., 5.38%, 10/15/23(d) | | 1,538,000 | 1,500,511 |
| Blackstone Mortgage Trust, Inc., 5.50%, 3/15/27 | | 180,000 | 173,880 |
| Granite Point Mortgage Trust, Inc., 6.38%, 10/01/23 | | 1,174,000 | 1,161,673 |
| MFA Financial, Inc., 6.25%, 6/15/24(d) | | 1,931,000 | 1,902,035 |
| Pebblebrook Hotel Trust, 1.75%, 12/15/26(d) | | 963,000 | 1,089,634 |
| PennyMac Corp., | | | |
| 5.50%, 11/01/24(d) | | 1,530,000 | 1,521,394 |
| 5.50%, 3/15/26 | | 923,000 | 852,667 |
|
| Redwood Trust, Inc., 5.63%, 7/15/24 | | 750,000 | 714,434 |
| Summit Hotel Properties, Inc., 1.50%, 2/15/26(d) | | 1,234,000 | 1,262,999 |
| Two Harbors Investment Corp., 6.25%, 1/15/26(d) | | 1,193,000 | 1,110,236 |
| | | | 11,289,463 |
| Retail – 0.1% |
| Cheesecake Factory (The), Inc., 0.38%, 6/15/26(d) | | 487,000 | 415,776 |
| Semiconductors – 0.3% |
| Impinj, Inc., 1.13%, 5/15/27(b)(d) | | 469,000 | 384,287 |
| | | Par (a) | Value |
| Semiconductors (Continued) |
| MACOM Technology Solutions Holdings, Inc., 0.25%, 3/15/26 | | $ 415,000 | $ 388,647 |
| Wolfspeed, Inc., 0.25%, 2/15/28(b)(d) | | 218,000 | 218,000 |
| | | | 990,934 |
| Software – 4.7% |
| 8x8, Inc., 0.50%, 2/01/24(d) | | 758,000 | 676,136 |
| Avaya Holdings Corp., 2.25%, 6/15/23(d)(e) | | 650,000 | 626,280 |
| Bandwidth, Inc., 0.50%, 4/01/28 | | 782,000 | 484,840 |
| Bentley Systems, Inc., 0.38%, 7/01/27(b)(d) | | 812,000 | 688,170 |
| BigCommerce Holdings, Inc., 0.25%, 10/01/26(b)(d) | | 963,000 | 712,620 |
| Blackline, Inc., 0.00%, 3/15/26(f) | | 806,000 | 663,338 |
| Ceridian HCM Holding, Inc., 0.25%, 3/15/26 | | 1,437,000 | 1,182,938 |
| DigitalOcean Holdings, Inc., 0.00%, 12/01/26(b)(d)(f) | | 1,319,000 | 976,161 |
| Envestnet, Inc., 0.75%, 8/15/25(b)(d) | | 811,000 | 801,876 |
| Everbridge, Inc., 0.13%, 12/15/24(d)(e) | | 595,000 | 534,236 |
| Fastly, Inc., 0.00%, 3/15/26(f) | | 719,000 | 541,497 |
| i3 Verticals LLC, 1.00%, 2/15/25 | | 673,000 | 655,502 |
| Kaleyra, Inc., 6.13%, 6/01/26(b) | | 177,000 | 172,492 |
| LivePerson, Inc., 0.00%, 12/15/26(d)(f) | | 1,048,000 | 831,902 |
| MicroStrategy, Inc., 0.00%, 2/15/27(f) | | 2,011,000 | 1,273,969 |
| New Relic, Inc., 0.50%, 5/01/23(d)(e) | | 838,000 | 825,849 |
| Porch Group, Inc., 0.75%, 9/15/26(b)(d) | | 654,000 | 361,335 |
| Progress Software Corp., 1.00%, 4/15/26 | | 1,037,000 | 1,041,667 |
| RingCentral, Inc., 0.00%, 3/15/26(f) | | 800,000 | 633,665 |
| Splunk, Inc., 1.13%, 6/15/27 | | 598,000 | 536,406 |
| Unity Software, Inc., 0.00%, 11/15/26(b)(d)(f) | | 1,323,000 | 1,023,321 |
| Verint Systems, Inc., 0.25%, 4/15/26 | | 893,000 | 941,222 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Software (Continued) |
| Workiva, Inc., 1.13%, 8/15/26(d)(e) | | $ 431,000 | $ 603,400 |
| Ziff Davis, Inc., 1.75%, 11/01/26(b)(d) | | 668,000 | 711,754 |
| | | | 17,500,576 |
| Telecommunications – 0.3% |
| Infinera Corp., 2.13%, 9/01/24(d) | | 1,192,000 | 1,249,216 |
| Transportation – 0.8% |
| Air Transport Services Group, Inc., 1.13%, 10/15/24(d) | | 910,000 | 1,035,672 |
| CryoPort, Inc., 0.75%, 12/01/26(b)(d) | | 1,791,000 | 1,351,131 |
| SFL Corp. Ltd., 4.88%, 5/01/23(d) | | 486,000 | 490,556 |
| | | | 2,877,359 |
| Trucking & Leasing – 0.2% |
| Greenbrier (The) Cos., Inc., 2.88%, 4/15/28 | | 893,000 | 907,735 |
Total Convertible Bonds
(Cost $88,006,980) | 83,607,012 |
|
| Corporate Bonds – 11.2% |
| Advertising – 0.0%(c) |
| Interpublic (The) Group of Cos., Inc, 2.40%, 3/01/31 | | 5,000 | 4,243 |
| Aerospace/Defense – 0.2% |
| Boeing (The) Co., | | | |
| 4.51%, 5/01/23 | | 100,000 | 100,923 |
| 1.43%, 2/04/24 | | 50,000 | 48,041 |
| 4.88%, 5/01/25 | | 15,000 | 15,188 |
| 2.20%, 2/04/26 | | 60,000 | 54,725 |
|
| BWX Technologies, Inc., 4.13%, 6/30/28(b) | | 115,000 | 106,663 |
| General Dynamics Corp., 1.15%, 6/01/26 | | 110,000 | 100,059 |
| Howmet Aerospace, Inc., | | | |
| 5.90%, 2/01/27 | | 125,000 | 128,283 |
| 5.95%, 2/01/37 | | 25,000 | 25,264 |
|
| Lockheed Martin Corp., 6/15/32(g) | | 65,000 | 64,494 |
| Spirit AeroSystems, Inc., 5.50%, 1/15/25(b) | | 10,000 | 9,900 |
| Teledyne Technologies, Inc., 2.75%, 4/01/31 | | 30,000 | 25,958 |
| | | Par (a) | Value |
| Aerospace/Defense (Continued) |
|
| TransDigm, Inc., 6.25%, 3/15/26(b) | | $100,000 | $ 99,500 |
| Triumph Group, Inc., 8.88%, 6/01/24(b) | | 20,000 | 20,696 |
| | | | 799,694 |
| Agriculture – 0.1% |
| Altria Group, Inc., | | | |
| 2.35%, 5/06/25 | | 180,000 | 171,514 |
| 3.40%, 5/06/30 | | 30,000 | 26,871 |
| Bunge Ltd. Finance Corp., | | | |
| 1.63%, 8/17/25 | | 50,000 | 46,400 |
| 3.75%, 9/25/27 | | 50,000 | 48,816 |
|
| Darling Ingredients, Inc., 5.25%, 4/15/27(b) | | 25,000 | 25,000 |
| Philip Morris International, Inc., | | | |
| 1.50%, 5/01/25 | | 100,000 | 93,930 |
| 2.10%, 5/01/30 | | 60,000 | 51,258 |
|
| Vector Group Ltd., 5.75%, 2/01/29(b) | | 60,000 | 52,650 |
| | | | 516,439 |
| Airlines – 0.1% |
| American Airlines, Inc., 11.75%, 7/15/25(b) | | 25,000 | 28,750 |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | |
| 5.50%, 4/20/26(b) | | 20,000 | 19,825 |
| 5.75%, 4/20/29(b) | | 20,000 | 19,272 |
|
| Delta Air Lines, Inc., 7.38%, 1/15/26 | | 75,000 | 79,875 |
| Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd., 5.75%, 1/20/26(b) | | 50,000 | 48,757 |
| Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 6/20/27(b) | | 73,781 | 75,255 |
| Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.00%, 9/20/25(b) | | 29,920 | 31,596 |
| United Airlines, Inc., | | | |
| 4.38%, 4/15/26(b) | | 30,000 | 28,965 |
| 4.63%, 4/15/29(b) | | 30,000 | 27,525 |
| | | | 359,820 |
| Auto Manufacturers – 0.2% |
| American Honda Finance Corp., 1.20%, 7/08/25 | | 75,000 | 69,748 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Auto Manufacturers (Continued) |
| Ford Motor Co., | | | |
| 9.63%, 4/22/30 | | $ 50,000 | $ 61,125 |
| 4.75%, 1/15/43 | | 25,000 | 20,125 |
| 5.29%, 12/08/46 | | 25,000 | 21,500 |
|
| Ford Motor Credit Co. LLC, 3.38%, 11/13/25 | | 200,000 | 192,036 |
| General Motors Financial Co., Inc., | | | |
| 1.70%, 8/18/23 | | 140,000 | 137,216 |
| 2.35%, 2/26/27 | | 200,000 | 179,812 |
| Toyota Motor Credit Corp., | | | |
| 2.50%, 3/22/24 | | 25,000 | 24,729 |
| 1.13%, 6/18/26 | | 30,000 | 27,214 |
| | | | 733,505 |
| Auto Parts & Equipment – 0.0%(c) |
| Goodyear Tire & Rubber (The) Co., 5.25%, 4/30/31 | | 25,000 | 21,734 |
| Lear Corp., 3.80%, 9/15/27 | | 60,000 | 57,868 |
| Meritor, Inc., 4.50%, 12/15/28(b) | | 30,000 | 29,963 |
| | | | 109,565 |
| Banks – 1.9% |
| Bank of America Corp., | | | |
| 4.13%, 1/22/24 | | 200,000 | 202,912 |
| (SOFR + 0.74%), 0.81%, 10/24/24(h) | | 135,000 | 129,575 |
| 4.00%, 1/22/25 | | 100,000 | 99,941 |
| (SOFR + 0.69%), 0.98%, 4/22/25(h) | | 240,000 | 226,725 |
| (SOFR + 0.91%), 0.98%, 9/25/25(h) | | 40,000 | 37,235 |
| (3M USD LIBOR + 0.81%), 3.37%, 1/23/26(h) | | 50,000 | 48,905 |
| (SOFR + 1.33%), 3.38%, 4/02/26(h) | | 490,000 | 479,354 |
| (SOFR + 1.15%), 1.32%, 6/19/26(h) | | 210,000 | 192,431 |
| (3M USD LIBOR + 0.99%), 2.50%, 2/13/31(h) | | 80,000 | 68,610 |
| (SOFR + 1.22%), 2.65%, 3/11/32(h) | | 50,000 | 42,813 |
| (SOFR + 1.21%), 2.57%, 10/20/32(h) | | 30,000 | 25,344 |
|
| Bank of New York Mellon (The) Corp., 0.50%, 4/26/24 | | 85,000 | 80,793 |
| Citigroup, Inc., | | | |
| 4.00%, 8/05/24 | | 150,000 | 150,716 |
| (SOFR + 0.69%), 0.78%, 10/30/24(h) | | 450,000 | 430,610 |
| (SOFR + 0.67%), 0.98%, 5/01/25(h) | | 85,000 | 80,145 |
| | | Par (a) | Value |
| Banks (Continued) |
| Citigroup, Inc., | | | |
| (SOFR + 0.77%), 1.46%, 6/09/27(h) | | $375,000 | $333,780 |
| 4.45%, 9/29/27 | | 100,000 | 99,212 |
| Fifth Third Bancorp, | | | |
| 3.65%, 1/25/24 | | 50,000 | 50,094 |
| (SOFR + 0.69%), 1.71%, 11/01/27(h) | | 10,000 | 9,031 |
| Goldman Sachs Group (The), Inc., | | | |
| (SOFR + 0.51%), 0.66%, 9/10/24(h) | | 470,000 | 451,026 |
| (3M USD LIBOR + 1.20%), 3.27%, 9/29/25(h) | | 150,000 | 147,584 |
| (SOFR + 0.61%), 0.86%, 2/12/26(h) | | 90,000 | 82,168 |
| 3.50%, 11/16/26 | | 50,000 | 48,758 |
| (SOFR + 0.79%), 1.09%, 12/09/26(h) | | 450,000 | 402,467 |
| (SOFR + 0.80%), 1.43%, 3/09/27(h) | | 110,000 | 98,194 |
| (3M USD LIBOR + 1.16%), 3.81%, 4/23/29(h) | | 50,000 | 47,967 |
| 3.80%, 3/15/30 | | 50,000 | 47,231 |
| (SOFR + 1.09%), 1.99%, 1/27/32(h) | | 115,000 | 92,902 |
| (SOFR + 1.28%), 2.62%, 4/22/32(h) | | 10,000 | 8,458 |
| (SOFR + 1.25%), 2.38%, 7/21/32(h) | | 75,000 | 61,983 |
| JPMorgan Chase & Co., | | | |
| (SOFR + 0.61%), 1.56%, 12/10/25(h) | | 130,000 | 122,370 |
| (3M CME Term SOFR + 1.59%), 2.01%, 3/13/26(h) | | 300,000 | 282,625 |
| (SOFR + 0.80%), 1.05%, 11/19/26(h) | | 180,000 | 161,782 |
| (SOFR + 0.70%), 1.04%, 2/04/27(h) | | 205,000 | 182,543 |
| (SOFR + 0.77%), 1.47%, 9/22/27(h) | | 95,000 | 84,356 |
| Morgan Stanley, | | | |
| 4.10%, 5/22/23 | | 25,000 | 25,275 |
| (SOFR + 0.46%), 0.53%, 1/25/24(h) | | 205,000 | 200,743 |
| (3M USD LIBOR + 0.85%), 3.74%, 4/24/24(h) | | 160,000 | 159,926 |
| 3.70%, 10/23/24 | | 50,000 | 50,096 |
| (SOFR + 0.75%), 0.86%, 10/21/25(h) | | 130,000 | 120,537 |
| (SOFR + 1.99%), 2.19%, 4/28/26(h) | | 100,000 | 94,311 |
| (SOFR + 0.72%), 0.99%, 12/10/26(h) | | 360,000 | 321,333 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Banks (Continued) |
| Morgan Stanley, | | | |
| (SOFR + 0.88%), 1.59%, 5/04/27(h) | | $ 70,000 | $ 62,945 |
| (3M USD LIBOR + 1.63%), 4.43%, 1/23/30(h) | | 50,000 | 49,478 |
| (SOFR + 3.12%), 3.62%, 4/01/31(h) | | 145,000 | 135,677 |
|
| Santander Holdings USA, Inc., 3.45%, 6/02/25 | | 40,000 | 39,267 |
| SVB Financial Group, 1.80%, 2/02/31 | | 70,000 | 56,011 |
| Truist Financial Corp., 4.00%, 5/01/25 | | 50,000 | 50,496 |
| Wells Fargo & Co., | | | |
| (SOFR + 0.51%), 0.81%, 5/19/25(h) | | 33,000 | 31,027 |
| (SOFR + 1.09%), 2.41%, 10/30/25(h) | | 12,000 | 11,525 |
| (SOFR + 1.32%), 3.91%, 4/25/26(h) | | 165,000 | 163,840 |
| 3.53%, 3/24/28(h) | | 160,000 | 153,579 |
| | | | 6,836,706 |
| Beverages – 0.0%(c) |
| Keurig Dr Pepper, Inc., 3.95%, 4/15/29 | | 20,000 | 19,494 |
| Building Materials – 0.2% |
| Boise Cascade Co., 4.88%, 7/01/30(b) | | 260,000 | 244,517 |
| Builders FirstSource, Inc., | | | |
| 5.00%, 3/01/30(b) | | 50,000 | 46,250 |
| 4.25%, 2/01/32(b) | | 50,000 | 42,687 |
|
| Griffon Corp., 5.75%, 3/01/28 | | 25,000 | 22,313 |
| Louisiana-Pacific Corp., 3.63%, 3/15/29(b) | | 300,000 | 258,000 |
| Martin Marietta Materials, Inc., 0.65%, 7/15/23 | | 55,000 | 53,604 |
| Standard Industries, Inc., 3.38%, 1/15/31(b) | | 50,000 | 39,933 |
| | | | 707,304 |
| Chemicals – 0.2% |
| Air Products and Chemicals, Inc., 1.85%, 5/15/27 | | 110,000 | 101,173 |
| Ashland LLC, 3.38%, 9/01/31(b) | | 70,000 | 60,550 |
| Celanese U.S. Holdings LLC, 1.40%, 8/05/26 | | 80,000 | 70,955 |
| Chemours (The) Co., 5.38%, 5/15/27 | | 50,000 | 48,250 |
| | | Par (a) | Value |
| Chemicals (Continued) |
| Ecolab, Inc., 0.90%, 12/15/23 | | $ 35,000 | $ 33,911 |
| Ingevity Corp., 3.88%, 11/01/28(b) | | 45,000 | 40,275 |
| PPG Industries, Inc., 1.20%, 3/15/26 | | 65,000 | 59,213 |
| Rayonier AM Products, Inc., 7.63%, 1/15/26(b) | | 51,000 | 48,440 |
| Sherwin-Williams (The) Co., 3.13%, 6/01/24 | | 160,000 | 159,176 |
| Tronox, Inc., 4.63%, 3/15/29(b) | | 10,000 | 8,925 |
| | | | 630,868 |
| Commercial Services – 0.3% |
| AMN Healthcare, Inc., 4.63%, 10/01/27(b) | | 15,000 | 14,402 |
| ASGN, Inc., 4.63%, 5/15/28(b) | | 100,000 | 92,900 |
| Block Financial LLC, 2.50%, 7/15/28 | | 39,000 | 34,569 |
| Cintas Corp. No. 2, | | | |
| 3.45%, 5/01/25 | | 135,000 | 134,432 |
| 3.70%, 4/01/27 | | 21,000 | 20,863 |
|
| CPI CG, Inc., 8.63%, 3/15/26(b) | | 10,000 | 9,650 |
| Equinix, Inc., 2.35%, 9/15/31 | | 10,000 | 8,394 |
| Gartner, Inc., | | | |
| 4.50%, 7/01/28(b) | | 30,000 | 28,752 |
| 3.63%, 6/15/29(b) | | 20,000 | 17,900 |
| 3.75%, 10/01/30(b) | | 40,000 | 35,672 |
|
| Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer, Inc., 5.00%, 2/01/26(b) | | 10,000 | 9,385 |
| Nielsen Finance LLC/Nielsen Finance Co., | | | |
| 5.63%, 10/01/28(b) | | 100,000 | 96,903 |
| 4.75%, 7/15/31(b) | | 40,000 | 37,805 |
|
| PayPal Holdings, Inc., 2.40%, 10/01/24 | | 200,000 | 196,334 |
| Prime Security Services Borrower LLC/Prime Finance, Inc., 5.75%, 4/15/26(b) | | 50,000 | 47,937 |
| Quanta Services, Inc., | | | |
| 0.95%, 10/01/24 | | 85,000 | 79,655 |
| 2.35%, 1/15/32 | | 50,000 | 40,736 |
| S&P Global, Inc., | | | |
| 2.45%, 3/01/27(b) | | 80,000 | 75,350 |
| 1.25%, 8/15/30 | | 110,000 | 89,294 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Commercial Services (Continued) |
|
| Service Corp. International, 3.38%, 8/15/30 | | $ 15,000 | $ 12,900 |
| | | | 1,083,833 |
| Computers – 0.4% |
| Apple, Inc., 1.40%, 8/05/28 | | 50,000 | 43,886 |
| Booz Allen Hamilton, Inc., | | | |
| 3.88%, 9/01/28(b) | | 10,000 | 9,212 |
| 4.00%, 7/01/29(b) | | 20,000 | 18,448 |
|
| Dell International LLC/EMC Corp., 5.85%, 7/15/25 | | 475,000 | 498,669 |
| Dell, Inc., 6.50%, 4/15/38 | | 50,000 | 51,250 |
| Fortinet, Inc., 2.20%, 3/15/31 | | 70,000 | 58,299 |
| Hewlett Packard Enterprise Co., 4.45%, 10/02/23 | | 200,000 | 202,925 |
| HP, Inc., | | | |
| 2.20%, 6/17/25 | | 70,000 | 66,493 |
| 1.45%, 6/17/26 | | 145,000 | 130,254 |
| 4.00%, 4/15/29 | | 310,000 | 294,553 |
|
| International Business Machines Corp., 2.20%, 2/09/27 | | 100,000 | 93,636 |
| Kyndryl Holdings, Inc., | | | |
| 2.05%, 10/15/26(b) | | 10,000 | 8,728 |
| 2.70%, 10/15/28(b) | | 20,000 | 16,670 |
|
| NetApp, Inc., 1.88%, 6/22/25 | | 20,000 | 18,846 |
| | | | 1,511,869 |
| Cosmetics/Personal Care – 0.0%(c) |
| Coty, Inc., 5.00%, 4/15/26(b) | | 50,000 | 47,492 |
| Distribution/Wholesale – 0.1% |
| American Builders & Contractors Supply Co., Inc., 3.88%, 11/15/29(b) | | 60,000 | 53,004 |
| Avient Corp., 5.75%, 5/15/25(b) | | 100,000 | 100,991 |
| G-III Apparel Group Ltd., 7.88%, 8/15/25(b) | | 200,000 | 208,000 |
| | | | 361,995 |
| Diversified Financial Services – 0.4% |
| Air Lease Corp., 3.38%, 7/01/25 | | 45,000 | 43,422 |
| Ally Financial, Inc., | | | |
| 3.05%, 6/05/23 | | 30,000 | 29,952 |
| 1.45%, 10/02/23 | | 25,000 | 24,303 |
| American Express Co., | | | |
| 2.50%, 7/30/24 | | 50,000 | 48,947 |
| | | Par (a) | Value |
| Diversified Financial Services (Continued) |
| American Express Co., | | | |
| 4.20%, 11/06/25 | | $ 50,000 | $ 51,181 |
|
| Ameriprise Financial, Inc., 3.00%, 4/02/25 | | 100,000 | 98,756 |
| Charles Schwab (The) Corp., | | | |
| 0.75%, 3/18/24 | | 30,000 | 28,726 |
| 1.15%, 5/13/26 | | 50,000 | 45,398 |
|
| Credit Acceptance Corp., 6.63%, 3/15/26 | | 100,000 | 101,000 |
| Curo Group Holdings Corp., 7.50%, 8/01/28(b) | | 145,000 | 120,713 |
| Intercontinental Exchange, Inc., | | | |
| 4.00%, 10/15/23 | | 50,000 | 50,741 |
| 3.75%, 9/21/28 | | 100,000 | 98,682 |
| LPL Holdings, Inc., | | | |
| 4.63%, 11/15/27(b) | | 100,000 | 94,875 |
| 4.38%, 5/15/31(b) | | 70,000 | 63,910 |
|
| Mastercard, Inc., 1.90%, 3/15/31 | | 22,000 | 19,127 |
| Nationstar Mortgage Holdings, Inc., | | | |
| 6.00%, 1/15/27(b) | | 100,000 | 97,000 |
| 5.50%, 8/15/28(b) | | 25,000 | 22,750 |
| 5.13%, 12/15/30(b) | | 80,000 | 69,583 |
| Navient Corp., | | | |
| 7.25%, 9/25/23 | | 45,000 | 46,125 |
| 5.00%, 3/15/27 | | 50,000 | 45,514 |
| OneMain Finance Corp., | | | |
| 6.88%, 3/15/25 | | 25,000 | 25,125 |
| 8.88%, 6/01/25 | | 100,000 | 104,950 |
|
| SLM Corp., 4.20%, 10/29/25 | | 50,000 | 48,838 |
| Visa, Inc., 1.90%, 4/15/27 | | 50,000 | 46,464 |
| | | | 1,426,082 |
| Electric – 0.4% |
| AEP Texas, Inc., 3.95%, 6/01/28 | | 50,000 | 49,188 |
| Alabama Power Co., 3.05%, 3/15/32 | | 35,000 | 31,936 |
| Arizona Public Service Co., 2.20%, 12/15/31 | | 50,000 | 41,335 |
| Berkshire Hathaway Energy Co., | | | |
| 4.05%, 4/15/25 | | 100,000 | 101,287 |
| 1.65%, 5/15/31 | | 25,000 | 20,469 |
|
| Black Hills Corp., 1.04%, 8/23/24 | | 10,000 | 9,438 |
| Calpine Corp., 4.63%, 2/01/29(b) | | 25,000 | 21,849 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Electric (Continued) |
|
| Constellation Energy Generation LLC, 3.25%, 6/01/25 | | $ 50,000 | $ 48,992 |
| Dominion Energy, Inc., 3.38%, 4/01/30 | | 50,000 | 46,298 |
| DPL, Inc., 4.35%, 4/15/29 | | 100,000 | 91,500 |
| DTE Energy Co., 1.05%, 6/01/25 | | 55,000 | 50,611 |
| Duke Energy Corp., | | | |
| 3.75%, 4/15/24 | | 30,000 | 30,215 |
| 3.40%, 6/15/29 | | 50,000 | 47,503 |
|
| Duke Energy Progress LLC, 3.40%, 4/01/32 | | 20,000 | 18,910 |
| Entergy Louisiana LLC, 1.60%, 12/15/30 | | 90,000 | 73,978 |
| Eversource Energy, 2.90%, 10/01/24 | | 50,000 | 49,146 |
| Florida Power & Light Co., 2.45%, 2/03/32 | | 30,000 | 26,466 |
| National Rural Utilities Cooperative Finance Corp., | | | |
| 1.00%, 6/15/26 | | 85,000 | 76,221 |
| 2.40%, 3/15/30 | | 100,000 | 88,679 |
|
| NextEra Energy Capital Holdings, Inc., 2.94%, 3/21/24 | | 80,000 | 79,413 |
| NextEra Energy Operating Partners L.P., 4.50%, 9/15/27(b) | | 50,000 | 47,362 |
| Pacific Gas and Electric Co., 2.50%, 2/01/31 | | 80,000 | 63,318 |
| Pattern Energy Operations L.P./Pattern Energy Operations, Inc., 4.50%, 8/15/28(b) | | 40,000 | 37,400 |
| PG&E Corp., 5.25%, 7/01/30 | | 100,000 | 90,879 |
| Public Service Enterprise Group, Inc., 1.60%, 8/15/30 | | 10,000 | 8,097 |
| Southern California Edison Co., 2.95%, 2/01/51 | | 6,000 | 4,316 |
| Terraform Global Operating LLC, 6.13%, 3/01/26(b) | | 125,000 | 122,812 |
| Union Electric Co., 2.95%, 3/15/30 | | 100,000 | 93,011 |
| Virginia Electric and Power Co., 2.30%, 11/15/31 | | 95,000 | 81,081 |
| Vistra Operations Co. LLC, 5.00%, 7/31/27(b) | | 50,000 | 47,625 |
| | | Par (a) | Value |
| Electric (Continued) |
|
| Wisconsin Electric Power Co., 1.70%, 6/15/28 | | $ 10,000 | $ 8,831 |
| Wisconsin Power and Light Co., 1.95%, 9/16/31 | | 5,000 | 4,187 |
| | | | 1,612,353 |
| Electrical Component & Equipment – 0.1% |
| Emerson Electric Co., 2.00%, 12/21/28 | | 270,000 | 241,344 |
| Electronics – 0.1% |
| Agilent Technologies, Inc., 2.30%, 3/12/31 | | 30,000 | 25,191 |
| Amphenol Corp., 2.05%, 3/01/25 | | 80,000 | 76,879 |
| Arrow Electronics, Inc., 2.95%, 2/15/32 | | 32,000 | 27,398 |
| Atkore, Inc., 4.25%, 6/01/31(b) | | 35,000 | 30,975 |
| Imola Merger Corp., 4.75%, 5/15/29(b) | | 50,000 | 46,500 |
| Jabil, Inc., | | | |
| 1.70%, 4/15/26 | | 65,000 | 58,636 |
| 5/15/27 (g) | | 70,000 | 69,337 |
|
| TD SYNNEX Corp., 2.38%, 8/09/28(b) | | 10,000 | 8,695 |
| Trimble, Inc., 4.90%, 6/15/28 | | 30,000 | 30,318 |
| | | | 373,929 |
| Energy - Alternate Sources – 0.1% |
| Enviva Partners Finance Corp., 6.50%, 1/15/26(b) | | 200,000 | 203,792 |
| Renewable Energy Group, Inc., 5.88%, 6/01/28(b) | | 10,000 | 10,591 |
| | | | 214,383 |
| Engineering & Construction – 0.1% |
| Artera Services LLC, 9.03%, 12/04/25(b) | | 20,000 | 18,929 |
| Brundage-Bone Concrete Pumping Holdings, Inc., 6.00%, 2/01/26(b) | | 256,000 | 239,360 |
| INNOVATE Corp., 8.50%, 2/01/26(b) | | 20,000 | 19,314 |
| Tutor Perini Corp., 6.88%, 5/01/25(b) | | 100,000 | 93,625 |
| Weekley Homes LLC/Weekley Finance Corp., 4.88%, 9/15/28(b) | | 15,000 | 13,249 |
| | | | 384,477 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Entertainment – 0.1% |
| Boyne USA, Inc., 4.75%, 5/15/29(b) | | $ 10,000 | $ 9,275 |
| Caesars Entertainment, Inc., 6.25%, 7/01/25(b) | | 55,000 | 55,598 |
| International Game Technology PLC, 5.25%, 1/15/29(b) | | 200,000 | 189,674 |
| Midwest Gaming Borrower LLC/Midwest Gaming Finance Corp., 4.88%, 5/01/29(b) | | 10,000 | 8,775 |
| Scientific Games International, Inc., 8.63%, 7/01/25(b) | | 45,000 | 47,138 |
| Six Flags Theme Parks, Inc., 7.00%, 7/01/25(b) | | 100,000 | 103,875 |
| Vail Resorts, Inc., 6.25%, 5/15/25(b) | | 100,000 | 102,250 |
| | | | 516,585 |
| Environmental Control – 0.0%(c) |
| Stericycle, Inc., 3.88%, 1/15/29(b) | | 35,000 | 30,865 |
| Waste Connections, Inc., | | | |
| 2.60%, 2/01/30 | | 5,000 | 4,461 |
| 3.20%, 6/01/32 | | 55,000 | 49,983 |
| | | | 85,309 |
| Food – 0.2% |
| Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertsons LLC, | | | |
| 4.63%, 1/15/27(b) | | 50,000 | 46,834 |
| 3.50%, 3/15/29(b) | | 30,000 | 25,272 |
| 4.88%, 2/15/30(b) | | 65,000 | 58,829 |
|
| Campbell Soup Co., 3.95%, 3/15/25 | | 100,000 | 100,632 |
| Chobani LLC/Chobani Finance Corp., Inc., 4.63%, 11/15/28(b) | | 30,000 | 27,000 |
| General Mills, Inc., 4.00%, 4/17/25 | | 30,000 | 30,424 |
| Ingles Markets, Inc., 4.00%, 6/15/31(b) | | 35,000 | 31,430 |
| Kraft Heinz Foods Co., | | | |
| 3.88%, 5/15/27 | | 160,000 | 156,460 |
| 5.20%, 7/15/45 | | 50,000 | 48,907 |
| 4.38%, 6/01/46 | | 100,000 | 87,614 |
| 5.50%, 6/01/50 | | 50,000 | 50,348 |
|
| United Natural Foods, Inc., 6.75%, 10/15/28(b) | | 20,000 | 20,015 |
| | | | 683,765 |
| | | Par (a) | Value |
| Forest Products & Paper – 0.0%(c) |
| Resolute Forest Products, Inc., 4.88%, 3/01/26(b) | | $ 20,000 | $ 19,075 |
| Gas – 0.1% |
| AmeriGas Partners L.P./AmeriGas Finance Corp., 5.75%, 5/20/27 | | 25,000 | 24,558 |
| National Fuel Gas Co., 2.95%, 3/01/31 | | 60,000 | 51,286 |
| NiSource, Inc., 0.95%, 8/15/25 | | 100,000 | 90,682 |
| Southern California Gas Co., 2.55%, 2/01/30 | | 30,000 | 26,601 |
| Southwest Gas Corp., 4.05%, 3/15/32 | | 45,000 | 42,545 |
| | | | 235,672 |
| Healthcare - Products – 0.1% |
| Hologic, Inc., | | | |
| 4.63%, 2/01/28(b) | | 50,000 | 48,906 |
| 3.25%, 2/15/29(b) | | 60,000 | 53,452 |
|
| Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics S.A., 7.25%, 2/01/28(b) | | 30,000 | 30,300 |
| PerkinElmer, Inc., | | | |
| 0.85%, 9/15/24 | | 270,000 | 252,949 |
| 1.90%, 9/15/28 | | 55,000 | 47,606 |
| | | | 433,213 |
| Healthcare - Services – 0.4% |
| Centene Corp., 2.63%, 8/01/31 | | 80,000 | 66,457 |
| Charles River Laboratories International, Inc., 4.25%, 5/01/28(b) | | 100,000 | 95,453 |
| CHS/Community Health Systems, Inc., | | | |
| 8.00%, 3/15/26(b) | | 50,000 | 51,690 |
| 5.63%, 3/15/27(b) | | 25,000 | 23,831 |
| HCA, Inc., | | | |
| 5.25%, 4/15/25 | | 115,000 | 118,463 |
| 4.13%, 6/15/29 | | 185,000 | 177,001 |
| 2.38%, 7/15/31 | | 75,000 | 61,699 |
| Humana, Inc., | | | |
| 3.85%, 10/01/24 | | 10,000 | 10,047 |
| 4.50%, 4/01/25 | | 125,000 | 127,470 |
|
| Laboratory Corp. of America Holdings, 1.55%, 6/01/26 | | 200,000 | 182,495 |
| LifePoint Health, Inc., 5.38%, 1/15/29(b) | | 30,000 | 25,650 |
| ModivCare, Inc., 5.88%, 11/15/25(b) | | 35,000 | 34,300 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Healthcare - Services (Continued) |
| Molina Healthcare, Inc., | | | |
| 4.38%, 6/15/28(b) | | $200,000 | $ 186,928 |
| 3.88%, 11/15/30(b) | | 50,000 | 45,100 |
|
| Prime Healthcare Services, Inc., 7.25%, 11/01/25(b) | | 30,000 | 30,075 |
| RP Escrow Issuer LLC, 5.25%, 12/15/25(b) | | 15,000 | 13,950 |
| Syneos Health, Inc., 3.63%, 1/15/29(b) | | 15,000 | 13,270 |
| Tenet Healthcare Corp., 6.13%, 10/01/28(b) | | 65,000 | 62,397 |
| UnitedHealth Group, Inc., 2.00%, 5/15/30 | | 125,000 | 108,398 |
| | | | 1,434,674 |
| Home Builders – 0.2% |
| Century Communities, Inc., | | | |
| 6.75%, 6/01/27 | | 100,000 | 101,101 |
| 3.88%, 8/15/29(b) | | 125,000 | 105,324 |
|
| LGI Homes, Inc., 4.00%, 7/15/29(b) | | 105,000 | 86,849 |
| NVR, Inc., 3.00%, 5/15/30 | | 45,000 | 40,037 |
| Shea Homes L.P./Shea Homes Funding Corp., 4.75%, 4/01/29(b) | | 50,000 | 43,275 |
| Tri Pointe Homes, Inc., 5.70%, 6/15/28 | | 50,000 | 47,913 |
| Williams Scotsman International, Inc., 4.63%, 8/15/28(b) | | 365,000 | 345,454 |
| Winnebago Industries, Inc., 6.25%, 7/15/28(b) | | 10,000 | 9,925 |
| | | | 779,878 |
| Household Products/Wares – 0.0%(c) |
| Spectrum Brands, Inc., 3.88%, 3/15/31(b) | | 55,000 | 46,062 |
| Housewares – 0.0%(c) |
| Newell Brands, Inc., 4.45%, 4/01/26 | | 100,000 | 99,144 |
| Insurance – 0.3% |
| Aflac, Inc., | | | |
| 1.13%, 3/15/26 | | 180,000 | 163,993 |
| 3.60%, 4/01/30 | | 64,000 | 62,319 |
|
| Aon Corp., 2.80%, 5/15/30 | | 20,000 | 17,791 |
| AssuredPartners, Inc., 5.63%, 1/15/29(b) | | 15,000 | 13,192 |
| Berkshire Hathaway, Inc., 3.13%, 3/15/26 | | 95,000 | 94,307 |
| Brown & Brown, Inc., 4.20%, 3/17/32 | | 45,000 | 43,097 |
| | | Par (a) | Value |
| Insurance (Continued) |
|
| Corebridge Financial, Inc., 3.50%, 4/04/25(b) | | $ 80,000 | $ 79,189 |
| Enstar Group Ltd., 3.10%, 9/01/31 | | 95,000 | 79,669 |
| Marsh & McLennan Cos., Inc., | | | |
| 3.88%, 3/15/24 | | 200,000 | 202,359 |
| 4.38%, 3/15/29 | | 50,000 | 50,509 |
| 2.25%, 11/15/30 | | 50,000 | 43,312 |
| 2.38%, 12/15/31 | | 100,000 | 86,411 |
|
| MGIC Investment Corp., 5.25%, 8/15/28 | | 50,000 | 46,939 |
| Progressive (The) Corp., 2.50%, 3/15/27 | | 30,000 | 28,427 |
| Radian Group, Inc., 6.63%, 3/15/25 | | 100,000 | 101,801 |
| | | | 1,113,315 |
| Internet – 0.3% |
| Amazon.com, Inc., 2.10%, 5/12/31 | | 110,000 | 95,755 |
| Arches Buyer, Inc., 4.25%, 6/01/28(b) | | 15,000 | 13,331 |
| Booking Holdings, Inc., 4.63%, 4/13/30 | | 23,000 | 23,519 |
| eBay, Inc., 1.90%, 3/11/25 | | 210,000 | 199,938 |
| Expedia Group, Inc., 3.60%, 12/15/23 | | 70,000 | 69,998 |
| Match Group Holdings II LLC, | | | |
| 4.13%, 8/01/30(b) | | 75,000 | 67,031 |
| 3.63%, 10/01/31(b) | | 35,000 | 29,116 |
| Netflix, Inc., | | | |
| 3.63%, 6/15/25(b) | | 100,000 | 97,750 |
| 5.88%, 11/15/28 | | 50,000 | 51,500 |
| 6.38%, 5/15/29 | | 75,000 | 79,500 |
| 5.38%, 11/15/29(b) | | 75,000 | 75,075 |
|
| TripAdvisor, Inc., 7.00%, 7/15/25(b) | | 5,000 | 5,125 |
| Uber Technologies, Inc., | | | |
| 7.50%, 5/15/25(b) | | 75,000 | 77,438 |
| 8.00%, 11/01/26(b) | | 200,000 | 209,500 |
|
| VeriSign, Inc., 4.75%, 7/15/27 | | 100,000 | 100,460 |
| | | | 1,195,036 |
| Investment Management Companies – 0.3% |
| Ares Capital Corp., | | | |
| 4.25%, 3/01/25 | | 100,000 | 98,463 |
| 3.88%, 1/15/26 | | 172,000 | 165,125 |
| 2.15%, 7/15/26 | | 88,000 | 78,054 |
| 2.88%, 6/15/27 | | 60,000 | 53,738 |
| 2.88%, 6/15/28 | | 40,000 | 34,533 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Investment Management Companies (Continued) |
|
| Barings BDC, Inc., 3.30%, 11/23/26(b) | | $ 64,000 | $ 57,217 |
| Blackstone Private Credit Fund, 2.70%, 1/15/25(b) | | 60,000 | 56,401 |
| Compass Group Diversified Holdings LLC, 5.25%, 4/15/29(b) | | 40,000 | 35,900 |
| FS KKR Capital Corp., | | | |
| 1.65%, 10/12/24 | | 140,000 | 131,078 |
| 2.63%, 1/15/27 | | 150,000 | 134,454 |
| 3.25%, 7/15/27 | | 10,000 | 9,057 |
|
| Goldman Sachs BDC, Inc., 2.88%, 1/15/26 | | 42,000 | 39,755 |
| Golub Capital BDC, Inc., 2.50%, 8/24/26 | | 75,000 | 66,838 |
| Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 4.38%, 2/01/29 | | 60,000 | 51,764 |
| Morgan Stanley Direct Lending Fund, 4.50%, 2/11/27(b) | | 60,000 | 56,265 |
| Prospect Capital Corp., 3.36%, 11/15/26 | | 60,000 | 53,708 |
| | | | 1,122,350 |
| Iron/Steel – 0.1% |
| Big River Steel LLC/BRS Finance Corp., 6.63%, 1/31/29(b) | | 24,000 | 24,540 |
| Cleveland-Cliffs, Inc., | | | |
| 5.88%, 6/01/27 | | 50,000 | 49,750 |
| 4.63%, 3/01/29(b) | | 15,000 | 14,060 |
| 4.88%, 3/01/31(b) | | 35,000 | 32,375 |
|
| Nucor Corp., 3.13%, 4/01/32 | | 50,000 | 45,007 |
| Reliance Steel & Aluminum Co., 1.30%, 8/15/25 | | 40,000 | 37,021 |
| United States Steel Corp., 6.88%, 3/01/29 | | 30,000 | 30,520 |
| | | | 233,273 |
| Leisure Time – 0.0%(c) |
| Life Time, Inc., 5.75%, 1/15/26(b) | | 5,000 | 4,851 |
| Royal Caribbean Cruises Ltd., | | | |
| 9.13%, 6/15/23(b) | | 50,000 | 51,617 |
| 11.50%, 6/01/25(b) | | 15,000 | 16,308 |
| | | | 72,776 |
| Lodging – 0.1% |
| Choice Hotels International, Inc., 3.70%, 12/01/29 | | 55,000 | 51,395 |
| | | Par (a) | Value |
| Lodging (Continued) |
| Full House Resorts, Inc., 8.25%, 2/15/28(b) | | $ 10,000 | $ 9,902 |
| Hilton Domestic Operating Co., Inc., 4.00%, 5/01/31(b) | | 50,000 | 44,717 |
| Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, 4.88%, 7/01/31(b) | | 70,000 | 61,131 |
| Marriott International, Inc., 5.75%, 5/01/25 | | 9,000 | 9,433 |
| Marriott Ownership Resorts, Inc., 4.50%, 6/15/29(b) | | 25,000 | 22,000 |
| | | | 198,578 |
| Machinery - Construction & Mining – 0.1% |
| Caterpillar Financial Services Corp., | | | |
| 0.45%, 5/17/24 | | 190,000 | 180,424 |
| 0.80%, 11/13/25 | | 60,000 | 54,829 |
|
| Terex Corp., 5.00%, 5/15/29(b) | | 250,000 | 229,735 |
| | | | 464,988 |
| Machinery - Diversified – 0.0%(c) |
| GrafTech Finance, Inc., 4.63%, 12/15/28(b) | | 110,000 | 100,403 |
| IDEX Corp., 2.63%, 6/15/31 | | 60,000 | 51,992 |
| | | | 152,395 |
| Media – 0.3% |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | |
| 4.75%, 3/01/30(b) | | 100,000 | 89,375 |
| 4.50%, 5/01/32 | | 100,000 | 84,115 |
| 4.25%, 1/15/34(b) | | 100,000 | 79,500 |
|
| Charter Communications Operating LLC/Charter Communications Operating Capital, 2.25%, 1/15/29 | | 125,000 | 106,516 |
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 8/15/27(b) | | 15,000 | 14,119 |
| DISH DBS Corp., | | | |
| 5.88%, 11/15/24 | | 100,000 | 97,000 |
| 7.75%, 7/01/26 | | 50,000 | 47,033 |
| 7.38%, 7/01/28 | | 20,000 | 17,488 |
|
| FactSet Research Systems, Inc., 2.90%, 3/01/27 | | 150,000 | 141,818 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Media (Continued) |
|
| GCI LLC, 4.75%, 10/15/28(b) | | $ 20,000 | $ 18,550 |
| Nexstar Media, Inc., 5.63%, 7/15/27(b) | | 100,000 | 97,313 |
| Sirius XM Radio, Inc., | | | |
| 5.50%, 7/01/29(b) | | 49,000 | 47,121 |
| 3.88%, 9/01/31(b) | | 115,000 | 97,119 |
| TEGNA, Inc., | | | |
| 4.75%, 3/15/26(b) | | 55,000 | 54,519 |
| 5.00%, 9/15/29 | | 200,000 | 194,000 |
|
| Townsquare Media, Inc., 6.88%, 2/01/26(b) | | 15,000 | 14,934 |
| | | | 1,200,520 |
| Mining – 0.1% |
| Arconic Corp., 6.13%, 2/15/28(b) | | 40,000 | 38,750 |
| Freeport-McMoRan, Inc., | | | |
| 4.55%, 11/14/24 | | 84,000 | 85,124 |
| 4.13%, 3/01/28 | | 120,000 | 116,033 |
| 5.45%, 3/15/43 | | 7,000 | 6,997 |
|
| Joseph T Ryerson & Son, Inc., 8.50%, 8/01/28(b) | | 13,000 | 13,975 |
| | | | 260,879 |
| Office/Business Equipment – 0.0%(c) |
| CDW LLC/CDW Finance Corp., 2.67%, 12/01/26 | | 140,000 | 128,572 |
| Xerox Holdings Corp., 5.50%, 8/15/28(b) | | 25,000 | 22,500 |
| | | | 151,072 |
| Oil & Gas – 0.5% |
| Antero Resources Corp., | | | |
| 8.38%, 7/15/26(b) | | 3,000 | 3,233 |
| 7.63%, 2/01/29(b) | | 92,000 | 97,483 |
| 5.38%, 3/01/30(b) | | 20,000 | 19,542 |
| Apache Corp., | | | |
| 4.25%, 1/15/30 | | 50,000 | 46,453 |
| 5.10%, 9/01/40 | | 25,000 | 22,625 |
|
| Ascent Resources Utica Holdings LLC/ARU Finance Corp., 8.25%, 12/31/28(b) | | 10,000 | 10,400 |
| Chevron Corp., 1.55%, 5/11/25 | | 80,000 | 75,846 |
| Chevron USA, Inc., | | | |
| 3.85%, 1/15/28 | | 30,000 | 30,226 |
| 3.25%, 10/15/29 | | 20,000 | 19,242 |
| CNX Resources Corp., | | | |
| 7.25%, 3/14/27(b) | | 125,000 | 127,779 |
| 6.00%, 1/15/29(b) | | 40,000 | 39,463 |
| | | Par (a) | Value |
| Oil & Gas (Continued) |
|
| Colgate Energy Partners III LLC, 5.88%, 7/01/29(b) | | $ 10,000 | $ 9,950 |
| Conoco Funding Co., 7.25%, 10/15/31 | | 9,000 | 11,198 |
| ConocoPhillips Co., | | | |
| 2.40%, 3/07/25 | | 35,000 | 34,058 |
| 6.95%, 4/15/29 | | 11,000 | 12,965 |
|
| Continental Resources, Inc., 4.38%, 1/15/28 | | 75,000 | 73,104 |
| CrownRock L.P./CrownRock Finance, Inc., 5.00%, 5/01/29(b) | | 10,000 | 9,786 |
| CVR Energy, Inc., 5.25%, 2/15/25(b) | | 25,000 | 24,185 |
| Devon Energy Corp., | | | |
| 4.50%, 1/15/30 | | 35,000 | 34,192 |
| 7.95%, 4/15/32 | | 19,000 | 23,241 |
|
| Diamondback Energy, Inc., 3.13%, 3/24/31 | | 25,000 | 22,309 |
| EQT Corp., | | | |
| 3.90%, 10/01/27 | | 100,000 | 95,747 |
| 7.50%, 2/01/30 | | 100,000 | 110,759 |
|
| Exxon Mobil Corp., 2.99%, 3/19/25 | | 80,000 | 79,207 |
| Hess Corp., 4.30%, 4/01/27 | | 50,000 | 49,535 |
| Hilcorp Energy I L.P./Hilcorp Finance Co., 6.00%, 2/01/31(b) | | 30,000 | 28,951 |
| Murphy Oil Corp., 6.38%, 7/15/28 | | 35,000 | 35,607 |
| Northern Oil and Gas, Inc., 8.13%, 3/01/28(b) | | 65,000 | 64,675 |
| Occidental Petroleum Corp., | | | |
| 8.00%, 7/15/25 | | 40,000 | 43,100 |
| 5.50%, 12/01/25 | | 25,000 | 25,438 |
| 8.50%, 7/15/27 | | 65,000 | 73,287 |
| 6.38%, 9/01/28 | | 45,000 | 47,250 |
| 3.50%, 8/15/29 | | 75,000 | 70,031 |
| 6.13%, 1/01/31 | | 25,000 | 26,277 |
| 6.45%, 9/15/36 | | 25,000 | 27,125 |
| 4.40%, 4/15/46 | | 50,000 | 42,880 |
|
| Ovintiv Exploration, Inc., 5.38%, 1/01/26 | | 50,000 | 51,823 |
| Pioneer Natural Resources Co., 0.55%, 5/15/23 | | 40,000 | 38,979 |
| Range Resources Corp., 4.88%, 5/15/25 | | 100,000 | 99,000 |
| Southwestern Energy Co., | | | |
| 7.75%, 10/01/27 | | 75,000 | 78,265 |
| 8.38%, 9/15/28 | | 15,000 | 16,219 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Oil & Gas (Continued) |
|
| Sunoco L.P./Sunoco Finance Corp., 4.50%, 5/15/29 | | $ 35,000 | $ 31,473 |
| Valero Energy Corp., 2.80%, 12/01/31 | | 30,000 | 25,934 |
| | | | 1,908,842 |
| Oil & Gas Services – 0.0%(c) |
| Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 4.49%, 5/01/30 | | 50,000 | 50,471 |
| Bristow Group, Inc., 6.88%, 3/01/28(b) | | 10,000 | 9,800 |
| | | | 60,271 |
| Packaging & Containers – 0.1% |
| Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 5.25%, 4/30/25(b) | | 200,000 | 198,665 |
| Berry Global, Inc., 4.50%, 2/15/26(b) | | 45,000 | 44,269 |
| Sealed Air Corp., 6.88%, 7/15/33(b) | | 60,000 | 65,731 |
| | | | 308,665 |
| Pharmaceuticals – 0.3% |
| AbbVie, Inc., | | | |
| 3.85%, 6/15/24 | | 100,000 | 100,850 |
| 2.60%, 11/21/24 | | 370,000 | 361,022 |
| 3.80%, 3/15/25 | | 70,000 | 70,062 |
|
| Bristol-Myers Squibb Co., 1.45%, 11/13/30 | | 50,000 | 40,658 |
| CVS Health Corp., 1.30%, 8/21/27 | | 65,000 | 56,897 |
| Herbalife Nutrition Ltd./HLF Financing, Inc., 7.88%, 9/01/25(b) | | 100,000 | 98,375 |
| HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 4.88%, 6/01/29(b) | | 100,000 | 80,492 |
| Horizon Therapeutics USA, Inc., 5.50%, 8/01/27(b) | | 200,000 | 199,956 |
| McKesson Corp., 0.90%, 12/03/25 | | 75,000 | 67,962 |
| Viatris, Inc., 1.65%, 6/22/25 | | 30,000 | 27,521 |
| Zoetis, Inc., 2.00%, 5/15/30 | | 100,000 | 86,274 |
| | | | 1,190,069 |
| | | Par (a) | Value |
| Pipelines – 0.6% |
| Antero Midstream Partners L.P./Antero Midstream Finance Corp., | | | |
| 5.75%, 3/01/27(b) | | $ 75,000 | $ 73,030 |
| 5.38%, 6/15/29(b) | | 65,000 | 60,926 |
| Cheniere Corpus Christi Holdings LLC, | | | |
| 5.88%, 3/31/25 | | 255,000 | 264,730 |
| 3.70%, 11/15/29 | | 40,000 | 37,485 |
|
| Cheniere Energy Partners L.P., 3.25%, 1/31/32(b) | | 40,000 | 34,200 |
| Cheniere Energy, Inc., 4.63%, 10/15/28 | | 25,000 | 24,188 |
| Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 6.00%, 2/01/29(b) | | 30,000 | 29,180 |
| DCP Midstream Operating L.P., | | | |
| 3.25%, 2/15/32 | | 75,000 | 63,601 |
| 5.60%, 4/01/44 | | 25,000 | 23,900 |
|
| Energy Transfer L.P., 4.05%, 3/15/25 | | 50,000 | 49,722 |
| EnLink Midstream LLC, | | | |
| 5.63%, 1/15/28(b) | | 25,000 | 24,772 |
| 5.38%, 6/01/29 | | 25,000 | 24,333 |
| EnLink Midstream Partners L.P., | | | |
| 4.85%, 7/15/26 | | 50,000 | 48,625 |
| 5.45%, 6/01/47 | | 25,000 | 20,250 |
| EQM Midstream Partners L.P., | | | |
| 4.13%, 12/01/26 | | 100,000 | 92,875 |
| 6.50%, 7/01/27(b) | | 20,000 | 20,200 |
| 6.50%, 7/15/48 | | 10,000 | 9,200 |
|
| Genesis Energy L.P./Genesis Energy Finance Corp., 8.00%, 1/15/27 | | 40,000 | 39,230 |
| Global Partners L.P./GLP Finance Corp., 6.88%, 1/15/29 | | 100,000 | 97,506 |
| Harvest Midstream I L.P., 7.50%, 9/01/28(b) | | 35,000 | 35,513 |
| Hess Midstream Operations L.P., | | | |
| 5.13%, 6/15/28(b) | | 75,000 | 72,562 |
| 4.25%, 2/15/30(b) | | 25,000 | 22,932 |
| 5.50%, 10/15/30(b) | | 20,000 | 19,706 |
| MPLX L.P., | | | |
| 4.88%, 12/01/24 | | 12,000 | 12,230 |
| 4.13%, 3/01/27 | | 180,000 | 178,332 |
| 2.65%, 8/15/30 | | 20,000 | 17,166 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Pipelines (Continued) |
|
| New Fortress Energy, Inc., 6.75%, 9/15/25(b) | | $115,000 | $ 113,061 |
| ONEOK, Inc., | | | |
| 2.75%, 9/01/24 | | 50,000 | 48,763 |
| 6.35%, 1/15/31 | | 60,000 | 65,517 |
|
| Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 5.50%, 1/15/28(b) | | 100,000 | 93,216 |
| Targa Resources Corp., 4.20%, 2/01/33 | | 40,000 | 37,911 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., | | | |
| 6.50%, 7/15/27 | | 17,000 | 17,512 |
| 5.50%, 3/01/30 | | 25,000 | 24,781 |
| 4.00%, 1/15/32 | | 60,000 | 54,410 |
|
| Transcontinental Gas Pipe Line Co. LLC, 3.25%, 5/15/30 | | 30,000 | 27,789 |
| Western Midstream Operating L.P., | | | |
| 4.65%, 7/01/26 | | 50,000 | 49,312 |
| 4.75%, 8/15/28 | | 25,000 | 24,344 |
| 4.55%, 2/01/30 | | 75,000 | 68,902 |
| 5.50%, 8/15/48 | | 25,000 | 22,250 |
|
| Williams (The) Cos., Inc., 2.60%, 3/15/31 | | 170,000 | 147,266 |
| | | | 2,191,428 |
| Real Estate – 0.0%(c) |
| Howard Hughes (The) Corp., 4.38%, 2/01/31(b) | | 15,000 | 13,341 |
| Kennedy-Wilson, Inc., 5.00%, 3/01/31 | | 45,000 | 40,614 |
| | | | 53,955 |
| Real Estate Investment Trusts – 0.7% |
| American Tower Corp., | | | |
| 0.60%, 1/15/24 | | 135,000 | 129,067 |
| 5.00%, 2/15/24 | | 80,000 | 82,014 |
| 1.45%, 9/15/26 | | 65,000 | 58,038 |
| 3.65%, 3/15/27 | | 110,000 | 105,935 |
|
| Camden Property Trust, 3.15%, 7/01/29 | | 50,000 | 47,275 |
| Crown Castle International Corp., | | | |
| 3.20%, 9/01/24 | | 30,000 | 29,753 |
| 1.35%, 7/15/25 | | 200,000 | 184,425 |
| 2.90%, 3/15/27 | | 25,000 | 23,406 |
| Equinix, Inc., | | | |
| 2.63%, 11/18/24 | | 80,000 | 77,860 |
| 1.25%, 7/15/25 | | 200,000 | 183,994 |
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
|
| Essex Portfolio L.P., 1.70%, 3/01/28 | | $230,000 | $201,290 |
| Federal Realty Investment Trust, 3.95%, 1/15/24 | | 50,000 | 50,309 |
| GLP Capital L.P./GLP Financing II, Inc., 4.00%, 1/15/31 | | 25,000 | 22,635 |
| Iron Mountain Information Management Services, Inc., 5.00%, 7/15/32(b) | | 60,000 | 52,871 |
| Iron Mountain, Inc., | | | |
| 5.00%, 7/15/28(b) | | 75,000 | 71,050 |
| 4.88%, 9/15/29(b) | | 75,000 | 68,703 |
| 5.25%, 7/15/30(b) | | 40,000 | 36,662 |
| 4.50%, 2/15/31(b) | | 30,000 | 25,706 |
| 5.63%, 7/15/32(b) | | 50,000 | 45,211 |
|
| iStar, Inc., 4.25%, 8/01/25 | | 100,000 | 95,313 |
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.75%, 6/15/29(b) | | 80,000 | 71,766 |
| MPT Operating Partnership L.P./MPT Finance Corp., 3.50%, 3/15/31 | | 35,000 | 29,728 |
| Office Properties Income Trust, 3.45%, 10/15/31 | | 58,000 | 45,429 |
| Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, 5.88%, 10/01/28(b) | | 110,000 | 106,700 |
| Public Storage, | | | |
| 1.95%, 11/09/28 | | 125,000 | 111,053 |
| 3.39%, 5/01/29 | | 25,000 | 24,068 |
|
| SBA Communications Corp., 3.13%, 2/01/29 | | 10,000 | 8,578 |
| Simon Property Group L.P., | | | |
| 3.50%, 9/01/25 | | 65,000 | 64,535 |
| 1.38%, 1/15/27 | | 10,000 | 8,929 |
| Starwood Property Trust, Inc., | | | |
| 5.50%, 11/01/23(b) | | 35,000 | 35,262 |
| 4.75%, 3/15/25 | | 50,000 | 49,335 |
| 3.63%, 7/15/26(b) | | 25,000 | 22,812 |
| 4.38%, 1/15/27(b) | | 35,000 | 32,651 |
|
| Uniti Group L.P./Uniti Fiber Holdings, Inc./CSL Capital LLC, 7.88%, 2/15/25(b) | | 50,000 | 50,875 |
| VICI Properties L.P./VICI Note Co., Inc., | | | |
| 5.75%, 2/01/27 | | 100,000 | 103,000 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
| VICI Properties L.P./VICI Note Co., Inc., | | | |
| 4.13%, 8/15/30(b) | | $ 50,000 | $ 44,918 |
|
| Welltower, Inc., 4.00%, 6/01/25 | | 25,000 | 25,029 |
| XHR L.P., 6.38%, 8/15/25(b) | | 30,000 | 30,357 |
| | | | 2,456,542 |
| Retail – 0.3% |
| Abercrombie & Fitch Management Co., 8.75%, 7/15/25(b) | | 225,000 | 235,179 |
| Asbury Automotive Group, Inc., 4.75%, 3/01/30 | | 35,000 | 31,368 |
| Bath & Body Works, Inc., | | | |
| 5.25%, 2/01/28 | | 25,000 | 24,000 |
| 6.63%, 10/01/30(b) | | 35,000 | 34,811 |
|
| Genuine Parts Co., 1.75%, 2/01/25 | | 190,000 | 180,405 |
| Group 1 Automotive, Inc., 4.00%, 8/15/28(b) | | 20,000 | 17,995 |
| Lowe's Cos., Inc., | | | |
| 4.00%, 4/15/25 | | 45,000 | 45,594 |
