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, 2023
Item 1. Reports to Stockholders.
| (a) | Report pursuant to Rule 30e-1 |
| 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 | |
| Morningstar Alternatives Fund | |
Regulatory Update
The SEC recently adopted a rule requiring mutual funds to produce “concise and visually engaging” annual and semiannual reports to shareholders. This streamlined format is intended to highlight key information for retail shareholders to permit them to assess and monitor their fund investments. More detailed information that has historically been part of shareholder reports, such as the shareholder letter, financial statements and financial highlights, will not appear in the new streamlined shareholder reports, but may accompany the reports (in the case of the shareholder letter), or will be available free of charge upon request to the fund or via the fund's Form N-CSR filed with the SEC on its EDGAR database. The compliance date for funds to implement streamlined shareholder reports is July 24, 2024; therefore, Morningstar Funds Trust will issue its first streamlined shareholder reports beginning with its October 31, 2024 semi-annual report. The new rule requires that each series of a mutual fund issue a separate streamlined shareholder report. For example, if you are a shareholder of all nine (9) series of the Morningstar Funds Trust, you will receive nine (9) separate streamlined shareholder reports, one for each fund, upon implementation of the new rule. In addition, the new rule requires that a hard copy of a fund’s streamlined shareholder report be mailed to each shareholder, unless the shareholder elects to receive such reports electronically. If you wish to ‘opt-in’ for electronic delivery of Morningstar Funds Trust’s annual and semi-annual shareholder reports, please contact your financial advisor for assistance in enrolling your account in paperless (i.e., electronic) delivery of shareholder materials.
Morningstar Funds Trust April 30, 2023
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, 2022 through April 30, 2023. 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, 2023 and are those of Morningstar Investment Management LLC. 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, 2023
Morningstar Funds Trust April 30, 2023
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, 2023
Who is representing you as a shareholder of a Morningstar Fund?
The Morningstar Funds’ Board of Trustees represents shareholder interests. As of April 30, 2023, 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:
• 3 as women, and 1 as a man; and
• 3 as white and 1 as Asian 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 $148,000 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.
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, 2023
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 $148,000 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 $49,333 a year (i.e., one-third of the base annual retainer) until they have invested $148,000 in the Funds. Except for the Independent Trustee who joined the Board effective April 1, 2023, the Independent Trustees have satisfied this investment requirement as of April 30, 2023. 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, 2023
To Our Shareholders:
Thank you for your continued confidence in Morningstar Funds.
For the fiscal year that relates to this annual report—May 1, 2022 through April 30, 2023—returns for the nine Morningstar Funds were positive excepting Morningstar Total Return Bond Fund, which suffered a 1% loss for the fiscal year. The equity funds—Morningstar US Equity Fund, Morningstar International Equity Fund, and Morningstar Global Opportunistic Equity Fund—each outpaced its respective benchmark for the year ending in April. Similarly, Morningstar Global Income Fund, a fund that owns both stocks and bonds and aims to generate competitive levels of income, finished the one-year stretch ahead of its benchmark.
The Trust’s bond funds—Morningstar Defensive Bond Fund, Morningstar Total Return Bond Fund, Morningstar Municipal Bond Fund, and Morningstar Multisector Bond Fund—were less successful. Each of these funds underperformed its respective benchmark. The Morningstar Alternatives Fund also trailed its benchmark for the fiscal year.
Market Landscape & Cause for Optimism
Looking back, I recognize that 2022 was a particularly trying period for many investors. For the calendar year, U.S. stocks, as represented by the Morningstar US Market Index, were down 19%, the largest calendar year decline since 2008.
It was the decline in fixed income, however, that was particularly painful. U.S. bonds, which are commonly measured by the Bloomberg US Aggregate Bond Index, fell 13% in 2022. This loss is the largest calendar-year decline on record for the index and was poorly timed; investors often expect bond prices to demonstrate resilience when stocks fall in value.
Do we anticipate more of the same disappointing performance in 2023 and beyond? There’s no question that the concerns that roiled markets in 2022 have continued; uncertainty about interest rates and inflation remain. Moreover, we believe additional risks, like geopolitical concerns and the regional banking crisis, could have a chilling effect on the overarching economic and market climate.
We are, nevertheless, more optimistic about prospective returns. Valuations—or the prices investors pay relative to the estimated value of the underlying security—matter a great deal to long-term returns. While our assessment of valuations doesn’t suggest markets are screamingly cheap, we do consider both stocks and bonds better priced than they were at the start of 2022.
We are particularly optimistic about fixed income. Bond returns are heavily dependent on the income generated by regular coupon payments. In the wake of 2022’s losses, income levels have improved across the fixed-income market. We believe the extra padding should both help offset losses and increase returns in bond markets.
Morningstar Funds Trust April 30, 2023
Letter to Shareholders (continued)
Drivers of Fund Performance Last Fiscal Year
The drivers of outperformance for the equity, allocation, and alternative funds vary, though the overarching theme of value resurgence was certainly a tailwind over the fiscal year. By value, I mean stocks that typically trade at low prices relative to their estimated fair values. These “cheaper” stocks outperformed stocks that have higher earnings growth prospects but also carry higher price tags over the past year. This resurgence is the reversal of a long-term trend; growth stocks have outperformed their value brethren for the past several years.
For the underperformers, the drivers again varied by fund. In the case of the Morningstar Total Return Bond Fund, for example, one of the underlying subadvisers, or third-party managers within the Fund, had a difficult stretch in 2022 due to additional exposure to corporate bonds and higher duration, or interest rate exposure. We continually reassess our subadvisers within the Morningstar Funds and continue to have a high conviction in the subadviser in question within the Morningstar Total Return Bond Fund, which has a stronger long-term record than its one-year returns would suggest.
Longer-Term Perspective & Our Continued Commitment
Speaking of longer periods, while we closely watch one-year returns to gauge how robustly each Fund is constructed, we are far more concerned with performance over longer periods. From that lens, the Morningstar Funds are still on the newer side, having been launched less than five years ago. Still, we are modestly pleased with the since-inception track record so far. From the November 2, 2018 inception through April 30, 2023, five of the nine Morningstar Funds—Morningstar International Equity Fund, Morningstar Municipal Bond Fund, Morningstar Defensive Bond Fund, Morningstar Global Opportunistic Equity Fund, and Morningstar Alternatives Fund—were ahead of their respective benchmarks.
We remain focused on constructing robust mutual funds that can generate consistent performance in a range of market environments, thereby extending and improving our long-term track record. In the meantime, we are grateful for the trust you’ve placed in us, and for your partnership in the Morningstar Funds, which we look forward to managing for decades to come.
Marta K. Norton
Chief Investment Officer, Americas
Morningstar Investment Management LLC
1 For additional information on Morningstar® Managed PortfoliosSM and how Morningstar Investment Management LLC provides a global point of view and local-market experience, please visit mp.morningstar.com.
Morningstar Funds Trust April 30, 2023
Fund Information (unaudited)
Morningstar U.S. Equity Fund
| General Information | |
| Net Asset Value Per Share | $10.70 |
| Total Net Assets (millions) | $1,459 |
| Net Expense Ratio(a) | 0.85% |
| Gross Expense Ratio(a) | 0.88% |
| Portfolio Turnover Rate | 53% |
| Number of Issuers | 316 |
| Number of Companies | 317 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Weighted Average Market Capitalization (billions) | $80.95 |
| Price-to-Earnings Ratio(b) | 19.65 |
| Ten Largest Equities (%)(c)(d)(e) | |
| Alphabet, Inc., Class A | 4.2 |
| Microsoft Corp. | 4.0 |
| Amazon.com, Inc. | 3.0 |
| Meta Platforms, Inc., Class A | 2.9 |
| Apple, Inc. | 2.6 |
| Visa, Inc., Class A | 1.5 |
| NVIDIA Corp. | 1.4 |
| Comcast Corp., Class A | 1.1 |
| Verizon Communications, Inc. | 1.1 |
| UnitedHealth Group, Inc. | 1.0 |
| Sector Diversification (%)(c)(d) | |
| Technology | 19.5 |
| Communications | 11.9 |
| Health Care | 11.4 |
| Industrials | 10.1 |
| Financials | 9.8 |
| Consumer Discretionary | 7.9 |
| Consumer Staples | 5.4 |
| Energy | 5.0 |
| Materials | 3.7 |
| Utilities | 2.6 |
| Real Estate | 2.4 |
* 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, 2022, as amended and restated January 1, 2023. 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, 2023, 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, 2023, 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, 2023, 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, 2023
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 use quantitative models to select equity securities based on certain shared characteristics as determined by the Fund's adviser. 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”). The adviser and each subadviser acts 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, 2022 to April 30, 2023, the Fund gained 2.79% and topped the benchmark Morningstar U.S. Market Index’s return of 1.57%.
The 12-month period was marked by two distinct environments. In the first six months, the market fell with growth stocks leading the market lower. The Federal Reserve intensified its rate-hike cycle to combat inflation, and the war in Ukraine helped energy stocks. But the market quickly reversed course in October 2022, as long-term Treasury yields peaked and then began to fall. Large-cap stocks gained broadly in the last six months of the period, with growth stocks leading the rally. With many economists forecasting a recession in 2023, investors renewed their enthusiasm for sectors like technology that didn’t require robust Gross Domestic Product growth to improve revenue and earnings and looked ahead for signs that the Federal Reserve would start cutting rates to stave off a recession. As the period drew to a close in March 2023, the collapse of Silicon Valley Bank and Signature Bank sent regional banks lower on fears that higher interest rates would create losses in banks’ securities portfolios and increase their funding costs.
The Fund lost a bit less ground compared to the benchmark in the first half of the period. Our tilt toward value-oriented sectors, such as energy and financials, and the outperformance of our value-oriented subadvisers relative to their benchmarks, put the Fund in a position to play good defense in the decline. That said, our growth-oriented managers lagged their benchmarks, and our direct investments in mega-cap growth
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar U.S. Equity Fund
stocks lost significant ground. As the correction turned into a rally in the second half of the period, our detractors turned into contributors. The mega-cap growth stocks rebounded strongly, and our growth-oriented managers soundly outperformed their benchmarks. As a result, the Fund outperformed more meaningfully in the second half of the period.
From a positioning perspective, we took advantage of the correction in growth stocks to unwind much of the value tilt we held for most of the past three years. We trimmed our energy exposure after an extended period of strong performance and reduced allocations to our value-oriented managers. As the market sell-off took hold, we funded an allocation to the communications services sector, where key constituents, including Alphabet Inc. and Meta Platforms Inc., had their valuations slashed.
Looking forward, the Fund's exposure to growth- and value-oriented stocks is more balanced than it has been. In the Fund’s first two years, we saw a growing disconnect between growth and value and positioned the Fund toward opportunities in value-oriented sectors such as energy and financials. But the 2022 sell-off in growth stocks narrowed the gap and left us with a more diverse opportunity set. While as of the end of the Fund's fiscal year, we’re still tilting more toward value than growth, the degree is much less pronounced. One area that hasn’t rebounded is small caps, where we’ve been overweight. We continue to be patient with that bias, and we see a path where our subadvisers in the space can add value once the macro headwinds abate.
Dan McNeela, CFA, Senior Portfolio Manager, Morningstar Investment Management LLC
Doug McGraw, CFA, Portfolio Manager, Morningstar Investment Management LLC
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
ClearBridge Investments, LLC
Diversified large-cap growth equity across stable, cyclical and select growth companies.
Diamond Hill Capital Management, Inc.
Targeted exposure to U.S. mid-cap value companies.
Easterly Investment 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.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar U.S. Equity Fund
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 exposure with an emphasis on value.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar U.S. Equity Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year2 | Since Inception3 |
| Morningstar U.S. Equity Fund | 2.79% | 8.28% |
| Morningstar U.S. Market Index1 | 1.57% | 11.15% |
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, 2023 (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, 2022 to April 30, 2023.
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, 2023
Fund Information (unaudited)
Morningstar International Equity Fund
| General Information | |
| Net Asset Value Per Share | $9.94 |
| Total Net Assets (millions) | $804 |
| Net Expense Ratio(a) | 1.00% |
| Gross Expense Ratio(a) | 1.08% |
| Portfolio Turnover Rate | 21% |
| Number of Companies | 411 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Weighted Average Market Capitalization (billions) | $42.78 |
| Price-to-Earnings Ratio(b) | 13.08 |
| Countries Represented | 41 |
| Emerging Markets(c)(d) | 26.8% |
| Ten Largest Equities (%)(c)(d)(e) | |
| Shell PLC | 1.5 |
| Allianz S.E. | 1.4 |
| Tencent Holdings Ltd. | 1.4 |
| Alibaba Group Holding Ltd. | 1.2 |
| Samsung Electronics Co. Ltd. | 1.1 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 1.0 |
| Atlas Copco AB, Class A | 1.0 |
| Lloyds Banking Group PLC | 1.0 |
| Roche Holding A.G. (Genusschein) | 0.9 |
| BNP Paribas S.A. | 0.9 |
| Sector Diversification (%)(c)(d) | |
| Financials | 15.9 |
| Industrials | 13.6 |
| Technology | 12.6 |
| Consumer Discretionary | 12.6 |
| Consumer Staples | 9.4 |
| Health Care | 8.4 |
| Communications | 7.1 |
| Materials | 6.2 |
| Energy | 5.0 |
| Utilities | 0.8 |
| Real Estate | 0.7 |
| Region Diversification (%)(c)(d) | |
| Europe (excluding United Kingdom) | 30.7 |
| Pacific (excluding Japan) | 25.4 |
| Japan | 17.0 |
| United Kingdom | 9.2 |
| Latin America | 3.6 |
| United States | 3.1 |
| Canada | 2.0 |
| Africa | 0.9 |
| Middle East | 0.4 |
* 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, 2022, as amended and restated January 1, 2023. 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, 2023, 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, 2023, 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, 2023, 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.
Morningstar Funds Trust April 30, 2023
Fund Information (unaudited) (continued)
Morningstar International Equity Fund
(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.
Morningstar Funds Trust �� April 30, 2023
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”). The adviser and 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
Over the reporting period from May 1, 2022 to April 30, 2023, the Fund gained 7.61% and topped the benchmark Morningstar Global Markets ex U.S. Index’s return of 2.27%.
The 12-month period was heavily influenced by a rapidly changing macro environment. The war in Ukraine, which started in February 2022, pushed commodity prices higher as Europe worked to replace Russian supplies of oil and gas. It also put another kink in global supply chains that were just starting to untangle in the wake of the COVID disruption. Meanwhile, central bankers in Europe and the U.S. aggressively raised interest rates to combat inflation. Those factors combined to drive the Fund’s benchmark to a 14.6% loss in the first half of the period. But the mood brightened in the second half. A warmer-than-anticipated winter helped Europe cope with its energy transition, and the market began to look ahead to the end of rate hikes. In emerging markets, China suddenly reversed course on its zero-COVID policies and began to focus on supporting economic growth. Those developments spurred a rally as the Fund’s benchmark gained 19.8% in the last six months of the period. Not even the collapse of Credit Suisse in March 2023 was enough to put a dent in the rebound.
The Fund modestly outperformed in the first six months of the period. The Fund’s overweights to Germany and China were headwinds, but the subadvisers performed well, and the Fund’s dedicated energy position provided some ballast. The Fund outperformed by considerable margins in the second half of the period. Our
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar International Equity Fund
value-oriented developed-markets subadviser delivered strong performance, headlining another strong showing from our subadvisers. Also, our China overweight turned into a key contributor amid the country’s relaxation of regulatory pressure on its leading companies and a clear turn away from its zero-COVID policies.
Toward the end of the period, we trimmed allocations to positions that appreciated the most and recycled those allocations to areas that hadn’t gained as much. Part of the reallocation reduced our value tilt, pushing the portfolio to a more balanced position. The other effort was to add to emerging markets, which have underperformed developed markets and become increasingly attractive when examined through our analytical lens of assessing valuations and fundamentals.
Moving forward, we’re closely watching as opportunities in emerging markets open up. We’ve seen South Korea and Brazil join China as attractive opportunities, and we’re currently overweight all three countries. We recognize that emerging markets have been more volatile than developed markets and are more prone to geopolitical risks. At the same time, we seek to benefit from owning stocks in such countries when valuations are compelling, while taking a diversified approach and accounting for risks at the portfolio level.
Dan McNeela, CFA, Senior Portfolio Manager, Morningstar Investment Management LLC
Doug McGraw, CFA, Portfolio Manager, Morningstar Investment Management LLC
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 value-leaning exposure to non-U.S. developed equity markets.
Lazard Asset Management LLC
Provides equity exposure to emerging-markets value companies.
T. Rowe Price Associates, Inc.
Provides exposure to emerging-markets growth companies.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar International Equity Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year2 | Since Inception3 |
| Morningstar International Equity Fund | 7.61% | 5.34% |
| Morningstar Global Markets ex U.S. Index (net)1 | 2.27% | 5.20% |
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, 2023 (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, 2022 to April 30, 2023.
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, 2023
Fund Information (unaudited)
Morningstar Global Income Fund
| General Information | |
| Net Asset Value Per Share | $9.14 |
| Total Net Assets (millions) | $215 |
| Net Expense Ratio(a) | 0.69% |
| Gross Expense Ratio(a) | 0.69% |
| Portfolio Turnover Rate | 63% |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Equity Portfolio (44.9%) | |
| Number of Common Stocks | 128 |
| Five Largest Sectors (%)(b)(c) | |
| Financials | 7.0 |
| Health Care | 5.6 |
| Consumer Staples | 4.6 |
| Technology | 4.3 |
| Materials | 4.3 |
| Ten Largest Equities (%)(b)(c)(d) | |
| Broadcom, Inc. | 2.1 |
| OPAP S.A. | 1.9 |
| Medtronic PLC | 1.6 |
| Arca Continental S.A.B. de C.V. | 1.4 |
| TF Administradora Industrial S. de R.L. de C.V. | 1.4 |
| Mercedes-Benz Group A.G. | 1.3 |
| Nippon Telegraph & Telephone Corp. | 1.2 |
| Morgan Stanley | 1.2 |
| Novartis A.G. ADR | 1.1 |
| PowerGrid Infrastructure Investment Trust | 1.1 |
| Fixed Income Portfolio (40.5%) | |
| Number of Issuers | 327 |
| Sector Diversification (%)(b)(e) | |
| Corporate | 9.0 |
| Asset Backed Securities | 5.2 |
| Energy | 4.4 |
| Mortgage Securities | 4.2 |
| Consumer Discretionary | 4.1 |
| Industrials | 3.7 |
| Financials | 2.1 |
| Government | 2.0 |
| Communications | 1.7 |
| Materials | 1.3 |
| Health Care | 1.1 |
| Technology | 0.7 |
| Consumer Staples | 0.4 |
| Real Estate | 0.3 |
| Utilities | 0.3 |
| Five Largest Issuers (%)(b)(d)(e) | |
| Energy Transfer L.P. | 1.9 |
| BX Trust | 0.7 |
| Ford Motor Co. | 0.7 |
| Freddie Mac - STACR | 0.6 |
| Fannie Mae - CAS | 0.5 |
Morningstar Funds Trust April 30, 2023
Fund Information (unaudited) (continued)
Morningstar Global Income Fund
| Credit Quality (%)(b)(e)(f) | |
| U.S. Agency | 0.3 |
| AAA | 3.0 |
| AA | 0.8 |
| A | 0.6 |
| BBB | 5.8 |
| BB | 11.6 |
| B | 12.5 |
| CCC | 3.0 |
| C | 0.1 |
| Not Rated | 2.8 |
* 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, 2022, as amended and restated January 1, 2023. 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, 2023, 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%, 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, 2023, 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, 2023, 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, 2023
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 up to 60% 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.
The nature of the strategies in this Fund is to engage in active and frequent trading of its portfolio securities which may result in higher portfolio turnover. Turnover is mainly driven by a few strategies employed to help manage duration and curve risk.
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”). The adviser and 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 gained 1.98% for the fiscal year ending April 30, 2023, outperforming the Fund’s blended benchmark (50% Morningstar Global Markets NR Index, 50% Bloomberg Multiverse Total Return Index), which returned -0.12% for the same period.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Global Income Fund
The past fiscal year has been a volatile period and can be marked by two distinct halves for global markets. In the first five months since May 2022, we saw that global markets continued to remain under pressure given the persistently higher-than-expected inflation readings and the resulting hawkish stance from global central banks. Interest rates rose quickly since August 2022 amid concerns around sticky inflation. During this period, both equity and credit assets lost ground. Within equity, the U.S. market posted a smaller loss than both non-U.S. developed and emerging-markets equity, and value outperformed growth slightly as the energy sector held up significantly better than the rest of the market.
The market quickly shifted to rally mode since the fourth quarter of 2022 on tentative signs that near-term energy prices and inflation may be peaking. The positive momentum was briefly disrupted in March 2023 by the banking crisis but quickly resumed in April. Value sectors gave back the outperformance over growth sectors during this second-half period, as technology and communication services stocks saw strong rebounds. European stocks enjoyed a period of strong relative outperformance compared to the rest of the world. Interest rates came down from their October high but remained range-bound throughout the rest of the fiscal year. Overall, global equity and credit assets finished the fiscal year slightly above their beginning level, while safer fixed-income assets generally remained under water.
Against this backdrop, our overweight to non-U.S. stocks through dedicated allocations to European financials, U.K. equity, and our subadviser Cullen was the biggest performance contributor. Despite the rising interest rates, our credit subadviser Western managed to post a slightly positive return in the past fiscal year and outperformed the broad fixed-income benchmark. On the other hand, positions in U.S. dividend stocks weighed on performance, as value underperformed growth since we introduced a dedicated position in the Fund in late 2022. Our allocations to preferred stocks and long-term U.S. Treasury bonds were performance drags given the recent banking crisis and the higher interest-rate environment.
Throughout the year, we continued to adjust the positioning of the Fund as we moved along the market cycle. In the beginning of the fiscal year, as interest rates moved sharply higher, we shifted to a small fixed-income overweight given the higher income potential from fixed-income assets. Later in the year, a dedicated U.S. dividend stock position was introduced to close the U.S. equity underweight, as we saw European stocks’ valuation getting richer. More recently, we took advantage of the deeply inverted yield curve and added to short-term U.S. Treasury bonds, a position that generates attractive yield and can also serve as dry powder in an event of equity and credit sell-off. Overall, we believe that the Fund is well positioned in this volatile market environment.
Marta Norton, CFA, Chief Investment Officer and Portfolio Manager, Morningstar Investment Management LLC
Richard M. Williamson, CFA, CIPM, Senior Portfolio Manager, Morningstar Investment Management LLC
Hong Cheng, CFA, Portfolio Manager, Morningstar Investment Management LLC
Investment Adviser:
Morningstar Investment Management LLC
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Global Income Fund
Investment Subadvisers:
Cullen Capital Management, LLC
Global income manager 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, 2023
Performance Summary (unaudited) (continued)
Morningstar Global Income Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year2 | Since Inception3 |
| Morningstar Global Income Fund | 1.98% 4 | 4.47% |
| Morningstar Global Income Blended Index1 | -0.12% | 4.18% |
| Morningstar Global Income Blended Index (prior composition) 1 | 0.77% | 6.23% |
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 and the Morningstar Global Income Blended Index (prior composition) ("the Indices") from its inception (November 2, 2018) to April 30, 2023 (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 Indices are not available for direct investment, are unmanaged and do 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 50% Morningstar Global Markets NR Index and 50% Bloomberg Multiverse Total Return Index. Previously, the Morningstar Global Income Blended Index was composed of 75% Morningstar Global Markets NR Index and 25% 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 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, 2022 to April 30, 2023.
3Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
4Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from the amount reported in the Financial Highlights.
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, 2023
Fund Information (unaudited)
Morningstar Total Return Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.06 |
| Total Net Assets (millions) | $813 |
| Net Expense Ratio(a) | 0.55% |
| Gross Expense Ratio(a) | 0.73% |
| Portfolio Turnover Rate | 302% |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 6.6 |
| Non-USD Exposure(c)(d)(e) | 0.2% |
| Five Largest Issuers (%)(c)(d)(f) | |
| U.S. Treasury | 11.1 |
| Federal National Mortgage Association | 10.1 |
| Government National Mortgage Association | 7.0 |
| Federal Home Loan Mortgage Corporation | 6.9 |
| Fannie Mae or Freddie Mac | 2.8 |
| Credit Quality (%)(c)(d)(g) | |
| U.S. Treasury | 11.2 |
| U.S. Agency | 12.9 |
| AAA | 6.0 |
| AA | 1.4 |
| A | 9.4 |
| BBB | 13.8 |
| BB | 1.4 |
| CCC | 0.1 |
| CC | 0.1 |
| Not Rated | 14.6 |
| Sector Diversification (%)(c)(d) | |
| Mortgage Securities | 30.7 |
| Government | 12.7 |
| Financials | 6.4 |
| Asset Backed Securities | 4.3 |
| Energy | 3.9 |
| Communications | 2.2 |
| Technology | 1.9 |
| Industrials | 1.8 |
| Health Care | 1.7 |
| Utilities | 1.6 |
| Consumer Discretionary | 1.1 |
| Consumer Staples | 1.0 |
| Materials | 0.8 |
| Real Estate | 0.7 |
| Corporate | 0.1 |
| Region Diversification (%)(c)(d) | |
| United States | 62.5 |
| Latin America | 4.3 |
| Europe (excluding United Kingdom) | 1.7 |
| Pacific (excluding Japan) | 1.0 |
| United Kingdom | 0.5 |
| Canada | 0.4 |
| Middle East | 0.3 |
| Africa | 0.1 |
| Japan | 0.1 |
* 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 August 31, 2022, as amended and restated January 1, 2023. 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, 2023, 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, 2023
Fund Information (unaudited) (continued)
Morningstar Total Return Bond Fund
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 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, 2023, 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, 2023, 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, 2023
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.
The nature of the strategies in this Fund is to engage in active and frequent trading of its portfolio securities which may result in higher portfolio turnover. Turnover is mainly driven by a few strategies employed to help manage duration and curve risk.
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”). The adviser and 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.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Total Return Bond Fund
Investment Commentary
The Morningstar Total Return Bond Fund declined 1.03% for the fiscal year ending April 30, 2023, underperforming the Fund’s benchmark, Bloomberg U.S. Aggregate Bond Index, which returned -0.43% for the same period.
On an absolute basis, rising Treasury yields proved to be a headwind, especially during the first half of the fiscal year. Rising and already elevated inflation led to multiple rate hikes from the Federal Reserve, as it remained aggressive in its tightening campaign. Its hawkish policy, coinciding with the highest level of inflation last seen during the 1980s, led to a sharp increase in Treasury yields over the year. To start 2023, however, investors turned optimistic that inflation would continue trending down and the Federal Reserve’s policy initiative of higher rates would be pausing. It was this optimism that led to a sharp reversal in Treasury yields and lifted risk assets. That said, it wasn’t enough to keep U.S. Treasury performance out of negative territory for the year. Credit markets fared better with U.S. corporates and U.S. high yield returning 0.7% and 1.2% over the year, respectively. The outperformance in corporate credit was primarily driven by relative strength in the second half of the year.
A contributor to the Fund’s performance versus its benchmark was an overweight to investment-grade and high-yield corporate bonds. Credit markets participated strongly in a risk-on rally to start the year and ended the fiscal year with a stretch of positive returns. An out-of-benchmark allocation to U.S. TIPS also helped relative performance. The Fund added exposure to short-term Treasury Inflation-Protected Securities (TIPS) in September 2022, as inflation expectations fell prompting an opportunity to add inflation protection to the portfolio. An overweight to duration during the period offset those gains, as U.S. Treasuries declined following a sharp rise in interest rates. Lastly, out-of-benchmark exposure to emerging-markets debt hurt performance for the year.
Going forward, the Fund appears to be well positioned following a reset of interest rates, which bolsters the long-term outlook for fixed-income assets. In light of a cloudy economic environment over the next year, the portfolio managers have been adding risk on the margin as valuation improves across a variety of sectors. Still, as many asset classes remain near or slightly above long-term averages, the Fund is positioned to be able to seek to take advantage of any further decline in assets by holding a dedicated sleeve of U.S. Treasuries.
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 indexes (IG CDX) as an efficient, low-cost way of adjusting exposures to this sector.
Dan McNeela, CFA, Senior Portfolio Manager, Morningstar Investment Management LLC
Alfonzo Bruno, CFA, Portfolio Manager, Morningstar Investment Management LLC
Hong Cheng, CFA, Portfolio Manager, Morningstar Investment Management LLC
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Total Return Bond Fund
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, 2023
Performance Summary (unaudited) (continued)
Morningstar Total Return Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year2 | Since Inception3 |
| Morningstar Total Return Bond Fund | -1.03% | 1.33% |
| Bloomberg U.S. Aggregate Bond Index1 | -0.43% | 1.42% |
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, 2023 (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, 2022 to April 30, 2023.
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, 2023
Fund Information (unaudited)
Morningstar Municipal Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.87 |
| Total Net Assets (millions) | $331 |
| Net Expense Ratio(a) | 0.59% |
| Gross Expense Ratio(a) | 0.66% |
| Portfolio Turnover Rate | 22% |
| Number of Issuers | 389 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 4.7 |
| Five Largest Issuers (%)(c)(d)(e) | |
| Illinois State | 1.4 |
| Port Authority of New York & New Jersey | 1.2 |
| Maryland State Health & Higher Educational Facilities Authority Revenue | 1.2 |
| Black Belt Energy Gas District Al Gas Project Revenue | 1.0 |
| Colorado State COPS | 1.0 |
| Credit Quality (%)(c)(d)(f) | |
| AAA | 3.0 |
| AA | 30.5 |
| A | 30.4 |
| BBB | 14.0 |
| BB | 2.6 |
| B | 0.2 |
| CCC | 0.1 |
| Not Rated | 4.4 |
| Sector Diversification (%)(c)(d) | |
| General | 15.4 |
| Medical | 13.2 |
| Airport | 9.4 |
| Transportation | 8.2 |
| General Obligation | 6.9 |
| Higher Education | 5.9 |
| Education | 4.0 |
| Development | 3.9 |
| Water | 3.6 |
| Nursing Home | 3.0 |
| Power | 2.6 |
| School District | 2.4 |
| Multifamily Housing | 1.8 |
| Utilities | 1.2 |
| Housing | 1.1 |
| Bond Banks | 0.7 |
| Government | 0.4 |
| Tobacco Settlement | 0.4 |
| Single Family Housing | 0.3 |
| Student Loan | 0.3 |
| Pollution | 0.3 |
| Facilities | 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, 2022, as amended and restated January 1, 2023. 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, 2023, 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, 2023, 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, 2023, 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, 2023
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, 2023
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”). The adviser and 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 returned 1.67%, net of fees, for the fiscal year ending April 30, 2023, underperforming the Fund’s blended benchmark, (60% Bloomberg Municipal Bond Index, 40% Bloomberg Municipal 1-3 Year Bond Index), which gained 2.45% for the same period.
The fiscal year ending April 30, 2023, was characterized by a slew of macro-related uncertainty centered around high inflation and reversing accommodative monetary policy. That said, performance can be characterized as a two-act play. The first act was defined by rising interest rates and uncertainty regarding the path of inflation. This led municipal bond yields higher during the first half of the period. The second act was primarily driven by optimism surrounding the future path of inflation and the possibility of slowing hawkish monetary policy. Municipal bonds rallied as a result during the last six months of the year, as investors embraced an optimistic outlook. The year-ending 2022 was the worst year on record for municipal fund flows, which enhanced the poor results over the fiscal year. However, flows began to stall, and investors took advantage of the repricing within the sector, leading to positive performance during the first four months of 2023.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Municipal Bond Fund
The Morningstar Municipal Bond Fund posted positive results over the period, though underperformed its benchmark. The Fund's out-of-benchmark exposure to below investment-grade municipal bonds caused the Fund to underperform its benchmark, as below investment-grade municpal bonds underperformed investment grade municipal bonds. The Bloomberg Municipal High Yield Index declined 40 basis points versus a gain of 2.9% for the broad municipal index. The Fund’s quality positioning also detracted from performance. An overweight to A and BBB-rated munis detracted from performance, as this cohort underperformed AAA and AA-rated bonds. Similarly, a preference for revenue bonds over general obligation bonds hurt performance as the sectors returned 2.8% and 3.2%, respectively. However, the Fund’s duration positioning helped performance for the year. Despite a significant climb in interest rates over the first half of the period, intermediate and long-bond exposure outperformed that of shorter-dated debt.
Dan McNeela, CFA, Senior Portfolio Manager, Morningstar Investment Management LLC
Alfonzo Bruno, CFA, Portfolio Manager, Morningstar Investment Management LLC
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadvisers:
Allspring Global Investments, LLC
Exposure to intermediate and short-term municipal bonds and derivatives, including investment-grade and below-investment-grade securities.
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.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Municipal Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year2 | Since Inception3 |
| Morningstar Municipal Bond Fund | 1.67% | 1.83% |
| Morningstar Municipal Bond Blended Index1 | 2.45% | 1.81% |
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, 2023 (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, 2022 to April 30, 2023.
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, 2023
Fund Information (unaudited)
Morningstar Defensive Bond Fund
| General Information | |
| Net Asset Value Per Share | $9.49 |
| Total Net Assets (millions) | $135 |
| Net Expense Ratio(a) | 0.52% |
| Gross Expense Ratio(a) | 0.68% |
| Portfolio Turnover Rate | 16% |
| Number of Issuers | 212 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 2.0 |
| Non-USD Exposure(c)(d)(e) | 0.0% |
| Five Largest Issuers (%)(c)(d)(f) | |
| Golub Capital Partners Funding | 2.3 |
| PFS Financing Corp. | 2.2 |
| Cerberus | 2.1 |
| Westlake Automobile Receivable | 1.5 |
| VCP CLO II Ltd | 1.4 |
| Credit Quality (%)(c)(d)(g) | |
| U.S. Treasury | 0.8 |
| U.S. Agency | 0.1 |
| AAA | 18.3 |
| AA | 2.2 |
| A | 4.0 |
| BBB | 1.3 |
| BB | 1.6 |
| B | 3.4 |
| CCC | 0.2 |
| Not Rated | 12.6 |
| Sector Diversification (%)(c)(d) | |
| Asset Backed Securities | 32.8 |
| Mortgage Securities | 4.7 |
| Corporate | 2.1 |
| Financials | 2.0 |
| Government | 0.8 |
| Consumer Discretionary | 0.6 |
| Industrials | 0.6 |
| Real Estate | 0.5 |
| Communications | 0.4 |
| Region Diversification (%)(c)(d) | |
| United States | 35.9 |
| Latin America | 8.0 |
| Canada | 0.5 |
| Europe (excluding United Kingdom) | 0.1 |
* 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 August 31, 2022, as amended and restated January 1, 2023. 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, 2023, 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
Morningstar Funds Trust April 30, 2023
Fund Information (unaudited) (continued)
Morningstar Defensive Bond Fund
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, 2023, 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, 2023, 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, 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, 2023
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”). The adviser and 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 0.63% for the fiscal year ending April 30, 2023, underperforming the Fund’s benchmark (Bloomberg U.S. Aggregate 1-3 Year Index), which returned 1.15% for the same period.
Despite positive performance for the period, rising Treasury yields proved to be a headwind especially during the first half of the fiscal year. Over the period, the U.S. 2-year Treasury rose from 2.6% to 4% by the end of April 2023. Rising and already elevated inflation led to multiple rate hikes from the Federal Reserve, as it remained aggressive in its tightening campaign. Its hawkish policy, coinciding with the highest level of inflation last seen during the 1980s, led to the sharp increase in Treasury yields over the year. To start 2023, however, investors turned optimistic that inflation would continue trending down and the Fed’s policy initiative of higher rates
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Defensive Bond Fund
would be pausing. It was this optimism that led to a sharp reversal in Treasury yields and lifted risk assets. During the first half of the fiscal year, fixed-income markets were solidly negative, led by intermediate and long-term Treasuries and U.S. corporates. However, fixed income broadly fated better in the last six months of the period.
A contributor to the Fund’s performance versus its benchmark was an overweight to investment-grade and high-yield corporate bonds. Credit markets participated strongly in a risk-on rally to start 2023 and ended the fiscal year with a stretch of positive returns. Conversely, an out-of-benchmark allocation to short-term U.S. Treasury Inflation-Protected Securities (TIPS) detracted from performance. The Fed’s monetary policy action over the period led to a rise in real rates and a decline in inflation expectations, leading to U.S. TIPS underperformance relative to nominal U.S. Treasuries. An overweight to intermediate-term Treasuries during the period also detracted despite positive absolute returns.
Going forward, we believe the Fund appears to be well positioned following a reset of interest rates, which bolsters the long-term outlook for fixed-income assets. In light of a cloudy economic environment over the next year, the portfolio managers have been adding risk on the margin as valuation improves across a variety of sectors. Still, as many asset classes remain near or slightly above long-term averages, we believe the Fund is positioned to be able to take advantage of any further decline in assets given its allocation to liquid U.S. Treasuries and cash sleeve.
Richard M. Williamson, CFA, CIPM, Senior Portfolio Manager, Morningstar Investment Management LLC
Alfonzo Bruno, CFA, Portfolio Manager, Morningstar Investment Management LLC
Hong Cheng, CFA, Portfolio Manager, Morningstar Investment Management LLC
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, 2023
Performance Summary (unaudited) (continued)
Morningstar Defensive Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year3 | Since Inception4 |
| Morningstar Defensive Bond Fund | 0.63% | 1.49% |
| Bloomberg U.S. Aggregate Bond Index1 | -0.43% | 1.42% |
| Bloomberg U.S. Aggregate 1-3 Year Index2 | 1.15% | 1.27% |
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 Indices") from its inception (November 2, 2018) to April 30, 2023 (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, 2022 to April 30, 2023.
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, 2023
Fund Information (unaudited)
Morningstar Multisector Bond Fund
| General Information | |
| Net Asset Value Per Share | $8.77 |
| Total Net Assets (millions) | $176 |
| Net Expense Ratio(a) | 0.80% |
| Gross Expense Ratio(a) | 0.93% |
| Portfolio Turnover Rate | 131% |
| Number of Issuers | 687 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Effective Duration (years)(b) | 5.4 |
| Non-USD Exposure(c)(d)(e) | 19.8% |
| Five Largest Issuers (%)(c)(d)(f) | |
| Republic of South Africa | 2.4 |
| Mexican Bonos Desarollo | 2.3 |
| Government of Indonesia | 2.2 |
| Nota Do Tesouro Nacional | 1.9 |
| Thailand Government Bond | 1.8 |
| Credit Quality (%)(c)(d)(g) | |
| U.S. Treasury | 0.9 |
| AAA | 0.2 |
| AA | 3.6 |
| A | 14.8 |
| BBB | 27.0 |
| BB | 24.7 |
| B | 13.2 |
| CCC | 3.7 |
| C | 0.1 |
| Not Rated | 6.0 |
| Sector Diversification (%)(c)(d) | |
| Government | 33.4 |
| Financials | 11.1 |
| Energy | 10.1 |
| Communications | 7.5 |
| Consumer Discretionary | 6.0 |
| Health Care | 4.8 |
| Utilities | 4.5 |
| Industrials | 4.1 |
| Technology | 4.0 |
| Materials | 3.4 |
| Consumer Staples | 2.2 |
| Real Estate | 1.9 |
| Mortgage Securities | 0.7 |
| Asset Backed Securities | 0.3 |
| Corporate | 0.2 |
| Region Diversification (%)(c)(d) | |
| United States | 45.1 |
| Latin America | 14.0 |
| Pacific (excluding Japan) | 11.3 |
| Europe (excluding United Kingdom) | 8.8 |
| Middle East | 6.6 |
| Africa | 4.8 |
| Canada | 1.8 |
| United Kingdom | 1.0 |
| Japan | 0.8 |
* Includes, if any, cash, short-term investments, receivables, payables, derivatives and investments rounding to less than 0.05%.
Morningstar Funds Trust April 30, 2023
Fund Information (unaudited) (continued)
Morningstar Multisector Bond Fund
(a) Expense ratios are as of the most recent Prospectus dated August 31, 2022, as amended and restated January 1, 2023. 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, 2023, 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 0.80% (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, 2023, 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, 2023, 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, 2023
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 invests in investment grade and below investment grade fixed-income securities. 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”). The adviser and 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 gained 0.23% for the fiscal year ending April 30, 2023, underperforming the Fund’s blended benchmark (20% Bloomberg US Corp Bond Index, 40% Bloomberg US Corporate High Yield Index, 20% JPM EMBI Global Diversified Index, and 20% JPM GBI-EM Global Diversified Index), which returned 1.83% for the same period.
The past fiscal year has been a volatile period for credit assets, with concerns over rising interest rates, inflation, an ultra-hawkish Fed, and geopolitical uncertainty roiling global markets. During the fiscal year, the Fed hiked rates eight times for a total increase of 450 basis points (bps) in response to persistently high inflation. Treasury yields reacted in historic fashion to both inflation data and aggressive policy changes by pushing up rates across the curve. The 10-year Treasury yield rose 165 bps from August to its peak level in
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Multisector Bond Fund
October 2022 and remained range-bound for the rest of the fiscal year. The fear of a Fed-induced recession pushed credit spreads to widen meaningfully in the beginning of the fiscal year. As inflation became less sticky later in the year, credit spreads compressed from their peak level in the second quarter of 2022 before the banking crisis in March 2023 introduced another short period of heightened spread volatility. Overall, spreads for U.S. high-yield bonds and dollar-denominated emerging-markets bonds ended the fiscal year 64 bps and 46 bps wider, respectively, while the U.S. investment-grade corporate bonds index saw its spread returned to its beginning-of-the-year level. On the other hand, emerging-markets countries entered this round of the tightening cycle earlier than developed countries, leading to less aggressive rate movements. We saw the yield for local currency-denominated emerging-markets countries end the year at a lower level from where it started. U.S. dollar weakening in the later half of the fiscal year helped offset the currency losses from the first half.
Despite the challenging backdrop for fixed-income markets, most credit assets managed to post positive return for the fiscal year. We saw a 6.6% return from local currency-denominated emerging-market bonds, followed by U.S. high yield and U.S. investment-grade corporate bonds, which posted 1.2% and 0.7% returns for the fiscal year, respectively. The only exception was dollar-denominated emerging-market bonds, which lost 0.9% over the fiscal year due to spread widening and their long duration profile.
While our overweight to emerging-market bonds added value from a sector-allocation perspective, all three subadvisers trailed their benchmarks over the fiscal year. Our high-yield subadviser Loomis was hurt by security selection in high-yield, convertible, and securitized bonds. While our emerging-markets bonds subadviser TCW posted strong relative performance from its holdings in hard currency-denominated emerging-market bonds, its local-currency bonds detracted value due to its underweight to Turkey, Poland, and its exposure to South Africa. The newly added investment-grade corporate bond subadviser Voya trailed its benchmark due to its allocation in high-yield bonds in the second quarter of 2022, when high yield significantly underperformed its investment-grade counterparts. The losses were partially offset by strong performance in 2023, but not enough to completely close the performance gap for the fiscal year.
Looking ahead, we believe the Fund is positioned defensively given where we are in the credit cycle. We maintain a high-yield underweight and overweight to higher-quality credit assets. Moreover, our subadvisers place a stronger focus on being selective. Overall, we believe the Fund is well positioned as we navigate through the volatile market environment in the coming year.
Richard M. Williamson, CFA, CIPM, Senior Portfolio Manager, Morningstar Investment Management LLC
Alfonzo Bruno, CFA, Portfolio Manager, Morningstar Investment Management LLC
Hong Cheng, CFA, Portfolio Manager, Morningstar Investment Management LLC
Investment Adviser:
Morningstar Investment Management LLC
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Multisector Bond Fund
Investment Subadvisers:
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
U.S. Investment grade corporate bond strategy with opportunistic exposure to high-yield credits.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Multisector Bond Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year2 | Since Inception3 |
| Morningstar Multisector Bond Fund | 0.23% | 0.70% |
| Morningstar Multisector Bond Blended Index1 | 1.83% | 2.02% |
| Morningstar Multisector Bond Blended Index (prior composition)1 | 2.35% | 2.03% |
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 and the Morningstar Multisector Bond Blended Index (prior composition) ("the Indices") from its inception (November 2, 2018) to April 30, 2023 (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 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 Multisector Bond Fund
This chart does not imply future performance.
1The Morningstar Multisector Bond Blended Index is composed of 40% Bloomberg U.S. Corporate High Yield Index, 20% J.P. Morgan EMBI Global Diversified Index, 20% J.P. Morgan Government Bond Index-Emerging Markets Global Diversified, and 20% Bloomberg U.S. Corporate Bond Index. Prior to May 2, 2022, the Morningstar Multisector Bond Blended Index was composed of 50% Bloomberg U.S. Corporate High Yield Index, 25% J.P. Morgan EMBI Global Diversified 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. The JPMorgan 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. The JPMorgan Government Bond Index-Emerging Markets 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. The Bloomberg U.S. Corporate Bond Index is a broad-based index that measures the investment grade, fixed-rate, taxable, corporate bond market. Investors should note that indices do not reflect the deduction of fees, expenses or taxes.
2Represents performance from May 1, 2022 to April 30, 2023.
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, 2023
Fund Information (unaudited)
Morningstar Global Opportunistic Equity Fund
| General Information | |
| Net Asset Value Per Share | $9.77 |
| Total Net Assets (millions) | $233 |
| Net Expense Ratio(a) | 0.87% |
| Gross Expense Ratio(a) | 0.87% |
| Portfolio Turnover Rate | 47% |
| Number of Issuers | 231 |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Portfolio Characteristics | |
| Weighted Average Market Capitalization (billions) | $54.41 |
| Price-to-Earnings Ratio(b) | 13.83 |
| Countries Represented | 24 |
| Emerging Markets(c)(d) | 5.7% |
| Ten Largest Equities (%)(b)(c)(d) | |
| Fresenius Medical Care A.G. & Co. KGaA | 1.8 |
| Cognizant Technology Solutions Corp., Class A | 1.7 |
| CVS Health Corp. | 1.7 |
| Alphabet, Inc., Class A | 1.5 |
| eBay, Inc. | 1.5 |
| H&R Block, Inc. | 1.4 |
| International Game Technology PLC | 1.4 |
| National Grid PLC | 1.2 |
| Secom Co. Ltd. | 1.2 |
| Visa, Inc., Class A | 1.1 |
| Sector Diversification (%)(b)(c) | |
| Communications | 10.4 |
| Health Care | 8.7 |
| Industrials | 7.2 |
| Consumer Discretionary | 7.0 |
| Financials | 4.7 |
| Technology | 4.4 |
| Energy | 3.8 |
| Consumer Staples | 2.5 |
| Utilities | 2.2 |
| Materials | 0.8 |
| Real Estate | 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, 2022, as amended and restated January 1, 2023. 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, 2023, 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%, 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, 2023, 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, 2023, 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 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, 2023
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”). The adviser and 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
Over the reporting period from May 1, 2022 to April 30, 2023, the Fund gained 5.03% and topped the benchmark Morningstar Global Markets NR Index’s return of 1.57%.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Global Opportunistic Equity Fund
On May 2, 2022 the Fund moved to a 100% equity benchmark and positioning transitioned to reflect that. This did not impact relative performance but increased the absolute level of return the Fund generated during this period.
The 12-month period was marked by a variety of factors that drove asset returns. The Federal Reserve aggressively hiked interest rates putting pressure on both fixed income and equities; the conflict in Ukraine had meaningful impacts on energy prices and the European economy; uncertainty around government policies in China impacted not only their domestic equity market but the global economy; and the banking crisis in the U.S. spurred uncertainty around the U.S. economy and the future of the banking sector.
The Fund was able to outperform through this environment for various reasons. Our positions in energy stocks were certainly a tailwind given their strong performance as a consequence of the Russia/Ukraine conflict. Meaningful underweights to the large-cap growth names in the U.S. to begin the period were also a contributor to relative performance, as those names lost meaningful amounts of value in the first half of the 12-month period. Dedicated positions in markets like the U.K. and Japan also outperformed the benchmark. Finally, our subadviser delivered strong returns during this period through active stock selection. Positions that detracted from performance include exposures to US Banks and Small Cap stocks.
From a positioning perspective, we took advantage of the correction in U.S. growth stocks to add exposure to the U.S. broadly, as well as to the communications services sector specifically, where companies such as Meta Platforms Inc. and Alphabet Inc. had become more attractively priced. We funded this increased exposure to the U.S. through trims to our non-U.S. positions that had performed well such as the U.K., Japan, Germany, and European financials.
Looking forward, we believe the Fund is balanced and prepared for a wide variety of market environments given the uncertainty we see in the global economy moving forward. In addition to the increased exposure to the U.S. equity market and growth stocks, we have allocations to idiosyncratic opportunities such as China, Brazil, and South Korea where we see attractive reward-for-risk prospects.
Marta Norton, CFA, Chief Investment Officer and Portfolio Manager, Morningstar Investment Management LLC
Richard M. Williamson, CFA, CIPM, Senior Portfolio Manager, Morningstar Investment Management LLC
Investment Adviser:
Morningstar Investment Management LLC
Investment Subadviser:
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, 2023
Performance Summary (unaudited) (continued)
Morningstar Global Opportunistic Equity Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year3 | Since Inception4 |
| Morningstar Global Opportunistic Equity Fund | 5.03% 5 | 6.65% |
| Morningstar Global Markets NR Index1 | 1.57% | 8.16% |
| Morningstar Unconstrained Allocation Blended Index2 | -0.12% | 4.18% |
Illustration of an assumed investment of $10,000
The following graph depicts the performance of Morningstar Global Opportunistic Equity Fund shares versus the Morningstar Global Markets NR Index and the Morningstar Unconstrained Allocation Blended Index ("the Indices") from its inception (November 2, 2018) to April 30, 2023 (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 Indices are not available for direct investment, are unmanaged and do 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.
1Effective May 2, 2022, the Fund changed its benchmark from the Morningstar Unconstrained Allocation Blended Index to the Morningstar Global NR Index. The Morningstar Global Markets NR Index captures the performance of the stocks located in the developed and emerging countries across the world.
2Prior to May 2, 2022, the Morningstar Unconstrained Allocation Blended Index was 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 indices do not reflect the deduction of fees, expenses or other taxes.
3Represents performance from May 1, 2022 to April 30, 2023.
4Inception Date is November 2, 2018. Returns are annualized for periods greater than 1 year.
5Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from the amount reported in the Financial Highlights.
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, 2023
Fund Information (unaudited)
Morningstar Alternatives Fund
| General Information | |
| Net Asset Value Per Share | $9.78 |
| Total Net Assets (millions) | $275 |
| Net Expense Ratio(a) | 1.36% |
| Gross Expense Ratio(a) | 1.50% |
| Portfolio Turnover Rate | 358% |
| Fund Inception | November 2, 2018 |
| No sales charges or distribution fees |
| Allocation Strategy Type (%)(b) | |
| Convertible Arbitrage | 21.0 |
| Merger Arbitrage | 22.4 |
| Multi-Strategy | 40.8 |
| Short-term investments and ETFs | 15.8 |
| Region Diversification (%)(c)(d) | |
| United States | 73.3 |
| Europe (excluding United Kingdom) | 2.1 |
| Canada | 1.5 |
| Pacific (excluding Japan) | 1.2 |
| United Kingdom | 1.1 |
| Japan | 0.7 |
| Latin America | 0.1 |
* 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 August 31, 2022, as amended and restated January 1, 2023. 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, 2023, 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, 2023, 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, 2023, 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, 2023
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.
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.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
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.
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.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
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.
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”). The adviser and 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.
The nature of the strategies in this Fund is to engage in active and frequent trading of its portfolio securities which may result in higher portfolio turnover. Turnover is mainly driven by a few strategies employed to help manage duration and curve risk.
Investment Commentary
The Morningstar Alternatives Fund returned 0.42% for the fiscal year ending April 30, 2023, underperforming the Fund’s benchmark (the Morningstar U.S. Cash T-Bill TR USD Index), which returned 3.02% for the same period.
This period was characterized by high levels of volatility, as inflation and rising interest rates roiled equity and fixed-income markets alike. The Fund generated returns that were competitive with broad equity and fixed-income indexes over this time frame while experiencing meaningfully less volatility—a testament to its diversifying properties relative to traditional assets.
The Fund continues to feature allocations to three main sub-strategies: convertible arbitrage, merger arbitrage, and systematic multi-strategy, which is a combination of approaches featuring global macro, long-short equity, and long-only directional asset allocation. All three sub-strategies delivered modestly positive returns on a gross-of-fees basis over the 12-month period ended April 30, 2023. SSI Investment Management, the Fund’s convertible arbitrage manager, was aided by income generated from the convertible bonds it holds and volatility monetization, while price movements weighed on its returns. Water Island Capital, the Fund’s merger arbitrage manager, generated positive returns despite a challenging environment for mergers and acquisitions. Lastly, BlackRock Financial Management, the Fund’s systematic multi-strategy manager, generated positive returns as its defensive equity long/short sleeve performed well throughout 2022 and its directional asset-allocation sleeve performed well in the first four months of 2023.
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, the use of derivatives to hedge interest rate and credit exposure outweighed the benefits from option writing. Derivatives did not have a material impact on the Fund’s systematic multi-strategy sleeve.
Morningstar Funds Trust April 30, 2023
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
We are constructive about the Fund’s return prospects on a go-forward basis. Higher interest rates enhance the return profile of the Fund’s sub-strategies and the Fund’s managers continue to find ample opportunities to deploy capital today. As always, we thank you for your continued confidence in our investment approach.
Marta Norton, CFA, Chief Investment Officer and Portfolio Manager, Morningstar Investment Management LLC
Richard M. Williamson, CFA, CIPM, Senior Portfolio Manager, Morningstar Investment Management LLC
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, 2023
Performance Summary (unaudited) (continued)
Morningstar Alternatives Fund
Performance at a glance
| Average Total Returns as of 04/30/23 | 1 year3 | Since Inception4 |
| Morningstar Alternatives Fund | 0.42% | 2.56% |
| Bloomberg U.S. Aggregate Bond Index1 | -0.43% | 1.42% |
| Morningstar U.S. Cash T-Bill TR USD2 | 3.02% | 1.38% |
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 Indices") from its inception (November 2, 2018) to April 30, 2023 (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, 2022 to April 30, 2023.