| 3.35%, 4/01/27 | | 55,000 | 53,662 |
|
| Macy's Retail Holdings LLC, 5.88%, 4/01/29(b) | | 5,000 | 4,743 |
| Michaels (The) Cos., Inc., 5.25%, 5/01/28(b) | | 20,000 | 17,188 |
| Murphy Oil USA, Inc., 3.75%, 2/15/31(b) | | 25,000 | 21,959 |
| Ross Stores, Inc., 4.70%, 4/15/27 | | 2,000 | 2,057 |
| Victoria's Secret & Co., 4.63%, 7/15/29(b) | | 20,000 | 16,407 |
| Walmart, Inc., 1.50%, 9/22/28 | | 75,000 | 66,328 |
| Yum! Brands, Inc., | | | |
| 4.75%, 1/15/30(b) | | 50,000 | 47,563 |
| 4.63%, 1/31/32 | | 100,000 | 90,875 |
| | | | 890,134 |
| Semiconductors – 0.2% |
| Amkor Technology, Inc., 6.63%, 9/15/27(b) | | 100,000 | 101,750 |
| Analog Devices, Inc., | | | |
| 1.70%, 10/01/28 | | 40,000 | 35,038 |
| 2.10%, 10/01/31 | | 30,000 | 25,850 |
|
| Broadcom, Inc., 4.00%, 4/15/29(b) | | 145,000 | 138,211 |
| Entegris, Inc., 3.63%, 5/01/29(b) | | 30,000 | 26,391 |
| Intel Corp., 3.75%, 3/25/27 | | 100,000 | 100,468 |
| | | Par (a) | Value |
| Semiconductors (Continued) |
|
| Qorvo, Inc., 1.75%, 12/15/24(b) | | $ 20,000 | $ 18,867 |
| Skyworks Solutions, Inc., 0.90%, 6/01/23 | | 95,000 | 92,621 |
| Texas Instruments, Inc., 1.90%, 9/15/31 | | 65,000 | 55,395 |
| | | | 594,591 |
| Software – 0.3% |
| Change Healthcare Holdings LLC/Change Healthcare Finance, Inc., 5.75%, 3/01/25(b) | | 100,000 | 99,750 |
| Intuit, Inc., | | | |
| 1.35%, 7/15/27 | | 60,000 | 53,434 |
| 1.65%, 7/15/30 | | 45,000 | 37,521 |
| MSCI, Inc., | | | |
| 3.88%, 2/15/31(b) | | 100,000 | 90,250 |
| 3.63%, 11/01/31(b) | | 100,000 | 87,750 |
| 3.25%, 8/15/33(b) | | 55,000 | 46,475 |
|
| Oracle Corp., 1.65%, 3/25/26 | | 180,000 | 162,629 |
| Roper Technologies, Inc., 1.00%, 9/15/25 | | 45,000 | 41,173 |
| SS&C Technologies, Inc., 5.50%, 9/30/27(b) | | 156,000 | 152,886 |
| Take-Two Interactive Software, Inc., 3.30%, 3/28/24 | | 70,000 | 69,575 |
| VMware, Inc., 4.50%, 5/15/25 | | 10,000 | 10,132 |
| Ziff Davis, Inc., 4.63%, 10/15/30(b) | | 192,000 | 171,205 |
| | | | 1,022,780 |
| Telecommunications – 0.4% |
| AT&T, Inc., 1.70%, 3/25/26 | | 295,000 | 272,384 |
| Consolidated Communications, Inc., 6.50%, 10/01/28(b) | | 15,000 | 13,070 |
| Frontier Communications Holdings LLC, 5.88%, 10/15/27(b) | | 10,000 | 9,575 |
| Level 3 Financing, Inc., 3.63%, 1/15/29(b) | | 100,000 | 81,156 |
| Lumen Technologies, Inc., | | | |
| 4.50%, 1/15/29(b) | | 50,000 | 39,508 |
| 5.38%, 6/15/29(b) | | 33,000 | 26,872 |
|
| Motorola Solutions, Inc., 4.60%, 5/23/29 | | 100,000 | 98,021 |
| Sprint Capital Corp., | | | |
| 6.88%, 11/15/28 | | 50,000 | 54,880 |
| 8.75%, 3/15/32 | | 75,000 | 95,312 |
|
| Sprint Corp., 7.13%, 6/15/24 | | 100,000 | 105,250 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Telecommunications (Continued) |
|
| T-Mobile USA, Inc., 3.50%, 4/15/25 | | $425,000 | $ 418,973 |
| Verizon Communications, Inc., 3.00%, 3/22/27 | | 100,000 | 95,750 |
| ViaSat, Inc., | | | |
| 5.63%, 4/15/27(b) | | 100,000 | 92,750 |
| 6.50%, 7/15/28(b) | | 115,000 | 99,331 |
| | | | 1,502,832 |
| Transportation – 0.1% |
| Cargo Aircraft Management, Inc., 4.75%, 2/01/28(b) | | 10,000 | 9,401 |
| Union Pacific Corp., 3.75%, 7/15/25 | | 90,000 | 90,841 |
| United Parcel Service, Inc., 4.45%, 4/01/30 | | 60,000 | 62,340 |
| Watco Cos. LLC/Watco Finance Corp., 6.50%, 6/15/27(b) | | 15,000 | 14,475 |
| XPO Logistics, Inc., 6.25%, 5/01/25(b) | | 22,000 | 22,493 |
| | | | 199,550 |
| Trucking & Leasing – 0.1% |
| Fortress Transportation and Infrastructure Investors LLC, | | | |
| 6.50%, 10/01/25(b) | | 30,000 | 28,575 |
| 9.75%, 8/01/27(b) | | 320,000 | 326,483 |
| | | | 355,058 |
Total Corporate Bonds
(Cost $44,385,891) | 41,208,671 |
|
| Foreign Issuer Bonds – 2.2% |
| Brazil – 0.1% |
| Vale Overseas Ltd., 6.25%, 8/10/26 | | 280,000 | 294,420 |
| Burkina Faso – 0.0%(c) |
| IAMGOLD Corp., 5.75%, 10/15/28(b) | | 30,000 | 25,522 |
| Canada – 0.7% |
| 1011778 B.C. ULC/New Red Finance, Inc., | | | |
| 3.88%, 1/15/28(b) | | 95,000 | 87,400 |
| 4.00%, 10/15/30(b) | | 130,000 | 111,130 |
|
| Air Canada, 3.88%, 8/15/26(b) | | 35,000 | 32,364 |
| Bank of Montreal, 0.45%, 12/08/23 | | 180,000 | 172,735 |
| Bank of Nova Scotia (The), | | | |
| 0.65%, 7/31/24 | | 95,000 | 89,043 |
| | | Par (a) | Value |
| Canada (Continued) |
| Bank of Nova Scotia (The), | | | |
| 3.45%, 4/11/25 | | $ 70,000 | $ 69,210 |
| 1.05%, 3/02/26 | | 90,000 | 80,941 |
| 1.35%, 6/24/26 | | 160,000 | 144,599 |
|
| Brookfield Asset Management, Inc., 4.00%, 1/15/25 | | 50,000 | 50,509 |
| Brookfield Finance I UK PLC, 2.34%, 1/30/32 | | 20,000 | 16,629 |
| Canadian Imperial Bank of Commerce, | | | |
| 3.30%, 4/07/25 | | 230,000 | 226,637 |
| 0.95%, 10/23/25 | | 170,000 | 154,459 |
|
| Canadian Natural Resources Ltd., 2.95%, 7/15/30 | | 215,000 | 192,579 |
| Cascades, Inc./Cascades USA, Inc., 5.38%, 1/15/28(b) | | 130,000 | 125,450 |
| Cenovus Energy, Inc., 5.38%, 7/15/25 | | 6,000 | 6,222 |
| Empire Communities Corp., 7.00%, 12/15/25(b) | | 20,000 | 18,950 |
| Enbridge, Inc., | | | |
| 3.50%, 6/10/24 | | 80,000 | 80,006 |
| 2.50%, 1/15/25 | | 100,000 | 96,983 |
|
| Fairfax Financial Holdings Ltd., 3.38%, 3/03/31 | | 25,000 | 22,208 |
| Garda World Security Corp., 6.00%, 6/01/29(b) | | 25,000 | 20,715 |
| GFL Environmental, Inc., 3.75%, 8/01/25(b) | | 25,000 | 23,688 |
| MEG Energy Corp., 5.88%, 2/01/29(b) | | 20,000 | 19,577 |
| Methanex Corp., 5.25%, 12/15/29 | | 75,000 | 71,250 |
| Rogers Communications, Inc., | | | |
| 3.20%, 3/15/27(b) | | 75,000 | 71,379 |
| 3.80%, 3/15/32(b) | | 70,000 | 64,459 |
| Royal Bank of Canada, | | | |
| 0.75%, 10/07/24 | | 70,000 | 65,687 |
| 1.20%, 4/27/26 | | 70,000 | 63,161 |
| 2.05%, 1/21/27 | | 100,000 | 92,337 |
|
| Superior Plus L.P./Superior General Partner, Inc., 4.50%, 3/15/29(b) | | 10,000 | 9,138 |
| Taseko Mines Ltd., 7.00%, 2/15/26(b) | | 50,000 | 49,625 |
| Tervita Corp., 11.00%, 12/01/25(b) | | 13,000 | 14,495 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Canada (Continued) |
| Toronto-Dominion Bank (The), | | | |
| 0.30%, 6/02/23 | | $ 50,000 | $ 48,761 |
| 3.25%, 3/11/24 | | 50,000 | 50,006 |
| 0.75%, 1/06/26 | | 160,000 | 143,858 |
| | | | 2,586,190 |
| Finland – 0.0%(c) |
| Nokia Oyj, 4.38%, 6/12/27 | | 50,000 | 48,500 |
| France – 0.1% |
| AXA S.A., 8.60%, 12/15/30 | | 195,000 | 245,444 |
| Germany – 0.1% |
| Deutsche Bank A.G., | | | |
| (SOFR + 1.22%), 2.31%, 11/16/27(h) | | 150,000 | 132,639 |
| (5Y USD Swap Rate + 2.55%), 4.88%, 12/01/32(h) | | 200,000 | 183,316 |
| | | | 315,955 |
| Ireland – 0.0%(c) |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 1.65%, 10/29/24 | | 150,000 | 139,832 |
| Italy – 0.0%(c) |
| Telecom Italia Capital S.A., | | | |
| 6.38%, 11/15/33 | | 50,000 | 43,688 |
| 6.00%, 9/30/34 | | 20,000 | 17,105 |
| | | | 60,793 |
| Japan – 0.5% |
| Honda Motor Co. Ltd., | | | |
| 2.27%, 3/10/25 | | 60,000 | 58,218 |
| 2.53%, 3/10/27 | | 70,000 | 66,528 |
| Mitsubishi UFJ Financial Group, Inc., | | | |
| (1Y US Treasury CMT + 0.45%), 0.96%, 10/11/25(h) | | 200,000 | 186,408 |
| (1Y US Treasury CMT + 0.83%), 2.34%, 1/19/28(h) | | 275,000 | 251,532 |
| 2.05%, 7/17/30 | | 200,000 | 166,060 |
| Mizuho Financial Group, Inc., | | | |
| (1.25% - SOFR), 1.24%, 7/10/24(h) | | 200,000 | 194,897 |
| (3M USD LIBOR + 1.00%), 3.92%, 9/11/24(h) | | 200,000 | 201,079 |
|
| Nomura Holdings, Inc., 1.85%, 7/16/25 | | 200,000 | 185,894 |
| | | Par (a) | Value |
| Japan (Continued) |
| Sumitomo Mitsui Financial Group, Inc., | | | |
| 2.45%, 9/27/24 | | $200,000 | $ 194,208 |
| 1.40%, 9/17/26 | | 200,000 | 178,067 |
|
| Toyota Motor Corp., 0.68%, 3/25/24 | | 195,000 | 186,534 |
| | | | 1,869,425 |
| Luxembourg – 0.0%(c) |
| ArcelorMittal S.A., 4.25%, 7/16/29 | | 50,000 | 48,455 |
| Mexico – 0.1% |
| America Movil S.A.B. de C.V., 2.88%, 5/07/30 | | 200,000 | 179,576 |
| Coca-Cola Femsa S.A.B. de C.V., 2.75%, 1/22/30 | | 180,000 | 161,827 |
| | | | 341,403 |
| Peru – 0.0%(c) |
| Southern Copper Corp., 3.88%, 4/23/25 | | 5,000 | 4,966 |
| Spain – 0.1% |
| Banco Santander S.A., | | | |
| (1Y US Treasury CMT + 0.45%), 0.70%, 6/30/24(h) | | 200,000 | 193,359 |
| 1.85%, 3/25/26 | | 200,000 | 181,771 |
| | | | 375,130 |
| Switzerland – 0.1% |
| Credit Suisse A.G., 0.52%, 8/09/23 | | 250,000 | 242,009 |
| Novartis Capital Corp., 2.20%, 8/14/30 | | 10,000 | 8,895 |
| | | | 250,904 |
| United Kingdom – 0.4% |
| BAT Capital Corp., | | | |
| 2.26%, 3/25/28 | | 48,000 | 40,988 |
| 4.91%, 4/02/30 | | 71,000 | 68,448 |
|
| BAT International Finance PLC, 4.45%, 3/16/28 | | 100,000 | 96,280 |
| HSBC Holdings PLC, | | | |
| (SOFR + 0.53%), 0.73%, 8/17/24(h) | | 200,000 | 192,487 |
| 3.00%, 3/10/26(h) | | 200,000 | 192,694 |
|
| Lloyds Banking Group PLC, (1Y US Treasury CMT + 0.55%), 0.70%, 5/11/24(h) | | 200,000 | 194,095 |
| Reynolds American, Inc., 4.45%, 6/12/25 | | 125,000 | 125,903 |
| Santander UK Group Holdings PLC, (SOFR + 0.79%), 1.09%, 3/15/25(h) | | 300,000 | 283,228 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| United Kingdom (Continued) |
|
| Unilever Capital Corp., 3.38%, 3/22/25 | | $ 100,000 | $ 100,272 |
| Vmed O2 UK Financing I PLC, 4.75%, 7/15/31(b) | | 200,000 | 171,500 |
| | | | 1,465,895 |
Total Foreign Issuer Bonds
(Cost $8,637,009) | 8,072,834 |
|
| Mortgage-Backed Securities – 21.9% |
| Commercial Mortgage-Backed Securities – 0.1% |
Multifamily Connecticut Avenue Securities Trust,
Series 2019-01, Class M10, (1M USD LIBOR + 3.25%, 3.25% Floor), 3.92%, 10/15/49(b)(i) | | 350,000 | 332,833 |
| Federal Home Loan Mortgage Corporation – 1.1% |
| Pool, | | | |
| 3.00%, 3/01/30 - 8/01/50 | | 688,791 | 665,937 |
| 2.50%, 4/01/32 - 11/01/50 | | 934,704 | 885,142 |
| 4.50%, 4/01/49 | | 48,564 | 50,117 |
| 2.00%, 10/01/50 - 1/01/52 | | 1,333,935 | 1,178,838 |
| 2.50%, 9/01/51(d) | | 1,480,658 | 1,352,891 |
| | | | 4,132,925 |
Federal Home Loan Mortgage Corporation Gold –
0.1% |
Pool,
3.00%, 3/01/46 - 12/01/46 | | 256,064 | 245,285 |
| Federal National Mortgage Association – 2.5% |
| Pool, | | | |
| 2.50%, 10/01/35 - 1/01/52 | | 4,176,907 | 3,835,128 |
| 3.50%, 8/01/45 - 1/01/49 | | 98,661 | 96,932 |
| 3.50%, 1/01/48(d) | | 1,199,157 | 1,173,488 |
| 4.00%, 9/01/48 - 5/01/50 | | 1,408,577 | 1,411,717 |
| 3.00%, 11/01/48 - 6/01/51 | | 816,917 | 773,247 |
| 4.50%, 1/01/49 - 2/01/50 | | 419,332 | 429,074 |
| 2.00%, 2/01/51 - 8/01/51 | | 1,772,797 | 1,567,894 |
| | | | 9,287,480 |
| Government National Mortgage Association – 2.5% |
Pool,
5/01/52(g) | | 9,844,000 | 9,258,329 |
| | | Par (a) | Value |
| Government National Mortgage Association II – 1.5% |
| Pool, | | | |
| 2.50%, 12/20/46 - 8/20/51 | | $ 1,258,864 | $ 1,169,483 |
| 3.50%, 1/20/48 - 8/20/48 | | 1,069,752 | 1,056,448 |
| 4.50%, 9/20/48 - 1/20/50 | | 145,396 | 148,772 |
| 3.00%, 4/20/49 - 7/20/50 | | 1,593,483 | 1,527,506 |
| 2.00%, 2/20/51 | | 978,032 | 891,059 |
| 10/20/51 (g) | | 992,170 | 902,191 |
| | | | 5,695,459 |
| Uniform Mortgage-Backed Securities – 6.4% |
| Pool, | | | |
| 5/01/37 - 6/01/52(g) | | 23,951,000 | 22,303,010 |
| 2.00%, 11/01/51 | | 48,841 | 43,152 |
| 2.50%, 11/01/51 - 1/01/52 | | 1,382,160 | 1,262,825 |
| | | | 23,608,987 |
| Whole Loan – 7.7% |
| FHLMC Structured Agency Credit Risk Debt Notes, | | | |
| Series 2017-DNA1, Class B1, (1M USD LIBOR + 4.95%, 4.95% Floor), 5.62%, 7/25/29(i) | | 500,000 | 534,216 |
| Series 2017-DNA3, Class B1, (1M USD LIBOR + 4.45%), 5.12%, 3/25/30(i) | | 300,000 | 312,000 |
| Series 2018-DNA1, Class B1, (1M USD LIBOR + 3.15%), 3.82%, 7/25/30(i) | | 690,000 | 672,758 |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2017-C01, Class 1B1, (1M USD LIBOR + 5.75%), 6.42%, 7/25/29(i) | | 245,000 | 270,832 |
| Series 2017-C02, Class 2B1, (1M USD LIBOR + 5.50%), 6.17%, 9/25/29(i) | | 473,000 | 512,954 |
| Series 2017-C03, Class 1B1, (1M USD LIBOR + 4.85%), 5.52%, 10/25/29(i) | | 430,000 | 452,562 |
| Series 2017-C04, Class 2M2, 3.52%, 11/25/29(i) | | 1,556,948 | 1,590,735 |
| Series 2017-C04, Class 2B1, (1M USD LIBOR + 5.05%), 5.72%, 11/25/29(i) | | 450,000 | 482,608 |
| Series 2017-C05, Class 1M2, (1M USD LIBOR + 2.20%, 2.20% Floor), 2.87%, 1/25/30(i) | | 943,654 | 950,740 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2017-C05, Class 1B1, (1M USD LIBOR + 3.60%, 3.60% Floor), 4.27%, 1/25/30(i) | | $ 667,125 | $ 667,124 |
| Series 2017-C07, Class 1M2, (1M USD LIBOR + 2.40%, 2.40% Floor), 3.07%, 5/25/30(i) | | 771,485 | 783,046 |
| Series 2017-C07, Class 1B1, (1M USD LIBOR + 4.00%, 4.00% Floor), 4.67%, 5/25/30(i) | | 250,000 | 254,907 |
| Series 2017-C07, Class 2B1, (1M USD LIBOR + 4.45%, 4.45% Floor), 5.12%, 5/25/30(i) | | 217,000 | 225,424 |
| Series 2018-C01, Class 1M2, (1M USD LIBOR + 2.25%, 2.25% Floor), 2.92%, 7/25/30(i) | | 898,926 | 907,349 |
| Series 2018-C01, Class 1B1, (1M USD LIBOR + 3.55%, 3.55% Floor), 4.22%, 7/25/30(i) | | 637,000 | 632,112 |
| Series 2018-C02, Class 2B1, (1M USD LIBOR + 4.00%, 4.00% Floor), 4.67%, 8/25/30(i) | | 425,000 | 434,030 |
| Series 2018-C03, Class 1B1, (1M USD LIBOR + 3.75%, 3.75% Floor), 4.42%, 10/25/30(i) | | 550,000 | 548,366 |
| Series 2018-C05, Class 1B1, (1M USD LIBOR + 4.25%, 4.25% Floor), 4.92%, 1/25/31(i) | | 340,000 | 345,084 |
| Series 2018-C06, Class 1M2, (1M USD LIBOR + 2.00%, 2.00% Floor), 2.67%, 3/25/31(i) | | 1,127,511 | 1,128,193 |
| Series 2018-C06, Class 2M2, (1M USD LIBOR + 2.10%, 2.10% Floor), 2.77%, 3/25/31(i) | | 331,787 | 332,517 |
| Series 2021-R02, Class 2M1, (30D Average SOFR + 0.90%), 1.19%, 11/25/41(b)(i) | | 846,236 | 836,135 |
|
Freddie Mac Structured Agency Credit Risk Debt Notes,
Series 2017-HQA2, Class B1, 5.42%, 12/25/29(i) | | 300,000 | 315,352 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Freddie Mac STACR Trust, | | | |
| Series 2018-DNA2, Class M2, 2.82%, 12/25/30(b)(i) | | $1,525,286 | $1,536,712 |
| Series 2018-HQA2, Class M2, (1M USD LIBOR + 2.30%), 2.97%, 10/25/48(b)(i) | | 1,300,000 | 1,304,138 |
| Series 2019-DNA1, Class M2, (1M USD LIBOR + 2.65%), 3.32%, 1/25/49(b)(i) | | 635,803 | 641,425 |
| Series 2019-HQA1, Class M2, (1M USD LIBOR + 2.35%), 3.02%, 2/25/49(b)(i) | | 542,940 | 546,608 |
| Series 2019-HQA2, Class M2, 2.72%, 4/25/49(b)(i) | | 978,858 | 982,541 |
| Series 2019-DNA4, Class M2, (1M USD LIBOR + 1.95%), 2.62%, 10/25/49(b)(i) | | 180,270 | 180,425 |
| Connecticut Avenue Securities Trust, | | | |
| Series 2018-R07, Class 1M2, (1M USD LIBOR + 2.40%), 3.07%, 4/25/31(b)(i) | | 251,759 | 251,759 |
| Series 2018-R07, Class 1M2C, (1M USD LIBOR + 2.40%), 3.07%, 4/25/31(b)(i) | | 290,687 | 290,687 |
| Series 2019-R01, Class 2M2, (1M USD LIBOR + 2.45%), 3.12%, 7/25/31(b)(i) | | 32,094 | 32,195 |
| Series 2019-R01, Class 2M2C, (1M USD LIBOR + 2.45%), 3.12%, 7/25/31(b)(i) | | 389,999 | 388,732 |
| Series 2019-R02, Class 1M2, (1M USD LIBOR + 2.30%, 2.30% Floor), 2.97%, 8/25/31(b)(i) | | 94,077 | 94,113 |
| Series 2019-R06, Class 2M2, (1M USD LIBOR + 2.10%), 2.77%, 9/25/39(b)(i) | | 587,537 | 587,537 |
| Series 2019-R07, Class 1M2, (1M USD LIBOR + 2.10%), 2.77%, 10/25/39(b)(i) | | 110,673 | 110,673 |
| Series 2020-R02, Class 2M2, (1M USD LIBOR + 2.00%), 2.67%, 1/25/40(b)(i) | | 1,246,692 | 1,245,415 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Connecticut Avenue Securities Trust, | | | |
| Series 2020-R01, Class 1M2, (1M USD LIBOR + 2.05%, 2.05% Floor), 2.72%, 1/25/40(b)(i) | | $1,458,930 | $1,459,374 |
| Series 2020-SBT1, Class 1M2, (1M USD LIBOR + 3.65%), 4.32%, 2/25/40(b)(i) | | 511,533 | 506,463 |
| Series 2021-R01, Class 1B1, (30D Average SOFR + 3.10%), 3.39%, 10/25/41(b)(i) | | 150,000 | 138,937 |
| Series 2021-R03, Class 1B1, (30D Average SOFR + 2.75%, 2.75% Floor), 3.04%, 12/25/41(b)(i) | | 275,000 | 246,125 |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2021-HQA1, Class M1, (30D Average SOFR + 0.70%), 0.99%, 8/25/33(b)(i) | | 109,827 | 109,413 |
| Series 2021-HQA1, Class M2, (30D Average SOFR + 2.25%), 2.54%, 8/25/33(b)(i) | | 150,000 | 147,193 |
| Series 2021-DNA3, Class M2, (30D Average SOFR + 2.10%), 2.39%, 10/25/33(b)(i) | | 30,000 | 29,211 |
| Series 2021-DNA7, Class B1, (30D Average SOFR + 3.65%), 3.94%, 11/25/41(b)(i) | | 260,000 | 242,612 |
| Series 2022-HQA1, Class M1A, 2.39%, 3/25/42(b)(i) | | 47,396 | 47,449 |
| Series 2022-HQA1, Class M1B, 3.79%, 3/25/42(b)(i) | | 350,000 | 357,435 |
| Series 2019-HQA4, Class M2, (1M USD LIBOR + 2.05%), 2.72%, 11/25/49(b)(i) | | 118,107 | 118,107 |
| Series 2020-DNA1, Class M2, (1M USD LIBOR + 1.70%), 2.37%, 1/25/50(b)(i) | | 550,382 | 548,295 |
| Series 2020-HQA1, Class M2, (1M USD LIBOR + 1.90%), 2.57%, 1/25/50(b)(i) | | 58,499 | 58,542 |
| Series 2020-DNA2, Class M2, (1M USD LIBOR + 1.85%, 1.85% Floor), 2.52%, 2/25/50(b)(i) | | 1,569,648 | 1,567,751 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2020-HQA2, Class M2, (1M USD LIBOR + 3.10%), 3.77%, 3/25/50(b)(i) | | $565,723 | $ 567,961 |
| Series 2020-DNA4, Class M2, (1M USD LIBOR + 3.75%), 4.42%, 8/25/50(b)(i) | | 140,946 | 141,505 |
| Series 2020-HQA4, Class M2, (1M USD LIBOR + 3.15%), 3.82%, 9/25/50(b)(i) | | 143,093 | 143,277 |
| Series 2020-DNA6, Class M1, (30D Average SOFR + 0.90%), 1.19%, 12/25/50(b)(i) | | 15,700 | 15,682 |
| Series 2021-DNA1, Class M1, (30D Average SOFR + 0.65%), 0.94%, 1/25/51(b)(i) | | 6,069 | 6,062 |
|
Freddie Mac STACR,
Series 2019-HQA3, Class M2, (1M USD LIBOR + 1.85%), 2.52%, 9/25/49(b)(i) | | 354,613 | 353,722 |
| | | | 28,187,120 |
Total Mortgage-Backed Securities
(Cost $83,095,656) | 80,748,418 |
| | | Number
of Shares | |
| Preferred Stocks – 2.7% |
| Chemicals – 0.2% |
| Lyondellbasell Advanced Polymers, Inc., 6.00% | | 669 | 588,720 |
| Computers – 0.2% |
| NCR Corp., 5.50%(j) | | 556 | 766,446 |
| Diversified Financial Services – 0.3% |
| AMG Capital Trust II, 5.15%(d) | | 10,807 | 597,627 |
| Cowen, Inc., 5.63%(d) | | 548 | 594,004 |
| | | | 1,191,631 |
| Electric – 0.1% |
| Algonquin Power & Utilities Corp., 7.75%Canada) | | 11,531 | 543,341 |
| Engineering & Construction – 0.3% |
| Fluor Corp., 6.50%(b)(k) | | 964 | 1,214,881 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Metal Fabricate/Hardware – 0.1% |
| RBC Bearings, Inc., 5.00% | | 3,169 | $ 286,763 |
| Real Estate Investment Trusts – 1.3% |
| AGNC Investment Corp., 6.13%(i) | | 21,599 | 499,369 |
| Arbor Realty Trust, Inc., 6.25%(i) | | 34,424 | 834,438 |
| Chimera Investment Corp., 8.00%(i) | | 17,820 | 435,521 |
| Granite Point Mortgage Trust, Inc., 7.00%(i) | | 23,198 | 528,682 |
| MFA Financial, Inc., 6.50%(i) | | 35,021 | 796,377 |
| New Residential Investment Corp., 6.38%(i) | | 34,070 | 729,439 |
| New York Mortgage Trust, Inc., 6.88%(i) | | 18,982 | 449,494 |
| Ready Capital Corp., 7.00% | | 19,284 | 499,841 |
| | | | 4,773,161 |
| Savings & Loans – 0.2% |
| New York Community Capital Trust V, 6.00% | | 15,900 | 779,076 |
Total Preferred Stocks
(Cost $9,817,466) | 10,144,019 |
|
| Rights – 0.0%(c) |
| Pharmaceuticals – 0.0%(c) |
| Zogenix Inc. Cvr(l)* | | 21,009 | 14,379 |
Total Rights
(Cost $14,286) | 14,379 |
|
| Warrants – 0.0%(c) |
| Healthcare - Services – 0.0%(c) |
| UpHealth, Inc., Strike Price $11.50, Expires 7/01/24* | | 254 | 23 |
Total Warrants
(Cost $—) | 23 |
|
| Investment Companies – 0.1% |
| ProShares Short 20+ Year Treasury* | | 29,259 | 570,843 |
Total Investment Companies
(Cost $514,999) | 570,843 |
| | | Number
of Shares/Par | Value |
| Short-Term Investments – 14.9% |
| Corporate Bonds – 0.0%(c) |
| Sabine Pass Liquefaction LLC, 5.63%, 4/15/23 | | $ 100,000 | $ 101,570 |
| Media – 0.1% |
| Charter Communications Operating LLC/Charter Communications Operating Capital, 4.46%, 7/23/22 | | 200,000 | 200,343 |
| Money Market Fund – 6.3% |
| Northern Institutional Funds - Treasury Portfolio (Premier), 0.18%(m) | | 23,046,998 | 23,046,998 |
| Electronics – 0.4% |
| OSI Systems, Inc., 1.25%, 9/01/22(d) | | 751,000 | 746,794 |
| II-VI, Inc., 0.25%, 9/01/22(d)(e) | | 560,000 | 740,600 |
| | | | 1,487,394 |
| Real Estate Investment Trusts – 0.5% |
| iStar, Inc., 3.13%, 9/15/22(d) | | 458,000 | 563,111 |
| Granite Point Mortgage Trust, Inc., 5.63%, 12/01/22(b) | | 1,072,000 | 1,054,580 |
| | | | 1,617,691 |
| Biotechnology – 0.3% |
| Innoviva, Inc., 2.13%, 1/15/23(d) | | 1,158,000 | 1,195,635 |
| Aerospace/Defense – 0.0%(c) |
| Boeing (The) Co., 1.17%, 2/04/23 | | 30,000 | 29,640 |
| Electric – 0.0%(c) |
| NextEra Energy Capital Holdings, Inc., 0.65%, 3/01/23 | | 105,000 | 103,310 |
| Healthcare - Services – 0.0%(c) |
| Anthem, Inc., 0.45%, 3/15/23 | | 130,000 | 127,687 |
| U.S. Treasury Bills – 7.3% |
| U.S. Treasury Bill, 0.48%(n) | | 6,000,000 | 5,994,885 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares/Par | Value |
| U.S. Treasury Bills (Continued) |
| U.S. Treasury Bill, 0.20%(n) | | $ 3,000,000 | $ 2,999,977 |
| U.S. Treasury Bill, 0.84%, 7/28/22(n) | | 18,000,000 | 17,964,112 |
| | | | 26,958,974 |
Total Short-Term Investments
(Cost $54,580,779) | 54,869,242 |
Number of
Contracts | Notional
Amount | |
| Purchased Options – 0.0%(c) |
| Call Options - Exchange Traded – 0.0%(c) |
| Healthcare Trust of America, Inc., Strike Price $32.00, Expires 5/20/22 | 86 | 261,956 | 3,870 |
| MagnaChip Semiconductor Corp., Strike Price $20.00, Expires 5/20/22 | 232 | 424,328 | 21,460 |
| Sierra Oncology, Strike Price $55.00, Expires 5/20/22 | 112 | 610,512 | 2,240 |
| Spirit Airlines, Inc., Strike Price $30.00, Expires 5/20/22 | 138 | 325,818 | 2,070 |
| | | | 29,640 |
| Put Options - Exchange Traded – 0.0%(c) |
| Vonage Holdings Corp., Strike Price $19.00, Expires 6/17/22 | 8 | 15,968 | 620 |
Total Purchased Options
(Premiums Received $41,783) | 30,260 |
Total Long Positions – 105.3%
(Cost $399,366,132) | 388,162,261 |
| | | Number
of Shares | Value |
| Short Positions – (7.3)%(o) |
| Common Stocks – (7.3)% |
| Aerospace/Defense – (0.0)%(c) |
| Kaman Corp. | | (2,830) | (110,398) |
| Airlines – (0.1)% |
| Southwest Airlines Co. | | (6,899) | (322,321) |
| Spirit Airlines, Inc. | | (4,377) | (103,341) |
| | | | (425,662) |
| Biotechnology – (0.4)% |
| Exact Sciences Corp.(e) | | (5,097) | (280,590) |
| Halozyme Therapeutics, Inc. | | (7,944) | (316,966) |
| | | Number
of Shares | Value |
| Biotechnology (Continued) |
| Innoviva, Inc. | | (24,751) | $ (422,252) |
| Insmed, Inc.(e) | | (26,275) | (577,262) |
| Ligand Pharmaceuticals, Inc. | | (105) | (9,750) |
| | | | (1,606,820) |
| Building Materials – (0.1)% |
| Patrick Industries, Inc. | | (4,205) | (261,761) |
| Commercial Services – (0.5)% |
| Chegg, Inc. | | (2,939) | (72,711) |
| GXO Logistics, Inc. | | (1,933) | (114,414) |
| Marathon Digital Holdings, Inc. | | (6,468) | (100,901) |
| Rentokil Initial PLC (United Kingdom) | | (101,617) | (697,933) |
| Sabre Corp. | | (57,881) | (606,014) |
| Stride, Inc. | | (10,030) | (394,179) |
| | | | (1,986,152) |
| Computers – (0.2)% |
| Lumentum Holdings, Inc.(e) | | (1,823) | (148,046) |
| Mitek Systems, Inc. | | (13,702) | (153,051) |
| NCR Corp. | | (12,043) | (421,866) |
| | | | (722,963) |
| Cosmetics/Personal Care – (0.1)% |
| Beauty Health (The) Co. | | (13,345) | (174,820) |
| Diversified Financial Services – (0.7)% |
| Affiliated Managers Group, Inc. | | (557) | (69,942) |
| Coinbase Global, Inc., Class A | | (1,091) | (122,967) |
| Cowen, Inc., Class A | | (14,916) | (340,831) |
| Encore Capital Group, Inc. | | (15,554) | (899,177) |
| I3 Verticals, Inc., Class A | | (5,922) | (162,559) |
| LendingTree, Inc. | | (364) | (28,909) |
| PRA Group, Inc. | | (8,007) | (336,534) |
| SoFi Technologies, Inc. | | (13,030) | (79,744) |
| Upstart Holdings, Inc. | | (718) | (53,864) |
| WisdomTree Investments, Inc. | | (71,522) | (416,973) |
| | | | (2,511,500) |
| Electric – (0.3)% |
| Algonquin Power & Utilities Corp. (Canada) | | (23,721) | (342,768) |
| NRG Energy, Inc. | | (17,723) | (636,256) |
| | | | (979,024) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Electronics – (0.3)% |
| II-VI, Inc.(e) | | (17,974) | $ (1,100,189) |
| OSI Systems, Inc. | | (334) | (26,419) |
| | | | (1,126,608) |
| Energy - Alternate Sources – (0.2)% |
| Array Technologies, Inc. | | (27,040) | (176,571) |
| Enphase Energy, Inc.(e) | | (2,128) | (343,459) |
| Sunnova Energy International, Inc.(e) | | (11,146) | (192,492) |
| | | | (712,522) |
| Engineering & Construction – (0.2)% |
| Fluor Corp. | | (32,022) | (792,544) |
| Food – (0.1)% |
| Chefs' Warehouse (The), Inc. | | (9,919) | (363,035) |
| Healthcare - Products – (0.0)%(c) |
| Haemonetics Corp. | | (1,353) | (68,557) |
| Home Builders – (0.1)% |
| Winnebago Industries, Inc. | | (6,706) | (356,625) |
| Internet – (0.3)% |
| Etsy, Inc. | | (724) | (67,470) |
| Groupon, Inc.(e) | | (1,531) | (29,870) |
| Magnite, Inc. | | (3,708) | (35,782) |
| NortonLifeLock, Inc. | | (2,105) | (52,709) |
| Perficient, Inc. | | (1,675) | (166,512) |
| Q2 Holdings, Inc. | | (2,672) | (138,223) |
| Snap, Inc., Class A | | (4,712) | (134,103) |
| Spotify Technology S.A. | | (360) | (36,594) |
| TripAdvisor, Inc. | | (6,616) | (169,833) |
| Upwork, Inc. | | (7,562) | (158,575) |
| Wayfair, Inc., Class A | | (449) | (34,546) |
| Zillow Group, Inc., Class C | | (5,697) | (226,854) |
| | | | (1,251,071) |
| Leisure Time – (0.3)% |
| Callaway Golf Co.(e) | | (16,330) | (358,280) |
| Norwegian Cruise Line Holdings Ltd.(e) | | (10,044) | (201,181) |
| Royal Caribbean Cruises Ltd. | | (8,556) | (665,058) |
| | | | (1,224,519) |
| Lodging – (0.2)% |
| Marcus (The) Corp.(e) | | (34,514) | (542,905) |
| Machinery - Construction & Mining – (0.1)% |
| Bloom Energy Corp., Class A | | (17,179) | (318,842) |
| | | Number
of Shares | Value |
| Media – (0.1)% |
| Cable One, Inc. | | (215) | $ (250,734) |
| DISH Network Corp., Class A | | (6,619) | (188,708) |
| | | | (439,442) |
| Metal Fabricate/Hardware – (0.1)% |
| RBC Bearings, Inc. | | (1,170) | (196,970) |
| Oil & Gas – (0.4)% |
| Centennial Resource Development, Inc., Class A | | (110,854) | (858,010) |
| Pioneer Natural Resources Co. | | (2,958) | (687,646) |
| | | | (1,545,656) |
| Oil & Gas Services – (0.0)%(c) |
| Helix Energy Solutions Group, Inc. | | (35,833) | (147,274) |
| Pharmaceuticals – (0.1)% |
| Coherus Biosciences, Inc. | | (20,792) | (187,959) |
| Jazz Pharmaceuticals PLC | | (1,126) | (180,408) |
| | | | (368,367) |
| Real Estate – (0.1)% |
| Realogy Holdings Corp. | | (25,787) | (282,625) |
| Redfin Corp.(e) | | (1,304) | (14,540) |
| | | | (297,165) |
| Real Estate Investment Trusts – (0.6)% |
| Healthcare Realty Trust, Inc. | | (8,161) | (221,000) |
| iStar, Inc. | | (29,947) | (504,307) |
| Pebblebrook Hotel Trust | | (26,450) | (645,909) |
| Summit Hotel Properties, Inc. | | (63,264) | (624,416) |
| | | | (1,995,632) |
| Retail – (0.0)%(c) |
| Cheesecake Factory (The), Inc. | | (2,467) | (91,057) |
| Semiconductors – (0.3)% |
| Entegris, Inc. | | (5,225) | (582,013) |
| Impinj, Inc. | | (2,189) | (107,830) |
| MACOM Technology Solutions Holdings, Inc. | | (2,794) | (142,354) |
| Wolfspeed, Inc. | | (1,098) | (100,698) |
| | | | (932,895) |
| Software – (1.0)% |
| 8x8, Inc. | | (4,245) | (38,927) |
| Avaya Holdings Corp.(e) | | (650) | (6,011) |
| Bandwidth, Inc., Class A | | (1,095) | (24,221) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Software (Continued) |
| Bentley Systems, Inc., Class B | | (4,385) | $ (185,880) |
| BigCommerce Holdings, Inc., Series 1 | | (3,306) | (59,078) |
| Blackline, Inc. | | (1,612) | (108,085) |
| Ceridian HCM Holding, Inc. | | (4,131) | (231,873) |
| DigitalOcean Holdings, Inc. | | (1,884) | (74,286) |
| Envestnet, Inc. | | (3,439) | (273,882) |
| Everbridge, Inc.(e) | | (1,190) | (51,289) |
| Fastly, Inc. Class A | | (752) | (11,957) |
| LivePerson, Inc. | | (4,881) | (110,408) |
| MicroStrategy, Inc., Class A | | (566) | (200,460) |
| New Relic, Inc.(e) | | (1,524) | (96,424) |
| Porch Group, Inc. | | (5,886) | (21,778) |
| Progress Software Corp. | | (9,842) | (472,219) |
| RingCentral, Inc., Class A | | (355) | (30,122) |
| Splunk, Inc. | | (912) | (111,282) |
| Take-Two Interactive Software, Inc. | | (2,099) | (250,852) |
| Unity Software, Inc. | | (1,058) | (70,262) |
| Verint Systems, Inc. | | (8,410) | (458,850) |
| Workiva, Inc.(e) | | (3,744) | (361,333) |
| Ziff Davis, Inc. | | (4,509) | (398,415) |
| | | | (3,647,894) |
| Telecommunications – (0.1)% |
| Infinera Corp. | | (52,886) | (406,693) |
| Transportation – (0.2)% |
| Air Transport Services Group, Inc. | | (17,080) | (534,604) |
| | | Number
of Shares | Value |
| Transportation (Continued) |
| CryoPort, Inc. | | (3,959) | $ (89,315) |
| SFL Corp. Ltd. (Norway) | | (6,943) | (68,875) |
| | | | (692,794) |
| Trucking & Leasing – (0.1)% |
| Greenbrier (The) Cos., Inc. | | (9,742) | (416,081) |
Total Common Stocks
(Proceeds $29,558,272) | (26,714,248) |
| | | Par | |
| Mortgage-Backed Securities – (0.0)%(c) |
| Uniform Mortgage-Backed Securities – (0.0)%(c) |
Pool,
5/01/52(g) | | $(143,000) | (134,834) |
Total Mortgage-Backed Securities
(Proceeds $135,350) | (134,834) |
Total Short Positions – (7.3)%
(Proceeds $29,693,622) | (26,849,082) |
Total Written Options – (0.0)%(c)
(Premiums Received $125,539) | (33,592) |
| Other Assets less Liabilities – 2.0%(p) | 7,201,144 |
| NET ASSETS – 100.0% | $368,480,731 |
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Par value is in USD unless otherwise indicated. |
| (b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Morningstar Funds Trust. |
| (c) | Amount rounds to less than 0.05%. |
| (d) | All or a portion of the security was held as collateral for open futures, options, securities sold short and/or swap agreements. |
| (e) | Security represents underlying investment on open options contracts. |
| (f) | Zero coupon bond. |
| (g) | When-Issued Security. Coupon rate was not yet in effect at April 30, 2022. |
| (h) | Variable rate security. Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate as of April 30, 2022 is disclosed. |
| (i) | Variable rate security. Rate as of April 30, 2022 is disclosed. |
| (j) | Distributions from this security are a made via payments in-kind (PIK) unless otherwise noted in the description. |
| (k) | Restricted security that has been deemed illiquid. At April 30, 2022, the value of these restricted illiquid securities amounted to $1,214,881 or 0.33% of net assets. Additional information on these restricted illiquid securities is as follows: |
| | Security | Acquisition Date | Acquisition Cost |
| | Fluor Corp., 6.50% | 5/14/21-5/21/21 | $ 981,446 |
| |
|
| (l) | Investment is valued using significant unobservable inputs (Level 3). |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| (m) | 7-day current yield as of April 30, 2022 is disclosed. |
| (n) | Discount rate at the time of purchase. |
| (o) | Securities sold short are not owned by the Fund and cannot produce income. |
| (p) | Includes appreciation/(depreciation) on forward foreign currency exchange, futures and swap contracts. |
| * | Non-Income Producing Security |
| Abbreviations: | |
| 1M | 1 Month |
| 1Y | 1 Year |
| 3M | 3 Month |
| 5Y | 5 Year |
| BDC | Business Development Company |
| CMT | Constant Maturity |
| CVR | Contingent Value Rights |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| Freddie Mac | Federal Home Loan Mortgage Corporation |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| MSCI | Morgan Stanley Capital International |
| PLC | Public Limited Company |
| REMIC | Real Estate Mortgage Investment Conduit |
| S&P | Standards & Poor's |
| SOFR | United States Secured Overnight Financing Rate |
| STACR | Structured Agency Credit Risk |
| USD | United States Dollar |
Futures Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| Euro-Bund | 56 | 6/08/2022 | EUR | 9,073,667 | $ (608,122) |
| Long Gilt | 15 | 6/28/2022 | GBP | 2,233,986 | (6,125) |
| Total Long Contracts | | | | | $ (614,247) |
| Short Contracts | | | | | |
| Euro-BTP Italian Government Bond | (5) | 6/08/2022 | EUR | 687,511 | $ 78,126 |
| Euro-OAT | (22) | 6/08/2022 | EUR | 3,384,786 | 159,752 |
| 10-Year Australian Treasury Bond | (24) | 6/15/2022 | AUD | 2,105,063 | (2,902) |
| 10-Year U.S. Treasury Note | (134) | 6/21/2022 | USD | 15,966,938 | 975,656 |
| U.S. Treasury Long Bond | (1) | 6/21/2022 | USD | 140,687 | 3,568 |
| Ultra 10-Year U.S. Treasury Note | (4) | 6/21/2022 | USD | 516,000 | 31,304 |
| Ultra U.S. Treasury Bond | (10) | 6/21/2022 | USD | 1,604,375 | 87,788 |
| 10-Year Canadian Government Bond | (28) | 6/30/2022 | CAD | 2,754,120 | (9,937) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Futures Contracts outstanding at April 30, 2022:
Exchange Traded (continued) |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| 2-Year U.S. Treasury Note | (16) | 6/30/2022 | USD | 3,373,000 | $ 61,250 |
| 5-Year U.S. Treasury Note | (151) | 6/30/2022 | USD | 17,013,453 | 770,706 |
| Total Short Contracts | | | | | $2,155,311 |
| | | | | | $1,541,064 |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 06/15/22 | U.S. Dollars | 6,011,852 | British Pounds | 4,584,800 | Morgan Stanley | $ 246,269 |
| 06/15/22 | U.S. Dollars | 4,106,183 | Euro | 3,734,550 | Morgan Stanley | 157,556 |
| 06/15/22 | U.S. Dollars | 2,425,931 | Australian Dollars | 3,285,300 | Morgan Stanley | 102,698 |
| 06/15/22 | U.S. Dollars | 1,739,943 | Swedish Krona | 16,693,200 | Morgan Stanley | 37,623 |
| 06/15/22 | U.S. Dollars | 671,402 | Norwegian Kroner | 6,001,400 | Morgan Stanley | 31,453 |
| 06/15/22 | U.S. Dollars | 2,464,406 | Canadian Dollars | 3,134,440 | Morgan Stanley | 24,782 |
| 06/15/22 | U.S. Dollars | 275,614 | Euro | 250,000 | Deutsche Bank | 11,284 |
| 06/15/22 | U.S. Dollars | 148,867 | Australian Dollars | 200,000 | Deutsche Bank | 7,435 |
| 06/15/22 | U.S. Dollars | 150,857 | Swedish Krona | 1,420,000 | Deutsche Bank | 6,050 |
| 06/15/22 | U.S. Dollars | 97,598 | Australian Dollars | 130,000 | JPMorgan Chase | 5,668 |
| 06/15/22 | U.S. Dollars | 99,200 | New Zealand Dollars | 145,000 | Morgan Stanley | 5,601 |
| 06/15/22 | U.S. Dollars | 108,387 | Swedish Krona | 1,030,000 | Bank of America | 3,351 |
| 06/15/22 | U.S. Dollars | 78,110 | British Pounds | 60,000 | Bank of America | 2,657 |
| 06/15/22 | U.S. Dollars | 57,358 | Swedish Krona | 540,000 | JPMorgan Chase | 2,291 |
| 06/15/22 | U.S. Dollars | 29,996 | Australian Dollars | 40,000 | Bank of America | 1,710 |
| 06/15/22 | U.S. Dollars | 11,085 | Euro | 10,000 | Bank of America | 512 |
| 06/15/22 | U.S. Dollars | 11,536 | Swiss Francs | 10,700 | Morgan Stanley | 509 |
| 06/15/22 | U.S. Dollars | 95,884 | Hong Kong Dollars | 750,000 | Morgan Stanley | 206 |
| 06/15/22 | U.S. Dollars | 14,659 | Singapore Dollars | 20,000 | JPMorgan Chase | 197 |
| 06/15/22 | U.S. Dollars | 94,558 | Hong Kong Dollars | 740,000 | Barclays | 155 |
| 06/15/22 | U.S. Dollars | 51,128 | Hong Kong Dollars | 400,000 | JPMorgan Chase | 100 |
| 06/15/22 | U.S. Dollars | 7,325 | Singapore Dollars | 10,000 | Citibank | 94 |
| 06/15/22 | Swedish Krona | 276,500 | U.S. Dollars | 28,116 | Morgan Stanley | 81 |
| Total Unrealized Appreciation | $ 648,282 |
| | | | | | | |
| 06/15/22 | U.S. Dollars | 8,927 | Hong Kong Dollars | 70,000 | Barclays | $ (3) |
| 06/15/22 | Swiss Francs | 3,100 | U.S. Dollars | 3,331 | Morgan Stanley | (136) |
| 06/15/22 | Hong Kong Dollars | 1,574,145 | U.S. Dollars | 201,037 | Morgan Stanley | (222) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2022: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 06/15/22 | U.S. Dollars | 53,141 | British Pounds | 42,700 | Morgan Stanley | $ (556) |
| 06/15/22 | New Zealand Dollars | 23,800 | U.S. Dollars | 16,210 | Morgan Stanley | (847) |
| 06/15/22 | U.S. Dollars | 381,356 | Euro | 362,620 | Morgan Stanley | (2,051) |
| 06/15/22 | Canadian Dollars | 170,100 | U.S. Dollars | 134,720 | Morgan Stanley | (2,326) |
| 06/15/22 | Australian Dollars | 238,979 | U.S. Dollars | 172,219 | Goldman Sachs | (3,223) |
| 06/15/22 | Euro | 333,039 | U.S. Dollars | 366,728 | Goldman Sachs | (14,598) |
| 06/15/22 | Australian Dollars | 375,297 | U.S. Dollars | 282,030 | Bank of America | (16,634) |
| 06/15/22 | Swedish Krona | 5,515,038 | U.S. Dollars | 586,762 | Morgan Stanley | (24,356) |
| 06/15/22 | Norwegian Kroner | 6,001,400 | U.S. Dollars | 688,674 | Morgan Stanley | (48,726) |
| 06/15/22 | Euro | 1,513,548 | U.S. Dollars | 1,653,813 | Morgan Stanley | (53,503) |
| 06/15/22 | Australian Dollars | 2,157,100 | U.S. Dollars | 1,594,024 | Morgan Stanley | (68,609) |
| 06/15/22 | British Pounds | 1,842,000 | U.S. Dollars | 2,412,371 | Morgan Stanley | (95,977) |
| Total Unrealized Depreciation | $(331,767) |
| Net Unrealized Appreciation | $ 316,515 |
Written Call Option Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| Bloom Energy Corp. | 49 | USD | 90,944 | 24.00 | 5/20/2022 | $ (1,715) |
| Coinbase Global, Inc. | 6 | USD | 67,626 | 190.00 | 5/20/2022 | (300) |
| Exact Sciences Corp. | 27 | USD | 148,635 | 65.00 | 7/15/2022 | (10,395) |
| Ii-Vi, Inc. | 24 | USD | 146,904 | 70.00 | 7/15/2022 | (6,000) |
| Infinera Corp. | 241 | USD | 185,329 | 9.00 | 5/20/2022 | (3,013) |
| Insmed, Inc. | 88 | USD | 193,336 | 23.00 | 5/20/2022 | (9,020) |
| SoFi Technologies, Inc. | 86 | USD | 52,632 | 10.00 | 5/20/2022 | (344) |
| Workiva, Inc. | 11 | USD | 106,161 | 115.00 | 5/20/2022 | (2,805) |
| Total Written Call Options Contracts (Premiums Received $125,539) | $(33,592) |
Long Contracts for Difference at April 30, 2022:
Over the Counter |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Abbott Laboratories | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,007 | Monthly | $ 456,616 | $ (9,358) |
| Advanced Micro Devices, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,700 | Monthly | 316,400 | (21,512) |
| Alcoa Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,429 | Monthly | 368,013 | (54,970) |
| Altice USA, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 57,665 | Monthly | 535,358 | (106,305) |
| Altria Group, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 4,360 | Monthly | 246,154 | 10,234 |
| Altria Group, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 6,864 | Monthly | 386,886 | 12,112 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| American Electric Power Co., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 5,959 | Monthly | $ 590,516 | $ (15,276) |
| American Express Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 2,651 | Monthly | 463,963 | (20,266) |
| American International Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 8,162 | Monthly | 477,538 | (15,300) |
| American International Group, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 10,106 | Monthly | 591,217 | (54,557) |
| American Water Works Company, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 451 | Monthly | 69,480 | (3,780) |
| Apache Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,548 | Monthly | 309,870 | 2,591 |
| Apache Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,363 | Monthly | 56,229 | (2,407) |
| Apache Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 14,908 | Monthly | 611,882 | (40,505) |
| Applied Materials, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 4,321 | Monthly | 476,803 | (9,624) |
| Arch Capital Group Ltd. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 570 | Monthly | 26,032 | (1,309) |
| Archer-Daniels-Midland Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,919 | Monthly | 171,839 | (8,329) |
| AT&T, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 25,670 | Monthly | 491,649 | (9,430) |
| AT&T, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 23,977 | Monthly | 458,798 | (7,795) |
| AutoNation, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 4,400 | Monthly | 509,900 | 55,305 |
| AutoZone, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 152 | Monthly | 297,217 | (31,144) |
| AutoZone, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 37 | Monthly | 72,333 | (8,717) |
| AutoZone, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 99 | Monthly | 193,563 | (21,727) |
| Avantor, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 7,681 | Monthly | 244,838 | 5,875 |
| Avery Dennison Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 461 | Monthly | 83,244 | 6,064 |
| Axalta Coating Systems, Ltd. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 862 | Monthly | 21,868 | 344 |
| Barrick Gold Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 25,632 | Monthly | 571,715 | (73,472) |
| Baxter International, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,972 | Monthly | 566,466 | (15,963) |
| Biogen, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,303 | Monthly | 477,670 | (11,810) |
| Black Knight, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,139 | Monthly | 469,655 | 51 |
| Booz Allen Hamilton Holding Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 822 | Monthly | 67,093 | (5,426) |
| BorgWarner, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,765 | Monthly | 65,002 | (1,821) |
| BorgWarner, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,702 | Monthly | 173,151 | (2,186) |
| Boyd Gaming Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 9,306 | Monthly | 563,732 | (20,685) |
| Boyd Gaming Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 7,423 | Monthly | 450,449 | (9,554) |
| Bristol-Myers Squibb Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,915 | Monthly | 145,527 | 466 |
| Bristol-Myers Squibb Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,663 | Monthly | 429,209 | (11,203) |
| Brixmor Property Group REIT, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,033 | Monthly | 129,407 | 1,972 |
| Brixmor Property Group REIT, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,171 | Monthly | 29,716 | (625) |
| Cable One, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 194 | Monthly | 226,327 | (42,065) |
| Caesars Entertainment, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,975 | Monthly | 130,869 | (4,866) |
| Callon Petroleum Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 4,454 | Monthly | 228,347 | (16,885) |
| Camden Property Trust REIT | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,862 | Monthly | 292,089 | (11,566) |
| Campbell Soup | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 7,340 | Monthly | 347,869 | 9,912 |
| Cardinal Health, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 4,523 | Monthly | 264,715 | (15,259) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Cardinal Health, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 5,294 | Monthly | $ 307,273 | $ (26,144) |
| Cboe Global Markets, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,895 | Monthly | 214,088 | (2,151) |
| CBRE Group, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,077 | Monthly | 172,467 | (3,185) |
| Celanese Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,340 | Monthly | 493,030 | 16,379 |
| Charles River Laboratories International, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,496 | Monthly | 361,234 | (56,281) |
| Charter Communications, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 347 | Monthly | 148,675 | (30,196) |
| Chevron Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,007 | Monthly | 471,043 | (47,754) |
| Chubb Limited | U.S. Fed Funds | 2/8/2023 | JPMorgan Chase | 1,568 | Monthly | 323,714 | (4,960) |
| Church & Dwight Co., Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 4,230 | Monthly | 412,661 | (22,548) |
| Cisco Systems, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 11,243 | Monthly | 550,837 | (23,792) |
| Cleveland Cliffs, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 28,330 | Monthly | 722,048 | (122,817) |
| Clorox (The) Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 822 | Monthly | 119,087 | 1,114 |
| CMS Energy Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,540 | Monthly | 243,152 | (10,447) |
| ConocoPhillips | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 6,356 | Monthly | 607,100 | (1,283) |
| Crocs, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 7,103 | Monthly | 471,745 | (36,530) |
| Crown Holdings, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 481 | Monthly | 52,922 | (4,222) |
| CSX Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 8,611 | Monthly | 295,660 | (3,326) |
| CSX Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 16,913 | Monthly | 580,715 | (7,012) |
| CVS Health Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 4,725 | Monthly | 457,051 | (46,682) |
| CVS Health Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,411 | Monthly | 136,396 | (9,529) |
| D.R. Horton, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 405 | Monthly | 28,180 | (718) |
| D.R. Horton, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,032 | Monthly | 71,817 | (2,735) |
| Dell Technologies, Inc., Class C | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,590 | Monthly | 359,483 | 3,740 |
| Dell Technologies, Inc., Class C | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,430 | Monthly | 162,588 | 41 |
| Devon Energy Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,935 | Monthly | 228,898 | 425 |
| Discover Financial Services | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,343 | Monthly | 151,013 | (5,352) |
| Duke Reality Corp | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,314 | Monthly | 126,686 | (11,877) |
| DuPont de Nemours, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,519 | Monthly | 231,998 | (4,496) |
| DXC Technology | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 8,201 | Monthly | 235,359 | (6,305) |
| DXC Technology | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 27,735 | Monthly | 795,886 | (66,045) |
| Eastman Chemical Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,056 | Monthly | 211,063 | (11,835) |
| Ebay, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,336 | Monthly | 380,865 | (9,190) |
| Elastic N.V. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,135 | Monthly | 238,688 | (11,424) |
| Eli Lilly | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 254 | Monthly | 74,199 | 2,522 |
| Energy, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,042 | Monthly | 70,672 | (3,425) |
| Equitable Holdings, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 7,801 | Monthly | 224,846 | (20,574) |
| Equity Residential | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,403 | Monthly | 114,339 | (13,544) |
| Equity Residential | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 414 | Monthly | 33,732 | (4,261) |
| Equity Residential | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,766 | Monthly | 306,884 | (30,625) |
| Estee Lauder (The) Cos., Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 154 | Monthly | 40,660 | (1,129) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Exelon Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,284 | Monthly | $ 247,121 | $ (17,766) |
| Exelon Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 7,218 | Monthly | 337,611 | (17,731) |
| Expedia Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,367 | Monthly | 238,864 | (9,451) |
| Exxon Mobil Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 5,671 | Monthly | 483,432 | 660 |
| Fair Isaac Corporation | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,221 | Monthly | 456,053 | (185) |
| Federal Realty Investment Trust | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,991 | Monthly | 470,994 | (11,837) |
| FedEx Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 426 | Monthly | 84,661 | (2,649) |
| Flex Ltd. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 8,014 | Monthly | 132,133 | (3,464) |
| Fortive Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 7,313 | Monthly | 420,496 | (1,640) |
| Freeport-McMoRan, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 13,973 | Monthly | 568,341 | (124,105) |
| Gartner, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,652 | Monthly | 479,923 | (14,091) |
| General Electric Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 7,449 | Monthly | 555,548 | (106,435) |
| General Mills, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 978 | Monthly | 69,664 | 382 |
| General Motors Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,493 | Monthly | 132,593 | (2,311) |
| Gilead Sciences, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,914 | Monthly | 469,595 | (23,051) |
| Halliburton Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 9,280 | Monthly | 330,495 | (48,671) |
| Hanesbrands, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 11,765 | Monthly | 155,997 | (8,360) |
| Hartford Financial Services Group (The), Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,460 | Monthly | 381,723 | (23,027) |
| Hartford Financial Services Group (The), Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,991 | Monthly | 209,131 | (15,344) |
| HCA Healthcare, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 409 | Monthly | 87,749 | 508 |
| Healthpeak Properties, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,039 | Monthly | 66,897 | (3,367) |
| Hewlett Packard Enterprise Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,775 | Monthly | 58,165 | (1,140) |
| Hologic, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 6,403 | Monthly | 460,832 | (51,344) |
| Home Depot (The), Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,933 | Monthly | 580,533 | (20,843) |
| Home Depot (The), Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,555 | Monthly | 467,060 | 234 |
| Honeywell International, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 783 | Monthly | 151,506 | 2,243 |
| HP, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 15,512 | Monthly | 568,180 | (2,507) |
| Huntsman Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 571 | Monthly | 19,339 | (752) |
| Illinois Tool Works, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,379 | Monthly | 468,863 | 234 |
| Intercontinental Exchange, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 379 | Monthly | 43,892 | (427) |
| JB Hunt Transport Services, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 734 | Monthly | 125,399 | 1,096 |
| JB Hunt Transport Services, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,069 | Monthly | 182,595 | (2,534) |
| JB Hunt Transport Services, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 885 | Monthly | 151,182 | (551) |
| Johnson Controls International PLC | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,100 | Monthly | 425,058 | (21,745) |
| Johnson Controls International PLC | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,385 | Monthly | 262,494 | (8,762) |
| Kellogg Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 7,102 | Monthly | 486,423 | 6,186 |
| Keysight Technologies, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,721 | Monthly | 381,622 | (13,657) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Kimberly-Clarke Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,787 | Monthly | $ 248,079 | $ (113) |
| Kinder Morgan, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 30,439 | Monthly | 560,889 | (22,017) |
| KLA Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,233 | Monthly | 393,581 | (10,683) |
| Kohls Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,103 | Monthly | 237,467 | (5,268) |
| Kroger (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 8,384 | Monthly | 452,380 | (25,508) |
| Kroger (The) Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 10,423 | Monthly | 562,275 | (80,512) |
| L Brands, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 873 | Monthly | 46,156 | (471) |
| Lam Research Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 996 | Monthly | 463,877 | 2,600 |
| LIncoln National Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 884 | Monthly | 53,201 | (4,215) |
| LIncoln National Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 5,936 | Monthly | 359,050 | (28,749) |
| Live Nation Entertainment, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 4,343 | Monthly | 455,474 | (4,493) |
| Lockheed Martin Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,201 | Monthly | 518,926 | (30,943) |
| Loews Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,911 | Monthly | 120,082 | (3,579) |
| Loews Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 951 | Monthly | 59,741 | (2,550) |
| Lowe's Cos., Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 2,970 | Monthly | 589,491 | (24,290) |
| Lowe's Cos., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,399 | Monthly | 476,210 | (39) |
| LyondellBasell Industries N.V., Class A | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,381 | Monthly | 358,392 | 15,120 |
| Macys, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 10,103 | Monthly | 244,119 | 4,374 |
| Magna International, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,830 | Monthly | 230,824 | (4,568) |
| Marathon Petroleum Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,095 | Monthly | 619,083 | 1,250 |
| Marathon Petroleum Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,884 | Monthly | 338,822 | 1,427 |
| Marriott International, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,850 | Monthly | 505,910 | (5,637) |
| Masco Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,077 | Monthly | 109,424 | 7,298 |
| Match Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,523 | Monthly | 278,988 | 6,588 |
| Mattel, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 10,892 | Monthly | 264,742 | 23,266 |
| Mcdonalds Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 286 | Monthly | 71,257 | (292) |
| Mcdonalds Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,504 | Monthly | 374,648 | (3,548) |
| Mcdonalds Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 690 | Monthly | 171,897 | (1,334) |
| McKesson Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,019 | Monthly | 315,479 | (8,747) |
| McKesson Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,045 | Monthly | 323,437 | (17,066) |
| McKesson Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 727 | Monthly | 225,055 | (12,420) |
| MGM Resorts International | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 23,832 | Monthly | 977,938 | (2,990) |
| Micron Technology, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,805 | Monthly | 396,351 | (22,154) |
| Mid-America Apartment Communities, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,306 | Monthly | 455,990 | (12,543) |
| Mohawk Industries, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 148 | Monthly | 20,873 | 2,669 |
| Molina Healthcare, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 113 | Monthly | 35,386 | (2,216) |
| Molson Coors Beverage Co., Class B | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 6,335 | Monthly | 342,930 | (9,486) |
| MSCI, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 614 | Monthly | 258,635 | (21,373) |
| NetApp, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,292 | Monthly | 95,261 | (5,644) |
| Newmont Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,578 | Monthly | 552,045 | (5,492) |
| Nordstrom, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 9,944 | Monthly | 255,665 | (28,435) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Norfolk Southern Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,259 | Monthly | $ 582,526 | $ (1,629) |
| Norfolk Southern Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 733 | Monthly | 189,013 | (2,702) |
| NRG Energy, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 6,031 | Monthly | 218,592 | (21,623) |
| Occidental Petroleum Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 12,879 | Monthly | 709,455 | (19,754) |
| Occidental Petroleum Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 2,156 | Monthly | 119,085 | (14,156) |
| Omnicom Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 712 | Monthly | 54,202 | (2,053) |
| Omnicom Group, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,491 | Monthly | 189,614 | (6,179) |
| Onemain Holdings, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,308 | Monthly | 197,824 | (5,513) |
| Otis Worldwide Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,178 | Monthly | 158,634 | (1,275) |
| Ovintiv, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,824 | Monthly | 195,742 | 3,395 |
| Packaging Corp. Of America | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,781 | Monthly | 609,303 | 1,356 |
| PBF Energy, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 6,638 | Monthly | 192,900 | 5,661 |
| Penn National Gaming, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 460 | Monthly | 16,903 | 90 |
| Pfizer, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 21,448 | Monthly | 1,052,409 | 20,116 |
| Phillips 66 | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 5,607 | Monthly | 486,443 | 17,586 |
| PPL Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 16,832 | Monthly | 476,449 | (15,382) |
| Procter & Gamble (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,791 | Monthly | 450,914 | 865 |
| Procter & Gamble (The) Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,857 | Monthly | 622,620 | 5,114 |
| Prologis, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 458 | Monthly | 73,383 | (1,272) |
| PTC Therapeutics, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 249 | Monthly | 28,438 | (171) |
| Public Storage | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7 | Monthly | 2,600 | (216) |
| QUALCOMM, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,446 | Monthly | 481,308 | 1,211 |
| Quest Diagnostics, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 6,708 | Monthly | 902,330 | 8,556 |
| Range Resources Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 15,509 | Monthly | 464,319 | (5,837) |
| Ryder System, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 3,721 | Monthly | 260,087 | 9,068 |
| Ryder System, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,083 | Monthly | 215,456 | 20,888 |
| Ryder System, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,100 | Monthly | 146,772 | 11,532 |
| Salesforce.com, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 895 | Monthly | 157,463 | 1,874 |
| SBA Communications Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 290 | Monthly | 100,648 | (6,437) |
| Seagate Technology, LLC | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 5,939 | Monthly | 487,125 | (16,891) |
| SeaWorld Entertainment, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 37 | Monthly | 2,485 | (233) |
| Semiconductor Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 8,932 | Monthly | 465,382 | (22,037) |
| Service Corp., (US) International | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 311 | Monthly | 20,404 | (999) |
| Simon Property Group, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 5,535 | Monthly | 647,943 | (59,061) |
| SM Energy Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 13,744 | Monthly | 488,332 | (57,822) |
| Southwest Airlines Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,536 | Monthly | 211,907 | 2,234 |
| Southwestern Energy | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 36,839 | Monthly | 276,251 | (36,144) |
| Steris, PLC | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,695 | Monthly | 436,098 | (19,783) |
| STORE Capital Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 4,729 | Monthly | 134,439 | (6,106) |
| Synaptics Incorporated | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,070 | Monthly | 307,268 | 122 |
| Tapestry, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 924 | Monthly | 30,417 | 80 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,003 | Monthly | 516,661 | (16,757) |
| Target Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,383 | Monthly | 316,155 | (6,984) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| TC Energy Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,823 | Monthly | $ 96,437 | $ (2,819) |
| Tenet Healthcare Corp. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 2,159 | Monthly | 156,536 | (16,474) |
| Thor Industries, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 315 | Monthly | 24,113 | 210 |
| Toll Brothers, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 8,404 | Monthly | 389,677 | 6,454 |
| Toll Brothers, Inc. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 6,146 | Monthly | 287,225 | 5,739 |
| TopBuild Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,005 | Monthly | 182,025 | 7,457 |
| Transocean Ltd. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 29,785 | Monthly | 111,965 | (18,444) |
| Tyson Foods, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 876 | Monthly | 81,605 | (1,044) |
| Tyson Foods, Inc., Class A | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 1,972 | Monthly | 183,683 | (2,156) |
| Under Armour, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 23,446 | Monthly | 360,115 | (2,595) |
| Under Armour, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,005 | Monthly | 46,150 | (2,050) |
| Union Pacific Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 2,406 | Monthly | 563,677 | (48) |
| United Parcel Service, Inc., Class B | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 2,997 | Monthly | 539,266 | (33,071) |
| United Parcel Service, Inc., Class B | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,230 | Monthly | 221,353 | (10,032) |
| United States Steel Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 14,425 | Monthly | 439,798 | (43,298) |
| United States Steel Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 3,501 | Monthly | 106,777 | (23,321) |
| Valero Energy Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 4,480 | Monthly | 499,400 | 37,736 |
| VeriSign, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,211 | Monthly | 216,375 | (37,632) |
| Vornado Realty Trust | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 10,978 | Monthly | 424,940 | (23,689) |
| Voya Financial, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,943 | Monthly | 122,675 | (6,437) |
| Voya Financial, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 4,175 | Monthly | 263,572 | (20,078) |
| Vulcan Materials Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 224 | Monthly | 38,588 | (386) |
| Walt Disney (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 5,033 | Monthly | 562,112 | (32,479) |
| Westlake Chemical Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,812 | Monthly | 355,812 | (575) |
| WestRock Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 7,960 | Monthly | 394,241 | (7,102) |
| WestRock Co. | U.S. Fed Funds + 0.20% | 2/8/2023 | JPMorgan Chase | 3,708 | Monthly | 183,616 | 8,673 |
| Weyerhaeuser Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 26,256 | Monthly | 1,082,221 | (7,928) |
| Whirlpool Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 1,921 | Monthly | 348,679 | 11,705 |
| Whirlpool Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 1,275 | Monthly | 231,409 | 13,665 |
| Wynn Resorts Finance LLC/Wynn Resourts Capital Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 5,962 | Monthly | 420,445 | (15,973) |
| Xylem, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 127 | Monthly | 10,223 | (530) |
| Yum Brands, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | 154 | Monthly | 18,015 | (835) |
| Zoetis, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | 2,659 | Monthly | 472,056 | (13,412) |
| Total (Cost $75,725,210) | | | | 1,274,571 | | $73,149,242 | $(2,575,968) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| AbbVie, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,442) | Monthly | $ (362,112) | $ 27,045 |
| AES (The) Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (18,501) | Monthly | (380,709) | 35,378 |
| AES (The) Corp. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (27,314) | Monthly | (561,803) | 106,933 |
| Albertsons Companies, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (15,129) | Monthly | (473,902) | 9,978 |
| Allstate Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,017) | Monthly | (128,685) | 13,420 |
| Ally Financial, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (24,686) | Monthly | (993,823) | 87,090 |
| Altria Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (9,063) | Monthly | (511,079) | (7,810) |
| Amazon.com, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (56) | Monthly | (139,193) | 22,520 |
| American Airlines Group, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (16,143) | Monthly | (302,994) | 11,372 |
| American Express Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (702) | Monthly | (123,010) | 5,916 |
| American Homes 4 Rent, L.P. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (992) | Monthly | (39,290) | 1,163 |
| American Tower Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,144) | Monthly | (275,956) | 20,769 |
| AmerisourceBergen Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (153) | Monthly | (23,147) | 1,624 |
| Amgen, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (932) | Monthly | (217,331) | 17,284 |
| Amgen, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (509) | Monthly | (118,690) | 9,670 |
| Aptiv PLC | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,072) | Monthly | (114,061) | (828) |
| Aramark Services, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (15,834) | Monthly | (573,964) | 9,044 |
| Arrow Electronics, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (403) | Monthly | (47,498) | 184 |
| Ashland Global Holdings, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,373) | Monthly | (249,091) | (3,984) |
| Ashland Global Holdings, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (721) | Monthly | (75,678) | (3,975) |
| Assurant, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (643) | Monthly | (116,949) | 2,651 |
| Avis Budget Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (199) | Monthly | (53,267) | 6,049 |
| Baker Hughes Co., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,645) | Monthly | (144,087) | 4,952 |
| Baker Hughes Co., Class A | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (8,749) | Monthly | (271,371) | 56,891 |
| Baker Hughes Co., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,918) | Monthly | (59,494) | 12,297 |
| Ball Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (3,543) | Monthly | (287,547) | 16,419 |
| Ball Corp. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (3,951) | Monthly | (320,639) | 24,757 |
| Bausch Health Cos., Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (34,754) | Monthly | (660,666) | 92,453 |
| Bausch Health Cos., Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (6,258) | Monthly | (118,942) | 27,370 |
| Bausch Health Cos., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,047) | Monthly | (57,921) | 6,127 |
| Becton Dickinson and Company | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (9) | Monthly | (2,194) | 147 |
| Bed Bath & Beyond, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (16,043) | Monthly | (218,346) | 55,133 |
| Berkshire Hathaway, Inc., Class B | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (151) | Monthly | (48,747) | 1,922 |
| Berkshire Hathaway, Inc., Class B | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (98) | Monthly | (31,634) | 2,338 |
| Best Buy Co., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (88) | Monthly | (7,914) | 313 |
| Block, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,585) | Monthly | (456,386) | 15,135 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Boeing (The) Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,258) | Monthly | $ (187,238) | $ 25,554 |
| Booking Holdings, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (31) | Monthly | (68,520) | 774 |
| Boston Scientific Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (9,646) | Monthly | (406,189) | 17,271 |
| Boston Scientific Corp. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (3,719) | Monthly | (156,596) | 10,164 |
| Boston Scientific Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (6,957) | Monthly | (292,948) | 11,351 |
| Broadcom, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (840) | Monthly | (465,656) | 26,030 |
| Broadridge Financial Solutions, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (795) | Monthly | (114,580) | 5,598 |
| Brookfield Asset Management Inc., Class A | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (5,691) | Monthly | (283,731) | 35,761 |
| Brown & Brown, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (5,863) | Monthly | (363,385) | 33,716 |
| Brunswick Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,424) | Monthly | (258,882) | 1,074 |
| Canadian Natural Resources Ltd. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (7,474) | Monthly | (462,416) | 14,948 |
| Canadian Natural Resources Ltd. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (9,532) | Monthly | (589,724) | 50,731 |
| Canadian Pacific Railway Ltd. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (3,079) | Monthly | (226,228) | 4,912 |
| Capital One Financial Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,385) | Monthly | (546,453) | 46,750 |
| Carlisle Companies, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (193) | Monthly | (50,056) | (2,628) |
| Carnival Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (48,358) | Monthly | (836,585) | 67,683 |
| Carvana Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (7,160) | Monthly | (414,978) | 222,113 |
| Caterpillar, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,733) | Monthly | (578,434) | 12,714 |
| Caterpillar, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (367) | Monthly | (77,529) | 5,567 |
| CDW Corporation of Delaware | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,884) | Monthly | (470,596) | 22,988 |
| CenterPoint Energy, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,289) | Monthly | (70,066) | 2,793 |
| CenterPoint Energy, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (2,330) | Monthly | (71,316) | 4,386 |
| CenterPoint Energy, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,446) | Monthly | (44,259) | 2,418 |
| Charter Communications, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (867) | Monthly | (371,497) | 63,437 |
| Charter Communications, Inc., Class A | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (396) | Monthly | (169,667) | 51,143 |
| Comcast Corp., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (8,021) | Monthly | (320,675) | 37,876 |
| Comcast Corp., Class A | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (2,165) | Monthly | (86,658) | 16,006 |
| Comcast Corp., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,786) | Monthly | (151,548) | 25,864 |
| Conagra Brands, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,262) | Monthly | (150,202) | 3,741 |
| Conagra Brands, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (7,865) | Monthly | (277,164) | (5,821) |
| Conagra Brands, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (5,172) | Monthly | (182,268) | 769 |
| ConocoPhillips | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (1,650) | Monthly | (158,104) | 11,929 |
| Constellation Brands, Inc., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (83) | Monthly | (20,425) | 404 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Continental Resources (OK), Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (3,169) | Monthly | $ (176,100) | $ 9,877 |
| Corteva, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (10,250) | Monthly | (591,281) | 20,029 |
| Danaher Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,083) | Monthly | (523,272) | 26,258 |
| Darden Restaurants, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (725) | Monthly | (97,011) | 176 |
| DaVita, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,251) | Monthly | (135,567) | 11,740 |
| Deere & Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,511) | Monthly | (571,978) | 36,197 |
| Dell Technologies, Inc., Class C | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (9,941) | Monthly | (470,592) | 1,009 |
| Delta Air Lines, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (10,266) | Monthly | (441,741) | 6,780 |
| Delta Air Lines, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (11,232) | Monthly | (483,313) | (66,585) |
| Dentsply Sirona, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (9,754) | Monthly | (390,058) | 9,368 |
| Devon Energy Corp. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (10,365) | Monthly | (602,890) | 40,339 |
| Digital Realty Trust, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (315) | Monthly | (46,025) | 1,219 |
| DISH Network Corp., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (16,388) | Monthly | (467,217) | 34,748 |
| DISH Network Corp., Class A | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (17,505) | Monthly | (499,029) | 67,083 |
| Dollar Tree, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,745) | Monthly | (445,921) | 13,839 |
| Dominion Energy, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (7,086) | Monthly | (578,495) | 23,035 |
| Dow, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,092) | Monthly | (72,618) | 2,184 |
| Edison International | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (859) | Monthly | (59,691) | 1,830 |
| Edison International | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (2,836) | Monthly | (197,060) | 6,991 |
| Edison International | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,464) | Monthly | (240,705) | 7,837 |
| Electronic Arts, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,040) | Monthly | (457,057) | 19,181 |
| Enbridge, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (12,881) | Monthly | (562,086) | 39,586 |
| Entegris, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,366) | Monthly | (374,926) | 4,287 |
| EQT Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (11,845) | Monthly | (470,822) | 63,052 |
| Equifax, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (1,905) | Monthly | (387,681) | 32,248 |
| Equinix, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (244) | Monthly | (175,443) | 12,140 |
| Fidelity National Information Services, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (697) | Monthly | (69,105) | 2,790 |
| FirstEnergy Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (6,598) | Monthly | (285,763) | 26,256 |
| Fiserv, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (4,743) | Monthly | (464,402) | 12,507 |
| Foot Locker, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (7,474) | Monthly | (220,102) | 5,948 |
| Ford Motor Co. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (30,714) | Monthly | (437,982) | 24,265 |
| Ford Motor Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (39,612) | Monthly | (564,687) | 54,619 |
| Fox Corp., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (45) | Monthly | (1,613) | 107 |
| Gap (The), Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (42,624) | Monthly | (535,779) | (36,225) |
| Gap (The), Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (34,921) | Monthly | (438,699) | 57,577 |
| Global Payments, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (3,564) | Monthly | (488,192) | (9,048) |
| Goodyear Tire & Rubber (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (43,696) | Monthly | (582,025) | (4,801) |
| Hess Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,589) | Monthly | (266,845) | 8,754 |
| HF Sinclair Corporation | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (12,726) | Monthly | (483,824) | (1,127) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (751) | Monthly | $ (116,622) | $ (1,456) |
| Host Hotels & Resorts, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (3,093) | Monthly | (62,942) | 650 |
| Host Hotels & Resorts, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (35,909) | Monthly | (730,725) | (32,655) |
| Howmet Aerospace Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (5,723) | Monthly | (195,267) | 4,809 |
| Howmet Aerospace Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (10,648) | Monthly | (363,297) | 14,068 |
| Humana, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (515) | Monthly | (229,489) | (582) |
| Hyatt Hotels Corp., Class A | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,005) | Monthly | (95,434) | (150) |
| Intel Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (9,924) | Monthly | (432,572) | 30,283 |
| International Business Machines Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,530) | Monthly | (598,954) | 27,319 |
| International Paper Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (12,577) | Monthly | (582,044) | 14,860 |
| Iron Mountain, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (11,050) | Monthly | (593,710) | 32,604 |
| Iron Mountain, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (8,009) | Monthly | (430,309) | 18,756 |
| Johnson & Johnson | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,611) | Monthly | (290,721) | 3,244 |
| KB Home | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (14,638) | Monthly | (474,706) | (1,020) |
| Kinder Morgan, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,214) | Monthly | (40,797) | 2,487 |
| Kohls Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,367) | Monthly | (252,759) | (2,268) |
| Kraft Heinz Foods Co. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (7,146) | Monthly | (304,634) | 1,208 |
| Kraft Heinz Foods Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (14,124) | Monthly | (602,087) | (6,619) |
| L Brands, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (11,395) | Monthly | (602,649) | (58,268) |
| L3Harris Technologies, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (151) | Monthly | (35,070) | 2,360 |
| Lamb Weston Holdings, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,532) | Monthly | (101,264) | 3,218 |
| Lamb Weston Holdings, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (11,465) | Monthly | (757,811) | 12,178 |
| Las Vegas Sands Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (13,432) | Monthly | (475,880) | 16,403 |
| Leidos Holdings, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (4,505) | Monthly | (466,297) | 25,920 |
| Lennar Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (901) | Monthly | (69,255) | 104 |
| Lithia Motors, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,020) | Monthly | (288,793) | 12,719 |
| Lumen Technologies, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (8,514) | Monthly | (85,650) | 6,386 |
| Marathon Petroleum Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (8,359) | Monthly | (208,299) | 16,391 |
| Marriott International, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,622) | Monthly | (465,444) | 17,225 |
| Marsh & McLennan Cos., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (172) | Monthly | (27,428) | 1,653 |
| Marvell Technology, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (6,198) | Monthly | (360,350) | 31,053 |