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, 2023
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Common Stocks – 89.7% |
| Aerospace & Defense – 2.0% |
| Boeing (The) Co.* | | 9,598 | $ 1,984,674 |
| General Dynamics Corp. | | 39,076 | 8,531,854 |
| Moog, Inc., Class A | | 15,468 | 1,393,822 |
| Northrop Grumman Corp. | | 12,593 | 5,808,773 |
| Raytheon Technologies Corp. | | 117,341 | 11,722,366 |
| | | | 29,441,489 |
| Apparel & Textile Products – 0.7% |
| Hanesbrands, Inc.(a) | | 159,597 | 836,288 |
| NIKE, Inc., Class B | | 73,200 | 9,275,904 |
| VF Corp. | | 31,663 | 744,397 |
| | | | 10,856,589 |
| Asset Management – 0.7% |
| BlackRock, Inc. | | 3,778 | 2,535,794 |
| Cohen & Steers, Inc. | | 29,905 | 1,796,094 |
| Hamilton Lane, Inc., Class A | | 41,293 | 3,042,468 |
| KKR & Co., Inc. | | 27,716 | 1,470,888 |
| Stifel Financial Corp. | | 11,045 | 662,369 |
| | | | 9,507,613 |
| Automotive – 0.9% |
| Aptiv PLC* | | 49,871 | 5,129,731 |
| BorgWarner, Inc. | | 14,519 | 698,800 |
| Fox Factory Holding Corp.* | | 18,593 | 2,061,406 |
| Methode Electronics, Inc. | | 18,606 | 762,660 |
| Tesla, Inc.* | | 16,300 | 2,678,253 |
| XPEL, Inc.* | | 22,554 | 1,647,795 |
| | | | 12,978,645 |
| Banking – 2.9% |
| Atlantic Union Bankshares Corp. | | 45,734 | 1,308,907 |
| Bank OZK | | 135,337 | 4,834,238 |
| Banner Corp. | | 14,858 | 741,711 |
| BOK Financial Corp. | | 16,296 | 1,366,746 |
| Citigroup, Inc. | | 66,986 | 3,153,031 |
| City Holding Co. | | 16,417 | 1,497,066 |
| First Bancorp | | 42,305 | 1,302,148 |
| JPMorgan Chase & Co. | | 69,525 | 9,611,136 |
| National Bank Holdings Corp., Class A | | 22,345 | 710,571 |
| PNC Financial Services Group (The), Inc. | | 19,200 | 2,500,800 |
| Provident Financial Services, Inc. | | 39,129 | 683,975 |
| Renasant Corp. | | 49,116 | 1,381,142 |
| Sandy Spring Bancorp, Inc. | | 31,297 | 703,557 |
| Seacoast Banking Corp. of Florida | | 61,095 | 1,355,698 |
| | | Number
of Shares | Value |
| Banking (Continued) |
| Triumph Financial, Inc.* | | 25,690 | $ 1,334,852 |
| Truist Financial Corp. | | 166,514 | 5,425,026 |
| Veritex Holdings, Inc. | | 41,432 | 713,045 |
| Webster Financial Corp. | | 115,094 | 4,293,006 |
| | | | 42,916,655 |
| Beverages – 1.8% |
| Diageo PLC (United Kingdom) | | 86,813 | 3,960,071 |
| Duckhorn Portfolio (The), Inc.* | | 107,468 | 1,622,767 |
| Monster Beverage Corp.* | | 220,384 | 12,341,504 |
| PepsiCo, Inc. | | 12,996 | 2,480,807 |
| Primo Water Corp. | | 370,459 | 5,627,272 |
| | | | 26,032,421 |
| Biotechnology & Pharmaceuticals – 3.6% |
| Certara, Inc.* | | 30,585 | 739,239 |
| Eli Lilly and Co. | | 8,900 | 3,523,154 |
| Intra-Cellular Therapies, Inc.* | | 16,265 | 1,010,870 |
| Johnson & Johnson | | 68,449 | 11,205,101 |
| Merck & Co., Inc. | | 66,868 | 7,721,248 |
| Pfizer, Inc. | | 165,148 | 6,422,606 |
| Prestige Consumer Healthcare, Inc.* | | 22,447 | 1,381,164 |
| Roche Holding A.G. (Genusschein) | | 2,815 | 881,490 |
| Viatris, Inc. | | 1,155,911 | 10,784,650 |
| Zoetis, Inc. | | 53,740 | 9,446,417 |
| | | | 53,115,939 |
| Cable & Satellite – 1.3% |
| Charter Communications, Inc., Class A* | | 7,017 | 2,587,168 |
| Comcast Corp., Class A | | 404,059 | 16,715,921 |
| | | | 19,303,089 |
| Chemicals – 2.9% |
| Ashland Global Holdings, Inc. | | 36,354 | 3,693,930 |
| Balchem Corp. | | 23,680 | 3,111,552 |
| Corteva, Inc. | | 16,262 | 993,933 |
| Dow, Inc. | | 84,005 | 4,569,872 |
| DuPont de Nemours, Inc. | | 148,285 | 10,338,430 |
| Ecovyst, Inc.* | | 66,275 | 752,221 |
| Innospec, Inc. | | 31,577 | 3,209,171 |
| International Flavors & Fragrances, Inc. | | 6,408 | 621,320 |
| Livent Corp.* | | 32,178 | 703,089 |
| PPG Industries, Inc. | | 17,777 | 2,493,402 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Chemicals (Continued) |
| Sherwin-Williams (The) Co. | | 35,111 | $ 8,340,267 |
| Stepan Co. | | 15,040 | 1,386,688 |
| Valvoline, Inc. | | 73,043 | 2,523,636 |
| | | | 42,737,511 |
| Commercial Support Services – 0.2% |
| Stericycle, Inc.* | | 19,930 | 909,804 |
| ZipRecruiter, Inc., Class A* | | 74,723 | 1,265,808 |
| | | | 2,175,612 |
| Construction Materials – 0.0%(b) |
| Summit Materials, Inc., Class A* | | 13,076 | 358,413 |
| Containers & Packaging – 0.1% |
| TriMas Corp. | | 45,834 | 1,164,642 |
| Diversified Industrials – 1.7% |
| Eaton Corp. PLC | | 68,300 | 11,414,296 |
| Honeywell International, Inc. | | 23,788 | 4,753,794 |
| Illinois Tool Works, Inc. | | 17,451 | 4,222,095 |
| Parker-Hannifin Corp. | | 13,536 | 4,397,575 |
| | | | 24,787,760 |
| E-Commerce Discretionary – 3.2% |
| Amazon.com, Inc.* | | 416,231 | 43,891,559 |
| Sea Ltd. ADR (Singapore)* | | 42,650 | 3,248,650 |
| | | | 47,140,209 |
| Electric Utilities – 2.4% |
| American Electric Power Co., Inc. | | 15,450 | 1,427,889 |
| Avista Corp.(a) | | 30,613 | 1,349,115 |
| Dominion Energy, Inc. | | 216,090 | 12,347,383 |
| Duke Energy Corp. | | 49,439 | 4,888,528 |
| Exelon Corp. | | 50,864 | 2,158,668 |
| NextEra Energy, Inc. | | 62,200 | 4,766,386 |
| NorthWestern Corp. | | 24,986 | 1,464,679 |
| Southern (The) Co. | | 67,574 | 4,970,068 |
| Xcel Energy, Inc. | | 22,011 | 1,538,789 |
| | | | 34,911,505 |
| Electrical Equipment – 1.6% |
| Johnson Controls International PLC | | 44,107 | 2,639,363 |
| Lennox International, Inc. | | 12,646 | 3,565,034 |
| Novanta, Inc.* | | 17,231 | 2,633,586 |
| nVent Electric PLC | | 152,722 | 6,403,633 |
| Otis Worldwide Corp. | | 9,862 | 841,229 |
| Sensata Technologies Holding PLC | | 62,316 | 2,707,630 |
| | | Number
of Shares | Value |
| Electrical Equipment (Continued) |
| Trane Technologies PLC | | 10,180 | $ 1,891,546 |
| Vertiv Holdings Co. | | 144,416 | 2,154,687 |
| | | | 22,836,708 |
| Engineering & Construction – 0.2% |
| Comfort Systems USA, Inc. | | 10,863 | 1,623,910 |
| Installed Building Products, Inc. | | 10,791 | 1,340,997 |
| | | | 2,964,907 |
| Entertainment Content – 0.8% |
| Activision Blizzard, Inc. | | 20,985 | 1,630,744 |
| Electronic Arts, Inc. | | 12,880 | 1,639,367 |
| Walt Disney (The) Co.* | | 78,298 | 8,025,545 |
| | | | 11,295,656 |
| Food – 1.5% |
| BellRing Brands, Inc.* | | 38,694 | 1,392,597 |
| Hostess Brands, Inc.* | | 55,784 | 1,436,996 |
| J&J Snack Foods Corp. | | 9,572 | 1,466,431 |
| Kellogg Co. | | 24,543 | 1,712,365 |
| Lancaster Colony Corp. | | 16,426 | 3,435,005 |
| Nestle S.A.(c) | | 31,716 | 4,068,832 |
| Post Holdings, Inc.* | | 53,333 | 4,826,103 |
| Seaboard Corp. | | 1,011 | 3,984,422 |
| | | | 22,322,751 |
| Forestry, Paper & Wood Products – 0.3% |
| Boise Cascade Co. | | 14,872 | 1,015,906 |
| Trex Co., Inc.(a)* | | 57,047 | 3,118,189 |
| UFP Industries, Inc. | | 4,882 | 383,335 |
| | | | 4,517,430 |
| Gas & Water Utilities – 0.2% |
| UGI Corp. | | 88,022 | 2,982,185 |
| Health Care Facilities & Services – 2.8% |
| Cigna Corp. | | 22,398 | 5,673,189 |
| CVS Health Corp. | | 47,159 | 3,457,226 |
| Ensign Group (The), Inc. | | 31,450 | 3,053,481 |
| HealthEquity, Inc.* | | 54,983 | 2,938,841 |
| ICON PLC* | | 12,195 | 2,349,855 |
| Laboratory Corp. of America Holdings | | 9,521 | 2,158,506 |
| McKesson Corp. | | 10,285 | 3,746,208 |
| Medpace Holdings, Inc.* | | 10,408 | 2,083,057 |
| Patterson Cos., Inc. | | 51,615 | 1,399,283 |
| UnitedHealth Group, Inc. | | 29,318 | 14,427,095 |
| | | | 41,286,741 |
| Home Construction – 0.5% |
| Century Communities, Inc. | | 11,525 | 776,094 |
| Masco Corp. | | 14,529 | 777,447 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Home Construction (Continued) |
| Masonite International Corp.* | | 15,652 | $ 1,430,749 |
| NVR, Inc.* | | 848 | 4,952,320 |
| | | | 7,936,610 |
| Household Products – 1.0% |
| Central Garden & Pet Co., Class A* | | 21,258 | 751,045 |
| Estee Lauder (The) Cos., Inc., Class A | | 27,200 | 6,710,784 |
| Kimberly-Clark Corp. | | 15,607 | 2,261,298 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 16,270 | 1,314,776 |
| Unilever PLC ADR (United Kingdom) | | 59,702 | 3,315,252 |
| | | | 14,353,155 |
| Industrial Intermediate Products – 0.3% |
| AZZ, Inc. | | 19,739 | 744,753 |
| Janus International Group, Inc.* | | 101,594 | 914,346 |
| RBC Bearings, Inc.* | | 13,145 | 2,984,046 |
| | | | 4,643,145 |
| Industrial Support Services – 1.3% |
| Ferguson PLC | | 9,517 | 1,340,184 |
| W.W. Grainger, Inc. | | 16,499 | 11,476,209 |
| WESCO International, Inc. | | 45,055 | 6,487,920 |
| | | | 19,304,313 |
| Institutional Financial Services – 1.6% |
| Goldman Sachs Group (The), Inc. | | 29,236 | 10,040,812 |
| Moelis & Co., Class A(a) | | 87,798 | 3,325,788 |
| Morgan Stanley | | 52,399 | 4,714,338 |
| Nasdaq, Inc. | | 61,954 | 3,430,393 |
| Piper Sandler Cos. | | 10,217 | 1,383,791 |
| | | | 22,895,122 |
| Insurance – 4.2% |
| Allstate (The) Corp. | | 17,238 | 1,995,471 |
| American International Group, Inc. | | 214,527 | 11,378,512 |
| AMERISAFE, Inc. | | 13,016 | 724,340 |
| Aon PLC, Class A | | 19,557 | 6,359,545 |
| Berkshire Hathaway, Inc., Class B* | | 12,446 | 4,089,133 |
| Brighthouse Financial, Inc.* | | 12,617 | 557,671 |
| BRP Group, Inc., Class A* | | 30,925 | 779,001 |
| Chubb Ltd. | | 25,119 | 5,062,986 |
| Goosehead Insurance, Inc., Class A(a)* | | 18,141 | 1,043,108 |
| | | Number
of Shares | Value |
| Insurance (Continued) |
| Hartford Financial Services Group (The), Inc. | | 26,958 | $ 1,913,749 |
| Loews Corp. | | 18,458 | 1,062,627 |
| Marsh & McLennan Cos., Inc. | | 75,203 | 13,550,829 |
| Progressive (The) Corp. | | 43,910 | 5,989,324 |
| Skyward Specialty Insurance Group, Inc.(a)* | | 18,209 | 389,308 |
| Travelers (The) Cos., Inc. | | 22,637 | 4,100,466 |
| Willis Towers Watson PLC | | 10,628 | 2,461,445 |
| | | | 61,457,515 |
| Internet Media & Services – 8.4% |
| Alphabet, Inc., Class A* | | 568,326 | 61,004,113 |
| Meta Platforms, Inc., Class A* | | 175,714 | 42,227,588 |
| Netflix, Inc.* | | 41,893 | 13,821,758 |
| Uber Technologies, Inc.* | | 180,979 | 5,619,398 |
| | | | 122,672,857 |
| Leisure Facilities & Services – 1.0% |
| Chuy's Holdings, Inc.* | | 19,520 | 680,858 |
| Marriott International, Inc., Class A | | 18,841 | 3,190,535 |
| Papa John's International, Inc. | | 19,661 | 1,470,446 |
| Red Rock Resorts, Inc., Class A | | 144,990 | 7,075,512 |
| Vail Resorts, Inc. | | 5,862 | 1,409,928 |
| | | | 13,827,279 |
| Leisure Products – 0.1% |
| YETI Holdings, Inc.* | | 37,063 | 1,462,135 |
| Machinery – 1.1% |
| Alamo Group, Inc. | | 8,360 | 1,477,463 |
| Albany International Corp., Class A | | 16,470 | 1,502,229 |
| Esab Corp. | | 63,707 | 3,717,940 |
| Federal Signal Corp. | | 26,668 | 1,370,202 |
| Helios Technologies, Inc. | | 29,055 | 1,747,367 |
| Kadant, Inc.(a) | | 15,118 | 2,809,378 |
| Regal Rexnord Corp. | | 25,912 | 3,372,706 |
| | | | 15,997,285 |
| Medical Equipment & Devices – 4.9% |
| Abbott Laboratories | | 33,865 | 3,741,067 |
| Alcon, Inc. (Switzerland)(a) | | 91,014 | 6,596,695 |
| Avanos Medical, Inc.* | | 23,838 | 704,174 |
| Bio-Rad Laboratories, Inc., Class A* | | 12,326 | 5,556,437 |
| Boston Scientific Corp.* | | 116,090 | 6,050,611 |
| CONMED Corp. | | 11,670 | 1,465,402 |
| Danaher Corp. | | 6,368 | 1,508,643 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Medical Equipment & Devices (Continued) |
| Dexcom, Inc.* | | 63,300 | $ 7,680,822 |
| Enovis Corp.* | | 56,632 | 3,298,814 |
| Intuitive Surgical, Inc.* | | 29,260 | 8,813,697 |
| Medtronic PLC | | 32,594 | 2,964,424 |
| Merit Medical Systems, Inc.* | | 8,391 | 682,104 |
| Neogen Corp.* | | 98,572 | 1,697,410 |
| Silk Road Medical, Inc.* | | 14,893 | 655,590 |
| Stryker Corp. | | 22,600 | 6,772,090 |
| Thermo Fisher Scientific, Inc. | | 23,780 | 13,195,522 |
| | | | 71,383,502 |
| Metals & Mining – 0.4% |
| Encore Wire Corp. | | 4,809 | 751,791 |
| Freeport-McMoRan, Inc. | | 114,837 | 4,353,471 |
| | | | 5,105,262 |
| Oil & Gas Producers – 5.0% |
| Antero Midstream Corp. | | 88,535 | 952,637 |
| Cheniere Energy, Inc. | | 35,521 | 5,434,713 |
| Chord Energy Corp. | | 5,748 | 818,113 |
| ConocoPhillips | | 56,084 | 5,770,483 |
| Coterra Energy, Inc.(a) | | 119,654 | 3,063,142 |
| Enbridge, Inc. (Canada) | | 163,940 | 6,518,395 |
| Enerplus Corp. (Canada) | | 47,938 | 717,152 |
| EOG Resources, Inc. | | 19,599 | 2,341,493 |
| Equitrans Midstream Corp. | | 240,733 | 1,239,775 |
| Exxon Mobil Corp. | | 56,500 | 6,686,210 |
| Hess Corp. | | 42,135 | 6,112,103 |
| Kinder Morgan, Inc. | | 277,288 | 4,755,489 |
| Northern Oil and Gas, Inc.(a) | | 42,957 | 1,424,884 |
| ONEOK, Inc.(a) | | 49,472 | 3,235,964 |
| Pembina Pipeline Corp. (Canada) | | 48,977 | 1,612,263 |
| Pioneer Natural Resources Co. | | 47,670 | 10,370,609 |
| Sitio Royalties Corp., Class A(a) | | 57,632 | 1,463,276 |
| Targa Resources Corp. | | 23,889 | 1,804,336 |
| TC Energy Corp. (Canada) | | 110,592 | 4,596,402 |
| Williams (The) Cos., Inc. | | 142,220 | 4,303,577 |
| | | | 73,221,016 |
| Publishing & Broadcasting – 0.1% |
| Liberty Media Corp.-Liberty Formula One, Class C* | | 26,873 | 1,939,962 |
| Real Estate Investment Trusts – 2.3% |
| Corporate Office Properties Trust | | 66,967 | 1,532,875 |
| CubeSmart | | 99,796 | 4,539,720 |
| | | Number
of Shares | Value |
| Real Estate Investment Trusts (Continued) |
| Douglas Emmett, Inc. | | 50,902 | $ 655,618 |
| Easterly Government Properties, Inc.(a) | | 48,841 | 687,193 |
| Equinix, Inc. | | 8,729 | 6,320,494 |
| Four Corners Property Trust, Inc. | | 53,071 | 1,353,841 |
| National Storage Affiliates Trust | | 44,604 | 1,719,484 |
| Plymouth Industrial REIT, Inc. | | 72,456 | 1,466,509 |
| PotlatchDeltic Corp. | | 30,333 | 1,402,295 |
| Prologis, Inc. | | 31,903 | 3,995,851 |
| Public Storage | | 3,262 | 961,735 |
| Rayonier, Inc. | | 55,518 | 1,741,044 |
| Ryman Hospitality Properties, Inc. | | 25,055 | 2,246,431 |
| Sunstone Hotel Investors, Inc. | | 81,164 | 773,493 |
| UDR, Inc. | | 33,020 | 1,364,717 |
| Urban Edge Properties | | 106,665 | 1,564,776 |
| Weyerhaeuser Co. | | 54,308 | 1,624,352 |
| | | | 33,950,428 |
| Real Estate Services – 0.1% |
| Jones Lang LaSalle, Inc.* | | 9,366 | 1,302,249 |
| Retail - Consumer Staples – 1.0% |
| Five Below, Inc.* | | 11,171 | 2,204,709 |
| Ollie's Bargain Outlet Holdings, Inc.* | | 24,946 | 1,627,727 |
| Target Corp. | | 20,559 | 3,243,182 |
| Walmart, Inc. | | 44,918 | 6,781,270 |
| | | | 13,856,888 |
| Retail - Discretionary – 1.3% |
| Academy Sports & Outdoors, Inc.(a) | | 10,929 | 694,210 |
| Advance Auto Parts, Inc. | | 4,496 | 564,383 |
| CarMax, Inc.* | | 12,533 | 877,686 |
| Floor & Decor Holdings, Inc., Class A* | | 16,176 | 1,606,924 |
| Foot Locker, Inc. | | 77,369 | 3,248,724 |
| Freshpet, Inc.* | | 18,273 | 1,260,289 |
| Kohl's Corp. | | 135,405 | 2,982,972 |
| Lowe's Cos., Inc. | | 24,853 | 5,165,199 |
| Mister Car Wash, Inc.(a)* | | 94,542 | 833,860 |
| Monro, Inc. | | 30,184 | 1,475,394 |
| | | | 18,709,641 |
| Semiconductors – 4.1% |
| Analog Devices, Inc. | | 11,163 | 2,008,001 |
| ASML Holding N.V. (Netherlands)(c) | | 11,620 | 7,400,313 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Semiconductors (Continued) |
| Intel Corp. | | 113,400 | $ 3,522,204 |
| KLA Corp. | | 7,866 | 3,040,524 |
| Micron Technology, Inc. | | 52,411 | 3,373,172 |
| Monolithic Power Systems, Inc. | | 3,866 | 1,785,976 |
| Nova Ltd. (Israel)(a)* | | 12,531 | 1,145,960 |
| NVIDIA Corp. | | 75,468 | 20,941,615 |
| NXP Semiconductors N.V. (China) | | 23,127 | 3,786,815 |
| Rambus, Inc.* | | 27,589 | 1,223,296 |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) | | 70,521 | 5,944,920 |
| Texas Instruments, Inc. | | 33,831 | 5,656,543 |
| | | | 59,829,339 |
| Software – 8.0% |
| Adobe, Inc.* | | 16,606 | 6,269,761 |
| Atlassian Corp., Class A* | | 27,680 | 4,087,229 |
| Check Point Software Technologies Ltd. (Israel)* | | 31,776 | 4,046,991 |
| Clearwater Analytics Holdings, Inc., Class A* | | 116,365 | 1,793,185 |
| CyberArk Software Ltd.* | | 14,140 | 1,761,844 |
| Five9, Inc.* | | 21,816 | 1,414,549 |
| Guidewire Software, Inc.* | | 37,625 | 2,866,649 |
| Microsoft Corp. | | 191,629 | 58,879,927 |
| Palo Alto Networks, Inc.* | | 48,577 | 8,863,359 |
| Paylocity Holding Corp.* | | 11,258 | 2,176,059 |
| Q2 Holdings, Inc.(a)* | | 44,954 | 1,106,768 |
| Salesforce, Inc.* | | 47,178 | 9,358,700 |
| Splunk, Inc.* | | 53,357 | 4,601,508 |
| SS&C Technologies Holdings, Inc. | | 52,984 | 3,101,683 |
| Unity Software, Inc.(a)* | | 38,200 | 1,030,254 |
| Workday, Inc., Class A* | | 29,060 | 5,409,228 |
| | | | 116,767,694 |
| Specialty Finance – 0.5% |
| American Express Co. | | 26,249 | 4,235,014 |
| Mr. Cooper Group, Inc.* | | 50,537 | 2,339,863 |
| | | | 6,574,877 |
| Technology Hardware – 3.5% |
| Apple, Inc. | | 225,935 | 38,336,651 |
| Arrow Electronics, Inc.* | | 6,924 | 792,313 |
| Ciena Corp.* | | 36,454 | 1,678,342 |
| Cisco Systems, Inc. | | 158,067 | 7,468,666 |
| Fabrinet (Thailand)* | | 12,796 | 1,214,980 |
| Viavi Solutions, Inc.* | | 139,776 | 1,252,393 |
| | | | 50,743,345 |
| | | Number
of Shares | Value |
| Technology Services – 3.9% |
| Accenture PLC, Class A | | 16,367 | $ 4,587,506 |
| Cognizant Technology Solutions Corp., Class A | | 26,926 | 1,607,751 |
| Equifax, Inc. | | 12,497 | 2,604,125 |
| Euronet Worldwide, Inc.* | | 13,795 | 1,527,658 |
| Fidelity National Information Services, Inc. | | 25,744 | 1,511,688 |
| Globant S.A.* | | 15,463 | 2,425,681 |
| Moody's Corp. | | 1,616 | 506,002 |
| Open Lending Corp., Class A* | | 98,293 | 691,000 |
| PayPal Holdings, Inc.* | | 90,701 | 6,893,276 |
| S&P Global, Inc. | | 28,628 | 10,379,940 |
| Shift4 Payments, Inc., Class A(a)* | | 18,257 | 1,237,277 |
| Visa, Inc., Class A(a) | | 97,048 | 22,585,981 |
| | | | 56,557,885 |
| Telecommunications – 1.3% |
| T-Mobile U.S., Inc.* | | 21,549 | 3,100,901 |
| Verizon Communications, Inc. | | 394,742 | 15,327,832 |
| | | | 18,428,733 |
| Transportation & Logistics – 1.6% |
| Alaska Air Group, Inc.* | | 34,537 | 1,500,978 |
| Allegiant Travel Co.* | | 17,515 | 1,819,984 |
| ArcBest Corp. | | 5,183 | 489,275 |
| Canadian National Railway Co. (Canada) | | 12,616 | 1,504,710 |
| Delta Air Lines, Inc.* | | 46,207 | 1,585,362 |
| Kirby Corp.* | | 28,242 | 2,028,905 |
| Saia, Inc.* | | 8,079 | 2,405,684 |
| Union Pacific Corp. | | 23,323 | 4,564,311 |
| United Parcel Service, Inc., Class B | | 43,035 | 7,738,124 |
| | | | 23,637,333 |
| Transportation Equipment – 0.1% |
| PACCAR, Inc. | | 18,369 | 1,371,981 |
| Wholesale - Consumer Staples – 0.1% |
| Archer-Daniels-Midland Co. | | 27,298 | 2,131,428 |
| Wholesale - Discretionary – 0.2% |
| Pool Corp. | | 6,823 | 2,397,056 |
Total Common Stocks
(Cost $1,165,874,080) | 1,308,092,505 |
|
| Master Limited Partnerships – 1.0% |
| Oil & Gas Producers – 1.0% |
| Energy Transfer L.P. | | 273,130 | 3,517,914 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
| | | Number
of Shares | Value |
| Oil & Gas Producers (Continued) |
| Enterprise Products Partners L.P. | | 222,115 | $ 5,843,846 |
| Magellan Midstream Partners L.P. | | 36,289 | 2,024,926 |
| MPLX L.P. | | 55,106 | 1,928,159 |
| Plains All American Pipeline L.P. | | 136,570 | 1,761,753 |
Total Master Limited Partnerships
(Cost $13,695,499) | 15,076,598 |
|
| Investment Companies – 6.4% |
| Invesco KBW Bank ETF(a) | | 496,082 | 20,696,541 |
| Vanguard Consumer Staples ETF | | 146,112 | 29,298,378 |
| Vanguard Health Care ETF(a) | | 178,247 | 43,802,418 |
Total Investment Companies
(Cost $86,216,171) | 93,797,337 |
| | | Par/Number
of Shares | Value |
| Short-Term Investments – 3.4% |
| Money Market Funds – 3.4% |
| Northern Institutional Funds - Liquid Assets Portfolio, 4.85%(d)(e) | | 7,684,961 | $ 7,684,961 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(d) | | 41,128,568 | 41,128,568 |
Total Short-Term Investments
(Cost $48,813,529) | 48,813,529 |
Total Investments – 100.5%
(Cost $1,314,599,279) | 1,465,779,969 |
| Liabilities less Other Assets – (0.5)% | (6,853,791) |
| NET ASSETS – 100.0% | $1,458,926,178 |
| 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 (See Note 7). | | |
| (b) | Amount rounds to less than 0.05%. | | |
| (c) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (d) | 7-day current yield as of April 30, 2023 is disclosed. | | |
| (e) | 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 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar U.S. Equity Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | 1,297,867,336 | $10,225,169 | $— | 1,308,092,505 |
| Master Limited Partnerships | 15,076,598 | — | — | 15,076,598 |
| Investment Companies | 93,797,337 | — | — | 93,797,337 |
| Short-Term Investments | 48,813,529 | — | — | 48,813,529 |
| Total Investments | $1,455,554,800 | $10,225,169 | $— | $1,465,779,969 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Common Stocks – 91.7% |
| Advertising & Marketing – 0.9% |
| Dentsu Group, Inc. (Japan) | | 14,394 | $ 518,686 |
| Publicis Groupe S.A. (France) | | 36,978 | 3,023,214 |
| WPP PLC (United Kingdom) | | 295,146 | 3,439,755 |
| | | | 6,981,655 |
| Aerospace & Defense – 0.1% |
| BAE Systems PLC (United Kingdom) | | 61,361 | 781,738 |
| Apparel & Textile Products – 1.5% |
| adidas A.G. (Germany) | | 20,867 | 3,674,803 |
| Cie Financiere Richemont S.A., Class A (Switzerland)(a) | | 1,724 | 284,979 |
| Kering S.A. (France) | | 10,631 | 6,807,742 |
| Swatch Group (The) A.G. (Bearer) (Switzerland) | | 4,593 | 1,575,686 |
| | | | 12,343,210 |
| Asset Management – 1.5% |
| EXOR N.V. (Netherlands)* | | 53,651 | 4,415,428 |
| HDFC Asset Management Co. Ltd. (India)(b) | | 11,835 | 255,823 |
| Sanlam Ltd. (South Africa) | | 187,199 | 577,485 |
| Schroders PLC (United Kingdom) | | 838,324 | 5,134,658 |
| St. James's Place PLC (United Kingdom) | | 28,326 | 430,785 |
| XP, Inc., Class A (Brazil)(c)* | | 81,671 | 1,167,078 |
| | | | 11,981,257 |
| Automotive – 5.0% |
| Bajaj Auto Ltd. (India) | | 11,357 | 616,413 |
| Bayerische Motoren Werke A.G. (Germany) | | 51,155 | 5,733,680 |
| Bridgestone Corp. (Japan) | | 51,000 | 2,048,076 |
| Continental A.G. (Germany) | | 77,175 | 5,415,153 |
| Denso Corp. (Japan) | | 18,000 | 1,086,545 |
| Fuyao Glass Industry Group Co. Ltd., Class A (China) | | 173,000 | 849,191 |
| Honda Motor Co. Ltd. (Japan) | | 111,400 | 2,954,666 |
| Huayu Automotive Systems Co. Ltd., Class A (China) | | 297,400 | 704,616 |
| Hyundai Mobis Co. Ltd. (South Korea) | | 4,179 | 680,593 |
| Kia Corp. (South Korea) | | 7,843 | 496,723 |
| Li Auto, Inc. ADR (China)* | | 16,104 | 378,444 |
| | | Number
of Shares | Value |
| Automotive (Continued) |
| Li Auto, Inc., Class A (China)(c)* | | 2,500 | $ 29,610 |
| Maruti Suzuki India Ltd. (India) | | 4,077 | 429,394 |
| Mercedes-Benz Group A.G. (Germany) | | 91,490 | 7,134,942 |
| Nissan Motor Co. Ltd. (Japan) | | 284,276 | 1,036,594 |
| Stanley Electric Co. Ltd. (Japan) | | 46,800 | 1,055,710 |
| Sumitomo Electric Industries Ltd. (Japan) | | 40,600 | 518,148 |
| Toyota Motor Corp. (Japan) | | 418,400 | 5,744,647 |
| Valeo (France) | | 170,902 | 3,337,147 |
| | | | 40,250,292 |
| Banking – 9.5% |
| Al Rajhi Bank (Saudi Arabia) | | 18,010 | 371,726 |
| Axis Bank Ltd. (India) | | 250,365 | 2,642,831 |
| Banco Bilbao Vizcaya Argentaria S.A. (Spain) | | 532,372 | 3,897,489 |
| Banco do Brasil S.A. (Brazil) | | 161,400 | 1,383,345 |
| Banco Santander Chile ADR (Chile)(c) | | 22,795 | 436,524 |
| Bank Central Asia Tbk PT (Indonesia) | | 1,240,700 | 767,809 |
| Bank Mandiri Persero Tbk PT (Indonesia) | | 3,088,900 | 1,091,926 |
| Barclays PLC (United Kingdom) | | 259,875 | 523,495 |
| BDO Unibank, Inc. (Philippines) | | 241,324 | 629,022 |
| BNP Paribas S.A. (France) | | 110,998 | 7,171,958 |
| Capitec Bank Holdings Ltd. (South Africa) | | 6,645 | 578,632 |
| China Construction Bank Corp., Class H (China) | | 3,337,000 | 2,230,873 |
| China Merchants Bank Co. Ltd., Class H (China) | | 153,113 | 739,096 |
| Commercial International Bank Egypt S.A.E. GDR (Egypt)(a) | | 402,435 | 487,693 |
| Credicorp Ltd. (Peru) | | 12,214 | 1,654,753 |
| DBS Group Holdings Ltd. (Singapore) | | 247,152 | 6,107,117 |
| First Abu Dhabi Bank PJSC (United Arab Emirates) | | 99,489 | 384,705 |
| Grupo Financiero Banorte S.A.B. de C.V., Class O (Mexico) | | 121,298 | 1,051,234 |
| HDFC Bank Ltd. (India) | | 43,989 | 909,482 |
| HDFC Bank Ltd. ADR (India) | | 40,402 | 2,820,060 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Banking (Continued) |
| HSBC Holdings PLC (United Kingdom) | | 329,442 | $ 2,374,404 |
| ICICI Bank Ltd. ADR (India) | | 110,966 | 2,524,476 |
| Intesa Sanpaolo S.p.A. (Italy) | | 2,432,739 | 6,396,623 |
| Kasikornbank PCL (Thailand)(a) | | 122,800 | 451,036 |
| KB Financial Group, Inc. (South Korea) | | 29,117 | 1,080,713 |
| Kotak Mahindra Bank Ltd. (India) | | 60,080 | 1,429,908 |
| Lloyds Banking Group PLC (United Kingdom) | | 12,689,229 | 7,708,983 |
| Mitsubishi UFJ Financial Group, Inc. (Japan) | | 239,100 | 1,496,655 |
| Mizuho Financial Group, Inc. (Japan) | | 36,800 | 533,446 |
| NatWest Group PLC (United Kingdom) | | 117,412 | 386,767 |
| Nedbank Group Ltd. (South Africa) | | 96,575 | 1,114,236 |
| OTP Bank Nyrt. (Hungary) | | 57,100 | 1,740,004 |
| Qatar National Bank QPSC (Qatar) | | 124,003 | 525,072 |
| Resona Holdings, Inc. (Japan) | | 102,800 | 512,351 |
| Sberbank of Russia PJSC (Russia)(d)* | | 405,212 | — |
| Shinhan Financial Group Co. Ltd. (South Korea) | | 34,190 | 895,108 |
| Skandinaviska Enskilda Banken AB, Class A (Sweden)(c) | | 433,269 | 4,926,606 |
| Standard Bank Group Ltd. (South Africa) | | 85,196 | 798,775 |
| Standard Chartered PLC (United Kingdom) | | 189,774 | 1,503,605 |
| Sumitomo Mitsui Financial Group, Inc. (Japan) | | 60,700 | 2,481,030 |
| Sumitomo Mitsui Trust Holdings, Inc. (Japan) | | 42,100 | 1,517,609 |
| | | | 76,277,177 |
| Beverages – 2.3% |
| Ambev S.A. ADR (Brazil)* | | 847,234 | 2,372,255 |
| Anheuser-Busch InBev S.A./N.V. (Belgium) | | 66,600 | 4,330,296 |
| Asahi Group Holdings Ltd. (Japan) | | 13,200 | 509,970 |
| Becle S.A.B. de C.V. (Mexico) | | 38,335 | 88,484 |
| Budweiser Brewing Co. APAC Ltd. (China)(b) | | 502,100 | 1,450,673 |
| | | Number
of Shares | Value |
| Beverages (Continued) |
| Diageo PLC (United Kingdom) | | 43,406 | $ 1,980,013 |
| Fomento Economico Mexicano S.A.B. de C.V. ADR (Mexico) | | 47,064 | 4,566,149 |
| Kirin Holdings Co. Ltd. (Japan) | | 93,000 | 1,510,815 |
| Kweichow Moutai Co. Ltd., Class A (China) | | 1,500 | 381,903 |
| Nongfu Spring Co. Ltd., Class H (China)(b) | | 73,400 | 398,250 |
| Tingyi Cayman Islands Holding Corp. (China) | | 514,000 | 898,241 |
| | | | 18,487,049 |
| Biotechnology & Pharmaceuticals – 4.6% |
| Astellas Pharma, Inc. (Japan) | | 68,300 | 1,028,910 |
| AstraZeneca PLC (United Kingdom) | | 25,401 | 3,738,087 |
| Bayer A.G. (Germany)(a) | | 86,760 | 5,725,837 |
| China Medical System Holdings Ltd. (China) | | 368,000 | 610,924 |
| Chugai Pharmaceutical Co. Ltd. (Japan) | | 193,100 | 4,983,073 |
| CSPC Pharmaceutical Group Ltd. (China) | | 1,870,000 | 1,904,215 |
| Daiichi Sankyo Co. Ltd. (Japan) | | 28,500 | 977,967 |
| Genmab A/S (Denmark)* | | 3,939 | 1,618,790 |
| GSK PLC | | 76,416 | 1,378,022 |
| Novartis A.G. (Switzerland)(a) | | 30,400 | 3,109,734 |
| Ono Pharmaceutical Co. Ltd. (Japan) | | 22,500 | 453,040 |
| Roche Holding A.G. (Genusschein) | | 23,546 | 7,373,199 |
| Shionogi & Co. Ltd. (Japan) | | 53,600 | 2,399,379 |
| Takeda Pharmaceutical Co. Ltd. (Japan) | | 60,400 | 2,002,814 |
| | | | 37,303,991 |
| Cable & Satellite – 0.4% |
| Liberty Global PLC, Class A (United Kingdom)* | | 156,300 | 3,049,413 |
| Chemicals – 2.6% |
| Air Liquide S.A. (France) | | 14,478 | 2,604,451 |
| Akzo Nobel N.V. (Netherlands) | | 20,700 | 1,717,236 |
| Asian Paints Ltd. (India) | | 12,121 | 431,367 |
| Brenntag S.E. (Germany) | | 13,500 | 1,100,313 |
| LG Chem Ltd. (South Korea) | | 2,134 | 1,185,402 |
| Linde PLC | | 8,351 | 3,085,277 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Chemicals (Continued) |
| Nitto Denko Corp. (Japan) | | 17,300 | $ 1,118,414 |
| Novozymes A/S, Class B (Denmark) | | 32,343 | 1,683,865 |
| Orica Ltd. (Australia) | | 97,454 | 1,051,901 |
| Saudi Basic Industries Corp. (Saudi Arabia) | | 17,630 | 436,213 |
| Shin-Etsu Chemical Co. Ltd. (Japan) | | 74,000 | 2,111,651 |
| Symrise A.G. (Germany) | | 25,245 | 3,050,165 |
| Toray Industries, Inc. (Japan) | | 91,000 | 515,724 |
| UPL Ltd. (India) | | 122,381 | 1,110,696 |
| | | | 21,202,675 |
| Commercial Support Services – 1.4% |
| Bidvest Group (The) Ltd. (South Africa) | | 43,467 | 595,362 |
| Compass Group PLC (United Kingdom) | | 92,461 | 2,439,210 |
| Edenred (France) | | 31,600 | 2,053,167 |
| Eurofins Scientific S.E. (France)(c) | | 22,600 | 1,578,607 |
| Pony Testing International Group Co. Ltd., Class A (China) | | 50,180 | 262,663 |
| Recruit Holdings Co. Ltd. (Japan) | | 112,000 | 3,142,004 |
| Rentokil Initial PLC (United Kingdom) | | 52,522 | 418,141 |
| Secom Co. Ltd. (Japan) | | 17,300 | 1,107,788 |
| | | | 11,596,942 |
| Construction Materials – 0.6% |
| Anhui Conch Cement Co. Ltd., Class H (China) | | 229,500 | 724,651 |
| Holcim A.G.* | | 56,815 | 3,753,922 |
| Siam Cement (The) PCL (Thailand)(a) | | 20,300 | 186,666 |
| | | | 4,665,239 |
| Containers & Packaging – 0.0%(e) |
| Klabin S.A. (Brazil) | | 36,283 | 138,867 |
| Diversified Industrials – 1.2% |
| Alfa Laval AB (Sweden) | | 103,194 | 3,785,912 |
| Hitachi Ltd. (Japan) | | 22,100 | 1,222,454 |
| Siemens A.G. (Germany)(a) | | 26,857 | 4,426,900 |
| | | | 9,435,266 |
| E-Commerce Discretionary – 2.2% |
| Alibaba Group Holding Ltd. (China)(c)* | | 945,656 | 9,999,014 |
| Alibaba Group Holding Ltd. ADR (China)* | | 15,567 | 1,318,369 |
| | | Number
of Shares | Value |
| E-Commerce Discretionary (Continued) |
| JD.com, Inc., Class A (China) | | 131,983 | $ 2,355,612 |
| MercadoLibre, Inc. (Brazil)* | | 386 | 493,111 |
| Ozon Holdings PLC ADR (Russia)(d)* | | 2,158 | — |
| Pinduoduo, Inc. ADR (China)* | | 18,653 | 1,271,202 |
| Sea Ltd. ADR (Singapore)* | | 5,901 | 449,479 |
| Vipshop Holdings Ltd. ADR (China)* | | 104,090 | 1,634,213 |
| | | | 17,521,000 |
| Electric Utilities – 0.3% |
| Chubu Electric Power Co., Inc. (Japan) | | 51,981 | 579,711 |
| Engie Brasil Energia S.A. (Brazil) | | 70,000 | 578,070 |
| National Grid PLC (United Kingdom) | | 56,810 | 814,538 |
| SSE PLC (United Kingdom) | | 17,453 | 402,696 |
| | | | 2,375,015 |
| Electrical Equipment – 1.8% |
| Daikin Industries Ltd. (Japan) | | 9,000 | 1,634,680 |
| Mitsubishi Electric Corp. (Japan) | | 162,700 | 2,017,298 |
| Schindler Holding A.G. (Switzerland) | | 6,700 | 1,497,261 |
| Schneider Electric S.E.(c) | | 37,564 | 6,550,858 |
| Shenzhen Inovance Technology Co. Ltd., Class A (China) | | 61,400 | 548,763 |
| Toshiba Corp. (Japan) | | 33,530 | 1,080,329 |
| Voltas Ltd. (India) | | 110,096 | 1,078,746 |
| | | | 14,407,935 |
| Engineering & Construction – 0.1% |
| Indus Towers Ltd. (India) | | 356,411 | 677,232 |
| Entertainment Content – 0.3% |
| NetEase, Inc. (China) | | 64,200 | 1,142,914 |
| Nexon Co. Ltd. (Japan) | | 22,300 | 503,765 |
| Square Enix Holdings Co. Ltd. (Japan) | | 10,500 | 516,696 |
| | | | 2,163,375 |
| Food – 1.2% |
| Associated British Foods PLC (United Kingdom) | | 15,741 | 387,836 |
| Chacha Food Co. Ltd., Class A (China) | | 94,600 | 592,277 |
| Danone S.A. (France) | | 45,600 | 3,017,975 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Food (Continued) |
| Foshan Haitian Flavouring & Food Co. Ltd., Class A (China) | | 48,700 | $ 497,465 |
| Gruma S.A.B. de C.V., Class B (Mexico) | | 1,133 | 17,792 |
| MEIJI Holdings Co. Ltd. (Japan) | | 50,300 | 1,213,725 |
| Nestle S.A. ADR | | 23,204 | 2,976,145 |
| Universal Robina Corp. (Philippines) | | 145,830 | 388,077 |
| Yamazaki Baking Co. Ltd. (Japan) | | 46,500 | 623,061 |
| | | | 9,714,353 |
| Gas & Water Utilities – 0.5% |
| ENN Energy Holdings Ltd. (China) | | 200,900 | 2,754,662 |
| ENN Natural Gas Co. Ltd., Class A (China) | | 224,600 | 659,343 |
| Osaka Gas Co. Ltd. (Japan) | | 31,100 | 514,432 |
| Severn Trent PLC (United Kingdom) | | 8,494 | 312,865 |
| | | | 4,241,302 |
| Health Care Facilities & Services – 2.3% |
| Alfresa Holdings Corp. (Japan) | | 40,300 | 583,524 |
| Bumrungrad Hospital PCL (Thailand)(a) | | 38,000 | 264,851 |
| Fresenius Medical Care A.G. & Co. KGaA (Germany) | | 102,370 | 4,967,398 |
| Fresenius S.E. & Co. KGaA (Germany) | | 182,900 | 5,299,341 |
| Life Healthcare Group Holdings Ltd. (South Africa) | | 494,245 | 560,374 |
| Lonza Group A.G. (Switzerland)(a) | | 7,171 | 4,472,124 |
| Nahdi Medical Co. (Saudi Arabia) | | 19,214 | 923,293 |
| Sinopharm Group Co. Ltd., Class H (China) | | 443,523 | 1,571,082 |
| | | | 18,641,987 |
| Home & Office Products – 0.6% |
| Coway Co. Ltd. (South Korea) | | 14,813 | 543,881 |
| Gree Electric Appliances, Inc. of Zhuhai, Class A (China) | | 169,300 | 962,417 |
| Haier Smart Home Co. Ltd., Class A (China) | | 834,200 | 2,862,095 |
| Midea Group Co. Ltd., Class A (China) | | 72,200 | 592,695 |
| | | | 4,961,088 |
| | | Number
of Shares | Value |
| Home Construction – 0.1% |
| Berkeley Group Holdings (The) PLC (United Kingdom) | | 7,437 | $ 416,191 |
| Sekisui House Ltd. (Japan) | | 24,869 | 511,273 |
| | | | 927,464 |
| Household Products – 3.6% |
| Haleon PLC | | 796,674 | 3,502,735 |
| Hengan International Group Co. Ltd. (China) | | 212,500 | 949,123 |
| Henkel A.G. & Co. KGaA (Germany) | | 52,929 | 3,914,325 |
| Hindustan Unilever Ltd. (India) | | 13,855 | 417,031 |
| Kao Corp. (Japan) | | 44,200 | 1,786,056 |
| Kimberly-Clark de Mexico S.A.B. de C.V., Series A (Mexico) | | 391,107 | 884,039 |
| L'Oreal S.A. (France) | | 12,078 | 5,772,284 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 37,273 | 3,012,024 |
| Shiseido Co. Ltd. (Japan) | | 47,400 | 2,375,963 |
| Unicharm Corp. (Japan) | | 77,300 | 3,120,597 |
| Unilever PLC (United Kingdom) | | 44,170 | 2,459,480 |
| Unilever PLC (United Kingdom) | | 20,090 | 1,118,958 |
| | | | 29,312,615 |
| Industrial Intermediate Products – 0.4% |
| SKF AB, Class B (Sweden) | | 183,000 | 3,314,434 |
| Industrial Support Services – 0.4% |
| Ashtead Group PLC (United Kingdom) | | 53,834 | 3,103,861 |
| Institutional Financial Services – 0.4% |
| B3 S.A. - Brasil Bolsa Balcao (Brazil) | | 457,547 | 1,068,692 |
| Daiwa Securities Group, Inc. (Japan) | | 126,500 | 587,554 |
| Japan Exchange Group, Inc. (Japan) | | 34,900 | 566,699 |
| London Stock Exchange Group PLC (United Kingdom) | | 8,393 | 881,208 |
| Moscow Exchange MICEX PJSC (Russia)(d)* | | 83,130 | — |
| | | | 3,104,153 |
| Insurance – 4.4% |
| AIA Group Ltd. (Hong Kong) | | 506,400 | 5,513,215 |
| Allianz S.E. (Germany)(a) | | 45,788 | 11,497,682 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Insurance (Continued) |
| Aviva PLC (United Kingdom) | | 53,582 | $ 285,289 |
| BB Seguridade Participacoes S.A. (Brazil) | | 243,200 | 1,658,293 |
| Dai-ichi Life Holdings, Inc. (Japan) | | 41,200 | 766,352 |
| HDFC Life Insurance Co. Ltd. (India)(b) | | 89,937 | 583,873 |
| Legal & General Group PLC (United Kingdom) | | 94,894 | 279,987 |
| Manulife Financial Corp. (Canada) | | 145,800 | 2,878,658 |
| MS&AD Insurance Group Holdings, Inc. (Japan) | | 31,300 | 1,027,339 |
| Ping An Insurance Group Co. of China Ltd., Class H (China) | | 500,000 | 3,647,760 |
| Prudential PLC (Hong Kong) | | 353,239 | 5,404,924 |
| Sompo Holdings, Inc. (Japan) | | 14,000 | 584,214 |
| Tokio Marine Holdings, Inc. (Japan) | | 51,200 | 1,029,480 |
| | | | 35,157,066 |
| Internet Media & Services – 3.7% |
| Baidu, Inc., Class A (China)* | | 117,700 | 1,771,610 |
| Meituan, Class B (China)(b)* | | 186,640 | 3,189,763 |
| NAVER Corp. (South Korea) | | 35,932 | 5,205,662 |
| Prosus N.V. (China)* | | 66,840 | 5,001,874 |
| Tencent Holdings Ltd. (China) | | 250,400 | 11,121,795 |
| Tencent Music Entertainment Group ADR (China)* | | 142,510 | 1,055,999 |
| Trip.com Group Ltd. (China)* | | 29,800 | 1,059,537 |
| Trip.com Group Ltd. ADR (China)* | | 35,958 | 1,276,869 |
| Yandex N.V., Class A (Russia)(d)* | | 41,059 | — |
| | | | 29,683,109 |
| Leisure Facilities & Services – 1.6% |
| Accor S.A. (France)* | | 129,719 | 4,602,053 |
| Entain PLC (United Kingdom) | | 17,277 | 314,809 |
| InterContinental Hotels Group PLC (United Kingdom) | | 5,512 | 378,987 |
| Jollibee Foods Corp. (Philippines) | | 94,650 | 384,910 |
| Las Vegas Sands Corp.* | | 15,240 | 973,074 |
| OPAP S.A. (Greece) | | 48,729 | 830,962 |
| | | Number
of Shares | Value |
| Leisure Facilities & Services (Continued) |
| Restaurant Brands International, Inc. (Canada)(c) | | 14,700 | $ 1,030,911 |
| Songcheng Performance Development Co. Ltd., Class A (China) | | 424,700 | 894,977 |
| Yum China Holdings, Inc. (China) | | 50,557 | 3,093,077 |
| Yum China Holdings, Inc. (China) | | 4,400 | 269,273 |
| | | | 12,773,033 |
| Leisure Products – 0.3% |
| Shimano, Inc. (Japan) | | 17,600 | 2,721,884 |
| Machinery – 5.5% |
| Atlas Copco AB, Class A (Sweden) | | 542,040 | 7,840,135 |
| CNH Industrial N.V. (United Kingdom) | | 380,166 | 5,349,635 |
| Daifuku Co. Ltd. (Japan) | | 101,400 | 1,868,273 |
| Doosan Bobcat, Inc. (South Korea) | | 7,400 | 283,913 |
| Epiroc AB, Class A (Sweden) | | 157,311 | 3,151,423 |
| FANUC Corp. (Japan) | | 97,600 | 3,296,070 |
| Hongfa Technology Co. Ltd., Class A (China) | | 71,900 | 325,222 |
| Keyence Corp. (Japan) | | 9,300 | 4,193,894 |
| Komatsu Ltd. (Japan) | | 258,300 | 6,423,888 |
| Kubota Corp. (Japan) | | 176,700 | 2,677,535 |
| Nabtesco Corp. (Japan) | | 23,666 | 570,434 |
| Sandvik AB (Sweden) | | 53,000 | 1,079,601 |
| SMC Corp. (Japan) | | 2,900 | 1,446,360 |
| Smiths Group PLC (United Kingdom) | | 74,744 | 1,580,436 |
| Sumitomo Heavy Industries Ltd. (Japan) | | 21,164 | 511,364 |
| WEG S.A. (Brazil) | | 62,436 | 512,852 |
| Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A (China) | | 1,037,600 | 3,503,267 |
| | | | 44,614,302 |
| Medical Equipment & Devices – 1.4% |
| Alcon, Inc. (Switzerland)(c) | | 44,712 | 3,240,726 |
| FUJIFILM Holdings Corp. (Japan) | | 21,500 | 1,120,579 |
| Hoya Corp. (Japan) | | 9,700 | 1,017,094 |
| Olympus Corp. (Japan) | | 57,600 | 1,008,370 |
| Smith & Nephew PLC (United Kingdom) | | 25,772 | 424,459 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Medical Equipment & Devices (Continued) |
| Sonova Holding A.G. (Switzerland)(a) | | 7,788 | $ 2,469,780 |
| Sysmex Corp. (Japan) | | 31,700 | 2,039,046 |
| | | | 11,320,054 |
| Metals & Mining – 2.4% |
| Anglo American PLC (South Africa) | | 35,835 | 1,104,226 |
| BHP Group Ltd. ADR (Australia)(c) | | 71,544 | 4,223,958 |
| Cameco Corp. (Canada) | | 7,295 | 200,568 |
| China Shenhua Energy Co. Ltd., Class H (China) | | 155,000 | 514,840 |
| Glencore PLC (Australia) | | 836,433 | 4,937,157 |
| Grupo Mexico S.A.B. de C.V., Series B (Mexico) | | 206,012 | 1,007,516 |
| Rio Tinto PLC (Australia) | | 85,009 | 5,404,226 |
| Sumitomo Metal Mining Co. Ltd. (Japan) | | 15,300 | 564,703 |
| United Tractors Tbk PT (Indonesia) | | 299,800 | 591,828 |
| Vale S.A. ADR (Brazil) | | 35,772 | 515,475 |
| | | | 19,064,497 |
| Oil & Gas Producers – 4.7% |
| Bharat Petroleum Corp. Ltd. (India) | | 119,415 | 522,672 |
| BP PLC (United Kingdom) | | 683,342 | 4,584,538 |
| Canadian Natural Resources Ltd. (Canada) | | 19,058 | 1,161,330 |
| Cenovus Energy, Inc. (Canada) | | 16,740 | 280,967 |
| Chevron Corp. | | 3,474 | 585,647 |
| China Petroleum & Chemical Corp., Class H (China) | | 755,092 | 494,899 |
| Ecopetrol S.A. ADR (Colombia)(c) | | 13,677 | 132,940 |
| ENEOS Holdings, Inc. (Japan) | | 144,000 | 512,284 |
| Eni S.p.A. (Italy) | | 52,793 | 797,566 |
| Equinor ASA (Norway) | | 20,034 | 576,800 |
| Exxon Mobil Corp. | | 11,909 | 1,409,311 |
| Galp Energia SGPS S.A. (Portugal) | | 140,559 | 1,698,473 |
| Gazprom PJSC (Russia)(d) | | 421,794 | — |
| Imperial Oil Ltd. (Canada) | | 3,318 | 169,126 |
| Inpex Corp. (Japan) | | 110,800 | 1,212,490 |
| LUKOIL PJSC (Russia)(d) | | 61,010 | — |
| MOL Hungarian Oil & Gas PLC (Hungary) | | 62,081 | 503,431 |
| Neste OYJ (Finland) | | 11,895 | 576,484 |
| OMV A.G. (Austria) | | 3,808 | 180,205 |
| | | Number
of Shares | Value |
| Oil & Gas Producers (Continued) |
| Petroleo Brasileiro S.A. ADR (Brazil) | | 216,547 | $ 2,299,729 |
| Petronet LNG Ltd. (India) | | 248,793 | 722,610 |
| PTT Exploration & Production PCL (Thailand)(a) | | 115,000 | 496,359 |
| Reliance Industries Ltd. (India) | | 37,099 | 1,101,735 |
| Repsol S.A. (Spain) | | 26,924 | 395,506 |
| Rosneft Oil Co. PJSC (Russia)(d) | | 210,931 | — |
| Santos Ltd. (Australia) | | 39,404 | 186,661 |
| Shell PLC (Netherlands) | | 396,201 | 12,174,533 |
| Suncor Energy, Inc. (Canada) | | 24,385 | 763,488 |
| TotalEnergies S.E. (France) | | 46,705 | 2,984,447 |
| Vibra Energia S.A. (Brazil)* | | 183,600 | 481,472 |
| Woodside Energy Group Ltd. (Australia) | | 17,254 | 391,499 |
| | | | 37,397,202 |
| Publishing & Broadcasting – 0.3% |
| Informa PLC (United Kingdom) | | 246,411 | 2,240,142 |
| Real Estate Owners & Developers – 0.6% |
| China Overseas Land & Investment Ltd. (China) | | 534,500 | 1,355,569 |
| China Vanke Co. Ltd., Class H (China) | | 429,995 | 672,209 |
| Mitsubishi Estate Co. Ltd. (Japan) | | 126,300 | 1,556,560 |
| Mitsui Fudosan Co. Ltd. (Japan) | | 29,600 | 587,916 |
| Sumitomo Realty & Development Co. Ltd. (Japan) | | 21,600 | 504,343 |
| | | | 4,676,597 |
| Real Estate Services – 0.1% |
| A-Living Smart City Services Co. Ltd. (China)(b) | | 307,750 | 247,165 |
| China Resources Mixc Lifestyle Services Ltd. (China)(b)(c) | | 86,800 | 460,179 |
| KE Holdings, Inc. ADR (China)* | | 16,423 | 257,677 |
| | | | 965,021 |
| Renewable Energy – 0.4% |
| LONGi Green Energy Technology Co. Ltd., Class A (China) | | 614,100 | 3,102,567 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Retail - Consumer Staples – 1.4% |
| Alibaba Health Information Technology Ltd. (China)(c)* | | 1,132,000 | $ 815,956 |
| Alimentation Couche-Tard, Inc. (Canada) | | 63,473 | 3,167,911 |
| Clicks Group Ltd. (South Africa) | | 49,010 | 716,268 |
| CP ALL PCL (Thailand)(a) | | 524,100 | 999,143 |
| Jeronimo Martins SGPS S.A. (Portugal) | | 8,605 | 217,149 |
| Raia Drogasil S.A. (Brazil) | | 230,740 | 1,215,736 |
| Seven & i Holdings Co. Ltd. (Japan) | | 22,800 | 1,033,238 |
| SM Investments Corp. (Philippines) | | 19,250 | 311,935 |
| Sumber Alfaria Trijaya Tbk PT (Indonesia) | | 1,043,200 | 206,274 |
| Tesco PLC (United Kingdom) | | 204,648 | 723,523 |
| Wal-Mart de Mexico S.A.B. de C.V. (Mexico) | | 310,291 | 1,250,691 |