| Merck & Co., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (801) | Monthly | (71,039) | (2,572) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| MGIC Investment Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (7,420) | Monthly | $ (96,904) | $ 1,114 |
| MGIC Investment Corp. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (1,642) | Monthly | (21,443) | (48) |
| MGIC Investment Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (6,827) | Monthly | (89,158) | 3,758 |
| Mondelez International, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (9,092) | Monthly | (586,266) | (8,287) |
| Moodys Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (871) | Monthly | (275,651) | 5,177 |
| Motorola Solutions, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,695) | Monthly | (575,889) | 30,017 |
| Motorola Solutions, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (1,043) | Monthly | (222,864) | 23,913 |
| Murphy Oil Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (11,025) | Monthly | (419,816) | 62,858 |
| National Oilwell Varco, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,515) | Monthly | (63,725) | 7,405 |
| Navient Corp. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (11,696) | Monthly | (185,836) | 8,434 |
| Netflix, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (380) | Monthly | (72,330) | 56,057 |
| Newell Brands, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,387) | Monthly | (32,109) | (596) |
| Newell Brands, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (927) | Monthly | (21,460) | (603) |
| NextEra Energy, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (7,869) | Monthly | (558,851) | 22,630 |
| NiSource, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (5,502) | Monthly | (161,687) | 8,159 |
| Nordstrom, Inc. | U.S. Fed Funds + (0.445)% | 2/8/2023 | JPMorgan Chase | (3,753) | Monthly | (97,329) | 6,066 |
| Northrop Grumman Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (548) | Monthly | (240,791) | 4,384 |
| Norwegian Cruise Line Holdings Ltd. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (15,904) | Monthly | (318,535) | (1,410) |
| NRG Energy, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (12,212) | Monthly | (442,654) | 39,958 |
| Olin Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,010) | Monthly | (57,974) | 1,978 |
| Omega Healthcare Investors, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (7,095) | Monthly | (185,533) | 8,231 |
| Oneok, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (2,948) | Monthly | (189,442) | 19,256 |
| Oracle Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (6,176) | Monthly | (453,314) | 17,318 |
| Oshkosh Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,052) | Monthly | (97,244) | 4,622 |
| Ovintiv, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,566) | Monthly | (131,354) | 7,903 |
| PayPal Holdings, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (4,265) | Monthly | (374,991) | 95,293 |
| Performance Food Group, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (8,991) | Monthly | (442,792) | 9,995 |
| Perkinelmer, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (9) | Monthly | (1,320) | 53 |
| PG&E Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (38,923) | Monthly | (492,361) | (18,278) |
| Philip Morris International, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,425) | Monthly | (342,493) | 9,127 |
| Pinnacle West Capital Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (31) | Monthly | (2,234) | 163 |
| Pioneer Natural Resources Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (641) | Monthly | (149,012) | 2,418 |
| Pioneer Natural Resources Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (153) | Monthly | (35,567) | 3,704 |
| Progressive Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,765) | Monthly | (189,488) | 1,732 |
| Prudential Financial, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,159) | Monthly | (342,783) | 25,549 |
| PulteGroup, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (10,540) | Monthly | (440,146) | 1,585 |
| Qorvo, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (195) | Monthly | (22,187) | 88 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Quanta Services, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (3,905) | Monthly | $ (453,132) | $ 65,859 |
| Radian Group, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (12,653) | Monthly | (270,629) | 5,839 |
| Ralph Lauren Corp., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,042) | Monthly | (213,055) | 8,910 |
| Raymond James Financial, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (4,586) | Monthly | (446,935) | 61,744 |
| Raytheon Technologies Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (10,728) | Monthly | (1,018,207) | 100,723 |
| Rexford Industrial Reality, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (5,987) | Monthly | (467,221) | 18,086 |
| Ross Stores, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (211) | Monthly | (21,051) | 1,045 |
| Royal Caribbean Cruises Ltd. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (13,399) | Monthly | (1,041,470) | 47,665 |
| Schlumberger Ltd. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,094) | Monthly | (42,676) | 2,889 |
| Scotts Miracle-Gro (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (4,025) | Monthly | (418,314) | 930 |
| Sealed Air Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (8,868) | Monthly | (569,395) | 16,602 |
| Sempra Energy | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (3,218) | Monthly | (519,250) | 22,146 |
| Sherwin-Williams (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,224) | Monthly | (611,504) | (66,802) |
| Sherwin-Williams (The) Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,238) | Monthly | (340,394) | (31,184) |
| Southern (The) Co. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (4,758) | Monthly | (349,165) | 14,775 |
| Southern (The) Co. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,365) | Monthly | (246,949) | 8,219 |
| Spirit AeroSystems Holdings, Inc., Class A | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (184) | Monthly | (7,735) | 683 |
| Steel Dynamics, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (581) | Monthly | (49,818) | 2,245 |
| Sun Communities, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,095) | Monthly | (367,815) | 23,656 |
| Sysco Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (5,369) | Monthly | (461,298) | 706 |
| TC Energy Corp. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (6,552) | Monthly | (352,779) | 20,030 |
| Teck Resources Ltd., Class B | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,846) | Monthly | (112,302) | (6,317) |
| Teck Resources Ltd., Class B | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (24,866) | Monthly | (981,148) | 29,529 |
| Teledyne Technologies, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,006) | Monthly | (434,124) | 49,169 |
| Tesla, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (665) | Monthly | (579,036) | 80,995 |
| T-Mobile US, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,570) | Monthly | (316,466) | 15,400 |
| T-Mobile US, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (2,642) | Monthly | (325,312) | 25,651 |
| Tractor Supply Company | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,144) | Monthly | (230,452) | 5,955 |
| TransDigm, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (182) | Monthly | (108,255) | 4,081 |
| TransDigm, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (477) | Monthly | (283,703) | 21,968 |
| TransDigm, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (456) | Monthly | (271,224) | 17,511 |
| Twilio Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (2,132) | Monthly | (238,400) | 15,788 |
| Uber Technologies, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,566) | Monthly | (49,298) | 323 |
| United Airlines Holdings, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (12,221) | Monthly | (617,143) | (79,786) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2022:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| United Rentals North America, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (440) | Monthly | $ (139,259) | $ 243 |
| United Rentals North America, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (1,387) | Monthly | (438,998) | 31,958 |
| UnitedHealth Group, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (308) | Monthly | (156,632) | 3,818 |
| UnitedHealth Group, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (790) | Monthly | (401,725) | 29,583 |
| UnitedHealth Group, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (885) | Monthly | (450,059) | 14,885 |
| Universal Health Services, Inc., Class B | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,104) | Monthly | (135,272) | 11,483 |
| Universal Health Services, Inc., Class B | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (504) | Monthly | (61,744) | 11,840 |
| Universal Health Services, Inc., Class B | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,118) | Monthly | (259,508) | 61,157 |
| US Foods Holding Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (3,093) | Monthly | (116,355) | (4,450) |
| Verisk Analytics, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (2,099) | Monthly | (428,289) | 15,627 |
| Verizon Communications, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (11,420) | Monthly | (536,035) | 73,679 |
| ViacomCBS, Inc., Class B | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,218) | Monthly | (35,467) | 594 |
| VICI Properties, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (15,859) | Monthly | (472,753) | (1,380) |
| Vistra Operations Co. LLC | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (18,498) | Monthly | (462,806) | (3,063) |
| Walmart, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (3,300) | Monthly | (504,835) | 13,943 |
| Walmart, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (269) | Monthly | (41,154) | 802 |
| Welltower, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (2,466) | Monthly | (223,921) | 15,232 |
| Western Union (The) Co. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (1,384) | Monthly | (23,196) | 3,128 |
| Williams (The) Cos., Inc. | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (1,014) | Monthly | (34,768) | 134 |
| Williams (The) Cos., Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (18,021) | Monthly | (617,919) | 18,402 |
| Willis Towers Watson, PLC | U.S. Fed Funds + (0.15)% | 2/8/2023 | JPMorgan Chase | (574) | Monthly | (124,145) | 14,218 |
| Xerox Holdings Corp. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (16,527) | Monthly | (291,225) | 19,619 |
| Zimmer Biomet Holdings, Inc. | U.S. Fed Funds + 0.32% | 1/26/2023 | Barclays | (3,645) | Monthly | (440,710) | 17,466 |
| ZoomInfo Technologies, Inc. | U.S. Fed Funds + 0.33% | 2/27/2023 | Goldman Sachs | (397) | Monthly | (18,817) | 2,645 |
| Total (Cost $73,515,828) | | | | (1,451,037) | | $(69,927,368) | $3,588,460 |
Interest Rate Swap Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 8.45% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/15/2027 | MXN | 6,250,000 | $ 9,055 | $ — | $ 9,055 |
| 8.86% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/15/2027 | MXN | 14,980,000 | 10,052 | — | 10,052 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Interest Rate Swap Contracts outstanding at April 30, 2022:
Exchange Traded (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 8.90% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/15/2027 | MXN | 6,840,000 | $ 4,097 | $ — | $ 4,097 |
| 9.00% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/15/2027 | MXN | 6,280,000 | 2,592 | — | 2,592 |
| 1.83% (Annually) | 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 9/21/2027 | GBP | 150,000 | 2,804 | — | 2,804 |
| 1.86% (Annually) | 2-Day USD SOFR (Annually) | 9/21/2027 | USD | 380,000 | 17,019 | — | 17,019 |
| 1.89% (Annually) | 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 9/21/2027 | GBP | 310,000 | 4,670 | — | 4,670 |
| 1.98% (Annually) | 2-Day USD SOFR (Annually) | 9/21/2027 | USD | 420,000 | 16,507 | — | 16,507 |
| 2.20% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/21/2027 | SGD | 330,000 | 2,450 | — | 2,450 |
| 2.22% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 3,750,000 | 138,191 | 4,909 | 133,282 |
| 2.24% (Annually) | 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 9/21/2027 | GBP | 310,000 | (1,744) | (942) | (802) |
| 2.25% (Annually) | 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 9/21/2027 | GBP | 200,000 | (1,212) | — | (1,212) |
| 2.28% (Annually) | 2-Day USD SOFR (Annually) | 9/21/2027 | USD | 490,000 | 12,423 | — | 12,423 |
| 2.34% (Annually) | 2-Day USD SOFR (Annually) | 9/21/2027 | USD | 320,000 | 7,165 | — | 7,165 |
| 2.37% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/21/2027 | SGD | 720,000 | 1,070 | — | 1,070 |
| 2.44% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/21/2027 | SGD | 330,000 | — | — | — |
| 2.46% (Annually) | 2-Day USD SOFR (Annually) | 9/21/2027 | USD | 930,000 | 15,853 | — | 15,853 |
| 2.46% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/21/2027 | SGD | 520,000 | (696) | — | (696) |
| 2.55% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/21/2027 | SGD | 580,000 | (2,652) | — | (2,652) |
| 2.58% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/21/2027 | SGD | 450,000 | (2,441) | — | (2,441) |
| 2.68% (Annually) | 2-Day USD SOFR (Annually) | 9/21/2027 | USD | 250,000 | 1,641 | — | 1,641 |
| 2.82% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 1,100,000 | 16,896 | — | 16,896 |
| 2.83% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 390,000 | 5,893 | — | 5,893 |
| 2.85% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 740,000 | 10,573 | — | 10,573 |
| 2.89% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 290,000 | 3,760 | — | 3,760 |
| 3.19% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 200,000 | 460 | — | 460 |
| 3.27% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/21/2027 | CAD | 450,000 | — | — | — |
| 3.37% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/21/2027 | AUD | 200,000 | 1,904 | — | 1,904 |
| 3.56% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/21/2027 | AUD | 540,000 | — | — | — |
| 3M HKD HIBOR (Quarterly) | 2.07% (Quarterly) | 9/21/2027 | HKD | 8,946,000 | (53,008) | — | (53,008) |
| 3M HKD HIBOR (Quarterly) | 2.06% (Quarterly) | 9/21/2027 | HKD | 7,041,780 | (42,245) | — | (42,245) |
| 3M HKD HIBOR (Quarterly) | 2.30% (Quarterly) | 9/21/2027 | HKD | 3,574,000 | (16,318) | — | (16,318) |
| 3M HKD HIBOR (Quarterly) | 2.48% (Quarterly) | 9/21/2027 | HKD | 3,220,000 | (11,255) | — | (11,255) |
| 3M HKD HIBOR (Quarterly) | 2.89% (Quarterly) | 9/21/2027 | HKD | 2,270,000 | (2,405) | — | (2,405) |
| 3M HKD HIBOR (Quarterly) | 2.54% (Quarterly) | 9/21/2027 | HKD | 2,260,000 | (7,051) | — | (7,051) |
| 3M HKD HIBOR (Quarterly) | 3.10% (Quarterly) | 9/21/2027 | HKD | 2,000,000 | 341 | — | 341 |
| 3M HKD HIBOR (Quarterly) | 3.09% (Quarterly) | 9/21/2027 | HKD | 2,000,000 | 270 | — | 270 |
| 3M HKD HIBOR (Quarterly) | 2.31% (Quarterly) | 9/21/2027 | HKD | 1,836,000 | (8,290) | — | (8,290) |
| 3M HKD HIBOR (Quarterly) | 2.86% (Quarterly) | 9/21/2027 | HKD | 1,045,000 | (1,336) | — | (1,336) |
| 3M HKD HIBOR (Quarterly) | 2.85% (Quarterly) | 9/21/2027 | HKD | 1,045,000 | (1,398) | — | (1,398) |
| 3M SEK STBOR (Quarterly) | 1.33% (Annually) | 9/21/2027 | SEK | 40,510,000 | (202,449) | (2,421) | (200,028) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Interest Rate Swap Contracts outstanding at April 30, 2022:
Exchange Traded (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 3M SEK STBOR (Quarterly) | 1.91% (Annually) | 9/21/2027 | SEK | 12,520,000 | $ (27,736) | $ — | $ (27,736) |
| 3M SEK STBOR (Quarterly) | 1.80% (Annually) | 9/21/2027 | SEK | 3,880,000 | (10,658) | (158) | (10,500) |
| 3M SEK STBOR (Quarterly) | 1.64% (Annually) | 9/21/2027 | SEK | 3,090,000 | (10,818) | — | (10,818) |
| 3M ZAR JIBAR (Quarterly) | 7.54% (Quarterly) | 9/21/2027 | ZAR | 10,710,000 | (8,265) | — | (8,265) |
| 3M ZAR JIBAR (Quarterly) | 7.81% (Quarterly) | 9/21/2027 | ZAR | 6,490,000 | — | — | — |
| 3M ZAR JIBAR (Quarterly) | 7.62% (Quarterly) | 9/21/2027 | ZAR | 4,720,000 | (2,686) | — | (2,686) |
| 3M ZAR JIBAR (Quarterly) | 7.66% (Quarterly) | 9/21/2027 | ZAR | 4,620,000 | (2,093) | — | (2,093) |
| 3M ZAR JIBAR (Quarterly) | 7.52% (Quarterly) | 9/21/2027 | ZAR | 4,440,000 | (3,614) | — | (3,614) |
| 3M ZAR JIBAR (Quarterly) | 7.40% (Quarterly) | 9/21/2027 | ZAR | 3,770,000 | (4,235) | — | (4,235) |
| 3M ZAR JIBAR (Quarterly) | 7.68% (Quarterly) | 9/21/2027 | ZAR | 2,225,000 | (922) | — | (922) |
| 3M ZAR JIBAR (Quarterly) | 7.63% (Quarterly) | 9/21/2027 | ZAR | 2,225,000 | (1,180) | — | (1,180) |
| 4.85% (Semi-Annually) | 6M PLN WIBOR (Annually) | 9/21/2027 | PLN | 9,410,000 | 135,169 | — | 135,169 |
| 5.13% (Annually) | 6M PLN WIBOR (Semi-Annually) | 9/21/2027 | PLN | 1,110,000 | 13,114 | — | 13,114 |
| 5.21% (Annually) | 6M PLN WIBOR (Semi-Annually) | 9/21/2027 | PLN | 3,220,000 | 35,819 | — | 35,819 |
| 5.83% (Annually) | 6M PLN WIBOR (Semi-Annually) | 9/21/2027 | PLN | 890,000 | 4,780 | — | 4,780 |
| 6.00% (Annually) | 6M PLN WIBOR (Semi-Annually) | 9/21/2027 | PLN | 1,050,000 | 4,044 | — | 4,044 |
| 6M EUR EURIBOR (Semi-Annually) | 0.65% (Annually) | 9/21/2027 | EUR | 3,030,000 | (146,152) | 1,357 | (147,509) |
| 6M EUR EURIBOR (Semi-Annually) | 0.98% (Annually) | 9/21/2027 | EUR | 740,000 | (23,310) | (2,286) | (21,024) |
| 6M EUR EURIBOR (Semi-Annually) | 1.05% (Annually) | 9/21/2027 | EUR | 700,000 | (19,665) | (1,666) | (17,999) |
| 6M EUR EURIBOR (Semi-Annually) | 0.88% (Annually) | 9/21/2027 | EUR | 490,000 | (17,948) | — | (17,948) |
| 6M EUR EURIBOR (Semi-Annually) | 1.02% (Annually) | 9/21/2027 | EUR | 460,000 | (13,670) | 764 | (14,434) |
| 6M EUR EURIBOR (Semi-Annually) | 1.54% (Annually) | 9/21/2027 | EUR | 380,000 | (1,164) | — | (1,164) |
| 6M EUR EURIBOR (Semi-Annually) | 1.52% (Annually) | 9/21/2027 | EUR | 370,000 | (1,539) | — | (1,539) |
| 6M EUR EURIBOR (Semi-Annually) | 1.61% (Annually) | 9/21/2027 | EUR | 310,000 | — | — | — |
| 6M EUR EURIBOR (Semi-Annually) | 0.91% (Annually) | 9/21/2027 | EUR | 280,000 | (9,878) | — | (9,878) |
| 6M EUR EURIBOR (Semi-Annually) | 1.30% (Annually) | 9/21/2027 | EUR | 230,000 | (3,450) | — | (3,450) |
| 6M EUR EURIBOR (Semi-Annually) | 1.51% (Annually) | 9/21/2027 | EUR | 170,000 | (793) | 442 | (1,235) |
| 6M EUR EURIBOR (Semi-Annually) | 1.26% (Annually) | 9/21/2027 | EUR | 100,000 | (1,700) | (275) | (1,425) |
| Total | | | | | $(187,364) | $ (276) | $(187,088) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Interest Rate Swap Contracts outstanding at April 30, 2022:
Over the Counter |
| | | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Counterparty | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 3M KRW KWCDC (Quarterly) | 2.83% (Quarterly) | Bank of America | 9/21/2027 | KRW | 900,620,800 | $ (9,655) | $— | $ (9,655) |
| 3M KRW KWCDC (Quarterly) | 3.06% (Quarterly) | JPMorgan Chase | 9/21/2027 | KRW | 787,577,500 | (1,536) | — | (1,536) |
| 3M KRW KWCDC (Quarterly) | 3.10% (Quarterly) | Bank of America | 9/21/2027 | KRW | 601,970,000 | (274) | — | (274) |
| 3M KRW KWCDC (Quarterly) | 2.77% (Quarterly) | Morgan Stanley | 9/21/2027 | KRW | 578,670,000 | (7,572) | — | (7,572) |
| 3M KRW KWCDC (Quarterly) | 3.02% (Quarterly) | Bank of America | 9/21/2027 | KRW | 396,265,000 | (1,398) | — | (1,398) |
| 3M KRW KWCDC (Quarterly) | 2.97% (Quarterly) | Bank of America | 9/21/2027 | KRW | 396,265,000 | (2,156) | — | (2,156) |
| 3M KRW KWCDC (Quarterly) | 2.92% (Quarterly) | Citibank | 9/21/2027 | KRW | 381,460,000 | (2,847) | — | (2,847) |
| 3M KRW KWCDC (Quarterly) | 2.92% (Quarterly) | Bank of America | 9/21/2027 | KRW | 381,460,000 | (2,747) | — | (2,747) |
| 3M KRW KWCDC (Quarterly) | 2.97% (Quarterly) | Citibank | 9/21/2027 | KRW | 347,140,000 | (1,940) | — | (1,940) |
| 3M KRW KWCDC (Quarterly) | 2.99% (Quarterly) | JPMorgan Chase | 9/21/2027 | KRW | 347,140,000 | (1,681) | — | (1,681) |
| 3M KRW KWCDC (Quarterly) | 3.24% (Quarterly) | Bank of America | 9/21/2027 | KRW | 294,110,000 | 1,388 | — | 1,388 |
| 3M KRW KWCDC (Quarterly) | 2.79% (Quarterly) | Bank of America | 9/21/2027 | KRW | 210,049,200 | (2,560) | — | (2,560) |
| 3M KRW KWCDC (Quarterly) | 3.10% (Quarterly) | JPMorgan Chase | 9/21/2027 | KRW | 133,105,000 | (83) | — | (83) |
| 3M KRW KWCDC (Quarterly) | 3.07% (Quarterly) | JPMorgan Chase | 9/21/2027 | KRW | 123,597,500 | (205) | — | (205) |
| Total | | | | | | $(33,266) | $— | $(33,266) |
Credit Default Swap Contracts outstanding - Sell Protection as of April 30, 2022:
Exchange Traded |
| | | | | | | | | |
| Reference Obligation | Implied
Credit
Spread | Fixed
Deal
Receive Rate | Maturity
Date | | Notional
Amount(1) | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Markit CDX North America Investment Grade Index Series 38 (Pay Quarterly) | 0.46% | 1.00% | 6/20/2027 | USD | 3,000,000 | $64,860 | $136,823 | $ (71,963) |
| Total | | | | | | $64,860 | $136,823 | $(71,963) |
| (1) | The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Inflation Swap Contracts outstanding at April 30, 2022:
Exchange Traded |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 2.05% (At Maturity) | 1-Day U.S. Consumer Price Index (At Maturity) | 2/15/2032 | EUR | 350,000 | $ 43,593 | $520 | $ 43,073 |
| 4.44% (At Maturity) | 1-Day U.S. Consumer Price Index (At Maturity) | 2/15/2032 | GBP | 410,000 | 18,567 | 191 | 18,376 |
| 2.69% (At Maturity) | 1-Day U.S. Consumer Price Index (At Maturity) | 2/25/2032 | USD | 1,140,000 | 64,656 | — | 64,656 |
| Total | | | | | $126,816 | $711 | $126,105 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Schedule of Investments (continued)
Morningstar Alternatives Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2022, in valuing the Fund's investments carried at fair value:
| Morningstar Alternatives Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Assets: | | | | |
| Asset-Backed Securities | $ — | $ 5,072,955 | $ — | $ 5,072,955 |
| Common Stocks | 93,855,965 | 9,967,640 | — | 103,823,605 |
| Convertible Bonds | — | 83,607,012 | — | 83,607,012 |
| Corporate Bonds | — | 41,208,671 | — | 41,208,671 |
| Foreign Issuer Bonds | — | 8,072,834 | — | 8,072,834 |
| Mortgage-Backed Securities | — | 80,748,418 | — | 80,748,418 |
| Preferred Stocks | 6,200,892 | 3,943,127 | — | 10,144,019 |
| Rights | — | — | 14,379 | 14,379 |
| Warrants | 23 | — | — | 23 |
| Investment Companies | 570,843 | — | — | 570,843 |
| Short-Term Investments | 23,046,998 | 31,822,244 | — | 54,869,242 |
| Purchased Options | 30,260 | — | — | 30,260 |
| Total Assets – Investments at value | $123,704,981 | $264,442,901 | $14,379 | $388,162,261 |
| Liabilities: | | | | |
| Common Stocks | $ (26,016,315) | $ (697,933) | $ — | $ (26,714,248) |
| Mortgage-Backed Securities | — | (134,834) | — | (134,834) |
| Total Liabilities – Investments at value | $ (26,016,315) | $ (832,767) | $ — | $ (26,849,082) |
| Net Investments | $ 97,688,666 | $263,610,134 | $14,379 | $361,313,179 |
| Morningstar Alternatives Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $2,168,150 | $ — | $— | $ 2,168,150 |
| Forward Foreign Currency Exchange Contracts | — | 648,282 | — | 648,282 |
| Contracts for Difference | — | 73,149,242 | — | 73,149,242 |
| Swap Agreements | — | 671,676 | — | 671,676 |
| Total Assets - Derivative Financial Instruments | $2,168,150 | $ 74,469,200 | $— | $ 76,637,350 |
| Liabilities: | | | | |
| Futures Contracts | $ (627,086) | $ — | $— | $ (627,086) |
| Forward Foreign Currency Exchange Contracts | — | (331,767) | — | (331,767) |
| Written Options | (33,592) | — | — | (33,592) |
| Contracts for Difference | — | (69,927,368) | — | (69,927,368) |
| Swap Agreements | — | (700,630) | — | (700,630) |
| Total Liabilities - Derivative Financial Instruments | $ (660,678) | $(70,959,765) | $— | $(71,620,443) |
| Net Derivative Financial Instruments | $1,507,472 | $ 3,509,435 | $— | $ 5,016,907 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Assets and Liabilities
| | Morningstar
U.S. Equity
Fund | Morningstar
International
Equity Fund | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Municipal
Bond Fund |
| Assets | | | | | |
| Investments in non-affiliates, at value* | $1,478,757,226 | $926,785,591 | $256,414,682 | $ 899,419,253 | $381,955,585 |
| Foreign currencies, at value | 95,563 | 530,784 | 8,275 | 2,065,902 | — |
| Due from broker | — | — | 147,728 | 14,848,463 | — |
| Receivable from Adviser | 55,561 | 61,589 | — | 149,243 | 34,922 |
| Receivable for: | | | | | |
| Dividends and interest | 1,218,899 | 3,414,302 | 1,678,262 | 4,322,049 | 4,345,833 |
| Securities lending income | 4,362 | 3,251 | 8,709 | 2,512 | — |
| Foreign tax reclaims | 121,441 | 766,349 | 381,429 | 6,899 | — |
| Investments sold | 25,876,083 | 626,502 | 2,411,753 | 112,159,028 | — |
| Fund shares sold | 693,942 | 475,440 | 274,362 | 614,979 | 243,957 |
| Variation margin on futures contracts | — | — | 30,375 | 291,775 | — |
| Variation margin on exchange traded swap agreements | — | — | — | 166,977 | — |
| Unrealized appreciation on OTC swap agreements and contracts for differences | — | — | — | 44,087 | — |
| Unrealized appreciation on forward foreign currency exchange contracts | — | 219,852 | 91,551 | 457,225 | — |
| Upfront premiums paid on swap agreements | — | — | — | 2,634,902 | — |
| Prepaid expenses and other assets | 28,686 | 20,723 | 7,990 | 19,575 | 11,739 |
| Total assets | 1,506,851,763 | 932,904,383 | 261,455,116 | 1,037,202,869 | 386,592,036 |
| Liabilities | | | | | |
| Investments sold short, at value | — | — | — | 13,674,779 | — |
| Written options, at value | — | — | 9,491 | 493,296 | — |
| Due to broker | — | — | — | 8,644,937 | — |
| Unrealized depreciation on OTC swap agreements and contracts for differences | — | — | — | 44,915 | — |
| Unrealized depreciation on forward foreign currency exchange contracts | — | 29,718 | 218,210 | 267,980 | — |
| Payable for: | | | | | |
| Dividends on short sales | — | — | — | 70,526 | — |
| Investments purchased on a delayed-delivery basis | — | — | 974,410 | 171,934,357 | 2,903,001 |
| Investments purchased | 8,486,836 | 625,055 | 6,561,388 | 6,787,065 | — |
| Unfunded loan commitments | — | — | 50,725 | — | — |
| Fund shares redeemed | 900,416 | 513,387 | 335,380 | 645,052 | 1,430,648 |
| Variation margin on futures contracts | — | — | 29,776 | 529,462 | — |
| Variation margin on exchange traded swap agreements | — | — | — | 307,123 | — |
| Deferred capital gains tax | — | 304,996 | 45,242 | — | — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Assets and Liabilities (continued)
| | Morningstar
U.S. Equity
Fund | Morningstar
International
Equity Fund | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Municipal
Bond Fund |
| Collateral for securities lending | 6,209,220 | 18,453,591 | 6,041,033 | 3,241,194 | — |
| Upfront premiums received from swap agreements | — | — | — | 610,453 | — |
| Accrued management fees | 868,488 | 630,643 | 73,074 | 293,724 | 140,910 |
| Accrued trustee fees | 17,708 | 9,852 | 2,735 | 8,364 | 4,251 |
| Accrued expenses | 470,261 | 417,373 | 153,948 | 435,984 | 143,404 |
| Total liabilities | 16,952,929 | 20,984,615 | 14,495,412 | 207,989,211 | 4,622,214 |
| Net assets | $1,489,898,834 | $911,919,768 | $246,959,704 | $ 829,213,658 | $381,969,822 |
| Analysis of net assets: | | | | | |
| Paid in capital | $1,253,043,517 | $934,464,186 | $253,822,471 | $ 932,083,774 | $401,809,089 |
| Distributable earnings (loss) | 236,855,317 | (22,544,418) | (6,862,767) | (102,870,116) | (19,839,267) |
| Net assets | $1,489,898,834 | $911,919,768 | $246,959,704 | $ 829,213,658 | $381,969,822 |
| Shares outstanding: | 130,389,774 | 95,293,644 | 25,150,444 | 88,032,144 | 38,423,585 |
| Net asset value, offering price and redemption price per share: | $ 11.43 | $ 9.57 | $ 9.82 | $ 9.42 | $ 9.94 |
| Investments in non-affiliates, at cost | $1,318,949,992 | $957,458,679 | $264,633,020 | $ 972,833,826 | $401,125,877 |
| Foreign currencies, at cost | $ 95,526 | $ 531,573 | $ 8,488 | $ 2,109,932 | $ — |
| Investments sold short proceeds | $ — | $ — | $ — | $ 14,978,436 | $ — |
| Written option premiums | $ — | $ — | $ 6,910 | $ 631,382 | $ — |
| *Market value of securities on loan | $ 16,463,299 | $ 18,161,183 | $ 14,167,492 | $ 10,350,363 | $ — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Assets and Liabilities (continued)
| | Morningstar
Defensive
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Assets | | | | |
| Investments in non-affiliates, at value* | $156,376,301 | $133,949,475 | $209,536,691 | $388,162,261 |
| Cash | — | — | 47,580 | 22,346,667 |
| Foreign currencies, at value | — | 465,221 | 3,809 | 820,393 |
| Due from broker | — | 70,000 | 16 | 13,569,696 |
| Receivable from Adviser | 26,534 | 29,193 | — | 33,919 |
| Receivable for: | | | | |
| Dividends and interest | 370,049 | 2,085,913 | 385,282 | 1,155,400 |
| Securities lending income | 7,968 | — | 5,647 | — |
| Foreign tax reclaims | — | 70,836 | 38,793 | 5,012 |
| Investments sold | 2,524 | 35,818,747 | 22,335,276 | 25,027,890 |
| Fund shares sold | 385,456 | 572,444 | 299,129 | 762,606 |
| Variation margin on futures contracts | — | — | — | 90,722 |
| Variation margin on exchange traded swap agreements | — | — | — | 52,749 |
| Unrealized appreciation on OTC swap agreements and contracts for differences | — | 3,816 | — | 4,467,137 |
| Unrealized appreciation on forward foreign currency exchange contracts | — | 135,886 | — | 648,282 |
| Upfront premiums paid on swap agreements | — | 2,553 | — | 145,005 |
| Prepaid expenses and other assets | 9,146 | 8,060 | 9,716 | 11,565 |
| Total assets | 157,177,978 | 173,212,144 | 232,661,939 | 457,299,304 |
| Liabilities | | | | |
| Investments sold short, at value | — | — | — | 26,849,082 |
| Written options, at value | — | — | — | 33,592 |
| Due to broker | — | 60,000 | — | 2,269,725 |
| Unrealized depreciation on OTC swap agreements and contracts for differences | — | — | — | 3,487,912 |
| Unrealized depreciation on forward foreign currency exchange contracts | — | 146,310 | — | 331,767 |
| Payable for: | | | | |
| Dividends on short sales | — | — | — | 14,459 |
| Investments purchased on a delayed-delivery basis | — | — | — | 51,646,333 |
| Investments purchased | 138,298 | 339,011 | 29,183,026 | 2,910,001 |
| Fund shares redeemed | 824,984 | 139,713 | 141,501 | 508,619 |
| Variation margin on futures contracts | — | — | — | 39,386 |
| Variation margin on exchange traded swap agreements | — | — | — | 75,852 |
| Collateral for securities lending | 12,153,261 | — | 2,912,780 | — |
| Upfront premiums received from swap agreements | — | 1,458 | — | 7,748 |
| Accrued management fees | 45,787 | 91,376 | 79,958 | 318,262 |
| Accrued trustee fees | 1,754 | 1,841 | 2,302 | 4,538 |
| Accrued expenses | 97,004 | 156,167 | 121,284 | 321,297 |
| Total liabilities | 13,261,088 | 935,876 | 32,440,851 | 88,818,573 |
| Net assets | $143,916,890 | $172,276,268 | $200,221,088 | $368,480,731 |
| Analysis of net assets: | | | | |
| Paid in capital | $151,195,180 | $199,598,746 | $199,244,272 | $376,988,576 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Assets and Liabilities (continued)
| | Morningstar
Defensive
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Distributable earnings (loss) | (7,278,290) | (27,322,478) | 976,816 | (8,507,845) |
| Net assets | $143,916,890 | $172,276,268 | $200,221,088 | $368,480,731 |
| Shares outstanding: | 14,850,783 | 19,144,089 | 20,912,978 | 36,406,187 |
| Net asset value, offering price and redemption price per share: | $ 9.69 | $ 9.00 | $ 9.57 | $ 10.12 |
| Investments in non-affiliates, at cost | $162,488,350 | $148,825,556 | $208,124,836 | $399,366,132 |
| Foreign currencies, at cost | $ — | $ 470,736 | $ 4,012 | $ 826,157 |
| Investments sold short proceeds | $ — | $ — | $ — | $ 29,693,622 |
| Written option premiums | $ — | $ — | $ — | $ 125,539 |
| *Market value of securities on loan | $ 12,598,778 | $ — | $ 3,095,967 | $ — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
| | Morningstar
U.S. Equity
Fund | Morningstar
International
Equity Fund | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Municipal
Bond Fund |
| Investment income | | | | | |
| Dividend income from non-affiliates (net of foreign withholding taxes) | $ 28,660,496 | $ 26,405,932 | $ 10,614,384 | $ 491,247 | $ 14,838 |
| Non-cash dividend income | — | 3,441,750 | — | — | — |
| Interest income (net of foreign withholding taxes) | 5,081 | — | 1,320,823 | 16,035,614 | 9,290,217 |
| Securities lending income, net | 12,945 | 4,969 | 18,957 | 4,523 | — |
| Total investment income | 28,678,522 | 29,852,651 | 11,954,164 | 16,531,384 | 9,305,055 |
| Expenses | | | | | |
| Management fees (Note 5) | 11,154,228 | 8,624,162 | 956,715 | 3,782,572 | 1,835,252 |
| Administration and custody fees | 764,783 | 807,042 | 195,260 | 887,224 | 206,515 |
| Transfer agent fees | 9,744 | 9,490 | 9,485 | 9,507 | 9,449 |
| Sub-accounting fees | 1,713,271 | 1,073,387 | 276,881 | 881,896 | 430,051 |
| Audit and tax fees | 65,426 | 105,075 | 79,497 | 81,922 | 50,609 |
| Legal fees | 166,838 | 102,689 | 27,383 | 84,253 | 41,114 |
| Trustees’ fees | 234,791 | 147,152 | 38,480 | 119,926 | 58,534 |
| Registration and filing fees | 40,734 | 40,875 | 28,129 | 40,271 | 30,143 |
| Printing and postage fees | 66,234 | 57,730 | 43,341 | 35,678 | 23,683 |
| Dividend and interest on securities sold short | — | — | — | 90,782 | — |
| Other expenses | 133,179 | 88,659 | 32,743 | 107,406 | 39,312 |
| Total expenses | 14,349,228 | 11,056,261 | 1,687,914 | 6,121,437 | 2,724,662 |
| Less waiver of management fees (Note 5) | (500,683) | (880,646) | — | (1,533,243) | (298,150) |
| Net expenses | 13,848,545 | 10,175,615 | 1,687,914 | 4,588,194 | 2,426,512 |
| Net investment income | 14,829,977 | 19,677,036 | 10,266,250 | 11,943,190 | 6,878,543 |
| Realized and unrealized gains (losses) | | | | | |
| Net realized gains (losses) on: | | | | | |
| Investments | 205,706,831 | 112,313,376 | 16,238,375 | (18,093,441) | (515,409) |
| Investments sold short | — | — | — | 125,875 | — |
| Swap agreements | — | — | — | 952,871 | — |
| Futures contracts | — | — | (40,081) | (5,152,326) | — |
| Written options contracts | — | — | 12,250 | 3,791,859 | — |
| Forward foreign currency exchange contracts | — | 226,840 | 11,987 | 155,930 | — |
| Foreign currency transactions | (462) | (228,263) | (140,446) | 6,593 | — |
| Net realized gains (losses) | 205,706,369 | 112,311,953 | 16,082,085 | (18,212,639) | (515,409) |
| Net change in unrealized appreciation (depreciation) on: | | | | | |
| Investments | (261,726,031) | (261,329,369) 1 | (41,578,446) 1 | (74,026,501) | (31,065,332) |
| Investments sold short | — | — | — | 836,715 | — |
| Swap agreements | — | — | — | (2,475,668) | — |
| Futures contracts | — | — | (142,481) | (5,116,512) | — |
| Written options contracts | — | — | (2,581) | 454,189 | — |
| Forward foreign currency exchange contracts | — | 71,249 | (126,659) | 172,092 | — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Operations (continued)
| | Morningstar
U.S. Equity
Fund | Morningstar
International
Equity Fund | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Municipal
Bond Fund |
| Foreign currency transactions | (9,661) | (159,795) | (51,042) | (42,230) | — |
| Net change in unrealized depreciation | (261,735,692) | (261,417,915) | (41,901,209) | (80,197,915) | (31,065,332) |
| Net realized and unrealized losses | (56,029,323) | (149,105,962) | (25,819,124) | (98,410,554) | (31,580,741) |
| Net decrease in net assets resulting from operations | $ (41,199,346) | $(129,428,926) | $(15,552,874) | $(86,467,364) | $(24,702,198) |
| Foreign withholding taxes on dividend income | $ 289,798 | $ 2,552,350 | $ 568,586 | $ — | $ — |
| Foreign withholding taxes on interest income | $ — | $ — | $ 6,089 | $ 10,307 | $ — |
| | |
| 1 | Net of change in deferred foreign capital gains tax expense of $295,046 and $(45,242), respectively. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Operations (continued)
| | Morningstar
Defensive
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Investment income | | | | |
| Dividend income from non-affiliates (net of foreign withholding taxes) | $ 814,350 | $ 70,933 | $ 4,434,453 | $ 1,703,673 |
| Interest income (net of foreign withholding taxes) | 3,985,858 | 11,325,345 | 1,048,191 | 4,901,698 |
| Securities lending income, net | 19,360 | — | 18,284 | — |
| Total investment income | 4,819,568 | 11,396,278 | 5,500,928 | 6,605,371 |
| Expenses | | | | |
| Management fees (Note 5) | 713,096 | 1,380,669 | 999,495 | 2,906,540 |
| Administration and custody fees | 176,830 | 222,878 | 239,805 | 869,377 |
| Transfer agent fees | 9,508 | 9,517 | 9,494 | 9,508 |
| Sub-accounting fees | 203,343 | 230,559 | 216,800 | 343,696 |
| Audit and tax fees | 51,614 | 83,903 | 51,609 | 66,303 |
| Legal fees | 19,209 | 21,997 | 21,295 | 35,291 |
| Trustees’ fees | 27,948 | 32,041 | 29,860 | 47,733 |
| Registration and filing fees | 24,747 | 28,803 | 28,885 | 36,231 |
| Printing and postage fees | 9,550 | 28,659 | 24,955 | 25,937 |
| Dividend and interest on securities sold short | — | — | — | 536,044 |
| Other expenses | 24,354 | 37,229 | 35,464 | 68,818 |
| Total expenses | 1,260,199 | 2,076,255 | 1,657,662 | 4,945,478 |
| Less waiver of management fees (Note 5) | (309,402) | (283,097) | — | (477,686) |
| Net expenses | 950,797 | 1,793,158 | 1,657,662 | 4,467,792 |
| Net investment income | 3,868,771 | 9,603,120 | 3,843,266 | 2,137,579 |
| Realized and unrealized gains (losses) | | | | |
| Net realized gains (losses) on: | | | | |
| Investments | (1,212,853) | (12,082,190) | 29,835,097 | 8,133,390 |
| Investments sold short | — | — | — | (6,494,694) |
| Swap agreements | — | (33,874) | — | 4,199,134 |
| Futures contracts | — | — | (519,214) | 715,687 |
| Written options contracts | — | — | — | 1,350,829 |
| Forward foreign currency exchange contracts | — | (322,978) | (1,595,630) | 793,915 |
| Foreign currency transactions | — | (1,641,029) | 64,359 | (153,536) |
| Net realized gains (losses) | (1,212,853) | (14,080,071) | 27,784,612 | 8,544,725 |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments | (7,597,221) | (19,853,667) | (37,239,525) | (28,426,220) |
| Investments sold short | — | — | — | 11,888,346 |
| Swap agreements | — | 33,813 | — | 1,230,992 |
| Futures contracts | — | — | (1,962) | 1,352,962 |
| Written options contracts | — | — | — | 26,047 |
| Forward foreign currency exchange contracts | — | 218,898 | (29,387) | 312,523 |
| Foreign currency transactions | — | (670) | (23,669) | (10,062) |
| Net change in unrealized depreciation | (7,597,221) | (19,601,626) | (37,294,543) | (13,625,412) |
| Net realized and unrealized losses | (8,810,074) | (33,681,697) | (9,509,931) | (5,080,687) |
| Net decrease in net assets resulting from operations | $(4,941,303) | $(24,078,577) | $ (5,666,665) | $ (2,943,108) |
| Foreign withholding taxes on dividend income | $ — | $ — | $ 160,254 | $ 27,760 |
| Foreign withholding taxes on interest income | $ — | $ 121,603 | $ 5,594 | $ — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Changes in Net Assets
| | Morningstar U.S.
Equity Fund | Morningstar International
Equity Fund |
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations: | | | | |
| Net investment income | $ 14,829,977 | $ 16,656,591 | $ 19,677,036 | $ 10,016,804 |
| Net realized gains (losses) | 205,706,369 | 135,103,754 | 112,311,953 | 41,234,098 |
| Net change in unrealized appreciation (depreciation) | (261,735,692) | 428,736,373 | (261,417,915) | 308,650,316 |
| Net increase (decrease) in net assets resulting from operations | (41,199,346) | 580,496,718 | (129,428,926) | 359,901,218 |
| Distributions paid from: | | | | |
| Distributable earnings | (238,486,043) | (30,041,957) | (142,656,979) | (26,103,149) |
| Total distributions paid | (238,486,043) | (30,041,957) | (142,656,979) | (26,103,149) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 299,271,430 | 481,776,207 | 229,896,726 | 328,847,006 |
| Reinvestment of dividends | 238,254,322 | 29,964,205 | 142,522,225 | 26,036,922 |
| Payments for shares redeemed | (470,673,065) | (538,830,029) | (262,595,654) | (378,898,826) |
| Net increase (decrease) in net assets from capital share transactions | 66,852,687 | (27,089,617) | 109,823,297 | (24,014,898) |
| Total increase (decrease) in net assets | (212,832,702) | 523,365,144 | (162,262,608) | 309,783,171 |
| Net assets: | | | | |
| Beginning of year | 1,702,731,536 | 1,179,366,392 | 1,074,182,376 | 764,399,205 |
| End of year | $1,489,898,834 | $1,702,731,536 | $ 911,919,768 | $1,074,182,376 |
| Capital share transactions | | | | |
| Shares sold | 22,447,159 | 42,040,625 | 20,049,671 | 29,632,519 |
| Shares from reinvested dividends | 18,789,082 | 2,511,783 | 13,027,211 | 2,177,756 |
| Shares redeemed | (34,767,976) | (47,916,071) | (22,201,350) | (34,631,486) |
| Net increase (decrease) | 6,468,265 | (3,363,663) | 10,875,532 | (2,821,211) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Changes in Net Assets (continued)
| | Morningstar Global
Income Fund | Morningstar Total Return
Bond Fund |
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations: | | | | |
| Net investment income | $ 10,266,250 | $ 8,403,667 | $ 11,943,190 | $ 9,074,885 |
| Net realized gains (losses) | 16,082,085 | 5,354,824 | (18,212,639) | 7,288,849 |
| Net change in unrealized appreciation (depreciation) | (41,901,209) | 44,956,324 | (80,197,915) | (3,936,470) |
| Net increase (decrease) in net assets resulting from operations | (15,552,874) | 58,714,815 | (86,467,364) | 12,427,264 |
| Distributions paid from: | | | | |
| Distributable earnings | (28,559,019) | (8,680,865) | (18,514,280) | (31,028,756) |
| Total distributions paid | (28,559,019) | (8,680,865) | (18,514,280) | (31,028,756) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 59,366,985 | 87,887,640 | 290,765,341 | 480,904,825 |
| Reinvestment of dividends | 28,522,540 | 8,662,821 | 18,411,734 | 30,798,145 |
| Payments for shares redeemed | (69,249,969) | (109,212,549) | (207,900,741) | (179,644,388) |
| Net increase (decrease) in net assets from capital share transactions | 18,639,556 | (12,662,088) | 101,276,334 | 332,058,582 |
| Total increase (decrease) in net assets | (25,472,337) | 37,371,862 | (3,705,310) | 313,457,090 |
| Net assets: | | | | |
| Beginning of year | 272,432,041 | 235,060,179 | 832,918,968 | 519,461,878 |
| End of year | $246,959,704 | $ 272,432,041 | $ 829,213,658 | $ 832,918,968 |
| Capital share transactions | | | | |
| Shares sold | 5,264,711 | 8,222,595 | 28,123,394 | 43,701,466 |
| Shares from reinvested dividends | 2,638,398 | 816,414 | 1,746,590 | 2,790,212 |
| Shares redeemed | (6,198,204) | (10,232,402) | (19,777,555) | (16,280,848) |
| Net increase (decrease) | 1,704,905 | (1,193,393) | 10,092,429 | 30,210,830 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Changes in Net Assets (continued)
| | Morningstar Municipal
Bond Fund | Morningstar Defensive
Bond Fund |
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations: | | | | |
| Net investment income | $ 6,878,543 | $ 7,274,144 | $ 3,868,771 | $ 3,937,323 |
| Net realized gains (losses) | (515,409) | 1,078,614 | (1,212,853) | 2,618,338 |
| Net change in unrealized appreciation (depreciation) | (31,065,332) | 19,775,057 | (7,597,221) | 373,772 |
| Net increase (decrease) in net assets resulting from operations | (24,702,198) | 28,127,815 | (4,941,303) | 6,929,433 |
| Distributions paid from: | | | | |
| Distributable earnings | (7,143,683) | (7,263,473) | (5,383,260) | (5,595,772) |
| Return of capital | — | — | (262,291) | — |
| Total distributions paid | (7,143,683) | (7,263,473) | (5,645,551) | (5,595,772) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 86,833,628 | 153,419,635 | 63,412,740 | 125,121,603 |
| Reinvestment of dividends | 7,143,683 | 7,261,563 | 5,587,623 | 5,533,958 |
| Payments for shares redeemed | (97,330,921) | (104,562,988) | (115,025,461) | (114,935,028) |
| Net increase (decrease) in net assets from capital share transactions | (3,353,610) | 56,118,210 | (46,025,098) | 15,720,533 |
| Total increase (decrease) in net assets | (35,199,491) | 76,982,552 | (56,611,952) | 17,054,194 |
| Net assets: | | | | |
| Beginning of year | 417,169,313 | 340,186,761 | 200,528,842 | 183,474,648 |
| End of year | $381,969,822 | $ 417,169,313 | $ 143,916,890 | $ 200,528,842 |
| Capital share transactions | | | | |
| Shares sold | 8,153,632 | 14,430,434 | 6,267,569 | 12,178,266 |
| Shares from reinvested dividends | 674,697 | 681,997 | 554,022 | 538,684 |
| Shares redeemed | (9,206,617) | (9,854,516) | (11,559,469) | (11,161,340) |
| Net increase (decrease) | (378,288) | 5,257,915 | (4,737,878) | 1,555,610 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Changes in Net Assets (continued)
| | Morningstar Multisector
Bond Fund | Morningstar Global Opportunistic
Equity Fund |
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations: | | | | |
| Net investment income | $ 9,603,120 | $ 10,776,166 | $ 3,843,266 | $ 2,246,569 |
| Net realized gains (losses) | (14,080,071) | 3,862,311 | 27,784,612 | 12,005,597 |
| Net change in unrealized appreciation (depreciation) | (19,601,626) | 19,395,976 | (37,294,543) | 35,988,388 |
| Net increase (decrease) in net assets resulting from operations | (24,078,577) | 34,034,453 | (5,666,665) | 50,240,554 |
| Distributions paid from: | | | | |
| Distributable earnings | (9,251,076) | (6,127,676) | (40,121,142) | (5,306,815) |
| Total distributions paid | (9,251,076) | (6,127,676) | (40,121,142) | (5,306,815) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 64,496,384 | 135,983,223 | 49,593,850 | 79,010,669 |
| Reinvestment of dividends | 9,216,889 | 6,107,758 | 40,116,316 | 5,297,582 |
| Payments for shares redeemed | (105,249,637) | (124,626,874) | (54,427,784) | (56,709,143) |
| Net increase (decrease) in net assets from capital share transactions | (31,536,364) | 17,464,107 | 35,282,382 | 27,599,108 |
| Total increase (decrease) in net assets | (64,866,017) | 45,370,884 | (10,505,425) | 72,532,847 |
| Net assets: | | | | |
| Beginning of year | 237,142,285 | 191,771,401 | 210,726,513 | 138,193,666 |
| End of year | $ 172,276,268 | $ 237,142,285 | $200,221,088 | $210,726,513 |
| Capital share transactions | | | | |
| Shares sold | 6,453,393 | 13,534,674 | 4,416,095 | 7,362,146 |
| Shares from reinvested dividends | 905,297 | 604,130 | 3,868,282 | 464,555 |
| Shares redeemed | (10,759,064) | (12,026,490) | (4,811,572) | (5,270,864) |
| Net increase (decrease) | (3,400,374) | 2,112,314 | 3,472,805 | 2,555,837 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Statements of Changes in Net Assets (continued)
| | Morningstar Alternatives Fund |
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations: | | |
| Net investment income | $ 2,137,579 | $ 2,714,288 |
| Net realized gains (losses) | 8,544,725 | 5,298,439 |
| Net change in unrealized appreciation (depreciation) | (13,625,412) | 11,634,444 |
| Net increase (decrease) in net assets resulting from operations | (2,943,108) | 19,647,171 |
| Distributions paid from: | | |
| Distributable earnings | (16,647,113) | (7,284,535) |
| Total distributions paid | (16,647,113) | (7,284,535) |
| Capital share transactions: | | |
| Proceeds from shares sold | 163,288,685 | 188,548,612 |
| Reinvestment of dividends | 16,584,193 | 7,253,727 |
| Payments for shares redeemed | (119,572,952) | (66,513,615) |
| Net increase (decrease) in net assets from capital share transactions | 60,299,926 | 129,288,724 |
| Total increase (decrease) in net assets | 40,709,705 | 141,651,360 |
| Net assets: | | |
| Beginning of year | 327,771,026 | 186,119,666 |
| End of year | $ 368,480,731 | $327,771,026 |
| Capital share transactions | | |
| Shares sold | 15,638,714 | 17,844,308 |
| Shares from reinvested dividends | 1,587,729 | 689,960 |
| Shares redeemed | (11,434,449) | (6,308,345) |
| Net increase (decrease) | 5,791,994 | 12,225,923 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
| Morningstar U.S. Equity Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $13.74 | $9.27 | $10.68 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.12 | 0.14 | 0.13 | 0.05 |
| Net realized and unrealized gains (losses) | (0.36) | 4.59 | (1.31) | 0.64 |
| Total income (loss) from investment operations | (0.24) | 4.73 | (1.18) | 0.69 |
| Less distributions paid: | | | | |
| From net investment income | (0.13) | (0.14) | (0.09) | (0.01) |
| From realized gains | (1.94) | (0.12) | (0.14) | — |
| Total distributions paid | (2.07) | (0.26) | (0.23) | (0.01) |
| Net asset value, end of year | $11.43 | $13.74 | $9.27 | $10.68 |
| Total return3 | (3.11%) | 51.43% | (11.42%) | 6.98% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $1,490 | $1,703 | $1,179 | $678 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements | 0.86% | 0.87% | 0.93% | 1.08% |
| Total expenses after waivers/reimbursements | 0.83% | 0.81% | 0.81% | 0.82% |
| Net investment income, net of waivers/reimbursements | 0.89% | 1.19% | 1.25% | 0.98% 6 |
| Net investment income, before waivers/reimbursements | 0.86% | 1.13% | 1.13% | 0.72% 6 |
| Portfolio turnover rate7 | 61% | 68% | 58% | 20% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 7 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar International Equity Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $12.72 | $8.76 | $10.79 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.23 | 0.12 | 0.21 | 0.08 |
| Net realized and unrealized gains (losses) | (1.66) | 4.17 | (1.94) | 0.74 |
| Total income (loss) from investment operations | (1.43) | 4.29 | (1.73) | 0.82 |
| Less distributions paid: | | | | |
| From net investment income | (0.18) | (0.14) | (0.19) | (0.03) |
| From realized gains | (1.54) | (0.19) | (0.11) | — |
| Total distributions paid | (1.72) | (0.33) | (0.30) | (0.03) |
| Net asset value, end of year | $9.57 | $12.72 | $8.76 | $10.79 |
| Total return3 | (12.77%) | 49.22% | (16.65%) | 8.19% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $912 | $1,074 | $764 | $469 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements | 1.06% | 1.08% | 1.14% | 1.29% |
| Total expenses after waivers/reimbursements | 0.98% | 0.89% | 0.92% | 0.94% |
| Net investment income, net of waivers/reimbursements | 1.89% | 1.09% | 2.08% | 1.66% 6 |
| Net investment income, before waivers/reimbursements | 1.81% | 0.90% | 1.86% | 1.31% 6 |
| Portfolio turnover rate7 | 67% | 41% | 36% | 19% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 7 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Global Income Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $11.62 | $9.54 | $10.58 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.42 | 0.35 | 0.37 | 0.16 |
| Net realized and unrealized gains (losses) | (1.03) | 2.09 | (0.94) | 0.52 |
| Total income (loss) from investment operations | (0.61) | 2.44 | (0.57) | 0.68 |
| Less distributions paid: | | | | |
| From net investment income | (0.45) | (0.35) | (0.42) | (0.10) |
| From realized gains | (0.74) | (0.01) | (0.05) | — |
| Total distributions paid | (1.19) | (0.36) | (0.47) | (0.10) |
| Net asset value, end of year | $9.82 | $11.62 | $9.54 | $10.58 |
| Total return3 | (6.00%) | 26.01% | (5.73%) | 6.85% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $247 | $272 | $235 | $186 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements | 0.62% | 0.62% | 0.64% | 0.90% |
| Total expenses after waivers/reimbursements | 0.62% | 0.61% | 0.58% | 0.58% |
| Net investment income, net of waivers/reimbursements | 3.76% | 3.28% | 3.52% | 3.15% 6 |
| Net investment income, before waivers/reimbursements | 3.76% | 3.27% | 3.46% | 2.83% 6 |
| Portfolio turnover rate7 | 138% | 59% | 62% | 27% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 7 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Total Return Bond Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $10.69 | $10.88 | $10.48 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.61 | 0.16 | 0.26 | 0.15 |
| Net realized and unrealized gains (losses) | (1.65) | 0.17 | 0.68 | 0.45 |
| Total income (loss) from investment operations | (1.04) | 0.33 | 0.94 | 0.60 |
| Less distributions paid: | | | | |
| From net investment income | (0.17) | (0.21) | (0.28) | (0.12) |
| From realized gains | (0.06) | (0.31) | (0.26) | — |
| Total distributions paid | (0.23) | (0.52) | (0.54) | (0.12) |
| Net asset value, end of year | $9.42 | $10.69 | $10.88 | $10.48 |
| Total return3 | (9.97%) | 2.95% | 9.13% | 6.01% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $829 | $833 | $519 | $415 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements6 | 0.71% | 0.74% | 0.81% | 0.88% |
| Total expenses after waivers/reimbursements6 | 0.53% | 0.53% | 0.53% | 0.53% |
| Total expenses after waivers/reimbursements and excluding dividend and interest expense | 0.52% | 0.53% | 0.53% | 0.53% |
| Net investment income, net of waivers/reimbursements | 1.39% | 1.41% | 2.43% | 2.89% 7 |
| Net investment income, before waivers/reimbursements | 1.21% | 1.20% | 2.15% | 2.54% 7 |
| Portfolio turnover rate8 | 346% | 438% | 612% | 318% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | Expenses include dividend and interest expense of 0.01% for April 30, 2022 and less than 0.01% for April 30, 2021, April 30, 2020 and April 30, 2019, respectively. |
| 7 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 8 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Municipal Bond Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $10.75 | $10.14 | $10.38 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.18 | 0.21 | 0.23 | 0.12 |
| Net realized and unrealized gains (losses) | (0.81) | 0.61 | (0.21) | 0.36 |
| Total income (loss) from investment operations | (0.63) | 0.82 | 0.02 | 0.48 |
| Less distributions paid: | | | | |
| From net investment income | (0.18) | (0.21) | (0.23) | (0.10) |
| From realized gains | — 3 | — | (0.03) | — |
| Total distributions paid | (0.18) | (0.21) | (0.26) | (0.10) |
| Net asset value, end of year | $9.94 | $10.75 | $10.14 | $10.38 |
| Total return4 | (5.93%) | 8.14% | 0.11% | 4.79% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $382 | $417 | $340 | $105 |
| Ratio to average net assets of:5, 6 | | | | |
| Total expenses before waivers/reimbursements | 0.65% | 0.66% | 0.77% | 1.05% |
| Total expenses after waivers/reimbursements | 0.58% | 0.58% | 0.58% | 0.58% |
| Net investment income, net of waivers/reimbursements | 1.65% | 1.98% | 2.17% | 2.48% 7 |
| Net investment income, before waivers/reimbursements | 1.58% | 1.90% | 1.98% | 2.01% 7 |
| Portfolio turnover rate8 | 41% | 53% | 127% | 115% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Round to less than 0.01 |
| 4 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 5 | Ratios are annualized for periods less than one year. |
| 6 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 7 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 8 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Defensive Bond Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $10.24 | $10.17 | $10.10 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.20 | 0.20 | 0.20 | 0.11 |
| Net realized and unrealized gains (losses) | (0.46) | 0.16 | 0.13 | 0.08 |
| Total income (loss) from investment operations | (0.26) | 0.36 | 0.33 | 0.19 |
| Less distributions paid: | | | | |
| From net investment income | (0.19) | (0.19) | (0.23) | (0.09) |
| From realized gains | (0.08) | (0.10) | (0.03) | — |
| Return of capital | (0.02) | — | — | — |
| Total distributions paid | (0.29) | (0.29) | (0.26) | (0.09) |
| Net asset value, end of year | $9.69 | $10.24 | $10.17 | $10.10 |
| Total return3 | (2.61%) | 3.56% | 3.36% | 1.87% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $144 | $201 | $183 | $156 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements | 0.64% | 0.64% | 0.66% | 0.93% |
| Total expenses after waivers/reimbursements | 0.48% | 0.48% | 0.48% | 0.48% |
| Net investment income, net of waivers/reimbursements | 1.96% | 1.92% | 2.02% | 2.28% 6 |
| Net investment income, before waivers/reimbursements | 1.80% | 1.76% | 1.84% | 1.83% 6 |
| Portfolio turnover rate7 | 45% | 53% | 88% | 4% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 7 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Multisector Bond Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $10.52 | $9.39 | $10.28 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.43 | 0.44 | 0.46 | 0.27 |
| Net realized and unrealized gains (losses) | (1.54) | 0.94 | (0.83) | 0.21 |
| Total income (loss) from investment operations | (1.11) | 1.38 | (0.37) | 0.48 |
| Less distributions paid: | | | | |
| From net investment income | (0.30) | (0.25) | (0.43) | (0.20) |
| From realized gains | (0.11) | — | (0.09) | — |
| Total distributions paid | (0.41) | (0.25) | (0.52) | (0.20) |
| Net asset value, end of year | $9.00 | $10.52 | $9.39 | $10.28 |
| Total return3 | (10.95%) | 14.79% | (3.97%) | 4.86% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $172 | $237 | $192 | $161 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements | 0.92% | 0.91% | 0.98% | 1.18% |
| Total expenses after waivers/reimbursements | 0.79% | 0.79% | 0.79% | 0.80% |
| Net investment income, net of waivers/reimbursements | 4.25% | 4.31% | 4.52% | 5.41% 6 |
| Net investment income, before waivers/reimbursements | 4.12% | 4.19% | 4.33% | 5.03% 6 |
| Portfolio turnover rate7 | 97% | 127% | 138% | 53% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 7 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Global Opportunistic Equity Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $12.08 | $9.28 | $10.38 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.21 | 0.14 | 0.23 | 0.12 |
| Net realized and unrealized gains (losses) | (0.43) | 2.99 | (0.91) | 0.37 |
| Total income (loss) from investment operations | (0.22) | 3.13 | (0.68) | 0.49 |
| Less distributions paid: | | | | |
| From net investment income | (0.26) | (0.23) | (0.21) | (0.11) |
| From realized gains | (2.03) | (0.10) | (0.21) | — |
| Total distributions paid | (2.29) | (0.33) | (0.42) | (0.11) |
| Net asset value, end of year | $9.57 | $12.08 | $9.28 | $10.38 |
| Total return3 | (2.77%) | 34.01% | (7.07%) | 4.97% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $200 | $211 | $138 | $56 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements | 0.78% | 0.78% | 0.94% | 1.48% |
| Total expenses after waivers/reimbursements | 0.78% | 0.74% | 0.73% | 0.64% |
| Net investment income, net of waivers/reimbursements | 1.81% | 1.28% | 2.29% | 2.38% 6 |
| Net investment income, before waivers/reimbursements | 1.81% | 1.24% | 2.08% | 1.54% 6 |
| Portfolio turnover rate7 | 96% | 52% | 66% | 76% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 7 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Financial Highlights (continued)
| Morningstar Alternatives Fund | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $10.71 | $10.12 | $10.10 | $10.00 |
| Income (loss) from investment operations: | | | | |
| Net investment income2 | 0.07 | 0.12 | 0.25 | 0.05 |
| Net realized and unrealized gains (losses) | (0.14) | 0.77 | (0.05) | 0.08 |
| Total income (loss) from investment operations | (0.07) | 0.89 | 0.20 | 0.13 |
| Less distributions paid: | | | | |
| From net investment income | (0.14) | (0.13) | (0.14) | (0.03) |
| From realized gains | (0.38) | (0.17) | (0.04) | — |
| Total distributions paid | (0.52) | (0.30) | (0.18) | (0.03) |
| Net asset value, end of year | $10.12 | $10.71 | $10.12 | $10.10 |
| Total return3 | (0.78%) | 8.92% | 1.94% | 1.26% |
| Supplemental data and ratios: | | | | |
| Net assets, end of year (millions) | $368 | $328 | $186 | $112 |
| Ratio to average net assets of:4, 5 | | | | |
| Total expenses before waivers/reimbursements6 | 1.45% | 1.68% | 1.48% | 1.91% |
| Total expenses after waivers/reimbursements6 | 1.31% | 1.26% | 1.13% | 0.96% |
| Total expenses after waivers/reimbursements and excluding dividend and interest expense | 1.15% | 1.12% | 0.87% | 0.77% |
| Net investment income, net of waivers/reimbursements | 0.63% | 1.14% | 2.45% | 1.08% 7 |
| Net investment income, before waivers/reimbursements | 0.49% | 0.72% | 2.10% | 0.13% 7 |
| Portfolio turnover rate8 | 433% | 372% | 154% | 103% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. The total return is not annualized for periods less than one year. |
| 4 | Ratios are annualized for periods less than one year. |
| 5 | Ratios do not include impact of the expenses of the underlying funds in which the fund invests. |
| 6 | Expenses include dividend and interest expense of 0.16%, 0.14%, 0.26%, and 0.19% for April 30, 2022, April 30, 2021, April 30, 2020 and April 30, 2019, respectively. |
| 7 | As the Fund commenced investment operations on November 2, 2018, annualized net investment income ratios may not be reflective of actual amounts the Fund might obtain in a full year of operation. |
| 8 | Portfolio turnover rate is not annualized for periods less than one year. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements
1. Organization
Morningstar Funds Trust (the "Trust") was organized as a Delaware statutory trust on March 1, 2017. The Trust is registered with the Securities and Exchange Commission (the “SEC”) as an open end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust has authorized capital of unlimited shares of beneficial interest at no par value, which may be issued in one or more series of the Trust.
The Trust is currently authorized to offer shares in nine separate series which commenced operations on November 2, 2018 (each a "Fund" and collectively, the "Funds"):
| Morningstar U.S. Equity Fund | Morningstar Defensive Bond Fund |
| Morningstar International Equity Fund | Morningstar Multisector Bond Fund |
| Morningstar Global Income Fund | Morningstar Global Opportunistic Equity Fund |
| Morningstar Total Return Bond Fund | Morningstar Alternatives Fund |
| Morningstar Municipal Bond Fund | |
Each Fund represents a distinct portfolio with its own investment objectives and is treated as a separate legal entity. Each Fund, except for the Morningstar Multisector Bond Fund, is classified and operates as a diversified fund under the 1940 Act. The Morningstar Multisector Bond Fund is classified as non-diversified. Morningstar Investment Management LLC (“MIM” or “Adviser”) serves as the investment adviser of each Fund.
The investment objective of each Fund is as follows:
| Fund | Investment Objective |
| Morningstar U.S. Equity Fund | Long-term capital appreciation |
| Morningstar International Equity Fund | Long-term capital appreciation |
| Morningstar Global Income Fund | Current income and long-term capital appreciation |
| Morningstar Total Return Bond Fund | Total return maximization, income generation and capital preservation |
| Morningstar Municipal Bond Fund | Income exempt from federal income taxes as well as capital preservation |
| Morningstar Defensive Bond Fund | Capital preservation |
| Morningstar Multisector Bond Fund | Total return through a combination of current income and capital appreciation |
| Morningstar Global Opportunistic Equity Fund | Long-term capital appreciation over a full market cycle |
| Morningstar Alternatives Fund | Long-term capital appreciation and low sensitivity to traditional U.S. asset classes |
On March 9, 2022, after consideration and evaluation of various factors and information, the Board of Trustees approved to change the name of the Morningstar Unconstrained Allocation Fund to the Morningstar Global Opportunistic Equity Fund. The Board of Trustees also approved an adoption of a non-fundamental policy to invest at least 80% of the Fund's assets in equity securities. Under normal market conditions, the Fund will invest significantly (e.g., at least 40% of its assets, unless market conditions are not deemed favorable, in
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
which case the Fund would invest at least 30% of its assets) in companies organized or located in multiple countries outside the United States or doing a substantial amount of business in multiple countries outside the United States. The name change and the adoption of the non-fundamental policy change became effective May 2, 2022.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
The Trust follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services-Investment Companies.
Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material.
Valuation of Investments: All securities and other investments are valued at their estimated fair value, as described in Note 4.
Cash and Foreign Currencies: Cash comprises U.S. Dollar and foreign currency deposits held at a bank(s) or custodian bank(s) which may exceed insured limits.
Due to/from Brokers: Due to/from brokers represents cash balances and securities on deposit with, or cash balances owed to, the Funds’ prime brokers and counterparties. The Funds are subject to credit risk should the prime brokers and counterparties be unable to meet their obligations to the Funds.
| | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global
Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Assets | | | | | |
| Cash collateral for derivatives | $ — | $ — | $70,000 | $— | $12,726,273 |
| Deposits with broker for futures contracts | 147,728 | 14,848,463 | — | 16 | 843,423 |
| Due from broker | $147,728 | $14,848,463 | $70,000 | $ 16 | $13,569,696 |
| | | | | | |
| Liabilities | | | | | |
| Cash collateral for derivatives | $ — | $ 8,559,367 | $60,000 | $— | $ 2,261,990 |
| Deposits with broker for futures contracts | — | 85,570 | — | — | 7,735 |
| Due to broker | $ — | $ 8,644,937 | $60,000 | $— | $ 2,269,725 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. Dollars. The Funds’ assets and liabilities in foreign currencies are translated into U.S. Dollars at the prevailing exchange rate at the valuation date. Transactions denominated in foreign currencies are translated into U.S. Dollars at the prevailing exchange rate on the date of the transaction. The Funds’ income earned and expense incurred in foreign denominated currencies are translated into U.S. Dollars at the prevailing exchange rate on the date of such activity.
The Funds do not isolate that portion of the results of operations arising from changes in the foreign exchange rates on investments and derivatives from the fluctuations that result from changes in the market prices of investments and derivatives held or sold during the year. Accordingly, such foreign currency gains (losses) are included in the reported net realized gain (loss) from transactions in investment securities and derivatives and net change in unrealized appreciation (depreciation) on investment securities and derivatives on the Statements of Operations.
Realized gains (losses) from settlement of foreign currency and foreign currency transactions reported on the Statements of Operations arise from the disposition of foreign currency and a change between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books on the transaction date and the U.S. Dollar equivalent of the amounts actually received or paid. Changes in unrealized appreciation (depreciation) on foreign currency and foreign currency translations reported on the Statements of Operations arise from changes (due to the changes in the exchange rate) in the value of foreign currency and assets and liabilities (other than investments) denominated in foreign currencies, which are held at year end.
Investment Transactions and Investment Income: Investment transactions are accounted as of trade date. Realized gains and losses on investment transactions are recorded on a specifically identified cost basis. Interest income is recorded on an accrual basis and includes the accretion of discounts and amortization of premiums using the effective yield method. In the case of the defaulted debt obligation, the accrual of interest income is halted when management becomes aware that the interest income is not collectible. Dividend income (expense) net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the ex-date dividend notification. Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable country's tax rules and rates. Other non-cash dividends are recognized as investment income at the fair value of the assets received.
Expenses: Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund generally are allocated among all Funds in the Trust in proportion to each Fund’s relative average net assets.
Federal Income Taxes: Each Fund’s policy is to comply with all sections of Subchapter M of the Internal Revenue Code of 1986, as amended ("Code"), necessary to qualify for federal income tax purposes as a regulated investment company and to distribute substantially all of its taxable income and capital gains to shareholders as required. No provision for federal income or excise taxes is thus required. Each Fund is treated as a separate entity for federal income tax purposes.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
The Funds may be subject to taxes imposed by countries on securities sold or held in certain foreign jurisdictions. Such taxes are generally based on income and/or capital gains earned or repatriated. The Funds accrue such taxes when the related income is earned. Gains realized by the Funds on the sale of securities in certain countries are subject to non-U.S. taxes. The Funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities. As of April 30, 2022, the International Equity Fund and the Global Income Fund had non-U.S. taxes accrued in the amount of $304,996 and $45,242 respectively, which are included as payable for deferred capital gains tax in the Statements of Assets and Liabilities.
Management evaluates tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The Funds are required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. The Funds have concluded that there is no tax liability/benefit resulting from uncertain income tax positions taken or expected to be taken. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will materially change in the next twelve months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. The returns of the Funds for the prior two fiscal years as well as current year are open for examination. As of April 30, 2022, the Funds had no examinations in progress.
Distributions to Shareholders: Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid as follows:
| Fund | Frequency |
| Morningstar U.S. Equity Fund | Annually |
| Morningstar International Equity Fund | Annually |
| Morningstar Global Income Fund | Monthly |
| Morningstar Total Return Bond Fund | Monthly |
| Morningstar Municipal Bond Fund | Monthly |
| Morningstar Defensive Bond Fund | Monthly |
| Morningstar Multisector Bond Fund | Monthly |
| Morningstar Global Opportunistic Equity Fund | Annually |
| Morningstar Alternatives Fund | Annually |
Distributions of net realized capital gains, if any, are declared and paid at least annually. Income and capital gain distributions will be determined in accordance with federal income tax regulations which may differ from U.S. GAAP. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes. These differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes. As a result, income dividends and capital gain distributions declared during a fiscal year may differ significantly from the net investment income (loss) and realized gain (loss) reported on the Funds’ financial statements presented under U.S. GAAP.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Indemnifications: Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business the Trust enters into contracts that provide general indemnifications to other parties.
3. Investment Types
The Funds may utilize the following types of investments described below to execute their investment strategy to the extent permitted by the Funds' investment policies.
Borrowed Bond Agreements: Repurchase agreements may be referred to as borrowed bond agreements when entered into in connection with short sales of bonds. In a borrowed bond agreement, a Fund borrows a bond from a counterparty in exchange for cash collateral. The agreement contains a commitment that the security and the cash will be returned to the counterparty and a Fund at a mutually agreed upon date. Certain agreements have no stated maturity and can be terminated by either party at any time. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between a Fund and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. A Fund may also experience delays in gaining access to the collateral.
Collateralized Bond Obligations (CBOs), Collateralized Loan Obligations (CLOs), and Other Collateralized Debt Obligations (CDOs): A CBO is a trust which is often backed by a pool of high risk, below investment grade fixed-income securities, such as high-yield bonds, privately issued mortgage-related securities, commercial mortgage-related securities, trust preferred securities, or emerging-market debt. A CLO is a trust typically backed by a pool of loans, which may include senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be below investment grade. Other CDOs are trusts backed by other types of assets. The assets backing a CBO, CLO, or CDO trust may be referred to as “the collateral.” CBOs, CLOs and other CDOs may charge management fees and administrative expenses. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. Senior tranches can often be rated investment grade. CBO, CLO or other CDO tranches can experience substantial losses due to defaults, deterioration of protecting tranches, market participants’ perception of credit risk, as well as aversion to these securities generally. The risks of an investment in a CBO, CLO or other CDO often depend on the collateral securities and the particular tranche in which a Fund invests. These securities are often privately offered and not registered under securities laws. In addition to the normal risks associated with fixed-income securities (e.g., interest-rate risk and credit risk), CBOs, CLOs and other CDOs carry additional risks including the possibility that distributions from collateral securities will not be adequate to make interest or other payments, the possibility that the quality of the collateral may decline in value or default, the risk that a Fund may invest in CBOs, CLOs or other CDOs that are subordinate to other tranches, as well as risks related to the complexity of the security and its structure.
Federal, state and local government officials and representatives as well as certain private parties have proposed actions to assist homeowners who own or occupy property subject to mortgages. Certain of those proposals involve actions that would affect the mortgages that underlie or relate to certain mortgage-related
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Notes to Financial Statements (continued)
securities, including securities or other instruments which a Fund may hold or in which they may invest. Some of those proposals include, among other things, lowering or forgiving principal balances; forbearing, lowering or eliminating interest payments; or utilizing eminent domain powers to seize mortgages, potentially for below market compensation. The prospective or actual implementation of one or more of these proposals may significantly and adversely affect the value and liquidity of securities held by a Fund and could cause the Fund’s net asset value to decline, potentially significantly. Uncertainty remains in the market concerning the resolution of these issues; the range of proposals and the potential implications of any implemented solution is impossible to predict.
Convertible Securities and Warrants: Convertible securities are securities (such as debt securities or preferred stock) that may be converted into or exchanged for a specified amount of common stock of the same or different issuer within a particular period of time at a specified price or formula. Convertible securities also include corporate bonds, notes, and preferred stock. A convertible security entitles the holder to receive interest paid or accrued on debt or dividends paid on preferred stock until the convertible stock matures or is redeemed, converted or exchanged. While no investment is without some risk, investments in convertible securities generally entail less risk than an issuer’s common stock. However, any reduction in risk depends in large measure upon the degree to which the convertible security sells above its value as a fixed-income security. In addition to the general risks associated with equity securities discussed above, the market value of convertible securities is also affected by prevailing interest rates, the credit quality of the issuer, and any call provisions. While convertible securities generally offer lower interest or dividend yields than nonconvertible debt securities of similar quality, they do enable the investor to benefit from increases in the market price of the underlying common stock.
Warrants and similar rights are instruments that give a Fund the right to purchase certain securities from an issuer at a specific price (the strike price) for a limited period of time. The strike price of warrants typically is much lower than the current market price of the underlying securities, yet they are subject to similar price fluctuations. As a result, warrants may be more volatile investments than the underlying securities and may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying securities and do not represent any rights in the assets of the issuing company. Also, the value of the warrant does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised before the expiration date. These factors can make warrants more speculative than other types of investments. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Funds' have no obligation to exercise the warrant and buy the stock.
Equity-Linked Investments: Equity-linked investments are subject to the same risks as direct investments in securities of the underlying investment. If the underlying investment decreases in value, the value of the equity-linked investment will decrease; however, the performance of such investments may not correlate exactly to the performance of the underlying investment that they seek to replicate. Equity-linked investments are also subject to counterparty risk, which is the risk that the issuer of such investment — which is different from the issuer of the underlying investment — may be unwilling or unable to fulfill its obligations. There is no guarantee that a liquid market will exist or that the counterparty or issuer of such investments will be willing to repurchase them when a Fund wishes to sell them.
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Notes to Financial Statements (continued)
Forward Commitments and Dollar Rolls: A Fund may enter into contracts to purchase mortgage securities for a fixed price at a future date beyond customary settlement time (forward commitments) if the Fund sets aside on its books liquid assets in an amount sufficient to meet the purchase price, or if the Fund enters into offsetting contracts for the forward sale of other securities it owns. In the case of to-be-announced (TBA) mortgage purchase commitments, the unit price and the estimated principal amount are established when a Fund enters into a contract, with the actual principal amount being within a specified range of the estimate. TBA mortgages shall not exceed 20% of a Fund’s net assets. For these obligations, a Fund will segregate or earmark liquid assets in an amount sufficient to cover its obligations. Forward commitments may be considered securities in themselves and involve a risk of loss if the value of the security to be purchased declines before the settlement date, which is in addition to the risk of decline in the value of a Fund’s other assets. Where such purchases are made through dealers, a Fund relies on the dealer to consummate the sale. The dealer’s failure to do so may result in the loss to a Fund of an advantageous yield or price. Although a Fund will generally enter into forward commitments with the intention of acquiring securities for its portfolio, the Fund may dispose of a commitment before settlement if a subadviser deems it appropriate to do so. A Fund may realize short-term profits or losses upon the sale of forward commitments.
A Fund may enter into TBA sale commitments to hedge its portfolio positions or to sell securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. Unsettled TBA sale commitments are valued at current market value of the underlying securities. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, a Fund realizes a gain or loss on the commitment without regard to any unrealized gain or loss on the underlying security. If a Fund delivers securities under the commitment, the Fund realizes a gain or loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.
A Fund may enter into mortgage dollar roll transactions (generally using TBAs) in which it sells a fixed-income security for delivery in the current month and simultaneously contracts to purchase similar securities (for example, same type, coupon and maturity) at an agreed upon future time. By engaging in a dollar roll transaction, a Fund foregoes principal and interest paid on the security that is sold but receives the difference between the current sales price and the forward price for the future purchase. A Fund would also be able to earn interest on the proceeds of the sale before they are reinvested. A Fund accounts for dollar rolls as purchases and sales. Dollar rolls may be used to create investment leverage and may increase a Fund’s risk and volatility.
The obligation to purchase securities on a specified future date involves the risk that the market value of the securities that a Fund is obligated to purchase may decline below the purchase price. In addition, in the event the other party to the transaction files for bankruptcy, becomes insolvent or defaults on its obligation, a Fund may be adversely affected.
Inflation-Protected Securities: A Fund may invest in U.S. Treasury Inflation Protected Securities (U.S. TIPS), which are fixed-income securities issued by the U.S. Department of Treasury, the principal amounts of which are adjusted daily based upon changes in the rate of inflation. A Fund may also invest in other inflation-protected securities issued by non-U.S. governments or by private issuers. U.S. TIPS pay interest on a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. The interest rate on these bonds is fixed at issuance, but over the life of the bond this interest may be paid on an increasing or decreasing principal value that has been adjusted for inflation.
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Notes to Financial Statements (continued)
Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed for U.S. TIPS, even during a period of deflation. However, because the principal amount of U.S. TIPS would be adjusted downward during a period of deflation, a Fund will be subject to deflation risk with respect to its investments in these securities. In addition, the current market value of the bonds is not guaranteed and will fluctuate. If a Fund purchases in the secondary market U.S. TIPS whose principal values have been adjusted upward due to inflation since issuance, a Fund may experience a loss if there is a subsequent period of deflation. A Fund may also invest in other inflation-related bonds which may or may not provide a guarantee of principal. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal amount.
The periodic adjustment of U.S. TIPS is currently tied to the Consumer Price Index for All Urban Consumers ("CPI-U"), which is calculated by the U.S. Department of Treasury. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. Inflation-protected bonds issued by a non-U.S. government are generally adjusted to reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any non-U.S. inflation index will accurately measure the real rate of inflation in the prices of goods and services. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond’s inflation measure. In addition, there can be no assurance that the rate of inflation in a non-U.S. country will be correlated to the rate of inflation in the United States.
In general, the value of inflation-protected bonds is expected to fluctuate in response to changes in real interest rates, which are in turn tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-protected bonds. In contrast, if nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-protected bonds. If inflation is lower than expected during the period a Fund holds the security, the Fund may earn less on the security than on a conventional bond. Any increase in principal value is taxable in the year the increase occurs, even though holders do not receive cash representing the increase at that time. As a result, if a Fund invests in inflation-protected securities, it could be required at times to liquidate other investments, including when it is not advantageous to do so, to satisfy its distribution requirements as a Registered Investment Company (RIC) and to eliminate any fund level income tax liability under the Code.
Distressed Companies, Loan Participations, Assignments and Unfunded Commitments: From time to time, a Fund may purchase the direct indebtedness of various companies (Indebtedness), or participation interests in Indebtedness (Participations), including Indebtedness and Participations of reorganizing companies. Indebtedness can be distinguished from traditional debt securities in that debt securities are part of a large issue of securities to the general public which is typically registered with a securities registration organization, such as the SEC, and which is held by a large group of investors. Indebtedness may not be a security, but rather, may represent a specific commercial loan or portion of a loan which has been given to a company by a financial institution such as a bank or insurance company. The company is typically obligated to repay such commercial loan over a specified time period. By purchasing the Indebtedness of companies, a Fund in effect steps into the role of the lender which made the loan to the company before its restructuring or refinancing. Indebtedness purchased by a Fund may be in the form of loans, notes or bonds.
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Notes to Financial Statements (continued)
The length of time remaining until maturity on the Indebtedness is one factor the subadvisers consider in purchasing a particular Indebtedness. Indebtedness which represents a specific Indebtedness of the company to a bank, is not considered to be a security issued by the bank selling it. A Fund may purchase loans from national and state-chartered banks as well as foreign banks, and they normally invest in the Indebtedness of a company which has the highest priority in terms of payment by the company, although on occasion lower priority Indebtedness also may be acquired.
Participations represent fractional interests in a company’s Indebtedness. The financial institutions that typically make Participations available are banks or insurance companies, governmental institutions, such as the Resolution Trust Corporation, the Federal Deposit Insurance Corporation or the Pension Benefit Guaranty Corporation, or certain organizations such as the World Bank, which are known as “supranational organizations.” Supranational organizations are entities established or financially supported by the national governments of one or more countries to promote reconstruction or development. Indebtedness and Participations may be illiquid as described below.
When a Fund purchases a loan participation, the Fund enters into a contractual relationship with the lender or a third party selling such participations (“Selling Participant”), but not the borrower. In this case, the Fund assumes the credit risk of the borrower and the Selling Participant and any other persons inter-positioned between the Fund and the borrower (“Intermediate Participants”). In contrast, when one of the Funds purchases an assignment, the contractual relationship is with the borrower and the credit risk assumed by the Fund is only with the borrower. Although certain loan participations or assignments are secured by collateral, the Fund could experience delays or limitations in realizing such collateral or have its interest subordinated to other indebtedness of the obligor.
The Funds may also enter into unfunded commitments, which are contractual obligations for future funding. These unfunded commitments represent a future obligation in full, even though a percentage of the commitment may not be utilized by the borrower. Loan commitments are made pursuant to a term loan, a revolving credit line or a combination thereof. A term loan is generally a loan in a fixed amount that borrowers repay in a scheduled series of repayments or a lump-sum payment at maturity. A revolving credit line permits borrowers to draw down, repay, and re-borrow specified amounts on demand. These types of investments may include standby financing commitments, which obligate the Fund to supply additional cash to the borrower on demand. The value of the unfunded portion of the investment is determined using a pro-rata allocation, based on its par value relative to the par value of the entire investment. The unfunded commitments are marked to market daily and any unrealized appreciation (depreciation) from unfunded commitments is reported in the Statements of Assets and Liabilities as well as the Statements of Operations in the Funds’ Financial Statements. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt of payments by the lender from the borrower. The Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Fund may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statements of Operations. In addition, loan participations and assignments are vulnerable to market conditions such that economic conditions or other events may reduce the demand for loan participations and assignments and certain loan participations and assignments which were liquid, when purchased, may become illiquid.
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Notes to Financial Statements (continued)
Potential lack of investor protections under federal and state securities laws. If a corporate loan purchased by a Fund is not considered to be a “security,” the Fund will not receive the same investor protections with respect to such investment that are available to purchasers of investments that are considered “securities” under federal and state securities laws, including any possible recourse against an underwriter.
Mortgage Dollar Rolls: A Fund may enter into mortgage dollar rolls with a bank or a broker-dealer. A mortgage dollar roll is a transaction in which a Fund sells mortgage-related securities for immediate settlement and simultaneously purchases the same type of securities for forward settlement at a discount. While a Fund begins accruing interest on the newly purchased securities from the purchase or trade date, it is able to invest the proceeds from the sale of its previously owned securities, which will be used to pay for the new securities. The use of mortgage dollar rolls is a speculative technique involving leverage and can have an economic effect similar to borrowing money for investment purposes.
Private Placement and Restricted Securities: A Fund may invest in securities that are purchased in private placements and, accordingly, are subject to restrictions on resale as a matter of contract or under federal securities laws. Private placement and restricted securities are not registered under the Securities Act of 1933 (the "Securities Act"), as amended, and may be neither listed on an exchange nor traded in other established markets. Some of these securities are new and complex, and trade only among institutions; the markets for these securities are still developing and may not function as efficiently as established markets. Because there may be relatively few potential purchasers for such investments, especially under adverse market or economic conditions or in the event of adverse changes in the financial condition of the issuer, a Fund could find it more difficult to sell such securities when a subadviser believes it advisable to do so or may be able to sell such securities only at prices lower than if such securities were more widely held, and potentially at prices lower than their fair market value. At times, it may also be more difficult to determine the fair value of such securities for purposes of computing a Fund’s net asset value.
Certain of the Funds’ investments in private placements may consist of direct investments and may include investments in smaller, less seasoned issuers, which may involve greater risks. These issuers may have limited product lines, markets or financial resources, or they may be dependent on a limited management group. In making investments in such securities, a Fund may obtain access to material non-public information, which may restrict the Fund’s ability to conduct portfolio transactions in such securities.
While such private placements may offer attractive opportunities for investment not otherwise available on the open market, the securities so purchased are often restricted securities, i.e., securities which cannot be sold to the public without registration under the Securities Act or the availability of an exemption from registration (such as Rules 144 or 144A), or which are not readily marketable because they are subject to other legal or contractual delays in or restrictions on resale.
The absence of a trading market can make it difficult to ascertain a market value for illiquid investments. Disposing of illiquid investments may involve time-consuming negotiation and legal expenses, and it may be difficult or impossible for a Fund to sell them promptly at an acceptable price. A Fund may have to bear the extra expense of registering such securities for resale and the risk of substantial delay in effecting such registration. In addition, market quotations are less readily available. The judgment of a subadviser may at times play a greater role in valuing these securities than in the case of publicly traded securities.
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Notes to Financial Statements (continued)
Generally speaking, restricted securities may be sold only to qualified institutional buyers, or in a privately negotiated transaction to a limited number of purchasers, or in limited quantities after they have been held for a specified period of time and other conditions are met pursuant to an exemption from registration, or in a public offering for which a registration statement is in effect under the Securities Act. Issuers whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements that may be applicable if their securities were registered or publicly traded.
From time to time, a restricted security may be registered for resale. A considerable time period may elapse between the time a Fund decides to sell the security and the time it is actually permitted to sell the security freely under an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might obtain less favorable pricing terms than when it decided to sell the security. Transactions in restricted securities may entail other transaction costs that are higher than those for transactions in unrestricted securities.
When selling restricted securities to the public, a Fund may be deemed to be an underwriter for purposes of the Securities Act, and in such event the Fund may be liable to purchasers of such securities if the registration statement prepared by the issuer, or the Prospectuses forming a part of it, is materially inaccurate or misleading.
Restricted securities held by each Fund at April 30, 2022 are disclosed in the Schedules of Investments.
Securities Sold Short: Certain Funds may sell securities they do not own (a short sale) as a hedge against some of their long positions and/or in anticipation of a decline in the market value of that security. When a Fund makes a short sale, it must borrow the security sold short and deliver it to the broker through which it made the short sale. A Fund may have to pay a fee to borrow the particular security and may be obligated to remit any interest or dividends received on such borrowed securities. Dividends declared on short positions are recorded on the ex-date as an expense. A gain, limited to the price at which the Fund sold the security short, or a loss, which could be unlimited in magnitude, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than, respectively, the proceeds originally received. The Fund is also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price. A Fund is also subject to risk of loss if the broker were to fail to perform its obligations under the contractual terms. Liabilities for securities sold short are reported at market value on the Statements of Assets and Liabilities and the change in market value is recorded as net change in unrealized appreciation (depreciation) on the Statements of Operations.
The Funds are required to pledge cash or liquid securities to the broker as collateral for securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Daily market fluctuations and trading activity could cause the value of securities sold short to be more or less than the value of the collateral segregated. Cash deposited with the broker for collateral for securities sold short is recorded as an asset on the Statements of Assets and Liabilities and securities segregated as collateral are denoted in the Schedules of Investments. The Funds may receive or pay the net of the following amounts: (i) a portion of the income from the investment of cash collateral; (ii) the broker’s fee on the borrowed securities; and
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
(iii) a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. This income or fee is calculated daily based upon the market value of each borrowed security and a variable rate that is dependent on the availability of the security.
Special Purpose Acquisition Companies (SPACs): The Morningstar Alternatives Fund may invest in the common stock of and other interests (e.g., warrants and rights) in special purpose acquisition companies or similar special purpose entities (collectively, “SPACs”). A SPAC is a special purpose vehicle that seeks to identify and effect an acquisition of, or merger with, an operating company in a particular industry or sector. SPACs typically issue public shares and warrants or rights pursuant to an initial public offering, and also typically issue “founders” shares and warrants or rights to the SPAC sponsor. During the period when management of the SPAC seeks to identify a potential acquisition or merger target, typically most of the capital raised for that purpose (less a portion retained to cover expenses) is invested in income-producing investments. The Morningstar Alternatives Fund may invest in SPACs for a variety of investment purposes, including to achieve income. These investments may include investments in the public shares, warrants or rights issued directly with a SPAC or may include founder’s shares, warrants or rights, either directly or indirectly through shares of a holding company. Some SPACs provide the opportunity for public common shareholders to have some or all of their shares redeemed by the SPAC at or around the time a proposed merger or acquisition is expected to occur. If not subject to a restriction on resale, the Fund may sell its investments in SPACs at any time, including before, at or after the time of a merger or acquisition. The Morningstar Alternatives Fund may invest in certain SPAC founder investments where the SPAC securities or the securities of a holding company owning SPAC securities will not be registered under the Securities Act, as amended and/or no public market may exist for such securities. Such investments involve a high degree of risk which could cause the Fund to lose all or part of its investment. The restrictions on resale of certain unregistered SPAC investments may be for an extended time (e.g., two to three years). The Morningstar Alternatives Fund does not presently intend to invest more than 5% of its net assets in unregistered SPACs at time of purchase, but reserves the right to increase that amount in appropriate situations.
Because SPACs and similar entities have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter market, may be considered illiquid and/or may be subject to restrictions on resale. An investment in a SPAC is subject to a variety of risks, including that (i) a significant portion of the monies raised by the SPAC for the purpose of identifying and effecting an acquisition or merger may be expended during the search for a target transaction; (ii) an attractive acquisition or merger target may not be identified at all and the SPAC will be required to return any remaining monies to shareholders; (iii) any proposed merger or acquisition may be unable to obtain the requisite approval, if any, of SPAC shareholders; (iv) an acquisition or merger once effected may prove unsuccessful and an investment in the SPAC may lose value; (v) the warrants or other rights with respect to the SPAC held by the Fund may expire worthless or may be repurchased or retired by the SPAC at an unfavorable price; (vi) the Fund will be delayed in receiving any redemption or liquidation proceeds from a SPAC to which it is entitled; (vii) an investment in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC; (viii) no or only a thinly traded market for shares of or interests in a SPAC may develop, leaving the Fund unable to sell its interest in a SPAC or to sell its interest only at a price below what
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Notes to Financial Statements (continued)
the Fund believes is the SPAC interest’s intrinsic value; and (ix) founders shares, warrants or rights are subject to a greater risk of loss than public securities issued by a SPAC, and (x) the values of investments in SPACs may be highly volatile and may depreciate significantly over time. As of April 30, 2022, there were no SPACs held by the Funds.
Zero Coupon and Payment In-Kind Bonds: A Fund may invest without limit in so-called zero-coupon bonds and payment-in-kind bonds. Zero-coupon bonds are issued at a significant discount from their principal amount in lieu of paying interest periodically. Payment-in-kind bonds allow the issuer, at its option, to make current interest payments on the bonds either in cash or in additional bonds. Because zero-coupon and payment-in-kind bonds do not pay current interest in cash, their value is subject to greater fluctuation in response to changes in market interest rates than bonds that pay interest currently. Both zero-coupon and payment-in-kind bonds allow an issuer to avoid the need to generate cash to meet current interest payments. Accordingly, such bonds may involve greater credit risks than bonds paying interest currently in cash. A Fund is required to accrue interest income on such investments and to distribute such amounts at least annually to shareholders even though the investments do not make any current interest payments. Thus, it may be necessary at times for the Fund to liquidate other investments to satisfy its distribution requirements under the Code. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment, if any, from the unrealized appreciation (depreciation) on investments to interest receivable on the Statements of Assets and Liabilities.
4. Investment Valuation and Fair Value Measurements
Investment Valuation Policies: The NAV of the Funds’ shares are valued as of the close of regular trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m. Eastern time) on each day that the NYSE is open (each a “Business Day”). The NAV per share of each Fund is computed by dividing the total current value of the assets of such Fund, less liabilities, by the total number of shares of the Fund outstanding at the time the computation is made.
Generally, investments for which market quotations are readily available will be valued at a current market price or, in the absence of a market price, at fair value as determined in good faith by MIM’s Pricing Committee pursuant to procedures approved by or under the direction of the Board of Trustees ("the Board") of the Trust. Pursuant to those procedures, the Pricing Committee considers, among other things: (1) the last sales price on the securities exchange, if any, on which a security is primarily traded; (2) the mean between the bid and asked prices; (3) price quotations from an approved pricing service, and (4) other factors as necessary to determine a fair value under certain circumstances.
Securities primarily traded in the NASDAQ Global Market® for which market quotations are readily available shall be valued using the NASDAQ® Official Closing Price ("NOCP"). If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Over the Counter ("OTC") securities which are not traded in the NASDAQ Global Market® shall be valued at the most recent trade price. Securities and assets for which market quotations are not readily available (including restricted securities which are subject to limitations as to their sale) are valued at fair value as determined in good faith under procedures approved by or under the direction of the Board.
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Notes to Financial Statements (continued)
Short-term debt obligations with remaining maturities in excess of 60 days are valued at current market prices, as discussed above. To reflect their fair value, short-term securities with 60 days or less remaining to maturity may, unless conditions indicate otherwise, utilize amortized cost to maturity based on their cost to a Fund.
The securities in a Fund, which are traded on a securities exchange are valued at the last sale price on the exchange on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any reported sales, at the mean between the last available bid and asked price. Securities that are traded on more than one exchange are valued on the exchange on which the security is principally traded.
Each Fund may invest in foreign securities, and as a result, the calculation of the Fund’s NAV may not take place contemporaneously with the determination of the prices of certain of the Fund securities used in the calculation. Occasionally, events which affect the values of such securities and such exchange rates may occur between the times at which they are determined and the close of the NYSE and will therefore not be reflected in the computation of a Fund’s NAV. If events materially affecting the value of such securities occur during such period, then these securities may be valued at their fair value as determined in good faith under procedures established by and under the supervision of the Board as described above. Portfolio securities that are traded both on an exchange and in the OTC market will be valued according to the broadest and most representative market. All assets and liabilities initially expressed in foreign currency values will be converted into U.S. Dollar values at the mean between the bid and offered quotations of the currencies against U.S. Dollars as last quoted by any recognized dealer. When portfolio securities are traded, the valuation will be the last reported sale price on the day of valuation.
To address this issue, the Board has approved the daily use of independently provided quantitative models that may adjust the closing prices of certain foreign equity and fixed income securities based on information that becomes available after the foreign market closes, through the application of an adjustment factor to such securities’ closing price. Adjustment factors may be greater than, less than, or equal to 1. Thus, use of these quantitative models could cause a Fund to value a security higher, lower or equal to its closing market price, which in turn could cause the Fund’s NAV per share to differ from that which would have been calculated using closing market prices. The use of these quantitative models is also intended to decrease the opportunities for persons to engage in ‘‘time zone arbitrage,’’ i.e., trading intended to take advantage of stale closing prices in foreign markets that could affect the NAV of the Funds. Securities subjected to an adjustment factor due to the use of these quantitative models are not specifically designated as such on the Funds’ Schedule of Investments.
All other assets of a Fund are valued in such manner as the Board in good faith deems appropriate to reflect their fair value. U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.
Valuation Techniques: The following inputs and techniques may be used by the Funds to evaluate how to classify each major category of assets and liabilities into the appropriate fair value hierarchy in accordance with U.S. GAAP.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Equity securities, including securities sold short, rights, exchange traded options, warrants, exchange traded funds (“ETFs”) and closed-end investment companies, are valued at the last quoted sales prices or official closing prices taken from the primary market, or composite in which each security trades.
An equity for which no sales are reported, as in the case of a security that is traded in the OTC market or a less liquid listed equity, is valued at its last bid price (in the case of short sales, at the asked price).
Fixed income securities (other than certain short-term investments maturing in 60 days or less) and other investments that trade in markets that are not considered to be active, are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs. These include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds and less liquid listed equities. Corporate and sovereign bonds and other fixed-income instruments are valued at estimated fair value using the latest bid prices or evaluated quotes furnished by independent pricing services, as well as quotations from counterparties and other market participants. Evaluated quotes are based on a matrix system, which may consider such factors as quoted prices for identical or similar assets, yields, maturities and ratings and are not necessarily reliant on quoted prices. Short-term debt investments of sufficient credit quality maturing in 60 days or less are generally valued at amortized cost, which approximates fair value.
Investments classified within Level 3, if any, have significant unobservable inputs, as they trade infrequently or not at all. Level 3 instruments may include illiquid securities. When observable prices are not available for these securities, the Funds may use one or more valuation approaches (e.g., the market approach or the income approach), including proprietary models for which sufficient and reliable data is available. Within Level 3, the market approach generally is based on the technique of using comparable market transactions/multiples, while the use of the income approach includes the estimation of future cash flows discounted to calculate fair value. Discounts may also be applied due to the nature or durations of any restrictions on the disposition of the investment or adjusted as appropriate for credit, market and/or other risk factors.
The inputs used by the Funds in estimating the value of Level 3 investments may include the original transaction price, recent transactions in the same or similar instruments, completed or pending third party transactions in the underlying investment or comparable issuers, third party broker quotes, deal terms, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt capital markets, changes in financial ratios or cash flows, benchmark yield curves, credit spreads, estimated default rates, underlying collateral, and other unique security features. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by MIM in the absence of market information. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the fair value of the investment.
Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within Level 1 or Level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. Futures and option contracts that are listed on national exchanges and are freely transferable are valued at fair value based on their last sales price on the date of determination on the exchange their constitutes the principal market or, if no sales occurred on such date, at the bid price on such exchange at
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
the close of business on such date. Centrally cleared swaps listed or traded on a multilateral trade facility platform, such as a registered exchange, are valued on a daily basis using quotations provided by an independent pricing service.