| X5 Retail Group N.V. GDR (Russia)(a)(d)* | | 23,376 | — |
| Yifeng Pharmacy Chain Co. Ltd., Class A (China) | | 128,612 | 926,708 |
| | | | 11,584,532 |
| Retail - Discretionary – 1.1% |
| Astra International Tbk PT (Indonesia) | | 1,413,400 | 651,957 |
| Fast Retailing Co. Ltd. (Japan) | | 5,300 | 1,255,049 |
| Kingfisher PLC (United Kingdom) | | 98,393 | 318,901 |
| Li Ning Co. Ltd. (China) | | 162,000 | 1,158,562 |
| Localiza Rent a Car S.A. (Brazil) | | 123,221 | 1,431,872 |
| Nitori Holdings Co. Ltd. (Japan) | | 17,700 | 2,253,846 |
| Zhongsheng Group Holdings Ltd. (China) | | 441,500 | 1,885,875 |
| | | | 8,956,062 |
| Semiconductors – 3.6% |
| ASE Technology Holding Co. Ltd. (Taiwan) | | 434,000 | 1,426,797 |
| ASML Holding N.V. (Netherlands) | | 1,694 | 1,075,034 |
| ASMPT Ltd. (Hong Kong) | | 82,800 | 650,987 |
| Globalwafers Co. Ltd. (Taiwan) | | 34,000 | 534,352 |
| Infineon Technologies A.G. (Germany) | | 177,366 | 6,459,098 |
| MediaTek, Inc. (Taiwan) | | 70,000 | 1,522,069 |
| | | Number
of Shares | Value |
| Semiconductors (Continued) |
| Novatek Microelectronics Corp. (Taiwan) | | 56,000 | $ 765,583 |
| SK Hynix, Inc. (South Korea) | | 30,417 | 2,046,562 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | | 498,945 | 8,170,520 |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) | | 53,068 | 4,473,632 |
| Tokyo Electron Ltd. (Japan) | | 13,400 | 1,534,374 |
| Vanguard International Semiconductor Corp. (Taiwan) | | 157,000 | 444,956 |
| | | | 29,103,964 |
| Software – 2.0% |
| Dassault Systemes S.E. (France) | | 66,479 | 2,698,757 |
| Glodon Co. Ltd., Class A (China) | | 64,500 | 540,851 |
| Hundsun Technologies, Inc., Class A (China) | | 118,200 | 845,421 |
| Open Text Corp. (Canada) | | 110,748 | 4,194,176 |
| SAP S.E. (Germany) | | 29,900 | 4,045,955 |
| SAP S.E. ADR (Germany) | | 24,525 | 3,317,497 |
| ZWSOFT Co. Ltd. (Guangzhou), Class A (China) | | 12,364 | 349,945 |
| | | | 15,992,602 |
| Specialty Finance – 0.2% |
| Chailease Holding Co. Ltd. (Taiwan) | | 84,000 | 611,783 |
| ORIX Corp. (Japan) | | 48,100 | 818,302 |
| | | | 1,430,085 |
| Steel – 0.6% |
| Mitsui & Co. Ltd. (Japan) | | 56,600 | 1,766,979 |
| POSCO Holdings, Inc. (South Korea) | | 1,832 | 518,465 |
| Ternium S.A. ADR (Mexico) | | 12,138 | 526,182 |
| thyssenkrupp A.G. (Germany) | | 242,600 | 1,745,803 |
| | | | 4,557,429 |
| Technology Hardware – 3.7% |
| Casio Computer Co. Ltd. (Japan) | | 53,100 | 505,236 |
| Hon Hai Precision Industry Co. Ltd. (Taiwan) | | 178,000 | 606,544 |
| Kyocera Corp. (Japan) | | 20,900 | 1,096,990 |
| Lenovo Group Ltd. (China) | | 1,170,000 | 1,196,999 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
| Technology Hardware (Continued) |
| Murata Manufacturing Co. Ltd. (Japan) | | 35,200 | $ 1,997,113 |
| Nidec Corp. (Japan) | | 17,900 | 885,729 |
| Nintendo Co. Ltd. (Japan) | | 60,600 | 2,562,010 |
| Panasonic Holdings Corp. (Japan) | | 127,100 | 1,197,127 |
| Quanta Computer, Inc. (Taiwan) | | 332,000 | 929,617 |
| Samsung Electronics Co. Ltd. (South Korea) | | 102,448 | 5,040,861 |
| Samsung Electronics Co. Ltd. GDR (South Korea)(a) | | 5,766 | 7,144,817 |
| Silergy Corp. (China) | | 26,000 | 410,392 |
| Sony Group Corp. (Japan) | | 37,800 | 3,419,908 |
| Sunny Optical Technology Group Co. Ltd. (China) | | 17,600 | 185,985 |
| TDK Corp. (Japan) | | 45,200 | 1,553,928 |
| Wiwynn Corp. (Taiwan) | | 12,000 | 456,680 |
| Xiamen Faratronic Co. Ltd., Class A (China) | | 8,800 | 169,582 |
| | | | 29,359,518 |
| Technology Services – 2.8% |
| Adyen N.V. (Netherlands)(b)* | | 2,286 | 3,673,264 |
| Amadeus IT Group S.A. (Spain)* | | 52,100 | 3,661,850 |
| Arabian Internet & Communications Services Co. (Saudi Arabia) | | 5,638 | 422,035 |
| Capgemini S.E. (France) | | 21,500 | 3,920,683 |
| Experian PLC | | 17,040 | 603,299 |
| Fujitsu Ltd. (Japan) | | 17,800 | 2,372,336 |
| Globant S.A.* | | 500 | 78,435 |
| Infosys Ltd. (India) | | 60,063 | 926,722 |
| Infosys Ltd. ADR (India) | | 7,543 | 117,218 |
| RELX PLC (United Kingdom) | | 32,243 | 1,074,295 |
| Sangfor Technologies, Inc., Class A (China) | | 800 | 13,783 |
| Tata Consultancy Services Ltd. (India) | | 5,781 | 228,562 |
| Worldline S.A. (France)(b)* | | 125,600 | 5,463,939 |
| | | | 22,556,421 |
| Telecommunications – 1.6% |
| America Movil S.A.B. de C.V. (Mexico)* | | 30,983 | 665,825 |
| BT Group PLC (United Kingdom) | | 155,181 | 309,942 |
| KDDI Corp. (Japan) | | 72,800 | 2,272,680 |
| KT Corp. (South Korea) | | 20,421 | 458,303 |
| Mobile TeleSystems PJSC ADR (Russia)(d)* | | 138,416 | — |
| | | Number
of Shares | Value |
| Telecommunications (Continued) |
| Nippon Telegraph & Telephone Corp. (Japan) | | 41,900 | $ 1,278,535 |
| Softbank Corp. (Japan) | | 44,900 | 505,521 |
| SoftBank Group Corp. (Japan) | | 54,500 | 2,043,882 |
| Telkom Indonesia Persero Tbk PT (Indonesia) | | 10,735,500 | 3,109,525 |
| Telkom Indonesia Persero Tbk PT ADR (Indonesia)(c) | | 26,499 | 763,171 |
| Vodacom Group Ltd. (South Africa) | | 74,832 | 512,925 |
| Vodafone Group PLC (United Kingdom) | | 647,011 | 777,142 |
| | | | 12,697,451 |
| Tobacco & Cannabis – 0.3% |
| British American Tobacco PLC (United Kingdom) | | 46,276 | 1,709,703 |
| Japan Tobacco, Inc. (Japan) | | 23,600 | 507,799 |
| KT&G Corp. (South Korea) | | 8,036 | 514,959 |
| | | | 2,732,461 |
| Transportation & Logistics – 1.5% |
| Canadian National Railway Co. (Canada) | | 20,779 | 2,478,311 |
| CCR S.A. (Brazil) | | 381,560 | 1,035,792 |
| DSV A/S (Denmark) | | 11,600 | 2,183,147 |
| East Japan Railway Co. (Japan) | | 35,200 | 2,014,202 |
| Ryanair Holdings PLC ADR (Ireland)* | | 47,491 | 4,539,665 |
| | | | 12,251,117 |
| Transportation Equipment – 1.1% |
| Daimler Truck Holding A.G. (Germany)* | | 140,195 | 4,632,460 |
| Volvo AB, Class B (Sweden) | | 155,800 | 3,203,359 |
| Weichai Power Co. Ltd., Class H (China) | | 598,000 | 883,928 |
| | | | 8,719,747 |
| Wholesale - Consumer Staples – 0.5% |
| ITOCHU Corp. (Japan) | | 69,200 | 2,295,700 |
| Mitsubishi Corp. (Japan) | | 48,000 | 1,779,642 |
| | | | 4,075,342 |
| Wholesale - Discretionary – 0.1% |
| Bunzl PLC (United Kingdom) | | 10,139 | 403,604 |
Total Common Stocks
(Cost $715,874,870) | 737,096,394 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| | | Number
of Shares | Value |
|
| Preferred Stocks – 0.6% |
| Chemicals – 0.1% |
| Sociedad Quimica y Minera de Chile S.A. ADR, 19.11% (Chile)(c)(f) | | 7,275 | $ 490,917 |
| Technology Hardware – 0.5% |
| Samsung Electronics Co. Ltd., 2.59% (South Korea)(f) | | 97,300 | 4,067,615 |
Total Preferred Stocks
(Cost $5,794,547) | 4,558,532 |
|
| Rights – 0.0%(e) |
| Retail - Discretionary – 0.0%(e) |
| Localiza Rent a Car S.A. (Brazil)* | | 537 | 1,847 |
Total Rights
(Cost $0) | 1,847 |
|
| Investment Companies – 1.9% |
| iShares MSCI South Korea ETF(c) | | 255,880 | 15,524,240 |
Total Investment Companies
(Cost $16,132,744) | 15,524,240 |
| | | Numberof Shares | Value |
| Short-Term Investments – 6.7% |
| Money Market Funds – 6.7% |
| Northern Institutional Funds - Liquid Assets Portfolio, 4.85%(g)(h) | | 15,575,650 | $ 15,575,650 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(g) | | 38,064,735 | 38,064,735 |
Total Short-Term Investments
(Cost $53,640,385) | 53,640,385 |
Total Investments – 100.9%
(Cost $791,442,546) | 810,821,398 |
| Liabilities less Other Assets – (0.9)% | (6,840,797) |
| NET ASSETS – 100.0% | $803,980,601 |
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (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. | | |
| (c) | Security either partially or fully on loan (See Note 7). | | |
| (d) | Investment is valued using significant unobservable inputs (Level 3) (See Note 4 regarding investments in Russian securities). | | |
| (e) | Amount rounds to less than 0.05%. | | |
| (f) | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. | | |
| (g) | 7-day current yield as of April 30, 2023 is disclosed. | | |
| (h) | 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 |
| 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, 2023
Schedule of Investments (continued)
Morningstar International Equity Fund
| Concentration by Currency (%)(a) | |
| Euro | 23.1 |
| Japanese Yen | 17.0 |
| British Pound | 11.5 |
| U.S. Dollar | 11.3 |
| Hong Kong Dollar | 8.1 |
| All other currencies less than 5% | 29.0 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Country Diversification (%)(a) | |
| Japan | 17.0 |
| China | 11.7 |
| Germany | 10.2 |
| United Kingdom | 8.4 |
| France | 6.8 |
| United States | 5.9 |
| All other countries less than 5%(b) | 40.0 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. |
| (b) Includes Other. |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ 90,780,171 | $646,316,223 | $—* | $737,096,394 |
| Preferred Stocks | 490,917 | 4,067,615 | — | 4,558,532 |
| Rights | 1,847 | — | — | 1,847 |
| Investment Companies | 15,524,240 | — | — | 15,524,240 |
| Short-Term Investments | 53,640,385 | — | — | 53,640,385 |
| Total Investments | $160,437,560 | $650,383,838 | $ — | $810,821,398 |
| *Includes securities determined to have no value as of April 30, 2023. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Global Income Fund
| | | Par (a) | Value |
| Asset-Backed Securities – 5.2% |
| Other – 5.0% |
| AB BSL CLO 4 Ltd., Series 2023-4A, Class A, (3M CME Term SOFR + 2.00%, 2.00% Floor), 6.96%, 4/20/36(b)(c) | | $100,000 | $ 99,900 |
| AGL CLO Ltd., Series 2021-12A, Class D, (3M USD LIBOR + 2.85%, 2.85% Floor), 8.10%, 7/20/34(b)(c) | | 250,000 | 229,978 |
| Aimco CLO 12 Ltd., Series 2020-12A, Class DR, (3M CME Term SOFR + 2.90%, 2.90% Floor), 7.89%, 1/17/32(b)(c) | | 250,000 | 236,276 |
| Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates, Series 2005-R3, Class M4, (1M USD LIBOR + 0.93%, 0.93% Floor), 5.95%, 5/25/35(c) | | 140,780 | 137,643 |
| Apex Credit CLO Ltd., Series 2022-1A, Class D, (3M CME Term SOFR + 4.40%, 4.40% Floor), 9.47%, 4/22/33(b)(c) | | 130,000 | 119,455 |
| Bain Capital Credit CLO Ltd., | | | |
| Series 2022-2A, Class D1, (3M CME Term SOFR + 3.65%, 3.65% Floor), 8.72%, 4/22/35(b)(c) | | 250,000 | 229,507 |
| Series 2023-1A, Class AN, (3M CME Term SOFR + 1.83%, 1.83% Floor), 6.57%, 4/16/36(b)(c) | | 230,000 | 229,580 |
| Barings CLO Ltd., | | | |
| Series 2018-3A, Class D, (3M USD LIBOR + 2.90%), 8.15%, 7/20/29(b)(c) | | 260,000 | 250,449 |
| Series 2016-2A, Class ER2, (3M USD LIBOR + 6.50%, 6.50% Floor), 11.75%, 1/20/32(b)(c) | | 390,000 | 357,828 |
|
| BlueMountain CLO XXIX Ltd., Series 2020-29A, Class ER, (3M USD LIBOR + 6.86%, 6.86% Floor), 12.12%, 7/25/34(b)(c) | | 250,000 | 228,963 |
| | | Par (a) | Value |
| Other (Continued) |
| Bristol Park CLO Ltd., | | | |
| Series 2016-1A, Class DR, (3M USD LIBOR + 2.95%, 2.95% Floor), 8.21%, 4/15/29(b)(c) | | $250,000 | $230,450 |
| Series 2016-1A, Class ER, (3M USD LIBOR + 7.00%, 7.00% Floor), 12.26%, 4/15/29(b)(c) | | 350,000 | 306,889 |
|
| Canyon CLO Ltd., Series 2020-1A, Class BR, (3M USD LIBOR + 1.70%, 1.70% Floor), 6.96%, 7/15/34(b)(c) | | 250,000 | 241,087 |
| CarVal CLO VII-C Ltd., Series 2023-1A, Class A1, (3M CME Term SOFR + 2.20%, 2.20% Floor), 6.88%, 1/20/35(b)(c) | | 240,000 | 239,744 |
| Cook Park CLO Ltd., Series 2018-1A, Class D, (3M USD LIBOR + 2.60%), 7.86%, 4/17/30(b)(c) | | 250,000 | 226,969 |
| GoodLeap Sustainable Home Solutions Trust, Series 2021-3CS, Class C, 3.50%, 5/20/48(b) | | 486,844 | 323,691 |
| Greenwood Park CLO Ltd., Series 2018-1A, Class E, (3M USD LIBOR + 4.95%), 10.21%, 4/15/31(b)(c) | | 250,000 | 203,429 |
| Hildene Community Funding CDO Ltd., Series 2015-1A, Class ARR, 2.60%, 11/01/35(b) | | 244,451 | 201,923 |
| Jay Park CLO Ltd., Series 2016-1A, Class DR, (3M USD LIBOR + 5.20%, 5.20% Floor), 10.45%, 10/20/27(b)(c) | | 590,000 | 548,312 |
| JP Morgan Mortgage Acquisition Trust, Series 2007-CH4, Class M1, (1M USD LIBOR + 0.23%, 0.23% Floor), 5.25%, 5/25/37(c) | | 270,000 | 257,078 |
| KKR CLO 40 Ltd., Series 40A, Class D, (3M CME Term SOFR + 3.90%, 3.90% Floor), 8.95%, 10/20/34(b)(c) | | 300,000 | 272,835 |
| KREF Ltd., Series 2022-FL3, Class D, (1M CME Term SOFR + 2.80%, 2.80% Floor), 7.72%, 2/17/39(b)(c) | | 150,000 | 137,796 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Other (Continued) |
|
| MF1 LLC, Series 2022-FL9, Class A, (1M CME Term SOFR + 2.15%, 2.15% Floor), 7.07%, 6/19/37(b)(c) | | $240,000 | $237,683 |
| MF1 Ltd., Series 2020-FL4, Class A, (1M CME Term SOFR + 1.81%, 1.70% Floor), 6.70%, 11/15/35(b)(c) | | 164,435 | 163,746 |
| Mill City Mortgage Loan Trust, Series 2018-2, Class M3, 3.75%, 5/25/58(b)(d) | | 209,683 | 189,241 |
| Nassau Ltd., Series 2021-IA, Class D, (3M USD LIBOR + 3.75%, 3.75% Floor), 9.01%, 8/26/34(b)(c) | | 250,000 | 228,463 |
| National Collegiate Student Loan Trust, Series 2007-2, Class A4, (1M USD LIBOR + 0.29%), 5.31%, 1/25/33(c) | | 420,037 | 384,055 |
| Neuberger Berman Loan Advisers CLO 33 Ltd., Series 2019-33A, Class DR, (3M USD LIBOR + 2.90%, 2.90% Floor), 8.16%, 10/16/33(b)(c) | | 250,000 | 233,865 |
| Oaktree CLO Ltd., Series 2022-1A, Class E, (3M CME Term SOFR + 7.76%, 7.76% Floor), 12.52%, 5/15/33(b)(c) | | 487,000 | 460,698 |
| Ocean Trails CLO IX, Series 2020-9A, Class DR, (3M USD LIBOR + 3.75%, 3.75% Floor), 9.01%, 10/15/34(b)(c) | | 280,000 | 253,404 |
| Ocean Trails CLO X, Series 2020-10A, Class AR, (3M USD LIBOR + 1.22%, 1.22% Floor), 6.48%, 10/15/34(b)(c) | | 250,000 | 245,198 |
| Ocean Trails CLO XIV Ltd., Series 2023-14A, Class A1, (3M CME Term SOFR + 2.00%, 2.00% Floor), 6.78%, 1/20/35(b)(c) | | 220,000 | 220,244 |
| Palmer Square Loan Funding Ltd., Series 2022-3A, Class C, (3M CME Term SOFR + 5.40%, 5.40% Floor), 10.39%, 4/15/31(b)(c) | | 210,000 | 209,815 |
| | | Par (a) | Value |
| Other (Continued) |
|
| Stonepeak ABS, Series 2021-1A, Class A, 2.68%, 2/28/33(b) | | $344,248 | $ 309,086 |
| Sycamore Tree CLO Ltd., Series 2023-2A, Class A, (3M CME Term SOFR + 2.33%, 2.33% Floor), 7.01%, 4/20/35(b)(c) | | 250,000 | 251,745 |
| Symphony CLO 37 Ltd., Series 2022-37A, Class A1A, (3M CME Term SOFR + 2.30%, 2.30% Floor), 6.55%, 10/20/34(b)(c) | | 250,000 | 250,196 |
| Symphony CLO XXV Ltd., Series 2021-25A, Class D, (3M USD LIBOR + 3.60%, 3.60% Floor), 8.87%, 4/19/34(b)(c) | | 250,000 | 232,926 |
| Towd Point Mortgage Trust, | | | |
| Series 2015-5, Class B3, 3.98%, 5/25/55(b)(d) | | 220,000 | 193,596 |
| Series 2017-5, Class B1, (1M USD LIBOR + 1.80%), 4.33%, 2/25/57(b)(c) | | 250,000 | 240,624 |
| Series 2019-HY2, Class B1, (1M USD LIBOR + 2.25%, 2.25% Floor), 7.27%, 5/25/58(b)(c) | | 190,000 | 184,875 |
|
| TSTAT Ltd., Series 2022-2A, Class C, (3M CME Term SOFR + 4.80%, 4.80% Floor), 9.31%, 1/20/31(b)(c) | | 250,000 | 252,869 |
| VERDE CLO Ltd., Series 2019-1A, Class DR, (3M USD LIBOR + 3.25%, 3.25% Floor), 8.51%, 4/15/32(b)(c) | | 250,000 | 232,838 |
| Voya CLO Ltd., Series 2020-3A, Class DR, (3M USD LIBOR + 3.25%, 3.25% Floor), 8.50%, 10/20/34(b)(c) | | 260,000 | 237,677 |
| Whitebox CLO IV Ltd., Series 2023-4A, Class A1, (3M CME Term SOFR + 2.15%, 2.15% Floor), 6.93%, 4/20/36(b)(c) | | 260,000 | 259,609 |
| | | | 10,782,235 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Student Loan – 0.2% |
| SMB Private Education Loan Trust, Series 2021-A, Class D1, 3.86%, 1/15/53(b) | | $400,000 | $ 367,727 |
Total Asset-Backed Securities
(Cost $11,566,729) | 11,149,962 |
| | | Number
of Shares | |
| Common Stocks – 44.9% |
| Advertising & Marketing – 0.0%(e) |
| WPP PLC (United Kingdom) | | 4,171 | 48,611 |
| Aerospace & Defense – 1.1% |
| BAE Systems PLC (United Kingdom) | | 7,158 | 91,193 |
| Raytheon Technologies Corp. | | 22,561 | 2,253,844 |
| | | | 2,345,037 |
| Asset Management – 1.5% |
| BlackRock, Inc. | | 495 | 332,244 |
| Blackstone, Inc. | | 2,169 | 193,757 |
| Macquarie Korea Infrastructure Fund (South Korea) | | 242,128 | 2,253,549 |
| St. James's Place PLC (United Kingdom) | | 2,934 | 44,620 |
| T. Rowe Price Group, Inc. | | 2,863 | 321,601 |
| | | | 3,145,771 |
| Automotive – 1.3% |
| Mercedes-Benz Group A.G. (Germany) | | 34,498 | 2,690,362 |
| Banking – 2.8% |
| Barclays PLC (United Kingdom) | | 29,517 | 59,459 |
| BNP Paribas S.A. (France) | | 32,225 | 2,082,167 |
| HSBC Holdings PLC (United Kingdom) | | 36,782 | 265,101 |
| JPMorgan Chase & Co. | | 12,830 | 1,773,619 |
| Lloyds Banking Group PLC (United Kingdom) | | 164,204 | 99,758 |
| NatWest Group PLC (United Kingdom) | | 13,127 | 43,242 |
| PNC Financial Services Group (The), Inc. | | 1,854 | 241,483 |
| Standard Chartered PLC (United Kingdom) | | 6,454 | 51,136 |
| Svenska Handelsbanken AB, Class A (Sweden) | | 105,363 | 931,386 |
| | | Number
of Shares | Value |
| Banking (Continued) |
| Truist Financial Corp. | | 3,253 | $ 105,983 |
| U.S. Bancorp | | 7,322 | 250,998 |
| | | | 5,904,332 |
| Beverages – 2.1% |
| Arca Continental S.A.B. de C.V. (Mexico) | | 312,027 | 2,980,652 |
| Coca-Cola (The) Co. | | 12,334 | 791,226 |
| Diageo PLC (United Kingdom) | | 4,905 | 223,747 |
| PepsiCo, Inc. | | 3,014 | 575,343 |
| | | | 4,570,968 |
| Biotechnology & Pharmaceuticals – 3.8% |
| AbbVie, Inc. | | 4,168 | 629,868 |
| Amgen, Inc. | | 1,780 | 426,737 |
| AstraZeneca PLC (United Kingdom) | | 2,937 | 432,218 |
| Bristol-Myers Squibb Co. | | 6,314 | 421,586 |
| Gilead Sciences, Inc. | | 5,148 | 423,217 |
| GSK PLC | | 8,428 | 151,983 |
| Johnson & Johnson | | 5,444 | 891,183 |
| Merck & Co., Inc. | | 15,592 | 1,800,408 |
| Novartis A.G. ADR (Switzerland)(f) | | 23,767 | 2,437,781 |
| Pfizer, Inc. | | 13,086 | 508,915 |
| | | | 8,123,896 |
| Cable & Satellite – 0.5% |
| Comcast Corp., Class A | | 23,791 | 984,234 |
| Chemicals – 0.2% |
| Air Products and Chemicals, Inc. | | 1,800 | 529,848 |
| Commercial Support Services – 0.1% |
| Compass Group PLC (United Kingdom) | | 3,388 | 89,379 |
| Rentokil Initial PLC (United Kingdom) | | 6,052 | 48,181 |
| | | | 137,560 |
| Construction Materials – 1.3% |
| Cie de Saint-Gobain (France) | | 27,447 | 1,589,036 |
| Xinyi Glass Holdings Ltd. (China) | | 622,745 | 1,139,337 |
| | | | 2,728,373 |
| Containers & Packaging – 0.9% |
| Amcor PLC | | 37,959 | 416,410 |
| Smurfit Kappa Group PLC (Ireland) | | 43,776 | 1,621,863 |
| | | | 2,038,273 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Diversified Industrials – 1.3% |
| Emerson Electric Co. | | 5,163 | $ 429,872 |
| Illinois Tool Works, Inc. | | 927 | 224,278 |
| Siemens A.G. (Germany)(g) | | 12,761 | 2,103,424 |
| | | | 2,757,574 |
| Electric Utilities – 1.2% |
| American Electric Power Co., Inc. | | 4,191 | 387,332 |
| Dominion Energy, Inc. | | 5,974 | 341,354 |
| Duke Energy Corp. | | 12,232 | 1,209,500 |
| Edison International | | 5,637 | 414,883 |
| National Grid PLC (United Kingdom) | | 6,497 | 93,154 |
| SSE PLC (United Kingdom) | | 2,085 | 48,108 |
| | | | 2,494,331 |
| Food – 0.3% |
| Associated British Foods PLC (United Kingdom) | | 2,216 | 54,599 |
| Mondelez International, Inc., Class A | | 6,610 | 507,119 |
| | | | 561,718 |
| Forestry, Paper & Wood Products – 0.7% |
| UPM-Kymmene OYJ (Finland) | | 44,718 | 1,426,076 |
| Gas & Water Utilities – 0.1% |
| NiSource, Inc. | | 8,206 | 233,543 |
| Severn Trent PLC (United Kingdom) | | 1,003 | 36,944 |
| | | | 270,487 |
| Health Care Facilities & Services – 0.1% |
| CVS Health Corp. | | 4,111 | 301,377 |
| Home Construction – 0.0%(e) |
| Berkeley Group Holdings (The) PLC (United Kingdom) | | 881 | 49,303 |
| Household Products – 0.8% |
| Haleon PLC | | 13,662 | 60,068 |
| Kimberly-Clark Corp. | | 2,501 | 362,370 |
| Procter & Gamble (The) Co. | | 5,258 | 822,246 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 1,708 | 138,023 |
| Unilever PLC (United Kingdom) | | 4,921 | 274,012 |
| | | | 1,656,719 |
| Industrial Support Services – 0.0%(e) |
| Ashtead Group PLC (United Kingdom) | | 532 | 30,673 |
| | | Number
of Shares | Value |
| Institutional Financial Services – 1.6% |
| CME Group, Inc. | | 3,868 | $ 718,558 |
| London Stock Exchange Group PLC (United Kingdom) | | 931 | 97,749 |
| Morgan Stanley | | 27,454 | 2,470,037 |
| Northern Trust Corp. | | 2,932 | 229,165 |
| | | | 3,515,509 |
| Insurance – 1.1% |
| Aviva PLC (United Kingdom) | | 5,339 | 28,427 |
| Legal & General Group PLC (United Kingdom) | | 11,144 | 32,880 |
| Prudential PLC (Hong Kong) | | 5,414 | 82,840 |
| Zurich Insurance Group A.G. (Switzerland) | | 4,710 | 2,284,125 |
| | | | 2,428,272 |
| Leisure Facilities & Services – 2.3% |
| Entain PLC (United Kingdom) | | 2,232 | 40,670 |
| InterContinental Hotels Group PLC (United Kingdom) | | 627 | 43,110 |
| McDonald's Corp. | | 1,196 | 353,717 |
| OPAP S.A. (Greece) | | 244,764 | 4,173,890 |
| Starbucks Corp. | | 2,211 | 252,695 |
| | | | 4,864,082 |
| Leisure Products – 0.1% |
| Hasbro, Inc. | | 4,453 | 263,707 |
| Machinery – 0.0%(e) |
| Smiths Group PLC (United Kingdom) | | 1,564 | 33,070 |
| Medical Equipment & Devices – 1.7% |
| Medtronic PLC | | 38,421 | 3,494,390 |
| Smith & Nephew PLC (United Kingdom) | | 3,068 | 50,529 |
| | | | 3,544,919 |
| Metals & Mining – 1.2% |
| Anglo American PLC (South Africa) | | 2,179 | 67,144 |
| Glencore PLC (Australia) | | 234,286 | 1,382,904 |
| Rio Tinto Ltd. (Australia) | | 12,619 | 946,484 |
| Rio Tinto PLC (Australia) | | 2,549 | 162,046 |
| | | | 2,558,578 |
| Oil & Gas Producers – 3.3% |
| BP PLC (United Kingdom) | | 34,600 | 232,131 |
| Exxon Mobil Corp. | | 3,957 | 468,271 |
| Gazprom PJSC (Russia)(h) | | 33,780 | — |
| Kinder Morgan, Inc. | | 12,609 | 216,244 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Oil & Gas Producers (Continued) |
| LUKOIL PJSC (Russia)(h) | | 1,232 | $ — |
| ONEOK, Inc.(f) | | 4,891 | 319,920 |
| Petroleo Brasileiro S.A. (Brazil) | | 236,745 | 1,259,242 |
| Rosneft Oil Co. PJSC (Russia)(h) | | 17,410 | — |
| Shell PLC (Netherlands) | | 13,339 | 409,883 |
| TotalEnergies S.E. ADR (France) | | 29,948 | 1,914,576 |
| Williams (The) Cos., Inc. | | 10,953 | 331,438 |
| Woodside Energy Group Ltd. (Australia) | | 82,050 | 1,861,742 |
| | | | 7,013,447 |
| Publishing & Broadcasting – 0.0%(e) |
| Informa PLC (United Kingdom) | | 3,850 | 35,001 |
| Real Estate Investment Trusts – 3.8% |
| Crown Castle, Inc. | | 3,080 | 379,117 |
| Federal Realty Investment Trust | | 3,265 | 322,876 |
| PowerGrid Infrastructure Investment Trust (India)(b) | | 1,522,000 | 2,295,751 |
| Realty Income Corp. | | 3,512 | 220,694 |
| Simon Property Group, Inc. | | 2,942 | 333,388 |
| TF Administradora Industrial S. de R.L. de C.V. (Mexico) | | 1,572,073 | 2,946,626 |
| VICI Properties, Inc. | | 47,330 | 1,606,380 |
| | | | 8,104,832 |
| Retail - Consumer Staples – 0.0%(e) |
| Tesco PLC (United Kingdom) | | 23,463 | 82,952 |
| Retail - Discretionary – 0.1% |
| Advance Auto Parts, Inc. | | 2,253 | 282,819 |
| Kingfisher PLC (United Kingdom) | | 10,194 | 33,040 |
| | | | 315,859 |
| Semiconductors – 3.2% |
| Broadcom, Inc. | | 7,133 | 4,468,824 |
| MediaTek, Inc. (Taiwan) | | 81,250 | 1,766,688 |
| Texas Instruments, Inc. | | 3,560 | 595,232 |
| | | | 6,830,744 |
| Technology Hardware – 0.8% |
| NetApp, Inc. | | 3,375 | 212,254 |
| Unimicron Technology Corp. (Taiwan) | | 327,000 | 1,553,690 |
| | | | 1,765,944 |
| | | Number
of Shares | Value |
| Technology Services – 0.3% |
| Experian PLC | | 1,751 | $ 61,994 |
| International Business Machines Corp. | | 4,138 | 523,085 |
| RELX PLC (United Kingdom) | | 3,650 | 121,613 |
| | | | 706,692 |
| Telecommunications – 3.2% |
| BCE, Inc. (Canada)(f) | | 37,025 | 1,779,792 |
| BT Group PLC (United Kingdom) | | 20,635 | 41,214 |
| Nippon Telegraph & Telephone Corp. (Japan) | | 84,000 | 2,563,174 |
| Softbank Corp. (Japan) | | 155,785 | 1,753,954 |
| Verizon Communications, Inc. | | 17,111 | 664,420 |
| Vodafone Group PLC (United Kingdom) | | 74,156 | 89,071 |
| | | | 6,891,625 |
| Tobacco & Cannabis – 1.4% |
| Altria Group, Inc. | | 6,799 | 323,020 |
| British American Tobacco PLC (United Kingdom) | | 5,262 | 194,409 |
| British American Tobacco PLC ADR (United Kingdom) | | 48,956 | 1,813,820 |
| Philip Morris International, Inc. | | 7,650 | 764,770 |
| | | | 3,096,019 |
| Transportation & Logistics – 0.2% |
| United Parcel Service, Inc., Class B | | 2,365 | 425,251 |
| Transportation Equipment – 0.5% |
| Volvo AB, Class B (Sweden) | | 56,479 | 1,161,248 |
| Wholesale - Discretionary – 0.0%(e) |
| Bunzl PLC (United Kingdom) | | 1,153 | 45,897 |
Total Common Stocks
(Cost $91,956,588) | 96,479,171 |
| | | Par (a) | |
| Convertible Bonds – 0.1% |
| Cable & Satellite – 0.1% |
| DISH Network Corp., 0.00%, 12/15/25(i) | | $330,000 | 160,925 |
Total Convertible Bonds
(Cost $208,344) | 160,925 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
|
| Corporate Bonds – 14.5% |
| Aerospace & Defense – 0.7% |
| Boeing (The) Co., | | | |
| 3.25%, 2/01/35 | | $280,000 | $ 229,092 |
| 5.81%, 5/01/50 | | 50,000 | 49,732 |
| 5.93%, 5/01/60 | | 90,000 | 88,928 |
| TransDigm, Inc., | | | |
| 6.25%, 3/15/26(b) | | 230,000 | 231,087 |
| 6.75%, 8/15/28(b) | | 410,000 | 416,372 |
|
| Triumph Group, Inc., 9.00%, 3/15/28(b) | | 420,000 | 425,762 |
| | | | 1,440,973 |
| Automotive – 0.9% |
| Clarios Global L.P./Clarios U.S. Finance Co., 8.50%, 5/15/27(b)(f) | | 250,000 | 251,462 |
| Ford Motor Co., | | | |
| 3.25%, 2/12/32(f) | | 720,000 | 558,372 |
| 6.10%, 8/19/32(f) | | 950,000 | 905,997 |
|
| PM General Purchaser LLC, 9.50%, 10/01/28(b) | | 280,000 | 265,300 |
| | | | 1,981,131 |
| Biotechnology & Pharmaceuticals – 0.1% |
| Bausch Health Cos., Inc., | | | |
| 5.50%, 11/01/25(b) | | 110,000 | 95,875 |
| 6.13%, 2/01/27(b) | | 90,000 | 64,851 |
| 5.00%, 1/30/28(b) | | 20,000 | 9,302 |
| | | | 170,028 |
| Cable & Satellite – 0.8% |
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.50%, 5/01/32 | | 370,000 | 296,213 |
| Charter Communications Operating LLC/Charter Communications Operating Capital, 5.13%, 7/01/49 | | 70,000 | 54,711 |
| CSC Holdings LLC, | | | |
| 6.50%, 2/01/29(b)(f) | | 600,000 | 500,960 |
| 5.75%, 1/15/30(b) | | 440,000 | 224,551 |
|
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 8/15/27(b) | | 310,000 | 272,047 |
| DISH DBS Corp., | | | |
| 5.88%, 11/15/24 | | 220,000 | 182,023 |
| 5.75%, 12/01/28(b) | | 150,000 | 106,636 |
|
| Time Warner Cable LLC, 6.75%, 6/15/39 | | 90,000 | 87,502 |
| | | | 1,724,643 |
| | | Par (a) | Value |
| Commercial Support Services – 0.4% |
| Allied Universal Holdco LLC/Allied Universal Finance Corp., 6.63%, 7/15/26(b) | | $260,000 | $250,628 |
| CoreCivic, Inc., 8.25%, 4/15/26(f) | | 430,000 | 434,390 |
| Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer, Inc., 5.00%, 2/01/26(b) | | 160,000 | 144,800 |
| TKC Holdings, Inc., 6.88%, 5/15/28(b) | | 80,000 | 71,100 |
| ZipRecruiter, Inc., 5.00%, 1/15/30(b) | | 60,000 | 52,402 |
| | | | 953,320 |
| Construction Materials – 0.1% |
| Advanced Drainage Systems, Inc., 6.38%, 6/15/30(b)(f) | | 120,000 | 118,719 |
| Smyrna Ready Mix Concrete LLC, 6.00%, 11/01/28(b) | | 160,000 | 149,748 |
| | | | 268,467 |
| Consumer Services – 0.3% |
| Adtalem Global Education, Inc., 5.50%, 3/01/28(b) | | 63,000 | 59,850 |
| Carriage Services, Inc., 4.25%, 5/15/29(b) | | 140,000 | 116,040 |
| StoneMor, Inc., 8.50%, 5/15/29(b) | | 240,000 | 198,072 |
| Upbound Group, Inc., 6.38%, 2/15/29(b)(f) | | 180,000 | 158,055 |
| | | | 532,017 |
| Containers & Packaging – 0.2% |
| Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC, 6.00%, 6/15/27(b)(f) | | 210,000 | 208,962 |
| Pactiv LLC, 8.38%, 4/15/27 | | 160,000 | 157,393 |
| Sealed Air Corp./Sealed Air Corp. U.S., 6.13%, 2/01/28(b) | | 60,000 | 60,882 |
| | | | 427,237 |
| Electrical Equipment – 0.1% |
| Vertiv Group Corp., 4.13%, 11/15/28(b) | | 290,000 | 261,779 |
| Engineering & Construction – 0.1% |
| Tutor Perini Corp., 6.88%, 5/01/25(b)(f) | | 330,000 | 238,953 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Food – 0.2% |
| Darling Ingredients, Inc., 6.00%, 6/15/30(b)(f) | | $320,000 | $ 316,565 |
| Simmons Foods, Inc., 4.63%, 3/01/29(b) | | 150,000 | 123,937 |
| | | | 440,502 |
| Health Care Facilities & Services – 0.5% |
| AdaptHealth LLC, 4.63%, 8/01/29(b) | | 220,000 | 178,287 |
| Akumin Escrow, Inc., 7.50%, 8/01/28(b) | | 150,000 | 105,327 |
| Akumin, Inc., 7.00%, 11/01/25(b)(f) | | 110,000 | 87,375 |
| CHS/Community Health Systems, Inc., | | | |
| 6.13%, 4/01/30(b) | | 400,000 | 284,689 |
| 4.75%, 2/15/31(b) | | 160,000 | 129,078 |
|
| Option Care Health, Inc., 4.38%, 10/31/29(b) | | 230,000 | 206,803 |
| Radiology Partners, Inc., 9.25%, 2/01/28(b)(f) | | 180,000 | 79,650 |
| US Renal Care, Inc., 10.63%, 7/15/27(b) | | 150,000 | 26,625 |
| | | | 1,097,834 |
| Home Construction – 0.0%(e) |
| MDC Holdings, Inc., 6.00%, 1/15/43 | | 50,000 | 44,051 |
| Industrial Intermediate Products – 0.2% |
| Chart Industries, Inc., 7.50%, 1/01/30(b) | | 100,000 | 103,000 |
| Park-Ohio Industries, Inc., 6.63%, 4/15/27 | | 370,000 | 294,150 |
| | | | 397,150 |
| Industrial Support Services – 0.5% |
| H&E Equipment Services, Inc., 3.88%, 12/15/28(b) | | 150,000 | 129,984 |
| United Rentals North America, Inc., | | | |
| 5.50%, 5/15/27 | | 100,000 | 99,358 |
| 4.88%, 1/15/28 | | 60,000 | 57,648 |
| 6.00%, 12/15/29(b) | | 850,000 | 862,656 |
| | | | 1,149,646 |
| Institutional Financial Services – 0.3% |
| Coinbase Global, Inc., 3.63%, 10/01/31(b) | | 120,000 | 67,058 |
| Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/29(b) | | 180,000 | 161,078 |
| | | Par (a) | Value |
| Institutional Financial Services (Continued) |
| LPL Holdings, Inc., 4.00%, 3/15/29(b)(f) | | $170,000 | $152,690 |
| StoneX Group, Inc., 8.63%, 6/15/25(b) | | 230,000 | 232,875 |
| | | | 613,701 |
| Insurance – 0.2% |
| Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc., (100% Cash), 7.63%, 10/15/25(b)(j) | | 400,000 | 364,327 |
| NMI Holdings, Inc., 7.38%, 6/01/25(b) | | 150,000 | 152,094 |
| | | | 516,421 |
| Internet Media & Services – 0.1% |
| Match Group Holdings II LLC, 5.00%, 12/15/27(b)(f) | | 60,000 | 56,528 |
| Ziff Davis, Inc., 4.63%, 10/15/30(b)(f) | | 210,000 | 184,513 |
| | | | 241,041 |
| Leisure Facilities & Services – 1.4% |
| AMC Entertainment Holdings, Inc., 7.50%, 2/15/29(b) | | 110,000 | 79,750 |
| Boyne USA, Inc., 4.75%, 5/15/29(b)(f) | | 360,000 | 326,089 |
| Caesars Entertainment, Inc., 7.00%, 2/15/30(b) | | 360,000 | 363,213 |
| Carnival Corp., | | | |
| 4.00%, 8/01/28(b) | | 200,000 | 173,369 |
| 10.50%, 6/01/30(b)(f) | | 210,000 | 199,274 |
|
| Carnival PLC, 7.88%, 6/01/27 | | 120,000 | 118,819 |
| Full House Resorts, Inc., 8.25%, 2/15/28(b)(f) | | 180,000 | 165,763 |
| Las Vegas Sands Corp., | | | |
| 3.20%, 8/08/24 | | 240,000 | 232,444 |
| 3.50%, 8/18/26 | | 30,000 | 28,195 |
|
| Mohegan Tribal Gaming Authority, 13.25%, 12/15/27(b) | | 320,000 | 343,024 |
| NCL Corp. Ltd., | | | |
| 3.63%, 12/15/24(b) | | 210,000 | 196,887 |
| 5.88%, 3/15/26(b) | | 390,000 | 335,933 |
| Royal Caribbean Cruises Ltd., | | | |
| 11.63%, 8/15/27(b) | | 160,000 | 170,206 |
| 9.25%, 1/15/29(b) | | 60,000 | 64,006 |
|
| Viking Cruises Ltd., 13.00%, 5/15/25(b) | | 20,000 | 21,050 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Leisure Facilities & Services (Continued) |
|
| Viking Ocean Cruises Ship VII Ltd., 5.63%, 2/15/29(b) | | $ 20,000 | $ 16,904 |
| VOC Escrow Ltd., 5.00%, 2/15/28(b) | | 20,000 | 17,785 |
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 7.13%, 2/15/31(b) | | 130,000 | 133,161 |
| | | | 2,985,872 |
| Machinery – 0.2% |
| Titan International, Inc., 7.00%, 4/30/28 | | 470,000 | 420,175 |
| Medical Equipment & Devices – 0.1% |
| Medline Borrower L.P., 5.25%, 10/01/29(b)(f) | | 260,000 | 224,890 |
| Metals & Mining – 0.0%(e) |
| Freeport-McMoRan, Inc., 5.45%, 3/15/43 | | 60,000 | 56,320 |
| Oil & Gas Producers – 3.4% |
| Berry Petroleum Co. LLC, 7.00%, 2/15/26(b) | | 540,000 | 513,580 |
| Blue Racer Midstream LLC/Blue Racer Finance Corp., 7.63%, 12/15/25(b) | | 220,000 | 220,453 |
| Chord Energy Corp., 6.38%, 6/01/26(b) | | 260,000 | 258,657 |
| Continental Resources, Inc., 5.75%, 1/15/31(b) | | 170,000 | 166,226 |
| DCP Midstream Operating L.P., 6.75%, 9/15/37(b) | | 200,000 | 217,270 |
| Devon Energy Corp., 5.00%, 6/15/45 | | 170,000 | 152,214 |
| Diamondback Energy, Inc., 3.13%, 3/24/31 | | 250,000 | 218,669 |
| Endeavor Energy Resources L.P./EER Finance, Inc., 5.75%, 1/30/28(b) | | 160,000 | 159,200 |
| Energy Transfer L.P., | | | |
| (5Y US Treasury CMT + 5.31%), 7.13%, 5/15/30(k)(l) | | 70,000 | 58,975 |
| 5.35%, 5/15/45 | | 90,000 | 80,165 |
| EQM Midstream Partners L.P., | | | |
| 7.50%, 6/01/30(b)(f) | | 100,000 | 97,067 |
| 4.75%, 1/15/31(b)(f) | | 150,000 | 122,936 |
|
| EQT Corp., 3.13%, 5/15/26(b) | | 20,000 | 18,574 |
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
|
| Genesis Energy L.P./Genesis Energy Finance Corp., 8.88%, 4/15/30(f) | | $150,000 | $150,201 |
| Hilcorp Energy I L.P./Hilcorp Finance Co., 6.25%, 4/15/32(b) | | 120,000 | 112,186 |
| Howard Midstream Energy Partners LLC, 6.75%, 1/15/27(b) | | 130,000 | 121,322 |
| Northern Oil and Gas, Inc., 8.13%, 3/01/28(b) | | 220,000 | 217,250 |
| Occidental Petroleum Corp., | | | |
| 6.63%, 9/01/30(f) | | 180,000 | 192,150 |
| 7.50%, 5/01/31 | | 40,000 | 44,629 |
| 6.45%, 9/15/36 | | 240,000 | 254,700 |
| 6.60%, 3/15/46 | | 50,000 | 53,357 |
| 4.40%, 8/15/49 | | 60,000 | 47,170 |
|
| Permian Resources Operating LLC, 5.88%, 7/01/29(b) | | 420,000 | 397,437 |
| Range Resources Corp., | | | |
| 8.25%, 1/15/29 | | 420,000 | 438,354 |
| 4.75%, 2/15/30(b)(f) | | 200,000 | 184,000 |
|
| ROCC Holdings LLC, 9.25%, 8/15/26(b) | | 130,000 | 139,425 |
| Rockies Express Pipeline LLC, 7.50%, 7/15/38(b) | | 100,000 | 91,229 |
| Southwestern Energy Co., | | | |
| 8.38%, 9/15/28 | | 270,000 | 282,696 |
| 4.75%, 2/01/32 | | 300,000 | 264,526 |
|
| Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 8.50%, 10/15/26(b) | | 120,000 | 115,200 |
| Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 6.00%, 12/31/30(b) | | 80,000 | 71,052 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., 4.88%, 2/01/31 | | 250,000 | 235,604 |
| Transcontinental Gas Pipe Line Co. LLC, 4.60%, 3/15/48 | | 100,000 | 88,137 |
| Venture Global Calcasieu Pass LLC, | | | |
| 6.25%, 1/15/30(b) | | 190,000 | 192,661 |
| 3.88%, 11/01/33(b) | | 370,000 | 311,991 |
|
| Viper Energy Partners L.P., 5.38%, 11/01/27(b) | | 250,000 | 241,662 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Western Midstream Operating L.P., | | | |
| 5.45%, 4/01/44 | | $340,000 | $ 295,634 |
| 5.30%, 3/01/48 | | 410,000 | 346,000 |
|
| Williams (The) Cos., Inc., 8.75%, 3/15/32 | | 30,000 | 36,192 |
| | | | 7,208,751 |
| Oil, Gas Services & Equipment – 0.1% |
| Noble Finance II LLC, 8.00%, 4/15/30(b) | | 90,000 | 92,162 |
| Transocean, Inc., 8.75%, 2/15/30(b) | | 90,000 | 90,809 |
| | | | 182,971 |
| Publishing & Broadcasting – 0.1% |
| McClatchy (The) Co. LLC, 11.00%, 7/15/27(b)(f)(j) | | 145,496 | 164,411 |
| Real Estate Investment Trusts – 0.2% |
| Diversified Healthcare Trust, | | | |
| 4.75%, 5/01/24 | | 20,000 | 18,249 |
| 9.75%, 6/15/25 | | 44,000 | 42,116 |
|
| IIP Operating Partnership L.P., 5.50%, 5/25/26 | | 160,000 | 137,695 |
| Service Properties Trust, | | | |
| 7.50%, 9/15/25 | | 230,000 | 225,257 |
| 5.50%, 12/15/27 | | 50,000 | 43,717 |
| | | | 467,034 |
| Real Estate Owners & Developers – 0.1% |
| Five Point Operating Co. L.P./Five Point Capital Corp., 7.88%, 11/15/25(b)(f) | | 170,000 | 153,425 |
| Renewable Energy – 0.2% |
| Sunnova Energy Corp., 5.88%, 9/01/26(b)(f) | | 410,000 | 371,563 |
| Retail - Discretionary – 0.6% |
| Abercrombie & Fitch Management Co., 8.75%, 7/15/25(b) | | 220,000 | 223,293 |
| Bath & Body Works, Inc., | | | |
| 5.25%, 2/01/28(f) | | 150,000 | 143,401 |
| 6.63%, 10/01/30(b)(f) | | 70,000 | 67,198 |
|
| Builders FirstSource, Inc., 4.25%, 2/01/32(b) | | 160,000 | 140,189 |
| Foot Locker, Inc., 4.00%, 10/01/29(b) | | 140,000 | 118,444 |
| Michaels (The) Cos., Inc., 7.88%, 5/01/29(b)(f) | | 160,000 | 107,258 |
| | | Par (a) | Value |
| Retail - Discretionary (Continued) |
|
| QVC, Inc., 4.38%, 9/01/28 | | $130,000 | $ 64,009 |
| Sally Holdings LLC/Sally Capital, Inc., 5.63%, 12/01/25(f) | | 320,000 | 316,000 |
| | | | 1,179,792 |
| Software – 0.4% |
| AthenaHealth Group, Inc., 6.50%, 2/15/30(b)(f) | | 270,000 | 221,762 |
| Central Parent, Inc./CDK Global, Inc., 7.25%, 6/15/29(b)(f) | | 340,000 | 336,647 |
| Crowdstrike Holdings, Inc., 3.00%, 2/15/29 | | 100,000 | 86,984 |
| Gen Digital, Inc., 7.13%, 9/30/30(b)(f) | | 220,000 | 220,992 |
| Rackspace Technology Global, Inc., 3.50%, 2/15/28(b)(f) | | 70,000 | 29,050 |
| | | | 895,435 |
| Specialty Finance – 0.5% |
| Apollo Commercial Real Estate Finance, Inc., 4.63%, 6/15/29(b) | | 140,000 | 106,010 |
| Aviation Capital Group LLC, 5.50%, 12/15/24(b) | | 80,000 | 78,937 |
| Burford Capital Global Finance LLC, 6.88%, 4/15/30(b) | | 200,000 | 186,000 |
| FirstCash, Inc., 5.63%, 1/01/30(b) | | 180,000 | 167,206 |
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., | | | |
| 4.25%, 2/01/27(b) | | 20,000 | 17,050 |
| 4.75%, 6/15/29(b) | | 80,000 | 63,300 |
|
| Midcap Financial Issuer Trust, 6.50%, 5/01/28(b) | | 200,000 | 180,669 |
| Navient Corp., 5.63%, 8/01/33 | | 50,000 | 37,476 |
| Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | |
| 3.63%, 3/01/29(b) | | 280,000 | 236,746 |
| 3.88%, 3/01/31(b) | | 20,000 | 16,152 |
| | | | 1,089,546 |
| Technology Hardware – 0.2% |
| CommScope, Inc., | | | |
| 6.00%, 3/01/26(b) | | 20,000 | 19,101 |
| 7.13%, 7/01/28(b)(f) | | 20,000 | 14,350 |
| 4.75%, 9/01/29(b)(f) | | 190,000 | 153,434 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Technology Hardware (Continued) |
|
| NCR Corp., 5.13%, 4/15/29(b) | | $160,000 | $138,400 |
| Viavi Solutions, Inc., 3.75%, 10/01/29(b)(f) | | 60,000 | 50,100 |
| | | | 375,385 |
| Technology Services – 0.1% |
| Paysafe Finance PLC/Paysafe Holdings U.S. Corp., 4.00%, 6/15/29(b)(f) | | 120,000 | 93,790 |
| Sabre GLBL, Inc., 11.25%, 12/15/27(b) | | 200,000 | 175,750 |
| | | | 269,540 |
| Tobacco & Cannabis – 0.0%(e) |
| Altria Group, Inc., 5.95%, 2/14/49 | | 80,000 | 75,505 |
| Transportation & Logistics – 1.2% |
| American Airlines Pass Through Trust, Series 2017-1, Class B, 4.95%, 2/15/25 | | 112,860 | 108,315 |
| American Airlines, Inc., | | | |
| 11.75%, 7/15/25(b) | | 140,000 | 154,008 |
| 7.25%, 2/15/28(b) | | 160,000 | 155,621 |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | |
| 5.50%, 4/20/26(b) | | 80,000 | 78,560 |
| 5.75%, 4/20/29(b) | | 170,000 | 161,549 |
|
| Carriage Purchaser, Inc., 7.88%, 10/15/29(b) | | 70,000 | 51,400 |
| Delta Air Lines, Inc., 7.00%, 5/01/25(b) | | 360,000 | 371,377 |
| Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd., 5.75%, 1/20/26(b)(f) | | 430,000 | 400,596 |
| Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 6/20/27(b) | | 187,000 | 186,701 |
| Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., | | | |
| 8.00%, 9/20/25(b) | | 130,000 | 131,217 |
| 8.00%, 9/20/25(b) | | 140,000 | 141,411 |
|
| United Airlines Pass Through Trust, Series 2020-1, Class B, 4.88%, 1/15/26 | | 41,100 | 39,844 |
| United Airlines, Inc., 4.63%, 4/15/29(b) | | 110,000 | 99,553 |
| | | Par (a) | Value |
| Transportation & Logistics (Continued) |
|
| XPO CNW, Inc., 6.70%, 5/01/34 | | $370,000 | $ 339,014 |
| XPO Escrow Sub LLC, 7.50%, 11/15/27(b) | | 50,000 | 51,249 |
| | | | 2,470,415 |
| Transportation Equipment – 0.0%(e) |
| Allison Transmission, Inc., 4.75%, 10/01/27(b) | | 70,000 | 66,693 |
Total Corporate Bonds
(Cost $33,108,461) | 31,156,617 |
|
| Foreign Issuer Bonds – 7.5% |
| Angola – 0.1% |
| Angolan Government International Bond, 8.75%, 4/14/32(b) | | 210,000 | 173,548 |
| Argentina – 0.4% |
| Provincia de Buenos Aires, (Step to 6.38% on 9/1/23), 5.25%, 9/01/37(b)(m) | | 600,000 | 185,593 |
| Provincia de Cordoba, 6.99%, 6/01/27(b) | | 200,000 | 139,867 |
| Transportadora de Gas del Sur S.A., 6.75%, 5/02/25(b) | | 200,000 | 174,548 |
| YPF S.A., 8.50%, 7/28/25(b) | | 400,000 | 333,171 |
| | | | 833,179 |
| Brazil – 0.4% |
| Braskem Netherlands Finance B.V., 4.50%, 1/10/28(b) | | 270,000 | 247,090 |
| MercadoLibre, Inc., 3.13%, 1/14/31 | | 270,000 | 209,322 |
| Petrobras Global Finance B.V., 5.30%, 1/27/25 | | 150,000 | 149,170 |
| Suzano Austria GmbH, 3.13%, 1/15/32 | | 250,000 | 198,769 |
| Vale Overseas Ltd., 6.25%, 8/10/26(f) | | 130,000 | 134,550 |
| | | | 938,901 |
| Canada – 0.6% |
| Air Canada, 3.88%, 8/15/26(b) | | 250,000 | 231,421 |
| GFL Environmental, Inc., | | | |
| 5.13%, 12/15/26(b) | | 110,000 | 108,210 |
| 4.75%, 6/15/29(b)(f) | | 70,000 | 65,150 |
|
| Hudbay Minerals, Inc., 6.13%, 4/01/29(b)(f) | | 90,000 | 84,177 |
| MEG Energy Corp., | | | |
| 7.13%, 2/01/27(b) | | 200,000 | 204,989 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Canada (Continued) |
| MEG Energy Corp., | | | |
| 5.88%, 2/01/29(b) | | $ 40,000 | $ 38,405 |
|
| Superior Plus L.P./Superior General Partner, Inc., 4.50%, 3/15/29(b) | | 50,000 | 44,284 |
| TransAlta Corp., | | | |
| 7.75%, 11/15/29 | | 90,000 | 94,507 |
| 6.50%, 3/15/40 | | 380,000 | 353,400 |
| | | | 1,224,543 |
| Chile – 0.0%(e) |
| VTR Comunicaciones S.p.A., 5.13%, 1/15/28(b) | | 200,000 | 111,000 |
| China – 0.2% |
| Global Aircraft Leasing Co. Ltd., 6.50%, 9/15/24(b)(j) | | 259,062 | 231,270 |
| Prosus N.V., 3.06%, 7/13/31(b) | | 270,000 | 212,673 |
| | | | 443,943 |
| Denmark – 0.1% |
| Danske Bank A/S, (1Y US Treasury CMT + 2.10%), 6.47%, 1/09/26(b)(l) | | 270,000 | 271,925 |
| Dominican Republic – 0.1% |
| Dominican Republic International Bond, 4.88%, 9/23/32 | | 310,000 | 266,907 |
| France – 0.2% |
| BNP Paribas S.A., (5Y US Treasury CMT + 4.90%), 7.75%, 8/16/29(b)(k)(l) | | 200,000 | 191,000 |
| Credit Agricole S.A., (5Y USD Swap Rate + 6.19%), 8.13%, 12/23/25(b)(k)(l) | | 200,000 | 198,160 |
| | | | 389,160 |
| Gabon – 0.1% |
| Gabon Government International Bond, 7.00%, 11/24/31(b) | | 200,000 | 147,520 |
| Germany – 0.2% |
| ZF North America Capital, Inc., | | | |
| 4.75%, 4/29/25(b) | | 330,000 | 322,322 |
| 7.13%, 4/14/30(b) | | 160,000 | 165,151 |
| | | | 487,473 |
| Guatemala – 0.1% |
| Millicom International Cellular S.A., 4.50%, 4/27/31(b) | | 250,000 | 193,526 |
| | | Par (a) | Value |
| Hong Kong – 0.2% |
| Melco Resorts Finance Ltd., | | | |
| 4.88%, 6/06/25(b) | | $ 200,000 | $ 187,834 |
| 5.38%, 12/04/29(b) | | 200,000 | 165,439 |
| | | | 353,273 |
| Indonesia – 0.6% |
| Indonesia Government International Bond, 3.50%, 1/11/28 | | 200,000 | 192,827 |
| Indonesia Treasury Bond, | | | |
| 7.00%, 5/15/27 | IDR | 4,902,000,000 | 343,634 |
| 6.50%, 2/15/31 | IDR | 9,636,000,000 | 657,677 |
| | | | 1,194,138 |
| Ireland – 0.1% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.30%, 1/30/32 | | 300,000 | 245,722 |
| Avolon Holdings Funding Ltd., 4.25%, 4/15/26(b) | | 60,000 | 56,183 |
| | | | 301,905 |
| Israel – 0.4% |
| Teva Pharmaceutical Finance Co. LLC, 6.15%, 2/01/36(f) | | 430,000 | 393,752 |
| Teva Pharmaceutical Finance Netherlands III B.V., | | | |
| 4.75%, 5/09/27 | | 210,000 | 196,673 |
| 8.13%, 9/15/31(f) | | 250,000 | 263,996 |
| | | | 854,421 |
| Italy – 0.1% |
| UniCredit S.p.A., (5Y US Treasury CMT + 4.75%), 5.46%, 6/30/35(b)(l) | | 210,000 | 178,927 |
| Ivory Coast – 0.1% |
| Ivory Coast Government International Bond, 5.75%, 12/31/32 | | 149,236 | 138,044 |
| Jordan – 0.1% |
| Jordan Government International Bond, 7.75%, 1/15/28(b) | | 230,000 | 234,071 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Kazakhstan – 0.2% |
| Kazakhstan Government International Bond, 5.13%, 7/21/25 | | $ 220,000 | $ 227,628 |
| KazMunayGas National Co. JSC, 4.75%, 4/19/27(b) | | 250,000 | 237,249 |
| | | | 464,877 |
| Kuwait – 0.1% |
| MEGlobal Canada ULC, 5.88%, 5/18/30(b) | | 210,000 | 215,015 |
| Luxembourg – 0.5% |
| Altice France Holding S.A., 10.50%, 5/15/27(b) | | 620,000 | 457,857 |
| ARD Finance S.A., (100% Cash), 6.50%, 6/30/27(b)(j) | | 200,000 | 163,903 |
| FAGE International S.A./FAGE USA Dairy Industry, Inc., 5.63%, 8/15/26(b) | | 420,000 | 392,175 |
| | | | 1,013,935 |
| Macau – 0.4% |
| Sands China Ltd., 3.35%, 3/08/29 | | 450,000 | 378,811 |
| Wynn Macau Ltd., 4.88%, 10/01/24(b) | | 480,000 | 463,052 |
| | | | 841,863 |
| Mexico – 0.4% |
| Banco Mercantil del Norte S.A., | | | |
| (10Y US Treasury CMT + 5.35%), 7.63%, 1/10/28(b)(k)(l) | | 230,000 | 209,336 |
| (10Y US Treasury CMT + 5.47%), 7.50%, 6/27/29(b)(k)(l) | | 250,000 | 220,625 |
|
| Mexican Bonos, 5.75%, 3/05/26 | MXN | 4,910,000 | 247,583 |
| Mexico Government International Bond, 4.75%, 3/08/44 | | 300,000 | 260,897 |
| | | | 938,441 |
| Panama – 0.1% |
| Panama Government International Bond, 4.50%, 4/01/56 | | 200,000 | 151,364 |
| Peru – 0.3% |
| Peruvian Government International Bond, 2.78%, 1/23/31 | | 240,000 | 207,859 |
| | | Par (a) | Value |
| Peru (Continued) |
| Petroleos del Peru S.A., 5.63%, 6/19/47(b) | | $250,000 | $ 158,596 |
| Volcan Cia Minera S.A.A., 4.38%, 2/11/26(b) | | 260,000 | 196,968 |
| | | | 563,423 |
| Qatar – 0.2% |
| Qatar Government International Bond, 4.82%, 3/14/49(b) | | 400,000 | 395,456 |
| South Africa – 0.1% |
| Sasol Financing USA LLC, 5.50%, 3/18/31 | | 250,000 | 206,992 |
| Switzerland – 0.3% |
| Credit Suisse A.G., | | | |
| 4.75%, 8/09/24 | | 260,000 | 251,225 |
| 7.95%, 1/09/25 | | 250,000 | 254,440 |
| VistaJet Malta Finance PLC/Vista Management Holding, Inc., | | | |
| 7.88%, 5/01/27(b) | | 130,000 | 123,500 |
| 6.38%, 2/01/30(b) | | 50,000 | 43,257 |
| | | | 672,422 |
| Turkey – 0.1% |
| Turk Telekomunikasyon AS, 6.88%, 2/28/25(b) | | 250,000 | 237,808 |
| United Arab Emirates – 0.1% |
| DP World Ltd., 5.63%, 9/25/48(b) | | 290,000 | 281,301 |
| United Kingdom – 0.2% |
| Mclaren Finance PLC, 7.50%, 8/01/26(b)(f) | | 200,000 | 163,200 |
| Neptune Energy Bondco PLC, 6.63%, 5/15/25(b) | | 200,000 | 197,153 |
| Vmed O2 UK Financing I PLC, 4.75%, 7/15/31(b) | | 200,000 | 170,428 |
| | | | 530,781 |
| Zambia – 0.4% |
| First Quantum Minerals Ltd., | | | |
| 6.88%, 3/01/26(b) | | 490,000 | 481,092 |
| 6.88%, 10/15/27(b)(f) | | 480,000 | 466,008 |
| | | | 947,100 |
Total Foreign Issuer Bonds
(Cost $17,493,462) | 16,197,182 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Number
of Shares | Value |
| Master Limited Partnerships – 2.0% |
| Oil & Gas Producers – 2.0% |
| Energy Transfer L.P. | | 299,439 | $3,856,774 |
| Enterprise Products Partners L.P. | | 17,169 | 451,717 |
Total Master Limited Partnerships
(Cost $3,828,201) | 4,308,491 |
| | | Par (a) | |
| Mortgage-Backed Securities – 4.2% |
| Commercial Mortgage-Backed Securities – 1.9% |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-VOLT, Class D, (1M USD LIBOR + 1.65%, 1.65% Floor), 6.60%, 9/15/36(b)(c) | | $270,000 | 255,467 |
| Series 2021-ACNT, Class A, (1M USD LIBOR + 0.85%, 0.85% Floor), 5.80%, 11/15/38(b)(c) | | 197,000 | 191,565 |
| Series 2022-AHP, Class A, (1M CME Term SOFR + 0.99%, 0.99% Floor), 5.88%, 1/17/39(b)(c) | | 212,000 | 205,990 |
| BX Trust, | | | |
| Series 2022-CLS, Class A, 5.76%, 10/13/27(b) | | 230,000 | 225,365 |
| Series 2021-SDMF, Class F, (1M USD LIBOR + 1.94%, 1.94% Floor), 6.89%, 9/15/34(b)(c) | | 210,000 | 191,403 |
| Series 2021-ARIA, Class A, (1M USD LIBOR + 0.90%, 0.90% Floor), 5.85%, 10/15/36(b)(c) | | 270,000 | 260,622 |
| Series 2022-PSB, Class A, (1M CME Term SOFR + 2.45%, 2.45% Floor), 7.34%, 8/15/39(b)(c) | | 276,544 | 274,511 |
|
| BXHPP Trust, Series 2021-FILM, Class C, (1M USD LIBOR + 1.10%, 1.10% Floor), 6.05%, 8/15/36(b)(c) | | 270,000 | 241,610 |
| Commercial Mortgage Trust, Series 2015-CR25, Class A4, 3.76%, 8/10/48 | | 260,000 | 250,472 |
| Extended Stay America Trust, | | | |
| Series 2021-ESH, Class A, (1M USD LIBOR + 1.08%, 1.08% Floor), 6.03%, 7/15/38(b)(c) | | 263,572 | 256,805 |
| | | 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), 6.65%, 7/15/38(b)(c) | | $253,810 | $ 244,911 |
| Series 2021-ESH, Class E, (1M USD LIBOR + 2.85%, 2.85% Floor), 7.80%, 7/15/38(b)(c) | | 253,810 | 241,098 |
|
| GS Mortgage Securities Trust, Series 2017-GS6, Class A2, 3.16%, 5/10/50 | | 191,142 | 178,203 |
| J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2022-ACB, Class A, (30D Average SOFR + 1.40%, 1.40% Floor), 6.15%, 3/15/39(b)(c) | | 350,000 | 342,114 |
| JP Morgan Chase Commercial Mortgage Securities Trust, Series 2015-JP1, Class A5, 3.91%, 1/15/49 | | 200,000 | 192,341 |
| MTN Commercial Mortgage Trust, | | | |
| Series 2022-LPFL, Class A, (1M CME Term SOFR + 1.40%, 1.40% Floor), 6.29%, 3/15/39(b)(c) | | 260,000 | 255,110 |
| Series 2022-LPFL, Class F, (1M CME Term SOFR + 5.29%, 5.29% Floor), 10.17%, 3/15/39(b)(c) | | 200,000 | 187,904 |
|
| NCMF Trust, Series 2022-MFP, Class G, (1M CME Term SOFR + 5.13%, 5.13% Floor), 10.02%, 3/15/39(b)(c) | | 195,000 | 186,561 |
| | | | 4,182,052 |
| Whole Loan – 2.3% |
| BRAVO Residential Funding Trust, | | | |
| Series 2022-NQM1, Class A1, 3.63%, 9/25/61(b)(d) | | 202,848 | 192,195 |
| Series 2022-NQM2, Class A1, 4.27%, 11/25/61(b)(d) | | 166,105 | 158,244 |
| Series 2022-NQM2, Class A3, 5.24%, 11/25/61(b) | | 207,631 | 200,774 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
|
| Citigroup Mortgage Loan Trust, Series 2022-A, Class A1, (Step to 9.17% on 9/25/25), 6.17%, 9/25/62(b)(m) | | $237,978 | $237,120 |
| COLT Mortgage Loan Trust, Series 2022-3, Class A1, 3.90%, 2/25/67(b)(d) | | 233,487 | 218,614 |
| Connecticut Avenue Securities Trust, | | | |
| Series 2022-R03, Class 1M2, (30D Average SOFR + 3.50%), 8.32%, 3/25/42(b)(c) | | 250,000 | 254,532 |
| Series 2022-R08, Class 1M2, (30D Average SOFR + 3.60%, 3.60% Floor), 8.42%, 7/25/42(b)(c) | | 200,000 | 204,746 |
|
| CSMC Trust, Series 2020-RPL4, Class A1, 2.00%, 1/25/60(b) | | 215,727 | 189,871 |
| FHLMC Structured Agency Credit Risk Debt Notes, Series 2021-DNA2, Class B1, (30D Average SOFR + 3.40%), 8.22%, 8/25/33(b)(c) | | 270,000 | 264,075 |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2017-C06, Class 1B1, (1M USD LIBOR + 4.15%, 4.15% Floor), 9.17%, 2/25/30(c) | | 330,000 | 349,778 |
| Series 2018-C05, Class 1B1, (1M USD LIBOR + 4.25%, 4.25% Floor), 9.27%, 1/25/31(c) | | 250,000 | 272,757 |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2021-DNA7, Class B1, (30D Average SOFR + 3.65%), 8.47%, 11/25/41(b)(c) | | 210,000 | 203,575 |
| Series 2020-DNA5, Class B1, (30D Average SOFR + 4.80%), 9.62%, 10/25/50(b)(c) | | 180,000 | 190,899 |
| Series 2020-DNA6, Class B1, (30D Average SOFR + 3.00%), 7.82%, 12/25/50(b)(c) | | 260,000 | 253,332 |
| Series 2021-DNA1, Class B2, (30D Average SOFR + 4.75%), 9.57%, 1/25/51(b)(c) | | 240,000 | 207,666 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2022-DNA2, Class M1B, (30D Average SOFR + 2.40%), 7.22%, 2/25/42(b)(c) | | $210,000 | $ 206,853 |
|
| GS Mortgage-Backed Securities Trust, Series 2022-NQM1, Class A4, 4.00%, 5/25/62(b)(d) | | 214,724 | 196,615 |
| New Residential Mortgage Loan Trust, Series 2022-NQM2, Class A1, 3.08%, 3/27/62(b)(d) | | 232,628 | 211,714 |
| OBX Trust, Series 2022-NQM6, Class A1, (Step to 4.73% on 7/25/26), 4.70%, 7/25/62(b)(m) | | 244,522 | 238,593 |
| Residential Mortgage Loan Trust, Series 2020-2, Class A2, 2.51%, 5/25/60(b) | | 360,000 | 338,546 |
| Seasoned Credit Risk Transfer Trust, Series 2022-1, Class M, 4.50%, 11/25/61(b) | | 100,000 | 81,261 |
| SG Residential Mortgage Trust, Series 2022-1, Class A1, 3.17%, 3/27/62(b)(d) | | 241,323 | 220,200 |
| | | | 4,891,960 |
Total Mortgage-Backed Securities
(Cost $9,275,891) | 9,074,012 |
|
| Term Loans – 9.0%(c) |
| Advertising & Marketing – 0.1% |
| CB Poly US Holdings, Inc., Initial Term Loan, (1M USD CME Term SOFR + 5.50%, 0.75% Floor), 10.48%, 5/18/29 | | 199,000 | 195,020 |
| Aerospace & Defense – 0.5% |
| Vertex Aerospace Services Corp., Initial Term Loan, (1M USD LIBOR + 3.50%, 0.75% Floor), 8.52%, 12/06/28 | | 663,300 | 661,184 |
| WP CPP Holdings LLC, Initial Term Loan, (3M USD LIBOR + 3.75%, 1.00% Floor), 9.03%, 4/30/25 | | 335,803 | 305,581 |
| | | | 966,765 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Asset Management – 0.3% |
| Jump Financial LLC, Term Loan, (3M USD CME Term SOFR + 4.50%, 0.50% Floor), 9.66%, 8/07/28 | | $681,353 | $ 623,438 |
| Automotive – 0.4% |
| Clarios Global L.P., Incremental Term Loan, 4/20/30(n) | | 220,000 | 219,633 |
| Clarios Global L.P., Amendment No. 1 Dollar Term Loan, (1M USD LIBOR + 3.25%), 8.27%, 4/30/26 | | 460,000 | 458,753 |
| First Brands Group LLC, 2022-II Incremental Term Loan, (6M USD CME Term SOFR + 5.00%, 1.00% Floor), 10.25%, 3/30/27 | | 140,000 | 134,050 |
| | | | 812,436 |
| Beverages – 0.2% |
| Triton Water Holdings, Inc., Initial Term Loan, (3M USD LIBOR + 3.50%, 0.50% Floor), 8.66%, 3/31/28 | | 454,222 | 429,807 |
| Commercial Support Services – 0.6% |
| Allied Universal Holdco LLC, Initial U.S. Dollar Term Loan, (1M USD CME Term SOFR + 3.75%, 0.50% Floor), 8.83%, 5/12/28 | | 197,494 | 190,263 |
| Garda World Security Corp., Term B-2 Loan, (1M USD CME Term SOFR + 4.25%), 9.30%, 10/30/26 | | 360,000 | 358,650 |
| GEO Group, Inc., The Tranche 1 Loan, 3/23/27(n) | | 39,336 | 39,905 |
| LRS Holdings LLC, Initial Term Loan, (1M USD CME Term SOFR + 4.25%, 0.50% Floor), 9.35%, 8/31/28 | | 454,250 | 442,894 |
| Prime Security Services Borrower LLC, 2021 Refinancing Term B-1 Loan, (1M USD LIBOR + 2.75%, 0.75% Floor), 7.61%, 9/23/26 | | 335,718 | 334,949 |
| | | | 1,366,661 |
| | | Par (a) | Value |
| Construction Materials – 0.1% |
| Smyrna Ready Mix Concrete LLC, Initial Term Loan, (1M USD CME Term SOFR + 4.25%, 0.50% Floor), 9.33%, 4/02/29 | | $189,523 | $187,627 |
| Consumer Non-Cyclical – 0.1% |
| Topgolf Callaway Brands Corp., Initial Term Loan, (1M USD CME Term SOFR + 3.50%), 8.58%, 3/15/30 | | 150,000 | 149,813 |
| Consumer Services – 0.1% |
| Adtalem Global Education, Inc., Term B Loan, (1M USD LIBOR + 4.00%, 0.75% Floor), 9.02%, 8/12/28 | | 159,125 | 159,192 |
| Entertainment Content – 0.2% |
| Allen Media LLC, Initial Term Loan, (3M USD CME Term SOFR + 5.50%), 10.55%, 2/10/27 | | 454,147 | 398,800 |
| Health Care Facilities & Services – 0.9% |
| Agiliti Health, Inc., Term Loan, 4/06/30(n) | | 170,000 | 168,725 |
| EyeCare Partners LLC, Initial Term Loan, (1M USD LIBOR + 6.75%, 0.50% Floor), 11.77%, 11/15/29 | | 380,000 | 286,425 |
| Gainwell Acquisition Corp., Term B Loan, (3M USD CME Term SOFR + 4.00%, 0.75% Floor), 9.00%, 10/01/27 | | 254,601 | 244,896 |
| LifePoint Health, Inc.,Term B Loan, 11/16/25(n) | | 140,000 | 131,521 |
| One Call Corp., Term B Loan, (3M USD CME Term SOFR + 5.50%, 0.75% Floor), 10.83%, 4/22/27 | | 454,221 | 328,552 |
| PDS Holdco, Inc., Delayed Draw Term Loan, (1M USD LIBOR + 4.50%, 0.75% Floor), 9.52%, 8/18/28 | | 32,039 | 29,092 |
| PDS Holdco, Inc., Initial Term Loan, (1M USD LIBOR + 4.50%, 0.75% Floor), 9.52%, 8/18/28 | | 313,623 | 284,769 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Health Care Facilities & Services (Continued) |
| Phoenix Guarantor, Inc., Tranche B-1 Term Loan, (1M USD LIBOR + 3.25%), 8.27%, 3/05/26 | | $108,420 | $ 106,600 |
| U.S. Renal Care, Inc., Initial Term Loan, (1M USD LIBOR + 5.00%), 9.84%, 6/26/26 | | 454,118 | 285,640 |
| | | | 1,866,220 |
| Home & Office Products – 0.1% |
| Hunter Douglas Holding B.V., Tranche B-1 Term Loan, (3M USD CME Term SOFR + 3.50%, 0.50% Floor), 8.37%, 2/26/29 | | 347,375 | 315,243 |
| Industrial Support Services – 0.2% |
| PECF USS Intermediate Holding III Corp., Initial Term Loan, | | | |
| (1M USD LIBOR + 4.25%, 0.50% Floor), 9.27%, 12/15/28 | | 1,150 | 942 |
| (3M USD LIBOR + 4.25%, 0.50% Floor), 9.52%, 12/15/28 | | 453,100 | 371,071 |
| | | | 372,013 |
| Institutional Financial Services – 0.8% |
| CTC Holdings L.P., Term Loan, (3M USD CME Term SOFR + 5.00%, 0.50% Floor), 9.95%, 2/20/29 | | 425,551 | 414,912 |
| Hudson River Trading LLC, Term Loan, (1M USD CME Term SOFR + 3.00%), 8.10%, 3/20/28 | | 454,206 | 425,746 |
| Jane Street Group LLC, Dollar Term Loan, (1M USD LIBOR + 2.75%), 7.77%, 1/26/28 | | 424,571 | 422,647 |
| Mercury Borrower, Inc., Initial Term Loan, (1M USD LIBOR + 3.50%, 0.50% Floor), 8.56%, 8/02/28 | | 455,400 | 444,015 |
| | | | 1,707,320 |
| Insurance – 0.6% |
| Acrisure LLC, 2022 Additional Term Loan, (3M USD CME Term SOFR + 5.75%, 1.00% Floor), 10.45%, 2/15/27 | | 199,500 | 198,379 |
| | | Par (a) | Value |
| Insurance (Continued) |
| Acrisure LLC, 2021-2 Additional Term Loan, (1M USD LIBOR + 4.25%, 0.50% Floor), 9.27%, 2/15/27 | | $335,750 | $ 324,277 |
| Asurion LLC, New B-4 Term Loan, (1M USD LIBOR + 5.25%), 10.27%, 1/20/29 | | 460,000 | 379,978 |
| Asurion LLC, New B-9 Term Loan, (1M USD LIBOR + 3.25%), 8.27%, 7/31/27 | | 335,718 | 309,421 |
| HIG Finance 2 Ltd., 2023 Term Loan, (1M USD CME Term SOFR + 4.00%, 0.50% Floor), 8.98%, 4/18/30 | | 40,000 | 39,800 |
| Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.), 2023 Term Loan, (1M USD CME Term SOFR + 3.75%), 8.73%, 2/24/28 | | 140,000 | 138,270 |
| | | | 1,390,125 |
| Leisure Facilities & Services – 0.6% |
| Alterra Mountain Co., Series B-2 Term Loan, (1M USD LIBOR + 3.50%, 0.50% Floor), 8.52%, 8/17/28 | | 454,236 | 452,342 |
| Caesars Entertainment, Inc., Term Loan B, (1M USD CME Term SOFR + 3.25%, 0.50% Floor), 8.33%, 2/06/30 | | 80,000 | 79,600 |
| NCL Corporation Ltd., Term A-3 Loan, (3M USD CME Term SOFR + 2.25%), 7.25%, 1/02/25 | | 354,461 | 346,486 |
| UFC Holdings LLC, Term B-3 Loan, (3M USD LIBOR + 2.75%, 0.75% Floor), 8.05%, 4/29/26 | | 445,629 | 444,265 |
| | | | 1,322,693 |
| Leisure Products – 0.2% |
| 19th Holdings Golf LLC, Initial Term Loan, (1M USD CME Term SOFR + 3.00%), 7.91%, 2/07/29 | | 456,550 | 425,733 |
| Hayward Industries, Inc., 2022 Incremental Term Loan, (1M USD CME Term SOFR + 3.25%), 8.33%, 5/30/28 | | 89,550 | 86,863 |
| | | | 512,596 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Machinery – 0.1% |
| SPX Flow, Inc., Term Loan, (1M USD CME Term SOFR + 4.50%, 0.50% Floor), 9.58%, 4/05/29 | | $243,996 | $235,122 |
| Medical Equipment & Devices – 0.1% |
| Sotera Health Holdings LLC, Term Loan, (3M USD CME Term SOFR + 3.75%, 0.50% Floor), 8.82%, 12/11/26 | | 180,000 | 178,650 |
| Retail - Discretionary – 0.4% |
| Empire Today LLC, Closing Date Term Loan, (1M USD LIBOR + 5.00%, 0.75% Floor), 9.95%, 4/03/28 | | 45,514 | 35,592 |
| Great Outdoors Group LLC, Term B-2 Loan, (1M USD LIBOR + 3.75%, 0.75% Floor), 8.77%, 3/06/28 | | 345,614 | 342,376 |
| Leslie's Poolmart, Inc., Initial Term Loan, (1M USD LIBOR + 2.50%, 0.50% Floor), 7.52%, 3/09/28 | | 464,081 | 459,788 |
| | | | 837,756 |
| Software – 1.0% |
| athenahealth Group, Inc., Initial DDTL, 2/15/29(o) | | 5,513 | 5,159 |
| athenahealth Group, Inc., Initial Term Loan, (1M USD CME Term SOFR + 3.50%, 0.50% Floor), 2/15/29 | | 44,881 | 41,996 |
| Cloudera, Inc., Initial Term Loan, | | | |
| (1M USD CME Term SOFR + 3.75%, 0.50% Floor), 8.83%, 10/08/28 | | 455,400 | 439,083 |
| (1M USD CME Term SOFR + 6.00%), 11.08%, 10/08/29 | | 50,000 | 44,104 |
|
| DCert Buyer, Inc., Initial Term Loan, (6M USD CME Term SOFR + 4.00%), 8.70%, 10/16/26 | | 315,551 | 312,200 |
| Magenta Buyer LLC, Initial Term Loan, | | | |
| (3M USD LIBOR + 4.75%, 0.75% Floor), 10.03%, 7/27/28 | | 454,236 | 381,558 |
| (3M USD LIBOR + 8.25%, 0.75% Floor), 13.53%, 7/27/29 | | 460,000 | 346,150 |
| | | Par (a) | Value |
| Software (Continued) |
|
| MRI Software LLC, Closing Date Term Loan, (3M USD LIBOR + 5.50%, 1.00% Floor), 10.66%, 2/10/26 | | $ 69,658 | $ 67,568 |
| MRI Software LLC, Second Amendment Term Loan, (3M USD LIBOR + 5.50%, 1.00% Floor), 10.60%, 2/10/26 | | 40,060 | 38,859 |
| Planview Parent, Inc., Closing Date Term Loan, (2M USD LIBOR + 4.00%, 0.75% Floor), 9.16%, 12/17/27 | | 170,000 | 163,540 |
| Rackspace Technology Global, Inc., 2021 Term B Loan, (3M USD LIBOR + 2.75%), 7.60%, 2/15/28 | | 454,207 | 185,543 |
| Virgin Pulse, Inc., Initial Term Loan, (1M USD LIBOR + 4.00%, 0.75% Floor), 9.02%, 4/06/28 | | 85,172 | 70,352 |
| | | | 2,096,112 |
| Specialty Finance – 0.1% |
| Apollo Commercial Real Estate Finance, Inc., Initial Term Loan, (1M USD LIBOR + 2.75%), 7.77%, 5/15/26 | | 75,087 | 66,452 |
| Greystone Select Financial LLC, Initial Term Loan, (3M USD LIBOR + 5.00%, 0.75% Floor), 10.27%, 6/16/28 | | 253,486 | 238,277 |
| | | | 304,729 |
| Technology Services – 0.8% |
| Amentum Government Services Holdings LLC, Tranche 1 Term Loan, (1M USD LIBOR + 4.00%), 9.02%, 1/29/27 | | 456,550 | 438,267 |
| DCert Buyer, Inc., First Amendment Refinancing Loan, (3M USD LIBOR + 7.00%), 11.70%, 2/19/29 | | 340,000 | 312,905 |
| UST Global, Inc., Initial Term Loan, (1M USD CME Term SOFR + 3.75%), 8.85%, 11/20/28 | | 454,250 | 449,331 |
| Verscend Holding Corp., Term B-1 Loan, (1M USD LIBOR + 4.00%), 9.02%, 8/27/25 | | 464,056 | 463,188 |
| | | | 1,663,691 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| | | Par (a) | Value |
| Telecommunications – 0.1% |
| R.R. Donnelley & Sons Co., 2023 Replacement Term Loan, | | | |
| (1M USD CME Term SOFR + 7.25%, 0.75% Floor) , 12.23%, 3/17/28 | | $241,027 | $ 238,014 |
| (3M USD PRIME + 6.25%, 0.75% Floor), 14.25%, 3/17/28 | | 18,973 | 18,736 |
| | | | 256,750 |
| Transportation & Logistics – 0.4% |
| Brown Group Holding LLC, Initial Term Loan, (1M USD CME Term SOFR + 2.50%, 0.50% Floor), 7.58%, 6/07/28 | | 335,842 | 328,388 |
| United AirLines, Inc., Class B Term Loan, (1M USD LIBOR + 3.75%, 0.75% Floor), 8.77%, 4/21/28 | | 314,206 | 312,733 |
| WWEX UNI TopCo Holdings LLC, Initial Term Loan, (3M USD CME Term SOFR + 4.00%, 0.75% Floor), 9.16%, 7/26/28 | | 244,780 | 230,617 |
| | | | 871,738 |
Total Term Loans
(Cost $20,624,477) | 19,220,317 |
| | | Number
of Shares | |
| Investment Companies – 6.7% |
| Global X U.S. Preferred ETF(f) | | 112,776 | 2,247,626 |
| Schwab Short-Term U.S. Treasury ETF | | 114,820 | 5,598,623 |
| Vanguard Long-Term Treasury ETF | | 98,185 | 6,448,791 |
Total Investment Companies
(Cost $16,654,317) | 14,295,040 |
| | | Par (a)/Number
of Shares | |
| Short-Term Investments – 9.8% |
| Convertible Bonds – 0.0%(e) |
| Apollo Commercial Real Estate Finance, Inc., 5.38%, 10/15/23 | | $90,000 | 88,425 |
| | | Par (a)/Number
of Shares | Value |
| Corporate Bonds – 0.2% |
| Comerica, Inc., 3.70%, 7/31/23 | | $ 130,000 | $ 128,702 |
| Plains All American Pipeline L.P., (3M USD LIBOR + 4.11%), 8.97%, 6/01/23(c)(k) | | 240,000 | 211,200 |
| | | | 339,902 |
| Foreign Issuer Bonds – 0.4% |
| Avolon Holdings Funding Ltd., 5.13%, 10/01/23(b) | | 60,000 | 59,654 |
| Credit Suisse A.G., 1.00%, 5/05/23 | | 250,000 | 249,375 |
| Prosperous Ray Ltd., 4.63%, 11/12/23 | | 200,000 | 199,698 |
| UBS Group A.G., (5Y USD Swap Rate + 4.34%), 7.00%, 1/31/24(b)(k)(l) | | 500,000 | 468,750 |
| | | | 977,477 |
| Money Market Funds – 9.2% |
| Northern Institutional Funds - Liquid Assets Portfolio, 4.85%(p)(q) | | 11,396,039 | 11,396,039 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(p) | | 8,308,928 | 8,308,928 |
| | | | 19,704,967 |
Total Short-Term Investments
(Cost $21,138,953) | 21,110,771 |
Number of
Contracts | Notional
Amount | |
| Purchased Options – 0.0%(e) |
| Call Options - Exchange Traded – 0.0%(e) |
| 3-Month SOFR Future, Strike Price $99.25, Expires 12/15/23 | 2 | 476,650 | 138 |
| Call Options - Over the Counter – 0.0%(e) |
| U.S. Dollar vs. Euro, Strike Price USD 1.09, Expires 06/01/23, Counterparty: BNP Paribas | 1 | 1,215,246 | 26,129 |
| U.S. Dollar vs. Euro, Strike Price USD 1.09, Expires 06/01/23, Counterparty: BNP Paribas | 1 | 446,999 | 6,460 |
| U.S. Dollar vs. Euro, Strike Price USD 1.16, Expires 09/04/23, Counterparty: Goldman Sachs | 1 | 1,887,931 | 7,622 |
| | | | 40,211 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
Number of
Contracts | Notional
Amount | Value |
| Put Options - Over the Counter – 0.0%(e) |
| Canadian Dollar vs. U.S. Dollar, Strike Price CAD 1.35, Expires 06/12/23, Counterparty: Goldman Sachs | 1 | $670,000 | $ 4,825 |
| South African Rand vs. U.S. Dollar, Strike Price ZAR 17.90, Expires 06/12/23, Counterparty: Goldman Sachs | 1 | 390,000 | 3,426 |
| | | | 8,251 |
Total Purchased Options
(Premiums Paid $35,589) | 48,600 |
Total Investments – 103.9%
(Cost $225,891,012) | 223,201,088 |
Total Written Options — 0.0%(e)
(Premiums Received $21,480) | (8,956) |
| Liabilities less Other Assets – (3.9)%(r) | (8,472,067) |
| NET ASSETS – 100.0% | $214,729,021 |
| 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. | | |
| (c) | Variable rate security. Rate as of April 30, 2023 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, 2023 is disclosed. | | |
| (e) | Amount rounds to less than 0.05%. | | |
| (f) | Security either partially or fully on loan (See Note 7). | | |
| (g) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (h) | Investment is valued using significant unobservable inputs (Level 3) (See Note 4 regarding investments in Russian securities). | | |
| (i) | Zero coupon bond. | | |
| (j) | Distributions from this security are made via payments in-kind (PIK) unless otherwise noted in the description. | | |
| (k) | Perpetual bond. Maturity date represents next call date. | | |
| (l) | 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, 2023 is disclosed. | | |
| (m) | Step coupon bond. Rate as of April 30, 2023 is disclosed. | | |
| (n) | Position is unsettled. Contract rate was not determined at April 30, 2023 and does not take effect until settlement date. | | |
| (o) | Unfunded loan commitment. As of April 30, 2023, total value of unfunded loan commitments was $5,159. | | |
| (p) | 7-day current yield as of April 30, 2023 is disclosed. | | |
| (q) | Security purchased with the cash proceeds from securities loaned (See Note 7). | | |
| (r) | Includes appreciation/(depreciation) on forward foreign currency exchange, futures and swap contracts. | | |
| Abbreviations: | |
| 1M | 1 Month |
| 1Y | 1 Year |
| 2M | 2 Month |
| 3M | 3 Month |
| 5Y | 5 Year |
| 6M | 6 Month |
| 10Y | 10 Year |
| 30D | 30 Day |
| ABS | Asset-Backed Security |
| ADR | American Depositary Receipt |
| BANXICO | Banco de Mexico |
| CAD | Canadian Dollar |
| CDO | Collateralized Debt Obligation |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| CLO | Collateralized Loan Obligation |
| CME | Chicago Mercantile Exchange |
| CMT | Constant Maturity |
| DDTL | Delayed Draw Term Loan |
| ETF | Exchange-Traded Fund |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| Freddie Mac | Federal Home Loan Mortgage Corporation |
| IDR | Indonesian Rupiah |
| JSC | Joint Stock Company |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| MTN | Medium Term Note |
| MXN | Mexican Peso |
| PJSC | Public Joint Stock Company |
| PLC | Public Limited Company |
| REMIC | Real Estate Mortgage Investment Conduit |
| SOFR | United States Secured Overnight Financing Rate |
| SONIA | Sterling Overnight Index Average |
| STACR | Structured Agency Credit Risk |
| TIIE | Tasa de Interés Interbancaria de Equilibrio |
| USD | United States Dollar |
| ZAR | South African Rand |
| Concentration by Currency (%)(a) | |
| U.S. Dollar | 68.0 |
| Euro | 8.2 |
| All other currencies less than 5% | 23.8 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Country Diversification (%)(a) | |
| United States | 56.2 |
| All other countries less than 5%(b) | 43.8 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. |
| (b) Includes Other. |
Futures Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| 10-Year Australian Treasury Bond | 8 | 6/15/2023 | AUD | 648,234 | $ 7,287 |
| 10-Year U.S. Treasury Note | 38 | 6/21/2023 | USD | 4,377,719 | 118,475 |
| U.S. Treasury Long Bond | 37 | 6/21/2023 | USD | 4,871,281 | 213,828 |
| Ultra U.S. Treasury Bond | 31 | 6/21/2023 | USD | 4,383,594 | 159,845 |
| Long Gilt | 8 | 6/28/2023 | GBP | 1,020,079 | 748 |
| 2-Year U.S. Treasury Note | 58 | 6/30/2023 | USD | 11,957,516 | 74,930 |
| 3-Month SONIA Index | 7 | 9/19/2023 | GBP | 2,095,065 | (11,573) |
| 3-Month SONIA Index | 37 | 12/20/2023 | GBP | 11,054,153 | (24,679) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
Futures Contracts outstanding at April 30, 2023:
Exchange Traded (continued) |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| 3-Month SONIA Index | 13 | 3/20/2024 | GBP | 3,887,772 | $ (34,530) |
| CME 3-Month SOFR | 17 | 3/18/2025 | USD | 4,122,075 | 15,600 |
| Total Long Contracts | | | | | $519,931 |
| Short Contracts | | | | | |
| 5-Year U.S. Treasury Note | (8) | 6/30/2023 | USD | 877,938 | $ (4,086) |
| CME 3-Month SOFR | (6) | 9/19/2023 | USD | 1,423,725 | 8,287 |
| CME 3-Month SOFR | (71) | 3/19/2024 | USD | 16,960,125 | 93,742 |
| Total Short Contracts | | | | | $ 97,943 |
| | | | | | $617,874 |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 7/18/23 | Mexican Pesos | 19,260,029 | U.S. Dollars | 1,042,999 | Morgan Stanley | $ 10,877 |
| 7/18/23 | U.S. Dollars | 245,143 | Japanese Yen | 32,254,192 | Goldman Sachs | 5,477 |
| 7/18/23 | Brazilian Reals | 960,000 | U.S. Dollars | 185,428 | Morgan Stanley | 4,087 |
| 6/13/23 | South African Rand | 3,454,603 | U.S. Dollars | 184,600 | Goldman Sachs | 3,463 |
| 7/18/23 | U.S. Dollars | 202,510 | Canadian Dollars | 270,000 | BNP Paribas | 2,907 |
| 7/18/23 | U.S. Dollars | 445,841 | Chinese Yuan | 3,050,000 | Morgan Stanley | 2,640 |
| 7/18/23 | Mexican Pesos | 4,540,000 | U.S. Dollars | 245,856 | Goldman Sachs | 2,565 |
| 7/18/23 | British Pounds | 250,250 | U.S. Dollars | 312,795 | Morgan Stanley | 2,197 |
| 7/18/23 | Euro | 165,000 | U.S. Dollars | 180,996 | BNP Paribas | 1,637 |
| 7/18/23 | U.S. Dollars | 256,149 | Euro | 230,000 | Goldman Sachs | 1,570 |
| 7/18/23 | U.S. Dollars | 119,737 | Canadian Dollars | 160,000 | JPMorgan Chase | 1,454 |
| 7/18/23 | Canadian Dollars | 250,000 | U.S. Dollars | 183,611 | BNP Paribas | 1,206 |
| 6/02/23 | Euro | 277,000 | U.S. Dollars | 305,226 | BNP Paribas | 627 |
| 7/18/23 | U.S. Dollars | 189,907 | Brazilian Reals | 960,000 | Morgan Stanley | 392 |
| 7/18/23 | Euro | 240,000 | U.S. Dollars | 265,579 | Morgan Stanley | 68 |
| Total Unrealized Appreciation | $ 41,167 |
| | | | | | | |
| 7/18/23 | Canadian Dollars | 3,100 | U.S. Dollars | 2,305 | BNP Paribas | $ (13) |
| 7/18/23 | U.S. Dollars | 723,641 | Mexican Pesos | 13,250,000 | Morgan Stanley | (1,377) |
| 7/18/23 | U.S. Dollars | 771,676 | Euro | 700,000 | BNP Paribas | (3,128) |
| 7/18/23 | Japanese Yen | 154,700,000 | U.S. Dollars | 1,155,300 | Goldman Sachs | (5,798) |
| 7/18/23 | U.S. Dollars | 402,658 | Indonesian Rupiahs | 6,031,820,000 | JPMorgan Chase | (8,042) |
| 7/18/23 | U.S. Dollars | 1,261,554 | British Pounds | 1,011,631 | Morgan Stanley | (11,793) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 6/02/23 | U.S. Dollars | 724,690 | Euro | 670,000 | BNP Paribas | $ (15,100) |
| 7/18/23 | Australian Dollars | 2,966,409 | U.S. Dollars | 1,994,510 | Morgan Stanley | (24,928) |
| 7/18/23 | Norwegian Kroner | 13,261,172 | U.S. Dollars | 1,291,159 | Morgan Stanley | (41,977) |
| Total Unrealized Depreciation | $(112,156) |
| Net Unrealized Depreciation | $ (70,989) |
Written Call Option Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 5-Year U.S. Treasury Note Future | 6 | USD | 658,453 | 112 | 5/26/2023 | $ (985) |
| Total Written Call Options Contracts (Premiums Received $6,927) | $(985) |
Written Call Option Contracts outstanding at April 30, 2023:
Over the Counter |
| | | | | | | | | |
| Description | Counterparty | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| South African Rand vs. U.S. Dollar | Goldman Sachs | 1 | USD | 390,000 | ZAR | 20 | 6/12/2023 | $ (804) |
| U.S. Dollar vs. Euro | BNP Paribas | 1 | EUR | 1,175,423 | USD | 1 | 6/1/2023 | (3,898) |
| U.S. Dollar vs. Euro | BNP Paribas | 1 | EUR | 882,904 | USD | 1 | 6/1/2023 | (3,269) |
| Total Written OTC Call Options Contracts (Premiums Received $14,553) | $(7,971) |
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 8.97% (Monthly) | 3/1/2030 | MXN | 27,411,000 | $ 43,695 | $ — | $ 43,695 |
| 2.51% (Annually) | 2-Day USD SOFR (Annually) | 2/15/2048 | USD | 582,000 | 59,212 | 9,341 | 49,871 |
| 2.62% (Annually) | 2-Day USD SOFR (Annually) | 2/15/2048 | USD | 168,000 | 13,884 | (31) | 13,915 |
| 3.05% (Annually) | 2-Day USD SOFR (Annually) | 2/15/2048 | USD | 418,000 | 3,346 | 12,585 | (9,239) |
| 3.15% (Annually) | 2-Day USD SOFR (Annually) | 5/15/2048 | USD | 979,000 | (11,914) | 8 | (11,922) |
| Total | | | | | $108,223 | $21,903 | $ 86,320 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Income Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ — | $ 11,149,962 | $ — | $ 11,149,962 |
| Common Stocks | 54,479,139 | 42,000,032 | —* | 96,479,171 |
| Convertible Bonds | — | 160,925 | — | 160,925 |
| Corporate Bonds | — | 31,156,617 | — | 31,156,617 |
| Foreign Issuer Bonds | — | 16,197,182 | — | 16,197,182 |
| Master Limited Partnerships | 4,308,491 | — | — | 4,308,491 |
| Mortgage-Backed Securities | — | 9,074,012 | — | 9,074,012 |
| Term Loans | — | 19,220,317 | — | 19,220,317 |
| Investment Companies | 14,295,040 | — | — | 14,295,040 |
| Short-Term Investments | 19,704,967 | 1,405,804 | — | 21,110,771 |
| Purchased Options | 138 | 48,462 | — | 48,600 |
| Total Investments | $92,787,775 | $130,413,313 | $ — | $223,201,088 |
| *Includes securities determined to have no value as of April 30, 2023. |
| Morningstar Global Income Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $692,742 | $ — | $— | $ 692,742 |
| Forward Foreign Currency Exchange Contracts | — | 41,167 | — | 41,167 |
| Swap Agreements | — | 120,137 | — | 120,137 |
| Total Assets - Derivative Financial Instruments | $692,742 | $ 161,304 | $— | $ 854,046 |
| Liabilities: | | | | |
| Futures Contracts | $ (74,868) | $ — | $— | $ (74,868) |
| Forward Foreign Currency Exchange Contracts | — | (112,156) | — | (112,156) |
| Written Options | (985) | (7,971) | — | (8,956) |
| Swap Agreements | — | (11,914) | — | (11,914) |
| Total Liabilities - Derivative Financial Instruments | $ (75,853) | $(132,041) | $— | $(207,894) |
| Net Derivative Financial Instruments | $616,889 | $ 29,263 | $— | $ 646,152 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Long Positions – 109.3% |
| Asset-Backed Securities – 4.3% |
| Automobile – 0.3% |
| Avis Budget Rental Car Funding AESOP LLC, Series 2021-1A, Class A, 1.38%, 8/20/27(b) | | $770,000 | $ 688,498 |
| Enterprise Fleet Financing LLC, Series 2023-1, Class A2, 5.51%, 1/22/29(b) | | 360,000 | 363,315 |
| Ford Credit Auto Owner Trust, Series 2023-1, Class A, 4.85%, 8/15/35(b) | | 830,000 | 842,679 |
| Hertz Vehicle Financing LLC, | | | |
| Series 2021-1A, Class A, 1.21%, 12/26/25(b) | | 630,000 | 590,627 |
| Series 2021-1A, Class C, 2.05%, 12/26/25(b) | | 420,000 | 389,317 |
| | | | 2,874,436 |
| Home Equity – 0.0%(c) |
| Bayview Financial Mortgage Pass-Through Trust, Series 2006-A, Class M3, (1M USD LIBOR + 0.98%), 6.00%, 2/28/41(d) | | 23,955 | 23,899 |
| GSAA Home Equity Trust, Series 2006-4, Class 1A1, 3.61%, 3/25/36(e) | | 45,494 | 32,347 |
| Option One Mortgage Loan Trust, Series 2004-3, Class M1, (1M USD LIBOR + 0.78%, 0.78% Floor), 5.80%, 11/25/34(d) | | 86,598 | 83,144 |
| Renaissance Home Equity Loan Trust, Series 2005-2, Class AV3, (1M USD LIBOR + 0.74%, 0.74% Floor, 14.00% Cap), 5.76%, 8/25/35(d) | | 298,324 | 259,556 |
| | | | 398,946 |
| Other – 3.8% |
| 522 Funding CLO Ltd., Series 2020-6A, Class A1R, (3M USD LIBOR + 1.15%, 1.15% Floor), 6.42%, 10/23/34(b)(d) | | 610,000 | 595,970 |
| ABPCI Direct Lending Fund CLO X L.P., Series 2020-10A, Class A1A, (3M USD LIBOR + 1.95%, 1.95% Floor), 6.76%, 1/20/32(b)(d) | | 400,000 | 394,612 |
| | | Par (a) | Value |
| Other (Continued) |
| Allegro CLO VII Ltd., Series 2018-1A, Class A, (3M USD LIBOR + 1.10%, 1.10% Floor), 5.89%, 6/13/31(b)(d) | | $250,000 | $246,608 |
| Allegro CLO XI Ltd., Series 2019-2A, Class A1A, (3M USD LIBOR + 1.39%, 1.39% Floor), 6.66%, 1/19/33(b)(d) | | 250,000 | 246,672 |
| AMMC CLO Ltd., Series 2017-21A, Class A, (3M USD LIBOR + 1.25%), 6.55%, 11/02/30(b)(d) | | 248,842 | 247,013 |
| Anchorage Capital CLO Ltd., Series 2013-1A, Class A1R, (3M USD LIBOR + 1.25%), 6.49%, 10/13/30(b)(d) | | 484,799 | 480,664 |
| Arbor Realty Commercial Real Estate Notes Ltd., Series 2022-FL1, Class A, (30D Average SOFR + 1.45%, 1.45% Floor), 6.20%, 1/15/37(b)(d) | | 378,000 | 372,870 |
| Ares LXIII CLO Ltd., Series 2022-63A, Class A1A, (3M CME Term SOFR + 1.38%, 1.38% Floor), 6.43%, 4/20/35(b)(d) | | 540,000 | 531,691 |
| Ares XLII CLO Ltd., Series 2017-42A, Class BR, (3M USD LIBOR + 1.50%, 1.50% Floor), 6.77%, 1/22/28(b)(d) | | 500,000 | 494,524 |
| ARES XLIV CLO Ltd., Series 2017-44A, Class A1R, (3M USD LIBOR + 1.08%, 1.08% Floor), 6.34%, 4/15/34(b)(d) | | 460,000 | 451,630 |
| Atrium IX, Series 9A, Class AR2, (3M USD LIBOR + 0.99%, 0.99% Floor), 5.94%, 5/28/30(b)(d) | | 523,881 | 518,343 |
| Ballyrock CLO Ltd., Series 2019-2A, Class A1BR, (3M USD LIBOR + 1.20%, 1.20% Floor), 6.12%, 11/20/30(b)(d) | | 250,000 | 244,628 |
| Barings CLO Ltd., Series 2016-2A, Class AR2, (3M USD LIBOR + 1.07%, 1.07% Floor), 6.32%, 1/20/32(b)(d) | | 250,000 | 246,004 |
| Basswood Park CLO Ltd, Series 2021-1A, Class A, (3M USD LIBOR + 1.00%, 1.00% Floor), 6.25%, 4/20/34(b)(d) | | 800,000 | 781,844 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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), 5.47%, 9/25/37(b)(d) | | $252,464 | $230,078 |
| Benefit Street Partners CLO V-B Ltd., Series 2018-5BA, Class A1A, (3M USD LIBOR + 1.09%), 6.34%, 4/20/31(b)(d) | | 250,000 | 247,750 |
| BlueMountain CLO Ltd., | | | |
| Series 2013-2A, Class A1R, (3M USD LIBOR + 1.18%), 6.45%, 10/22/30(b)(d) | | 218,552 | 216,419 |
| Series 2015-3A, Class A1R, (3M USD LIBOR + 1.00%), 6.25%, 4/20/31(b)(d) | | 250,000 | 246,686 |
|
| BlueMountain Fuji U.S. CLO I Ltd., Series 2017-1A, Class A1R, (3M USD LIBOR + 0.98%, 0.98% Floor), 6.23%, 7/20/29(b)(d) | | 238,274 | 235,229 |
| BlueMountain Fuji U.S. CLO II Ltd., Series 2017-2A, Class A1AR, (3M USD LIBOR + 1.00%), 6.25%, 10/20/30(b)(d) | | 243,189 | 240,690 |
| Carbone CLO Ltd., Series 2017-1A, Class A1, (3M USD LIBOR + 1.14%), 6.39%, 1/20/31(b)(d) | | 250,000 | 247,819 |
| Carlyle Global Market Strategies CLO Ltd., | | | |
| Series 2014-1A, Class A1R2, (3M USD LIBOR + 0.97%, 0.97% Floor), 6.23%, 4/17/31(b)(d) | | 249,242 | 246,131 |
| Series 2014-2RA, Class A1, (3M USD LIBOR + 1.05%), 5.91%, 5/15/31(b)(d) | | 729,370 | 722,434 |
| Series 2014-3RA, Class A1A, (3M USD LIBOR + 1.05%), 6.34%, 7/27/31(b)(d) | | 495,916 | 490,758 |
|
| Cayuga Park CLO Ltd., Series 2020-1A, Class AR, (3M USD LIBOR + 1.12%, 1.12% Floor), 6.38%, 7/17/34(b)(d) | | 440,000 | 432,015 |
| | | Par (a) | Value |
| Other (Continued) |
|
| Cerberus Loan Funding XXVIII L.P., Series 2020-1A, Class A, (3M USD LIBOR + 1.85%, 1.85% Floor), 7.11%, 10/15/31(b)(d) | | $ 87,831 | $ 87,273 |
| CIFC Funding Ltd., | | | |
| Series 2015-3A, Class AR, (3M USD LIBOR + 0.87%), 6.14%, 4/19/29(b)(d) | | 217,190 | 214,918 |
| Series 2014-2RA, Class A1, (3M USD LIBOR + 1.05%, 1.05% Floor), 6.32%, 4/24/30(b)(d) | | 228,851 | 226,906 |
| Series 2017-3A, Class A1, (3M USD LIBOR + 1.22%), 6.47%, 7/20/30(b)(d) | | 232,203 | 230,727 |
| Series 2017-4A, Class A1R, (3M USD LIBOR + 0.95%, 0.95% Floor), 6.22%, 10/24/30(b)(d) | | 238,002 | 235,271 |
| Series 2017-5A, Class A1, (3M USD LIBOR + 1.18%), 6.44%, 11/16/30(b)(d) | | 235,666 | 233,841 |
| Series 2013-3RA, Class A1, (3M USD LIBOR + 0.98%, 0.98% Floor), 6.25%, 4/24/31(b)(d) | | 250,000 | 247,510 |
|
| Citigroup Mortgage Loan Trust, Inc., Series 2007-WFH4, Class M3A, (1M USD LIBOR + 2.50%, 2.50% Floor), 7.52%, 7/25/37(d) | | 500,000 | 448,936 |
| Dewolf Park CLO Ltd., Series 2017-1A, Class AR, (3M USD LIBOR + 0.92%, 0.90% Floor), 6.18%, 10/15/30(b)(d) | | 249,797 | 246,756 |
| Dryden 87 CLO Ltd., Series 2021-87A, Class A1, (3M USD LIBOR + 1.10%, 1.10% Floor), 6.02%, 5/20/34(b)(d) | | 770,000 | 752,474 |
| Dryden XXVI Senior Loan Fund, Series 2013-26A, Class AR, (3M USD LIBOR + 0.90%), 6.16%, 4/15/29(b)(d) | | 209,523 | 207,432 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Other (Continued) |
| First Franklin Mortgage Loan Trust, | | | |
| Series 2003-FF4, Class M1, (1M USD LIBOR + 1.80%, 1.80% Floor), 6.65%, 10/25/33(d) | | $248,794 | $235,361 |
| Series 2006-FF13, Class A1, (1M USD LIBOR + 0.24%, 0.24% Floor), 5.26%, 10/25/36(d) | | 28,296 | 18,721 |
| Series 2006-FF13, Class A2C, (1M USD LIBOR + 0.32%, 0.32% Floor), 5.34%, 10/25/36(d) | | 16,509 | 11,000 |
|
| Flatiron CLO 17 Ltd., Series 2017-1A, Class AR, (3M USD LIBOR + 0.98%, 0.98% Floor), 5.84%, 5/15/30(b)(d) | | 220,836 | 219,162 |
| Generate CLO 2 Ltd., Series 2015-1A, Class AR, (3M USD LIBOR + 1.15%, 1.15% Floor), 6.42%, 1/22/31(b)(d) | | 248,308 | 245,828 |
| Golub Capital Partners CLO Ltd., Series 2015-25A, Class AR, (3M USD LIBOR + 1.38%, 1.38% Floor), 6.19%, 5/05/30(b)(d) | | 265,629 | 263,433 |
| Hardee's Funding LLC, Series 2021-1A, Class A2, 2.87%, 6/20/51(b) | | 412,650 | 334,459 |
| HGI CRE CLO Ltd., Series 2021-FL1, Class A, (1M USD LIBOR + 1.05%, 1.05% Floor), 6.00%, 6/16/36(b)(d) | | 779,562 | 745,517 |
| Hildene Community Funding CDO Ltd., Series 2015-1A, Class ARR, 2.60%, 11/01/35(b) | | 449,789 | 371,538 |
| Home Equity Asset Trust, Series 2006-4, Class 2A4, (1M USD LIBOR + 0.56%, 0.56% Floor), 5.58%, 8/25/36(d) | | 349,192 | 338,831 |
| KKR CLO 32 Ltd., Series 32A, Class A1, (3M USD LIBOR + 1.32%, 1.32% Floor), 6.58%, 1/15/32(b)(d) | | 150,000 | 148,494 |
| | | Par (a) | Value |
| Other (Continued) |
|
| KREF Ltd., Series 2022-FL3, Class A, (1M CME Term SOFR + 1.45%, 1.45% Floor), 6.37%, 2/15/39(b)(d) | | $820,000 | $803,546 |
| LCM Loan Income Fund I Income Note Issuer Ltd., Series 27A, Class A1, (3M USD LIBOR + 1.08%), 6.34%, 7/16/31(b)(d) | | 250,000 | 246,719 |
| Long Beach Mortgage Loan Trust, Series 2006-6, Class 2A3, (1M USD LIBOR + 0.30%, 0.30% Floor), 5.32%, 7/25/36(d) | | 736,828 | 296,757 |
| Madison Park Funding XIII Ltd., Series 2014-13A, Class AR2, (3M USD LIBOR + 0.95%, 0.95% Floor), 6.22%, 4/19/30(b)(d) | | 398,706 | 395,319 |
| Madison Park Funding XVIII Ltd., Series 2015-18A, Class ARR, (3M USD LIBOR + 0.94%, 0.94% Floor), 6.20%, 10/21/30(b)(d) | | 495,675 | 489,753 |
| Madison Park Funding XXIII Ltd., Series 2017-23A, Class AR, (3M USD LIBOR + 0.97%, 0.97% Floor), 6.26%, 7/27/31(b)(d) | | 247,160 | 244,815 |
| Madison Park Funding XXX Ltd., Series 2018-30A, Class A, (3M USD LIBOR + 0.75%, 0.75% Floor), 6.01%, 4/15/29(b)(d) | | 237,486 | 234,734 |
| Merrill Lynch Mortgage Investors Trust, Series 2004-WMC5, Class M1, (1M USD LIBOR + 0.93%, 0.93% Floor), 5.95%, 7/25/35(d) | | 160,276 | 153,635 |
| MF1 LLC, Series 2022-FL10, Class A, (1M CME Term SOFR + 2.64%, 2.64% Floor), 7.55%, 9/17/37(b)(d) | | 800,000 | 792,648 |
| Myers Park CLO Ltd., Series 2018-1A, Class B1, (3M USD LIBOR + 1.60%, 1.60% Floor), 6.85%, 10/20/30(b)(d) | | 250,000 | 244,348 |
| NP SPE X L.P., Series 2021-1A, Class A1, 2.23%, 3/19/51(b) | | 775,975 | 689,768 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Other (Continued) |
|
| OCP CLO Ltd., Series 2017-14A, Class A1A, (3M USD LIBOR + 1.15%, 1.15% Floor), 6.07%, 11/20/30(b)(d) | | $ 250,000 | $ 247,380 |
| Octagon Investment Partners 31 Ltd., Series 2017-1A, Class AR, (3M USD LIBOR + 1.05%, 1.05% Floor), 6.30%, 7/20/30(b)(d) | | 232,819 | 230,741 |
| Octagon Investment Partners XXI Ltd., | | | |
| Series 2012-1A, Class AARR, (3M USD LIBOR + 0.95%, 0.95% Floor), 6.21%, 7/15/29(b)(d) | | 1,356,352 | 1,344,080 |
| Series 2012-1A, Class AAR3, (3M USD LIBOR + 1.00%, 1.00% Floor), 5.87%, 2/14/31(b)(d) | | 260,000 | 256,579 |
|
| OHA Credit Funding 7 Ltd., Series 2020-7A, Class AR, (3M CME Term SOFR + 1.30%, 1.30% Floor), 6.33%, 2/24/37(b)(d) | | 350,000 | 343,230 |
| Owl Rock CLO III Ltd., Series 2020-3A, Class A1L, (3M USD LIBOR + 1.80%), 7.05%, 4/20/32(b)(d) | | 270,000 | 264,408 |
| Point Au Roche Park CLO Ltd., Series 2021-1A, Class A, (3M USD LIBOR + 1.08%, 1.08% Floor), 6.33%, 7/20/34(b)(d) | | 620,000 | 608,217 |
| Rad CLO 1 Ltd., Series 2018-1A, Class AR, (3M USD LIBOR + 0.98%), 6.24%, 7/15/31(b)(d) | | 250,000 | 247,006 |
| RR 3 Ltd., Series 2018-3A, Class A1R2, (3M USD LIBOR + 1.09%, 1.09% Floor), 6.35%, 1/15/30(b)(d) | | 229,589 | 227,716 |
| SBA Small Business Investment Cos., Series 2021-10A, Class 1, 1.67%, 3/10/31 | | 223,586 | 203,782 |
| Silver Rock CLO I Ltd., Series 2020-1A, Class A, (3M USD LIBOR + 1.65%, 1.65% Floor), 6.90%, 10/20/31(b)(d) | | 440,000 | 438,095 |
| | | Par (a) | Value |
| Other (Continued) |
|
| Structured Asset Investment Loan Trust, Series 2004-7, Class A8, (1M USD LIBOR + 1.20%, 1.20% Floor), 6.22%, 8/25/34(d) | | $177,724 | $171,424 |
| STWD Ltd., Series 2022-FL3, Class A, (30D Average SOFR + 1.35%, 1.35% Floor), 6.10%, 11/15/38(b)(d) | | 430,000 | 420,862 |
| Sunrun Vulcan Issuer LLC, Series 2021-1A, Class A, 2.46%, 1/30/52(b) | | 583,444 | 495,637 |
| TCI-Symphony CLO Ltd., Series 2016-1A, Class AR2, (3M USD LIBOR + 1.02%, 1.02% Floor), 6.26%, 10/13/32(b)(d) | | 250,000 | 245,880 |