Forward contracts are typically classified within Level 2 of the fair value hierarchy.
OTC derivatives, including options on forward contracts, put and call options, contracts for differences and swap contracts, are valued by the Funds on a daily basis using observable inputs, such as quotations provided by an independent pricing service, the counterparty, dealers or brokers, whenever available and considered reliable.
The U.S. Dollar value of forward foreign currency exchange contracts is determined using current forward currency exchange rates supplied by an independent pricing service.
Shares of open end investment companies, other than exchange-traded funds, are valued at their NAV.
Fair Valuation Hierarchy: Fair value is defined by U.S. GAAP as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a framework and requires disclosure of a fair value hierarchy, separately for each major category of assets and liabilities that segregates fair value measurements into levels (Levels 1, 2, and 3). Categorizations of fair value measurements, and the criteria used to determine each categorization, are as follows:
• Level 1 – quoted prices in active markets for identical assets and liabilities (e.g. equity securities and open end investment companies)
• Level 2 – prices determined using other significant observable inputs including, but not limited to, quoted prices for similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, prepayment speeds, credit risk, etc.) or other market corroborated inputs
• Level 3 – prices determined using significant unobservable inputs (including the Pricing Committee’s own assumptions in determining the fair value of investments)
Valuation levels are not necessarily an indication of the risk associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. Transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the end of the reporting period.
A valuation hierarchy including information regarding Level 3 securities, where applicable, is shown at the end of each Fund’s Schedule of Investments.
The Pricing Committee determined that based on their analysis of the market and access to market participants, the Russian equity securities held by the Funds had little or no value at April 30, 2022. Refer to Market Risk in Note 10.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
5. Investment Advisory and Other Agreements
The Trust has an Investment Advisory Agreement (the “Agreement”) with the Adviser, with whom certain officers and trustees of the Trust are affiliated, to furnish certain portfolio management services to the Funds.
Pursuant to the Agreement, the Funds have contractually agreed to pay the Adviser a management fee calculated on the average daily net assets for each Fund, in the annual ratios below.
| Fund | Ratio |
| Morningstar U.S. Equity Fund | 0.67% |
| Morningstar International Equity Fund | 0.83% |
| Morningstar Global Income Fund | 0.35% |
| Morningstar Total Return Bond Fund | 0.44% |
| Morningstar Municipal Bond Fund | 0.44% |
| Morningstar Defensive Bond Fund | 0.36% |
| Morningstar Multisector Bond Fund | 0.61% |
| Morningstar Global Opportunistic Equity Fund | 0.47% |
| Morningstar Alternatives Fund | 0.85% |
Pursuant to the Agreement, the Adviser is responsible for performing and overseeing portfolio management services to the Funds. In addition to selecting the overall investment strategies of the Funds, the Adviser oversees and monitors the selection and performance of the subadvisers and allocates assets among the subadvisers. The subadvisers manage each Fund’s investment portfolio pursuant to subadvisory agreements with the Adviser. The Adviser manages a portion of each Fund which may include equities, ETFs, mutual funds and money market fund investments.
The Trust and the Adviser have entered into a contractual expense limitation agreement (Base Expense Limitation Agreement) whereby the Adviser agreed to waive all or a portion of its fees or assume certain other expenses of each Fund at least through August 31, 2022, to the extent necessary to ensure that the total annual fund operating expenses (excluding taxes, interest, brokerage commissions, trading costs, acquired fund fees and expenses, short sale dividend and interest expenses, litigation expenses, and extraordinary expenses) do not exceed the following rates, based on each Fund’s average daily net assets. The amount the Adviser owes a Fund as of the reporting date is recorded as a Receivable from Adviser in the Statements of Assets and Liabilities. The Adviser reimburses the Funds on a monthly basis. This management fee waiver and/or expense reimbursement will not be subject to future recoupment. For the year ended April 30, 2022, the Funds’ Adviser waived fees and/or reimbursed expenses pursuant to the Base Expense Limitation Agreement for each of the Funds as follows:
| Fund | Base Expense Cap | Management Fees Waived |
| Morningstar U.S. Equity Fund | 0.85% | $198,369 |
| Morningstar International Equity Fund | 1.00% | 665,693 |
| Morningstar Global Income Fund | 0.89% | — |
| Morningstar Total Return Bond Fund | 0.53% | 1,471,214 |
| Morningstar Municipal Bond Fund | 0.59% | 263,757 |
| Morningstar Defensive Bond Fund | 0.48% | 309,402 |
| Morningstar Multisector Bond Fund | 0.80% | 265,538 |
| Morningstar Global Opportunistic Equity Fund | 1.00% | — |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| Fund | Base Expense Cap | Management Fees Waived |
| Morningstar Alternatives Fund | 1.29% | $— |
The Trust and the Adviser have entered into a supplemental expense limitation agreement (Supplemental Expense Limitation Agreement) whereby the Adviser has agreed to waive all or a portion of its fees or assume certain other expenses of each Fund at least through August 31, 2022, to the extent necessary to ensure that the total annual fund operating expenses (excluding the above listed expenses other than acquired fund fees and expenses) do not exceed the following rates, based on each Fund’s average daily net assets. The amount the Adviser owes a Fund as of the reporting date is recorded as a Receivable from Adviser in the Statement of Assets and Liabilities. The Adviser reimburses the Funds on a monthly basis. This management fee waiver and/or expense reimbursement will not be subject to future recoupment. For the year ended April 30, 2022, after taking fees waived and/or expenses reimbursed pursuant to the Base Expense Limitation Agreement into account, the Funds’ Adviser further waived fees and/or reimbursed expenses pursuant to the Supplemental Expense Limitation Agreement for each of the Funds as follows:
| Fund | Supplemental Expense Cap | Management Fees Waived |
| Morningstar U.S. Equity Fund | 0.85% | $302,314 |
| Morningstar International Equity Fund | 1.00% | 214,953 |
| Morningstar Global Income Fund | 0.75% | — |
| Morningstar Total Return Bond Fund | 0.54% | 62,029 |
| Morningstar Municipal Bond Fund | 0.59% | 34,393 |
| Morningstar Defensive Bond Fund | 0.55% | — |
| Morningstar Multisector Bond Fund | 0.80% | 17,559 |
| Morningstar Global Opportunistic Equity Fund | 0.93% | — |
| Morningstar Alternatives Fund | 1.20% | 477,686 |
As of April 30, 2022, the Trust has entered into subadvisory agreements with the following entities by Fund:
| Fund | Subadvisers |
| Morningstar U.S. Equity Fund | ClearBridge Investments, LLC
Diamond Hill Capital Management, Inc.
Easterly Investment Partners LLC (formerly Levin Easterly Partners LLC)
Massachusetts Financial Services Company, d/b/a MFS Investment Management
Wasatch Advisors, Inc., d/b/a Wasatch Global Investors
Westwood Management Corp. |
| Morningstar International Equity Fund | Harding Loevner, L.P.
Harris Associates, L.P.
Lazard Asset Management LLC
T. Rowe Price Associates, Inc. |
| Morningstar Global Income Fund | Cullen Capital Management, LLC
Western Asset Management Company, LLC(1) |
| Morningstar Total Return Bond Fund | BlackRock Financial Management, Inc.
Western Asset Management Company, LLC |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| Fund | Subadvisers |
| Morningstar Municipal Bond Fund | T. Rowe Price Associates, Inc.
Allspring Global Investments, LLC(2) |
| Morningstar Defensive Bond Fund | First Pacific Advisors, LP |
| Morningstar Multisector Bond Fund(3) | Franklin Advisers, Inc.(4)
Loomis, Sayles & Company, L.P.
TCW Investment Management Company LLC |
| Morningstar Global Opportunistic Equity Fund | Brandywine Global Investment Management, LLC(4)
Lazard Asset Management LLC |
| Morningstar Alternatives Fund | BlackRock Financial Management, Inc.
SSI Investment Management LLC
Water Island Capital, LLC |
| (1) | On December 15, 2021, after consideration and evaluation of various factors and information, the Board of Trustees approved the terms of a subadvisory agreement between Western Asset Management Company, LLC ("Western"), the Adviser, and the Trust on behalf of the Morningstar Global Income Fund dated January 1, 2022, pursuant to which Western commenced serving as a subadviser to the Fund effective February 25, 2022. |
| (2) | Formerly Wells Capital Management, Inc. and rebranded as of November 1, 2021. |
| (3) | On March 9, 2022, after consideration and evaluation of various factors and information, the Board of Trustees approved the terms of a subadvisory agreement between Voya Investment Management Company, LLC, the Adviser, and the Trust on behalf of the Morningstar Multisector Bond Fund dated April 1, 2022 pursuant to which Voya will commence serving as a subadviser to the Fund effective May 2, 2022. |
| (4) | On March 9, 2022, after consideration and evaluation of various factors and information, the Board of Trustees approved the termination with and the services of Brandywine Global Investment Management, LLC as subadviser for the Morningstar Global Opportunistic Equity Fund and the termination with and the services of Franklin Advisers, Inc. as subadviser for the Morningstar Multisector Bond Fund effective May 1, 2022. |
Pursuant to the subadvisory agreements between the subadvisers, the Adviser and the Trust, the Adviser will pay the subadvisers out of the management fees from the Funds.
The Trust has an administration agreement with The Northern Trust Company (“Northern Trust”), which provides certain accounting, clerical and bookkeeping services, Blue Sky, corporate secretarial services and assistance in the preparation and filing of tax returns and reports to shareholders and the SEC. Northern Trust also serves as custodian of each Fund’s securities and cash, transfer agent and dividend disbursing agent.
Foreside Fund Services, LLC (the “Distributor”), a registered broker-dealer and member of the Financial Industry Regulatory Authority, Inc. (“FINRA”), serves as the principal underwriter and distributor of the Trust’s shares. Foreside Management Services, LLC (“FMS”) provides a Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its funds.
The Trust, on behalf of the Funds, has agreements with various financial intermediaries and “mutual fund supermarkets”, under which customers of these intermediaries may purchase and hold Fund shares. These intermediaries assess asset-based fees in consideration for providing certain account maintenance, record keeping and transactional and other shareholder services (collectively, “Sub-accounting fees”).
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
6. Investment Transactions
During the year ended April 30, 2022, the cost of purchases and the proceeds from sales of investments (excluding in-kind transactions, swap contracts, contracts for difference, forward foreign currency exchange contracts, futures contracts and short-term investments) were as follows:
| | Purchases | Sales | | |
| Fund | U.S. Government | Other | U.S. Government | Other | Securities
Sold Short | Covers on
Securities
Sold Short |
| Morningstar U.S. Equity Fund | $ — | $ 994,565,233 | $ — | $1,160,547,731 | $ — | $ — |
| Morningstar International Equity Fund | — | 677,293,132 | — | 700,457,464 | — | — |
| Morningstar Global Income Fund | 41,257,633 | 322,083,121 | 28,545,891 | 340,776,968 | — | — |
| Morningstar Total Return Bond Fund | 218,228,703 | 2,845,840,346 | 153,368,104 | 2,762,444,569 | 231,875,294 | 239,785,472 |
| Morningstar Municipal Bond Fund | — | 161,955,946 | — | 161,982,276 | — | — |
| Morningstar Defensive Bond Fund | — | 80,837,028 | — | 120,965,143 | — | — |
| Morningstar Multisector Bond Fund | 2,337,630 | 188,557,463 | 781,113 | 243,390,973 | — | — |
| Morningstar Global Opportunistic Equity Fund | 6,186,961 | 185,991,706 | 18,914,848 | 188,638,951 | — | — |
| Morningstar Alternatives Fund | — | 1,724,464,850 | — | 1,629,075,076 | 281,829,251 | 310,541,679 |
| | | | | | | |
7. Securities Lending
On December 15, 2021, the Board of Trustees approved the participation for the Morningstar Defensive Bond Fund, Morningstar Global Income Fund, Morningstar International Equity Fund, Morningstar Total Return Bond Fund, Morningstar U.S. Equity Fund, and Morningstar Global Opportunistic Equity Fund in a securities lending program. Under the securities lending program, The Northern Trust Company serves as the Securities Lending Agent (or "Agent") pursuant to a Securities Lending Authorization Agreement (the “Securities Lending Agreement”). The Securities Lending Agent provided the following services for the Funds listed above in connection with securities lending activities: (i) entering into loans with approved entities subject to guidelines or restrictions contained in the Securities Lending Agreement; (ii) selecting securities to be loaned pursuant to the Securities Lending Agent’s impartial sequencing; (iii) reviewing creditworthiness of securities lending counterparties; (iv) receiving and holding collateral from borrowers, and facilitating the investment and reinvestment of cash collateral; (v) each business day, monitoring the value of the loaned securities and
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
collateral, including receiving and delivering additional collateral as necessary from/to borrowers; (vi) negotiating loan terms; (vii) recordkeeping and account servicing; (viii) monitoring dividend/distribution activity relating to loaned securities; and (ix) arranging for return of loaned securities to the Funds at loan termination.
Each Fund will limit lending to be less than one third of the value of its total assets. The Funds’ securities held at the Securities Lending Agent as custodian shall be available to be lent except those securities the Funds specifically identify in writing as not being available for lending. The borrower pledges and maintains with each Fund collateral consisting of cash and securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The initial collateral received by each Fund is required to have a value of no less than 102% of the market value of the loaned securities for U.S. securities and a value of no less than 105% of the market value for non-U.S. securities. The collateral is maintained thereafter, at a market value equal to not less than 102% of the current value of the U.S. securities on loan and not less than 105% of the current value of the non-U.S. securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to each Fund on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the customary time period for settlement of securities transactions.
Cash collateral received is invested in a money market fund managed by Northern Trust Investments, Inc., an indirect subsidiary of Northern Trust Corporation as disclosed in each Fund’s Schedule of Investments and reflected in the Statements of Assets and Liabilities as a payable for collateral upon return of securities loaned. The remaining contractual maturity of securities lending transactions with cash collateral is overnight and continuous. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is held by the Securities Lending Agent on behalf of each Fund, and each Fund does not have the ability to re-hypothecate these securities. Each Fund receives compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower and reasonable administrative and custody fees paid to the lending agent. Such compensation is accrued daily and payable to the Fund monthly. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. The borrower pays to the Funds an amount equal to any dividends or interest received on loaned securities. These payments from the borrower are not eligible for reduced tax rates as "qualified dividend income" under the Jobs and Growth Tax Reconciliation Act of 2003. The securities lending income earned by the Funds is disclosed on the Statement of Operations.
The following is a summary of the Funds' securities on loan and related cash and non-cash collateral received as of April 30, 2022:
| Fund | Market Value
of Securities
on Loan | Cash Collateral
Received | Non-Cash
Collateral
Received* | Total Collateral
Received |
| Morningstar U.S. Equity Fund | $ 16,463,299 | $ 6,209,220 | $ 11,090,388 | $ 17,299,608 |
| Morningstar International Equity Fund | 18,161,183 | 18,453,591 | 388,026 | 18,841,617 |
| Morningstar Global Income Fund | 14,167,492 | 6,041,033 | 8,633,392 | 14,674,425 |
| Morningstar Total Return Bond Fund | 10,350,363 | 3,241,194 | 7,382,815 | 10,624,009 |
| Morningstar Defensive Bond Fund | 12,598,778 | 12,153,261 | 759,547 | 12,912,808 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| Fund | Market Value
of Securities
on Loan | Cash Collateral
Received | Non-Cash
Collateral
Received* | Total Collateral
Received |
| Morningstar Global Opportunistic Equity Fund | $3,095,967 | $2,912,780 | $405,018 | $3,317,798 |
| | | | | |
| | | | | |
| *Remaining contractual maturity of securities lending transactions with non-cash collateral | | |
| Fund | Up to 30 Days | 30-90 Days | Over 90 Days | Total Non-Cash
Collateral Received |
| Morningstar U.S. Equity Fund | $ 129,696 | $ 381,002 | $ 10,579,690 | $ 11,090,388 |
| Morningstar International Equity Fund | 97 | 9,190 | 378,739 | 388,026 |
| Morningstar Global Income Fund | - | 19,014 | 8,614,378 | 8,633,392 |
| Morningstar Total Return Bond Fund | - | 341 | 7,382,474 | 7,382,815 |
| Morningstar Defensive Bond Fund | 732 | 3,693 | 755,122 | 759,547 |
| Morningstar Global Opportunistic Equity Fund | - | 7,039 | 397,979 | 405,018 |
| | | | | |
| | | | | |
Securities lending involves two primary risks: “investment risk” and “borrower default risk.” Investment risk is the risk that a Fund will lose money from the investment of the cash collateral received from the borrower. Borrower default risk is the risk that a Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner. There also may be risks of delay in receiving additional collateral, in recovering the securities loaned, or a loss of rights in the collateral should the borrower of the securities fail financially. In the event a Fund is unsuccessful in seeking to enforce the contractual obligation to deliver additional collateral, then the Fund could suffer a loss. To mitigate borrower default risk, the Funds benefit from a borrower default indemnity provided by the Securities Lending Agent. The Securities Lending Agent’s indemnity allows for full replacement of securities lent wherein the Agent will purchase the unreturned loaned securities on the open market applying the proceeds of the collateral, or to the extent such proceeds are insufficient or the collateral is unavailable, the Securities Lending Agent will purchase the unreturned loan securities at the Agent’s expense. However, the Funds could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.
Due to the absence of a master netting agreement related to the Funds' participation in securities lending, no offsetting disclosure has been made on behalf of the Funds.
8. Financial Derivative Instruments
Certain Funds may invest in derivatives as part of their principal investment strategies in an attempt to achieve their investment objective. The Funds’ derivative contracts are not accounted for as hedging instruments under U.S. GAAP. For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements or similar agreements on the Statements of Assets and Liabilities.
Forward Foreign Currency Contracts: A forward foreign currency contract is an obligation to purchase or sell a specific non-U.S. currency in exchange for another currency, which may be U.S. dollars, at an agreed exchange rate (price) at a future date. Currency forwards are typically individually negotiated and privately traded by currency traders and their customers in the interbank market. A forward foreign currency contract will
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
tend to reduce or eliminate exposure to the currency that is sold, and increase exposure to the currency that is purchased, similar to when a Fund sells a security denominated in one currency and purchases a security denominated in another currency.
At the maturity of a forward foreign currency contract, a Fund may either exchange the currencies specified at the maturity of a forward foreign currency contract or, prior to maturity, the Fund may enter into a closing transaction involving the purchase or sale of an offsetting contract. Closing transactions with respect to forward foreign currency contract are usually effected with the counterparty to the original forward contract. A Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies but instead provide for settlement by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
Under definitions adopted by the Commodity Futures Trading Commission (CFTC) and SEC, non-deliverable forwards are considered swaps, and therefore are included in the definition of “commodity interests.” Although non-deliverable forwards have historically been traded in the OTC market, as swaps they may in the future be required to be centrally cleared and traded on public facilities. Forward foreign currency contracts that qualify as deliverable forwards are not regulated as swaps for most purposes, and are not included in the definition of “commodity interests.” However these forwards are subject to some requirements applicable to swaps, including reporting to swap data repositories, documentation requirements, and business conduct rules applicable to swap dealers.
CFTC regulation of forward foreign currency contracts, especially non-deliverable forwards, may restrict a Fund’s ability to use these instruments in the manner described above or subject the adviser to CFTC registration and regulation as a commodity pool operator with respect to that Fund.
The successful use of these transactions will usually depend on the adviser’s or a subadviser’s ability to accurately forecast currency exchange rate movements. Should exchange rates move in an unexpected manner, a Fund may not achieve the anticipated benefits of the transaction, or it may realize losses. In addition, these techniques could result in a loss if the counterparty to the transaction does not perform as promised, including because of the counterparty’s bankruptcy or insolvency. In unusual or extreme market conditions, a counterparty’s creditworthiness and ability to perform may deteriorate rapidly, and the availability of suitable replacement counterparties may become limited. Moreover, investors should bear in mind that the Funds are not obligated to actively engage in hedging or other currency transactions. For example, a Fund may not have attempted to hedge its exposure to a particular foreign currency at a time when doing so might have avoided a loss.
Forward foreign currency contracts may limit potential gain from a positive change in the relationship between the U.S. dollar and foreign currencies. Unanticipated changes in currency prices may result in poorer overall performance for a Fund than if it had not engaged in such contracts. Moreover, there may be an imperfect correlation between a Fund’s portfolio holdings of securities denominated in a particular currency and the currencies bought or sold in the forward foreign currency contract entered into by the Fund. This imperfect correlation may cause a Fund to sustain losses that will prevent the Fund from achieving a complete hedge or expose the Fund to risk of foreign exchange loss.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Forward foreign currency exchange contracts outstanding at period end, if any, are listed after each Fund’s Schedule of Investments. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts in the Statements of Operations. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Realized gains or losses, if any, are included in Net realized gains (losses) on forward foreign currency exchange contracts in the Statements of Operations.
Futures Contracts: A Fund may enter into futures contracts. Generally, a futures contract is a standard binding agreement to buy or sell a specified quantity of an underlying reference instrument, such as a specific security, rate, currency or commodity, at a specified price at a specified later date. Each Fund may purchase or sell interest rate futures for the purpose of hedging some or all of the value of its portfolio securities against changes in prevailing interest rates or to manage its duration or effective maturity. If MIM or a subadviser anticipates that interest rates may rise and, concomitantly, the price of certain of its portfolio securities may fall, a Fund may sell futures contracts. If declining interest rates are anticipated, a Fund may purchase futures contracts to protect against a potential increase in the price of securities the Fund intends to purchase. Subsequently, appropriate securities may be purchased by a Fund in an orderly fashion; as securities are purchased, corresponding futures positions would be terminated by offsetting sales of contracts.
When a Fund enters into a futures contract, it must deliver to an account controlled by a futures commission merchant ("FCM") an amount referred to as “initial margin” that is typically calculated as an amount equal to the volatility in market value of a contract over a fixed period. Initial margin requirements are determined by the respective exchanges on which the futures contracts are traded and the FCM. Thereafter, a “variation margin” amount may be required to be paid by a Fund or received by the Fund in accordance with margin controls set for such accounts, depending upon changes in the marked-to-market value of the futures contract. The account is marked-to-market daily and the variation margin is monitored by a Fund’s investment manager and custodian on a daily basis. When the futures contract is closed out, if a Fund has a loss equal to or greater than the margin amount, the margin amount is paid to the FCM along with any loss in excess of the margin amount. If a Fund has a loss of less than the margin amount, the excess margin is returned to the Fund. If a Fund has a gain, the full margin amount and the amount of the gain is paid to the Fund.
A Fund’s use of futures contracts is subject to the risks associated with derivative instruments generally. In addition, if MIM’s or a subadviser’s judgment about the general direction of interest rates or markets is wrong, a Fund’s overall performance may be poorer than if no financial futures contracts had been entered into. For example, in some cases, securities called for by a financial futures contract may not have been issued at the time the contract was written. In addition, the market prices of financial futures contracts may be affected by certain factors.
There is a risk of loss by a Fund of the initial and variation margin deposits in the event of bankruptcy of the FCM with which the Fund has an open position in a futures contract. The assets of a Fund may not be fully protected in the event of the bankruptcy of the FCM or central counterparty because the Fund might be limited to recovering only a pro rata share of all available funds and margin segregated on behalf of an FCM’s customers. If an FCM does not provide accurate reporting, a Fund is also subject to the risk that the FCM could use the Fund’s assets, which are held in an omnibus account with assets belonging to the FCM’s other customers, to satisfy its own financial obligations or the payment obligations of another customer to the central counterparty.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
The risk of loss in trading financial futures can be substantial due to the low margin deposits required and the extremely high degree of leverage involved in futures pricing. Relatively small price movements in a financial futures contract could have an immediate and substantial impact, which may be favorable or unfavorable to a Fund. It is possible for a price-related loss to exceed the amount of a Fund’s margin deposit.
Each Fund will incur brokerage fees in connection with its futures transactions. In addition, while futures contracts will be purchased and sold to reduce certain risks, those transactions themselves entail certain other risks. Thus, while a Fund may benefit from the use of futures, unanticipated changes in interest rates or stock price movements may result in a poorer overall performance for the Fund than if it had not entered into any futures contracts. Moreover, in the event of an imperfect correlation between the futures position and the portfolio position that is intended to be protected, the desired protection may not be obtained and the Fund may be exposed to risk of loss.
Although some financial futures contracts by their terms call for the actual delivery or acquisition of securities at expiration, in most cases the contractual commitment is closed out before expiration. The offsetting of a contractual obligation is accomplished by purchasing (or selling as the case may be) on a commodities or futures exchange an identical financial futures contract calling for delivery in the same month. Such a transaction, if effected through a member of an exchange, cancels the obligation to make or take delivery of the securities. A Fund will incur brokerage fees when it purchases or sells financial futures contracts, and will be required to maintain margin deposits. If a liquid secondary market does not exist when a Fund wishes to close out a financial futures contract, it will not be able to do so and will continue to be required to make daily cash payments of variation margin in the event of adverse price movements. There is no assurance that a Fund will be able to enter into closing transactions.
The CFTC and the various exchanges have established limits referred to as “speculative position limits” on the maximum net long or net short position that any person, such as a Fund, may hold or control in a particular futures contract. Trading limits are also imposed on the maximum number of contracts that any person may trade on a particular trading day. An exchange may order the liquidation of positions found to be in violation of these limits and it may impose other sanctions or restrictions. The regulation of futures, as well as other derivatives, is a rapidly changing area of law.
Futures exchanges may also limit the amount of fluctuation permitted in certain futures contract prices during a single trading day. This daily limit establishes the maximum amount that the price of a futures contract may vary either up or down from the previous day’s settlement price. Once the daily limit has been reached in a futures contract subject to the limit, no more trades may be made on that day at a price beyond that limit. The daily limit governs only price movements during a particular trading day and does not limit potential losses because the limit may prevent the liquidation of unfavorable positions. For example, futures prices have occasionally moved to the daily limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of positions and subjecting some holders of futures contracts to substantial losses.
Futures contracts outstanding at year end, if any, are listed after each Fund’s Schedule of Investments. The Statements of Operations include any realized gains or losses on closed futures contracts in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts in Net change in
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
unrealized appreciation (depreciation) on futures contracts. At April 30, 2022, the Morningstar Global Income Fund, the Morningstar Total Return Bond Fund, and the Morningstar Alternatives Fund pledged cash to cover margin requirements for open futures positions in an amount of $147,728, $2,651,899 and $835,671, respectively, which is included in Due from Broker on the Statements of Assets and Liabilities.
Options on Futures Contracts: Options on futures contracts trade on the same contract markets as the underlying futures contract. When a Fund buys an option, it pays a premium for the right, but does not have the obligation, to purchase (call) or sell (put) a futures contract at a set price (called the exercise price). The purchase of a call or put option on a futures contract, whereby a Fund has the right to purchase or sell, respectively, a particular futures contract, is similar in some respects to the purchase of a call or put option on an individual security or currency. Depending on the premium paid for the option compared to either the price of the futures contract upon which it is based or the price of the underlying reference instrument, the option may be less risky than direct ownership of the futures contract or the underlying reference instrument.
The seller (writer) of an option becomes contractually obligated to take the opposite futures position if the buyer of the option exercises its rights to the futures position specified in the option. In return for the premium paid by the buyer, the seller assumes the risk of taking a possibly adverse futures position. In addition, the seller will be required to post and maintain initial and variation margin with the FCM.
A Fund’s use of options on futures contracts is subject to the risks related to derivative instruments generally. In addition, the amount of risk the Fund assumes when it purchases an option on a futures contract is the premium paid for the option plus related transaction costs. The purchase of an option also entails the risk that changes in the value of the underlying futures contract will not be fully reflected in the value of the option purchased. The seller (writer) of an option on a futures contract is subject to the risk of having to take a possibly adverse futures position if the purchaser of the option exercises its rights. If the seller were required to take such a position, it could bear substantial losses. An option writer has potentially unlimited economic risk because its potential loss, except to the extent offset by the premium received, is equal to the amount the option is “in-the-money” at the expiration date. A call option is in-the-money if the value of the underlying futures contract exceeds the exercise price of the option. A put option is in-the-money if the exercise price of the option exceeds the value of the underlying futures contract.
Options: A Fund may purchase and sell call and put options. An option is a contract that gives the purchaser of the option, in return for the premium paid, the right to buy an underlying reference instrument, such as a specified security, currency, index, or other instrument, from the writer of the option (in the case of a call option), or to sell a specified reference instrument to the writer of the option (in the case of a put option) at a designated price during the term of the option. The premium paid by the buyer of an option will reflect, among other things, the relationship of the exercise price to the market price and the volatility of the underlying reference instrument, the remaining term of the option, supply, demand, interest rates and/or currency exchange rates. An American style put or call option may be exercised at any time during the option period while a European style put or call option may be exercised only upon expiration or during a fixed period prior thereto. Put and call options are traded on national securities exchanges and in the OTC market.
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Notes to Financial Statements (continued)
As the buyer of a call option, a Fund has a right to buy the underlying reference instrument (e.g., a currency or security) at the exercise price at any time during the option period (for American style options). A Fund may enter into closing sale transactions with respect to call options, exercise them, or permit them to expire. Unless the price of the underlying reference instrument changes sufficiently, a call option purchased by a Fund may expire without any value to the Fund, in which case the Fund would experience a loss to the extent of the premium paid for the option plus related transaction costs.
As the buyer of a put option, a Fund has the right to sell the underlying reference instrument at the exercise price at any time during the option period (for American style options). Like a call option, a Fund may enter into closing sale transactions with respect to put options, exercise them or permit them to expire. If a put option is not terminated in a closing sale transaction when it has remaining value, and if the market price of the underlying reference instrument remains equal to or greater than the exercise price during the life of the put option, the buyer would not make any gain upon exercise of the option and would experience a loss to the extent of the premium paid for the option plus related transaction costs. In order for the purchase of a put option to be profitable, the market price of the underlying reference instrument must decline sufficiently below the exercise price to cover the premium and transaction costs.
Writing options may permit the writer to generate additional income in the form of the premium received for writing the option. The writer of an option may have no control over when the underlying reference instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the writer may be notified of exercise at any time prior to the expiration of the option (for American style options). In general, though, options are infrequently exercised prior to expiration. Whether or not an option expires unexercised, the writer retains the amount of the premium. Writing “covered” call options means that the writer owns the underlying reference instrument that is subject to the call option. Call options may also be written on reference instruments that the writer does not own.
If a call option written by a Fund expires unexercised, the Fund will realize a gain in the amount of the premium received. If the market price of the underlying reference instrument decreases, the call option will not be exercised and the Fund will be able to use the amount of the premium received to hedge against the loss in value of the underlying reference instrument. The exercise price of a call option will be chosen based upon the expected price movement of the underlying reference instrument. The exercise price of a call option may be below, equal to (at-the money), or above the current value of the underlying reference instrument at the time the option is written.
As the writer of a put option, a Fund has a risk of loss should the underlying reference instrument decline in value. If the value of the underlying reference instrument declines below the exercise price of the put option and the put option is exercised, the Fund, as the writer of the put option, will be required to buy the instrument at the exercise price, which will exceed the market value of the underlying reference instrument at that time. A Fund will incur a loss to the extent that the current market value of the underlying reference instrument is less than the exercise price of the put option. However, the loss will be offset in part by the premium received from the buyer of the put. If a put option written by a Fund expires unexercised, the Fund will realize a gain in the amount of the premium received.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Options involve certain risks, including general risks related to derivative instruments. There can be no assurance that a liquid secondary market on an exchange will exist for any particular option, or at any particular time, and a Fund may have difficulty effecting closing transactions in particular options. Therefore, a Fund would have to exercise the options it purchased in order to realize any profit, thus taking or making delivery of the underlying reference instrument when not desired. A Fund could then incur transaction costs upon the sale of the underlying reference instruments. Similarly, when a Fund cannot effect a closing transaction with respect to a put option it wrote, and the buyer exercises, the Fund would be required to take delivery and would incur transaction costs upon the sale of the underlying reference instruments purchased. If a Fund, as a covered call option writer, is unable to effect a closing purchase transaction in a secondary market, it will not be able to sell the underlying reference instrument until the option expires, it delivers the underlying instrument upon exercise, or it segregates enough liquid assets to purchase the underlying reference instrument at the marked-to-market price during the term of the option. When trading options on non-U.S. exchanges or in the OTC market, many of the protections afforded to exchange participants will not be available. For example, there may be no daily price fluctuation limits, and adverse market movements could therefore continue to an unlimited extent over an indefinite period of time.
The effectiveness of an options strategy for hedging depends on the degree to which price movements in the underlying reference instruments correlate with price movements in the relevant portion of a Fund’s portfolio that is being hedged. In addition, a Fund bears the risk that the prices of its portfolio investments will not move in the same amount as the option it has purchased or sold for hedging purposes, or that there may be a negative correlation that would result in a loss on both the investments and the option. If the investment manager is not successful in using options in managing a Fund’s investments, the Fund’s performance will be worse than if the investment manager did not employ such strategies.
Options on Interest-Rate Swaps: An option on an interest-rate swap (sometimes referred to as a “swaption”) is a contract that gives the purchaser the right, but not the obligation, in return for payment of a premium, to enter into a new interest- rate swap. Options on swap agreements involve the risks associated with derivative instruments generally, as well as the additional risks associated with both options and swaps generally. A pay fixed option on an interest-rate swap gives the buyer the right to establish a position in an interest-rate swap where the buyer will pay (and the writer will receive) the fixed-rate cash flows and receive (and the writer will pay) the floating-rate cash flows. In general, most options on interest-rate swaps are “European” exercise, which means that they can only be exercised at the end of the option term.
Depending on the movement of interest rates between the time of purchase and expiration, the value of the underlying interest-rate swap and therefore also the value of the option on the interest-rate swap will change. When a Fund purchases an option on a swap agreement, it risks losing only the amount of the premium it has paid should it decide to let the option expire unexercised, plus any related transaction costs. However, if a Fund writes (sells) a swaption, the Fund is bound by the terms of the underlying swap agreement upon exercise of the option by the buyer, which may result in losses to the Fund in excess of the premium it received.
Options on swap agreements are considered to be swaps for purposes of CFTC regulation. Although they are traded OTC, the CFTC may in the future designate certain options on swaps as subject to mandatory clearing.
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Notes to Financial Statements (continued)
When a Fund purchases an option on a swap, an amount equal to the premium paid by the Fund is recorded as an Investment on the Schedules of Investments, the value of which is marked-to-market daily to reflect its current market value. If the option on a swap expires, a Fund realizes a loss equal to the amount of the premium paid.
Options on swap agreements are marked-to-market daily based upon quotations from market makers. Changes in the value of an option on a swap are reported as unrealized gains or losses.
Interest Rate, Inflation Index and Total Return Swap Contracts: A Fund may purchase interest-rate swaps. A Fund may use interest-rate swaps to increase or decrease exposure to a particular interest rate or rates, which may result in the Fund experiencing a gain or loss depending on whether the interest rates increased or decreased during the term of the agreement. A Fund may also enter into inflation index swaps to manage exposure to inflation risk. An inflation index swap is an agreement between two parties, whereby one party makes payments based on the cumulative percentage increase in an index that serves as a measure of inflation (typically, the Consumer Price Index) and the other party makes a regular payment based on a compounded fixed rate. The value of an inflation index swap is expected to change in response to changes in the rate of inflation. If inflation increases at a faster rate than anticipated at the time the swap is entered into, the swap will increase in value. Similarly, if inflation increases at a rate slower than anticipated at the time the swap is entered into, the swap will decrease in value. A Fund may also engage in total return swaps, in which payments made by the Fund or the counterparty are based on the total return of a particular reference asset or assets (such as a fixed-income security, a combination of securities, or an index). The value of a Fund’s swap positions would increase or decrease depending on the changes in value of the underlying rates, currency values, volatility or other indexes or measures. Caps and floors have an effect similar to buying or writing options. Depending on how they are used, swap agreements may increase or decrease the overall volatility of a Fund’s investments and its share price. A Fund’s ability to engage in certain swap transactions may be limited by tax considerations.
A Fund’s ability to realize a profit from such transactions will depend on the ability of the financial institutions with which it enters into the transactions to meet their obligations to the Fund. If a counterparty’s creditworthiness declines, the value of the agreement would be likely to decline, potentially resulting in losses. If a default occurs by the other party to such transaction, a Fund will have contractual remedies pursuant to the agreements related to the transaction, which may be limited by applicable law in the case of a counterparty’s insolvency. Under certain circumstances, suitable transactions may not be available to a Fund, or the Fund may be unable to close out its position under such transactions at the same time, or at the same price, as if it had purchased comparable publicly traded securities. Swaps carry counterparty risks that cannot be fully anticipated. Also, because swap transactions typically involve a contract between the two parties, such swap investments can be extremely illiquid, as it is uncertain as to whether another counterparty would wish to take assignment of the rights under the swap contract at a price acceptable to a Fund.
For centrally cleared swaps, the Schedules of Investments include the cumulative appreciation (depreciation), while only the current day’s variation margin is reported within the Statements of Assets and Liabilities. For interest rate contracts, an up-front payment received by a Fund is recorded as a liability and an upfront payment made by a Fund is recorded as an asset on the Fund’s Statement of Assets and Liabilities. Upfront payments are
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
amortized over the term of the contract. If there is no upfront payment or receipt, market value will equal unrealized appreciation(depreciation). Periodic payments received (paid) by a Fund are recorded as realized gains (losses) from the expiration or closing of swap contracts on the Fund’s Statement of Assets and Liabilities.
Interest rate swaps are marked to market daily and the change is recorded as unrealized gain (loss) on swap contracts in the Statements of Operations. The Funds’ risk of loss associated with these instruments may exceed their value, as recorded in the Schedules of Investments. Non-deliverable interest rate swap contracts are settled with the counterparty in U.S. Dollars without the delivery of foreign currency. Centrally cleared interest rate swaps may have forward effective dates. The amortization of the upfront premiums (if applicable) and payments related to these swap contracts begin on the effective date of the contract. Interest rate, inflation index and total return swaps contracts outstanding, including their respective notional amounts at period end, if any, are listed after each Fund’s Schedule of Investments.
Credit Default Swaps: A Fund may purchase credit default swaps. A credit default swap is an agreement between a Fund and a counterparty that enables the Fund to buy or sell protection against a credit event related to a particular issuer. One party, acting as a protection buyer, makes periodic payments, which may be based on, among other things, a fixed or floating rate of interest, to the other party, a protection seller, in exchange for a promise by the protection seller to make a payment to the protection buyer if a negative credit event (such as a delinquent payment or default) occurs with respect to a referenced bond or group of bonds. Credit default swaps may also be structured based on the debt of a basket of issuers, rather than a single issuer, and may be customized with respect to the default event that triggers purchase or other factors, or defaults by a particular combination of issuers within the basket, may trigger a payment obligation). As a credit protection seller in a credit default swap contract, a Fund would be required to pay the par (or other agreed-upon) value of a referenced debt obligation to the counterparty following certain negative credit events as to a specified third party debtor, such as default by a U.S. or non-U.S. corporate issuer on its debt obligations. In return for its obligation, a Fund would receive from the counterparty a periodic stream of payments, which may be based on, among other things, a fixed or floating rate of interest, over the term of the contract provided that no event of default has occurred. If no default occurs, a Fund would keep the stream of payments, and would have no payment obligations to the counterparty. A Fund may sell credit protection to earn additional income and/or to take a synthetic long position in the underlying security or basket of securities.
A Fund may enter into credit default swap contracts as protection buyer to hedge against the risk of default on the debt of a particular issuer or basket of issuers or attempt to profit from a deterioration or perceived deterioration in the creditworthiness of the particular issuer(s) (also known as buying credit protection). This would involve the risk that the investment may expire worthless and would only generate gain in the event of an actual default by the issuer(s) of the underlying obligation(s) (or, as applicable, a credit downgrade or other indication of financial instability). It would also involve the risk that the seller may fail to satisfy its payment obligations to a Fund. The purchase of credit default swaps involves costs, which will reduce a Fund’s return.
Credit default swaps involve a number of special risks. A protection seller may have to pay out amounts following a negative credit event greater than the value of the reference obligation delivered to it by its counterparty and the amount of periodic payments previously received by it from the counterparty. When a Fund acts as a seller of a credit default swap, it is exposed to, among other things, leverage risk because if an event of default occurs the seller must pay the buyer the full notional value of the reference obligation. Each party to
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
a credit default swap is subject to the credit risk of its counterparty (the risk that its counterparty may be unwilling or unable to perform its obligations on the swap as they come due). The value of the credit default swap to each party will change based on changes in the actual or perceived creditworthiness of the underlying issuer.
A protection buyer may lose its investment and recover nothing should an event of default not occur. A Fund may seek to realize gains on its credit default swap positions, or limit losses on its positions, by selling those positions in the secondary market. There can be no assurance that a liquid secondary market will exist at any given time for any particular credit default swap or for credit default swaps generally.
The market for credit default swaps has become more volatile in recent years as the creditworthiness of certain counterparties has been questioned and/or downgraded. The parties to a credit default swap may be required to post collateral to each other. If a Fund posts initial or periodic collateral to its counterparty, it may not be able to recover that collateral from the counterparty in accordance with the terms of the swap. In addition, if a Fund receives collateral from its counterparty, it may be delayed or prevented from realizing on the collateral in the event of the insolvency or bankruptcy of the counterparty. A Fund may exit its obligations under a credit default swap only by terminating the contract and paying applicable breakage fees, or by entering into an offsetting credit default swap position, which may cause the Fund to incur more losses.
For centrally cleared swaps, the Schedules of Investments include the cumulative appreciation (depreciation), while only the current day’s variation margin is reported within the Statements of Assets and Liabilities. For credit default swap contracts, an up-front payment received by a Fund is recorded as a liability and an upfront payment made by a Fund is recorded as an asset on the Fund’s Statement of Assets and Liabilities. Upfront payments are amortized over the term of the contract. If there is no upfront payment or receipt, market value will equal unrealized appreciation (depreciation). Periodic payments received (paid) by a Fund are recorded as realized gains (losses) from the expiration or closing of swap contracts on the Fund’s Statement of Assets and Liabilities.
The credit default contracts are marked to market daily and the change, if any, is recorded as an unrealized gain or loss. Changes in market value are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Upon the occurrence of a credit event, the difference between the par value and market value of the reference obligation, net of any proportional amount of the up-front payment, is recorded as a realized gain or loss on swap contracts in the Statements of Operations.
Each Fund's risk of loss associated with these instruments may exceed their fair value, as recorded in the Schedules of Investments. Credit default swap contracts outstanding, including their respective notional amounts at year end, if any, are listed after each Fund’s Schedule of Investments.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default contracts on corporate issues or sovereign issues of an emerging country as of year end are disclosed in the Schedules of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default contracts on asset-backed securities and credit indices, the
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
Contracts for Differences: The Morningstar Alternatives Fund may enter into Contracts for Differences (“CFDs”). CFDs are leveraged derivative instruments that allow a Fund to take a position on the change in the market price of an underlying asset, such as a stock, or the value of an index or currency exchange rate. With a short CFD, a Fund is seeking to profit from falls in the market price of the asset. CFDs are subject to liquidity risk because the liquidity of CFDs is based on the liquidity of the underlying instrument, and are subject to counterparty risk, i.e., the risk that the counterparty to the CFD transaction may be unable or unwilling to make payments or to otherwise honor its financial obligations under the terms of the contract. It is also possible that the market price of the CFD will move between the time the order is placed by a Fund and when it is executed by the issuer, which can result in the trade being executed at a less favorable price. CFDs, like many other derivative instruments, involve the risk that, if the derivative security declines in value, additional margin would be required to maintain the margin level. The seller may require a Fund to deposit additional sums to cover this decline in value, and the margin call may be at short notice. If additional margin is not provided in time, the seller may liquidate the positions at a loss for which a Fund is liable. The potential for margin calls and large losses are much greater in CFDs than in other leveraged products. Most CFDs are traded OTC. CFDs are not registered with the SEC or any U.S. regulator, and are not subject to U.S. regulation. In a short position, a Fund will receive or pay an amount based upon the amount, if any, by which the notional amount of the CFD would have decreased or increased in value had it sold the particular stocks short, less the dividends that would have been paid on those stocks, plus a floating rate of interest on the notional amount of the CFD. All of these components are reflected in the market value of the CFD.
Master Netting Agreements: Certain Funds are parties to master netting arrangements with counterparties (“Master Agreements”). Master Agreements govern the terms of certain like transactions, and reduce the counterparty risk associated with relevant transactions by specifying payment netting mechanisms across multiple transactions and providing standardization that improves legal certainty. Since different types of transactions have different mechanics and are sometimes traded by different legal entities of a particular counterparty organization, each type of transaction may be covered by a different Master Agreement, resulting in the need for multiple Master Agreements with a counterparty and its affiliates.
As the Master Agreements are specific to unique operations of different asset types, they allow the Funds to i) close out and net their total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty, ii) exit transactions through means other than sale, such as through a negotiated agreement with the Funds’ counterparty, a transfer to another party, or close out of the position through execution of an offsetting transaction.
Master Repurchase Agreements govern repurchase, or reverse repurchase transactions, relating to government bonds between certain Funds and select counterparties. Master Repurchase Agreements maintain provisions for initiation, income payments, events of default, and maintenance of collateral.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of equities, bonds, equity options or short sales of securities between certain Funds and selected counterparties. These arrangements provide financing terms for such transactions and include guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically held by the prime broker and offset any obligations due to the prime broker.
Customer Account Agreements govern cleared derivatives transactions and exchange-traded futures and options transactions. Upon entering into an exchange-traded or centrally cleared derivative contract, the Funds are required to deposit with the relevant clearing organization cash or securities, which is referred to as the initial margin. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited is recorded as Deposits with brokers for centrally cleared swaps and Deposits with brokers for futures contracts on the Statements of Assets and Liabilities. For exchange-traded futures or centrally cleared swaps, initial margin is posted, and daily changes in fair value are recorded as a payable or receivable on the Statements of Assets and Liabilities as Variation margin on centrally cleared swaps and Variation margin on futures contracts. Variation margin is determined separately for exchange-traded futures and centrally cleared swaps and cannot be netted.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern OTC derivative transactions entered into between certain Funds and a counterparty. ISDA Master Agreements maintain provisions for general obligations, representations, netting of settlement payments, agreements to deliver supporting documents, collateral transfer and events of default or termination. Events of termination include a decline in a Fund’s net assets below a specified threshold over a certain period of time or a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all OTC contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by a party to elect early termination could be material to the financial statements and impact a Fund’s future derivative activity.
Collateral and margin requirements differ according to the terms of each type of Master Agreement. Collateral is routinely transferred if the total net exposure net of existing collateral already in place governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold. Collateral can be in the form of cash, debt securities issued by the U.S. government, money market funds and other securities as agreed to by a Fund and the applicable counterparty, or as permitted by the clearing house or exchange.
Collateral pledged by a Fund for OTC derivatives pursuant to a Master Agreement is segregated by the Fund’s custodian and identified as an asset in the Statements of Assets and Liabilities either as a component of Investments in non-affiliates, at value (securities) or in Due from broker (cash). Segregation of a Fund’s collateral in the custodian account helps mitigate counterparty risk.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Collateral posted for the benefit of a Fund pursuant to a Master Agreement is held by a custodian of the Fund. Amounts which can be invested or repledged, are presented in each Fund's Schedule of Investments. Collateral received is reflected as a liability within Due to broker in the Statements of Assets and Liabilities.