| Towd Point Mortgage Trust, | | | |
| Series 2016-3, Class B1, 4.11%, 4/25/56(b)(e) | | 190,000 | 181,916 |
| Series 2017-4, Class B2, 3.52%, 6/25/57(b)(e) | | 330,000 | 262,839 |
| Series 2019-HY2, Class A1, (1M USD LIBOR + 1.00%, 1.00% Floor), 6.02%, 5/25/58(b)(d) | | 602,039 | 596,815 |
| Series 2020-2, Class M1B, 3.00%, 4/25/60(b)(e) | | 240,000 | 187,366 |
|
| TRTX Issuer Ltd., Series 2022-FL5, Class A, (30D Average SOFR + 1.65%, 1.65% Floor), 6.40%, 2/15/39(b)(d) | | 810,000 | 783,185 |
| United States Small Business Administration, | | | |
| Series 2019-20D, Class 1, 2.98%, 4/01/39 | | 34,178 | 31,938 |
| Series 2019-25G, Class 1, 2.69%, 7/01/44 | | 57,467 | 51,420 |
|
| Venture 31 CLO Ltd., Series 2018-31A, Class A1, (3M USD LIBOR + 1.03%, 1.03% Floor), 6.28%, 4/20/31(b)(d) | | 410,000 | 404,722 |
| Voya CLO Ltd., | | | |
| Series 2015-1A, Class A1R, (3M USD LIBOR + 0.90%, 0.90% Floor), 6.16%, 1/18/29(b)(d) | | 239,952 | 237,839 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Other (Continued) |
| Voya CLO Ltd., | | | |
| Series 2018-2A, Class A1, (3M USD LIBOR + 1.00%, 1.00% Floor), 6.26%, 7/15/31(b)(d) | | $570,000 | $ 563,867 |
| Series 2017-3A, Class A1R, (3M USD LIBOR + 1.04%), 6.29%, 4/20/34(b)(d) | | 230,000 | 225,283 |
|
| Whitebox CLO II Ltd., Series 2020-2A, Class A1R, (3M USD LIBOR + 1.22%, 1.22% Floor), 6.49%, 10/24/34(b)(d) | | 290,000 | 283,477 |
| Whitebox CLO III Ltd., Series 2021-3A, Class A1, (3M USD LIBOR + 1.22%, 1.22% Floor), 6.48%, 10/15/34(b)(d) | | 420,000 | 410,249 |
| Whitebox CLO IV Ltd., Series 2023-4A, Class A1, (3M CME Term SOFR + 2.15%, 2.15% Floor), 6.93%, 4/20/36(b)(d) | | 540,000 | 539,188 |
| | | | 30,570,653 |
| Student Loan – 0.2% |
| Navient Student Loan Trust, | | | |
| Series 2017-1A, Class A3, (1M USD LIBOR + 1.15%), 6.17%, 7/26/66(b)(d) | | 206,965 | 203,907 |
| Series 2017-2A, Class A, (1M USD LIBOR + 1.05%), 6.07%, 12/27/66(b)(d) | | 98,123 | 95,790 |
|
| SLM Private Credit Student Loan Trust, Series 2006-B, Class A5, (3M USD LIBOR + 0.27%), 5.14%, 12/15/39(d) | | 176,986 | 164,588 |
| SLM Private Education Loan Trust, Series 2010-C, Class A5, (1M USD LIBOR + 4.75%), 9.70%, 10/15/41(b)(d) | | 224,644 | 243,256 |
| SMB Private Education Loan Trust, | | | |
| Series 2020-A, Class A2A, 2.23%, 9/15/37(b) | | 164,478 | 152,758 |
| Series 2021-E, Class A1A, 1.68%, 2/15/51(b) | | 163,711 | 148,176 |
| | | Par (a) | Value |
| Student Loan (Continued) |
| SMB Private Education Loan Trust, | | | |
| Series 2021-A, Class A2B, 1.59%, 1/15/53(b) | | $520,598 | $ 454,582 |
|
| Sofi Professional Loan Program Trust, Series 2018-B, Class A2FX, 3.34%, 8/25/47(b) | | 53,482 | 51,808 |
| | | | 1,514,865 |
| Whole Loan – 0.0%(c) |
| Cascade MH Asset Trust, Series 2021-MH1, Class A1, 1.75%, 2/25/46(b) | | 126,282 | 109,699 |
Total Asset-Backed Securities
(Cost $36,804,107) | 35,468,599 |
|
| Corporate Bonds – 18.3% |
| Advertising & Marketing – 0.0%(c) |
| Interpublic (The) Group of Cos., Inc, 4.75%, 3/30/30 | | 60,000 | 58,911 |
| Aerospace & Defense – 1.0% |
| Boeing (The) Co., | | | |
| 4.88%, 5/01/25 | | 360,000 | 359,597 |
| 2.20%, 2/04/26 | | 390,000 | 362,539 |
| 3.10%, 5/01/26 | | 40,000 | 37,919 |
| 2.70%, 2/01/27 | | 30,000 | 27,833 |
| 2.80%, 3/01/27 | | 40,000 | 36,896 |
| 3.20%, 3/01/29 | | 130,000 | 119,047 |
| 5.15%, 5/01/30 | | 370,000 | 372,847 |
| 3.25%, 2/01/35 | | 290,000 | 237,274 |
| 5.71%, 5/01/40 | | 230,000 | 230,843 |
| 3.63%, 3/01/48 | | 147,000 | 105,262 |
| 3.75%, 2/01/50 | | 160,000 | 120,125 |
| 5.81%, 5/01/50 | | 350,000 | 348,126 |
| 3.95%, 8/01/59 | | 195,000 | 143,512 |
| 5.93%, 5/01/60 | | 140,000 | 138,332 |
| General Dynamics Corp., | | | |
| 4.25%, 4/01/40 | | 10,000 | 9,336 |
| 4.25%, 4/01/50 | | 70,000 | 65,110 |
| Huntington Ingalls Industries, Inc., | | | |
| 2.04%, 8/16/28 | | 271,000 | 231,533 |
| 4.20%, 5/01/30 | | 103,000 | 97,172 |
| L3Harris Technologies, Inc., | | | |
| 4.40%, 6/15/28 | | 342,000 | 339,045 |
| 1.80%, 1/15/31(f) | | 318,000 | 258,388 |
| 4.85%, 4/27/35 | | 60,000 | 58,943 |
| Lockheed Martin Corp., | | | |
| 3.55%, 1/15/26 | | 60,000 | 59,151 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Aerospace & Defense (Continued) |
| Lockheed Martin Corp., | | | |
| 1.85%, 6/15/30 | | $104,000 | $ 88,943 |
| 3.90%, 6/15/32 | | 90,000 | 87,405 |
| 3.60%, 3/01/35 | | 185,000 | 171,817 |
| 4.15%, 6/15/53 | | 390,000 | 352,590 |
| Northrop Grumman Corp., | | | |
| 2.93%, 1/15/25 | | 40,000 | 38,796 |
| 3.25%, 1/15/28 | | 280,000 | 266,628 |
| 4.03%, 10/15/47 | | 242,000 | 208,583 |
| 5.25%, 5/01/50 | | 820,000 | 845,725 |
| 4.95%, 3/15/53 | | 214,000 | 211,489 |
| Raytheon Technologies Corp., | | | |
| 3.15%, 12/15/24 | | 50,000 | 48,438 |
| 7.00%, 11/01/28 | | 90,000 | 98,560 |
| 4.13%, 11/16/28 | | 573,000 | 565,258 |
| 2.25%, 7/01/30 | | 100,000 | 86,429 |
| 4.50%, 6/01/42 | | 30,000 | 28,323 |
| 4.15%, 5/15/45 | | 150,000 | 131,202 |
| 4.63%, 11/16/48 | | 40,000 | 38,033 |
| 3.13%, 7/01/50 | | 241,000 | 177,402 |
| 3.03%, 3/15/52 | | 726,000 | 520,799 |
| 5.38%, 2/27/53 | | 135,000 | 141,942 |
|
| Textron, Inc., 3.90%, 9/17/29 | | 245,000 | 231,614 |
| | | | 8,098,806 |
| Apparel & Textile Products – 0.0%(c) |
| NIKE, Inc., | | | |
| 2.40%, 3/27/25 | | 60,000 | 58,135 |
| 2.75%, 3/27/27 | | 100,000 | 95,414 |
| 2.85%, 3/27/30 | | 100,000 | 92,452 |
| 3.25%, 3/27/40 | | 50,000 | 42,197 |
| 3.38%, 3/27/50 | | 20,000 | 16,476 |
| | | | 304,674 |
| Asset Management – 0.0%(c) |
| Nuveen LLC, 4.00%, 11/01/28(b) | | 100,000 | 96,087 |
| Vanguard Group (The), Inc., 3.05%, 8/22/50(g) | | 170,000 | 111,673 |
| | | | 207,760 |
| Automotive – 0.2% |
| General Motors Co., | | | |
| 5.60%, 10/15/32(f) | | 60,000 | 58,782 |
| 6.60%, 4/01/36 | | 10,000 | 10,280 |
| 5.95%, 4/01/49 | | 70,000 | 64,833 |
| General Motors Financial Co., Inc., | | | |
| 4.00%, 1/15/25 | | 812,000 | 793,702 |
| 2.90%, 2/26/25(f) | | 239,000 | 228,749 |
| | | Par (a) | Value |
| Automotive (Continued) |
| General Motors Financial Co., Inc., | | | |
| 3.80%, 4/07/25 | | $ 69,000 | $ 67,030 |
| 4.30%, 4/06/29 | | 169,000 | 157,503 |
| | | | 1,380,879 |
| Banking – 2.8% |
| Bank of America Corp., | | | |
| 4.20%, 8/26/24 | | 60,000 | 59,186 |
| (3M USD LIBOR + 0.87%), 2.46%, 10/22/25(f)(h) | | 235,000 | 224,569 |
| (SOFR + 1.15%), 1.32%, 6/19/26(h) | | 1,090,000 | 997,034 |
| (SOFR + 1.58%), 4.38%, 4/27/28(h) | | 430,000 | 417,424 |
| (3M USD LIBOR + 1.37%), 3.59%, 7/21/28(h) | | 160,000 | 150,467 |
| (3M USD LIBOR + 1.04%), 3.42%, 12/20/28(h) | | 600,000 | 556,972 |
| (SOFR + 1.63%), 5.20%, 4/25/29(h) | | 285,000 | 286,895 |
| (3M CME Term SOFR + 1.21%), 3.97%, 2/07/30(h) | | 620,000 | 580,093 |
| (SOFR + 2.15%), 2.59%, 4/29/31(h) | | 990,000 | 838,627 |
| (SOFR + 1.53%), 1.90%, 7/23/31(h) | | 200,000 | 160,613 |
| (SOFR + 1.22%), 2.65%, 3/11/32(h) | | 483,000 | 402,537 |
| (SOFR + 1.32%), 2.69%, 4/22/32(h) | | 133,000 | 111,138 |
| (SOFR + 1.22%), 2.30%, 7/21/32(h) | | 752,000 | 606,669 |
| (SOFR + 1.21%), 2.57%, 10/20/32(h) | | 471,000 | 386,765 |
| (SOFR + 1.33%), 2.97%, 2/04/33(h) | | 1,046,000 | 883,019 |
| (SOFR + 1.83%), 4.57%, 4/27/33(h) | | 1,029,000 | 981,474 |
| 5.00%, 1/21/44 | | 170,000 | 164,496 |
| (3M USD LIBOR + 1.52%), 4.33%, 3/15/50(h) | | 30,000 | 25,795 |
| (3M USD LIBOR + 3.15%), 4.08%, 3/20/51(h) | | 530,000 | 444,545 |
| Citigroup, Inc., | | | |
| (SOFR + 1.67%), 1.68%, 5/15/24(h) | | 120,000 | 119,823 |
| 3.30%, 4/27/25 | | 180,000 | 174,462 |
| 5.50%, 9/13/25 | | 120,000 | 120,392 |
| (SOFR + 2.84%), 3.11%, 4/08/26(h) | | 80,000 | 76,961 |
| (SOFR + 1.89%), 4.66%, 5/24/28(f)(h) | | 70,000 | 69,375 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Banking (Continued) |
| Citigroup, Inc., | | | |
| (3M CME Term SOFR + 1.41%), 3.52%, 10/27/28(h) | | $1,110,000 | $1,041,974 |
| (3M CME Term SOFR + 1.45%), 4.08%, 4/23/29(h) | | 150,000 | 143,171 |
| (3M CME Term SOFR + 1.60%), 3.98%, 3/20/30(h) | | 550,000 | 516,000 |
| (SOFR + 1.42%), 2.98%, 11/05/30(h) | | 187,000 | 164,138 |
| (SOFR + 1.15%), 2.67%, 1/29/31(h) | | 160,000 | 137,147 |
| (SOFR + 3.91%), 4.41%, 3/31/31(h) | | 290,000 | 276,872 |
| (SOFR + 2.11%), 2.57%, 6/03/31(h) | | 340,000 | 287,706 |
| (SOFR + 1.94%), 3.79%, 3/17/33(h) | | 467,000 | 420,018 |
| (SOFR + 2.09%), 4.91%, 5/24/33(h) | | 210,000 | 205,155 |
| 8.13%, 7/15/39 | | 460,000 | 594,529 |
| 4.65%, 7/23/48 | | 30,000 | 27,672 |
| JPMorgan Chase & Co., | | | |
| (SOFR + 1.46%), 1.51%, 6/01/24(h) | | 310,000 | 308,951 |
| (3M USD LIBOR + 1.00%), 4.02%, 12/05/24(h) | | 470,000 | 465,648 |
| (SOFR + 1.85%), 2.08%, 4/22/26(h) | | 200,000 | 188,439 |
| (SOFR + 0.89%), 1.58%, 4/22/27(h) | | 530,000 | 480,204 |
| 3.63%, 12/01/27 | | 190,000 | 181,072 |
| (SOFR + 1.17%), 2.95%, 2/24/28(h) | | 229,000 | 213,053 |
| (3M USD LIBOR + 1.33%), 4.45%, 12/05/29(h) | | 320,000 | 311,504 |
| (SOFR + 2.04%), 2.52%, 4/22/31(h) | | 510,000 | 436,231 |
| (SOFR + 1.07%), 1.95%, 2/04/32(h) | | 433,000 | 349,023 |
| (3M CME Term SOFR + 1.25%), 2.58%, 4/22/32(h) | | 320,000 | 268,793 |
| (SOFR + 1.18%), 2.55%, 11/08/32(h) | | 381,000 | 317,121 |
| (SOFR + 1.26%), 2.96%, 1/25/33(h) | | 536,000 | 458,370 |
| (SOFR + 1.80%), 4.59%, 4/26/33(h) | | 184,000 | 179,035 |
| 4.95%, 6/01/45 | | 220,000 | 209,763 |
| (SOFR + 2.44%), 3.11%, 4/22/51(h) | | 50,000 | 35,548 |
|
| Morgan Stanley Bank NA, 4.75%, 4/21/26 | | 295,000 | 296,466 |
| | | Par (a) | Value |
| Banking (Continued) |
|
| U.S. Bancorp, 1.45%, 5/12/25(f) | | $ 250,000 | $ 232,011 |
| Wells Fargo & Co., | | | |
| (SOFR + 2.00%), 2.19%, 4/30/26(h) | | 570,000 | 536,960 |
| 3.00%, 10/23/26 | | 80,000 | 75,287 |
| 4.30%, 7/22/27 | | 270,000 | 264,174 |
| (3M USD LIBOR + 1.31%), 3.58%, 5/22/28(h) | | 300,000 | 283,889 |
| (SOFR + 2.10%), 2.39%, 6/02/28(h) | | 130,000 | 117,205 |
| 4.15%, 1/24/29 | | 230,000 | 221,398 |
| (3M CME Term SOFR + 1.43%), 2.88%, 10/30/30(h) | | 250,000 | 218,807 |
| (SOFR + 4.03%), 4.48%, 4/04/31(h) | | 300,000 | 288,794 |
| (SOFR + 1.50%), 3.35%, 3/02/33(h) | | 630,000 | 549,901 |
| (SOFR + 2.02%), 5.39%, 4/24/34(h) | | 120,000 | 122,072 |
| 4.40%, 6/14/46 | | 360,000 | 301,253 |
| 4.75%, 12/07/46 | | 370,000 | 323,561 |
| (SOFR + 4.50%), 5.01%, 4/04/51(h) | | 1,940,000 | 1,835,805 |
| | | | 22,724,051 |
| Beverages – 0.1% |
| Coca-Cola (The) Co., | | | |
| 3.38%, 3/25/27 | | 90,000 | 88,433 |
| 1.45%, 6/01/27 | | 90,000 | 81,847 |
| 2.50%, 6/01/40 | | 50,000 | 38,509 |
| 2.60%, 6/01/50 | | 80,000 | 57,524 |
| Constellation Brands, Inc., | | | |
| 3.60%, 5/09/24 | | 90,000 | 88,521 |
| 4.35%, 5/09/27 | | 130,000 | 128,947 |
| PepsiCo, Inc., | | | |
| 2.25%, 3/19/25(f) | | 10,000 | 9,642 |
| 2.63%, 3/19/27 | | 10,000 | 9,501 |
| 1.63%, 5/01/30 | | 40,000 | 34,033 |
| 2.88%, 10/15/49 | | 40,000 | 30,652 |
| | | | 567,609 |
| Biotechnology & Pharmaceuticals – 0.7% |
| AbbVie, Inc., | | | |
| 2.60%, 11/21/24 | | 490,000 | 473,047 |
| 3.80%, 3/15/25 | | 410,000 | 403,062 |
| 3.60%, 5/14/25 | | 40,000 | 39,079 |
| 2.95%, 11/21/26 | | 100,000 | 94,926 |
| 3.20%, 11/21/29 | | 480,000 | 443,557 |
| 4.55%, 3/15/35 | | 204,000 | 199,819 |
| 4.50%, 5/14/35 | | 196,000 | 190,754 |
| 4.70%, 5/14/45 | | 58,000 | 54,411 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Biotechnology & Pharmaceuticals (Continued) |
| AbbVie, Inc., | | | |
| 4.88%, 11/14/48 | | $ 20,000 | $ 19,195 |
| 4.25%, 11/21/49 | | 523,000 | 458,445 |
| Amgen, Inc., | | | |
| 4.05%, 8/18/29(f) | | 300,000 | 291,399 |
| 5.25%, 3/02/30 | | 395,000 | 405,683 |
| 4.40%, 5/01/45 | | 20,000 | 17,649 |
| 5.65%, 3/02/53 | | 49,000 | 50,762 |
| 4.40%, 2/22/62 | | 148,000 | 124,183 |
| 5.75%, 3/02/63 | | 198,000 | 205,079 |
|
| Biogen, Inc., 2.25%, 5/01/30 | | 37,000 | 31,485 |
| Bristol-Myers Squibb Co., | | | |
| 2.90%, 7/26/24 | | 192,000 | 188,045 |
| 3.20%, 6/15/26 | | 105,000 | 102,274 |
| 3.40%, 7/26/29 | | 65,000 | 62,186 |
| 4.55%, 2/20/48 | | 60,000 | 57,085 |
|
| Eli Lilly & Co., 4.95%, 2/27/63 | | 35,000 | 36,536 |
| Gilead Sciences, Inc., | | | |
| 2.60%, 10/01/40 | | 125,000 | 92,206 |
| 4.75%, 3/01/46 | | 386,000 | 368,660 |
| Johnson & Johnson, | | | |
| 0.55%, 9/01/25(f) | | 80,000 | 73,869 |
| 0.95%, 9/01/27 | | 150,000 | 133,222 |
| 3.63%, 3/03/37 | | 70,000 | 65,507 |
| 2.10%, 9/01/40 | | 260,000 | 189,030 |
| Merck & Co., Inc., | | | |
| 0.75%, 2/24/26 | | 240,000 | 219,630 |
| 1.45%, 6/24/30 | | 70,000 | 58,257 |
| 2.75%, 12/10/51 | | 250,000 | 177,157 |
| Pfizer, Inc., | | | |
| 0.80%, 5/28/25(f) | | 160,000 | 149,164 |
| 2.63%, 4/01/30 | | 160,000 | 144,891 |
| 1.70%, 5/28/30 | | 100,000 | 84,671 |
| 2.55%, 5/28/40 | | 240,000 | 181,635 |
| 2.70%, 5/28/50 | | 180,000 | 129,832 |
| | | | 6,016,392 |
| Cable & Satellite – 0.7% |
| Charter Communications Operating LLC/Charter Communications Operating Capital, | | | |
| 4.91%, 7/23/25 | | 320,000 | 317,004 |
| 4.20%, 3/15/28 | | 90,000 | 85,372 |
| 5.05%, 3/30/29 | | 700,000 | 678,318 |
| 4.40%, 4/01/33(f) | | 400,000 | 354,228 |
| 5.38%, 4/01/38 | | 60,000 | 52,009 |
| 3.50%, 6/01/41 | | 300,000 | 204,989 |
| 3.50%, 3/01/42 | | 60,000 | 40,517 |
| 5.38%, 5/01/47 | | 59,000 | 48,289 |
| | | Par (a) | Value |
| Cable & Satellite (Continued) |
| Charter Communications Operating LLC/Charter Communications Operating Capital, | | | |
| 5.75%, 4/01/48 | | $226,000 | $ 192,088 |
| 5.13%, 7/01/49 | | 286,000 | 223,533 |
| 4.80%, 3/01/50 | | 30,000 | 22,719 |
| 3.90%, 6/01/52 | | 478,000 | 311,404 |
| 6.83%, 10/23/55 | | 107,000 | 101,535 |
| 3.85%, 4/01/61 | | 187,000 | 114,459 |
| 4.40%, 12/01/61 | | 146,000 | 97,858 |
| 5.50%, 4/01/63 | | 110,000 | 87,877 |
| Comcast Corp., | | | |
| 3.95%, 10/15/25 | | 160,000 | 158,121 |
| 3.15%, 3/01/26 | | 50,000 | 48,571 |
| 3.30%, 4/01/27 | | 50,000 | 48,193 |
| 4.15%, 10/15/28 | | 520,000 | 515,749 |
| 2.65%, 2/01/30 | | 141,000 | 126,232 |
| 3.40%, 4/01/30 | | 70,000 | 65,623 |
| 4.25%, 10/15/30 | | 390,000 | 386,240 |
| 4.20%, 8/15/34 | | 341,000 | 327,857 |
| 3.25%, 11/01/39 | | 20,000 | 16,229 |
| 3.75%, 4/01/40 | | 306,000 | 264,096 |
| 3.40%, 7/15/46 | | 20,000 | 15,571 |
| 4.00%, 8/15/47 | | 30,000 | 25,303 |
| 3.97%, 11/01/47 | | 140,000 | 118,686 |
| 4.00%, 3/01/48 | | 20,000 | 16,874 |
| 4.00%, 11/01/49 | | 240,000 | 202,293 |
| 3.45%, 2/01/50 | | 60,000 | 46,397 |
| 2.80%, 1/15/51 | | 190,000 | 128,271 |
| 2.89%, 11/01/51 | | 120,000 | 82,007 |
| 2.94%, 11/01/56 | | 80,000 | 53,185 |
| 4.95%, 10/15/58(f) | | 20,000 | 19,641 |
| Cox Communications, Inc., | | | |
| 3.15%, 8/15/24(b) | | 71,000 | 69,215 |
| 2.95%, 10/01/50(b) | | 119,000 | 75,384 |
| Time Warner Cable LLC, | | | |
| 6.55%, 5/01/37 | | 50,000 | 48,732 |
| 5.88%, 11/15/40 | | 130,000 | 115,641 |
| | | | 5,906,310 |
| Chemicals – 0.0%(c) |
| Ecolab, Inc., 2.75%, 8/18/55 | | 97,000 | 62,676 |
| Sherwin-Williams (The) Co., 2.30%, 5/15/30(f) | | 76,000 | 64,782 |
| Westlake Corp., 3.38%, 8/15/61 | | 44,000 | 27,479 |
| | | | 154,937 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Commercial Support Services – 0.0%(c) |
| Cintas Corp. No. 2, | | | |
| 3.70%, 4/01/27 | | $ 20,000 | $ 19,580 |
| 4.00%, 5/01/32 | | 120,000 | 116,758 |
|
| Republic Services, Inc., 2.50%, 8/15/24 | | 70,000 | 67,828 |
| | | | 204,166 |
| Containers & Packaging – 0.0%(c) |
| Berry Global, Inc., 5.50%, 4/15/28(b) | | 180,000 | 180,105 |
| International Paper Co., 6.00%, 11/15/41 | | 45,000 | 47,174 |
| | | | 227,279 |
| Diversified Industrials – 0.1% |
| 3M Co., | | | |
| 2.38%, 8/26/29(f) | | 410,000 | 366,977 |
| 3.70%, 4/15/50 | | 100,000 | 81,329 |
|
| Emerson Electric Co., 2.80%, 12/21/51 | | 460,000 | 311,128 |
| Honeywell International, Inc., 1.35%, 6/01/25 | | 70,000 | 65,848 |
| | | | 825,282 |
| E-Commerce Discretionary – 0.3% |
| Amazon.com, Inc., | | | |
| 0.80%, 6/03/25(f) | | 130,000 | 121,063 |
| 3.30%, 4/13/27 | | 50,000 | 48,602 |
| 1.20%, 6/03/27 | | 380,000 | 340,367 |
| 3.15%, 8/22/27 | | 140,000 | 134,877 |
| 3.45%, 4/13/29(f) | | 110,000 | 106,301 |
| 1.50%, 6/03/30 | | 70,000 | 58,511 |
| 2.10%, 5/12/31 | | 80,000 | 68,698 |
| 3.60%, 4/13/32 | | 320,000 | 304,259 |
| 4.70%, 12/01/32(f) | | 203,000 | 208,770 |
| 3.88%, 8/22/37 | | 200,000 | 187,330 |
| 4.05%, 8/22/47 | | 140,000 | 127,135 |
| 2.50%, 6/03/50 | | 761,000 | 513,850 |
| 4.25%, 8/22/57 | | 240,000 | 217,962 |
| | | | 2,437,725 |
| Electric Utilities – 1.4% |
| AEP Texas, Inc., | | | |
| 3.95%, 6/01/28 | | 212,000 | 205,802 |
| 3.45%, 5/15/51 | | 171,000 | 125,559 |
| AEP Transmission Co. LLC, | | | |
| 3.80%, 6/15/49 | | 303,000 | 250,578 |
| 3.65%, 4/01/50 | | 89,000 | 71,174 |
| 4.50%, 6/15/52 | | 160,000 | 148,070 |
| 5.40%, 3/15/53(f) | | 80,000 | 84,271 |
| Alabama Power Co., | | | |
| 3.75%, 3/01/45 | | 38,000 | 30,854 |
| | | Par (a) | Value |
| Electric Utilities (Continued) |
| Alabama Power Co., | | | |
| 3.00%, 3/15/52 | | $170,000 | $116,907 |
| Ameren Illinois Co., | | | |
| 3.25%, 3/15/50 | | 106,000 | 79,611 |
| 2.90%, 6/15/51 | | 35,000 | 24,276 |
|
| American Transmission Systems, Inc., 2.65%, 1/15/32(b) | | 203,000 | 171,639 |
| Baltimore Gas and Electric Co., | | | |
| 3.75%, 8/15/47 | | 195,000 | 156,656 |
| 2.90%, 6/15/50 | | 156,000 | 108,567 |
| CenterPoint Energy Houston Electric LLC, | | | |
| 2.35%, 4/01/31 | | 75,000 | 64,691 |
| 4.95%, 4/01/33(f) | | 75,000 | 76,908 |
| 3.35%, 4/01/51 | | 247,000 | 189,914 |
| 4.85%, 10/01/52 | | 31,000 | 30,780 |
|
| Cleveland Electric Illuminating (The) Co., 3.50%, 4/01/28(b) | | 100,000 | 94,529 |
| Commonwealth Edison Co., | | | |
| 4.00%, 3/01/49 | | 129,000 | 109,426 |
| 3.00%, 3/01/50 | | 51,000 | 36,482 |
| 5.30%, 2/01/53 | | 45,000 | 46,971 |
| Consumers Energy Co., | | | |
| 4.63%, 5/15/33 | | 118,000 | 118,684 |
| 3.75%, 2/15/50 | | 309,000 | 254,749 |
| 4.20%, 9/01/52 | | 171,000 | 151,437 |
| DTE Electric Co., | | | |
| 3.95%, 3/01/49 | | 246,000 | 209,761 |
| 5.40%, 4/01/53 | | 156,000 | 165,172 |
| Duke Energy Carolinas LLC, | | | |
| 4.95%, 1/15/33 | | 84,000 | 86,300 |
| 3.75%, 6/01/45 | | 136,000 | 112,083 |
| 3.95%, 3/15/48 | | 122,000 | 101,983 |
| 3.55%, 3/15/52 | | 231,000 | 182,837 |
|
| Duke Energy Corp., 5.00%, 12/08/25 | | 292,000 | 293,890 |
| Duke Energy Florida LLC, | | | |
| 2.50%, 12/01/29 | | 325,000 | 288,419 |
| 1.75%, 6/15/30 | | 241,000 | 200,613 |
| 5.95%, 11/15/52 | | 66,000 | 75,140 |
| Duke Energy Progress LLC, | | | |
| 3.45%, 3/15/29 | | 233,000 | 220,557 |
| 2.50%, 8/15/50 | | 257,000 | 163,146 |
| 4.00%, 4/01/52 | | 5,000 | 4,224 |
| 5.35%, 3/15/53 | | 106,000 | 110,276 |
|
| Edison International, 6.95%, 11/15/29 | | 236,000 | 256,338 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Electric Utilities (Continued) |
|
| Entergy Louisiana LLC, 4.20%, 9/01/48 | | $148,000 | $128,923 |
| Entergy Mississippi LLC, 2.85%, 6/01/28 | | 214,000 | 197,867 |
| Evergy Kansas Central, Inc., 5.70%, 3/15/53 | | 80,000 | 84,623 |
| Exelon Corp., | | | |
| 5.10%, 6/15/45 | | 16,000 | 15,146 |
| 4.70%, 4/15/50(f) | | 79,000 | 71,933 |
| 4.10%, 3/15/52(f) | | 194,000 | 161,167 |
| 5.60%, 3/15/53(f) | | 117,000 | 120,439 |
| FirstEnergy Corp., | | | |
| 2.05%, 3/01/25 | | 22,000 | 20,772 |
| 1.60%, 1/15/26 | | 40,000 | 36,648 |
| 4.15%, 7/15/27 | | 499,000 | 485,277 |
| 5.10%, 7/15/47 | | 77,000 | 71,054 |
| 3.40%, 3/01/50 | | 55,000 | 38,537 |
| FirstEnergy Transmission LLC, | | | |
| 4.35%, 1/15/25(b) | | 285,000 | 280,657 |
| 4.55%, 4/01/49(b) | | 215,000 | 186,324 |
|
| Florida Power & Light Co., 3.99%, 3/01/49 | | 174,000 | 151,372 |
| Idaho Power Co., 5.50%, 3/15/53 | | 95,000 | 100,859 |
| Kentucky Utilities Co., 5.45%, 4/15/33 | | 50,000 | 52,211 |
| Louisville Gas and Electric Co., 5.45%, 4/15/33 | | 60,000 | 62,590 |
| Metropolitan Edison Co., 5.20%, 4/01/28(b) | | 75,000 | 76,475 |
| MidAmerican Energy Co., | | | |
| 3.10%, 5/01/27 | | 148,000 | 141,571 |
| 3.65%, 4/15/29 | | 160,000 | 154,163 |
| 3.65%, 8/01/48 | | 111,000 | 91,212 |
| 4.25%, 7/15/49 | | 85,000 | 76,570 |
|
| Mid-Atlantic Interstate Transmission LLC, 4.10%, 5/15/28(b) | | 40,000 | 38,853 |
| Northern States Power Co., | | | |
| 2.60%, 6/01/51 | | 104,000 | 70,449 |
| 3.20%, 4/01/52 | | 212,000 | 157,963 |
|
| NRG Energy, Inc., 2.45%, 12/02/27(b) | | 36,000 | 31,261 |
| NSTAR Electric Co., 3.95%, 4/01/30 | | 49,000 | 47,612 |
| Ohio Power Co., | | | |
| 4.15%, 4/01/48 | | 52,000 | 44,894 |
| 4.00%, 6/01/49 | | 63,000 | 52,669 |
| | | Par (a) | Value |
| Electric Utilities (Continued) |
|
| Oklahoma Gas and Electric Co., 5.60%, 4/01/53 | | $102,000 | $ 105,733 |
| Oncor Electric Delivery Co. LLC, | | | |
| 4.55%, 9/15/32 | | 139,000 | 139,151 |
| 4.10%, 11/15/48 | | 51,000 | 44,972 |
| 2.70%, 11/15/51 | | 116,000 | 78,060 |
| Pacific Gas and Electric Co., | | | |
| 2.10%, 8/01/27 | | 50,000 | 43,748 |
| 2.50%, 2/01/31 | | 180,000 | 145,860 |
| 3.30%, 8/01/40 | | 20,000 | 13,996 |
| 3.50%, 8/01/50 | | 242,000 | 157,726 |
| 6.70%, 4/01/53 | | 40,000 | 40,769 |
|
| PacifiCorp., 4.15%, 2/15/50 | | 80,000 | 68,915 |
| Pennsylvania Electric Co., 5.15%, 3/30/26(b) | | 45,000 | 45,218 |
| Progress Energy, Inc., 7.75%, 3/01/31 | | 70,000 | 81,839 |
| Public Service Co. of New Hampshire, 5.15%, 1/15/53 | | 90,000 | 93,341 |
| Public Service Electric and Gas Co., | | | |
| 3.10%, 3/15/32(f) | | 10,000 | 9,010 |
| 4.90%, 12/15/32 | | 144,000 | 148,409 |
| 2.05%, 8/01/50 | | 208,000 | 123,490 |
|
| San Diego Gas & Electric Co., 2.95%, 8/15/51 | | 196,000 | 138,268 |
| Southern California Edison Co., | | | |
| 2.25%, 6/01/30 | | 396,000 | 339,735 |
| 2.50%, 6/01/31 | | 39,000 | 33,394 |
| 5.95%, 11/01/32 | | 219,000 | 238,225 |
|
| Southwestern Electric Power Co., 5.30%, 4/01/33 | | 110,000 | 111,499 |
| Southwestern Public Service Co., 3.15%, 5/01/50 | | 179,000 | 129,665 |
| Tampa Electric Co., 4.45%, 6/15/49 | | 38,000 | 32,802 |
| Trans-Allegheny Interstate Line Co., 3.85%, 6/01/25(b) | | 299,000 | 291,317 |
| Virginia Electric and Power Co., 4.00%, 1/15/43 | | 202,000 | 171,966 |
| Wisconsin Power and Light Co., 4.95%, 4/01/33 | | 139,000 | 142,169 |
| | | | 11,438,642 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Electrical Equipment – 0.0%(c) |
| Carrier Global Corp., 3.58%, 4/05/50 | | $ 10,000 | $ 7,470 |
| Otis Worldwide Corp., 2.06%, 4/05/25 | | 50,000 | 47,373 |
| | | | 54,843 |
| Entertainment Content – 0.2% |
| Fox Corp., 5.48%, 1/25/39 | | 370,000 | 350,653 |
| Time Warner Cable Enterprises LLC, 8.38%, 7/15/33 | | 170,000 | 192,104 |
| Warnermedia Holdings, Inc., | | | |
| 6.41%, 3/15/26 | | 140,000 | 141,207 |
| 3.76%, 3/15/27(b) | | 80,000 | 75,393 |
| 4.05%, 3/15/29(b) | | 140,000 | 129,592 |
| 4.28%, 3/15/32(b) | | 450,000 | 399,672 |
| 5.05%, 3/15/42(b) | | 30,000 | 24,813 |
| 5.14%, 3/15/52(b) | | 500,000 | 399,529 |
| | | | 1,712,963 |
| Food – 0.1% |
| Hershey (The) Co., 0.90%, 6/01/25 | | 30,000 | 27,902 |
| Kraft Heinz Foods Co., 3.00%, 6/01/26 | | 102,000 | 97,669 |
| Mars, Inc., | | | |
| 2.70%, 4/01/25(b) | | 90,000 | 86,675 |
| 3.20%, 4/01/30(b) | | 80,000 | 74,233 |
| 2.38%, 7/16/40(b) | | 200,000 | 142,321 |
|
| Mondelez International, Inc., 1.50%, 5/04/25 | | 250,000 | 234,545 |
| | | | 663,345 |
| Gas & Water Utilities – 0.0%(c) |
| Atmos Energy Corp., 4.13%, 3/15/49 | | 40,000 | 34,398 |
| NiSource, Inc., 5.25%, 3/30/28 | | 40,000 | 40,856 |
| Southwest Gas Corp., 5.45%, 3/23/28 | | 135,000 | 137,222 |
| | | | 212,476 |
| Health Care Facilities & Services – 0.8% |
| Cigna Group (The), | | | |
| 4.13%, 11/15/25 | | 20,000 | 19,744 |
| 4.50%, 2/25/26 | | 32,000 | 31,921 |
| 4.38%, 10/15/28 | | 440,000 | 437,004 |
| 4.80%, 8/15/38 | | 210,000 | 203,761 |
| 4.90%, 12/15/48 | | 130,000 | 122,276 |
| Consolidated Edison Co. of New York, Inc., | | | |
| 3.35%, 4/01/30 | | 50,000 | 46,423 |
| 3.95%, 4/01/50 | | 20,000 | 16,742 |
| | | Par (a) | Value |
| Health Care Facilities & Services (Continued) |
| Consolidated Edison Co. of New York, Inc., | | | |
| 6.15%, 11/15/52 | | $146,000 | $ 164,432 |
| CVS Health Corp., | | | |
| 3.63%, 4/01/27 | | 40,000 | 38,718 |
| 4.30%, 3/25/28 | | 217,000 | 214,343 |
| 3.75%, 4/01/30 | | 348,000 | 325,950 |
| 1.88%, 2/28/31 | | 40,000 | 32,578 |
| 2.13%, 9/15/31(f) | | 130,000 | 106,653 |
| 4.78%, 3/25/38 | | 400,000 | 381,959 |
| 4.13%, 4/01/40 | | 40,000 | 34,230 |
| 5.05%, 3/25/48 | | 470,000 | 438,757 |
| Elevance Health, Inc., | | | |
| 3.65%, 12/01/27 | | 300,000 | 291,234 |
| 4.10%, 5/15/32 | | 80,000 | 76,816 |
| 4.55%, 5/15/52 | | 40,000 | 36,295 |
| 6.10%, 10/15/52 | | 181,000 | 201,887 |
|
| Evergy Metro, Inc., 4.95%, 4/15/33 | | 100,000 | 100,504 |
| HCA, Inc., | | | |
| 5.25%, 4/15/25 | | 198,000 | 198,458 |
| 5.25%, 6/15/26 | | 234,000 | 234,844 |
| 3.50%, 9/01/30 | | 431,000 | 387,939 |
| Humana, Inc., | | | |
| 4.50%, 4/01/25 | | 20,000 | 19,880 |
| 3.95%, 3/15/27 | | 140,000 | 136,055 |
| 3.70%, 3/23/29 | | 310,000 | 293,424 |
| 3.13%, 8/15/29 | | 310,000 | 281,516 |
| 2.15%, 2/03/32 | | 50,000 | 40,542 |
|
| PECO Energy Co., 3.05%, 3/15/51 | | 150,000 | 107,321 |
| UnitedHealth Group, Inc., | | | |
| 3.75%, 7/15/25 | | 50,000 | 49,301 |
| 1.25%, 1/15/26 | | 40,000 | 37,008 |
| 3.85%, 6/15/28 | | 130,000 | 127,870 |
| 3.88%, 12/15/28 | | 110,000 | 107,917 |
| 4.00%, 5/15/29 | | 160,000 | 157,372 |
| 2.00%, 5/15/30 | | 40,000 | 34,373 |
| 2.30%, 5/15/31 | | 30,000 | 25,967 |
| 4.20%, 5/15/32 | | 110,000 | 107,857 |
| 2.75%, 5/15/40 | | 260,000 | 199,616 |
| 2.90%, 5/15/50 | | 234,000 | 167,113 |
| 3.25%, 5/15/51 | | 690,000 | 524,009 |
| 3.13%, 5/15/60 | | 111,000 | 78,978 |
| 5.20%, 4/15/63(f) | | 81,000 | 82,598 |
| | | | 6,722,185 |
| Household Products – 0.1% |
| Haleon U.S. Capital LLC, 3.38%, 3/24/29 | | 480,000 | 446,853 |
| Kenvue, Inc., | | | |
| 4.90%, 3/22/33(b) | | 250,000 | 258,881 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Household Products (Continued) |
| Kenvue, Inc., | | | |
| 5.20%, 3/22/63(b) | | $ 50,000 | $ 51,994 |
|
| Kimberly-Clark Corp., 3.10%, 3/26/30 | | 30,000 | 27,983 |
| Procter & Gamble (The) Co., | | | |
| 2.80%, 3/25/27 | | 20,000 | 19,223 |
| 3.00%, 3/25/30 | | 60,000 | 56,451 |
| | | | 861,385 |
| Institutional Financial Services – 1.2% |
| Bank of New York Mellon (The) Corp., 1.60%, 4/24/25 | | 60,000 | 56,441 |
| Goldman Sachs Group (The), Inc., | | | |
| 3.85%, 7/08/24 | | 30,000 | 29,504 |
| (SOFR + 0.51%), 0.66%, 9/10/24(h) | | 561,000 | 550,563 |
| 3.50%, 4/01/25 | | 140,000 | 136,010 |
| 3.50%, 11/16/26 | | 570,000 | 543,720 |
| (SOFR + 1.85%), 3.62%, 3/15/28(h) | | 60,000 | 57,127 |
| (3M CME Term SOFR + 1.16%), 3.81%, 4/23/29(h) | | 400,000 | 376,595 |
| (3M CME Term SOFR + 1.30%), 4.22%, 5/01/29(h) | | 960,000 | 922,300 |
| (SOFR + 1.09%), 1.99%, 1/27/32(h) | | 187,000 | 149,724 |
| (SOFR + 1.28%), 2.62%, 4/22/32(f)(h) | | 319,000 | 266,222 |
| (SOFR + 1.25%), 2.38%, 7/21/32(h) | | 240,000 | 196,058 |
| (SOFR + 1.26%), 2.65%, 10/21/32(h) | | 448,000 | 372,797 |
| (SOFR + 1.41%), 3.10%, 2/24/33(h) | | 221,000 | 190,163 |
| (SOFR + 1.51%), 3.21%, 4/22/42(h) | | 80,000 | 60,114 |
| (SOFR + 1.47%), 2.91%, 7/21/42(h) | | 160,000 | 114,909 |
| 5.15%, 5/22/45 | | 250,000 | 236,084 |
| 4.75%, 10/21/45 | | 230,000 | 213,311 |
| Intercontinental Exchange, Inc., | | | |
| 4.60%, 3/15/33 | | 100,000 | 99,900 |
| 4.95%, 6/15/52 | | 30,000 | 29,910 |
| Morgan Stanley, | | | |
| (SOFR + 1.99%), 2.19%, 4/28/26(h) | | 460,000 | 433,049 |
| (3M USD LIBOR + 1.14%), 3.77%, 1/24/29(h) | | 300,000 | 284,301 |
| | | Par (a) | Value |
| Institutional Financial Services (Continued) |
| Morgan Stanley, | | | |
| (SOFR + 1.59%), 5.16%, 4/20/29(h) | | $ 440,000 | $ 443,172 |
| (3M USD LIBOR + 1.63%), 4.43%, 1/23/30(h) | | 10,000 | 9,662 |
| (SOFR + 1.14%), 2.70%, 1/22/31(h) | | 1,033,000 | 891,530 |
| (SOFR + 3.12%), 3.62%, 4/01/31(h) | | 340,000 | 310,987 |
| (SOFR + 1.03%), 1.79%, 2/13/32(h) | | 328,000 | 258,939 |
| (SOFR + 1.02%), 1.93%, 4/28/32(h) | | 63,000 | 50,116 |
| (SOFR + 1.18%), 2.24%, 7/21/32(h) | | 603,000 | 486,738 |
| (SOFR + 1.20%), 2.51%, 10/20/32(h) | | 317,000 | 260,975 |
| (SOFR + 2.08%), 4.89%, 7/20/33(h) | | 25,000 | 24,657 |
| (SOFR + 2.56%), 6.34%, 10/18/33(h) | | 1,238,000 | 1,346,023 |
| | | | 9,401,601 |
| Insurance – 0.2% |
| American International Group, Inc., 2.50%, 6/30/25 | | 40,000 | 37,986 |
| Aon Corp., | | | |
| 4.50%, 12/15/28 | | 99,000 | 97,846 |
| 2.80%, 5/15/30 | | 168,000 | 147,879 |
|
| Aon Corp./Aon Global Holdings PLC, 5.35%, 2/28/33(f) | | 329,000 | 340,325 |
| Berkshire Hathaway Finance Corp., 4.25%, 1/15/49 | | 150,000 | 141,253 |
| Guardian Life Global Funding, 1.10%, 6/23/25(b) | | 50,000 | 45,945 |
| Marsh & McLennan Cos., Inc., | | | |
| 2.25%, 11/15/30 | | 108,000 | 92,209 |
| 5.45%, 3/15/53 | | 35,000 | 36,448 |
|
| MetLife, Inc., 6.40%, 12/15/36 | | 100,000 | 100,300 |
| New York Life Global Funding, 0.95%, 6/24/25(b) | | 80,000 | 73,917 |
| Principal Life Global Funding II, 1.25%, 6/23/25(b) | | 40,000 | 37,039 |
| Teachers Insurance & Annuity Association of America, 4.90%, 9/15/44(b) | | 80,000 | 74,508 |
| | | | 1,225,655 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Internet Media & Services – 0.0%(c) |
| Alphabet, Inc., | | | |
| 0.45%, 8/15/25 | | $ 30,000 | $ 27,663 |
| 1.10%, 8/15/30 | | 60,000 | 49,646 |
| 1.90%, 8/15/40 | | 70,000 | 49,308 |
| 2.05%, 8/15/50 | | 40,000 | 25,474 |
| | | | 152,091 |
| Leisure Facilities & Services – 0.2% |
| Las Vegas Sands Corp., | | | |
| 3.20%, 8/08/24 | | 100,000 | 96,852 |
| 2.90%, 6/25/25 | | 380,000 | 360,055 |
| McDonald's Corp., | | | |
| 3.30%, 7/01/25 | | 70,000 | 68,391 |
| 1.45%, 9/01/25 | | 140,000 | 131,027 |
| 3.70%, 1/30/26(f) | | 60,000 | 59,196 |
| 3.50%, 3/01/27 | | 30,000 | 29,229 |
| 3.50%, 7/01/27 | | 60,000 | 58,341 |
| 3.80%, 4/01/28 | | 270,000 | 265,912 |
| 2.13%, 3/01/30 | | 170,000 | 147,976 |
| 3.60%, 7/01/30 | | 80,000 | 76,200 |
| 4.88%, 12/09/45 | | 30,000 | 29,034 |
| 4.20%, 4/01/50 | | 240,000 | 209,691 |
| | | | 1,531,904 |
| Machinery – 0.0%(c) |
| Deere & Co., | | | |
| 3.10%, 4/15/30 | | 30,000 | 27,956 |
| 3.75%, 4/15/50(f) | | 200,000 | 179,873 |
|
| Eaton Corp., 4.15%, 11/02/42 | | 30,000 | 26,690 |
| | | | 234,519 |
| Medical Equipment & Devices – 0.1% |
| Abbott Laboratories, | | | |
| 3.75%, 11/30/26 | | 230,000 | 229,251 |
| 4.75%, 11/30/36 | | 40,000 | 41,506 |
| 4.90%, 11/30/46 | | 90,000 | 92,585 |
|
| Baxter International, Inc., 1.92%, 2/01/27 | | 79,000 | 70,992 |
| Becton Dickinson & Co., | | | |
| 3.36%, 6/06/24 | | 87,000 | 85,486 |
| 4.69%, 12/15/44 | | 15,000 | 14,029 |
| | | | 533,849 |
| Metals & Mining – 0.0%(c) |
| Freeport-McMoRan, Inc., 5.45%, 3/15/43 | | 80,000 | 75,093 |
| Newmont Corp., 2.25%, 10/01/30 | | 80,000 | 67,420 |
| | | | 142,513 |
| | | Par (a) | Value |
| Oil & Gas Producers – 3.3% |
| Apache Corp., | | | |
| 4.75%, 4/15/43 | | $ 100,000 | $ 77,964 |
| 4.25%, 1/15/44 | | 380,000 | 271,890 |
| BP Capital Markets America, Inc., | | | |
| 3.41%, 2/11/26(f) | | 20,000 | 19,586 |
| 3.12%, 5/04/26 | | 220,000 | 213,602 |
| 3.94%, 9/21/28 | | 110,000 | 108,705 |
| 3.63%, 4/06/30 | | 80,000 | 76,600 |
| 1.75%, 8/10/30 | | 200,000 | 167,925 |
| 4.81%, 2/13/33 | | 265,000 | 269,591 |
| 3.00%, 2/24/50 | | 190,000 | 136,108 |
| Cameron LNG LLC, | | | |
| 2.90%, 7/15/31(b) | | 160,000 | 142,134 |
| 3.30%, 1/15/35(b) | | 847,000 | 733,798 |
| 3.40%, 1/15/38(b) | | 225,000 | 196,292 |
| Cheniere Corpus Christi Holdings LLC, | | | |
| 5.88%, 3/31/25 | | 233,000 | 234,838 |
| 5.13%, 6/30/27 | | 436,000 | 437,941 |
| 2.74%, 12/31/39 | | 21,000 | 17,223 |
| Cheniere Energy Partners L.P., | | | |
| 4.50%, 10/01/29 | | 775,000 | 729,149 |
| 4.00%, 3/01/31 | | 157,000 | 140,425 |
| 3.25%, 1/31/32(f) | | 523,000 | 435,702 |
| Chevron Corp., | | | |
| 1.55%, 5/11/25 | | 130,000 | 122,897 |
| 2.00%, 5/11/27 | | 40,000 | 37,120 |
| 3.08%, 5/11/50 | | 230,000 | 177,562 |
|
| Chevron USA, Inc., 3.85%, 1/15/28 | | 240,000 | 239,609 |
| Continental Resources, Inc., | | | |
| 3.80%, 6/01/24 | | 130,000 | 127,500 |
| 4.38%, 1/15/28 | | 130,000 | 123,613 |
| 5.75%, 1/15/31(b) | | 20,000 | 19,556 |
| 4.90%, 6/01/44 | | 590,000 | 459,342 |
| Coterra Energy, Inc., | | | |
| 3.90%, 5/15/27 | | 280,000 | 269,469 |
| 4.38%, 3/15/29 | | 750,000 | 720,827 |
| Devon Energy Corp., | | | |
| 5.85%, 12/15/25 | | 120,000 | 122,151 |
| 5.25%, 10/15/27 | | 12,000 | 11,975 |
| 4.50%, 1/15/30 | | 112,000 | 107,331 |
| 5.60%, 7/15/41(f) | | 257,000 | 250,502 |
| 4.75%, 5/15/42 | | 440,000 | 386,570 |
| 5.00%, 6/15/45 | | 150,000 | 134,306 |
| Diamondback Energy, Inc., | | | |
| 3.25%, 12/01/26 | | 1,395,000 | 1,338,316 |
| 3.50%, 12/01/29 | | 1,770,000 | 1,636,554 |
| 3.13%, 3/24/31 | | 80,000 | 69,974 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Diamondback Energy, Inc., | | | |
| 4.40%, 3/24/51 | | $310,000 | $252,356 |
| Energy Transfer L.P., | | | |
| 3.90%, 5/15/24 | | 102,000 | 100,262 |
| 2.90%, 5/15/25 | | 200,000 | 190,898 |
| 5.50%, 6/01/27 | | 130,000 | 131,889 |
| 4.95%, 6/15/28 | | 20,000 | 19,913 |
| 5.25%, 4/15/29 | | 60,000 | 60,206 |
| 3.75%, 5/15/30 | | 430,000 | 395,338 |
| 5.75%, 2/15/33 | | 154,000 | 157,020 |
| 4.95%, 1/15/43 | | 107,000 | 90,399 |
| 5.15%, 2/01/43 | | 139,000 | 121,711 |
| 5.30%, 4/01/44 | | 160,000 | 141,629 |
| 5.35%, 5/15/45 | | 210,000 | 187,051 |
| 5.30%, 4/15/47 | | 165,000 | 144,553 |
| 5.40%, 10/01/47 | | 305,000 | 271,590 |
| 6.25%, 4/15/49 | | 107,000 | 106,145 |
| 5.00%, 5/15/50 | | 342,000 | 290,300 |
| Enterprise Products Operating LLC, | | | |
| 4.15%, 10/16/28 | | 270,000 | 265,796 |
| 3.13%, 7/31/29 | | 100,000 | 92,059 |
| 2.80%, 1/31/30 | | 300,000 | 268,204 |
| 7.55%, 4/15/38 | | 10,000 | 11,730 |
| 4.85%, 3/15/44 | | 80,000 | 74,638 |
| 5.10%, 2/15/45 | | 100,000 | 96,272 |
| 4.80%, 2/01/49 | | 40,000 | 36,928 |
| 4.20%, 1/31/50 | | 60,000 | 50,219 |
| 3.70%, 1/31/51 | | 170,000 | 130,641 |
| 3.20%, 2/15/52 | | 67,000 | 47,175 |
| 3.30%, 2/15/53 | | 120,000 | 86,397 |
| 3.95%, 1/31/60 | | 70,000 | 54,562 |
| (3M USD LIBOR + 2.57%), 5.38%, 2/15/78(h) | | 50,000 | 40,752 |
| EOG Resources, Inc., | | | |
| 4.38%, 4/15/30 | | 270,000 | 270,801 |
| 3.90%, 4/01/35 | | 180,000 | 166,765 |
| 4.95%, 4/15/50(f) | | 410,000 | 413,164 |
| EQT Corp., | | | |
| 5.70%, 4/01/28 | | 70,000 | 70,306 |
| 7.00%, 2/01/30 | | 150,000 | 158,257 |
| Exxon Mobil Corp., | | | |
| 2.99%, 3/19/25 | | 300,000 | 292,159 |
| 3.04%, 3/01/26 | | 70,000 | 68,090 |
| 2.44%, 8/16/29(f) | | 240,000 | 219,784 |
| 3.48%, 3/19/30 | | 120,000 | 115,208 |
| 4.11%, 3/01/46 | | 20,000 | 17,994 |
| 4.33%, 3/19/50 | | 10,000 | 9,310 |
| 3.45%, 4/15/51 | | 300,000 | 240,352 |
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Kinder Morgan Energy Partners L.P., | | | |
| 4.25%, 9/01/24 | | $100,000 | $ 98,966 |
| 6.50%, 2/01/37 | | 129,000 | 135,462 |
| 6.38%, 3/01/41 | | 110,000 | 113,677 |
| 4.70%, 11/01/42 | | 156,000 | 133,591 |
| 5.50%, 3/01/44 | | 111,000 | 103,911 |
| Kinder Morgan, Inc., | | | |
| 4.30%, 6/01/25 | | 90,000 | 88,901 |
| 4.30%, 3/01/28 | | 350,000 | 344,939 |
| 5.55%, 6/01/45 | | 210,000 | 198,055 |
| 5.05%, 2/15/46 | | 40,000 | 35,153 |
| 5.20%, 3/01/48 | | 60,000 | 53,570 |
| MPLX L.P., | | | |
| 4.00%, 3/15/28 | | 200,000 | 193,230 |
| 4.80%, 2/15/29 | | 30,000 | 29,817 |
| 4.50%, 4/15/38 | | 90,000 | 80,798 |
| 5.20%, 3/01/47 | | 60,000 | 54,124 |
| 5.20%, 12/01/47 | | 100,000 | 89,844 |
| 4.70%, 4/15/48 | | 210,000 | 175,518 |
| 5.50%, 2/15/49 | | 90,000 | 83,283 |
| 5.65%, 3/01/53 | | 52,000 | 49,760 |
| NGPL PipeCo LLC, | | | |
| 4.88%, 8/15/27(b) | | 168,000 | 163,596 |
| 3.25%, 7/15/31(b) | | 368,000 | 312,790 |
|
| Northwest Pipeline LLC, 4.00%, 4/01/27 | | 460,000 | 446,963 |
| Occidental Petroleum Corp., | | | |
| 6.95%, 7/01/24 | | 94,000 | 95,645 |
| 5.55%, 3/15/26 | | 160,000 | 161,342 |
| 3.00%, 2/15/27 | | 220,000 | 200,750 |
| 7.88%, 9/15/31 | | 210,000 | 237,978 |
| 4.50%, 7/15/44 | | 80,000 | 64,714 |
| 6.60%, 3/15/46 | | 150,000 | 160,069 |
| 4.10%, 2/15/47 | | 50,000 | 39,045 |
| 4.20%, 3/15/48 | | 230,000 | 179,504 |
| Pioneer Natural Resources Co., | | | |
| 1.13%, 1/15/26 | | 30,000 | 27,366 |
| 1.90%, 8/15/30 | | 150,000 | 124,549 |
| 2.15%, 1/15/31 | | 380,000 | 318,619 |
| Sabine Pass Liquefaction LLC, | | | |
| 5.63%, 3/01/25 | | 931,000 | 935,579 |
| 5.88%, 6/30/26 | | 669,000 | 682,935 |
| 5.90%, 9/15/37(b) | | 99,000 | 101,921 |
|
| Southern Natural Gas Co. LLC, 8.00%, 3/01/32 | | 80,000 | 93,259 |
| Targa Resources Corp., | | | |
| 5.20%, 7/01/27 | | 260,000 | 260,427 |
| 4.95%, 4/15/52 | | 60,000 | 49,724 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., | | | |
| 5.00%, 1/15/28(f) | | $ 307,000 | $ 300,191 |
| 6.88%, 1/15/29 | | 54,000 | 55,150 |
| 5.50%, 3/01/30 | | 180,000 | 175,352 |
| 4.00%, 1/15/32 | | 300,000 | 263,631 |
|
| Tennessee Gas Pipeline Co. LLC, 2.90%, 3/01/30(b) | | 210,000 | 183,597 |
| Texas Eastern Transmission L.P., 3.50%, 1/15/28(b) | | 333,000 | 314,697 |
| Transcontinental Gas Pipe Line Co. LLC, | | | |
| 7.85%, 2/01/26 | | 1,060,000 | 1,136,678 |
| 4.00%, 3/15/28 | | 436,000 | 420,417 |
|
| Viper Energy Partners L.P., 5.38%, 11/01/27(b) | | 75,000 | 72,499 |
| Western Midstream Operating L.P., | | | |
| 3.35%, 2/01/25 | | 50,000 | 47,743 |
| 4.65%, 7/01/26(f) | | 90,000 | 87,498 |
| Williams (The) Cos., Inc., | | | |
| 4.90%, 1/15/45 | | 440,000 | 392,997 |
| 5.10%, 9/15/45 | | 140,000 | 127,996 |
| 4.85%, 3/01/48 | | 110,000 | 97,705 |
| 3.50%, 10/15/51 | | 109,000 | 77,697 |
| | | | 27,196,692 |
| Real Estate Investment Trusts – 0.7% |
| American Tower Corp., | | | |
| 3.95%, 3/15/29 | | 53,000 | 50,158 |
| 3.80%, 8/15/29 | | 204,000 | 191,658 |
| 2.10%, 6/15/30 | | 189,000 | 155,586 |
| 2.70%, 4/15/31 | | 642,000 | 542,614 |
| Crown Castle, Inc., | | | |
| 3.10%, 11/15/29 | | 416,000 | 373,844 |
| 3.30%, 7/01/30 | | 143,000 | 129,074 |
| 2.25%, 1/15/31(f) | | 120,000 | 99,711 |
| 2.10%, 4/01/31 | | 303,000 | 247,438 |
| 2.50%, 7/15/31 | | 125,000 | 104,885 |
| 5.10%, 5/01/33 | | 370,000 | 371,030 |
| Digital Dutch Finco B.V., | | | |
| 1.50%, 3/15/30 | EUR | 130,000 | 112,841 |
| 1.00%, 1/15/32 | EUR | 100,000 | 78,717 |
| Equinix, Inc., | | | |
| 3.20%, 11/18/29 | | 206,000 | 185,024 |
| 2.15%, 7/15/30 | | 185,000 | 152,065 |
| 2.50%, 5/15/31 | | 41,000 | 33,869 |
| 3.90%, 4/15/32 | | 233,000 | 212,303 |
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
| GLP Capital L.P./GLP Financing II, Inc., | | | |
| 4.00%, 1/15/30 | | $439,000 | $ 389,367 |
| 4.00%, 1/15/31 | | 200,000 | 174,997 |
| 3.25%, 1/15/32 | | 288,000 | 236,163 |
| National Retail Properties, Inc., | | | |
| 3.10%, 4/15/50 | | 42,000 | 26,734 |
| 3.50%, 4/15/51 | | 241,000 | 166,102 |
|
| Prologis L.P., 1.75%, 2/01/31 | | 121,000 | 97,887 |
| Realty Income Corp., 3.25%, 1/15/31 | | 38,000 | 33,778 |
| VICI Properties L.P., | | | |
| 4.75%, 2/15/28 | | 184,000 | 177,448 |
| 4.95%, 2/15/30 | | 283,000 | 270,517 |
| VICI Properties L.P./VICI Note Co., Inc., | | | |
| 4.25%, 12/01/26(b) | | 174,000 | 165,803 |
| 5.75%, 2/01/27(b) | | 245,000 | 243,427 |
| 4.63%, 12/01/29(b) | | 471,000 | 437,469 |
|
| WP Carey, Inc., 2.40%, 2/01/31 | | 119,000 | 97,322 |
| | | | 5,557,831 |
| Retail - Consumer Staples – 0.1% |
| Costco Wholesale Corp., | | | |
| 1.38%, 6/20/27 | | 190,000 | 171,548 |
| 1.75%, 4/20/32 | | 90,000 | 74,377 |
|
| Target Corp., 2.25%, 4/15/25(f) | | 110,000 | 105,869 |
| Walmart, Inc., | | | |
| 1.50%, 9/22/28 | | 60,000 | 53,070 |
| 2.38%, 9/24/29 | | 20,000 | 18,182 |
| 1.80%, 9/22/31 | | 40,000 | 33,945 |
| | | | 456,991 |
| Retail - Discretionary – 0.1% |
| Home Depot (The), Inc., | | | |
| 2.50%, 4/15/27 | | 60,000 | 56,828 |
| 3.90%, 12/06/28 | | 10,000 | 9,920 |
| 2.70%, 4/15/30 | | 80,000 | 72,910 |
| 3.30%, 4/15/40 | | 160,000 | 133,360 |
| 3.90%, 6/15/47 | | 20,000 | 17,234 |
| 3.35%, 4/15/50 | | 210,000 | 163,509 |
| Lowe's Cos., Inc., | | | |
| 1.70%, 9/15/28 | | 180,000 | 157,298 |
| 4.50%, 4/15/30 | | 315,000 | 311,771 |
| 2.80%, 9/15/41 | | 121,000 | 85,735 |
| | | | 1,008,565 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Semiconductors – 0.6% |
| Applied Materials, Inc., 1.75%, 6/01/30 | | $ 210,000 | $ 177,095 |
| Broadcom, Inc., | | | |
| 4.15%, 11/15/30 | | 53,000 | 49,295 |
| 3.42%, 4/15/33(b) | | 267,000 | 224,718 |
| 3.47%, 4/15/34(b) | | 577,000 | 476,698 |
| 3.14%, 11/15/35(b) | | 690,000 | 534,171 |
| 4.93%, 5/15/37(b) | | 303,000 | 276,576 |
| Intel Corp., | | | |
| 3.70%, 7/29/25 | | 20,000 | 19,689 |
| 4.88%, 2/10/28 | | 222,000 | 225,902 |
| 1.60%, 8/12/28 | | 100,000 | 87,556 |
| 5.13%, 2/10/30 | | 120,000 | 122,907 |
| 5.20%, 2/10/33 | | 90,000 | 91,901 |
| 4.75%, 3/25/50 | | 80,000 | 72,738 |
| 3.05%, 8/12/51 | | 80,000 | 54,412 |
| 5.70%, 2/10/53 | | 144,000 | 147,287 |
| KLA Corp., | | | |
| 4.65%, 7/15/32 | | 70,000 | 71,084 |
| 3.30%, 3/01/50 | | 355,000 | 270,924 |
| 5.25%, 7/15/62 | | 148,000 | 150,466 |
|
| Lam Research Corp., 2.88%, 6/15/50 | | 43,000 | 30,368 |
| Micron Technology, Inc., | | | |
| 5.88%, 2/09/33 | | 160,000 | 161,321 |
| 5.88%, 9/15/33 | | 40,000 | 39,973 |
| NVIDIA Corp., | | | |
| 3.50%, 4/01/40 | | 250,000 | 215,289 |
| 3.50%, 4/01/50 | | 290,000 | 236,736 |
| 3.70%, 4/01/60 | | 150,000 | 121,085 |
| QUALCOMM, Inc., | | | |
| 5.40%, 5/20/33(f) | | 199,000 | 214,025 |
| 4.50%, 5/20/52(f) | | 111,000 | 103,180 |
| Texas Instruments, Inc., | | | |
| 2.90%, 11/03/27 | | 220,000 | 209,689 |
| 1.75%, 5/04/30 | | 70,000 | 59,487 |
| 3.88%, 3/15/39 | | 100,000 | 91,793 |
| | | | 4,536,365 |
| Software – 0.6% |
| Adobe, Inc., 2.30%, 2/01/30 | | 200,000 | 177,699 |
| Autodesk, Inc., 2.40%, 12/15/31 | | 27,000 | 22,645 |
| Microsoft Corp., | | | |
| 3.30%, 2/06/27(f) | | 1,120,000 | 1,100,282 |
| 2.53%, 6/01/50 | | 200,000 | 141,901 |
| 2.92%, 3/17/52 | | 70,000 | 53,642 |
| Oracle Corp., | | | |
| 1.65%, 3/25/26(f) | | 310,000 | 284,654 |
| 2.95%, 4/01/30 | | 30,000 | 26,576 |
| 4.65%, 5/06/30 | | 120,000 | 117,637 |
| | | Par (a) | Value |
| Software (Continued) |
| Oracle Corp., | | | |
| 2.88%, 3/25/31 | | $430,000 | $ 370,580 |
| 4.30%, 7/08/34 | | 189,000 | 174,275 |
| 3.85%, 7/15/36 | | 79,000 | 67,513 |
| 3.80%, 11/15/37 | | 210,000 | 175,694 |
| 3.60%, 4/01/40 | | 101,000 | 78,429 |
| 5.38%, 7/15/40 | | 208,000 | 200,383 |
| 3.65%, 3/25/41 | | 256,000 | 198,534 |
| 4.13%, 5/15/45 | | 106,000 | 83,522 |
| 4.00%, 7/15/46 | | 414,000 | 317,780 |
| 4.00%, 11/15/47 | | 60,000 | 46,085 |
| 3.60%, 4/01/50 | | 539,000 | 383,235 |
| 3.95%, 3/25/51 | | 260,000 | 196,303 |
| 5.55%, 2/06/53 | | 90,000 | 86,466 |
| Salesforce, Inc., | | | |
| 3.70%, 4/11/28 | | 190,000 | 188,526 |
| 3.05%, 7/15/61 | | 65,000 | 44,650 |
|
| VMware, Inc., 2.20%, 8/15/31 | | 324,000 | 256,865 |
| | | | 4,793,876 |
| Specialty Finance – 0.3% |
| Air Lease Corp., | | | |
| 3.38%, 7/01/25 | | 70,000 | 67,078 |
| 5.30%, 2/01/28 | | 160,000 | 158,314 |
| American Express Co., | | | |
| 3.38%, 5/03/24 | | 170,000 | 166,832 |
| 2.50%, 7/30/24(f) | | 410,000 | 397,463 |
| 4.20%, 11/06/25 | | 70,000 | 69,336 |
| 4.05%, 5/03/29 | | 210,000 | 205,637 |
| Capital One Financial Corp., | | | |
| (SOFR + 1.79%), 3.27%, 3/01/30(h) | | 37,000 | 32,087 |
| (SOFR + 1.34%), 2.36%, 7/29/32(h) | | 20,000 | 14,438 |
| (SOFR + 2.60%), 5.82%, 2/01/34(h) | | 425,000 | 414,107 |
| Penske Truck Leasing Co. L.P./PTL Finance Corp., | | | |
| 5.88%, 11/15/27(b) | | 238,000 | 242,226 |
| 5.70%, 2/01/28(b)(f) | | 164,000 | 165,935 |
|
| USAA Capital Corp., 2.13%, 5/01/30(b) | | 150,000 | 126,223 |
| | | | 2,059,676 |
| Steel – 0.0%(c) |
| Nucor Corp., 3.95%, 5/01/28 | | 32,000 | 31,180 |
| Technology Hardware – 0.3% |
| Apple, Inc., | | | |
| 1.13%, 5/11/25 | | 260,000 | 244,498 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Technology Hardware (Continued) |
| Apple, Inc., | | | |
| 2.45%, 8/04/26 | | $100,000 | $ 95,416 |
| 2.90%, 9/12/27 | | 290,000 | 278,605 |
| 2.80%, 2/08/61 | | 70,000 | 47,521 |
| 2.85%, 8/05/61 | | 101,000 | 69,569 |
|
| Dell International LLC/EMC Corp., 3.45%, 12/15/51(b)(f) | | 85,000 | 55,873 |
| Hewlett Packard Enterprise Co., 5.90%, 10/01/24 | | 350,000 | 353,725 |
| Motorola Solutions, Inc., | | | |
| 2.75%, 5/24/31 | | 812,000 | 675,850 |
| 5.50%, 9/01/44 | | 311,000 | 300,693 |
| | | | 2,121,750 |
| Technology Services – 0.3% |
| FactSet Research Systems, Inc., 3.45%, 3/01/32 | | 187,000 | 164,597 |
| Global Payments, Inc., | | | |
| 1.20%, 3/01/26 | | 315,000 | 282,427 |
| 4.95%, 8/15/27(f) | | 311,000 | 308,916 |
| 3.20%, 8/15/29 | | 283,000 | 250,298 |
| 2.90%, 5/15/30 | | 299,000 | 256,252 |
|
| International Business Machines Corp., 3.00%, 5/15/24 | | 410,000 | 401,641 |
| Mastercard, Inc., | | | |
| 3.35%, 3/26/30 | | 120,000 | 114,241 |
| 3.85%, 3/26/50 | | 280,000 | 248,032 |
| Moody's Corp., | | | |
| 4.88%, 12/17/48 | | 41,000 | 38,600 |
| 3.10%, 11/29/61 | | 167,000 | 111,211 |
| PayPal Holdings, Inc., | | | |
| 1.65%, 6/01/25 | | 90,000 | 84,799 |
| 2.30%, 6/01/30 | | 80,000 | 68,848 |
| 4.40%, 6/01/32(f) | | 70,000 | 68,700 |
| Visa, Inc., | | | |
| 3.15%, 12/14/25 | | 100,000 | 97,058 |
| 4.30%, 12/14/45 | | 170,000 | 164,998 |
| | | | 2,660,618 |
| Telecommunications – 1.1% |
| AT&T, Inc., | | | |
| 3.80%, 2/15/27 | | 170,000 | 165,337 |
| 2.30%, 6/01/27 | | 170,000 | 155,920 |
| 1.65%, 2/01/28 | | 340,000 | 298,233 |
| 4.30%, 2/15/30(b) | | 105,000 | 101,903 |
| 2.25%, 2/01/32 | | 30,000 | 24,510 |
| 2.55%, 12/01/33 | | 320,000 | 257,622 |
| 4.50%, 5/15/35 | | 76,000 | 71,554 |
| 5.35%, 9/01/40 | | 50,000 | 49,435 |
| | | Par (a) | Value |
| Telecommunications (Continued) |
| AT&T, Inc., | | | |
| 3.50%, 6/01/41 | | $151,000 | $ 118,971 |
| 5.55%, 8/15/41 | | 40,000 | 40,295 |
| 4.80%, 6/15/44(f) | | 22,000 | 20,073 |
| 3.50%, 9/15/53 | | 233,000 | 167,114 |
| 3.55%, 9/15/55 | | 386,000 | 273,943 |
| 3.80%, 12/01/57 | | 268,000 | 196,861 |
| 3.65%, 9/15/59 | | 305,000 | 215,809 |
| 3.50%, 2/01/61(f) | | 113,000 | 79,632 |
|
| Sprint LLC, 7.13%, 6/15/24 | | 439,000 | 446,187 |
| T-Mobile USA, Inc., | | | |
| 3.50%, 4/15/25 | | 230,000 | 223,775 |
| 3.75%, 4/15/27 | | 20,000 | 19,261 |
| 3.88%, 4/15/30 | | 602,000 | 566,814 |
| 2.55%, 2/15/31 | | 217,000 | 184,608 |
| 2.25%, 11/15/31 | | 400,000 | 327,639 |
| 3.00%, 2/15/41 | | 190,000 | 141,246 |
| 3.30%, 2/15/51 | | 70,000 | 49,955 |
| Verizon Communications, Inc., | | | |
| 2.63%, 8/15/26 | | 10,000 | 9,461 |
| 4.13%, 3/16/27 | | 60,000 | 59,438 |
| 3.00%, 3/22/27 | | 30,000 | 28,616 |
| 2.10%, 3/22/28 | | 360,000 | 321,829 |
| 4.33%, 9/21/28 | | 250,000 | 247,351 |
| 3.88%, 2/08/29 | | 30,000 | 28,967 |
| 3.15%, 3/22/30 | | 90,000 | 81,411 |
| 1.50%, 9/18/30 | | 378,000 | 305,821 |
| 1.75%, 1/20/31 | | 328,000 | 264,111 |
| 2.55%, 3/21/31 | | 552,000 | 469,967 |
| 2.36%, 3/15/32 | | 932,000 | 765,115 |
| 4.50%, 8/10/33 | | 460,000 | 444,413 |
| 4.40%, 11/01/34 | | 375,000 | 355,840 |
| 2.65%, 11/20/40 | | 927,000 | 657,884 |
| 3.40%, 3/22/41 | | 50,000 | 39,355 |
| 3.85%, 11/01/42 | | 60,000 | 49,716 |
| 4.13%, 8/15/46 | | 70,000 | 59,711 |
| 4.86%, 8/21/46 | | 40,000 | 37,842 |
| 4.00%, 3/22/50 | | 190,000 | 156,748 |
| 2.88%, 11/20/50 | | 400,000 | 265,332 |
| 3.55%, 3/22/51 | | 330,000 | 250,317 |
| 2.99%, 10/30/56 | | 129,000 | 83,409 |
| | | | 9,179,351 |
| Tobacco & Cannabis – 0.3% |
| Altria Group, Inc., | | | |
| 2.35%, 5/06/25 | | 30,000 | 28,594 |
| 4.40%, 2/14/26 | | 172,000 | 170,740 |
| 4.80%, 2/14/29 | | 80,000 | 79,438 |
| 3.13%, 6/15/31 | EUR | 205,000 | 194,967 |
| 2.45%, 2/04/32 | | 180,000 | 143,174 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Tobacco & Cannabis (Continued) |
| Altria Group, Inc., | | | |
| 5.80%, 2/14/39 | | $ 70,000 | $ 69,114 |
| 3.40%, 2/04/41 | | 513,000 | 362,721 |
| 5.95%, 2/14/49 | | 255,000 | 240,673 |
| 6.20%, 2/14/59 | | 24,000 | 23,526 |
| Philip Morris International, Inc., | | | |
| 5.13%, 11/17/27 | | 333,000 | 340,991 |
| 4.88%, 2/15/28 | | 393,000 | 396,462 |
| 2.10%, 5/01/30 | | 70,000 | 58,822 |
| 1.45%, 8/01/39 | EUR | 200,000 | 129,265 |
| 4.50%, 3/20/42 | | 60,000 | 52,488 |
| | | | 2,290,975 |
| Total Oil & Gas Services & Equipment – 0.0%(c) |
| Halliburton Co., 3.80%, 11/15/25 | | 3,000 | 2,945 |
| Transportation & Logistics – 0.4% |
| American Airlines Pass Through Trust, | | | |
| Series 2015-2, Class AA, 3.60%, 9/22/27 | | 12,031 | 11,096 |
| Series 2016-1, Class AA, 3.58%, 1/15/28 | | 63,539 | 58,586 |
| Series 2016-2, Class AA, 3.20%, 6/15/28 | | 21,585 | 19,711 |
| Series 2017-1, Class AA, 3.65%, 2/15/29(f) | | 7,810 | 7,151 |
| Series 2019-1, Class AA, 3.15%, 2/15/32 | | 62,796 | 54,345 |
| Burlington Northern Santa Fe LLC, | | | |
| 4.55%, 9/01/44 | | 100,000 | 94,706 |
| 3.30%, 9/15/51 | | 189,000 | 144,420 |
| CSX Corp., | | | |
| 3.35%, 9/15/49 | | 118,000 | 88,970 |
| 4.50%, 11/15/52 | | 146,000 | 134,330 |
| Delta Air Lines Pass Through Trust, | | | |
| Series 2019-1, Class AA, 3.20%, 10/25/25 | | 137,000 | 133,595 |
| Series 2015-1, Class AA, 3.63%, 7/30/27 | | 50,503 | 46,633 |
| Delta Air Lines, Inc./SkyMiles IP Ltd., | | | |
| 4.50%, 10/20/25(b) | | 183,320 | 179,775 |
| 4.75%, 10/20/28(b) | | 260,000 | 252,487 |
| Norfolk Southern Corp., | | | |
| 3.05%, 5/15/50 | | 210,000 | 147,295 |
| 4.55%, 6/01/53 | | 69,000 | 62,562 |
| 3.16%, 5/15/55 | | 191,000 | 130,764 |
| | | Par (a) | Value |
| Transportation & Logistics (Continued) |
|
| Ryder System, Inc., 5.65%, 3/01/28 | | $195,000 | $ 199,853 |
| Union Pacific Corp., | | | |
| 2.15%, 2/05/27 | | 120,000 | 111,579 |
| 2.40%, 2/05/30 | | 150,000 | 133,062 |
| 3.95%, 8/15/59 | | 41,000 | 33,874 |
| 3.84%, 3/20/60 | | 328,000 | 266,848 |
| 3.75%, 2/05/70 | | 238,000 | 183,872 |
| United Airlines Pass Through Trust, | | | |
| Series 2020-1, Class B, 4.88%, 1/15/26(f) | | 44,525 | 43,164 |
| Series 2014-1, Class A, 4.00%, 4/11/26 | | 78,653 | 74,666 |
| Series 2016-2, Class B, 3.65%, 4/07/27 | | 2,116 | 1,966 |
| Series 2020-1, Class A, 5.88%, 10/15/27 | | 304,003 | 303,944 |
| Series 2015-1, Class AA, 3.45%, 12/01/27 | | 686 | 630 |
| Series 2019-2, Class B, 3.50%, 5/01/28 | | 39,954 | 36,234 |
| Series 2016-1, Class AA, 3.10%, 7/07/28 | | 2,129 | 1,937 |
| Series 2016-2, Class AA, 2.88%, 10/07/28 | | 15,604 | 13,893 |
| Series 2018-1, Class AA, 3.50%, 3/01/30 | | 14,118 | 12,737 |
| Series 2019-2, Class AA, 2.70%, 5/01/32 | | 51,540 | 44,383 |
| | | | 3,029,068 |
Total Corporate Bonds
(Cost $160,919,954) | 148,928,635 |
|
| Foreign Issuer Bonds – 6.0% |
| Argentina – 0.0%(c) |
| YPF S.A., | | | |
| 7.00%, 9/30/33 | | 15,526 | 10,203 |
| 7.00%, 12/15/47(b) | | 18,000 | 11,046 |
| | | | 21,249 |
| Australia – 0.1% |
| BHP Billiton Finance USA Ltd., 5.00%, 9/30/43 | | 160,000 | 162,983 |
| Glencore Funding LLC, | | | |
| 4.00%, 3/27/27(b) | | 160,000 | 154,755 |
| 3.88%, 10/27/27(b) | | 70,000 | 66,458 |
| | | | 384,196 |
| Belgium – 0.2% |
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., | | | |
| 3.65%, 2/01/26 | | 300,000 | 294,892 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Belgium (Continued) |
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., | | | |
| 4.70%, 2/01/36 | | $ 89,000 | $ 89,541 |
| 4.90%, 2/01/46 | | 200,000 | 198,191 |
| Anheuser-Busch InBev Worldwide, Inc., | | | |
| 4.00%, 4/13/28 | | 140,000 | 138,715 |
| 4.75%, 1/23/29 | | 377,000 | 385,537 |
| 3.50%, 6/01/30 | | 50,000 | 47,607 |
| 4.35%, 6/01/40 | | 130,000 | 123,507 |
| 4.60%, 4/15/48 | | 22,000 | 21,088 |
| 5.55%, 1/23/49 | | 260,000 | 280,901 |
| | | | 1,579,979 |
| Brazil – 0.3% |
| Atento Luxco 1 S.A., | | | |
| 8.00%, 2/10/26(b) | | 16,000 | 4,096 |
| 8.00%, 2/10/26 | | 5,000 | 1,280 |
|
| Klabin Austria GmbH, 3.20%, 1/12/31(b)(f) | | 200,000 | 159,690 |
| Suzano Austria GmbH, | | | |
| 6.00%, 1/15/29 | | 1,150,000 | 1,142,065 |
| 3.13%, 1/15/32 | | 27,000 | 21,467 |
| Vale Overseas Ltd., | | | |
| 6.25%, 8/10/26(f) | | 560,000 | 579,600 |
| 6.88%, 11/21/36 | | 300,000 | 313,918 |
| | | | 2,222,116 |
| Canada – 0.4% |
| Air Canada Pass Through Trust, Series 2017-1, Class AA, 3.30%, 1/15/30(b) | | 13,853 | 12,355 |
| Bank of Montreal, | | | |
| 1.85%, 5/01/25 | | 210,000 | 197,751 |
| (5Y USD Swap Rate + 1.43%), 3.80%, 12/15/32(h) | | 40,000 | 36,182 |
| Bank of Nova Scotia (The), | | | |
| 3.45%, 4/11/25 | | 430,000 | 417,205 |
| 1.30%, 6/11/25(f) | | 120,000 | 110,819 |
| (5Y US Treasury CMT + 2.05%), 4.59%, 5/04/37(h) | | 140,000 | 124,110 |
|
| Barrick North America Finance LLC, 5.75%, 5/01/43 | | 190,000 | 200,838 |
| Canadian Pacific Railway Co., | | | |
| 2.45%, 12/02/31 | | 670,000 | 597,772 |
| 3.00%, 12/02/41(f) | | 150,000 | 124,592 |
|
| Cenovus Energy, Inc., 6.75%, 11/15/39 | | 168,000 | 182,420 |
| | | Par (a) | Value |
| Canada (Continued) |
|
| Enbridge, Inc., 5.70%, 3/08/33 | | $ 219,000 | $ 227,429 |
| Rogers Communications, Inc., | | | |
| 3.80%, 3/15/32(b) | | 334,000 | 300,746 |
| 4.55%, 3/15/52(b) | | 41,000 | 33,619 |
| Royal Bank of Canada, | | | |
| 1.15%, 6/10/25 | | 100,000 | 92,793 |
| 3.88%, 5/04/32(f) | | 340,000 | 318,334 |
| Toronto-Dominion Bank (The), | | | |
| 1.15%, 6/12/25 | | 110,000 | 101,638 |
| 4.46%, 6/08/32 | | 110,000 | 106,117 |
| | | | 3,184,720 |
| Chile – 0.1% |
| Chile Government International Bond, 3.10%, 1/22/61(f) | | 310,000 | 207,012 |
| Corp. Nacional del Cobre de Chile, | | | |
| 3.63%, 8/01/27(b) | | 330,000 | 314,796 |
| 3.70%, 1/30/50(b) | | 660,000 | 496,353 |
|
| Kenbourne Invest S.A., 6.88%, 11/26/24(b) | | 200,000 | 132,000 |
| | | | 1,150,161 |
| China – 0.1% |
| NXP B.V./NXP Funding LLC/NXP USA, Inc., | | | |
| 2.70%, 5/01/25 | | 80,000 | 76,135 |
| 4.30%, 6/18/29 | | 272,000 | 261,063 |
| Prosus N.V., | | | |
| 3.68%, 1/21/30(b) | | 600,000 | 510,990 |
| 4.03%, 8/03/50(b) | | 380,000 | 241,927 |
| | | | 1,090,115 |
| Colombia – 0.4% |
| Avianca Midco 2 PLC, 9.00%, 12/01/28(b) | | 7,000 | 5,814 |
| Colombia Government International Bond, | | | |
| 3.25%, 4/22/32 | | 620,000 | 447,521 |
| 5.00%, 6/15/45 | | 810,000 | 543,385 |
| 5.20%, 5/15/49 | | 460,000 | 309,385 |
| Colombian TES, | | | |
| 7.50%, 8/26/26 | COP | 412,000,000 | 78,702 |
| 5.75%, 11/03/27 | COP | 258,000,000 | 44,377 |
| 7.00%, 3/26/31 | COP | 78,500,000 | 12,813 |
| 7.25%, 10/18/34 | COP | 137,000,000 | 20,782 |
| Ecopetrol S.A., | | | |
| 4.13%, 1/16/25(f) | | 30,000 | 28,777 |
| 6.88%, 4/29/30 | | 241,000 | 217,739 |
| 5.88%, 5/28/45 | | 1,220,000 | 796,477 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Colombia (Continued) |
|
| Grupo Aval Ltd., 4.38%, 2/04/30(b) | | $ 200,000 | $ 153,000 |
| Promigas S.A. ESP/Gases del Pacifico SAC, 3.75%, 10/16/29 | | 200,000 | 162,000 |
| | | | 2,820,772 |
| Czech Republic – 0.0%(c) |
| Czech Republic Government Bond, | | | |
| 0.95%, 5/15/30 | CZK | 360,000 | 13,168 |
| 5.00%, 9/30/30 | CZK | 1,050,000 | 50,635 |
| 4.20%, 12/04/36 | CZK | 350,000 | 15,763 |
| | | | 79,566 |
| Denmark – 0.1% |
| Danske Bank A/S, | | | |
| (1Y US Treasury CMT + 1.00%), 1.23%, 6/22/24(b)(h) | | 200,000 | 198,405 |
| (1Y US Treasury CMT + 0.55%), 0.98%, 9/10/25(b)(h) | | 220,000 | 205,176 |
| | | | 403,581 |
| France – 0.3% |
| BNP Paribas S.A., | | | |
| (3M USD LIBOR + 2.24%), 4.71%, 1/10/25(b)(h) | | 200,000 | 198,257 |
| (SOFR + 2.07%), 2.22%, 6/09/26(b)(h) | | 600,000 | 559,435 |
| (1Y US Treasury CMT + 1.45%), 5.13%, 1/13/29(b)(h) | | 500,000 | 502,415 |
| (3M USD LIBOR + 2.57%), 5.20%, 1/10/30(b)(h) | | 300,000 | 296,689 |
| (SOFR + 1.51%), 3.05%, 1/13/31(b)(h) | | 200,000 | 172,969 |
|
| Credit Agricole S.A., (SOFR + 1.68%), 1.91%, 6/16/26(b)(h) | | 250,000 | 231,419 |
| Danone S.A., 2.95%, 11/02/26(b) | | 200,000 | 191,732 |
| | | | 2,152,916 |
| Germany – 0.0%(c) |
| Deutsche Bank A.G., (SOFR + 1.13%), 1.45%, 4/01/25(h) | | 372,000 | 350,676 |
| India – 0.1% |
| Export-Import Bank of India, 3.38%, 8/05/26(b) | | 200,000 | 189,598 |
| | | Par (a) | Value |
| India (Continued) |
| Reliance Industries Ltd., | | | |
| 2.88%, 1/12/32(b) | | $ 250,000 | $ 209,344 |
| 3.63%, 1/12/52(b)(f) | | 450,000 | 321,933 |
| | | | 720,875 |
| Indonesia – 0.2% |
| Indonesia Government International Bond, | | | |
| 2.85%, 2/14/30 | | 200,000 | 182,647 |
| 3.05%, 3/12/51 | | 222,000 | 165,268 |
| Indonesia Treasury Bond, | | | |
| 6.38%, 8/15/28 | IDR | 529,000,000 | 36,262 |
| 9.00%, 3/15/29 | IDR | 250,000,000 | 19,190 |
| 8.25%, 5/15/29 | IDR | 383,000,000 | 28,491 |
| 7.50%, 5/15/38 | IDR | 623,000,000 | 44,770 |
|
| Pertamina Persero PT, 6.00%, 5/03/42(b) | | 280,000 | 277,768 |
| Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 5.45%, 5/21/28(b) | | 770,000 | 786,617 |
| | | | 1,541,013 |
| Ireland – 0.1% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, | | | |
| 2.45%, 10/29/26 | | 400,000 | 358,658 |
| 3.00%, 10/29/28 | | 400,000 | 348,247 |
| 3.30%, 1/30/32 | | 150,000 | 122,861 |
| | | | 829,766 |
| Israel – 0.1% |
| Israel Government International Bond, | | | |
| 2.75%, 7/03/30 | | 500,000 | 450,758 |
| 4.50%, 4/03/20(i) | | 220,000 | 183,604 |
| | | | 634,362 |
| Italy – 0.0%(c) |
| Italy Buoni Poliennali Del Tesoro, 4.35%, 11/01/33 | EUR | 100,000 | 111,441 |
| Japan – 0.1% |
| Mitsubishi UFJ Financial Group, Inc., (1Y US Treasury CMT + 1.13%), 3.84%, 4/17/26(h) | | 200,000 | 193,545 |
| Takeda Pharmaceutical Co. Ltd., | | | |
| 5.00%, 11/26/28 | | 200,000 | 203,654 |
| 2.00%, 7/09/40 | EUR | 110,000 | 89,028 |
| | | | 486,227 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Kazakhstan – 0.1% |
| Kazakhstan Government International Bond, 4.88%, 10/14/44 | | $ 600,000 | $ 551,970 |
| KazMunayGas National Co. JSC, 6.38%, 10/24/48(b) | | 420,000 | 353,405 |
| | | | 905,375 |
| Kuwait – 0.1% |
| MEGlobal B.V., | | | |
| 4.25%, 11/03/26(b) | | 210,000 | 204,637 |
| 2.63%, 4/28/28(b) | | 450,000 | 397,804 |
| | | | 602,441 |
| Macau – 0.3% |
| Sands China Ltd., | | | |
| 5.63%, 8/08/25 | | 300,000 | 293,864 |
| 4.30%, 1/08/26(f) | | 1,000,000 | 939,759 |
| 4.88%, 6/18/30(f) | | 900,000 | 818,409 |
| | | | 2,052,032 |
| Mexico – 0.7% |
| Banco Mercantil del Norte S.A., (10Y US Treasury CMT + 5.03%), 6.63%, 1/24/32(h)(j) | | 200,000 | 161,900 |
| Comision Federal de Electricidad, 3.88%, 7/26/33(b) | | 720,000 | 555,552 |
| Grupo Posadas S.A.B. de C.V., (Step to 7.00% on 12/30/23), 5.00%, 12/30/27(k)(l) | | 13,234 | 10,835 |
| Mexican Bonos, | | | |
| 7.50%, 6/03/27 | MXN | 1,500,000 | 78,970 |
| 8.50%, 5/31/29 | MXN | 2,520,000 | 138,064 |
| 8.50%, 11/18/38 | MXN | 1,983,200 | 104,736 |
|
| Mexican Udibonos, 4.50%, 12/04/25 | MXN | 170,000 | 71,441 |
| Mexico Cetes, | | | |
| 0.00%, 11/28/24(m) | MXN | 51,700,000 | 242,066 |
| 0.00%, 1/23/25(m) | MXN | 18,655,000 | 85,941 |
| Mexico Government International Bond, | | | |
| 2.66%, 5/24/31(f) | | 368,000 | 310,653 |
| 4.75%, 3/08/44 | | 930,000 | 808,782 |
| 4.50%, 1/31/50 | | 420,000 | 346,500 |
| 4.40%, 2/12/52 | | 1,150,000 | 917,352 |
| Orbia Advance Corp. S.A.B. de C.V., | | | |
| 1.88%, 5/11/26(b) | | 280,000 | 253,498 |
| 2.88%, 5/11/31(b) | | 270,000 | 219,375 |
| Petroleos Mexicanos, | | | |
| 7.19%, 9/12/24 | MXN | 403,000 | 20,817 |
| 6.88%, 8/04/26 | | 104,000 | 98,374 |
| | | Par (a) | Value |
| Mexico (Continued) |
| Petroleos Mexicanos, | | | |
| 8.75%, 6/02/29(f) | | $ 38,000 | $ 34,905 |
| 6.70%, 2/16/32 | | 15,000 | 11,547 |
| 5.63%, 1/23/46 | | 620,000 | 348,897 |
| 6.35%, 2/12/48 | | 28,000 | 16,623 |
|
| Southern Copper Corp., 5.25%, 11/08/42 | | 770,000 | 751,923 |
| | | | 5,588,751 |
| Morocco – 0.0%(c) |
| OCP S.A., 4.50%, 10/22/25(b) | | 200,000 | 194,131 |
| Netherlands – 0.2% |
| Cooperatieve Rabobank U.A., | | | |
| 4.38%, 8/04/25 | | 440,000 | 425,139 |
| (1Y US Treasury CMT + 1.22%), 3.65%, 4/06/28(b)(h) | | 250,000 | 235,732 |
| (1Y US Treasury CMT + 1.42%), 3.76%, 4/06/33(b)(h) | | 250,000 | 223,403 |
| Shell International Finance B.V., | | | |
| 2.88%, 5/10/26 | | 140,000 | 135,120 |
| 2.38%, 11/07/29 | | 200,000 | 178,822 |
| 2.75%, 4/06/30 | | 150,000 | 137,107 |
| 4.38%, 5/11/45 | | 150,000 | 139,462 |
| 4.00%, 5/10/46 | | 80,000 | 70,030 |
| 3.25%, 4/06/50(f) | | 340,000 | 260,429 |
| | | | 1,805,244 |
| Panama – 0.1% |
| Panama Government International Bond, | | | |
| 3.88%, 3/17/28 | | 200,000 | 192,405 |
| 6.70%, 1/26/36 | | 690,000 | 740,790 |
| 4.50%, 4/01/56 | | 247,000 | 186,935 |
| | | | 1,120,130 |
| Peru – 0.1% |
| Peruvian Government International Bond, | | | |
| 4.13%, 8/25/27(f) | | 137,000 | 134,531 |
| 5.63%, 11/18/50 | | 110,000 | 113,616 |
| 3.55%, 3/10/51(f) | | 220,000 | 165,838 |
| 3.60%, 1/15/72 | | 120,000 | 82,321 |
| Petroleos del Peru S.A., | | | |
| 4.75%, 6/19/32(b) | | 700,000 | 521,966 |
| 5.63%, 6/19/47(b) | | 200,000 | 126,877 |
| | | | 1,145,149 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Philippines – 0.0%(c) |
| Philippine Government International Bond, 3.20%, 7/06/46 | | $ 267,000 | $ 201,132 |
| Poland – 0.0%(c) |
| Republic of Poland Government International Bond, 4.88%, 10/04/33 | | 94,000 | 95,400 |
| Romania – 0.0%(c) |
| Romanian Government International Bond, 2.13%, 3/07/28 | EUR | 23,000 | 21,818 |
| Russia – 0.0%(c) |
| Lukoil Capital DAC, 3.60%, 10/26/31(b)(n) | | 470,000 | 339,760 |
| Russian Federal Bond - OFZ, 6.10%, 7/18/35(o) | RUB | 6,245,000 | 4,685 |
| | | | 344,445 |
| Saudi Arabia – 0.0%(c) |
| Gaci First Investment Co., 5.00%, 10/13/27 | | 350,000 | 358,508 |
| South Africa – 0.1% |
| Anglo American Capital PLC, | | | |
| 4.00%, 9/11/27(b) | | 400,000 | 381,029 |
| 4.50%, 3/15/28(b) | | 202,000 | 194,724 |
| 2.63%, 9/10/30(b) | | 240,000 | 201,182 |
| 5.50%, 5/02/33(b) | | 220,000 | 219,719 |
|
| Republic of South Africa Government Bond, 8.00%, 1/31/30 | ZAR | 2,100,000 | 102,903 |
| | | | 1,099,557 |
| Spain – 0.1% |
| Banco Santander S.A., 2.75%, 5/28/25 | | 800,000 | 753,895 |
| Telefonica Emisiones S.A., 4.10%, 3/08/27 | | 150,000 | 145,276 |
| | | | 899,171 |
| Switzerland – 0.7% |
| Credit Suisse A.G., | | | |
| 4.75%, 8/09/24 | | 357,000 | 344,951 |
| 7.95%, 1/09/25 | | 870,000 | 885,451 |
| 3.70%, 2/21/25 | | 604,000 | 572,109 |
| 2.95%, 4/09/25 | | 250,000 | 232,751 |
| 5.00%, 7/09/27 | | 250,000 | 241,019 |
| 7.50%, 2/15/28 | | 480,000 | 511,200 |
| Credit Suisse Group A.G., | | | |
| (SOFR + 1.56%), 2.59%, 9/11/25(b)(h) | | 250,000 | 232,513 |
| 4.28%, 1/09/28(b) | | 381,000 | 344,329 |
| | | Par (a) | Value |
| Switzerland (Continued) |
| Credit Suisse Group A.G., | | | |
| (SOFR + 3.73%), 4.19%, 4/01/31(b)(h) | | $ 250,000 | $ 220,718 |
| (SOFR + 1.73%), 3.09%, 5/14/32(b)(h) | | 500,000 | 400,405 |
| (SOFR + 5.02%), 9.02%, 11/15/33(b)(h) | | 650,000 | 771,335 |
| UBS Group A.G., | | | |
| (1Y US Treasury CMT + 1.55%), 4.49%, 5/12/26(b)(h) | | 250,000 | 242,297 |
| 4.25%, 3/23/28(b) | | 770,000 | 728,212 |
| (1Y US Treasury CMT + 1.10%), 2.75%, 2/11/33(b)(h) | | 200,000 | 158,977 |
| | | | 5,886,267 |
| Taiwan – 0.1% |
| TSMC Arizona Corp., 2.50%, 10/25/31 | | 1,020,000 | 874,603 |
| United Arab Emirates – 0.1% |
| DP World Ltd., 5.63%, 9/25/48(b) | | 700,000 | 679,003 |
| United Kingdom – 0.5% |
| BAE Systems PLC, 3.40%, 4/15/30(b) | | 585,000 | 539,683 |
| Barclays PLC, | | | |
| (3M USD LIBOR + 1.90%), 4.97%, 5/16/29(h) | | 200,000 | 193,345 |
| (3M USD LIBOR + 3.05%), 5.09%, 6/20/30(h) | | 200,000 | 187,537 |
| (1Y US Treasury CMT + 3.00%), 5.75%, 8/09/33(h) | | 200,000 | 196,797 |
| (1Y US Treasury CMT + 3.50%), 7.44%, 11/02/33(h) | | 280,000 | 308,360 |
| BAT Capital Corp., | | | |
| 3.56%, 8/15/27 | | 290,000 | 271,395 |
| 2.26%, 3/25/28 | | 100,000 | 86,823 |
| 4.54%, 8/15/47 | | 190,000 | 141,866 |
| 4.76%, 9/06/49 | | 25,000 | 19,101 |
| 5.28%, 4/02/50 | | 38,000 | 31,547 |
| 3.98%, 9/25/50 | | 213,000 | 146,035 |
| HSBC Holdings PLC, | | | |
| (SOFR + 1.93%), 2.10%, 6/04/26(h) | | 200,000 | 186,228 |
| (3M USD LIBOR + 1.55%), 4.04%, 3/13/28(h) | | 240,000 | 228,696 |
| (3M USD LIBOR + 1.53%), 4.58%, 6/19/29(h) | | 200,000 | 192,071 |
| (3M USD LIBOR + 1.61%), 3.97%, 5/22/30(h) | | 350,000 | 322,012 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| United Kingdom (Continued) |
|
| Lloyds Banking Group PLC, 4.38%, 3/22/28 | | $290,000 | $ 280,271 |
| Nationwide Building Society, (3M USD LIBOR + 1.39%), 4.36%, 8/01/24(b)(h) | | 200,000 | 199,089 |
| Natwest Group PLC, | | | |
| (3M USD LIBOR + 1.76%), 4.27%, 3/22/25(h) | | 200,000 | 196,996 |
| (3M USD LIBOR + 1.91%), 5.08%, 1/27/30(h) | | 200,000 | 197,109 |
|
| RELX Capital, Inc., 3.00%, 5/22/30 | | 15,000 | 13,487 |
| Reynolds American, Inc., 5.85%, 8/15/45 | | 108,000 | 97,665 |
| | | | 4,036,113 |
| Uruguay – 0.2% |
| Uruguay Government International Bond, | | | |
| 4.38%, 1/23/31 | | 170,000 | 171,394 |
| 5.75%, 10/28/34 | | 380,000 | 421,875 |
| 5.10%, 6/18/50 | | 617,641 | 631,733 |
| | | | 1,225,002 |
Total Foreign Issuer Bonds
(Cost $54,507,010) | 48,898,003 |
|
| Mortgage-Backed Securities – 32.8% |
| Commercial Mortgage-Backed Securities – 2.0% |
| 245 Park Avenue Trust, Series 2017-245P, Class E, 3.78%, 6/05/37(b)(e) | | 740,000 | 526,714 |
| AREIT Trust, Series 2022-CRE6, Class A, (30D Average SOFR + 1.25%, 1.25% Floor), 6.01%, 1/16/37(b)(d) | | 784,596 | 761,451 |
| BANK, | | | |
| Series 2017-BNK5, Class A4, 3.13%, 6/15/60 | | 330,000 | 306,761 |
| Series 2017-BNK7, Class A5, 3.44%, 9/15/60 | | 100,000 | 93,675 |
| Series 2019-BN19, Class C, 4.16%, 8/15/61(e) | | 280,000 | 207,592 |
| Series 2018-BN13, Class A5, 4.22%, 8/15/61 | | 480,000 | 463,194 |
|
| Bayview Commercial Asset Trust, Series 2006-1A, Class A1, (1M USD LIBOR + 0.41%), 5.43%, 4/25/36(b)(d) | | 256,456 | 230,677 |
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| Benchmark Mortgage Trust, | | | |
| Series 2020-IG1, Class AS, 2.91%, 9/15/43 | | $ 720,000 | $583,663 |
| Series 2018-B2, Class A5, 3.88%, 2/15/51 | | 390,000 | 367,417 |
| Series 2019-B9, Class XA, 1.20%, 3/15/52(e) | | 1,734,310 | 79,441 |
| Series 2021-B25, Class XA, 1.22%, 4/15/54(e) | | 6,716,177 | 420,971 |
| Series 2021-B27, Class XA, 1.38%, 7/15/54(e) | | 5,234,868 | 375,130 |
| Series 2019-B10, Class A4, 3.72%, 3/15/62 | | 500,000 | 464,924 |
|
| BHMS, Series 2018-ATLS, Class A, (1M USD LIBOR + 1.25%, 1.25% Floor), 6.20%, 7/15/35(b)(d) | | 190,000 | 183,095 |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-SOAR, Class A, (1M USD LIBOR + 0.67%, 0.67% Floor), 5.62%, 6/15/38(b)(d) | | 649,453 | 628,304 |
| Series 2021-XL2, Class A, (1M USD LIBOR + 0.69%, 0.69% Floor), 5.64%, 10/15/38(b)(d) | | 982,318 | 946,968 |
|
| BXP Trust, Series 2017-GM, Class D, 3.54%, 6/13/39(b)(e) | | 370,000 | 294,705 |
| CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class D, (1M USD LIBOR + 1.75%, 1.75% Floor), 6.70%, 12/15/37(b)(d) | | 100,000 | 97,740 |
| CFK Trust, Series 2019-FAX, Class D, 4.79%, 1/15/39(b)(e) | | 100,000 | 87,890 |
| Citigroup Commercial Mortgage Trust, | | | |
| Series 2019-SMRT, Class D, 4.90%, 1/10/36(b)(e) | | 500,000 | 486,181 |
| Series 2019-SMRT, Class E, 4.90%, 1/10/36(b)(e) | | 500,000 | 483,304 |
| Series 2014-GC23, Class B, 4.18%, 7/10/47 | | 240,000 | 229,593 |
| Series 2016-P6, Class A4, 3.46%, 12/10/49 | | 88,681 | 83,770 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| Citigroup Commercial Mortgage Trust, | | | |
| Series 2017-C4, Class A4, 3.47%, 10/12/50 | | $ 420,000 | $388,178 |
|
| Commercial Mortgage Trust, Series 2020-CX, Class A, 2.17%, 11/10/46(b) | | 290,000 | 231,204 |
| CSMC, Series 2022-NWPT, Class A, (1M CME Term SOFR + 3.14%, 3.14% Floor), 8.03%, 9/09/24(b)(d) | | 100,000 | 99,782 |
| CSMC OA LLC, Series 2014-USA, Class B, 4.18%, 9/15/37(b) | | 530,000 | 454,642 |
| DBGS Mortgage Trust, Series 2019-1735, Class X, 0.43%, 4/10/37(b)(e) | | 13,945,000 | 185,085 |
| GS Mortgage Securities Corp. Trust, | | | |
| Series 2021-ROSS, Class A, (1M USD LIBOR + 1.15%, 1.15% Floor), 6.10%, 5/15/26(b)(d) | | 700,000 | 631,338 |
| Series 2020-DUNE, Class A, (1M USD LIBOR + 1.10%, 1.10% Floor), 6.05%, 12/15/36(b)(d) | | 960,000 | 947,072 |
|
| GS Mortgage Securities Trust, Series 2017-GS8, Class A4, 3.47%, 11/10/50 | | 240,000 | 223,612 |
| JPMorgan Chase Commercial Mortgage Securities Trust, | | | |
| Series 2020-MKST, Class D, (1M USD LIBOR + 1.75%, 1.50% Floor), 6.70%, 12/15/36(b)(d) | | 710,000 | 526,591 |
| Series 2022-NXSS, Class A, (1M CME Term SOFR + 2.18%, 2.18% Floor), 7.07%, 8/15/39(b)(d) | | 120,000 | 119,699 |
|
| LSTAR Commercial Mortgage Trust, Series 2015-3, Class AS, 3.30%, 4/20/48(b)(e) | | 43,988 | 42,309 |
| Morgan Stanley Capital I Trust, | | | |
| Series 2019-BPR, Class A, (1M USD LIBOR + 1.65%, 1.40% Floor), 6.60%, 5/15/36(b)(d) | | 359,482 | 349,696 |
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| Morgan Stanley Capital I Trust, | | | |
| Series 2019-L2, Class XA, 1.17%, 3/15/52(e) | | $2,501,704 | $ 111,996 |
|
| OPG Trust, Series 2021-PORT, Class A, (1M USD LIBOR + 0.48%, 0.48% Floor), 5.43%, 10/15/36(b)(d) | | 559,308 | 536,030 |
| PFP Ltd., Series 2022-9, Class A, (1M CME Term SOFR + 2.27%, 2.27% Floor), 7.16%, 8/19/35(b)(d) | | 120,000 | 119,087 |
| SFO Commercial Mortgage Trust, Series 2021-555, Class A, (1M USD LIBOR + 1.15%, 1.15% Floor), 6.10%, 5/15/38(b)(d) | | 200,000 | 177,012 |
| SMRT, Series 2022-MINI, Class A, (1M CME Term SOFR + 1.00%, 1.00% Floor), 5.89%, 1/15/39(b)(d) | | 310,000 | 301,244 |
| Soho Trust, Series 2021-SOHO, Class A, 2.79%, 8/10/38(b)(e) | | 846,000 | 624,417 |
| SREIT Trust, Series 2021-MFP, Class A, (1M USD LIBOR + 0.73%, 0.73% Floor), 5.68%, 11/15/38(b)(d) | | 800,000 | 772,216 |
| VASA Trust, Series 2021-VASA, Class A, (1M USD LIBOR + 0.90%, 0.90% Floor), 5.85%, 7/15/39(b)(d) | | 410,000 | 381,243 |
| Wells Fargo Commercial Mortgage Trust, | | | |
| Series 2016-BNK1, Class B, 2.97%, 8/15/49 | | 300,000 | 251,313 |
| Series 2017-C38, Class A5, 3.45%, 7/15/50 | | 315,000 | 294,039 |
| | | | 16,170,965 |
| Federal Home Loan Mortgage Corporation – 6.5% |
| Multiclass Certificates, Series 2020-RR07, Class BX, 2.61%, 10/27/28 | | 4,160,000 | 444,412 |
| Multifamily Structured Pass Through Certificates, | | | |
| Series K736, Class X1, 1.41%, 7/25/26(e) | | 964,998 | 32,338 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Federal Home Loan Mortgage Corporation
(Continued) |
| Multifamily Structured Pass Through Certificates, | | | |
| Series K095, Class XAM, 1.37%, 6/25/29(e) | | $ 500,000 | $ 32,539 |
| Series K-1517, Class X1, 1.44%, 7/25/35(e) | | 234,785 | 25,844 |
| Pool, | | | |
| 3.50%, 1/01/34 - 6/01/52 | | 1,816,077 | 1,706,025 |
| 2.00%, 9/01/35 - 2/01/52 | | 13,573,339 | 11,490,884 |
| 1.50%, 4/01/36 - 2/01/51 | | 1,069,168 | 895,688 |
| 3.00%, 9/01/37 - 8/01/52 | | 7,072,178 | 6,447,651 |
| 4.00%, 1/01/45 - 6/01/52 | | 2,038,362 | 1,983,827 |
| (1Y USD LIBOR + 1.62%, 1.62% Floor, 7.88% Cap), 2.88%, 11/01/47(d) | | 178,545 | 173,092 |
| (1Y USD LIBOR + 1.63%, 1.63% Floor, 8.01% Cap), 3.01%, 11/01/48(d) | | 639,046 | 612,096 |
| 4.50%, 1/01/49 - 11/01/52 | | 2,385,541 | 2,365,736 |
| 5.00%, 11/01/49 - 4/01/53 | | 1,698,631 | 1,695,220 |
| (1Y USD LIBOR + 1.62%, 1.62% Floor, 8.10% Cap), 3.10%, 2/01/50(d) | | 309,347 | 299,194 |
| 2.50%, 7/01/50 - 4/01/52 | | 19,597,142 | 17,137,088 |
| 2.00% - 6.50%, 11/01/50 - 5/01/53(p) | | 1,740,370 | 1,715,982 |
| 6.00%, 11/01/52 - 3/01/53 | | 2,777,465 | 2,872,685 |
| 5.50%, 1/01/53 - 4/01/53 | | 768,617 | 777,300 |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2019-RR01, Class X, 1.53%, 6/25/28 | | 2,500,000 | 159,603 |
| Series 4391, Class MZ, 3.00%, 9/15/44 | | 258,655 | 230,766 |
| Series 5148, Class BI, 2.50%, 1/25/49 | | 826,046 | 103,745 |
| Series 5140, Class NI, 2.50%, 5/25/49 | | 360,350 | 49,300 |
| Series 5148, Class CI, 2.00%, 6/25/49 | | 462,602 | 53,348 |
| Series 4940, Class PI, 4.00%, 7/25/49 | | 32,265 | 4,927 |
| Series 5200, Class KQ, 3.00%, 9/25/49 | | 85,059 | 78,864 |
| Series 4995, Class BI, 4.50%, 6/25/50 | | 37,249 | 7,586 |
| Series 5010, Class IK, 2.50%, 9/25/50 | | 67,867 | 9,804 |
| Series 5010, Class JI, 2.50%, 9/25/50 | | 324,019 | 50,164 |
| | | Par (a) | Value |
Federal Home Loan Mortgage Corporation
(Continued) |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 5013, Class IN, 2.50%, 9/25/50 | | $ 82,235 | $ 12,413 |
| Series 5129, Class IO, 3.00%, 9/25/50 | | 98,056 | 15,382 |
| Series 5014, Class DI, 4.00%, 9/25/50 | | 45,313 | 8,556 |
| Series 5018, Class MI, 2.00%, 10/25/50 | | 255,861 | 34,208 |
| Series 5022, Class KI, 3.00%, 10/25/50 | | 334,364 | 53,271 |
| Series 5018, Class CI, 4.50%, 10/25/50 | | 40,182 | 8,398 |
| Series 5040, Class IB, 2.50%, 11/25/50 | | 72,697 | 10,569 |
| Series 5052, Class KI, 4.00%, 12/25/50 | | 132,907 | 25,856 |
| Series 5059, Class IB, 2.50%, 1/25/51 | | 345,709 | 54,135 |
| Series 5069, Class MI, 2.50%, 2/25/51 | | 78,153 | 11,498 |
| Series 5081, Class PI, 3.00%, 3/25/51 | | 200,947 | 31,874 |
| Series 5127, Class AI, 3.00%, 6/25/51 | | 165,107 | 26,377 |
| Series 5112, Class KI, 3.50%, 6/25/51 | | 430,689 | 75,383 |
| Series 5139, Class IG, 3.00%, 9/25/51 | | 285,587 | 41,609 |
| Series 5145, Class HI, 3.00%, 9/25/51 | | 78,521 | 11,689 |
| Series 5155, Class JI, 3.00%, 10/25/51 | | 77,880 | 11,625 |
| Series 5155, Class NI, 3.00%, 10/25/51 | | 160,900 | 21,424 |
| Series 5152, Class EI, 3.50%, 10/25/51 | | 243,752 | 43,163 |
| Series 5167, Class MI, 3.00%, 11/25/51 | | 84,799 | 11,462 |
| Series 5164, Class IB, 3.00%, 11/25/51 | | 75,423 | 11,373 |
| Series 5230, Class PE, 2.00%, 12/25/51 | | 300,000 | 242,455 |
| Series 5196, Class DI, 3.00%, 2/25/52 | | 275,517 | 42,598 |
| Series 5224, Class HL, 4.00%, 4/25/52 | | 500,000 | 472,940 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Federal Home Loan Mortgage Corporation
(Continued) |
| Strips, | | | |
| Series 334, Class S7, (6.10% - 1M USD LIBOR, 6.10% Cap), 1.15%, 8/15/44(d) | | $ 125,565 | $ 14,207 |
| Series 389, Class C35, 2.00%, 6/15/52 | | 638,802 | 80,681 |
| | | | 52,828,854 |
Federal Home Loan Mortgage Corporation Gold –
0.5% |
| Pool, | | | |
| 3.00%, 10/01/32 - 12/01/32 | | 569,063 | 546,133 |
| 3.50%, 6/01/46 - 4/01/49 | | 2,360,044 | 2,244,509 |
| 4.50%, 4/01/47 - 4/01/49 | | 593,040 | 591,820 |
| 4.00%, 6/01/48 | | 676,870 | 660,236 |
| 5.00%, 11/01/48 | | 30,636 | 30,995 |
| | | | 4,073,693 |
| Federal National Mortgage Association – 10.1% |
| Alternative Credit Enhancement Securities, | | | |
| Series 2019-M6, Class A2, 3.45%, 1/01/29 | | 52,508 | 50,860 |
| Series 2019-M23, Class 3A3, 2.72%, 10/25/31 | | 91,703 | 82,089 |
| Series 2020-M36, Class X1, 1.54%, 9/25/34(e) | | 534,466 | 35,981 |
| Series 2013-M6, Class 1AC, 3.45%, 2/25/43(e) | | 48,641 | 46,679 |
| Interest Strip, | | | |
| Series 409, Class C18, 4.00%, 4/25/42 | | 8,123 | 1,504 |
| Series 427, Class C71, 3.00%, 10/25/49 | | 478,405 | 75,493 |
| Pool, | | | |
| 3.00%, 9/01/28 - 12/01/54 | | 11,630,690 | 10,685,580 |
| 3.16%, 5/01/29 | | 56,841 | 53,715 |
| 2.93%, 6/01/30 | | 18,910 | 17,770 |
| 2.15%, 2/01/32(e) | | 19,912 | 17,027 |
| 3.84%, 7/01/32 | | 100,000 | 97,435 |
| 3.89%, 7/01/32 | | 200,000 | 190,511 |
| 4.06%, 7/01/32 | | 100,000 | 96,523 |
| 3.90%, 10/01/32 | | 400,000 | 391,298 |
| 4.26%, 11/01/32 | | 100,000 | 100,329 |
| 4.37%, 11/01/32 | | 100,000 | 101,199 |
| 4.41%, 12/01/32 | | 100,000 | 101,534 |
| 2.00% - 6.00%, 1/05/33 - 4/01/53(p) | | 2,988,937 | 2,712,184 |
| 4.36%, 2/01/33 | | 100,000 | 101,184 |
| | | Par (a) | Value |
| Federal National Mortgage Association (Continued) |
| Pool, | | | |
| 4.42%, 3/01/33 | | $ 100,000 | $ 101,619 |
| 2.50%, 12/01/33 - 9/01/61 | | 23,968,465 | 21,055,858 |
| 3.50%, 1/01/34 - 6/01/52 | | 6,446,621 | 6,080,295 |
| 2.00%, 9/01/35 - 3/01/52 | | 19,286,255 | 16,294,728 |
| 1.50%, 3/01/36 - 3/01/51 | | 4,995,970 | 4,105,560 |
| 4.50%, 11/01/43 - 1/01/59 | | 4,891,354 | 4,854,705 |
| 4.00%, 7/01/44 - 7/01/52 | | 7,400,723 | 7,165,681 |
| 5.00%, 8/01/48 - 4/01/53 | | 1,998,493 | 2,013,980 |
| 3.50%, 1/01/51(q) | | 2,140,742 | 2,011,493 |
| 6.00%, 11/01/52 - 4/01/53 | | 502,121 | 516,505 |
| 5.50%, 1/01/53 - 4/01/53 | | 703,522 | 712,193 |
| 6.50%, 1/01/53 | | 291,736 | 303,912 |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2013-54, Class BS, (6.15% - 1M USD LIBOR, 6.15% Cap), 1.13%, 6/25/43(d) | | 18,365 | 2,298 |
| Series 2014-6, Class Z, 2.50%, 2/25/44 | | 251,974 | 217,521 |
| Series 2015-65, Class CZ, 3.50%, 9/25/45 | | 261,454 | 218,929 |
| Series 2018-74, Class AB, 3.50%, 10/25/48 | | 175,162 | 166,187 |
| Series 2021-69, Class IJ, 2.50%, 1/25/49 | | 837,948 | 107,958 |
| Series 2021-61, Class KI, 2.50%, 4/25/49 | | 540,024 | 73,986 |
| Series 2020-32, Class PI, 4.00%, 5/25/50 | | 89,109 | 17,189 |
| Series 2020-47, Class GZ, 2.00%, 7/25/50 | | 211,651 | 132,118 |
| Series 2020-56, Class AQ, 2.00%, 8/25/50 | | 700,000 | 548,724 |
| Series 2020-56, Class DI, 2.50%, 8/25/50 | | 157,679 | 24,011 |
| Series 2020-74, Class EI, 2.50%, 10/25/50 | | 77,051 | 11,586 |
| Series 2020-77, Class HI, 4.00%, 11/25/50 | | 281,482 | 53,996 |
| Series 2020-89, Class DI, 2.50%, 12/25/50 | | 229,737 | 33,037 |
| Series 2020-97, Class AI, 2.00%, 1/25/51 | | 445,103 | 59,726 |
| Series 2020-101, Class AI, 3.50%, 1/25/51 | | 141,595 | 25,036 |
| Series 2021-3, Class QI, 2.50%, 2/25/51 | | 726,584 | 108,536 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Federal National Mortgage Association (Continued) |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2021-1, Class IG, 2.50%, 2/25/51 | | $ 171,950 | $ 28,572 |
| Series 2021-31, Class IB, 4.00%, 6/25/51 | | 123,937 | 23,774 |
| Series 2021-50, Class IO, 4.00%, 8/25/51 | | 271,415 | 50,875 |
| Series 2022-57, Class BC, 4.00%, 9/25/52 | | 94,333 | 91,521 |
| | | | 82,171,004 |
| Government National Mortgage Association – 3.6% |
| Pool, | | | |
| 2.00% - 6.00%, 5/01/53(p) | | 7,951,900 | 7,591,120 |
| 2.50%, 5/01/53 (p) | | 1,814,488 | 1,603,093 |
| 3.00%, 5/01/53 (p) | | 3,988,271 | 3,639,297 |
| 3.50%, 5/01/53 (p) | | 3,691,000 | 3,464,638 |
| 4.00%, 5/01/53 (p) | | 2,578,000 | 2,478,606 |
| 4.50%, 5/01/53 (p) | | 4,000,000 | 3,924,375 |
| 5.00%, 5/01/53 (p) | | 1,205,000 | 1,199,587 |
|
| Series 2013-107, Class AD, 2.84%, 11/16/47(e) | | 76,249 | 69,499 |
| Series 2014-17, Class AM, 3.54%, 6/16/48(e) | | 7,863 | 7,552 |
| Series 2014-H20, Class FA, (1M USD LIBOR + 0.43%, 0.43% Floor), 5.13%, 10/20/64(d) | | 153,456 | 151,952 |
| Series 2018-168, Class PA, 4.00%, 8/20/48 | | 90,811 | 88,493 |
| Series 2019-18, Class TP, 3.50%, 2/20/49 | | 96,139 | 90,707 |
| Series 2020-103, Class AD, 1.45%, 1/16/63 | | 589,280 | 466,871 |
| Series 2020-123, Class IL, 2.50%, 8/20/50 | | 78,234 | 10,829 |
| Series 2020-123, Class NI, 2.50%, 8/20/50 | | 158,276 | 22,189 |
| Series 2020-127, Class IN, 2.50%, 8/20/50 | | 77,537 | 10,682 |
| Series 2020-129, Class IE, 2.50%, 9/20/50 | | 80,372 | 11,013 |
| Series 2020-144, Class IO, 2.50%, 9/20/50 | | 141,190 | 18,737 |
| Series 2020-146, Class DI, 2.50%, 10/20/50 | | 73,897 | 9,796 |
| Series 2020-151, Class MI, 2.50%, 10/20/50 | | 443,628 | 58,980 |
| Series 2020-160, Class IH, 2.50%, 10/20/50 | | 82,521 | 11,382 |
| Series 2020-160, Class VI, 2.50%, 10/20/50 | | 80,621 | 11,640 |
| Series 2020-160, Class YI, 2.50%, 10/20/50 | | 244,546 | 34,289 |
| | | Par (a) | Value |
Government National Mortgage Association
(Continued) |
|
| Series 2020-181, Class WI, 2.00%, 12/20/50 | | $ 385,509 | $ 41,777 |
| Series 2020-185, Class MI, 2.50%, 12/20/50 | | 76,809 | 10,234 |
| Series 2020-190, Class IO, 1.05%, 11/16/62(e) | | 3,065,404 | 228,874 |
| Series 2020-47, Class MI, 3.50%, 4/20/50 | | 264,161 | 42,989 |
| Series 2020-47, Class NI, 3.50%, 4/20/50 | | 72,128 | 11,794 |
| Series 2020-H04, Class FP, (1M USD LIBOR + 0.50%, 0.50% Floor), 4.63%, 6/20/69(d) | | 181,712 | 179,374 |
| Series 2020-H09, Class FL, (1M USD LIBOR + 1.15%, 1.15% Floor), 4.20%, 5/20/70(d) | | 125,942 | 124,540 |
| Series 2020-H13, Class FA, (1M USD LIBOR + 0.45%, 0.45% Floor, 7.50% Cap), 3.90%, 7/20/70(d) | | 712,242 | 685,367 |
| Series 2020-H13, Class FM, (1M USD LIBOR + 0.40%, 0.40% Floor, 11.00% Cap), 5.10%, 8/20/70(d) | | 152,764 | 151,083 |
| Series 2021-14, Class AB, 1.34%, 6/16/63 | | 292,156 | 230,918 |
| Series 2021-15, Class GI, 3.50%, 1/20/51 | | 72,918 | 12,150 |
| Series 2021-161, Class IB, 4.00%, 9/20/51 | | 66,442 | 10,057 |
| Series 2021-176, Class IA, 3.50%, 10/20/51 | | 68,512 | 10,644 |
| Series 2021-199, Class KI, 3.50%, 11/20/51 | | 72,097 | 9,863 |
| Series 2021-209, Class TJ, 3.50%, 11/20/51 | | 69,873 | 10,566 |
| Series 2021-21, Class AH, 1.40%, 6/16/63 | | 439,868 | 348,629 |
| Series 2021-214, Class AI, 4.00%, 12/20/51 | | 99,091 | 15,766 |
| Series 2021-215, Class LI, 3.00%, 12/20/51 | | 85,409 | 10,659 |
| Series 2021-221, Class AI, 3.50%, 12/20/51 | | 142,091 | 20,829 |
| Series 2021-221, Class CI, 3.00%, 12/20/51 | | 73,632 | 9,096 |
| Series 2021-29, Class AG, 5.00%, 2/20/51 | | 77,094 | 78,491 |
| Series 2021-29, Class TI, 2.50%, 2/20/51 | | 467,322 | 82,106 |
| Series 2021-5, Class IO, 1.11%, 1/16/61(e) | | 3,264,454 | 246,607 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
Government National Mortgage Association
(Continued) |
|
| Series 2021-67, Class QI, 3.00%, 4/20/51 | | $ 79,348 | $ 11,961 |
| Series 2021-76, Class JI, 3.00%, 8/20/50 | | 81,490 | 12,284 |
| Series 2021-78, Class IC, 4.00%, 5/20/51 | | 65,608 | 10,405 |
| Series 2021-8, Class AQ, 5.00%, 1/20/51 | | 76,907 | 79,874 |
| Series 2021-96, Class MI, 3.00%, 6/20/51 | | 142,489 | 21,479 |
| Series 2021-96, Class VI, 2.50%, 6/20/51 | | 1,613,054 | 219,332 |
| Series 2022-139, Class AL, 4.00%, 7/20/51 | | 200,000 | 190,926 |
| Series 2022-189, Class PT, 2.50%, 10/20/51 | | 97,680 | 85,541 |
| Series 2022-196, Class BE, 3.00%, 10/16/64(e) | | 100,000 | 78,853 |
| Series 2022-220, Class E, 3.00%, 10/16/64 | | 200,000 | 159,958 |
| Series 2022-3, Class IO, 0.64%, 2/16/61(e) | | 97,710 | 5,099 |
| Series 2022-4, Class Z, 1.90%, 3/16/64 | | 204,803 | 110,053 |
| Series 2022-63, Class LM, 3.50%, 10/20/50 | | 400,000 | 347,972 |
| Series 2022-82, Class Z, 2.00%, 2/16/64 | | 916,638 | 604,888 |
| | | | 29,486,365 |
| Government National Mortgage Association II – 3.4% |
| Pool, | | | |
| 3.00%, 9/15/42 - 12/20/52 | | 6,048,735 | 5,526,064 |
| 3.50%, 3/20/45 - 12/20/52 | | 2,978,805 | 2,809,396 |
| 4.00%, 8/20/46 - 3/20/53 | | 2,559,019 | 2,484,890 |
| 4.50%, 4/20/47 - 9/20/52 | | 2,495,395 | 2,467,692 |
| 5.00%, 5/20/48 - 2/20/53 | | 869,016 | 875,103 |
| 2.00% - 6.00%, 2/20/49 - 3/20/53(p) | | 2,918,760 | 2,660,120 |
| 2.50%, 10/20/49 - 1/20/53 | | 9,083,433 | 8,037,168 |
| 2.00%, 8/20/50 - 10/20/51 | | 2,795,141 | 2,399,456 |
| 5.50%, 11/20/52 | | 395,605 | 398,366 |
| | | | 27,658,255 |
| Uniform Mortgage-Backed Securities – 4.9% |
| Pool, | | | |
| 1.50%, 5/01/38 - 5/01/53(p) | | 340,318 | 279,563 |
| 2.00%, 5/01/38 - 5/01/53(p) | | 3,377,600 | 2,843,528 |
| 2.50%, 5/01/38 (p) | | 485,000 | 450,690 |
| | | Par (a) | Value |
| Uniform Mortgage-Backed Securities (Continued) |
| Pool, | | | |
| 3.00%, 5/01/38 - 5/01/53(p) | | $12,374,247 | $11,116,345 |
| 3.50%, 5/01/38 - 5/01/53(p) | | 14,906,000 | 13,852,938 |
| 4.00%, 5/01/38 - 5/01/53(p) | | 2,460,000 | 2,355,508 |
| 4.50%, 5/01/53 (p) | | 1,505,700 | 1,490,355 |
| 2.50% - 6.50%, 5/01/53(p) | | 1,400,000 | 1,368,555 |
| 5.00%, 5/01/53 (p) | | 5,504,950 | 5,473,339 |
| 5.50%, 5/01/53 (p) | | 100,000 | 100,820 |
| | | | 39,331,641 |
| Whole Loan – 1.8% |
| Adjustable Rate Mortgage Trust, Series 2005-9, Class 5A1, (1M USD LIBOR + 0.54%, 0.54% Floor, 11.00% Cap), 5.56%, 11/25/35(d) | | 84,589 | 82,805 |
| Angel Oak Mortgage Trust, Series 2022-3, Class A1, 4.00%, 1/10/67(b) | | 730,233 | 689,722 |
| CIM Trust, Series 2021-R6, Class A1, 1.43%, 7/25/61(b) | | 258,811 | 225,144 |
| COLT Mortgage Loan Trust, Series 2022-2, Class A1, (Step to 3.98% on 3/25/26), 2.99%, 2/25/67(b)(l) | | 167,444 | 151,504 |
| CSMC, | | | |
| Series 2019-NQM1, Class A2, (Step to 3.86% on 12/25/23), 2.86%, 10/25/59(b)(l) | | 241,586 | 231,671 |
| Series 2021-NQM2, Class A3, 1.54%, 2/25/66(b) | | 84,366 | 70,323 |
| Series 2021-NQM6, Class A3, 1.59%, 7/25/66(b) | | 629,273 | 499,274 |
| Series 2021-NQM7, Class A1, 1.76%, 10/25/66(b) | | 146,558 | 123,544 |
| Series 2022-NQM1, Class A1, 2.27%, 11/25/66(b)(e) | | 677,524 | 588,751 |
| CSMC Trust, | | | |
| Series 2021-RPL2, Class A1, 2.00%, 1/25/60(b) | | 118,746 | 102,114 |
| Series 2021-RPL6, Class A1, 2.00%, 10/25/60(b) | | 148,058 | 132,057 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| CSMC Trust, | | | |
| Series 2021-RPL4, Class A1, 1.80%, 12/27/60(b)(e) | | $153,343 | $142,623 |
|
| Deephaven Residential Mortgage Trust, Series 2022-1, Class A1, 2.21%, 1/25/67(b) | | 399,003 | 356,933 |
| Ellington Financial Mortgage Trust, | | | |
| Series 2021-2, Class A1, 0.93%, 6/25/66(b) | | 306,387 | 248,577 |
| Series 2022-1, Class A1, 2.21%, 1/25/67(b) | | 183,947 | 157,047 |
|
| FHLMC Structured Agency Credit Risk Debt Notes, Series 2021-DNA2, Class M2, (30D Average SOFR + 2.30%), 7.12%, 8/25/33(b)(d) | | 190,000 | 189,525 |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2014-C04, Class 1M2, (1M USD LIBOR + 4.90%), 9.92%, 11/25/24(d) | | 69,597 | 73,117 |