The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objectives. The Funds’ derivative contracts are not accounted for as hedging instruments under GAAP. The effect of such derivative instruments on the Funds' financial position and financial performance for the year ended April 30, 2022 are as follows:
| | Assets | Liabilities |
| | Unrealized
Appreciation
on Futures
Contracts(1) | Swaps and
Contracts for
Difference at
Fair Value(2) | Unrealized
Appreciation
on Forward
Currency
Exchange
Contracts | Purchased
Options and
Swaptions at
Fair Market
Value | Total | Unrealized
Depreciation
on Futures
Contracts(1) | Swaps and
Contracts for
Difference at
Fair Value(2) | Unrealized
Depreciation
on Forward
Currency
Exchange
Contracts | Written
Options and
Swaptions at
Fair Market
Value | Total |
| Morningstar International Equity Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 219,852 | $ — | $ 219,852 | $ — | $ — | $ 29,718 | $ — | $ 29,718 |
| Total | — | — | 219,852 | — | 219,852 | — | — | 29,718 | — | 29,718 |
| Netting positions | — | — | (29,718) | — | (29,718) | — | — | (29,718) | — | (29,718) |
| Net Fair Value of Derivative Contracts | $ — | $ — | $ 190,134 | $ — | $ 190,134 | $ — | $ — | $ — | $ — | $ — |
| Morningstar Global Income Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 91,551 | $ 20,438 | $ 111,989 | $ — | $ — | $ 218,210 | $ 9,491 | $ 227,701 |
| Interest rate risk | 264,305 | — | — | 13,500 | 277,805 | 406,786 | — | — | — | 406,786 |
| Total | 264,305 | — | 91,551 | 33,938 | 389,794 | 406,786 | — | 218,210 | 9,491 | 634,487 |
| Netting positions | (264,305) | — | (91,551) | (9,491) | (365,347) | (264,305) | — | (91,551) | (9,491) | (365,347) |
| Net Fair Value of Derivative Contracts | $ — | $ — | $ — | $ 24,447 | $ 24,447 | $ 142,481 | $ — | $ 126,659 | $ — | $ 269,140 |
| Morningstar Total Return Bond Fund | | | | | | |
| Credit risk | $ — | $ 1,400,447 | $ — | $ — | $ 1,400,447 | $ — | $ 3,639 | $ — | $ — | $ 3,639 |
| Foreign exchange rate risk | — | — | 457,225 | 29,657 | 486,882 | — | — | 267,980 | 17,681 | 285,661 |
| Inflation risk | — | 812,890 | — | — | 812,890 | — | 2,610,029 | — | — | 2,610,029 |
| Interest rate risk | 1,527,293 | 5,242,932 | — | 557,356 | 7,327,581 | 7,191,364 | 1,761,525 | — | 475,615 | 9,428,504 |
| Total | 1,527,293 | 7,456,269 | 457,225 | 587,013 | 10,027,800 | 7,191,364 | 4,375,193 | 267,980 | 493,296 | 12,327,833 |
| Netting positions | (1,527,293) | (4,375,193) | (267,980) | (493,296) | (6,663,762) | (1,527,293) | (4,375,193) | (267,980) | (493,296) | (6,663,762) |
| Net Fair Value of Derivative Contracts | $ — | $ 3,081,076 | $ 189,245 | $ 93,717 | $ 3,364,038 | $ 5,664,071 | $ — | $ — | $ — | $ 5,664,071 |
| Morningstar Multisector Bond Fund | | | | | | |
| Credit risk | $ — | $ 4,911 | $ — | $ — | $ 4,911 | $ — | $ — | $ — | $ — | $ — |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| | Assets | Liabilities |
| | Unrealized
Appreciation
on Futures
Contracts(1) | Swaps and
Contracts for
Difference at
Fair Value(2) | Unrealized
Appreciation
on Forward
Currency
Exchange
Contracts | Purchased
Options and
Swaptions at
Fair Market
Value | Total | Unrealized
Depreciation
on Futures
Contracts(1) | Swaps and
Contracts for
Difference at
Fair Value(2) | Unrealized
Depreciation
on Forward
Currency
Exchange
Contracts | Written
Options and
Swaptions at
Fair Market
Value | Total |
| Morningstar Multisector Bond Fund (continued) | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 135,886 | $ — | $ 135,886 | $ — | $ — | $ 146,310 | $ — | $ 146,310 |
| Total | — | 4,911 | 135,886 | — | 140,797 | — | — | 146,310 | — | 146,310 |
| Netting positions | — | — | (135,886) | — | (135,886) | — | — | (135,886) | — | (135,886) |
| Net Fair Value of Derivative Contracts | $ — | $ 4,911 | $ — | $ — | $ 4,911 | $ — | $ — | $ 10,424 | $ — | $ 10,424 |
| Morningstar Alternatives Fund | | | | | | |
| Credit risk | $ — | $ 64,860 | $ — | $ — | $ 64,860 | $ — | $ — | $ — | $ — | $ — |
| Equity risk | — | 73,149,242 | — | 30,260 | 73,179,502 | — | 69,927,368 | — | 33,592 | 69,960,960 |
| Foreign exchange rate risk | — | — | 648,282 | — | 648,282 | — | — | 331,767 | — | 331,767 |
| Inflation risk | — | 126,816 | — | — | 126,816 | — | — | — | — | — |
| Interest rate risk | 2,168,150 | 480,000 | — | — | 2,648,150 | 627,086 | 700,630 | — | — | 1,327,716 |
| Total | 2,168,150 | 73,820,918 | 648,282 | 30,260 | 76,667,610 | 627,086 | 70,627,998 | 331,767 | 33,592 | 71,620,443 |
| Netting positions | (627,086) | (70,627,998) | (331,767) | (30,260) | (71,617,111) | (627,086) | (70,627,998) | (331,767) | (30,260) | (71,617,111) |
| Net Fair Value of Derivative Contracts | $1,541,064 | $ 3,192,920 | $ 316,515 | $ — | $ 5,050,499 | $ — | $ — | $ — | $ 3,332 | $ 3,332 |
| 1 | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments’ footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
| 2 | Includes cumulative appreciation/depreciation on centrally-cleared swap agreements as reported in the Schedule of Investments’ footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
The following table indicates the effect of derivative instruments, by primary underlying risk exposure and contract type, on the Statements of Operations for the year ended April 30, 2022:
| | Net Realized Gain (Loss)
on Derivatives Recognized
as a Result from Operations | Net Change in Unrealized
Appreciation (Depreciation)
on Derivatives Recognized
as a Result from Operations |
| | Futures
Contracts | Swaps and
Contracts for
Difference | Forward
Currency
Exchange
Contracts | Purchased/
Written
Options and
Swaptions | Total | Futures
Contracts | Swaps and
Contracts for
Difference | Forward
Currency
Exchange
Contracts | Purchased/
Written
Options and
Swaptions | Total |
| Morningstar International Equity Fund | | | | | | |
| Foreign exchange rate risk | $— | $— | $226,840 | $— | $226,840 | $— | $— | $71,249 | $— | $71,249 |
| Total | $— | $— | $226,840 | $— | $226,840 | $— | $— | $71,249 | $— | $71,249 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| | Net Realized Gain (Loss)
on Derivatives Recognized
as a Result from Operations | Net Change in Unrealized
Appreciation (Depreciation)
on Derivatives Recognized
as a Result from Operations |
| | Futures
Contracts | Swaps and
Contracts for
Difference | Forward
Currency
Exchange
Contracts | Purchased/
Written
Options and
Swaptions | Total | Futures
Contracts | Swaps and
Contracts for
Difference | Forward
Currency
Exchange
Contracts | Purchased/
Written
Options and
Swaptions | Total |
| Morningstar Global Income Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 11,987 | $ (3,950) | $ 8,037 | $ — | $ — | $(126,659) | $ (30,619) | $ (157,278) |
| Interest rate risk | (40,081) | — | — | 12,250 | (27,831) | (142,481) | — | — | 687 | (141,794) |
| Total | $ (40,081) | $ — | $ 11,987 | $ 8,300 | $ (19,794) | $ (142,481) | $ — | $(126,659) | $ (29,932) | $ (299,072) |
| Morningstar Total Return Bond Fund | | | | | | |
| Credit risk | $ — | $ 249,560 | $ — | $ — | $ 249,560 | $ — | $(1,131,199) | $ — | $ — | $(1,131,199) |
| Equity risk | — | 82,844 | — | — | 82,844 | — | (15,184) | — | — | (15,184) |
| Foreign exchange rate risk | — | — | 155,930 | (242,251) | (86,321) | — | — | 172,092 | 75,017 | 247,109 |
| Inflation risk | — | 940,781 | — | — | 940,781 | — | (1,797,138) | — | — | (1,797,138) |
| Interest rate risk | (5,152,326) | (320,314) | — | 2,190,986 | (3,281,654) | (5,116,512) | 467,853 | — | (156,610) | (4,805,269) |
| Total | $(5,152,326) | $ 952,871 | $ 155,930 | $1,948,735 | $(2,094,790) | $(5,116,512) | $(2,475,668) | $ 172,092 | $ (81,593) | $(7,501,681) |
| Morningstar Multisector Bond Fund | | | | | | |
| Credit risk | $ — | $ (33,874) | $ — | $ — | $ (33,874) | $ — | $ 33,813 | $ — | $ — | $ 33,813 |
| Foreign exchange rate risk | — | — | (322,978) | — | (322,978) | — | — | 218,898 | — | 218,898 |
| Total | $ — | $ (33,874) | $ (322,978) | $ — | $ (356,852) | $ — | $ 33,813 | $ 218,898 | $ — | $ 252,711 |
| Morningstar Global Opportunistic Equity Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $(1,595,630) | $ — | $(1,595,630) | $ — | $ — | $ (29,387) | $ — | $ (29,387) |
| Interest rate risk | (519,214) | — | — | — | (519,214) | (1,962) | — | — | — | (1,962) |
| Total | $ (519,214) | $ — | $(1,595,630) | $ — | $(2,114,844) | $ (1,962) | $ — | $ (29,387) | $ — | $ (31,349) |
| Morningstar Alternatives Fund | | | | | | |
| Credit risk | $ — | $ (5,590) | $ — | $ — | $ (5,590) | $ — | $ (71,963) | $ — | $ — | $ (71,963) |
| Equity risk | — | 4,213,097 | — | 672,510 | 4,885,607 | — | 1,408,005 | — | 172,657 | 1,580,662 |
| Foreign exchange rate risk | — | — | 793,915 | — | 793,915 | — | — | 312,523 | — | 312,523 |
| Inflation risk | — | — | — | — | — | — | 126,105 | — | — | 126,105 |
| Interest rate risk | 715,687 | (8,373) | — | — | 707,314 | 1,352,962 | (231,155) | — | — | 1,121,807 |
| Total | $ 715,687 | $4,199,134 | $ 793,915 | $ 672,510 | $ 6,381,246 | $ 1,352,962 | $ 1,230,992 | $ 312,523 | $ 172,657 | $ 3,069,134 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
The following tables present the Funds’ gross OTC derivative assets and liabilities by counterparty and contract type net of amounts available for offset under netting arrangements and any related collateral received or posted by the Funds’ as of April 30, 2022.
Morningstar International Equity Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $219,852 | $29,718 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $219,852 | $29,718 |
| Less: Derivatives not subject to MNA or similar agreements | — | — |
| Total gross amount of derivatives subject to MNA or similar agreement | $219,852 | $29,718 |
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Northern Trust | $219,852 | $(29,718) | $190,134 | $— | $190,134 |
| Total | $219,852 | $(29,718) | $190,134 | $— | $190,134 |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Northern Trust | $(29,718) | $29,718 | $— | $— | $— |
| Total | $(29,718) | $29,718 | $— | $— | $— |
Morningstar Global Income Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $ 91,551 | $ 218,210 |
| Futures contracts | 264,305 | 406,786 |
| Purchased options | 33,938 | — |
| Written options | — | 9,491 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $ 389,794 | $ 634,487 |
| Less: Derivatives not subject to MNA or similar agreements | (277,805) | (406,786) |
| Total gross amount of derivatives subject to MNA or similar agreement | $ 111,989 | $ 227,701 |
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| BNP Paribas | $ 19,784 | $ — | $19,784 | $— | $19,784 |
| Goldman Sachs | 23,916 | (14,897) | 9,019 | — | 9,019 |
| JPMorgan Chase | 8,004 | (8,004) | — | — | — |
| Morgan Stanley | 60,285 | (60,285) | — | — | — |
| Total | $111,989 | $(83,186) | $28,803 | $— | $28,803 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Morningstar Global Income Fund (continued)
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Citibank | $ (76,272) | $ — | $ (76,272) | $— | $ (76,272) |
| Goldman Sachs | (14,897) | 14,897 | — | — | — |
| JPMorgan Chase | (17,194) | 8,004 | (9,190) | — | (9,190) |
| Morgan Stanley | (119,338) | 60,285 | (59,053) | — | (59,053) |
| Total | $(227,701) | $83,186 | $(144,515) | $— | $(144,515) |
Morningstar Total Return Bond Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $ 457,225 | $ 267,980 |
| Futures contracts | 1,527,293 | 7,191,364 |
| Interest rate swap contracts* | 5,242,932 | 1,761,525 |
| Credit default swap contracts* | 1,400,447 | 3,639 |
| Inflation swap contracts* | 812,890 | 2,610,029 |
| Purchased options | 180,410 | — |
| Purchased swaptions | 406,603 | — |
| Written options | — | 254,544 |
| Written swaptions | — | 238,752 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $10,027,800 | $ 12,327,833 |
| Less: Derivatives not subject to MNA or similar agreements | (8,979,577) | (11,763,121) |
| Total gross amount of derivatives subject to MNA or similar agreement | $ 1,048,223 | $ 564,712 |
| * | The values of swap agreements are the market values listed on the Schedules of Investments. |
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America(a) | $ 461,471 | $(300,606) | $160,865 | $(160,865) | $ — |
| Barclays (b) | 68,698 | (26,352) | 42,346 | (38,000) | 4,346 |
| BNP Paribas | 184,596 | (6,539) | 178,057 | — | 178,057 |
| Citibank | 13,991 | (13,991) | — | — | — |
| Deutsche Bank | 28,987 | (28,987) | — | — | — |
| Goldman Sachs(a) | 71,281 | (24,306) | 46,975 | (46,975) | — |
| HSBC | 10,148 | (10,148) | — | — | — |
| JPMorgan Chase(b) | 114,566 | (46,034) | 68,532 | (30,000) | 38,532 |
| Morgan Stanley(b) | 89,197 | (14,491) | 74,706 | (38,000) | 36,706 |
| Toronto—Dominion Bank | 2,081 | — | 2,081 | — | 2,081 |
| UBS | 3,207 | — | 3,207 | — | 3,207 |
| Total | $1,048,223 | $(471,454) | $576,769 | $(313,840) | $262,929 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Morningstar Total Return Bond Fund (continued)
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America | $(300,606) | $300,606 | $ — | $ — | $ — |
| Barclays | (26,352) | 26,352 | — | — | — |
| BNP Paribas | (6,539) | 6,539 | — | — | — |
| Citibank (b) | (27,454) | 13,991 | (13,463) | 8,000 | (5,463) |
| Deutsche Bank(b) | (48,300) | 28,987 | (19,313) | 10,000 | (9,313) |
| Goldman Sachs | (24,306) | 24,306 | — | — | — |
| HSBC | (66,910) | 10,148 | (56,762) | — | (56,762) |
| JPMorgan Chase | (46,034) | 46,034 | — | — | — |
| Morgan Stanley | (14,491) | 14,491 | — | — | — |
| State Street | (3,720) | — | (3,720) | — | (3,720) |
| Total | $(564,712) | $471,454 | $(93,258) | $18,000 | $(75,258) |
| (a) | Actual amount of collateral received from Bank of America and Goldman Sachs exceeded the net amount before collateral and is included in "Due from broker" in the Statements of Assets and Liabilities. |
| (b) | Actual amount of collateral received from Barclays, JPMorgan Chase and Morgan Stanley and pledged by the Fund to Citibank and Deutsche Bank is included in "Due from broker" and "Due to broker" respectively, in the Statements of Assets and Liabilities. |
Morningstar Multisector Bond Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $135,886 | $146,310 |
| Credit default swap contracts* | 4,911 | — |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $140,797 | $146,310 |
| Less: Derivatives not subject to MNA or similar agreements | — | — |
| Total gross amount of derivatives subject to MNA or similar agreement | $140,797 | $146,310 |
| * | The values of swap agreements are the market values listed on the Schedules of Investments. |
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America(a) | $ 35,626 | $ — | $35,626 | $(35,626) | $ — |
| Barclays | 7,174 | (7,174) | — | — | — |
| BNP Paribas | 26,320 | (26,320) | — | — | — |
| Goldman Sachs | 8,750 | — | 8,750 | — | 8,750 |
| JPMorgan Chase | 26,384 | — | 26,384 | — | 26,384 |
| Morgan Stanley | 23,059 | (23,059) | — | — | — |
| Standard Chartered Bank | 10,758 | — | 10,758 | — | 10,758 |
| State Street | 2,726 | — | 2,726 | — | 2,726 |
| Total | $140,797 | $(56,553) | $84,244 | $(35,626) | $48,618 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Morningstar Multisector Bond Fund (continued)
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Barclays (a) | $ (25,754) | $ 7,174 | $(18,580) | $18,580 | $ — |
| BNP Paribas | (38,403) | 26,320 | (12,083) | — | (12,083) |
| Morgan Stanley(b) | (82,153) | 23,059 | (59,094) | 50,000 | (9,094) |
| Total | $(146,310) | $56,553 | $(89,757) | $68,580 | $(21,177) |
| (a) | Actual amount of collateral received from Bank of America and pledged by the Fund to Barclays exceeded the net amount before collateral and is included in Due from broker and Due to broker respectively, in the Statements of Assets and Liabilities. |
| (b) | Actual amount of collateral pledged by the Fund to Morgan Stanley is included in Due from broker in the Statements of Assets and Liabilities. |
Morningstar Alternatives Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $ 648,282 | $ 331,767 |
| Futures contracts | 2,168,150 | 627,086 |
| Contracts for difference* | 73,149,242 | 69,927,368 |
| Interest rate swap contracts* | 480,000 | 700,630 |
| Credit default swap contracts* | 64,860 | — |
| Inflation swap contracts* | 126,816 | — |
| Purchased options | 30,260 | — |
| Written options | — | 33,592 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $76,667,610 | $71,620,443 |
| Less: Derivatives not subject to MNA or similar agreements | (2,868,698) | (1,326,654) |
| Total gross amount of derivatives subject to MNA or similar agreement | $73,798,912 | $70,293,789 |
| * | The values of contracts for differences and swap agreements are the market values listed on the Schedules of Investments. |
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America | $ 9,618 | $ (9,618) | $ — | $ — | $ — |
| Barclays (a) | 27,369,076 | (26,542,461) | 826,615 | (330,000) | 496,615 |
| Citibank | 94 | (94) | — | — | — |
| Deutsche Bank | 24,769 | — | 24,769 | — | 24,769 |
| Goldman Sachs(a) | 29,269,553 | (27,878,159) | 1,391,394 | (140,000) | 1,251,394 |
| JPMorgan Chase | 16,519,024 | (15,528,077) | 990,947 | — | 990,947 |
| Morgan Stanley | 606,778 | (304,881) | 301,897 | — | 301,897 |
| Total | $73,798,912 | $(70,263,290) | $3,535,622 | $(470,000) | $3,065,622 |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America(a) | $ (35,423) | $ 9,618 | $(25,805) | $10,000 | $(15,805) |
| Barclays | (26,542,461) | 26,542,461 | — | — | — |
| Citibank (b) | (4,788) | 94 | (4,694) | 4,694 | — |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Goldman Sachs | $(27,878,159) | $27,878,159 | $ — | $ — | $ — |
| JPMorgan Chase | (15,528,077) | 15,528,077 | — | — | — |
| Morgan Stanley | (304,881) | 304,881 | — | — | — |
| Total | $(70,293,789) | $70,263,290 | $(30,499) | $14,694 | $(15,805) |
| (a) | Actual amount of collateral received from Barclays and Goldman Sachs and pledged by the Fund to Bank of America is included in "Due from broker" and "Due to broker" respectively, in the Statements of Assets and Liabilities. |
| (b) | Actual amount of collateral pledged by the Fund to Citibank exceeded the net amount before collateral and is included in "Due to broker" in the Statements of Assets and Liabilities. |
For the year ended April 30, 2022, the quarterly average notional values were as follows and are representative of the trading volume of the derivatives held by the Funds.
| | Morningstar
International
Equity Fund | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Futures Contracts: | | | | | |
| Average Notional Balance - Long | $ — | $ 8,519,644 | $408,584,486 | $ — | $ 2,496,552 | $33,439,315 |
| Average Notional Balance - Short | — | 2,143,707 | 145,252,519 | — | 448,945 | 40,365,063 |
| Ending Notional Balance - Long | — | 34,078,576 | 387,087,099 | — | — | 11,307,653 |
| Ending Notional Balance - Short | — | 8,574,828 | 66,998,456 | — | — | 47,545,933 |
| Forward Foreign Currency Exchange Contracts: | | | | | |
| Average Settlement Value - Purchased | 4,152,981 | 733,165 | 26,570,916 | 13,523,027 | 8,616,369 | 16,852,367 |
| Average Settlement Value - Sold | 282,945 | 1,612,145 | 14,664,541 | 18,057,229 | 14,257,946 | 4,837,181 |
| Ending Settlement Value - Purchased | 4,097,798 | 2,932,659 | 12,376,085 | 4,349,697 | 50,832 | 19,195,303 |
| Ending Settlement Value - Sold | 686,427 | 6,448,581 | 7,559,061 | 2,986,843 | — | 8,140,035 |
| Contracts for Difference: | | | | | |
| Average Notional Balance - Long | — | — | — | — | — | 1,200,904 |
| Average Notional Balance - Short | — | — | — | — | — | 1,322,945 |
| Ending Notional Balance - Long | — | — | — | — | — | 1,285,545 |
| Ending Notional Balance - Short | — | — | — | — | — | 1,437,321 |
| Total Return Swaps: | | | | | |
| Average Notional Balance - Pays Fixed Rate | — | — | 240,461 | — | — | — |
| Inflation Swaps: | | | | | |
| Average Notional Balance - Pays Fixed Rate | — | — | 18,380,000 | — | — | — |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| | Morningstar
International
Equity Fund | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Inflation Swaps (continued): | | | | | |
| Average Notional Balance - Receives Fixed Rate | $— | $ — | $ 31,394,801 | $ — | $— | $ — |
| Ending Notional Balance - Pays Fixed Rate | — | — | 21,010,000 | — | — | — |
| Ending Notional Balance - Receives Fixed Rate | — | — | 30,572,370 | — | — | — |
| Interest Rate Swaps: | | | | | |
| Average Notional Balance - Pays Fixed Rate | — | — | 95,559,590 | — | — | 27,037,414 |
| Average Notional Balance - Receives Fixed Rate | — | — | 77,260,502 | — | — | 29,442,451 |
| Ending Notional Balance - Pays Fixed Rate | — | — | 72,119,121 | — | — | 19,310,572 |
| Ending Notional Balance - Receives Fixed Rate | — | — | 92,644,377 | — | — | 25,230,979 |
| Credit Default Swaps: | | | | | |
| Average Notional Balance - Buy Protection | — | — | 6,016,316 | 1,911,262 | — | — |
| Average Notional Balance - Sell Protection | — | — | 129,519,520 | — | — | 750,000 |
| Ending Notional Balance - Buy Protection | — | — | 3,452,840 | 565,046 | — | — |
| Ending Notional Balance - Sell Protection | — | — | 141,656,767 | — | — | 3,000,000 |
| Options: | | | | | |
| Average Notional Balance - Purchased | — | 1,774,151 | 227,062,618 | — | — | 6,312,940 |
| Average Notional Balance - Written | — | 250,000 | 194,877,585 | — | — | 2,596,999 |
| Ending Notional Balance - Purchased | — | 7,096,604 | 43,106,883 | — | — | 1,638,582 |
| Ending Notional Balance - Written | — | 1,000,000 | 173,495,475 | — | — | 991,567 |
| Swaptions: | | | | | |
| Average Notional Balance - Purchased | — | — | 17,205,000 | — | — | — |
| Average Notional Balance - Written | — | — | 29,151,000 | — | — | — |
| Ending Notional Balance - Purchased | — | — | 64,820,000 | — | — | — |
| Ending Notional Balance - Written | — | — | 64,820,000 | — | — | — |
The SEC recently adopted new Rule 18f-4 under the 1940 Act, which imposes limits on the amount of derivatives a fund can enter into and replaces the asset segregation framework previously used by certain funds to comply with Section 18 of the 1940 Act, among other requirements. To the extent the Funds use derivatives, the Funds will comply with the new rule’s requirements on or before the SEC’s compliance date in August 2022.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Federal Income Tax Matters
As of April 30, 2022, the cost and aggregate gross unrealized appreciation (depreciation) of long security positions, short security positions and derivative instruments for federal income tax purposes were as follows:
| Fund | Cost of
Investments | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net
Unrealized
Appreciation
(Depreciation) |
| Morningstar U.S. Equity Fund | $1,330,395,522 | $232,840,537 | $ (84,478,833) | $148,361,704 |
| Morningstar International Equity Fund | 972,214,821 | 82,388,426 | (127,817,826) | (45,429,400) |
| Morningstar Global Income Fund | 265,802,563 | 7,068,171 | (16,670,761) | (9,602,590) |
| Morningstar Total Return Bond Fund | 961,031,746 | 7,808,357 | (81,086,603) | (73,278,246) |
| Morningstar Municipal Bond Fund | 401,204,926 | 747,496 | (19,996,837) | (19,249,341) |
| Morningstar Defensive Bond Fund | 162,089,695 | 673,421 | (6,386,815) | (5,713,394) |
| Morningstar Multisector Bond Fund | 149,832,174 | 1,049,255 | (16,937,467) | (15,888,212) |
| Morningstar Global Opportunistic Equity Fund | 210,183,244 | 9,403,492 | (10,050,045) | (646,553) |
| Morningstar Alternatives Fund | 379,263,581 | 9,972,047 | (24,150,201) | (14,178,154) |
The differences between book basis and tax basis appreciation (depreciation) on investments is primarily attributable to wash sale loss deferrals, mark to market on credit default swaps, contracts for difference, futures contracts, foreign exchange contracts, passive foreign investment companies (“PFICs”), 305(c) deemed dividends, straddle loss deferrals, investment in interest only ("IO") securities and contingent payment debt instruments ("CPDIs"), and timing of income recognition from Real Estate Investment Trusts (“REITs”).
As of April 30, 2022, the components of distributable earnings (loss) (excluding paid in capital) on a tax basis were as follows:
| Fund | Current
Distributable
Tax-Exempt
Income | Current
Distributable
Ordinary
Income | Current
Distributable
Long-Term
Capital Gain
or Tax Basis
Capital Loss
Carryforwards | Net
Unrealized
Appreciation
(Depreciation) | Accumulated
Capital and
Other Losses | Total
Accumulated
Earnings |
| Morningstar U.S. Equity Fund | $ — | $8,930,682 | $79,568,384 | $148,356,251 | $ — | $ 236,855,317 |
| Morningstar International Equity Fund | — | 9,677,843 | 13,660,294 | (45,882,555) | — | (22,544,418) |
| Morningstar Global Income Fund | — | — | 7,672,267 | (9,691,079) | (4,843,955) | (6,862,767) |
| Morningstar Total Return Bond Fund | — | — | — | (73,320,841) | (29,549,275) | (102,870,116) |
| Morningstar Municipal Bond Fund | 114,103 | — | — | (19,249,342) | (704,028) | (19,839,267) |
| Morningstar Defensive Bond Fund | — | — | (1,564,896) | (5,713,394) | — | (7,278,290) |
| Morningstar Multisector Bond Fund | — | — | — | (15,887,851) | (11,434,627) | (27,322,478) |
| Morningstar Global Opportunistic Equity Fund | — | 1,369,590 | 276,622 | (669,396) | — | 976,816 |
| Morningstar Alternatives Fund | — | 5,482,871 | 193,123 | (14,183,839) | — | (8,507,845) |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications have no impact on the total net assets or the net asset values per share of the Funds. At April 30, 2022, the following reclassification was recorded:
| Fund | Accumulated Distributable Earnings (Losses) | Paid-in
Capital |
| Morningstar Defensive Bond Fund | $262,291 | $(262,291) |
| | | |
The tax character of distributions paid during the fiscal year ended April 30, 2022 were as follows:
| | Fiscal Year Ended April 30, 2022 |
| Fund | Tax-Exempt Income | Ordinary Income | Capital Gains | Return of Capital | Total Distributions Paid |
| Morningstar U.S. Equity Fund | $ — | $110,198,770 | $128,287,273 | $ — | $238,486,043 |
| Morningstar International Equity Fund | — | 45,662,593 | 96,994,386 | — | 142,656,979 |
| Morningstar Global Income Fund | — | 14,947,148 | 13,613,661 | — | 28,560,809 |
| Morningstar Total Return Bond Fund | — | 13,881,661 | 4,639,870 | — | 18,521,531 |
| Morningstar Municipal Bond Fund | 6,838,232 | 64,365 | 241,086 | — | 7,143,683 |
| Morningstar Defensive Bond Fund | — | 4,600,989 | 785,732 | 262,291 | 5,649,012 |
| Morningstar Multisector Bond Fund | — | 8,172,757 | 1,078,319 | — | 9,251,076 |
| Morningstar Global Opportunistic Equity Fund | — | 14,334,709 | 25,786,433 | — | 40,121,142 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
| | Fiscal Year Ended April 30, 2022 |
| Fund | Tax-Exempt Income | Ordinary Income | Capital Gains | Return of Capital | Total Distributions Paid |
| Morningstar Alternatives Fund | $— | $13,669,424 | $2,977,689 | $— | $16,647,113 |
The tax character of distributions paid during the fiscal year ended April 30, 2021 were as follows:
| | Fiscal Year Ended April 30, 2021 |
| Fund | Tax Exempt Income | Ordinary Income | Capital Gains | Total Distributions Paid |
| Morningstar U.S. Equity Fund | $ — | $22,532,718 | $ 7,509,239 | $30,041,957 |
| Morningstar International Equity Fund | — | 14,646,088 | 11,457,061 | 26,103,149 |
| Morningstar Global Income Fund | — | 8,679,816 | — | 8,679,816 |
| Morningstar Total Return Bond Fund | — | 23,197,392 | 7,828,440 | 31,025,832 |
| Morningstar Municipal Bond Fund | 7,243,804 | 19,743 | — | 7,263,547 |
| Morningstar Defensive Bond Fund | — | 4,895,190 | 698,565 | 5,593,755 |
| Morningstar Multisector Bond Fund | — | 6,127,676 | — | 6,127,676 |
| Morningstar Global Opportunistic Equity Fund | — | 5,273,247 | 33,568 | 5,306,815 |
| Morningstar Alternatives Fund | — | 6,558,211 | 726,324 | 7,284,535 |
Under the Regulated Investment Company Modernization Act of 2010, Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Capital loss carry forwards with no expiration will retain their character as either short-term or long-term capital losses.
At April 30, 2022, the Morningstar Defensive Bond Fund had capital losses incurred that will be carried forward indefinitely under the provisions of the Act in the amount of $261,127 for short-term capital loss carry-forward and $1,303,769 for long-term capital loss carry-forward.
For the period subsequent to October 31, 2021, through the fiscal year ended April 30, 2022, the following Fund incurred net capital losses and/or late year ordinary losses for which the Fund intends to treat as having been incurred in the following fiscal year:
| Fund | |
| Morningstar Global Income Fund | $ 4,843,955 |
| Morningstar Total Return Bond Fund | 29,549,275 |
| Morningstar Municipal Bond Fund | 704,028 |
| Morningstar Multisector Bond Fund | 11,434,627 |
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
9. Principal Risks and Concentrations
Absolute Return Strategy Risk: In seeking low sensitivity to traditional U.S. asset classes, the Alternatives Fund uses an absolute return strategy and a benchmark index of cash-like instruments. Unlike most equity funds, the Fund should not be expected to benefit from broad equity market returns, and unlike traditional bond funds, it may not generate current income or benefit when interest rates decline.
Asset Allocation Risk: In an attempt to invest in areas that look most attractive on a valuation basis, the Funds may favor asset classes or market segments that cause the Funds to underperform their benchmarks.
Collateralized Debt Obligations (CDO) Risk: In addition to the typical risks associated with fixed-income securities and asset-backed securities, CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical rating organization; (iii) the Fund may invest in tranches of CDOs that are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by a Fund could be significantly different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may perform poorly. In addition, investments in CDOs may be characterized by a Fund as illiquid investments.
Call Risk: During periods of falling interest rates, an issuer may call or repay a higher-yielding fixed income security before its maturity date, forcing a Fund to reinvest in fixed income securities with lower interest rates than the original obligations.
Convertible Securities Risk: Convertible securities are generally debt securities or preferred stocks that may be converted into common stock. The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value.
Credit Risk: Issuers of fixed-income securities could default or be downgraded if they fail to make required payments of principal or interest.
Currency Risk: Because certain Funds may invest in securities of non-U.S. issuers, changes in currency exchange rates could hurt performance. Morningstar or a subadviser may decide not to hedge, or may not be successful in hedging, its currency exposure.
Cybersecurity Risk: A Fund, like all companies, may be susceptible to operational and information security risks. Cybersecurity failures or breaches of a Fund or its service providers or the issuers of securities in which a Fund invests, have the ability to cause disruptions and impact business operations, and the Funds and their shareholders could be negatively impacted as a result
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Derivatives Risk: A derivative is an instrument with a value based on the performance of an underlying currency, security, index, or other reference asset. Derivatives involve risks different from, or possibly greater than, the risks of investing in more traditional investments. Derivatives involve costs, may create leverage, and may be illiquid, volatile, or difficult to value. In addition, derivatives could cause losses if the counterparty to the transaction does not perform as promised. The investment results achieved by using derivatives may not match or fully offset changes in the value of the underlying currency, security, index, or other reference asset that a Fund was attempting to hedge or the investment opportunity it was trying to pursue.
Dollar Rolls Risk: Dollar rolls involve the risk that the market value of the securities that a Fund is commit- ted to buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.
Emerging-Markets Risk: Emerging-market countries may have relatively unstable governments and economies based on only a few industries, which can cause greater instability. These countries are also more likely to experience higher levels of inflation, deflation, or currency devaluations, which could hurt their economies and securities markets.
European Market Risk: Adverse economic and political events in Europe may cause a Fund’s investments to decline in value. Member states of the European Union (“EU”) are subject to restrictions on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro, the default or threat of default by an EU member country on its sovereign debt, and recessions in an EU member country may have a significant adverse effect on the economies of other EU member countries. In addition, the risk of investing in Europe may be heightened due to Russia's military invasion of Ukraine in February 2022 and the United Kingdom’s departure from the EU on January 31, 2020. The country’s departure (known as “Brexit”) sparked depreciation in the value of the British pound, short-term declines in the stock markets and heightened risk of continued economic volatility worldwide. While it is not possible to determine the precise impact these events may have on a Fund, during this period and beyond, the impact on the United Kingdom and European economies and the broader global economy could be significant, resulting in negative impacts, such as increased volatility and illiquidity, and potentially lower economic growth, on markets in the United Kingdom, Europe and globally, which may adversely affect the value of a Fund’s investments.
Financials Sector Risk: Financial services companies are subject to extensive government regulation and, as a result, their profitability may be affected by new regulations or regulatory interpretations. Unstable interest rates can have a disproportionate effect on the financial services sector and financial services companies whose securities the Fund may purchase may themselves have concentrated portfolios, which makes them vulnerable to economic conditions that affect that sector. Financial services companies have also been affected by increased competition, which could adversely affect the profitability or viability of such companies.
Floating-Rate Notes Risk: Floating-rate notes are subject to credit risk and interest-rate risk. The interest rate of a floating rate instrument may be based on a known lending rate, such as a bank’s prime rate, and is reset whenever such rate is adjusted. The interest rate on a variable-rate demand note is reset at specified intervals
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
at a market rate. Some floating- and variable-rate securities may be callable by the issuer, meaning that they can be paid off before their maturity date and the proceeds may be required to be invested in lower yielding securities that reduce a Fund’s income.
Foreign Securities Risk: Securities of non-U.S. issuers may be less liquid, more volatile, and harder to value than U.S. securities. They may also be subject to political, economic, and regulatory risks, and market instability.
Geographic Concentration Risk: To the extent that a Fund invests a significant portion of its assets in a particular country, region or continent, economic, political, social and environmental conditions in such country, region or continent will have a greater effect on the Fund’s performance than they would in a more geographically diversified equity fund.
High-Yield Risk: High-yield securities and unrated securities of similar credit quality (commonly known as junk bonds) are subject to greater levels of credit and liquidity risks. High-yield securities are considered speculative with respect to the issuer’s continuing ability to make principal and interest payments.
Indexed and Inverse Securities Risk: Indexed and inverse securities provide a potential return based on a particular index of value or interest rates. A Fund’s return on these securities will be subject to risk with respect to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index levels move in a way Fund management does not anticipate.
Interest-Rate Risk: The value of fixed-income securities, as well as some income-oriented equity securities that pay dividends, will typically decline when interest rates rise. A Fund may be subject to a greater risk or rising interest rates due to the current period of low interest rates.
Investment Company and ETF Risk: An investment company, including an open or closed-end mutual fund or ETF, in which a Fund invests may not achieve its investment objective or execute its investment strategies effectively, or a large purchase or redemption activity by shareholders might negatively affect the value of the shares. A Fund must also pay its pro rata portion of an investment company’s fees and expenses. Shares of ETFs trade on exchanges and may be bought and sold at market value. ETF shares may be thinly traded, making it difficult for a Fund to sell shares at a particular time or an anticipated price. ETF shares may also trade at a premium or discount to the net asset value of the ETF; at times, this premium or discount could be significant.
LIBOR Risk: Certain instruments in which a Fund, or the underlying funds in which a Fund invests, may utilize the London Interbank Overnight Rate (LIBOR) as a reference rate for various rate calculations. The U.K. Financial Conduct Authority, which regulates LIBOR, phased out certain LIBOR at the end of 2021 and intends to phase out the remaining LIBOR rate in 2023. Although the transition process away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation date, there remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rates. The potential effect of a transition away from
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
LIBOR on the investments held by a Fund or underlying funds cannot yet be determined. To the extent that a Fund or underlying funds have exposure to contracts or instruments based on LIBOR that do not include fallback provisions, those investments may have an increased risk of becoming illiquid.
Long/Short Strategy Risk: While the Alternatives Fund may invest in long positions and short positions, there is the risk that the investments will not perform as expected and losses on one type of position could more than offset gains on the other, or the Fund could lose money on both positions, if the portfolio managers judge the market incorrectly.
Market Risk: The value of stocks and other securities can be highly volatile and prices may fluctuate widely, which means you should expect a wide range of returns and could lose money, even over a long time period. Various economic, industry, regulatory, political or other factors (such as natural disasters, epidemics and pandemics, war, terrorism, conflicts or social unrest) may disrupt U.S. and world economies and can dramatically affect markets generally, certain industry sectors, and/or individual companies. Recently, the global pandemic out- break of an infectious respiratory illness caused by a novel coronavirus known as COVID-19 has resulted in substantial market volatility and global business disruption, impacting the global economy and the financial health of individual companies in significant and unforeseen ways. The duration and future impact of COVID-19 are currently unknown, which may exacerbate other types of risks that apply to a Fund and negatively impact a Fund's performance and the value of your investment in a Fund.
Also recently, Russia’s military invasion of Ukraine has significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and North America. As a result, the U.S., the European Union and other countries have instituted or may in the future institute sanctions against Russia, and could institute broader sanctions on Russia, including banning Russia from global payment systems that facilitate cross‐border payments. These sanctions and any additional sanctions, other intergovernmental actions, or actions by businesses and consumers that may be undertaken against Russia in the future may result in the devaluation of Russian currency, a downgrade in the country’s credit rating, and a decline in the value and liquidity of Russian securities. Any or all of these potential results could have an adverse/recessionary effect on Russia’s economy. Russia’s military incursion and the resulting sanctions could also adversely affect global energy and financial markets and thus could affect the value of a Fund’s investments, even beyond any direct exposure the Fund may have to Russian issuers or the adjoining geographic regions. The extent and duration of the military action, resulting sanctions and resulting future market disruptions, are impossible to predict, but could be significant. Any such disruptions caused by Russian military action, resulting sanctions or other actions (including cyberattacks) may magnify the impact of other risks described in this report.
Master Limited Partnership (MLP) Risk: MLPs are subject to, among other risks, cash flow risks, tax risk, deferred tax risk and capital market risk. Cash flow risk is the risk that MLPs will not make distributions to holders (including us) at anticipated levels or that such distributions will not have the expected tax character. MLPs also are subject to tax risk, which is the risk that an MLP might lose its partnership status for tax purposes. Deferred tax risk is the risk that we incur a current tax liability on that portion of an MLP’s income and gains that is not offset by tax deductions and losses. Capital markets risk is the risk that MLPs will be unable to raise capital to meet their obligations as they come due or execute their growth strategies, complete future acquisitions, take advantage of other business opportunities or respond to competitive pressures.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Mortgage-Related and Other Asset-Backed Securities Risk: Mortgage- and asset-backed securities represent interests in “pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-backed securities are subject to credit and interest rate risks, as well as extension and prepayment risks:
Extension Risk: Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, if the Fund holds mortgage-related securities, it may exhibit additional volatility.
Prepayment Risk: When interest rates decline, the value of mortgage-related securities with prepayment features may not increase as much as other fixed-income securities because borrowers may pay off their mortgages sooner than expected. In addition, the potential impact of prepayment on the price of asset-backed and mortgage-backed securities may be difficult to predict and result in greater volatility.
These securities also are subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities. TBA (or “to be announced”) commitments are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms.
In addition, one of the major economic impacts of the COVID-19 pandemic has been loss of income, which has left many unable to repay their financial obligations, including their mortgage payments. It is difficult to predict how the effects of COVID-19, or government initiatives relating to COVID-19, may affect the federally backed mortgage market, the U.S. mortgage market as a whole and the price of securities relating to the mortgage markets, and in turn, a Fund’s investments.
Multimanager and Subadviser Selection Risk: To a significant extent, a Fund’s performance depends on Morningstar’s skill in selecting subadvisers and each subadviser’s skill in selecting securities and executing its strategy. Subadviser strategies may occasionally be out of favor and subadvisers may underperform relative to their peers or benchmarks.
Municipal Securities Risk: The municipal securities market could be significantly affected by negative political and legislative changes, as well as uncertainties related to taxation or the rights of municipal security holders. Changes in the financial health of a municipality may make it difficult for it to pay interest and principal when due.
Nondiversification Risk: The Morningstar Multisector Bond Fund is a nondiversified investment company, which means that more of its assets may be invested, directly or indirectly, in the securities of a single issuer than a diversified investment company. This may make the value of the Fund’s shares more susceptible to certain risks than shares of a diversified investment company. As a nondiversified fund, the Fund has a greater potential to realize losses upon the occurrence of adverse events affecting a particular issuer.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
Preferred Stock Risk: Preferred stocks are subject to issuer-specific and market risks applicable generally to equity securities, however, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks are generally payable at the discretion of the issuer’s board of directors, after the company makes required payments to holders of its bonds and other debt securities. For this reason, the value of preferred stock will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred stock of smaller companies may be more vulnerable to adverse developments than preferred stock of larger companies. Preferred stocks may be less liquid than common stocks. Preferred shareholders may have certain rights if distributions are not paid but generally have no legal recourse against the issuer and may suffer a loss of value if distributions are not paid.
Private Placements Risk: Securities that are purchased in private placements are subject to restrictions on resale as a matter of contract or under federal securities laws. Because there may be relatively few potential purchasers for these investments, especially under adverse circumstances, a Fund could find it more difficult to sell private placements at an advisable time or attractive price. Additionally, such securities may not be listed on an exchange and may have no active trading market. Accordingly, many private placement securities may be illiquid. At times, it may also be more difficult to determine the fair value of such securities for purposes of computing a Fund’s net asset value.
REITs and Other Real Estate Companies Risk: REITs and other real estate company securities are subject to, among other risks: declines in property values; defaults by mortgagors or other borrowers and tenants; increases in property taxes and other operating expenses; overbuilding in their sector of the real estate market; fluctuations in rental income; changes in interest rates; lack of availability of mortgage funds or financing; extended vacancies of properties, especially during economic downturns; changes in tax and regulatory requirements; losses due to environmental liabilities; or casualty or condemnation losses.
Reverse Repurchase Agreements Risk: Reverse repurchase agreements involve the sale of securities held by a Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at all. A Fund could lose money if it is unable to recover the securities and the value of the collateral held by the Fund, including the value of the investments made with cash collateral, is less than the value of securities. These events could also trigger adverse tax consequences to the Fund.
Risks of Investing in Asian Issuers: Investments in securities of Asian issuers involve risks and special considerations not typically associated with investments in the U.S. securities markets. Certain Asian economies have experienced over-extension of credit, currency devaluations and restrictions, high unemployment, high inflation, rapid fluctuations in inflation and interest rates, decreased exports, economic recessions and political unrest. Economic and political events in any one Asian country can have a significant effect on the entire Asian region as well as on major trading partners outside Asia, and any adverse effect on some or all of the Asian countries and regions in which a Fund invests. The securities markets in some Asian economies are relatively underdeveloped and may subject a Fund to a higher degree of risk. To the extent a Fund invests in securities of companies located in or operating in China, the inability of the Public Company Accounting Oversight Board (“PCAOB”) to inspect audit work papers and practices of PCAOB-registered
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
accounting firms in China with respect to their audit work of U.S. reporting companies may impose significant additional risks associated with investments in China; therefore, there is no guarantee that the quality of financial reporting or the audits conducted by audit firms of such issuers meet PCAOB standards.
Risks of Investing in Latin American Issuers: The economies of certain Latin American countries have experienced high interest rates, economic volatility, inflation, currency devaluations, government debt defaults and high unemployment rates. Certain Latin American countries have experienced periods of political and economic instability and social unrest in the past. International economic conditions, particularly those in the U.S., Europe and Asia, as well as world prices for oil and other commodities may also influence the development of Latin American economies. These risks, among others, may adversely affect the value of a Fund’s investments.
Short Sales Risk: Short sales involve selling a security a Fund does not own in anticipation that the security’s price will decline. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. Short sales are highly speculative and may subject a Fund to, at least theoretically, unlimited risk due to the fact that the value of the security underlying the short sale may appreciate indefinitely. Short sales also create leverage which increases a Fund’s exposure to the market. When a Fund is selling a security short, it must maintain a segregated account of cash or high-grade securities equal to the margin requirement. As a result, the Fund may maintain high levels of cash or other liquid assets (such as U.S. Treasury bills, money market accounts, repurchase agreements, certificates of deposit, high quality commercial paper and long equity positions) or may use borrowings for this cash. The need to maintain cash or other liquid assets in segregated accounts could limit the Fund’s ability to pursue other opportunities as they arise.
Smaller Companies Risk: The stocks of small- or mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Small companies may have limited product lines or financial resources, or may be dependent upon a small or inexperienced management group, and their securities may trade less frequently and in lower volume than the securities of larger companies, which could lead to higher transaction costs.
Sovereign Debt Securities Risk: Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in relation to the economy, or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies.
Supranational Entities Risk: A Fund may invest in obligations issued or guaranteed by the International Bank for Reconstruction and Development (the “World Bank”). The government members, or “stockholders,” usually make initial capital contributions to the World Bank and in many cases are committed to make additional capital contributions if the World Bank is unable to repay its borrowings. There is no guarantee that one or more stockholders of the World Bank will continue to make any necessary additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay principal on its debt securities, and the Fund may lose money on such investments.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
U.S. Government Securities Risk: U.S. government obligations have different levels of credit support and, therefore, different degrees of credit risk. The U.S. government does not guarantee the market value of the securities it issues, so those values may fluctuate. Like most fixed-income securities, the prices of government securities typically fall when interest rates increase and rise when interest rates decline. In addition, the payment obligations on certain securities in which a Fund may invest, including securities issued by certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. Government or supported by the full faith and credit of the United States.
When-Issued and Delayed Delivery Securities Risk: When-issued and delayed delivery securities and forward commitments involve the risk that the security a Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s price.
10. Principal Ownership
As of April 30, 2022, the Funds had omnibus accounts owning more than 5% of the total shares outstanding of each Fund as follows:
| Fund | Number of
Shareholders | % Ownership1 |
| Morningstar U.S. Equity Fund | 5 | 99% |
| Morningstar International Equity Fund | 5 | 99% |
| Morningstar Global Income Fund | 5 | 99% |
| Morningstar Total Return Bond Fund | 5 | 99% |
| Morningstar Municipal Bond Fund | 5 | 98% |
| Morningstar Defensive Bond Fund | 4 | 94% |
| Morningstar Multisector Bond Fund | 5 | 99% |
| Morningstar Global Opportunistic Equity Fund | 5 | 99% |
| Morningstar Alternatives Fund | 5 | 99% |
| | | |
| 1Includes omnibus positions of broker-dealers representing numerous shareholder accounts. |
Investment activities of these shareholders may have a material effect on the Funds.
11. Line of Credit
The Funds have a $50 million line of credit agreement with Northern Trust. Borrowings are made solely to facilitate the handling of redemptions or unusual or unanticipated short-term cash requirements. Because several Funds participate and collateral requirements apply, there is no assurance that an individual Fund will have access to the entire $50 million at any particular time. Interest is charged to each Fund based on its borrowings at an amount above the Federal Funds rate. In addition, an administration fee of $10,000 is payable annually and allocated among the Funds based on net assets.
During the year ended April 30, 2022, the Funds made no borrowings against the line of credit.