| Series 2016-C03, Class 1M2, (1M USD LIBOR + 5.30%), 10.32%, 10/25/28(d) | | 161,216 | 170,367 |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2021-DNA6, Class M2, (30D Average SOFR + 1.50%), 6.32%, 10/25/41(b)(d) | | 580,000 | 558,615 |
| Series 2022-DNA2, Class M1A, (30D Average SOFR + 1.30%), 6.12%, 2/25/42(b)(d) | | 471,645 | 468,560 |
| Series 2022-DNA3, Class M1B, (30D Average SOFR + 2.90%), 7.72%, 4/25/42(b)(d) | | 550,000 | 548,625 |
| Series 2022-DNA4, Class M1A, (30D Average SOFR + 2.20%), 7.02%, 5/25/42(b)(d) | | 209,648 | 211,220 |
| Series 2022-DNA2, Class M1B, (30D Average SOFR + 2.40%), 7.22%, 2/25/42(b)(d) | | 200,000 | 197,002 |
|
| GSR Mortgage Loan Trust, Series 2007-1F, Class 2A4, 5.50%, 1/25/37 | | 118,705 | 149,633 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| HarborView Mortgage Loan Trust, | | | |
| Series 2005-9, Class 2A1B, (1M USD LIBOR + 0.74%, 0.74% Floor, 11.00% Cap), 5.69%, 6/20/35(d) | | $139,897 | $125,799 |
| Series 2005-9, Class 2A1C, (1M USD LIBOR + 0.90%, 0.90% Floor, 11.00% Cap), 5.85%, 6/20/35(d) | | 515,700 | 460,948 |
|
| Impac CMB Trust, Series 2007-A, Class A, (1M USD LIBOR + 0.50%, 0.50% Floor, 11.50% Cap), 5.52%, 5/25/37(b)(d) | | 170,860 | 157,776 |
| Legacy Mortgage Asset Trust, | | | |
| Series 2021-GS2, Class A1, (Step to 4.75% on 5/25/24), 1.75%, 4/25/61(b)(l) | | 277,696 | 261,743 |
| Series 2021-GS5, Class A1, (Step to 5.25% on 12/25/24), 2.25%, 7/25/67(b)(l) | | 166,708 | 155,589 |
| MASTR Asset Securitization Trust, | | | |
| Series 2007-1, Class 1A4, 6.50%, 11/25/37 | | 568,119 | 148,307 |
| Series 2007-2, Class A2, 6.25%, 1/25/38 | | 322,543 | 193,857 |
|
| Merrill Lynch Mortgage Investors Trust, Series 2004-A1, Class 2A2, 4.06%, 2/25/34(e) | | 221,125 | 200,449 |
| Mill City Mortgage Loan Trust, Series 2019-1, Class A1, 3.25%, 10/25/69(b) | | 279,593 | 267,208 |
| Morgan Stanley Resecuritization Trust, Series 2015-R2, Class 2A1, (12MTA + 1.09%, 1.09% Floor), 4.44%, 12/26/46(b)(d) | | 39,055 | 38,881 |
| New Residential Mortgage Loan Trust, | | | |
| Series 2015-2A, Class A1, 3.75%, 8/25/55(b) | | 212,071 | 199,723 |
| Series 2021-NQM3, Class A1, 1.16%, 11/27/56(b) | | 172,420 | 142,586 |
| Series 2017-2A, Class B2, 4.75%, 3/25/57(b) | | 243,314 | 227,017 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| New Residential Mortgage Loan Trust, | | | |
| Series 2018-RPL1, Class M2, 3.50%, 12/25/57(b)(e) | | $280,000 | $233,618 |
| Series 2018-3A, Class A1, 4.50%, 5/25/58(b)(e) | | 600,831 | 586,043 |
| Series 2019-NQM4, Class A1, 2.49%, 9/25/59(b) | | 93,363 | 85,706 |
| Series 2019-6A, Class A1B, 3.50%, 9/25/59(b)(e) | | 564,194 | 529,120 |
| Series 2019-6A, Class B3C, 3.75%, 9/25/59(b)(e) | | 537,446 | 482,236 |
| Series 2022-NQM4, Class A1, (Step to 5.01% on 7/25/26), 5.00%, 6/25/62(b)(l) | | 229,993 | 224,834 |
| OBX Trust, | | | |
| Series 2021-NQM2, Class A1, 1.10%, 5/25/61(b) | | 519,927 | 423,073 |
| Series 2021-NQM3, Class A1, 1.05%, 7/25/61(b) | | 176,218 | 135,333 |
| Series 2022-NQM1, Class A1, 2.31%, 11/25/61(b) | | 667,951 | 575,106 |
|
| PRKCM Trust, Series 2021-AFC2, Class A1, 2.07%, 11/25/56(b) | | 181,610 | 152,566 |
| PRPM LLC, Series 2022-1, Class A1, (Step to 6.72% on 3/25/25), 3.72%, 2/25/27(b)(l) | | 341,075 | 325,112 |
| Residential Mortgage Loan Trust, | | | |
| Series 2019-2, Class A1, 2.91%, 5/25/59(b) | | 31,546 | 30,964 |
| Series 2020-2, Class A1, 1.65%, 5/25/60(b) | | 52,337 | 51,088 |
| SG Residential Mortgage Trust, | | | |
| Series 2022-1, Class A1, 3.17%, 3/27/62(b)(e) | | 733,251 | 669,068 |
| Series 2022-2, Class A1, (Step to 5.34% on 1/25/24), 5.35%, 8/25/62(b)(l) | | 728,297 | 719,419 |
|
| Towd Point Mortgage Trust, Series 2022-4, Class A1, 3.75%, 9/25/62(b) | | 521,366 | 490,368 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
|
| Voyager OPTONE Delaware Trust, Series 2009-1, Class SAA7, 2.65%, 2/25/38(b)(e) | | $171,521 | $ 41,133 |
| WaMu Mortgage Pass-Through Certificates, Series 2006-AR13, Class 1A, (12MTA + 0.88%, 0.88% Floor), 4.34%, 10/25/46(d) | | 270,378 | 227,178 |
| | | | 14,930,601 |
Total Mortgage-Backed Securities
(Cost $280,635,690) | 266,651,378 |
|
| 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 | 198,242 |
| California State Taxable GO Unlimited Refunding Bonds, 4.60%, 4/01/38 | | 215,000 | 213,638 |
| California State Various Purpose Taxable GO Unlimited Bonds, Build America Bonds, | | | |
| 7.50%, 4/01/34 | | 65,000 | 81,324 |
| 7.55%, 4/01/39 | | 20,000 | 26,250 |
|
| Los Angeles Community College District GO Unlimited Bonds, Build America Bonds, 6.60%, 8/01/42 | | 45,000 | 54,827 |
| Los Angeles Unified School District GO Unlimited Bonds, Series RY, Build America Bonds, 6.76%, 7/01/34 | | 215,000 | 250,292 |
| University of California Taxable General Revenue Bonds, Series AD, 4.86%, 5/15/12(r) | | 25,000 | 23,277 |
| | | | 847,850 |
| Georgia – 0.0%(c) |
| Municipal Electric Authority of Georgia Taxable Revenue Bonds, Build America Bonds, 6.64%, 4/01/57 | | 39,000 | 43,278 |
| Illinois – 0.1% |
| Illinois State Taxable GO Unlimited Pension Bonds, 5.10%, 6/01/33 | | 380,000 | 381,573 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| New Jersey – 0.0%(c) |
| New Jersey State Turnpike Authority Taxable Revenue Bonds, Build America Bonds, 7.41%, 1/01/40 | | $66,000 | $ 84,691 |
| New York – 0.1% |
| Metropolitan Transportation Authority Revenue Bonds, Build America Bonds, 5.87%, 11/15/39 | | 45,000 | 45,617 |
| New York City Municipal Water Finance Authority Water & Sewer System Second General Resolution Taxable Revenue Bonds, 5.88%, 6/15/44 | | 30,000 | 34,451 |
| New York City Municipal Water Finance Authority Water & Sewer System Taxable Revenue Bonds, Build America Bonds, 6.01%, 6/15/42 | | 25,000 | 29,084 |
| New York State Dormitory Authority Personal Income TRB, Build America Bonds, 5.39%, 3/15/40 | | 30,000 | 31,725 |
| Port Authority of New York & New Jersey Consolidated 164th Taxable Revenue Bonds, 5.65%, 11/01/40 | | 35,000 | 38,264 |
| Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds, 4.93%, 10/01/51 | | 55,000 | 56,277 |
| Port Authority of New York & New Jersey Consolidated Taxable Revenue Bonds, Series 181, 4.96%, 8/01/46 | | 60,000 | 60,049 |
| | | | 295,467 |
| Ohio – 0.0%(c) |
| American Municipal Power-Ohio, Inc., Taxable Revenue Bonds, Series B, Combined Hydroelectric Projects, 8.08%, 2/15/50 | | 75,000 | 103,947 |
| | | Par (a) | Value |
| Texas – 0.0%(c) |
| San Antonio Electric & Gas Junior Lien Revenue Bonds, Build America Bonds, 5.81%, 2/01/41 | | $ 75,000 | $ 83,211 |
| Texas State Taxable GO Unlimited Bonds, Build America Bonds, 5.52%, 4/01/39 | | 115,000 | 126,366 |
| | | | 209,577 |
| Washington – 0.0%(c) |
| Seattle Municipal Light & Power Improvement Revenue Bonds, 5.00%, 4/01/44 | | 275,000 | 295,351 |
Total Municipal Bonds
(Cost $2,580,961) | 2,261,734 |
|
| Term Loans – 0.1%(d) |
| Apparel & Textile Products – 0.0%(c) |
| Fanatics Commerce Intermediate Holdco LLC, Initial Term Loan, (1M USD LIBOR + 3.25%, 0.50% Floor), 8.31%, 11/24/28 | | 28,638 | 28,518 |
| Tory Burch LLC, Initial Term B Loan, (1M USD LIBOR + 3.50%, 0.50% Floor), 8.52%, 4/16/28 | | 68,775 | 63,545 |
| | | | 92,063 |
| Chemicals – 0.0%(c) |
| Bakelite US Holdco, Inc., Initial Loan, (3M USD CME Term SOFR + 4.00%, 0.50% Floor), 9.05%, 5/29/29 | | 127,040 | 120,688 |
| LSF11 A5 Holdco LLC, Term Loan, (1M USD CME Term SOFR + 3.50%, 0.50% Floor), 8.60%, 10/15/28 | | 7,845 | 7,592 |
| | | | 128,280 |
| Commercial Support Services – 0.0%(c) |
| AEA International Holdings (Luxembourg) S.a.r.l., Initial Term Loan, (3M USD LIBOR + 3.75%, 0.50% Floor), 8.94%, 9/07/28 | | 73,964 | 73,594 |
| Allied Universal Holdco LLC, Initial U.S. Dollar Term Loan, (1M USD CME Term SOFR + 3.75%, 0.50% Floor), 8.83%, 5/12/28 | | 66,980 | 64,528 |
| | | | 138,122 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Construction Materials – 0.0%(c) |
| CP Iris Holdco I, Inc., Delayed Draw Term Loan, | | | |
| 10/02/28 (s)(t) | | $ 3,146 | $ 2,966 |
| (1M USD CME Term SOFR + 3.50%, 0.50% Floor), 8.40%, 10/02/28 | | 3 | 3 |
|
| CP Iris Holdco I, Inc., Initial Term Loan, (1M USD CME Term SOFR + 3.50%, 0.50% Floor), 8.58%, 10/02/28 | | 17,555 | 16,551 |
| | | | 19,520 |
| Food – 0.0%(c) |
| BCPE North Star US Holdco 2, Inc., Initial Term Loan, (3M USD LIBOR + 4.00%, 0.75% Floor), 9.16%, 6/09/28 | | 83,935 | 77,430 |
| Home & Office Products – 0.0%(c) |
| SWF Holdings I Corp., Initial Term Loan, (1M USD LIBOR + 4.00%, 0.75% Floor), 9.01%, 10/06/28 | | 38,610 | 32,553 |
| Leisure Facilities & Services – 0.1% |
| Bally's Corp., Term B Facility Loan, (1M USD LIBOR + 3.25%, 0.50% Floor), 8.20%, 10/02/28 | | 160,962 | 154,802 |
| Herschend Entertainment Co. LLC, Initial Term Loan, (1M USD LIBOR + 3.75%, 0.50% Floor), 8.81%, 8/27/28 | | 37,430 | 37,399 |
| | | | 192,201 |
| Publishing & Broadcasting – 0.0%(c) |
| Gray Television, Inc., Term D Loan, (1M USD CME Term SOFR + 3.00%), 7.92%, 12/01/28 | | 109,612 | 107,129 |
| Software – 0.0%(c) |
| ConnectWise LLC, Initial Term Loan, (1M USD LIBOR + 3.50%, 0.50% Floor), 8.52%, 9/29/28 | | 78,013 | 75,624 |
Total Term Loans
(Cost $898,205) | 862,922 |
|
| U.S. Government Obligations – 11.8% |
| U.S. Treasury Bonds – 4.0% |
| 4.25%, 5/15/39 | | 51,000 | 55,281 |
| 4.50%, 8/15/39 | | 51,000 | 56,917 |
| | | Par (a) | Value |
| U.S. Treasury Bonds (Continued) |
| 4.38%, 11/15/39 | | $ 51,000 | $ 55,970 |
| 4.63%, 2/15/40 | | 370,000 | 418,317 |
| 1.13%, 5/15/40 | | 1,108,000 | 742,446 |
| 3.88%, 8/15/40 | | 370,000 | 380,912 |
| 1.13%, 8/15/40 | | 1,108,000 | 736,387 |
| 4.25%, 11/15/40 | | 370,000 | 398,950 |
| 1.38%, 11/15/40 | | 1,108,000 | 766,900 |
| 1.75%, 8/15/41(q) | | 5,660,000 | 4,116,987 |
| 2.00%, 11/15/41 | | 6,010,000 | 4,553,749 |
| 2.75%, 8/15/42 | | 2,960,000 | 2,531,609 |
| 4.00%, 11/15/42 | | 1,660,000 | 1,709,800 |
| 3.13%, 2/15/43 | | 198,000 | 178,927 |
| 3.88%, 2/15/43 | | 644,500 | 651,348 |
| 2.88%, 5/15/43 | | 198,000 | 171,835 |
| 3.63%, 8/15/43 | | 198,000 | 193,112 |
| 3.75%, 11/15/43 | | 198,000 | 196,554 |
| 3.00%, 11/15/44 | | 3,040,000 | 2,665,700 |
| 2.50%, 2/15/45(q) | | 3,191,000 | 2,557,910 |
| 3.00%, 5/15/45 | | 2,450,000 | 2,141,740 |
| 2.88%, 11/15/46 | | 193,000 | 164,857 |
| 2.75%, 11/15/47(q) | | 3,341,000 | 2,783,340 |
| 3.00%, 2/15/48(q) | | 1,081,000 | 943,595 |
| 2.00%, 8/15/51 | | 3,240,000 | 2,280,530 |
| 1.88%, 11/15/51 | | 6,000 | 4,088 |
| 2.25%, 2/15/52 | | 3,000 | 2,239 |
| 2.88%, 5/15/52 | | 360,000 | 308,053 |
| 3.63%, 2/15/53 | | 1,011,000 | 1,002,470 |
| 1.50%, 2/15/53 | | 10,000 | 10,118 |
| | | | 32,780,641 |
| U.S. Treasury Notes – 7.8% |
| 1.63%, 10/15/27 | | 8,513,200 | 8,784,724 |
| 1.13%, 1/05/33 | | 3,700,000 | 3,700,469 |
| 2.13%, 7/31/24 | | 392,000 | 380,347 |
| 1.75%, 7/31/24 | | 662,000 | 639,554 |
| 3.00%, 7/31/24 | | 314,000 | 308,002 |
| 3.25%, 8/31/24 | | 595,000 | 585,355 |
| 4.25%, 9/30/24 | | 185,000 | 184,523 |
| 4.38%, 10/31/24 | | 143,000 | 142,950 |
| 4.50%, 11/30/24 | | 128,000 | 128,305 |
| 1.75%, 12/31/24(q) | | 6,696,000 | 6,428,683 |
| 4.25%, 12/31/24 | | 919,000 | 918,569 |
| 2.00%, 2/15/25 | | 487,000 | 468,738 |
| 1.50%, 2/15/25 | | 63,000 | 60,089 |
| 0.50%, 3/31/25 | | 1,540,000 | 1,439,599 |
| 0.38%, 4/30/25 | | 3,438,000 | 3,197,340 |
| 2.13%, 5/15/25 | | 420,000 | 404,184 |
| 2.75%, 5/15/25 | | 1,807,800 | 1,761,899 |
| 3.00%, 7/15/25 | | 154,000 | 150,806 |
| 3.13%, 8/15/25 | | 213,000 | 209,189 |
| 3.50%, 9/15/25 | | 528,000 | 523,215 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| U.S. Treasury Notes (Continued) |
| 4.50%, 11/15/25 | | $ 456,000 | $ 462,893 |
| 4.00%, 12/15/25 | | 212,000 | 212,969 |
| 0.38%, 12/31/25 | | 1,286,000 | 1,176,841 |
| 3.88%, 1/15/26 | | 90,000 | 90,144 |
| 4.63%, 3/15/26 | | 70,000 | 71,673 |
| 3.75%, 4/15/26 | | 304,000 | 304,095 |
| 0.75%, 5/31/26 | | 346,000 | 316,252 |
| 1.50%, 8/15/26 | | 558,000 | 520,444 |
| 2.00%, 11/15/26 | | 1,555,000 | 1,470,022 |
| 1.88%, 2/28/27 | | 3,000 | 2,814 |
| 0.63%, 3/31/27 | | 621,000 | 554,146 |
| 0.50%, 4/30/27 | | 621,000 | 550,143 |
| 2.38%, 5/15/27 | | 614,000 | 586,082 |
| 0.50%, 5/31/27 | | 484,000 | 427,659 |
| 2.75%, 7/31/27 | | 2,000 | 1,935 |
| 2.25%, 8/15/27(q) | | 2,561,000 | 2,428,148 |
| 3.13%, 8/31/27 | | 5,000 | 4,912 |
| 0.38%, 9/30/27 | | 783,000 | 681,791 |
| 4.13%, 10/31/27 | | 37,000 | 37,859 |
| 3.88%, 11/30/27 | | 242,000 | 245,498 |
| 3.88%, 12/31/27 | | 6,751,000 | 6,848,309 |
| 3.50%, 1/31/28 | | 7,000 | 6,992 |
| 4.00%, 2/29/28 | | 32,000 | 32,705 |
| 3.63%, 3/31/28(f) | | 372,000 | 374,005 |
| 1.25%, 9/30/28 | | 87,000 | 77,253 |
| 3.13%, 11/15/28 | | 329,000 | 322,240 |
| 1.38%, 12/31/28 | | 3,000 | 2,674 |
| 2.63%, 2/15/29 | | 548,000 | 522,205 |
| 2.38%, 3/31/29 | | 61,000 | 57,259 |
| 2.38%, 5/15/29 | | 548,000 | 514,135 |
| 1.63%, 8/15/29 | | 890,000 | 798,288 |
| 3.88%, 9/30/29 | | 1,279,800 | 1,306,146 |
| 4.00%, 10/31/29(q) | | 2,254,700 | 2,318,554 |
| 3.88%, 12/31/29 | | 1,560,000 | 1,594,978 |
| 3.50%, 1/31/30 | | 150,000 | 150,076 |
| 1.50%, 2/15/30 | | 869,000 | 766,825 |
| 4.00%, 2/28/30 | | 17,000 | 17,523 |
| 3.63%, 3/31/30 | | 138,000 | 139,272 |
| 1.63%, 5/15/31 | | 1,566,000 | 1,372,697 |
| 1.25%, 8/15/31(q) | | 3,132,000 | 2,648,498 |
| 2.88%, 5/15/32 | | 600 | 574 |
| 2.75%, 8/15/32 | | 2,082,700 | 1,971,080 |
| 4.13%, 11/15/32 | | 356,000 | 375,747 |
| 3.50%, 2/15/33 | | 168,000 | 168,998 |
| | | | 62,949,893 |
Total U.S. Government Obligations
(Cost $103,867,116) | 95,730,534 |
| | | Number
of Shares | Value |
| Investment Companies – 27.3% |
| BlackRock Allocation Target Shares - BATS, Series A | | 6,455,774 | $ 59,586,799 |
| Schwab Intermediate-Term U.S. Treasury ETF(f) | | 639,883 | 32,403,675 |
| Schwab Short-Term U.S. Treasury ETF | | 1,513,185 | 73,782,901 |
| Vanguard Long-Term Treasury ETF | | 596,494 | 39,177,726 |
| Vanguard Short-Term Inflation-Protected Securities ETF | | 347,624 | 16,630,332 |
Total Investment Companies
(Cost $229,201,874) | 221,581,433 |
| | | Par (a)/Number
of Shares | |
| Short-Term Investments – 8.3% |
| Borrowed Bond Agreements – 0.7% |
| BNP Paribas S.A., 4.85%, Open (Purchased on 4/5/23 to be repurchased at $104,295, collateralized by U.S. Treasury Notes, 1.25%, due 4/30/28, par and fair value plus interest of $115,000 and $103,779, respectively)(u) | | $103,931 | 103,931 |
| BNP Paribas S.A., 4.85%, Open (Purchased on 4/5/23 to be repurchased at $505,359, collateralized by U.S. Treasury Notes, 1.25%, due 5/31/28, par and fair value plus interest of $558,000 and $502,175, respectively)(u) | | 503,595 | 503,595 |
| BNP Paribas S.A., 4.87%, Open (Purchased on 3/16/23 to be repurchased at $209,513, collateralized by U.S. Treasury Bonds, 1.38%, due 8/15/50, par and fair value plus interest of $345,000 and $208,509, respectively)(u) | | 208,294 | 208,294 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a)/Number
of Shares | Value |
| Borrowed Bond Agreements (Continued) |
| BNP Paribas S.A., 4.89%, Open (Purchased on 3/16/23 to be repurchased at $1,331,874, collateralized by U.S. Treasury Bonds, 1.88%, due 2/15/51, par and fair value plus interest of $1,926,000 and $1,325,313, respectively)(u) | | $1,324,125 | $1,324,125 |
| BNP Paribas S.A., 4.89%, Open (Purchased on 3/16/23 to be repurchased at $937,213, collateralized by U.S. Treasury Bonds, 2.25%, due 8/15/49, par and fair value plus interest of $1,226,000 and $928,655, respectively)(u) | | 931,760 | 931,760 |
| BNP Paribas S.A., 4.87%, Open (Purchased on 3/16/23 to be repurchased at $29,487, collateralized by U.S. Treasury Bonds, 2.00%, due 2/15/50, par and fair value plus interest of $41,000 and $29,259, respectively)(u) | | 29,315 | 29,315 |
| BNP Paribas S.A., 4.84%, Open (Purchased on 3/16/23 to be repurchased at $2,160,611, collateralized by U.S. Treasury Notes, 0.88%, due 11/15/30, par and fair value plus interest of $2,588,000 and $2,169,708, respectively)(u) | | 2,148,040 | 2,148,040 |
| | | | 5,249,060 |
| Corporate Bonds – 0.2% |
| AbbVie, Inc., 3.75%, 11/14/23 | | 20,000 | 19,822 |
| Aetna, Inc., 2.80%, 6/15/23 | | 90,000 | 89,713 |
| American Airlines Pass Through Trust, Series 2015-2, Class B, 4.40%, 9/22/23 | | 14,179 | 13,992 |
| Boeing (The) Co., 1.43%, 2/04/24 | | 110,000 | 106,805 |
| Cargill, Inc., 1.38%, 7/23/23(b)(f) | | 110,000 | 109,159 |
| | | Par (a)/Number
of Shares | Value |
| Corporate Bonds (Continued) |
| Cigna Group (The), 3.75%, 7/15/23 | | $101,000 | $ 100,629 |
| CNH Industrial Capital LLC, 4.20%, 1/15/24 | | 123,000 | 121,609 |
| Devon Energy Corp., 8.25%, 8/01/23 | | 52,000 | 52,117 |
| General Motors Financial Co., Inc., 3.70%, 5/09/23 | | 7,000 | 6,997 |
| Goldman Sachs Group (The), Inc., 3.63%, 2/20/24 | | 120,000 | 118,423 |
| MassMutual Global Funding II, 0.85%, 6/09/23(b) | | 330,000 | 328,508 |
| Metropolitan Life Global Funding I, 0.90%, 6/08/23(b) | | 250,000 | 248,856 |
| PepsiCo, Inc., 0.75%, 5/01/23 | | 120,000 | 120,000 |
| Philip Morris International, Inc., 1.13%, 5/01/23 | | 70,000 | 70,000 |
| Sprint LLC, 7.88%, 9/15/23 | | 88,000 | 88,712 |
| State Street Corp., (3M USD LIBOR + 3.60%), 8.46%, 6/15/23(d)(j) | | 26,000 | 25,723 |
| UnitedHealth Group, Inc., 3.50%, 6/15/23 | | 30,000 | 29,939 |
| Wells Fargo & Co., 3.75%, 1/24/24 | | 160,000 | 158,167 |
| | | | 1,809,171 |
| Foreign Issuer Bonds – 0.4% |
| Canadian Imperial Bank of Commerce, 0.95%, 6/23/23 | | 100,000 | 99,358 |
| Credit Suisse A.G., 1.00%, 5/05/23 | | 920,000 | 917,700 |
| Danske Bank A/S, | | | |
| 5.38%, 1/12/24(b) | | 200,000 | 198,114 |
| 3.88%, 9/12/23(b) | | 400,000 | 396,674 |
|
| Ecopetrol S.A., 5.88%, 9/18/23(f) | | 7,000 | 6,974 |
| Glencore Funding LLC, 4.13%, 3/12/24(b) | | 330,000 | 324,721 |
| Nordea Bank Abp, 1.00%, 6/09/23(b) | | 210,000 | 208,996 |
| Petroleos Mexicanos, 4.88%, 1/18/24 | | 19,000 | 18,730 |
| Shell International Finance B.V., 3.50%, 11/13/23 | | 170,000 | 168,736 |
| Sinopec Group Overseas Development 2014 Ltd., 4.38%, 4/10/24(b) | | 290,000 | 288,742 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a)/Number
of Shares | Value |
| Foreign Issuer Bonds (Continued) |
|
| Swedbank AB, 1.30%, 6/02/23(b) | | $ 200,000 | $ 199,174 |
| Toronto-Dominion Bank (The), 0.75%, 6/12/23(f) | | 210,000 | 208,894 |
| | | | 3,036,813 |
| Money Market Funds – 7.0% |
| Northern Institutional Funds - Liquid Assets Portfolio, 4.85%(v)(w) | | 8,897,952 | 8,897,952 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(v) | | 47,924,551 | 47,924,551 |
| | | | 56,822,503 |
| U.S. Government Obligations – 0.0%(c) |
| U.S. Treasury Notes, 0.13%, 5/31/23 | | 198,000 | 197,277 |
| U.S. Treasury Notes – 0.0%(c) |
| U.S. Treasury Notes, 2.50%, 4/30/24 | | 142,000 | 138,772 |
Total Short-Term Investments
(Cost $67,300,702) | 67,253,596 |
Number of
Contracts | Notional
Amount | |
| Purchased Options – 0.1% |
| Call Options - Exchange Traded – 0.0%(c) |
| 10-Year U.S. Treasury Note Future, Strike Price $104.00, Expires 5/26/23 | 2 | 412,328 | 500 |
| 10-Year U.S. Treasury Note Future, Strike Price $115.25, Expires 5/26/23 | 5 | 576,016 | 4,766 |
| 10-Year U.S. Treasury Note Future, Strike Price $115.50, Expires 5/26/23 | 17 | 1,958,453 | 14,344 |
| 10-Year U.S. Treasury Note Future, Strike Price $115.75, Expires 5/05/23 | 4 | 460,812 | 1,437 |
| 10-Year U.S. Treasury Note Future, Strike Price $116.00, Expires 5/26/23 | 5 | 576,016 | 3,203 |
| 5-Year U.S. Treasury Note Future, Strike Price $109.00, Expires 5/26/23 | 51 | 5,596,852 | 58,172 |
| 5-Year U.S. Treasury Note Future, Strike Price $109.50, Expires 5/26/23 | 7 | 768,195 | 6,016 |
| 5-Year U.S. Treasury Note Future, Strike Price $110.00, Expires 5/26/23 | 43 | 4,718,915 | 27,211 |
Number of
Contracts | Notional
Amount | Value |
| Call Options - Exchange Traded (Continued) |
| 5-Year U.S. Treasury Note Future, Strike Price $110.25, Expires 5/26/23 | 43 | $4,718,915 | $ 23,180 |
| 5-Year U.S. Treasury Note Future, Strike Price $110.75, Expires 5/26/23 | 7 | 768,195 | 2,734 |
| 5-Year U.S. Treasury Note Future, Strike Price $111.50, Expires 5/26/23 | 14 | 1,536,391 | 3,172 |
| U.S. Treasury Long Bond Future, Strike Price $130.00, Expires 5/26/23 | 2 | 263,313 | 5,312 |
| U.S. Treasury Long Bond Future, Strike Price $132.00, Expires 5/05/23 | 2 | 282,813 | 1,594 |
| U.S. Treasury Long Bond Future, Strike Price $133.00, Expires 5/26/23 | 4 | 526,625 | 4,625 |
| U.S. Treasury Long Bond Future, Strike Price $135.00, Expires 5/26/23 | 2 | 263,313 | 1,219 |
| U.S. Treasury Long Bond Future, Strike Price $136.00, Expires 5/26/23 | 5 | 658,281 | 2,187 |
| | | | 159,672 |
| Call Options - Over the Counter – 0.0%(c) |
| Chilean Peso vs. U.S. Dollar, Strike Price CLP 830.00, Expires 6/02/23, Counterparty: Bank of America | 2 | 48,000 | 521 |
| U.S. Dollar vs. Euro, Strike Price USD 1.11, Expires 5/05/23, Counterparty: Deutsche Bank | 1 | 650,000 (x) | 1,748 |
| U.S. Dollar vs. Euro, Strike Price USD 1.11, Expires 5/11/23, Counterparty: BNP Paribas | 2 | 112,000 (x) | 663 |
| U.S. Dollar vs. Euro, Strike Price USD 1.12, Expires 7/19/23, Counterparty: Deutsche Bank | 1 | 480,000 (x) | 3,926 |
| U.S. Dollar vs. Euro, Strike Price USD 1.13, Expires 5/18/23, Counterparty: Goldman Sachs | 2 | 8,000 (x) | 1,519 |
| U.S. Dollar vs. Euro, Strike Price USD 1.14, Expires 6/16/23, Counterparty: Goldman Sachs | 1 | 490,000 (x) | 770 |
| | | | 9,147 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Number of
Contracts | Notional
Amount | Value |
| Call Swaptions - Over the Counter – 0.1% |
| Pay 1-Day USD SOFR (Annually); Receive 2.88% (Semi-Annually): Interest Rate Swap Maturing 04/08/2036, Strike Price USD 2.88, Expires 4/06/26, Counterparty: BNP Paribas | 1 | $504,100 | $23,187 |
| Pay 1-Day USD SOFR (Annually); Receive 2.88% (Semi-Annually): Interest Rate Swap Maturing 04/08/2036, Strike Price USD 2.88, Expires 4/06/26, Counterparty: BNP Paribas | 1 | 320,800 | 14,781 |
| Pay 1-Day USD SOFR (Annually); Receive 2.96% (Semi-Annually): Interest Rate Swap Maturing 04/14/2036, Strike Price USD 2.96, Expires 4/10/26, Counterparty: Barclays | 1 | 326,900 | 16,111 |
| Pay 1-Day USD SOFR (Annually); Receive 2.96% (Semi-Annually): Interest Rate Swap Maturing 04/15/2036, Strike Price USD 2.96, Expires 4/13/26, Counterparty: Bank of America | 1 | 587,700 | 28,867 |
| Pay 1-Day USD SOFR (Annually); Receive 3.08% (Semi-Annually): Interest Rate Swap Maturing 04/01/2036, Strike Price USD 3.08, Expires 3/30/26, Counterparty: Bank of America | 1 | 938,800 | 51,013 |
| Pay 1-Day USD SOFR (Annually); Receive 3.09% (Semi-Annually): Interest Rate Swap Maturing 03/31/2036, Strike Price USD 3.09, Expires 3/27/26, Counterparty: Morgan Stanley | 1 | 275,200 | 15,077 |
| Pay 1-Day USD SOFR (Annually); Receive 3.10% (Semi-Annually): Interest Rate Swap Maturing 04/01/2036, Strike Price USD 3.10, Expires 3/30/26, Counterparty: Citibank | 1 | 314,400 | 17,361 |
Number of
Contracts | Notional
Amount | Value |
| Call Swaptions - Over the Counter (Continued) |
| Pay 1-Day USD SOFR (Annually); Receive 3.11% (Semi-Annually): Interest Rate Swap Maturing 04/22/2036, Strike Price USD 3.11, Expires 4/20/26, Counterparty: Goldman Sachs | 1 | $ 806,300 | $ 45,080 |
| Pay 1-Day USD SOFR (Annually); Receive 3.13% (Semi-Annually): Interest Rate Swap Maturing 04/22/2036, Strike Price USD 3.13, Expires 4/20/26, Counterparty: Goldman Sachs | 1 | 575,900 | 32,648 |
| Pay 6-Month EUR IBOR (Semi-Annually); Receive 2.20% (Annually): Interest Rate Swap Maturing 02/19/2027, Strike Price EUR $2.20, Expires 2/17/25, Counterparty: Morgan Stanley | 1 | 550,000 (x) | 4,667 |
| | | | 248,792 |
| Put Options - Exchange Traded – 0.0%(c) |
| 10-Year U.S. Treasury Note Future, Strike Price $114.00, Expires 5/26/23 | 2 | 230,406 | 906 |
| 10-Year U.S. Treasury Note Future, Strike Price $114.75, Expires 5/05/23 | 7 | 806,422 | 2,625 |
| 10-Year U.S. Treasury Note Future, Strike Price $115.50, Expires 5/05/23 | 1 | 115,203 | 750 |
| 3-Month SOFR 1-Year Mid Curve Future, Strike Price $95.88, Expires 12/15/23 | 54 | 12,899,250 | 21,938 |
| 3-Month SOFR 1-Year Mid Curve Future, Strike Price $96.00, Expires 9/15/23 | 182 | 43,295,525 | 71,662 |
| 3-Month SOFR 1-Year Mid Curve Future, Strike Price $96.00, Expires 12/15/23 | 132 | 31,531,500 | 62,700 |
| | | | 160,581 |
| Put Options - Over the Counter – 0.0%(c) |
| Brazilian Real vs. U.S. Dollar, Strike Price BRL 4.90, Expires 5/12/23, Counterparty: Barclays | 2 | 50,000 | 186 |
| Brazilian Real vs. U.S. Dollar, Strike Price BRL 5.10, Expires 5/12/23, Counterparty: Deutsche Bank | 2 | 66,000 | 1,643 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Number of
Contracts | Notional
Amount | Value |
| Put Options - Over the Counter (Continued) |
| Mexican Peso vs. U.S. Dollar, Strike Price MXN 18.15, Expires 6/16/23, Counterparty: HSBC | 2 | $ 80,000 | $ 1,224 |
| South African Rand vs. U.S. Dollar, Strike Price ZAR $18.10, Expires 5/18/23, Counterparty: Goldman Sachs | 2 | 112,000 | 376 |
| South Korean Won vs. U.S. Dollar, Strike Price KRW $1,290.00, Expires 5/03/23, Counterparty: Standard Chartered Bank | 2 | 64,000 | 3 |
| South Korean Won vs. U.S. Dollar, Strike Price KRW $1,300.00, Expires 5/11/23, Counterparty: HSBC | 2 | 96,000 | 87 |
| U.S. Dollar vs. Australian Dollar, Strike Price USD 0.66, Expires 6/16/23, Counterparty: Morgan Stanley | 2 | 96,000 (y) | 801 |
| U.S. Dollar vs. Euro, Strike Price USD 1.07, Expires 6/29/23, Counterparty: Goldman Sachs | 1 | 3,646,000 (x) | 14,158 |
| U.S. Dollar vs. Japanese Yen, Strike Price JPY 128.00, Expires 6/22/23, Counterparty: Bank of America | 2 | 112,000 | 175 |
| U.S. Dollar vs. Thai Baht, Strike Price THB $33.70, Expires 5/26/23, Counterparty: Standard Chartered Bank | 2 | 48,000 | 261 |
| | | | 18,914 |
| Put Swaptions - Over the Counter – 0.0%(c) |
| Pay 2.88% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/08/2036, Strike Price USD 2.88, Expires 4/06/26, Counterparty: BNP Paribas | 1 | 320,800 | 17,965 |
| Pay 2.88% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/08/2036, Strike Price USD 2.88, Expires 4/06/26, Counterparty: BNP Paribas | 1 | 504,100 | 28,268 |
Number of
Contracts | Notional
Amount | Value |
| Put Swaptions - Over the Counter (Continued) |
| Pay 2.96% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/14/2036, Strike Price USD 2.96, Expires 4/10/26, Counterparty: Barclays | 1 | $326,900 | $ 17,373 |
| Pay 2.96% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/15/2036, Strike Price USD 2.96, Expires 4/13/26, Counterparty: Bank of America | 1 | 587,700 | 31,369 |
| Pay 3.08% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/01/2036, Strike Price USD 3.08, Expires 3/30/26, Counterparty: Bank of America | 1 | 938,800 | 45,781 |
| Pay 3.09% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 03/31/2036, Strike Price USD 3.09, Expires 3/27/26, Counterparty: Morgan Stanley | 1 | 275,200 | 13,310 |
| Pay 3.10% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/01/2036, Strike Price USD 3.10, Expires 3/30/26, Counterparty: Citibank | 1 | 314,400 | 15,122 |
| Pay 3.11% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/22/2036, Strike Price USD 3.11, Expires 4/20/26, Counterparty: Goldman Sachs | 1 | 806,300 | 38,737 |
| Pay 3.13% (Semi-Annually); Receive 1-Day USD SOFR (Annually): Interest Rate Swap Maturing 04/22/2036, Strike Price USD 3.13, Expires 4/20/26, Counterparty: Goldman Sachs | 1 | 575,900 | 27,337 |
| | | | 235,262 |
Total Purchased Options
(Premiums Paid $959,274) | 832,368 |
Total Long Positions – 109.3%
(Cost $937,674,893) | 888,469,202 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| | | Par (a) | Value |
| Short Positions – (2.7)%(z) |
| Mortgage-Backed Securities – (2.1)% |
| Uniform Mortgage-Backed Securities – (2.1)% |
| Pool , | | | |
| 2.00% - 5.50%, 5/01/53(p) | | $(14,795,785) | $ (14,350,874) |
| 2.50%, 5/01/53 (p) | | (2,828,100) | (2,448,682) |
| | | | (16,799,556) |
Total Mortgage-Backed Securities
(Proceeds $16,800,149) | (16,799,556) |
|
| U.S. Government Obligations – (0.6)% |
| U.S. Treasury Bonds – (0.3)% |
| 2.25%, 8/15/49 | | (1,226,000) | (923,092) |
| 2.00%, 2/15/50 | | (41,000) | (29,094) |
| 1.38%, 8/15/50 | | (345,000) | (207,552) |
| 1.88%, 2/15/51 | | (1,926,000) | (1,318,031) |
| | | | (2,477,769) |
| U.S. Treasury Notes – (0.3)% |
| 1.25%, 4/30/28 | | (115,000) | (103,065) |
| 1.25%, 5/31/28 | | (558,000) | (499,301) |
| 0.88%, 11/15/30 | | (2,588,000) | (2,160,171) |
| | | | (2,762,537) |
Total U.S. Government Obligations
(Proceeds $5,238,294) | (5,240,306) |
Total Short Positions – (2.7)%
(Proceeds $22,038,443) | (22,039,862) |
Total Written Options – (0.1)%
(Premiums Received $895,624) | (755,269) |
| Liabilities less Other Assets – (6.5)%(aa) | (53,059,224) |
| NET ASSETS – 100.0% | $812,614,847 |
| Percentages shown are based on Net Assets. |
| |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| (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. |
| (c) | Amount rounds to less than 0.05%. |
| (d) | Variable rate security. Rate as of April 30, 2023 is disclosed. |
| (e) | 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, 2023 is disclosed. |
| (f) | Security either partially or fully on loan (See Note 7). |
| (g) | Investment is valued using significant unobservable inputs (Level 3). |
| (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, 2023 is disclosed. |
| (i) | Century bond maturing in 2120. |
| (j) | Perpetual bond. Maturity date represents next call date. |
| (k) | Distributions from this security are made via payments in-kind (PIK) unless otherwise noted in the description. |
| (l) | Step coupon bond. Rate as of April 30, 2023 is disclosed. |
| (m) | Zero coupon bond. |
| (n) | Restricted security that has been deemed illiquid and is classified as Level 2. At April 30, 2023, the value of these restricted illiquid securities amounted to $339,760 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 |
| |
|
| (o) | Issuer has defaulted on terms of debt obligation. |
| (p) | When-issued security. Coupon rate was not yet in effect at April 30, 2023. |
| (q) | All or a portion of the security was held as collateral for open futures, options, securities sold short and/or swap agreements. |
| (r) | Century bond maturing in 2112. |
| (s) | Unfunded loan commitment. As of April 30, 2023, total value of unfunded loan commitments was $2,966. |
| (t) | Position is unsettled. Contract rate was not determined at April 30, 2023 and does not take effect until settlement date. |
| (u) | The amount to be repurchased assumes the maturity will be the day after the period end. |
| (v) | 7-day current yield as of April 30, 2023 is disclosed. |
| (w) | Security purchased with the cash proceeds from securities loaned (See Note 7). |
| (x) | The notional amount is EUR. |
| (y) | The notional amount is AUD. |
| (z) | Securities sold short are not owned by the Fund. |
| (aa) | 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 |
| 30D | 30 Day |
| 3M | 3 Month |
| 5Y | 5 Year |
| BANXICO | Banco de Mexico |
| BATS | Better Alternative Trading System |
| BZDIO | Brazil Interbank Rate |
| CDO | Collateralized Debt Obligation |
| CIDOR | Canada Interbank Rate |
| CLICP | Sinacofi Chile Interbank Rate |
| CLO | Collateralized Loan Obligation |
| CME | Chicago Mercantile Exchange |
| CMT | Constant Maturity |
| COOVI | Columbian Overnight Index Average |
| CP | Commercial Paper |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| ESTR | Euro Short Term Rate |
| ETF | Exchange-Traded Fund |
| EURIBOR | Euro Interbank Offered Rate |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| Freddie Mac | Federal Home Loan Mortgage Corporation |
| GO | Government Obligation |
| IO | Interest Only |
| JIBAR | Johannesburg Interbank Average Rate |
| JSC | Joint Stock Company |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| PLC | Public Limited Company |
| PRBOR | Prague Interbank Offered Rate |
| REMIC | Real Estate Mortgage Investment Conduit |
| S&P | Standards & Poor's |
| SOFR | United States Secured Overnight Financing Rate |
| SONIA | Sterling Overnight Index Average |
| STACR | Structured Agency Credit Risk |
| Strip | Separate Trading of Registered Interest and Principal |
| TIIE | Tasa de Interés Interbancaria de Equilibrio |
| TONAR | Tokyo Overnight Average Rate |
| TRB | Tax Revenue Bonds |
| USD | United States Dollar |
| WIBOR | Warsaw Interbank Offered Rate |
| EUR | Euro |
| COP | Colombian Peso |
| CZK | Czech Republic Koruna |
| IDR | Indonesian Rupiah |
| MXN | Mexican Peso |
| RUB | Russian Ruble |
| ZAR | South African Rand |
| CLP | Chilean Peso |
| BRL | Brazilian Real |
| KRW | South Korean Won |
| JPY | Japanese Yen |
| THB | Thai Baht |
Futures Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| Euro-Bobl | 1 | 6/08/2023 | EUR | 129,991 | $ (1,862) |
| U.S. Treasury Long Bond | 142 | 6/21/2023 | USD | 18,695,188 | 147,618 |
| Ultra 10-Year U.S. Treasury Note | 10 | 6/21/2023 | USD | 1,214,531 | (2,039) |
| Ultra U.S. Treasury Bond | 302 | 6/21/2023 | USD | 42,704,688 | 301,412 |
| 2-Year U.S. Treasury Note | 41 | 6/30/2023 | USD | 8,452,727 | (30,124) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Futures Contracts outstanding at April 30, 2023:
Exchange Traded (continued) |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| 5-Year U.S. Treasury Note | 1,181 | 6/30/2023 | USD | 129,605,524 | $ 77,219 |
| CME 3-Month SOFR | 2 | 9/19/2023 | USD | 474,575 | (8,175) |
| 3-Month Euribor | 1 | 6/17/2024 | EUR | 266,646 | 45 |
| 3-Month SONIA Index | 2 | 9/18/2024 | GBP | 601,418 | (858) |
| CME 3-Month SOFR | 32 | 3/17/2026 | USD | 7,772,000 | 61,200 |
| Total Long Contracts | | | | | $ 544,436 |
| Short Contracts | | | | | |
| 30-Day Federal Funds | (76) | 5/31/2023 | USD | 30,076,239 | $ — |
| 30-Year Euro Buxl | (1) | 6/08/2023 | EUR | 153,715 | (5,391) |
| Euro-Bund | (1) | 6/08/2023 | EUR | 149,374 | (1,543) |
| 10-Year Japanese Treasury Bond | (10) | 6/13/2023 | JPY | 10,906,822 | (239,073) |
| E-Mini S&P 500 | (15) | 6/16/2023 | USD | 3,141,375 | (42,453) |
| 3-Month Euribor | (6) | 6/19/2023 | EUR | 1,594,422 | (99) |
| CME 3-Month SOFR | (110) | 6/20/2023 | USD | 26,144,938 | (22,687) |
| 10-Year U.S. Treasury Note | (395) | 6/21/2023 | USD | 45,505,234 | (493,625) |
| Ultra 10-Year U.S. Treasury Note | (71) | 6/21/2023 | USD | 8,623,172 | (23,070) |
| 2-Year U.S. Treasury Note | (132) | 6/30/2023 | USD | 27,213,656 | 37,995 |
| 3-Month SONIA Index | (40) | 12/19/2023 | USD | 9,515,500 | 16,562 |
| CME 3-Month SOFR | (244) | 3/19/2024 | USD | 58,285,500 | 95,969 |
| CME 3-Month SOFR | (126) | 3/18/2025 | USD | 30,551,850 | (254,087) |
| Total Short Contracts | | | | | $(931,502) |
| | | | | | $(387,066) |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 6/21/23 | U.S. Dollars | 399,458 | Japanese Yen | 51,530,000 | Goldman Sachs | $ 18,150 |
| 6/21/23 | British Pounds | 280,000 | U.S. Dollars | 342,276 | JPMorgan Chase | 10,007 |
| 6/21/23 | U.S. Dollars | 212,250 | Japanese Yen | 27,470,000 | Barclays | 8,979 |
| 6/21/23 | Euro | 431,780 | U.S. Dollars | 468,644 | Barclays | 8,587 |
| 6/21/23 | Euro | 608,220 | U.S. Dollars | 665,256 | JPMorgan Chase | 6,988 |
| 5/10/23 | Mexican Pesos | 3,284,412 | U.S. Dollars | 175,734 | JPMorgan Chase | 6,526 |
| 6/21/23 | Euro | 180,000 | U.S. Dollars | 192,732 | Citibank | 6,216 |
| 6/21/23 | Indonesian Rupiahs | 1,715,949,628 | U.S. Dollars | 111,151 | HSBC | 5,734 |
| 6/21/23 | U.S. Dollars | 171,146 | Japanese Yen | 22,429,000 | Deutsche Bank | 5,178 |
| 6/21/23 | British Pounds | 110,000 | U.S. Dollars | 134,495 | BNP Paribas | 3,902 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 6/21/23 | Euro | 90,000 | U.S. Dollars | 96,365 | Deutsche Bank | $ 3,109 |
| 6/21/23 | British Pounds | 50,000 | U.S. Dollars | 60,341 | Goldman Sachs | 2,567 |
| 6/21/23 | Euro | 220,000 | U.S. Dollars | 240,935 | Morgan Stanley | 2,223 |
| 6/21/23 | British Pounds | 50,000 | U.S. Dollars | 60,949 | Morgan Stanley | 1,958 |
| 5/15/23 | U.S. Dollars | 32,000 | Colombian Pesos | 142,294,400 | Citibank | 1,832 |
| 5/15/23 | U.S. Dollars | 112,000 | Japanese Yen | 14,976,718 | UBS | 1,819 |
| 5/10/23 | Colombian Pesos | 147,153,638 | U.S. Dollars | 29,499 | Barclays | 1,741 |
| 7/05/23 | U.S. Dollars | 83,694 | Colombian Pesos | 391,896,048 | JPMorgan Chase | 1,529 |
| 5/10/23 | U.S. Dollars | 98,567 | South African Rand | 1,779,596 | State Street | 1,378 |
| 5/16/23 | U.S. Dollars | 46,000 | Taiwan Dollars | 1,372,778 | Bank of America | 1,303 |
| 6/21/23 | British Pounds | 30,000 | U.S. Dollars | 36,535 | Bank of America | 1,210 |
| 5/03/23 | Brazilian Reals | 165,300 | U.S. Dollars | 32,000 | Goldman Sachs | 1,119 |
| 5/10/23 | Mexican Pesos | 1,185,555 | U.S. Dollars | 64,763 | Goldman Sachs | 1,027 |
| 5/10/23 | U.S. Dollars | 82,772 | South African Rand | 1,497,011 | Goldman Sachs | 1,016 |
| 5/15/23 | U.S. Dollars | 49,082 | New Zealand Dollars | 78,000 | UBS | 849 |
| 6/21/23 | Euro | 60,000 | U.S. Dollars | 65,542 | Goldman Sachs | 774 |
| 6/21/23 | U.S. Dollars | 133,400 | Euro | 120,000 | BNP Paribas | 769 |
| 5/15/23 | U.S. Dollars | 103,000 | Chilean Pesos | 82,739,900 | Goldman Sachs | 732 |
| 5/15/23 | U.S. Dollars | 39,000 | Canadian Dollars | 51,944 | Bank of America | 649 |
| 6/21/23 | U.S. Dollars | 52,395 | Japanese Yen | 7,000,000 | BNP Paribas | 597 |
| 5/15/23 | Indonesian Rupiahs | 477,952,000 | U.S. Dollars | 32,000 | Standard Chartered Bank | 573 |
| 5/15/23 | U.S. Dollars | 50,000 | South African Rand | 905,985 | Morgan Stanley | 546 |
| 5/15/23 | British Pounds | 64,000 | U.S. Dollars | 79,929 | HSBC | 532 |
| 5/15/23 | U.S. Dollars | 48,000 | Taiwan Dollars | 1,458,720 | Bank of America | 507 |
| 6/21/23 | U.S. Dollars | 260,199 | Euro | 235,000 | JPMorgan Chase | 462 |
| 5/15/23 | U.S. Dollars | 107,441 | Euro | 97,000 | BNP Paribas | 456 |
| 5/03/23 | Brazilian Reals | 241,445 | U.S. Dollars | 48,000 | Barclays | 375 |
| 5/15/23 | U.S. Dollars | 32,000 | South Korean Won | 42,294,720 | Bank of America | 365 |
| 5/10/23 | Euro | 11,750 | U.S. Dollars | 12,596 | Standard Chartered Bank | 360 |
| 5/15/23 | Thai Baht | 1,954,388 | U.S. Dollars | 57,000 | Citibank | 328 |
| 6/21/23 | U.S. Dollars | 83,201 | Euro | 75,000 | Goldman Sachs | 306 |
| 6/02/23 | Brazilian Reals | 162,220 | U.S. Dollars | 32,000 | BNP Paribas | 291 |
| 5/03/23 | U.S. Dollars | 32,000 | Brazilian Reals | 158,377 | UBS | 268 |
| 6/02/23 | Brazilian Reals | 81,712 | U.S. Dollars | 16,000 | UBS | 266 |
| 5/15/23 | U.S. Dollars | 32,000 | Norwegian Kroner | 338,743 | Citibank | 188 |
| 5/15/23 | U.S. Dollars | 64,000 | Swiss Francs | 56,952 | Citibank | 165 |
| 5/15/23 | Euro | 28,000 | Norwegian Kroner | 327,296 | Goldman Sachs | 146 |
| 5/15/23 | Polish Zloty | 202,738 | Euro | 44,000 | Morgan Stanley | 136 |
| 6/21/23 | U.S. Dollars | 88,548 | Euro | 80,000 | Citibank | 127 |
| 5/15/23 | Mexican Pesos | 579,520 | U.S. Dollars | 32,000 | Goldman Sachs | 122 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 5/15/23 | Mexican Pesos | 254,431 | U.S. Dollars | 14,000 | Toronto-Dominion Bank | $ 103 |
| 5/15/23 | U.S. Dollars | 16,000 | Chilean Pesos | 12,864,960 | Bank of America | 99 |
| 6/21/23 | U.S. Dollars | 25,517 | Euro | 23,000 | Deutsche Bank | 96 |
| 5/15/23 | Norwegian Kroner | 682,060 | Euro | 58,000 | HSBC | 82 |
| 6/06/23 | Chilean Pesos | 17,920,100 | U.S. Dollars | 22,000 | Bank of America | 82 |
| 5/03/23 | U.S. Dollars | 32,000 | Brazilian Reals | 159,370 | BNP Paribas | 69 |
| 6/21/23 | U.S. Dollars | 51,867 | Japanese Yen | 7,000,000 | Bank of America | 69 |
| 6/21/23 | U.S. Dollars | 44,271 | Euro | 40,000 | Morgan Stanley | 61 |
| 5/15/23 | Mexican Pesos | 431,792 | British Pounds | 19,000 | Toronto-Dominion Bank | 47 |
| 5/15/23 | Mexican Pesos | 431,760 | British Pounds | 19,000 | State Street | 45 |
| 5/15/23 | U.S. Dollars | 32,027 | Euro | 29,000 | JPMorgan Chase | 41 |
| 5/15/23 | Euro | 20,000 | U.S. Dollars | 22,048 | Citibank | 11 |
| Total Unrealized Appreciation | $ 115,792 |
| | | | | | | |
| 5/10/23 | South African Rand | 395,756 | U.S. Dollars | 21,617 | HSBC | $ (3) |
| 5/15/23 | U.S. Dollars | 9,000 | Hungarian Forints | 3,070,638 | Barclays | (23) |
| 5/15/23 | U.S. Dollars | 32,000 | South Korean Won | 42,816,000 | Citibank | (25) |
| 5/15/23 | U.S. Dollars | 9,000 | Hungarian Forints | 3,075,163 | Bank of America | (36) |
| 6/21/23 | Euro | 100,000 | U.S. Dollars | 110,570 | State Street | (43) |
| 6/06/23 | U.S. Dollars | 22,000 | Chilean Pesos | 17,920,100 | Barclays | (82) |
| 5/03/23 | Brazilian Reals | 79,439 | U.S. Dollars | 16,000 | BNP Paribas | (84) |
| 5/10/23 | South African Rand | 936,246 | U.S. Dollars | 51,229 | Morgan Stanley | (97) |
| 5/15/23 | U.S. Dollars | 22,526 | British Pounds | 18,000 | Barclays | (103) |
| 5/15/23 | South African Rand | 300,339 | Euro | 15,000 | Toronto-Dominion Bank | (150) |
| 5/15/23 | South African Rand | 300,294 | Euro | 15,000 | Deutsche Bank | (152) |
| 5/15/23 | Australian Dollars | 35,000 | Canadian Dollars | 31,618 | State Street | (169) |
| 5/15/23 | U.S. Dollars | 32,000 | Czech Republic Koruna | 687,968 | BNP Paribas | (192) |
| 5/15/23 | Swiss Francs | 56,908 | U.S. Dollars | 64,000 | Goldman Sachs | (214) |
| 5/03/23 | Brazilian Reals | 158,627 | U.S. Dollars | 32,000 | JPMorgan Chase | (218) |
| 5/03/23 | U.S. Dollars | 16,000 | Brazilian Reals | 81,199 | UBS | (269) |
| 5/03/23 | U.S. Dollars | 32,000 | Brazilian Reals | 161,079 | BNP Paribas | (273) |
| 5/15/23 | New Zealand
Dollars | 78,000 | U.S. Dollars | 48,531 | UBS | (298) |
| 5/03/23 | Brazilian Reals | 157,808 | U.S. Dollars | 32,000 | Citibank | (382) |
| 5/15/23 | Euro | 59,000 | U.S. Dollars | 65,460 | BNP Paribas | (386) |
| 5/03/23 | U.S. Dollars | 32,000 | Brazilian Reals | 162,128 | Barclays | (483) |
| 6/21/23 | Euro | 140,000 | U.S. Dollars | 155,254 | JPMorgan Chase | (518) |
| 8/31/23 | U.S. Dollars | 87,919 | Mexican Pesos | 1,630,342 | State Street | (521) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 8/31/23 | U.S. Dollars | 47,880 | Mexican Pesos | 892,599 | Morgan Stanley | $ (540) |
| 6/21/23 | U.S. Dollars | 76,824 | Euro | 70,000 | Deutsche Bank | (545) |