Morningstar Funds Trust April 30, 2022
Notes to Financial Statements (continued)
12. Subsequent Events
Management has evaluated subsequent events for the Funds through the date this report was issued.
On March 9, 2022, after consideration and evaluation of various factors and information, the Board of Trustees approved:
• the termination with and the services of Brandywine Global Investment Management, LLC as subadviser for the Morningstar Global Opportunistic Equity Fund effective May 1, 2022;
• the termination with and the services of Franklin Advisers, Inc. as subadviser for the Morningstar Multisector Bond Fund effective May 1, 2022;
• the terms of a subadvisory agreement between Voya Investment Management Company, LLC, the Adviser, and the Trust on behalf of the Morningstar Multisector Bond Fund dated April 1, 2022 pursuant to which Voya will commence serving as a subadviser to the Fund effective May 2, 2022.
Morningstar Funds Trust April 30, 2022
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of Morningstar Funds Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Morningstar Funds Trust (the “Trust”) (comprising Morningstar U.S. Equity Fund, Morningstar International Equity Fund, Morningstar Global Income Fund, Morningstar Total Return Bond Fund, Morningstar Municipal Bond Fund, Morningstar Defensive Bond Fund, Morningstar Multisector Bond Fund, Morningstar Global Opportunistic Equity Fund (formerly, Morningstar Unconstrained Allocation Fund) and Morningstar Alternatives Fund (collectively referred to as the “Funds”)), including the schedules of investments, as of April 30, 2022, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and the period from November 2, 2018 (commencement of operations) through April 30, 2019 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising Morningstar Funds Trust at April 30, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the three years in the period then ended and the period from November 2, 2018 (commencement of operations) through April 30, 2019, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian, agent banks, and brokers or by other appropriate auditing procedures where replies from brokers or agent banks were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ ERNST & YOUNG LLP
We have served as the Trust’s auditor since 2018.
Chicago, Illinois
June 27, 2022
Morningstar Funds Trust April 30, 2022
Fund Expenses (unaudited)
As a shareholder of a series within Morningstar Funds Trust, you incur ongoing costs, including management fees, administration, custody, sub-accounting, trustees and other fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of a six month period and held for the entire period, November 1, 2021 through April 30, 2022.
Actual Expenses
The three columns for each Fund in the table under the "Actual" heading provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the second column for your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The last three columns for each Fund in the table under the "Hypothetical (5% return)" heading provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the last three columns for each Fund in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.
| | | Actual | Hypothetical (5% return) |
| | Annualized
Expense
Ratio | Beginning
Account Value | Ending
Account Value | Expenses Paid*
During Period | Beginning
Account Value | Ending
Account Value | Expenses Paid *
During Period |
| Morningstar U.S. Equity Fund | 0.84% | $1,000.00 | $896.50 | $3.95 | $1,000.00 | $1,020.63 | $4.21 |
| Morningstar International Equity Fund | 0.99 | 1,000.00 | 856.20 | 4.56 | 1,000.00 | 1,019.89 | 4.96 |
| Morningstar Global Income Fund | 0.64 | 1,000.00 | 919.50 | 3.05 | 1,000.00 | 1,021.62 | 3.21 |
| Morningstar Total Return Bond Fund | 0.52 | 1,000.00 | 889.10 | 2.44 | 1,000.00 | 1,022.22 | 2.61 |
| Morningstar Municipal Bond Fund | 0.58 | 1,000.00 | 938.40 | 2.79 | 1,000.00 | 1,021.92 | 2.91 |
Morningstar Funds Trust April 30, 2022
Fund Expenses (unaudited) (continued)
| | | Actual | Hypothetical (5% return) |
| | Annualized
Expense
Ratio | Beginning
Account Value | Ending
Account Value | Expenses Paid*
During Period | Beginning
Account Value | Ending
Account Value | Expenses Paid *
During Period |
| Morningstar Defensive Bond Fund | 0.48% | $1,000.00 | $970.70 | $2.35 | $1,000.00 | $1,022.41 | $2.41 |
| Morningstar Multisector Bond Fund | 0.79 | 1,000.00 | 897.90 | 3.72 | 1,000.00 | 1,020.88 | 3.96 |
| Morningstar Global Opportunistic Equity Fund | 0.82 | 1,000.00 | 937.40 | 3.94 | 1,000.00 | 1,020.73 | 4.11 |
| Morningstar Alternatives Fund | 1.16 | 1,000.00 | 983.10 | 5.70 | 1,000.00 | 1,019.04 | 5.81 |
| | | | | | | | |
| * | Expenses are equal to the Fund's annualized expense ratios, multiplied by the average account value over the period, multiplied by [181/365] (to reflect the one-half year period). |
Morningstar Funds Trust April 30, 2022
Tax Information (unaudited)
LONG-TERM CAPITAL GAIN — The following Funds designated the below amounts as long-term capital gains, pursuant to Section 852(b)(3)(C) of the Code, for the fiscal year ended April 30, 2022:
| Fund | Long-Term Capital Gain | |
| Morningstar U.S. Equity Fund | $79,568,384 | |
| Morningstar International Equity Fund | 13,660,294 | |
| Morningstar Global Income Fund | 7,672,267 | |
| Morningstar Global Opportunistic Equity Fund | 276,622 | |
| Morningstar Alternatives Fund | 193,123 | |
CORPORATE DIVIDENDS-RECEIVED DEDUCTION (DRD) — A percentage of the dividends distributed during the fiscal year ended April 30, 2022 for the following Funds qualifies for the dividends-received deduction for corporate shareholders:
| Fund | | Corporate DRD
Percentage (%) |
| Morningstar U.S. Equity Fund | | 6 |
| Morningstar International Equity Fund | | —* |
| Morningstar Global Income Fund | | 4 |
| Morningstar Defensive Bond Fund | | 13 |
| Morningstar Multisector Bond Fund | | —* |
| Morningstar Global Opportunistic Equity Fund | | 1 |
| Morningstar Alternatives Fund | | 2 |
* Amount rounds to less than 0.5%
QUALIFIED DIVIDEND INCOME (QDI) — Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the following percentages of ordinary dividends paid during the fiscal year ended April 30, 2022, are designated as “qualified dividend income”, as defined in the Act:
| Fund | | QDI
Percentage (%) |
| Morningstar U.S. Equity Fund | | 7 |
| Morningstar International Equity Fund | | 27 |
| Morningstar Global Income Fund | | 39 |
| Morningstar Defensive Bond Fund | | 13 |
| Morningstar Multisector Bond Fund | | 1 |
| Morningstar Global Opportunistic Equity Fund | | 15 |
| Morningstar Alternatives Fund | | 3 |
FOREIGN TAX CREDIT — The Funds below intend to make an election that will allow shareholders to treat their proportionate share of foreign taxes paid by the Fund as having been paid by them. The amounts per share which represent income from sources within, and taxes paid to, foreign countries are as follows:
| Fund | Foreign Tax Credit | Foreign Source Income |
| Morningstar International Equity Fund | $0.03 | $0.21 |
Morningstar Funds Trust April 30, 2022
Trustees and Officers (unaudited)
| Name and Year of Birth | Position with
the Trust,
Term of Office and Length of Time Served | Principal
Occupation During
Past Five Years | Number of
Portfolios
in Fund
Complex
Overseen by
Trustees | Other
Directorships
Held During Past
Five
Years |
| Independent Trustees of the Trust(1) | | |
Theresa Hamacher
(1960) | Trustee and Chairperson of the Board since March 2018 | President of Versanture Consulting since 2015 | 9 | Calamos Investment Trust from 2015 to 2017 |
Linda D. Taylor
(1952) | Trustee since April 2018 | Chairman and Chief Executive Officer of Clifford Swan Investment Counselors from 2010 to 2020 | 9 | San Pasqual Fiduciary Trust Company Since 2011 |
Barry P. Benjamin
(1957) | Trustee since July 2018 | Affiliate Instructor at Loyola University, Maryland since 2020; Partner at PricewaterhouseCoopers LLP from 1991 to 2018; Global Asset and Wealth Management Sector Leader at PricewaterhouseCoopers LLP from 2010 to 2017 | 9 | None |
Timothy A. Reese
(1964) | Trustee since June 2022 | CEO of Pennsylvania Municipal Retirement System since November 2020; CEO of Forge Intellectual Capital, LLC since October 2008; State Treasurer/CEO Commonwealth of Pennsylvania Treasury Department from 2015 to 2017 | 9 | Ben Franklin Technology Partners of Southeastern Pennsylvania since 2019; Radius Global Solutions, LLC since 2021; Innovate Capital, LLC since 2021 |
Morningstar Funds Trust April 30, 2022
Trustees and Officers (unaudited) (continued)
| Name and Year of Birth | Position with
the Trust,
Term of Office and Length of Time Served | Principal
Occupation During
Past Five Years | Number of
Portfolios
in Fund
Complex
Overseen by
Trustees | Other
Directorships
Held During Past
Five
Years |
| Interested Trustee of the Trust | | |
Daniel E. Needham(2)
(1978) | Trustee
President and Principal Executive Officer since 2017 | President of Morningstar Inc.’s investment management group, Morningstar Investment Management, LLC and Morningstar Investment Services, LLC since 2015; Chief Investment Officer of Morningstar, Inc.'s investment management group from 2013 to July 2021 | 9 | None |
| Officers of the Trust | | |
Tracy L. Dotolo
(1976) | Principal Financial Officer and Treasurer since March 2018 | Senior Director at Foreside Fund Officer Services, LLC since May 2016 | N/A | N/A |
D. Scott Schilling
(1960) | Chief Compliance Officer, Anti-Money Laundering Compliance Officer, and Secretary since March 2018 | Chief Compliance Officer at Morningstar Investment Management, LLC from January 2000 to November 2018; Chief Compliance Officer at Morningstar Investment Services LLC from July 2001 to November 2018; Chief Compliance Officer at Morningstar Research Services LLC from its inception in November 2016 to November 2018; Global Chief Compliance Officer at Morningstar, Inc. from July 2013 to October 2020 | N/A | N/A |
Morningstar Funds Trust April 30, 2022
Trustees and Officers (unaudited) (continued)
| Name and Year of Birth | Position with
the Trust,
Term of Office and Length of Time Served | Principal
Occupation During
Past Five Years | Number of
Portfolios
in Fund
Complex
Overseen by
Trustees | Other
Directorships
Held During Past
Five
Years |
Jaime A. Dubon
(1993) | Assistant Treasurer since June 2022 | Mutual Fund Accounting Manager at Morningstar Investment Management, LLC since June 2021; Senior Financial Reporting Analyst from September 2019 to June 2021 and Financial Reporting Analyst from August 2017 to August 2019 at Jackson National Asset Management, LLC; Senior Fund Accountant from April 2017 to August 2017 and Fund Accountant from January 2016 to April 2017 at Northern Trust Corporation | N/A | N/A |
| (1) | The trustees of the Trust who are not “interested persons” of the Trust as defined under the 1940 Act (independent trustees). |
| (2) | Daniel Needham is an “interested person” of the Trust as defined by the 1940 Act because he is an affiliated person of the adviser. |
Availability of Additional Information About the Trustees and Officers
The Statement of Additional Information includes additional information about the Trustees and Officers and is available without charge, upon request by calling (877) 626-3224.
| | | Morningstar Funds Trust Privacy Policy (unaudited) |
| | | PLEASE READ "OTHER IMPORTANT INFORMATION" SECTION BELOW FOR INFORMATION ABOUT MORNINGSTAR FUNDS TRUST ACCESS TO YOUR PERSONAL INFORMATION |
| |
| Why? | | Financial companies can choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand Morningstar Funds Trust access to your personal information. |
| |
| What? | | Personal information includes, but is not limited to: |
| | ► | Your name, address, phone number, and email address; |
| | ► | Your social security number or other unique identifier; |
| | ► | Your account information, such as account balance and transactions (including account transaction history); |
| | ► | Your demographic information, such as age, income, investment preferences, investment experience, and risk profile. |
| |
| How? | | All financial companies need to share clients’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their clients’ personal information; the reasons Trust chooses to share; and whether you can limit this sharing. |
| Reasons financial companies can share your personal information | Does Morningstar
Funds Trust share? | Can you limit
this sharing? |
For our everyday business purposes—such as to process your
transactions, maintain your account(s), or respond to court orders and
legal investigations. | See “Other Important
Information” below. | No |
| For our marketing purposes—to offer our products and services. | No | N/A |
| For joint marketing with other financial companies. | No | N/A |
For our affiliates’ everyday business purposes—information about
your transactions and experiences. | No | N/A |
For our affiliates’ everyday business purposes—information about
your creditworthiness. | No | N/A |
| For our affiliates to market to you. | No | N/A |
| For nonaffiliates to market to you. | No | N/A |
| |
| Who we are | | Who is providing this notice? Morningstar Funds Trust |
| |
| What we do | | How does Morningstar Funds Trust protect your personal information? |
| | | Security measures are in place to protect against unauthorized access to, or unauthorized alteration, disclosure or destruction of personal information. Secure data networks are protected by industry standard firewall and password protection systems. |
| | | How does Morningstar Funds Trust collect your personal information? |
| | | We will collect your personal information if you open an account directly with us or if you gave us your personal information; however, please read the "Other Important Information" section below. |
| | | Why can’t you limit sharing? |
| | | Federal law gives you the right to limit only: |
| | ► | sharing for affiliates’ everyday business purposes—information about your creditworthiness; |
| | ► | affiliates from using your information to market to you; |
| | ► | sharing for nonaffiliates to market to you. |
| | | State laws and individual companies’ policies may give you additional rights to limit sharing. |
| |
| Definitions | | Affiliates |
| | | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
| | ► | Morningstar Funds Trust’s investment adviser is Morningstar Investment Management LLC, a wholly owned subsidiary of Morningstar, Inc. Morningstar Investment Services LLC, a wholly owned subsidiary of Morningstar Investment Management LLC, is the sponsor of the Morningstar Managed Portfolios advisory service. |
| | | Nonaffiliates |
| | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
| | ► | The Trust does not share your personal information with nonaffiliates for marketing their services to you. |
| | | Joint marketing |
| | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
| | ► | The Trust does not have such an agreement in place. |
| |
| Other Important Information | | Morningstar Funds Trust ("Morningstar Funds") are available through investment programs provided by financial institutions (each a "Program") |
| | Such Programs include, Morningstar Managed Portfolios, an investment advisory program sponsored by Morningstar Investment Services LLC, investment advisory programs provided by unaffiliated financial advisers, managed account advisory services certain third party retirement plan sponsors (e.g., employers) and/or retirement plan recordkeepers make available to their retirement plan participants, and solutions provided in model marketplaces. The financial institution’s client’s assets are held at a nonaffiliated custodian (“Custodian”) who report buy/sells of Morningstar Funds shares to the Trust’s transfer agent at an aggregate level (e.g., omnibus). Because of this, under normal circumstances, the Trust does not have personal information of the shareholders of the Morningstar Funds. From time-to-time, Morningstar Funds Trust may seek shareholder’s personal information to fulfill regulatory requirements and/or obligations. In those instances, Morningstar Funds Trust will not make your personal information available to anyone other than the above-mentioned affiliates. Morningstar Funds Trust reserves the right to change this policy at any time by distributing and/or posting a new privacy policy without notice. |
Morningstar Funds Trust April 30, 2022
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited)
The Morningstar Funds Trust (the “Trust”) is a Delaware statutory trust organized under the laws of the State of Delaware on March 1, 2017 and registered with the U.S. Securities and Exchange Commission under the Investment Company Act of 1940. The Trust consists of nine (9) series (each series a “Fund”, collectively the “Funds”). Each Fund has an Investment Advisory Agreement with Morningstar Investment Management, LLC (“Morningstar”) and each Fund also has at least one Subadvisory Agreement with a Subadviser to that Fund.
The Funds and their Subadvisers that were approved by the Board during the Fund’s most recent fiscal half year were:
| Morningstar U.S. Equity Fund | Morningstar Municipal Bond Fund |
| • ClearBridge Investments, LLC | • T. Rowe Price Associates, Inc. |
| • Diamond Hill Capital Management, Inc. | • Allspring Global Investments, LLC |
| • Easterly Investment Partners LLC | |
• Massachusetts Financial Services Company
(d/b/a MFS Investment Management) | |
| • Wasatch Advisors, Inc. | Morningstar Defensive Bond Fund |
| • Westwood Management Corp. | • First Pacific Advisors, LP |
| | |
| | Morningstar Multisector Bond Fund |
| Morningstar International Equity Fund | • Franklin Advisers, Inc. ("Franklin")** |
| • Harding Loevner LP | • Loomis, Sayles & Company, L.P. |
| • Harris Associates L.P. | • TCW Investment Management Company LLC |
| • Lazard Asset Management LLC | • Voya Investment Management Company, LLC |
| • T. Rowe Price Associates, Inc | |
| ○ T. Rowe Price International Ltd | Morningstar Global Opportunistic Equity Fund |
| ○ T. Rowe Price Singapore Private Ltd | • Brandywine Global Investment Management, LLC
("Brandywine")** |
| | • Lazard Asset Management LLC |
| Morningstar Global Income Fund | |
| • Cullen Capital Management, LLC | |
| • Western Asset Management Company, LLC* | Morningstar Alternatives Fund |
| | • BlackRock Financial Management, Inc. |
| Morningstar Total Return Bond Fund | ○ Blackrock International Limited |
| • BlackRock Financial Management, Inc. | • SSI Investment Management, LLC |
| ○ Blackrock International Limited | • Water Island Capital, LLC |
| ○ Blackrock (Singapore) Private Limited | |
| • Western Asset Management Company, LLC | |
| | |
*All approvals occurred at the Board’s
March 2022 meeting except that approval of
Western Asset Management Company, LLC
with respect to the Morningstar Global
Income Fund was approved at the Board’s
December 2021 meeting. | **Effective May 1, 2022, Franklin
and Brandywine no longer serve as Subadviser
to the respective Fund. |
Morningstar Funds Trust April 30, 2022
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
Board Approval/Renewal of the Investment Advisory Agreement and the Subadvisory Agreements
One of the primary responsibilities of the Board of Trustees (the “Board”) of the Trust is to determine whether to renew the Funds’ Investment Advisory Agreement with Morningstar Investment Management, LLC (“Morningstar”) and the Funds’ Subadvisory Agreements (together, the “Agreements”). The Funds’ Investment Advisory Agreement and Subadvisory Agreements were scheduled to expire at the end of April 2022. In March 2022, the Board met to consider whether to renew these Agreements for a one-year period, through April 2023.
The Board also considered whether to approve a new Subadvisory Agreement (the “New Subadvisory Agreement”) between MIM and Voya Investment Management (“Voya”) on behalf of the Morningstar Multisector Bond Fund. MIM recommended Voya serve as a subadviser to the Fund as it believes Voya is suited to manage a strategy within the Multisector Bond Fund that will help it meet its overall investment objective. Voya employs an investment grade credit strategy that offers a comprehensive approach to investing in a full range of investment grade U.S. corporate bonds with limited flexibility to invest in below investment grade bonds. The discussion below regarding the Subadvisers applies to Voya as well, other than in cases where the Board was considering and evaluating the prior performance of the Subadvisers for their respective Funds as Voya has not had any prior relationship with the Funds. The Board did consider the investment performance of Voya in managing other investment products as part of its approval process.
The Board decided to renew the Agreements and approve the New Subadvisory Agreement. This note reviews the factors that the Board considered and discusses its conclusions. This introductory section of this note highlights key considerations in the approval/renewal process. The body of this note, which follows, provides more details of the review process undertaken by and the conclusions reached by the Board.
Key Considerations
While the Board reviewed many factors as part of its decision-making process, the Board would like to highlight two of those factors: fund expenses and investment performance.
• Fund Expenses – Fund expenses are an important factor because they directly affect shareholder returns. The Board noted that one of Morningstar’s investment principles - minimizing costs - is consistent with this view. The Board was encouraged by Morningstar’s commitment to lowering costs to shareholders, notably through its implementation of voluntary expense waivers and expense reimbursements.
In its review of Fund expenses, the Board noted that, for seven of the nine Funds, actual total expenses and, for eight of the nine Funds, actual management fees paid as a percentage of average net assets were either at or below the median actual total expenses or actual management fees paid for a peer group of comparable funds. For the Municipal Bond Fund, actual total expenses as a percentage of average net assets exceeded the peer group median by 0.002%. For the U.S. Equity Fund, actual total expenses exceeded the peer group median by 0.006% and actual management fees paid exceeded the peer group median by 0.046%.
Morningstar Funds Trust April 30, 2022
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
The Board discussed with Morningstar management plans for increasing assets in the Funds as a way of reducing the total expense levels through economies of scale. The Board concluded that the fees were fair and reasonable. For more information, see “Fund Expenses” below. Information about the peer groups can be found below under “Renewal of the Agreements.”
• Investment Performance – Fund performance was also important to the Board. In evaluating performance, the Board looked at each Fund’s performance relative to other funds with that invest in similar types of securities, its performance relative to an index benchmark, and its risk-adjusted performance. The Board also considered the limited performance history of the Funds. Performance as compared to peer funds for calendar 2021 was mixed:
| ○ | The Defensive Bond Fund performed in the best performing quintile of its category (i.e., 1st out of 5 performing quintiles, with 1st quintile being the best performing quintile);
|
| ○ | The Municipal Bond Fund, U.S. Equity Fund, Total Return Bond Fund, and Global Opportunistic Equity Fund performed in the middle quintile of their categories (i.e., 3rd out of 5 performing quintiles);
|
| ○ | The Alternatives Fund, Global Income Fund and International Equity Fund performed in the second-lowest performing quintile of their peer groups (i.e., 4th out of 5 performing quintiles); and
|
| ○ | The Multisector Bond Fund performed in the lowest-performing quintile of its category (i.e., 5th out of 5 performing quintiles). |
The Board focused on those Funds with underperformance and extensively discussed the underperformance with Morningstar. The Board noted that Marta Norton, a portfolio manager for certain of the Funds, had been promoted to Chief Investment Officer, Americas, of Morningstar in the third quarter of 2020 and that this was Ms. Norton’s first, full calendar year as Chief Investment Officer, Americas, of Morningstar. The Board also reviewed and noted other personnel changes and enhancements to the investment processes. In this regard, the Board considered MIM’s recommendation that the name of the “Morningstar Unconstrained Allocation Fund” be changed to the “Morningstar Global Opportunistic Equity Fund” and the accompanying investment strategy updates and benchmark changes for such Fund, which included the proposed termination of one of the Fund’s Subadvisers. The Board also considered MIM’s recommendation with respect to the Multisector Bond Fund that one of its Subadvisers be replaced with Voya and the accompanying change in the composition of the Fund’s benchmark to account for the bond strategy expected to be implemented by Voya.
The Board did not believe that any additional changes with respect to these Funds were warranted at the time, especially considering the limited performance history of the Funds, and noted that it would continue to monitor future performance.
For more information, including a discussion of the performance of individual Funds, see “Investment Performance” below.
The Board invites comments from shareholders on this disclosure and how it may be enhanced. Shareholders may email the Board with their suggestions at BoardofTrustees.MorningstarFundsTrust@morningstar.com
Morningstar Funds Trust April 30, 2022
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
Note Regarding Diversity, Equity and Inclusion Matters
At the Board’s direction, Morningstar added as part of last year’s renewal process diversity, equity and inclusion questions to the questionnaires presented to the Subadvisers as part of Morningstar’s evaluation process. The Board also posed the same questions to Morningstar as part of its evaluation of Morningstar. The Board took into account responses to these questions as part of its decision-making process, including, but not limited to, progress made in the past year by the Subadvisers and Morningstar regarding diversity, equity and inclusion matters.
Renewal/Approval of the Agreements
At a Board of Trustees meeting on March 9, 2022, the Board unanimously approved the renewal of the Agreements and the New Subadvisory Agreement. The Board determined that the Agreements and the New Subadvisory Agreement, including the investment advisory and subadvisory fees in the agreements, were fair and reasonable.
Prior to making these approvals, the Board considered materials and presentations related to the Agreements. Among the topics addressed in these materials and presentations were:
• The services that Morningstar and each Subadviser provided and would provide to each Fund.
• Morningstar’s investment management operations.
• The investment approach for each Fund and whether this investment approach was being followed by Morningstar and each Subadviser.
• The due diligence conducted on each Subadviser by Morningstar, and Morningstar’s reasons for recommending the retention of each Subadviser and Subadvisory Agreement.
• The due diligence conducted by the Trust’s Chief Compliance Officer with regard to compliance programs and capabilities of Morningstar and each Subadviser.
• The services that the custodian, fund administrator, transfer agent and distributor provided and would provide to each Fund.
• The fees paid and to be paid to service providers to each Fund, including Morningstar and each Subadviser.
• The expense ratio for each Fund, reflecting both the fees paid and to be paid to service providers and expenses incurred and to be incurred directly by each Fund.
• Expense limitation arrangements, to be achieved by fee waivers and expense reimbursements by Morningstar.
The information obtained by the Board during the renewal process included a report prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent analyst. The analysis in the report was based on data from Lipper, Inc.
Morningstar Funds Trust April 30, 2022
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
The report from Broadridge analyzed each Fund’s performance and risk relative to all other funds that invest in similar types of securities. The analysis covered performance for the calendar year 2021.
In addition, the report analyzed each Fund’s expenses relative to a smaller group of comparable funds selected by Broadridge. These “peer groups” of comparable funds were composed of funds with similar investment objectives that were distributed in a similar manner to the Funds (e.g., funds with similar distribution platforms and that are sold as part of a multi-asset solution program).
Because these peer groups contained a limited number of funds, the Board requested that Broadridge prepare “supplemental peer groups” that included funds that are available outside of multi-asset solution programs and received the results of these supplemental peer groups. The Board considered the “supplemental peer groups”, but ultimately concluded that the original peer groups were more appropriate as a comparison than the supplemental peer groups. The Board also noted that quintile rankings for the Funds in the original peer groups as compared to the rankings in the supplemental peer groups were similar, except that there were three additional Funds (International Equity Fund, Total Return Bond Fund and Defensive Bond Fund) that had total expense quintile rankings that were less favorable (i.e., higher expenses) than the middle quintile (i.e., 4th or 5th quintile total expense rankings) and one Fund (Municipal Bond Fund) that had an actual management fee quintile ranking that was less favorable (i.e., higher fee) than the middle quintile (i.e., 4th or 5th quintile actual management fee ranking). The information presented under “Fund Expenses” below is from the original peer group.
The Board noted meaningful differences between the peer groups and the Funds. Specifically, some of the funds in the peer groups have a larger asset base and longer performance history than the Funds. In addition, some of the funds in the peer groups are distributed through propriety sales channels, while the Funds are distributed through non-proprietary channels and as part of an investment advisory solution offered by financial institutions. Despite these differences, the Board concluded that the Broadridge report was helpful in the review process.
In addition, the Board’s deliberations were also informed by the meetings that the Board had held since the prior renewal of the Agreements in 2021 with representatives of Morningstar, certain Subadvisers and the Trust’s Chief Compliance Officer.
Throughout the approval process, the Independent Trustees received assistance from independent counsel. The Independent Trustees met separately with independent counsel. More information about the Independent Trustees and their role is available at https://www.morningstar.com/company/morningstar-funds-governance.
Factors Considered
In making their determination, the Board considered multiple factors. The Board did not quantify or assign relative weights to the factors. Each member of the Board may have assigned different weights to the factors.
The factors considered included:
• The investment performance of each Fund and the performance of Morningstar and each Subadviser in achieving this performance.
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
• Whether each Fund had operated in accordance with its investment objective.
• The fairness of the compensation under the Investment Advisory Agreement and Subadvisory Agreements.
• The expense ratio to be borne by shareholders, considering the combined effect of the pricing structure of each Fund and existing fee waivers and expense reimbursements.
• Morningstar’s investment principles.
• The nature, extent and quality of services that Morningstar and each Subadviser provided and would be expected to provide to each Fund.
• The background, experience, personnel, operations, technology, policies, procedures and compliance functions of Morningstar and each Subadviser, including their experience as managers of other funds and accounts, their investment management approaches and resources, their financial condition and their reputation in the industry.
• The compatibility of each Subadviser’s operations, policies, procedures and compliance functions with those of Morningstar and other service providers to the Funds.
• The Trust’s Chief Compliance Officer’s review of the compliance programs and capabilities of Morningstar and of each Subadviser, including the policies and procedures in place to address actual and potential conflicts of interest.
• Morningstar’s risk management program, especially those aspects of the program related to selecting and overseeing the Subadvisers to each Fund.
• The use of derivatives and other complex instruments to carry out each Fund’s investment goals.
• Each Subadviser’s risk management program.
• Profitability matters and economies of scale.
The following discussion reviews some of the primary components of the Board’s decision to approve the renewal of the Agreements and approve the New Subadvisory Agreement. This discussion is not intended to be exhaustive, but rather summarizes certain factors considered by the Board.
Services Provided
The Board reviewed each Fund’s investment goal, Morningstar’s and each Subadviser’s investment strategy to achieve that goal, and Morningstar’s and each Subadviser’s success in achieving, and ability to continue to achieve, that investment strategy.
The Board considered Morningstar’s investment principles, as well as Morningstar’s values and culture. They concluded that the principles were consistent with shareholder interests and, in light of Morningstar’s values and culture, believe Morningstar has, and will continue to be able to, manage the Funds in a manner consistent with those principles.
The Board took note of Morningstar’s responsibilities as the investment adviser to each Fund which include:
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
• Performance of due diligence of each Subadviser’s risk management, operations, trading activities, technology and financial condition.
• Oversight and monitoring of the day-to-day investment activities of the Subadvisers and the ongoing assessment of their performance.
• Morningstar’s implementation and execution of its research ideas generated using custom exposure portfolios constructed by Morningstar (“Equity Sleeves”).
• Portfolio construction for each Fund, involving asset allocation among Subadvisers, exchange-traded funds, Equity Sleeves, cash and other investments.
• Provision of investment oversight in certain instances.
• Risk management.
• Oversight and monitoring of the Subadvisers’ compliance with the investment mandate, compliance policies and procedures and federal securities laws.
• Reporting to the Board.
• The implementation of the Board’s directives with regard to the Funds.
With respect to the services provided by the Subadvisers, the Board took note of the responsibilities that each Subadviser has with respect to the portion of a Fund’s assets allocated to the Subadviser by Morningstar. These responsibilities include implementing the investment strategies for that portion of each Fund’s assets and ensuring compliance with the investment policies and limitations. The Board considered the performance of the Subadvisers in managing the Funds. The Board considered Morningstar’s rationale for recommending the continued retention of each Subadviser.
The Board considered other investment advisory services offered by Morningstar and each Subadviser; the Board reviewed the allocation of assets and expenses among these services, as well as their fees, the reasons for differences in fees and any potential conflicts in connection with providing these services.
Based on their review, the Board was satisfied with the nature, extent and quality of the overall services provided and to be provided by Morningstar and each Subadviser. The Board was confident in the abilities of Morningstar and each Subadviser to continue to implement the respective investment strategy and to continue to provide quality services to each Fund.
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
Investment Performance
Fund performance was also very important to the Board. In evaluating performance, the Board looked at each Fund’s performance relative to other funds with the same investment objective, its performance relative to its index benchmark, and its risk-adjusted performance. The Board also considered the limited performance history of the Funds.
The Board also considered whether each Fund had operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance. The Board took into account discussions at Board meetings since the Board’s prior renewal of the Agreements in 2021 with representatives of Morningstar about Fund investment performance.
In addition to reviewing absolute and relative Fund performance, the Board periodically considers the appropriateness of Fund performance metrics in evaluating the results achieved. The Board periodically reviews the performance benchmarks for each Fund recommended by Morningstar and the process used by Morningstar to develop its benchmark recommendations; the Board also periodically reviews how these benchmarks are used to evaluate the performance of each Fund, of Morningstar and of each Subadviser.
One of the performance metrics used by the Board in evaluating performance is the Sharpe Ratio. The Sharpe Ratio is a way to measure a fund’s risk-adjusted returns. It measures a fund’s “excess performance” per unit of risk. Excess performance (return above the three-month T-bill) is divided by monthly standard deviation (risk) to assess a fund’s risk-to-return trade-off relative to similar funds. The higher the Sharpe Ratio, the better the fund's historical risk-adjusted performance has been. You can use Sharpe Ratios to directly compare two similar funds to see which delivered more reward per unit of risk taken, or to see how a fund’s risk-adjusted return compares with the average fund in the category or its benchmark.
A summary of the Board’s review of each Fund’s performance follows:
Morningstar Alternatives Fund – The Fund had total returns in the second-lowest performing quintile of multistrategy funds (i.e., 4th out of 5 quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2021 and total returns in the middle performing quintile of multistrategy funds for the three-year period ended December 31, 2021. The Fund outperformed its benchmark of the Morningstar U.S. Cash T-Bill TR USD in both of these periods. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2021 were in the best and second-best performing quintiles, respectively. The Board discussed with Morningstar the reasons for the relative underperformance in the one-year period, which was due, in part, to lagging returns generated by the Fund’s merger arbitrage strategy as a result of regulatory uncertainty around certain M&A transactions.The Board took into account the limited performance history of the Fund, and the Board concluded that no changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar Defensive Bond Fund – The Fund had total returns in the best performing quintile of short-term bond funds (i.e., 1st out of 5 quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2021 and total returns in the middle performing quintile of short-term bond funds for the three-year period ended December 31, 2021. The Fund outperformed its benchmark of the Bloomberg
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
U.S. Aggregate 1-3 Year Index in both of these periods. The Fund’s Sharpe Ratio was in the best performing quintile for the one- and three-year periods ended December 31, 2021. The Board took into account the limited performance history of the Fund, and the Board concluded that no changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar Global Income Fund – The Fund had total returns in the second-lowest performing quintile of world allocation funds (i.e., 4th out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one- and three-year periods ended December 31, 2021. The Fund also underperformed its benchmark of the Morningstar Global Income Blended Index for both of these periods. The Fund’s Sharpe Ratio was in the second-lowest performing quintile for the one- and three-year periods ended December 31, 2021. The Board discussed with Morningstar the reasons for the relative underperformance, which was due to the positioning of the Fund compared to its peers and the impact of currency losses. Morningstar believed that, while the Fund’s only Subadviser underperformed in the one-year period, such underperformance was in line with expectations given the Subadviser’s positioning and the market environment. The Board took into account the limited performance history of the Fund and the approval of a new subadviser for the Fund at its December 15, 2021 Board meeting, and the Board concluded that no further changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar International Equity Fund – The Fund had total returns in the second-lowest performing quintile of foreign large blend funds (i.e., 4th out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one- and three-year periods ended December 31, 2021. The Fund underperformed its benchmark of the Morningstar Global Markets Ex-U.S. Index (net) for both of these periods. The Fund’s Sharpe Ratio was in the second-lowest and lowest performing quintiles for the one- and three-year periods ended December 31, 2021. The Board discussed with Morningstar the reasons for the relative underperformance, which was primarily due to the Fund’s overweight exposure to emerging markets and value stocks, but was in-line with Morningstar’s expectations. The Board took into account the limited performance history of the Fund, and the Board concluded that no changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar Multisector Bond Fund – The Fund had total returns in the lowest performing quintile of multisector bond funds (i.e., 5th out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one- and three-year periods ended December 31, 2021. The Fund underperformed its benchmark of the Morningstar Multisector Bond Blended Index for both of these periods. The Fund’s Sharpe Ratio was in the lowest performing quintile for the one- and three-year periods ended December 31, 2021. The Board discussed with Morningstar the reasons for the relative underperformance, which was primarily due to the allocation to a Subadviser that did not perform as expected. The Board considered Morningstar’s recommendation to approve the New Subadvisory Agreement with the New Subadviser, including Morningstar’s belief that the Fund would be better positioned with an allocation to the New Subadviser. The Board took into account the limited performance history of the Fund, and the Board concluded that no further changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
Morningstar Municipal Bond Fund – The Fund had total returns in the middle performing quintile of muni national intermediate funds (i.e., 3rd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2021 and total returns in the second-lowest performing quintile of muni national intermediate funds for the three-year period ended December 31, 2021. The Fund, however, outperformed its benchmark of the Morningstar Municipal Bond Blended Index for both of these periods. The Fund’s Sharpe Ratio was in the middle performing quintile for the one- and three-year periods ended December 31, 2021. The Board discussed with Morningstar the reasons for the relative underperformance for the three-year period ended December 31, 2021. The Board took into account the limited performance history of the Fund, and the Board concluded that no changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar Total Return Bond Fund – The Fund had total returns in the middle performing quintile of intermediate core bond funds (i.e., 3rd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31,2021 and total returns in the best performing quintile of intermediate core bond funds for the three-year period ended December 31, 2021. The Fund slightly underperformed its benchmark of the Bloomberg U.S. Aggregate Bond Index for the one-year period ended December 31, 2021, but outperformed its benchmark for the three-year period ended December 31, 2021. The Sharpe Ratio was in the second-best and middle performing quintiles for the one- and three-year periods ended December 31, 2021, respectively. The Board took into account the limited performance history of the Fund, and the Board concluded that no changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar Global Opportunistic Equity Fund – The Fund had total returns in the middle performing quintile of world allocation funds (i.e., 3rd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2021 and total returns in the second-best performing quintile of world allocation funds for the three-year period ended December 31, 2021. The Fund outperformed its benchmark of the Morningstar Unconstrained Allocation Blended Index for both of these periods. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2021 were in the middle and second-lowest performing quintiles, respectively. The Board considered MIM’s recommendation that the name of the “Morningstar Unconstrained Allocation Fund” be changed to the “Morningstar Global Opportunistic Equity Fund” and the accompanying investment strategy updates and benchmark change for such Fund, which included the termination of one of the Fund’s Subadvisers. The Board took into account the limited performance history of the Fund, and the Board concluded that no further changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
Morningstar U.S. Equity Fund – The Fund had total returns in the middle performing quintile of large blend funds (i.e., 3rd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2021 and total returns in the lowest performing quintile of large blend funds for the three-year period ended December 31, 2021. The Fund outperformed its benchmark of the Morningstar U.S. Market Index for the one-year period ended December 31, 2021, but underperformed its benchmark for the three-year period ended December 31, 2021. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2021 were in the second-best and lowest performing quintiles, respectively. The Board noted the improvement in relative performance as compared to last year and that such relative improvement would not have a significant impact on the relative performance for the three-year period
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
ended December 31, 2021. The Board took into account the limited performance history of the Fund, and the Board concluded that no changes with respect to the Fund were warranted at the time and noted that it would continue to monitor future performance.
The Cost of Services
The Board considered the cost of the services provided and to be provided and the profits or losses realized by Morningstar and each Subadviser from a relationship with the Funds.
As requested by the Board, Morningstar provided profitability information for each Fund, as well as aggregate profitability information for all of the Funds, using a revenue and cost allocation methodology that was reviewed and discussed with the Board.
The Board noted that each Fund had incurred considerable expenses since its formation and that these expenses were largely absorbed by Morningstar through fee waivers and expense reimbursements. Beyond the waiver and reimbursement agreements, Morningstar paid certain start-up costs that otherwise could have been borne by the Funds.
The Board also considered the fees charged by Morningstar to other clients. The Board noted that Morningstar charges lower fees to some other clients but that the services provided to those accounts, are not similar. Morningstar reviewed with the Board the broader scope of services it provides to the Funds, including management of cash flows as a result of redemptions and purchases, oversight of service providers, preparation of annual registration statement updates, preparation of financial information, and compliance with federal and state laws and regulations. These services require a higher level of infrastructure, including personnel, office space, technology and legal support. Morningstar also highlighted the significant business, reputational and other risks associated with launching, sponsoring and maintaining the Funds.
The Board noted that Morningstar does not have an affiliated entity providing transfer agent, custodial, broker-dealer, fund administration or other services to the Funds. Therefore, Morningstar does not generate additional fees for itself through Fund services provided by related entities. The lack of supplemental sources of revenue was a significant factor to the Trustees.
With regard to the Subadvisers, the Board noted that the subadvisory fees are paid to each Subadviser by Morningstar and are not additional fees borne by each Fund. These fees were the product of arms-length negotiations between Morningstar and each Subadviser. As a result, the costs of the services and the profits of the Subadvisers from their relationships with the Funds were not a material factor in the Board’s consideration of the Subadvisory Agreements.
The Board considered other actual and potential benefits (often called “fall-out benefits”) that accrue to Morningstar and each of the Subadvisers from managing the Funds. These benefits include the acquisition and use of research services by the Subadvisers with commissions generated by the Funds (known as “soft dollar” arrangements). The Board noted that soft dollar arrangements may result in the Funds bearing costs to purchase research that may be used by the Subadvisers with other clients and may reduce the Subadvisers’ expenses.
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
The Board also considered reviews undertaken by the Trust’s Chief Compliance Officer concluding that these arrangements are consistent with regulatory requirements. The Board noted that Morningstar itself does not use soft dollar arrangements.
The Board considered the substantial costs incurred by Morningstar related to the launch of the Funds and, while Morningstar’s revenues increased over the past year, the Board was satisfied that the profitability was not excessive as Morningstar did not generate profits (after corporate expenses are allocated to Fund operations) with respect to the operations of any of the Funds.
Fund Expenses
Fund expenses are an important factor because they directly affect shareholder returns. In reviewing fund expenses, the Board placed emphasis on total expenses as a percentage of assets (after fee waivers and expense reimbursements by Morningstar) because they represent the total costs to shareholders of investing in the Funds. However, the Board also considered the components of total expenses, namely the actual management fee paid (after fee waivers and expense reimbursements by Morningstar), transfer agent expenses, custodial expenses and other expenses. The Board also reviewed, but placed less emphasis on, the contractual management fee before waivers and expense reimbursements.
The Board noted that one of Morningstar’s investment principles for investment management is minimizing costs. In this regard, the Board was encouraged by Morningstar’s commitment to lowering costs to shareholders, notably through its implementation of fee waivers and expense reimbursements by Morningstar.
In its review of Fund expenses, the Board noted that, for seven of the nine Funds, actual total expenses and, for eight of the nine Funds, actual management fees paid as a percentage of average net assets were either at or below the median actual total expenses or actual management fees paid for a peer group of comparable funds. For the Municipal Bond Fund, total expenses as a percentage of average net assets exceeded the peer group median by 0.002%. For the U.S. Equity Fund, total expenses exceeded the peer group median by 0.006% and actual management fees paid exceeded the peer group median by 0.046%. The Board discussed with Morningstar management plans for increasing assets in the Funds as a way of reducing the total expense levels through economies of scale.
Based upon its consideration of all these factors, the Trustees determined that the investment advisory and subadvisory fee structure for each Fund was fair and reasonable.
Economies of Scale
The Board considered economies of scale that may be realized by Morningstar and each Subadviser as each Fund grows larger and the extent to which these economies would be shared with each Fund’s shareholders, including through increased services to the Funds, through expense limitation arrangements, or through fee or expense ratio reductions (such as breakpoints in the fee schedule). The Board noted that Morningstar implemented an expense limitation arrangement which has been and will continue to be reevaluated periodically.
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Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
The Board concluded that economies of scale were not a significant factor with regard to the management fee at this time given the current assets in the Funds and the limited operating history of the Funds and that the expense limitation arrangement is in effect.
Conclusion
After consideration of the foregoing factors, and such other matters as were deemed relevant, and with no single factor being determinative to their decision, the Board—including a majority of the Independent Trustees with the assistance of independent counsel—approved the renewal of the Agreements and approved the New Subadvisory Agreement and concluded that the investment advisory and subadvisory fee structure provided for in the agreements was fair and reasonable.
Morningstar Funds Trust April 30, 2022
Additional Information (unaudited)
Proxy Voting Policies and Proxy Voting Record
The Board has delegated responsibility for decisions regarding proxy voting for securities held by the Funds to the Adviser, which, in turn, has delegated such responsibility to the subadvisers. Each subadviser will vote such proxies in accordance with its proxy policies and procedures, which are available, free of charge, by calling 877-626-3224. Information about how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 may be obtained (1) without charge, upon request, by call 877-626-3224 and (2) on the SEC’s website at http://sec.gov.
Form N-PORT Disclosure
The Trust files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Trust’s Form N-PORT (and its predecessor form, Form N-Q) filings are available on the SEC’s website at http://www.sec.gov.
Morningstar Funds Trust is available to citizens or
legal residents of the United States or its territories through
model portfolios designed and maintained by a financial institution including the Adviser.
Adviser
Morningstar Investment Management LLC
22 West Washington Street
Chicago, Illinois 60602
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Prospectus
Please go to http://connect.rightprospectus.com/Morningstar
to access the Morningstar Funds Trust prospectus.
Shareholder Rights
When you buy shares in a fund of the Morningstar Funds Trust, you become a shareholder of that fund. As a shareholder, you have certain rights and protections, chief among them an independent board of trustees, whose main role is to represent your interests. The Board of Trustees for the Morningstar Funds Trust is committed to representing your interests as well as implementing and maintaining sound fund governance principles. To learn more about the Board of Trustees please go to https://www.morningstar.com/company/morningstar-funds-governance.
This report is general information for the shareholders of the Morningstar Funds. It is not authorized for distribution to prospective investors unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Views, opinions, portfolio holdings and other information expressed or noted herein are as of the end of the reporting period and are subject to change. Such views and opinions are not to be viewed as investment advice.
Item 2. Code of Ethics.
| (a) | As of April 30, 2022, the registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the “Code of Ethics”). |
| (c) | The registrant has not amended its Code of Ethics during the period covered by this report. |
| (d) | The registrant has not granted any waivers, including an implicit waiver, from any provisions of its Code of Ethics during the period covered by this report. |
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR), serving on its audit committee. Barry P. Benjamin and Theresa Hamacher are the “audit committee financial experts” and are “independent” (as each term is defined in Item 3 of Form N-CSR).
Under applicable securities laws and regulations, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liability that are greater than the duties, obligations, and liability imposed on such person as a member of the registrant’s Audit Committee and Board of Trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations or liability of any other member of the registrant’s Audit Committee or Board of Trustees.
Item 4. Principal Accountant Fees and Services.
Item 4(a): Audit Fees
The aggregate fees billed for each of the last two fiscal years for professional services rendered by Ernst & Young LLP (“E&Y”), independent registered public accounting firm, for the audit of the registrant’s annual financial statements or services that are normally provided by the
accountant in connection with statutory and regulatory filings or engagements are $415,000 in 2022 and $360,000 in 2021.
Item 4(b): Audit-Related Fees
The aggregate fees billed in each of the last two fiscal years for assurance and related services by E&Y that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are NONE in 2022 and NONE in 2021.
Item 4(c): Tax Fees
The aggregate fees billed in each of the last two fiscal years for professional services rendered by E&Y for RIC tax compliance and diversification review and tax return review are $193,925 in 2022 and $181,700 in 2021.
Item 4(d): All Other Fees
The aggregate fees billed in each of the last two fiscal years for products and services provided by E&Y, other than the services reported in paragraphs (a) through (c) of this Item are NONE in 2022 and NONE in 2021.
Item 4(e)(1): Pre-Approval Policies and Procedures
Pursuant to the registrant’s Audit Committee Charter adopted on March 9, 2018, the Audit Committee shall, to the extent required by applicable regulations, pre-approve (i) all audit and permitted non-audit services rendered by the independent auditors to a Fund and (ii) all non-audit services rendered by the independent auditors to a Fund’s investment adviser(s) (including any sub-advisers) and to certain of the investment adviser’s affiliates, as applicable. The Audit Committee may implement policies and procedures by which such services are pre-approved other than by the full Committee (for example, by the Committee chair).
Item 4(e)(2): Percentage of Fees Pre-Approved Pursuant to Waiver Provision of Paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Item 4(f): Work Performed by Persons Other than the Principal Accountant
Not applicable.
Item 4(g): Aggregate Non-Audit Fees Disclosure
The aggregate non-audit fees and services billed by E&Y for services rendered to the registrant and service affiliates for the last fiscal year was $193,925 in 2022 and $181,700 in 2021.
Item 4(h): Non-Audit Services and Independent Accountant’s Independence
The registrant’s Audit Committee has considered whether the provision of non-audit services to service affiliates, not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the registered public accountant’s independence in performing audit services.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | The registrant has elected to include the schedule of investments in securities of unaffiliated issuers as part of the report to shareholders filed under Item 1 of this report on Form N-CSR. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report. |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Morningstar Funds Trust
| | |
| By | | /s/ Daniel E. Needham |
| | Daniel E. Needham, President |
| | (Principal Executive Officer) |
Date: July 6, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By | | /s/ Daniel E. Needham |
| | Daniel E. Needham, President |
| | (Principal Executive Officer) |
Date: July 6, 2022
| | |
| By | | /s/ Tracy L. Dotolo |
| | Tracy L. Dotolo, Treasurer |
| | (Principal Financial Officer) |
Date: July 6, 2022