| 6/07/23 | U.S. Dollars | 14,678 | Czech Republic Koruna | 326,148 | Morgan Stanley | (567) |
| 5/03/23 | U.S. Dollars | 16,000 | Brazilian Reals | 82,710 | Deutsche Bank | (571) |
| 5/15/23 | South Korean Won | 66,007,500 | U.S. Dollars | 50,000 | Bank of America | (629) |
| 5/15/23 | Singapore Dollars | 84,491 | U.S. Dollars | 64,000 | Bank of America | (643) |
| 5/15/23 | Japanese Yen | 3,508,416 | Euro | 24,000 | Standard Chartered Bank | (660) |
| 5/15/23 | Australian Dollars | 42,000 | U.S. Dollars | 28,478 | Morgan Stanley | (668) |
| 5/15/23 | Euro | 46,000 | Polish Zloty | 214,294 | Morgan Stanley | (704) |
| 5/15/23 | Japanese Yen | 6,428,322 | U.S. Dollars | 48,000 | Bank of America | (708) |
| 5/15/23 | Canadian Dollars | 70,723 | Euro | 48,000 | Deutsche Bank | (726) |
| 6/21/23 | Japanese Yen | 14,000,000 | U.S. Dollars | 104,327 | Deutsche Bank | (731) |
| 5/10/23 | U.S. Dollars | 34,420 | Euro | 31,966 | JPMorgan Chase | (826) |
| 5/15/23 | Norwegian Kroner | 353,218 | U.S. Dollars | 34,000 | Toronto-Dominion Bank | (829) |
| 6/21/23 | U.S. Dollars | 43,346 | Euro | 40,000 | Bank of America | (865) |
| 5/10/23 | U.S. Dollars | 21,493 | Mexican Pesos | 404,920 | Toronto-Dominion Bank | (977) |
| 6/30/23 | U.S. Dollars | 58,838 | Indonesian Rupiahs | 880,344,928 | Citibank | (1,119) |
| 6/21/23 | U.S. Dollars | 85,188 | Canadian Dollars | 117,000 | Deutsche Bank | (1,263) |
| 6/07/23 | U.S. Dollars | 26,143 | Czech Republic Koruna | 587,253 | UBS | (1,306) |
| 5/15/23 | Czech Republic Koruna | 3,174,277 | U.S. Dollars | 150,000 | Morgan Stanley | (1,464) |
| 5/15/23 | Colombian Pesos | 143,265,920 | U.S. Dollars | 32,000 | BNP Paribas | (1,626) |
| 6/30/23 | U.S. Dollars | 68,675 | Indonesian Rupiahs | 1,036,657,195 | BNP Paribas | (1,930) |
| 6/21/23 | U.S. Dollars | 60,914 | British Pounds | 50,000 | Goldman Sachs | (1,994) |
| 5/15/23 | Colombian Pesos | 156,416,400 | British Pounds | 28,000 | Morgan Stanley | (2,039) |
| 6/21/23 | U.S. Dollars | 104,780 | Euro | 96,686 | State Street | (2,084) |
| 6/07/23 | U.S. Dollars | 34,693 | Czech Republic Koruna | 792,624 | HSBC | (2,355) |
| 6/21/23 | U.S. Dollars | 110,706 | British Pounds | 90,000 | Barclays | (2,528) |
| 5/15/23 | Japanese Yen | 14,289,928 | U.S. Dollars | 108,000 | Standard Chartered Bank | (2,872) |
| 5/10/23 | U.S. Dollars | 117,057 | Colombian Pesos | 566,471,943 | Bank of America | (3,202) |
| 6/21/23 | U.S. Dollars | 96,230 | Euro | 90,000 | BNP Paribas | (3,244) |
| 6/21/23 | U.S. Dollars | 305,879 | Euro | 280,000 | Citibank | (3,596) |
| 8/31/23 | U.S. Dollars | 227,432 | Mexican Pesos | 4,259,468 | JPMorgan Chase | (3,627) |
| 6/21/23 | U.S. Dollars | 133,890 | British Pounds | 110,000 | Morgan Stanley | (4,507) |
| 6/21/23 | Japanese Yen | 14,000,000 | U.S. Dollars | 108,115 | Morgan Stanley | (4,518) |
| 6/21/23 | U.S. Dollars | 133,150 | British Pounds | 110,000 | BNP Paribas | (5,247) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 6/21/23 | Japanese Yen | 23,000,000 | U.S. Dollars | 175,725 | Barclays | $ (5,532) |
| 5/10/23 | U.S. Dollars | 132,594 | Mexican Pesos | 2,517,912 | Barclays | (7,131) |
| 6/21/23 | U.S. Dollars | 193,396 | British Pounds | 160,000 | Bank of America | (7,909) |
| 6/21/23 | U.S. Dollars | 475,056 | Euro | 440,000 | JPMorgan Chase | (11,261) |
| 6/21/23 | U.S. Dollars | 386,020 | Euro | 360,000 | Morgan Stanley | (11,875) |
| 6/21/23 | U.S. Dollars | 598,651 | Euro | 555,000 | UBS | (14,771) |
| 6/21/23 | Japanese Yen | 51,000,000 | U.S. Dollars | 393,838 | Goldman Sachs | (16,452) |
| 5/10/23 | U.S. Dollars | 491,579 | Mexican Pesos | 9,249,304 | JPMorgan Chase | (21,687) |
| Total Unrealized Depreciation | $(163,049) |
| Net Unrealized Depreciation | $ (47,257) |
Written Call Option Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 10-Year U.S. Treasury Note Future | 12 | USD | 1,382,438 | 115.50 | 5/5/2023 | $ (5,438) |
| 10-Year U.S. Treasury Note Future | 3 | USD | 345,609 | 117.50 | 5/26/2023 | (844) |
| 10-Year U.S. Treasury Note Future | 6 | USD | 691,219 | 115.00 | 5/26/2023 | (6,469) |
| 10-Year U.S. Treasury Note Future | 13 | USD | 1,497,641 | 117.00 | 5/26/2023 | (4,875) |
| 10-Year U.S. Treasury Note Future | 43 | USD | 4,953,734 | 116.50 | 5/26/2023 | (21,500) |
| 5-Year U.S. Treasury Note Future | 1 | USD | 109,742 | 109.00 | 5/26/2023 | (1,141) |
| 5-Year U.S. Treasury Note Future | 7 | USD | 768,195 | 111.00 | 5/26/2023 | (2,297) |
| 5-Year U.S. Treasury Note Future | 11 | USD | 1,207,164 | 110.50 | 5/26/2023 | (5,070) |
| 5-Year U.S. Treasury Note Future | 17 | USD | 1,865,617 | 109.75 | 5/26/2023 | (12,484) |
| U.S. Treasury Long Bond Future | 4 | USD | 526,625 | 132.00 | 5/26/2023 | (6,250) |
| U.S. Treasury Long Bond Future | 4 | USD | 526,625 | 132.50 | 5/26/2023 | (5,438) |
| U.S. Treasury Long Bond Future | 7 | USD | 921,594 | 131.00 | 5/26/2023 | (14,437) |
| U.S. Treasury Long Bond Future | 7 | USD | 921,594 | 134.00 | 5/26/2023 | (5,906) |
| Total Written Call Options Contracts (Premiums Received $100,295) | $(92,149) |
Written Put Option Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 10-Year U.S. Treasury Note Future | 9 | USD | 1,036,828 | 113.00 | 5/26/2023 | $ (1,969) |
| 10-Year U.S. Treasury Note Future | 14 | USD | 1,612,844 | 115.50 | 5/26/2023 | (15,969) |
| 10-Year U.S. Treasury Note Future | 15 | USD | 1,728,047 | 111.50 | 5/26/2023 | (938) |
| 10-Year U.S. Treasury Note Future | 23 | USD | 2,649,672 | 115.00 | 5/26/2023 | (20,125) |
| 10-Year U.S. Treasury Note Future | 59 | USD | 6,796,984 | 114.50 | 5/26/2023 | (37,797) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Written Put Option Contracts outstanding at April 30, 2023:
Exchange Traded (continued) |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| 3-Month SOFR 1-Year Mid Curve Future | 182 | USD | 43,295,525 | 95.75 | 9/15/2023 | $ (47,775) |
| 3-Month SOFR 1-Year Mid Curve Future | 108 | USD | 25,798,500 | 95.25 | 12/15/2023 | (19,575) |
| 3-Month SOFR 1-Year Mid Curve Future | 264 | USD | 63,063,000 | 95.38 | 12/15/2023 | (56,100) |
| 5-Year U.S. Treasury Note Future | 7 | USD | 768,195 | 110.00 | 5/5/2023 | (4,320) |
| 5-Year U.S. Treasury Note Future | 7 | USD | 768,195 | 109.75 | 5/26/2023 | (5,195) |
| 5-Year U.S. Treasury Note Future | 15 | USD | 1,646,133 | 110.00 | 5/26/2023 | (13,359) |
| 5-Year U.S. Treasury Note Future | 23 | USD | 2,524,071 | 108.00 | 5/26/2023 | (3,234) |
| 5-Year U.S. Treasury Note Future | 29 | USD | 3,182,524 | 109.25 | 5/26/2023 | (14,500) |
| 5-Year U.S. Treasury Note Future | 56 | USD | 6,145,563 | 109.00 | 5/26/2023 | (22,312) |
| 5-Year U.S. Treasury Note Future | 79 | USD | 8,669,634 | 109.50 | 5/26/2023 | (48,758) |
| U.S. Treasury Long Bond Future | 2 | USD | 263,313 | 129.00 | 5/26/2023 | (1,375) |
| U.S. Treasury Long Bond Future | 5 | USD | 658,282 | 130.00 | 5/26/2023 | (5,000) |
| U.S. Treasury Long Bond Future | 15 | USD | 1,974,845 | 132.00 | 5/26/2023 | (28,594) |
| Total Written Put Options Contracts (Premiums Received $448,662) | $(346,895) |
Written Call Option Contracts outstanding at April 30, 2023:
Over the Counter |
| | | | | | | | | |
| Description | Counterparty | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| Chilean Peso vs. U.S. Dollar | Bank of America | 2 | USD | 48,000 | CLP | 870.00 | 6/2/2023 | $ (162) |
| South Korean Won vs. U.S. Dollar | Standard Chartered Bank | 2 | USD | 32,000 | KRW | 1,330.00 | 5/3/2023 | (238) |
| U.S. Dollar vs. Australian Dollar | Morgan Stanley | 2 | AUD | 72,000 | USD | 0.68 | 6/16/2023 | (231) |
| U.S. Dollar vs. Euro | Deutsche Bank | 1 | EUR | 480,000 | USD | 1.15 | 7/19/2023 | (1,380) |
| Total Written OTC Call Options Contracts (Premiums Received $2,300) | $(2,011) |
Written Put Option Contracts outstanding at April 30, 2023:
Over the Counter |
| | | | | | | | | |
| Description | Counterparty | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| Brazilian Real vs. U.S. Dollar | Deutsche Bank | 2 | USD | 100,000 | BRL | 4.90 | 5/12/2023 | $ (371) |
| Chilean Peso vs. U.S. Dollar | Bank of America | 2 | USD | 48,000 | CLP | 780.00 | 6/2/2023 | (193) |
| Mexican Peso vs. U.S. Dollar | HSBC | 2 | USD | 112,000 | MXN | 17.50 | 6/16/2023 | (281) |
| U.S. Dollar vs. Euro | Goldman Sachs | 1 | EUR | 3,646,000 | USD | 1.02 | 6/29/2023 | (924) |
| Total Written OTC Put Options Contracts (Premiums Received $9,113) | $(1,769) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Written Call Interest Rate Swaption Contracts outstanding at April 30, 2023:
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 03/18/2036 | 3.12% (Semi-Annually) | 1-Day USD SOFR (Annually) | Goldman Sachs | 3/16/2026 | 3.11% | 712,000 | $ (39,719) |
| Interest Rate Swap Maturing 03/18/2036 | 3.02% (Semi-Annually) | 1-Day USD SOFR (Annually) | Goldman Sachs | 3/16/2026 | 3.02 | 815,000 | (42,152) |
| Interest Rate Swap Maturing 04/28/2036 | 3.07% (Semi-Annually) | 1-Day USD SOFR (Annually) | Deutsche Bank | 4/24/2026 | 3.07 | 695,900 | (37,460) |
| Interest Rate Swap Maturing 04/29/2036 | 2.99% (Semi-Annually) | 1-Day USD SOFR (Annually) | Barclays | 4/27/2026 | 2.99 | 811,900 | (41,006) |
| Total Written OTC Call Swaptions Contracts (Premiums Received $167,627) | $(160,337) |
Written Put Interest Rate Swaption Contracts outstanding at April 30, 2023:
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 03/18/2036 | 1-Day USD SOFR (Annually) | 3.12% (Semi-Annually) | Goldman Sachs | 3/16/2026 | 3.11% | | 712,000 | $ (33,717) |
| Interest Rate Swap Maturing 03/18/2036 | 1-Day USD SOFR (Annually) | 3.02% (Semi-Annually) | Goldman Sachs | 3/16/2026 | 3.02 | | 815,000 | (41,166) |
| Interest Rate Swap Maturing 04/28/2036 | 1-Day USD SOFR (Annually) | 3.07% (Semi-Annually) | Deutsche Bank | 4/24/2026 | 3.06 | | 695,900 | (34,586) |
| Interest Rate Swap Maturing 04/29/2036 | 1-Day USD SOFR (Annually) | 2.99% (Semi-Annually) | Barclays | 4/27/2026 | 2.99 | | 811,900 | (42,639) |
| Total Written OTC Put Swaptions Contracts (Premiums Received $167,627) | $(152,108) |
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 11.63% (Monthly) | 10/2/2023 | MXN | 11,755,000 | $ 112 | $ — | $ 112 |
| 3M CZK PRBOR (Quarterly) | 6.74% (Annually) | 6/21/2024 | CZK | 8,915,000 | 78 | — | 78 |
| 8.21% (Quarterly) | 3M ZAR JIBAR (Quarterly) | 6/21/2024 | ZAR | 4,501,000 | 488 | — | 488 |
| 0.20% (Annually) | 1-Day JPY TONAR (Annually) | 2/3/2025 | JPY | 55,288,094 | (1,202) | — | (1,202) |
| 0.21% (Annually) | 1-Day JPY TONAR (Annually) | 2/3/2025 | JPY | 55,288,093 | (1,242) | — | (1,242) |
| 3M ZAR JIBAR (Quarterly) | 7.20% (Quarterly) | 3/20/2025 | ZAR | 4,707,000 | (2,039) | — | (2,039) |
| 1-Day GBP Sterling Overnight Index Average Rate (At Maturity) | 3.85% (At Maturity) | 3/25/2025 | GBP | 1,030,000 | (4,817) | — | (4,817) |
| 3.10% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 4/22/2025 | EUR | 1,150,000 | (2,089) | 213 | (2,302) |
| 3.11% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 4/22/2025 | EUR | 40,000 | (79) | 32 | (111) |
| 3.50% (At Maturity) | 2-Day USD SOFR (At Maturity) | 4/22/2025 | USD | 430,000 | (804) | 8 | (812) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 1-Day GBP Sterling Overnight Index Average Rate (At Maturity) | 4.12% (At Maturity) | 4/25/2025 | GBP | 350,000 | $ (245) | $ 36 | $ (281) |
| 3.16% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 4/29/2025 | EUR | 510,000 | (1,357) | (292) | (1,065) |
| 3.18% (At Maturity) | 2-Day USD SOFR (At Maturity) | 4/29/2025 | USD | 420,000 | 371 | (56) | 427 |
| 2.93% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 4/30/2025 | EUR | 1,080,000 | (215) | 197 | (412) |
| 3.01% (At Maturity) | 1-Day EUR ESTR (At Maturity) | 4/30/2025 | EUR | 520,000 | (579) | (385) | (194) |
| 3M ZAR JIBAR (Quarterly) | 7.70% (Quarterly) | 6/19/2025 | ZAR | 4,980,000 | (886) | — | (886) |
| 4.62% (Quarterly) | 3M CZK PRBOR (Quarterly) | 6/19/2025 | CZK | 10,189,000 | (429) | — | (429) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 8.42% (Monthly) | 1/20/2028 | MXN | 1,953,000 | (622) | — | (622) |
| 28-Day MXN-TIIE-BANXICO (Monthly) | 8.52% (Monthly) | 3/28/2028 | MXN | 3,802,000 | (443) | — | (443) |
| 5.70% (Annually) | 6M PLN WIBOR (Semi-Annually) | 9/20/2028 | PLN | 592,000 | (2,377) | — | (2,377) |
| 6M CZK PRBOR (Semi-Annually) | 4.32% (Annually) | 9/20/2028 | CZK | 2,383,000 | (694) | — | (694) |
| 6M CZK PRBOR (Semi-Annually) | 4.54% (Annually) | 9/20/2028 | CZK | 2,031,000 | 338 | — | 338 |
| 2.85% (Annually) | 2-Day USD SOFR (Annually) | 2/15/2029 | USD | 2,329,000 | 62,401 | 8,077 | 54,324 |
| 3.27% (Annually) | 2-Day USD SOFR (Annually) | 4/30/2029 | USD | 1,815,000 | 688 | 4,476 | (3,788) |
| 3.85% (Annually) | 2-Day USD SOFR (Annually) | 6/30/2029 | USD | 5,264,000 | (156,760) | 6,062 | (162,822) |
| 3.25% (Annually) | 2-Day USD SOFR (Annually) | 9/30/2029 | USD | 2,157,000 | 2,952 | 888 | 2,064 |
| 2.00% (Annually) | 2-Day USD SOFR (Annually) | 3/18/2032 | USD | 2,112,000 | 199,394 | 15,194 | 184,200 |
| 6M EUR EURIBOR (Semi-Annually) | 2.44% (Annually) | 7/14/2032 | EUR | 157,000 | (3,048) | — | (3,048) |
| 3.15% (Annually) | 2-Day USD SOFR (Annually) | 2/14/2033 | USD | 85,804 | (553) | — | (553) |
| 0.89% (Annually) | 1-Day JPY TONAR (Annually) | 2/15/2033 | JPY | 32,506,100 | (8,386) | — | (8,386) |
| 0.90% (Annually) | 1-Day JPY TONAR (Annually) | 2/15/2033 | JPY | 97,518,300 | (26,153) | — | (26,153) |
| 0.92% (Annually) | 1-Day JPY TONAR (Annually) | 2/15/2033 | JPY | 94,155,600 | (26,495) | — | (26,495) |
| 1-Day EUR ESTR (Annually) | 2.69% (Annually) | 2/15/2033 | EUR | 76,611 | (80) | — | (80) |
| 3.28% (Annually) | 2-Day USD SOFR (Annually) | 2/24/2033 | USD | 42,741 | (497) | — | (497) |
| 1-Day EUR ESTR (Annually) | 2.95% (Annually) | 3/2/2033 | EUR | 38,573 | 404 | — | 404 |
| 3.45% (Annually) | 2-Day USD SOFR (Annually) | 3/2/2033 | USD | 42,940 | (794) | — | (794) |
| 1-Day EUR ESTR (Annually) | 2.74% (Annually) | 3/22/2033 | EUR | 36,055 | 41 | — | 41 |
| 3M CAD CIDOR (Semi-Annually) | 3.30% (Semi-Annually) | 3/27/2033 | CAD | 24,333 | (76) | 2 | (78) |
| 3M CAD CIDOR (Semi-Annually) | 3.35% (Semi-Annually) | 3/30/2033 | CAD | 49,469 | 8 | (102) | 110 |
| 3M CAD CIDOR (Semi-Annually) | 3.28% (Semi-Annually) | 4/25/2033 | CAD | 96,773 | (333) | (453) | 120 |
| 3.15% (Annually) | 2-Day USD SOFR (Annually) | 5/15/2048 | USD | 13,621,000 | (165,763) | (35,867) | (129,896) |
| 2.50% (Annually) | 2-Day USD SOFR (Annually) | 4/21/2052 | USD | 115,000 | 11,031 | 103 | 10,928 |
| 2.37% (Annually) | 2-Day USD SOFR (Annually) | 2/3/2053 | USD | 35,332 | 96 | — | 96 |
| 2.47% (Annually) | 2-Day USD SOFR (Annually) | 2/10/2053 | USD | 43,281 | (78) | — | (78) |
| 2.41% (Annually) | 2-Day USD SOFR (Annually) | 2/17/2053 | USD | 43,282 | 32 | — | 32 |
| 3.37% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 3/27/2053 | CAD | 10,544 | (13) | (2) | (11) |
| 3.40% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 3/30/2053 | CAD | 21,436 | (122) | 56 | (178) |
| 3.32% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 4/25/2053 | CAD | 41,935 | 203 | 376 | (173) |
| Total | | | | | $(130,633) | $ (1,437) | $(129,196) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Interest Rate Swap Contracts outstanding at April 30, 2023:
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-Day CLP CLICP (Semi-Annually) | 1.65% (Semi-Annually) | Bank of America | 5/28/2023 | CLP | 357,254,000 | $ (22,120) | $— | $ (22,120) |
| 12.06% (At Maturity) | 1-Day COP COOVI (At Maturity) | Citibank | 4/18/2024 | COP | 781,128,000 | 835 | — | 835 |
| 1-Day BRL BZDIO (At Maturity) | 12.60% (At Maturity) | Bank of America | 7/1/2024 | BRL | 775,150 | (119) | — | (119) |
| 1-Day BRL BZDIO (At Maturity) | 12.97% (At Maturity) | Citibank | 7/1/2024 | BRL | 461,495 | 281 | — | 281 |
| 1-Day BRL BZDIO (At Maturity) | 12.97% (At Maturity) | Goldman Sachs | 7/1/2024 | BRL | 279,086 | 167 | — | 167 |
| 11.90% (At Maturity) | 1-Day COP COOVI (At Maturity) | Bank of America | 10/19/2024 | COP | 405,074,000 | 196 | — | 196 |
| 1-Day BRL BZDIO (At Maturity) | 11.92% (At Maturity) | Citibank | 1/2/2026 | BRL | 820,099 | 845 | — | 845 |
| 1-Day BRL BZDIO (At Maturity) | 11.80% (At Maturity) | Citibank | 1/2/2026 | BRL | 578,798 | 279 | — | 279 |
| 1-Day BRL BZDIO (At Maturity) | 11.75% (At Maturity) | Citibank | 1/2/2026 | BRL | 563,000 | 107 | — | 107 |
| Total | | | | | | $(19,529) | $— | $(19,529) |
Credit Default Swap Contracts outstanding - Buy Protection as of April 30, 2023:
Centrally Cleared
| Reference Obligation | Fixed
Deal
Pay Rate | Maturity
Date | | | Notional
Amount | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Markit CDX North America High Yield Index Series 40 (Pay Quarterly) | 5.00% | 6/20/2028 | | USD | 99,000 | $ (1,993) | $ (716) | $ (1,277) |
| Markit iTraxx Europe Main Index Series (Pay Quarterly) | 1.00% | 6/20/2028 | | EUR | 480,000 | (4,871) | (3,549) | (1,322) |
| Markit iTraxx Europe Main Index Series (Pay Quarterly) | 5.00% | 6/20/2028 | | EUR | 339,450 | (12,144) | (6,510) | (5,634) |
| Total | | | | | | $(19,008) | $(10,775) | $(8,233) |
Credit Default Swap Contracts outstanding - Sell Protection as of April 30, 2023:
Centrally Cleared |
| | | | | | | | | |
| 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 40 (Pay Quarterly) | 0.75% | 1.00% | 6/20/2028 | USD | 67,669,000 | $841,401 | $ 545,409 | $295,992 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Credit Default Swap Contracts outstanding - Sell Protection as of April 30, 2023:
Centrally Cleared (continued) |
| | | | | | | | | |
| 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 40 (Pay Quarterly) | 1.12% | 1.00% | 6/20/2033 | USD | 8,240,000 | $ (70,397) | $(118,966) | $ 48,569 |
| Total | | | | | | $771,004 | $ 426,443 | $344,561 |
| (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, 2023:
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 | $ (1,920) | $ 2,754 | $ (4,674) |
| Abbott Laboartories, 3.40%, Due: 11/30/2023 (Pay Quarterly) | 1.00% | 6/20/2027 | JPMorgan Chase | USD | 129,278 | (3,250) | (2,492) | (758) |
| Federal Republic of Brazil, 4.25%, Due: 01/07/2025 (Pay Quarterly) | 1.00% | 6/20/2028 | Barclays | USD | 94,100 | 4,939 | 6,714 | (1,775) |
| Republic of Chile, 3.24%, Due: 02/06/2028 (Pay Quarterly) | 1.00% | 6/20/2028 | Bank of America | USD | 79,000 | (114) | 794 | (908) |
| Republic of Colombia, 10.38%, Due: 01/28/2033 (Pay Quarterly) | 1.00% | 6/20/2028 | Barclays | USD | 180,167 | 15,288 | 17,824 | (2,536) |
| United Mexican States, 4.15%, Due: 03/28/2027 (Pay Quarterly) | 1.00% | 6/20/2028 | Barclays | USD | 109,036 | 513 | 2,053 | (1,540) |
| Total | | | | | | $15,456 | $27,647 | $(12,191) |
Credit Default Swap Contracts outstanding - Sell Protection at April 30, 2023:
Over the Counter |
| | | | | | | | | | |
| Reference Obligation | Implied
Credit
Spread | Fixed
Deal
Receive Rate | Maturity
Date | Counterparty | | Notional
Amount | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Markit CMBX North America Index Series 14 (Pay Monthly) | 0 | 3.0% | 12/16/2072 | Goldman Sachs | USD | 40,000 | $ (10,641) | $ (6,834) | $ (3,807) |
| Total | | | | | | | $(10,641) | $(6,834) | $(3,807) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Total Return Bond Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ — | $ 35,468,599 | $ — | $ 35,468,599 |
| Corporate Bonds | — | 148,816,962 | 111,673 | 148,928,635 |
| Foreign Issuer Bonds | — | 48,898,003 | — | 48,898,003 |
| Mortgage-Backed Securities | — | 266,651,378 | — | 266,651,378 |
| Municipal Bonds | — | 2,261,734 | — | 2,261,734 |
| Term Loans | — | 862,922 | — | 862,922 |
| U.S. Government Obligations | — | 95,730,534 | — | 95,730,534 |
| Investment Companies | 221,581,433 | — | — | 221,581,433 |
| Short-Term Investments | 56,822,503 | 10,431,093 | — | 67,253,596 |
| Purchased Options | 320,253 | 512,115 | — | 832,368 |
| Total Assets – Investments at value | $278,724,189 | $609,633,340 | $111,673 | $888,469,202 |
| Liabilities: | | | | |
| Mortgage-Backed Securities | $ — | $ (16,799,556) | $ — | $ (16,799,556) |
| U.S. Government Obligations | — | (5,240,306) | — | (5,240,306) |
| Total Liabilities – Investments at value | $ — | $ (22,039,862) | $ — | $ (22,039,862) |
| Net Investments | $278,724,189 | $587,593,478 | $111,673 | $866,429,340 |
| Morningstar Total Return Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $ 738,020 | $ — | $— | $ 738,020 |
| Forward Foreign Currency Exchange Contracts | — | 115,792 | — | 115,792 |
| Swap Agreements | — | 1,143,488 | — | 1,143,488 |
| Total Assets - Derivative Financial Instruments | $ 738,020 | $ 1,259,280 | $— | $ 1,997,300 |
| Liabilities: | | | | |
| Futures Contracts | $(1,125,086) | $ — | $— | $(1,125,086) |
| Forward Foreign Currency Exchange Contracts | — | (163,049) | — | (163,049) |
| Written Options | (439,044) | (316,225) | — | (755,269) |
| Swap Agreements | — | (536,839) | — | (536,839) |
| Total Liabilities - Derivative Financial Instruments | $(1,564,130) | $(1,016,113) | $— | $(2,580,243) |
| Net Derivative Financial Instruments | $ (826,110) | $ 243,167 | $— | $ (582,943) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Municipal Bond Fund
| | | Par | Value |
| Municipal Bonds – 85.2% |
| Alabama – 3.0% |
| Alabama State Corrections Institution Finance Authority Revenue Bonds, 5.25%, 7/01/47 | | $ 500,000 | $ 542,569 |
| Black Belt Energy Gas District Gas Prepay Revenue Bonds, Series A-1, Project No. 4, 4.00%, 6/01/25 | | 990,000 | 992,541 |
| Black Belt Energy Gas District Gas Prepay Revenue Bonds, Series A-1, Project No. 5, 4.00%, 10/01/26(a)(b)(c) | | 525,000 | 525,905 |
| Black Belt Energy Gas District Gas Project Revenue Bonds, Series C-1, 5.25%, 6/01/29(a)(b)(c) | | 1,030,000 | 1,094,192 |
| Black Belt Energy Gas District Gas Supply Revenue Refunding Bonds, 4.00%, 12/01/31(a)(b)(c) | | 500,000 | 501,679 |
| Black Belt Energy Gas District Project Variable Revenue Bonds, Series B-2, (SIFMA Municipal Swap Index Yield + 0.65%), 4.51%, 10/01/27(a)(c) | | 250,000 | 241,314 |
| Black Belt Energy Gas District Revenue Bonds, Project No. 7, 4.00%, 12/01/26(a)(b)(c) | | 2,110,000 | 2,103,887 |
| Jefferson County Sewer Warrants Senior Lien Revenue Bonds, Series A (AGM Insured), 5.50%, 10/01/53 | | 300,000 | 307,371 |
| Lower Alabama Gas District Gas Project Revenue Bonds, 4.00%, 12/01/25(a)(b)(c) | | 500,000 | 499,932 |
| Mobile Industrial Development Board PCR Bonds, Alabama Power Company Barry Plant Project, 1.00%, 6/26/25(a)(b)(c) | | 1,000,000 | 948,875 |
| Southeast Alabama State Gas Supply District Revenue Bonds, Series A, Project No. 2, 4.00%, 6/01/24(a)(b)(c) | | 600,000 | 600,521 |
| | | Par | Value |
| Alabama (Continued) |
| Southeast Energy Authority Commodity Supply Revenue Bonds, Series B-1, Project No. 4, 5.00%, 8/01/28(a)(b)(c) | | $150,000 | $ 156,303 |
| Tuscaloosa County IDA Gulf Opportunity Zone Revenue Refunding Bonds, Series A, Hunt Refining Project, 5.25%, 5/01/44(d) | | 410,000 | 361,545 |
| University of South Alabama University Revenue Bonds (BAM Insured), 5.00%, 4/01/27 | | 375,000 | 403,701 |
| University of West Alabama University Revenue Refunding Bonds (AGM Insured), 5.00%, 1/01/27 | | 505,000 | 534,772 |
| | | | 9,815,107 |
| Alaska – 0.2% |
| Alaska State Municipal Bond Bank Authority Revenue Bonds, Series 2 (AMT), 5.00%, 12/01/29 | | 590,000 | 648,347 |
| Arizona – 0.8% |
| Arizona State IDA Education Revenue Bonds, Series B, Jerome Facilities Project, Social Bonds, 4.00%, 7/01/51 | | 175,000 | 142,936 |
| Maricopa County Industrial Development Authority Revenue Bonds, Series A, Banner Health, 4.00%, 1/01/41 | | 250,000 | 245,085 |
| Phoenix Civic Improvement Corp., Airport Senior Lien Revenue Refunding Bonds (AMT), | | | |
| 5.00%, 7/01/28 | | 490,000 | 490,812 |
| 5.00%, 7/01/30 | | 250,000 | 250,436 |
|
| Pima County IDA Education Revenue Facility Revenue Bonds, Paideia Academies Project, 6.13%, 7/01/45(d) | | 240,000 | 240,624 |
| Pima County IDA Education Revenue Refunding Bonds, Series A, 4.00%, 12/15/24(d) | | 260,000 | 256,785 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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 | $ 463,055 |
| Salt River Project Agricultural Improvement & Power District Electric System Revenue Refunding Bonds, Series A, 5.00%, 12/01/45 | | 500,000 | 516,952 |
| | | | 2,606,685 |
| Arkansas – 0.1% |
| Bentonville Sales & Use Tax Revenue Refunding Bonds, Series B, 1.05%, 11/01/46 | | 385,000 | 376,736 |
| California – 6.9% |
| Bay Area Toll Authority Toll Bridge Variable Revenue Bonds, San Francisco Bay Area, (SIFMA Municipal Swap Index Yield + 0.00%), 4.76%, 4/01/45 | | 700,000 | 700,000 |
| Bay Area Toll Bridge Authority Variable Revenue Refunding Bonds, San Francisco Bay, (SIFMA Municipal Swap Index Yield + 0.45%), 4.31%, 4/01/26(a)(c) | | 2,000,000 | 1,981,843 |
| California Community Choice Financing Authority Variable Revenue Bonds, Clean Energy Project, Green Bonds, 5.00%, 10/01/30 | | 450,000 | 465,631 |
| California HFA Municipal Certificates Revenue Bonds, Series 2, Class A, 4.00%, 3/20/33 | | 236,666 | 236,193 |
| California PFA Revenue Refunding Bonds, Henry Mayo Newhall Hospital, 5.00%, 10/15/47 | | 580,000 | 581,914 |
| California State GO Unlimited Bonds, 4.25%, 9/01/52 | | 125,000 | 126,361 |
| California State GO Unlimited Refunding Bonds, 4.00%, 11/01/37 | | 1,400,000 | 1,455,778 |
| | | Par | Value |
| California (Continued) |
| California State Health Facilities Financing Authority Revenue Refunding Bonds, Cedars Sinai Health System, 5.00%, 8/15/51 | | $ 550,000 | $ 595,975 |
| California State Infrastructure & Economic Development Bank National Charter Equitable School Revolving Fund Revenue Bonds, 5.00%, 11/01/57 | | 100,000 | 103,124 |
| 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 | 1,408,534 |
| California State Municipal Finance Authority Refunding COPS, Series A, Palomar Health (AGM Insured), 5.25%, 11/01/52 | | 110,000 | 117,133 |
| California State Municipal Finance Authority Revenue Bonds, Charter School John Adams Academies-Lincoln Project, 5.00%, 10/01/57(d) | | 330,000 | 292,163 |
| California State Municipal Finance Authority Revenue Refunding Bonds, Series A, Eisenhower Medical Center, 5.00%, 7/01/25 | | 650,000 | 667,293 |
| California State Municipal Finance Authority Senior Living Revenue Bonds, Mt. San Antonio Garden, 2.12%, 11/15/26 | | 250,000 | 227,723 |
| California State Municipal Finance Authority Senior Living Revenue Refunding Bonds, Mt. San Antonio Gardens Project, 5.00%, 11/15/39 | | 300,000 | 281,053 |
| California State Municipal Finance Authority Student Housing Revenue Bonds, CHF-Davis I, LLC-West Village, 5.00%, 5/15/36 | | 1,130,000 | 1,180,465 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| California (Continued) |
| California State Municipal Finance Authority Student Housing Revenue Bonds, Series A-P3, Claremont Colleges Project, 5.00%, 7/01/30(d) | | $320,000 | $320,483 |
| California State Municipal Finance Authority Student Housing Revenue Bonds, UCR North District Phase 1 (BAM Insured), 5.00%, 5/15/28 | | 500,000 | 542,424 |
| California State School Finance Authority Charter School Revenue Bonds, Series A, John Adams Academies, 5.00%, 7/01/52(d) | | 520,000 | 464,445 |
| California State University Systemwide Revenue Bonds, Series C, 4.00%, 11/01/45 | | 200,000 | 196,675 |
| California Statewide Communities Development Authority Revenue Bonds, Lancer Educational Standard Housing Project, 5.00%, 6/01/34(d) | | 375,000 | 370,591 |
| California Statewide Communities Development Authority Revenue Bonds, Loma Linda University Medical, 5.50%, 12/01/58(d) | | 500,000 | 496,848 |
| California Statewide Communities Development Authority Revenue Bonds, Series A, Enloe Medical Center (AGM Insured), 5.25%, 8/15/52 | | 450,000 | 482,524 |
| California Statewide Communities Development Authority Revenue Bonds, Series A, Loma Linda University Medical Center, 5.25%, 12/01/56(d) | | 250,000 | 239,341 |
| California Statewide Communities Development Authority Special Assessment Bonds, Statewide Community Infrastructure Program, 5.00%, 9/02/34 | | 100,000 | 105,091 |
| | | Par | Value |
| California (Continued) |
| California Tobacco Securitization Agency Tobacco Settlement Senior Revenue Refunding Bonds, Series A, 4.00%, 6/01/40 | | $ 300,000 | $ 295,689 |
| Cathedral City Redevelopment Agency Successor Agency Tax Allocation Revenue Refunding Bonds, Merged Redevelopment Project Area (BAM Insured), 4.00%, 8/01/26 | | 250,000 | 257,103 |
| Compton Community Redevelopment Agency Successor Agency Tax Allocation Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 8/01/42 | | 250,000 | 275,207 |
| CSCDA Community Improvement Authority Essential Housing Mezzanine Lien Revenue Bonds, City of Orange, 4.00%, 3/01/57(d) | | 200,000 | 141,702 |
| Foothill Eastern Transportation Corridor Agency Toll Road Junior Lien Revenue Bonds, Series C, 5.00%, 1/15/26 | | 200,000 | 206,896 |
| Foothill Eastern Transportation Corridor Agency Toll Road Junior Lien Revenue Refunding Bonds, Series C, 4.00%, 1/15/43 | | 250,000 | 240,742 |
| Fresno Airport Revenue Refunding Bonds, Series B (AMT) (BAM Insured), 5.00%, 7/01/28 | | 390,000 | 390,679 |
| Los Angeles Department of Airports Airport Subordinate Revenue Bonds (AMT), Los Angeles International Airport, 5.00%, 5/15/34 | | 510,000 | 531,192 |
| Los Angeles Department of Airports Airport Subordinate Revenue Bonds, Series C (AMT), Los Angeles International Airport, 5.00%, 5/15/29 | | 1,000,000 | 1,072,548 |
| Los Angeles Department of Airports Subordinate Revenue Bonds, Series A (AMT), Private Activity, 4.00%, 5/15/41 | | 1,000,000 | 972,661 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| California (Continued) |
| Mesa Water District COPS, 4.00%, 3/15/39 | | $300,000 | $ 308,518 |
| Newman-Crows Landing Unified School District GO Unlimited CABS, 0.00%, 8/01/25(e) | | 250,000 | 230,853 |
| Port of Oakland Intermediate Lien Revenue Refunding Bonds (AMT), 5.00%, 11/01/29 | | 250,000 | 275,367 |
| Rocklin Community Facilities District No. 10 Special Tax Bonds, 5.00%, 9/01/34 | | 150,000 | 154,823 |
| Sacramento Railyards Community Facilities District No. 2018 Special Tax Bonds, 5.25%, 9/01/47(d) | | 550,000 | 558,305 |
| San Diego County Regional Airport Authority Subordinate Revenue Refunding Bonds, Series A, 4.00%, 7/01/37 | | 300,000 | 308,686 |
| San Diego County Regional Airport Authority Subordinate Revenue Refunding Bonds, Series B (AMT), 5.00%, 7/01/39 | | 525,000 | 552,804 |
| San Francisco City & County Airports Commission International Airport Revenue Bonds, Series A (AMT), 5.00%, 5/01/44 | | 250,000 | 260,117 |
| San Mateo Foster City School District GO Unlimited Bonds, Series B, 4.00%, 8/01/48 | | 500,000 | 500,472 |
| Sunnyvale Financing Authority Lease Revenue Bonds, Civic Center Project, Green Bonds, 4.00%, 4/01/34 | | 865,000 | 937,505 |
| Susanville Natural Gas Revenue Refunding Bonds, Natural Gas Enterprise (AGM Insured), 3.00%, 6/01/26 | | 595,000 | 598,461 |
| Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Refunding Bonds, San Diego Asset Securities, 5.00%, 6/01/35 | | 100,000 | 108,305 |
| | | | 22,818,240 |
| | | Par | Value |
| Colorado – 3.5% |
| Aurora Crossroads Metropolitan District No. 2 Senior Lien GO Limited Bonds, Series A, 5.00%, 12/01/40 | | $ 500,000 | $ 466,375 |
| Colorado Educational & Cultural Authority Revenue Refunding Bonds, Prospect Ridge Academy Project (Moral Obligation Insured), | | | |
| 5.00%, 3/15/25 | | 485,000 | 498,051 |
| 5.00%, 3/15/26 | | 510,000 | 531,513 |
| 5.00%, 3/15/29 | | 590,000 | 642,995 |
| 5.00%, 3/15/30 | | 310,000 | 341,268 |
| 5.00%, 3/15/35 | | 590,000 | 638,685 |
|
| Colorado High Performance Transportation Enterprise Revenue Bonds, C-470 Express Lane, 5.00%, 12/31/56 | | 1,000,000 | 971,377 |
| Colorado State Bridge Enterprise Revenue Bonds (AMT), Central 70 Project, 4.00%, 12/31/24 | | 630,000 | 632,781 |
| Colorado State COPS, | | | |
| 6.00%, 12/15/40 | | 1,000,000 | 1,211,764 |
| 6.00%, 12/15/41 | | 500,000 | 603,694 |
| Colorado State COPS, Series A, | | | |
| 4.00%, 12/15/35 | | 1,250,000 | 1,300,268 |
| 4.00%, 12/15/36 | | 200,000 | 205,969 |
|
| Colorado State Health Facilities Authority Revenue Refunding Bonds, Parkview Medical Center, Inc., Project, Series B, 5.00%, 9/01/29 | | 1,000,000 | 1,032,900 |
| Denver City & County Airport Revenue Refunding Bonds, Series D (AMT), | | | |
| 5.00%, 11/15/24 | | 500,000 | 510,980 |
| 5.75%, 11/15/41 | | 325,000 | 373,671 |
|
| Denver City & County Airport System Subordinate Revenue Refunding Bonds, Series A (AMT), 5.25%, 12/01/43 | | 500,000 | 524,346 |
| Denver Convention Center Hotel Authority Senior Revenue Refunding Bonds, 5.00%, 12/01/40 | | 250,000 | 249,122 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Colorado (Continued) |
|
| Park Creek Metropolitan District Revenue Refunding Bonds, Series A (NATL, IBC Insured), 5.00%, 12/01/45 | | $ 500,000 | $ 508,750 |
| Public Authority for Colorado State Energy Natural Gas Purchase Revenue Bonds, 6.50%, 11/15/38 | | 250,000 | 299,421 |
| | | | 11,543,930 |
| Connecticut – 1.4% |
| Bridgeport GO Unlimited Bonds, Series A, 5.00%, 8/01/27 | | 275,000 | 298,302 |
| Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series K, Sacred Heart University, 5.00%, 7/01/27 | | 400,000 | 431,041 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Forward Delivery, Stamford Hospital Issue, 4.00%, 7/01/42 | | 250,000 | 234,303 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series B-1, 5.00%, 1/01/25(a)(b)(c) | | 500,000 | 513,627 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series F, Masonicare Issue, 5.00%, 7/01/27 | | 220,000 | 221,135 |
| Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, University of Hartford, | | | |
| 5.00%, 7/01/24 | | 240,000 | 240,574 |
| 5.00%, 7/01/25 | | 260,000 | 263,295 |
| 5.00%, 7/01/31 | | 500,000 | 517,719 |
| 4.00%, 7/01/39 | | 120,000 | 104,613 |
| 4.00%, 7/01/49 | | 100,000 | 78,219 |
|
| Connecticut State HFA Mortgage Finance Program Variable Revenue Bonds, Series A-4, Social Bonds, (SIFMA Municipal Swap Index Yield + 0.30%), 4.16%, 11/15/24(a)(c) | | 1,000,000 | 992,294 |
| | | Par | Value |
| Connecticut (Continued) |
|
| Hamden GO Unlimited Refunding Bonds, Series A (BAM Insured), 5.00%, 8/01/24 | | $ 500,000 | $ 509,935 |
| Hamden Revenue Refunding Bonds, Whitney Center Project, 5.00%, 1/01/40 | | 125,000 | 109,778 |
| | | | 4,514,835 |
| Delaware – 0.1% |
| Kent County Student Housing & Dining Facilities Revenue Bonds, CHF-Dover LLC-Delaware State University Project, | | | |
| 5.00%, 7/01/32 | | 250,000 | 253,197 |
| 5.00%, 7/01/48 | | 100,000 | 92,327 |
| | | | 345,524 |
| District of Columbia – 1.4% |
| District of Columbia Hospital Revenue Refunding Bonds, Children's Hospital, 5.00%, 7/15/44 | | 300,000 | 305,294 |
| District of Columbia Revenue Bonds, Ingleside Rock Creek Project, 5.00%, 7/01/52 | | 400,000 | 332,331 |
| District of Columbia Revenue Bonds, KIPP DC Project, 4.00%, 7/01/39 | | 100,000 | 92,769 |
| District of Columbia University Revenue Refunding Bonds, Georgetown University, 5.00%, 4/01/29 | | 350,000 | 375,919 |
| 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 | 357,564 |
| Metropolitan Washington Airports Authority System Revenue Refunding Bonds, Series A (AMT), | | | |
| 5.00%, 10/01/25 | | 1,000,000 | 1,038,641 |
| 5.00%, 10/01/43 | | 500,000 | 518,935 |
| 5.00%, 10/01/46 | | 500,000 | 526,025 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| District of Columbia (Continued) |
|
| Washington Metropolitan Area Transit Authority Dedicated Revenue Bonds, Series A, Green Bonds, 5.50%, 7/15/51 | | $ 525,000 | $ 604,038 |
| Washington Metropolitan Area Transit Authority Gross Revenue Bonds, 5.00%, 7/01/43 | | 300,000 | 315,384 |
| | | | 4,466,900 |
| Florida – 4.2% |
| Alachua County Health Facilities Authority Revenue Bonds, Shands Teaching Hospital & Clinics, 5.00%, 12/01/44 | | 500,000 | 500,965 |
| Broward County Airport System Revenue Bonds, Series A (AMT), 5.00%, 10/01/36 | | 750,000 | 802,156 |
| Capital Trust Agency Sustainability Revenue Bonds, The Marie, 4.00%, 6/15/24(d) | | 105,000 | 103,899 |
| Central Florida Expressway Authority Senior Lien Revenue Refunding Bonds, 5.00%, 7/01/42 | | 350,000 | 367,921 |
| Collier County Water-Sewer District Revenue Bonds, 4.00%, 7/01/40 | | 500,000 | 503,100 |
| Florida State Board of Education Public Education GO Unlimited Refunding Bonds, Capital Outlay, Series E, 5.00%, 6/01/31 | | 1,000,000 | 1,043,747 |
| Florida State Municipal Power Agency Revenue Refunding Bonds, Series A, 5.00%, 10/01/31 | | 300,000 | 318,222 |
| Greater Orlando Aviation Authority Airport Facilities Revenue Bonds, Series A (AMT), 5.00%, 10/01/40 | | 500,000 | 507,811 |
| JEA Electric System Revenue Refunding Bonds, Series Three A, 4.00%, 10/01/37 | | 1,395,000 | 1,410,647 |
| Lee County IDA Healthcare Facilities Revenue Bonds, Shell Point/Waterside Health Project, 5.00%, 11/15/39 | | 300,000 | 293,067 |
| Lee County Local Optional Gas TRB, 5.25%, 8/01/49 | | 355,000 | 387,429 |
| | | Par | Value |
| Florida (Continued) |
| Lee Memorial Health System Hospital Revenue Refunding Bonds, Series A-1, 5.00%, 4/01/44 | | $600,000 | $625,236 |
| Leon County School District Sales TRB, 4.00%, 9/01/26 | | 800,000 | 802,687 |
| Miami-Dade County Aviation Revenue Bonds, Series A (AMT), 5.00%, 10/01/49 | | 500,000 | 514,205 |
| Miami-Dade County Aviation Revenue Refunding Bonds, Series A (AMT), 5.00%, 10/01/33 | | 500,000 | 506,667 |
| Miami-Dade County COPS, Series A, Prerefunded, 5.00%, 5/01/24(a)(b)(c)(f) | | 300,000 | 304,606 |
| Miami-Dade County Educational Facilities Authority Revenue Refunding Bonds, Series A, University of Miami, 5.00%, 4/01/30 | | 250,000 | 258,407 |
| Miami-Dade County Seaport Revenue Refunding Bonds, Series A (AMT), Senior Bonds, 5.25%, 10/01/52 | | 500,000 | 534,161 |
| Miami-Dade County, Florida Aviation Revenue Refunding Bonds, Series A (AMT), 5.00%, 10/01/34 | | 290,000 | 293,548 |
| Osceola County Florida Transportation Revenue Refunding CABS, Series A-2, | | | |
| 0.00%, 10/01/25(e) | | 125,000 | 112,486 |
| 0.00%, 10/01/26(e) | | 275,000 | 236,709 |
| 0.00%, 10/01/27(e) | | 360,000 | 295,948 |
|
| Polk County Utility System Revenue Refunding Bonds, 4.00%, 10/01/43 | | 400,000 | 393,553 |
| Sarasota County Public Hospital District Revenue Bonds, Sarasota Memorial Hospital Project, 5.00%, 7/01/52 | | 250,000 | 262,990 |
| Tampa Hospital Revenue Bonds, H. Lee Moffitt Cancer Center, | | | |
| 5.00%, 7/01/25 | | 150,000 | 155,255 |
| 5.00%, 7/01/26 | | 125,000 | 131,475 |
| 5.00%, 7/01/27 | | 125,000 | 133,488 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Florida (Continued) |
|
| Village Community Development District No. 13 Special Assessment Bonds, Limited Offering, 2.62%, 5/01/24 | | $245,000 | $ 240,918 |
| Village Community Development District No. 14 Special Assessment Revenue Bonds, 5.50%, 5/01/53 | | 240,000 | 234,014 |
| Volusia County Educational Facilities Authority Revenue Refunding Bonds, Embry-Riddle Aeronautical, 5.00%, 10/15/44 | | 500,000 | 525,596 |
| Wildwood Utility Dependent District Senior Lien Revenue Bonds, South Sumter Utility Project (BAM Insured), 5.00%, 10/01/41 | | 465,000 | 505,970 |
| Wildwood Utility Dependent District Subordinate Revenue Bonds, South Sumter Utility Project (BAM Insured), 5.00%, 10/01/36 | | 400,000 | 456,255 |
| | | | 13,763,138 |
| Georgia – 2.2% |
| Atlanta Airport Passenger Facility Charge Subordinate Revenue Bonds, Series C, 5.00%, 7/01/40 | | 365,000 | 409,415 |
| Atlanta Development Authority Senior Lien Revenue Bonds, Series A-1, 5.00%, 7/01/30 | | 200,000 | 208,681 |
| Bartow County Development Authority Revenue Refunding Bonds, Georgia Power Company Plant Bowen Project, 1.80%, 9/01/29 | | 250,000 | 211,861 |
| Fulton County Development Authority Transportation Corp., Toll Revenue Refunding Bonds, Robert W. Woodruff Arts Center, Inc., Project, 5.00%, 3/15/32 | | 200,000 | 221,079 |
| | | Par | Value |
| Georgia (Continued) |
| Gainesville & Hall County Hospital Authority Revenue Refunding Bonds, Northeast Georgia Health System, Inc., Project, 5.00%, 2/15/37 | | $ 500,000 | $ 528,607 |
| Glynn-Brunswick Memorial Hospital Authority Revenue Refunding Anticipation Certificates Bonds, Southeast Georgia Health System, 5.00%, 8/01/34 | | 530,000 | 543,219 |
| Griffin-Spalding County Hospital Authority Revenue Anticipation Certificates Bonds, Wellstar, 5.00%, 4/01/35 | | 150,000 | 157,843 |
| Main Street Natural Gas, Inc. Gas Supply Revenue Bonds, Series C, 4.00%, 11/01/27(a)(d) | | 1,000,000 | 961,842 |
| Main Street Natural Gas, Inc., Gas Supply Revenue Bonds, Series A, 4.00%, 9/01/27(a)(b)(c) | | 1,625,000 | 1,632,186 |
| Main Street Natural Gas, Inc., Gas Supply Revenue Bonds, Series B, | | | |
| 5.00%, 6/01/29(a)(b)(c) | | 200,000 | 209,847 |
| 5.00%, 3/01/30(a)(b)(c) | | 335,000 | 357,920 |
|
| Main Street Natural Gas, Inc., Gas Supply Variable Revenue Bonds, Series B, 4.00%, 12/02/24(a)(b)(c) | | 100,000 | 100,493 |
| Municipal Electric Authority of Georgia Power Revenue Refunding Bonds, Series HH, 5.00%, 1/01/29 | | 500,000 | 541,484 |
| Municipal Electric Authority of Georgia Revenue Bonds, Plant Vogtle Units 3&4 Project (AGM Insured), 5.00%, 7/01/55 | | 250,000 | 261,681 |
| Private Colleges & Universities Authority Revenue Refunding Bonds, Series B, Emory University, 4.00%, 9/01/40 | | 1,000,000 | 1,011,882 |
| | | | 7,358,040 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Guam – 0.1% |
| Guam Government Business Privilege Tax Revenue Refunding Bonds, Series F, 4.00%, 1/01/42 | | $250,000 | $224,322 |
| Illinois – 7.1% |
| Chicago Board of Education GO Unlimited Bonds, Series A, | | | |
| 5.00%, 12/01/38 | | 500,000 | 509,028 |
| 5.00%, 12/01/42 | | 250,000 | 248,446 |
|
| Chicago Board of Education GO Unlimited Bonds, Series D, 5.00%, 12/01/46 | | 350,000 | 343,910 |
| Chicago City Colleges Capital Appreciation GO Unlimited Bonds (NATL Insured), 0.00%, 1/01/30(e) | | 750,000 | 574,359 |
| Chicago GO Unlimited Bonds, Project & Refunding Series A, 5.25%, 1/01/30 | | 500,000 | 502,863 |
| Chicago GO Unlimited Bonds, Series A, 5.50%, 1/01/49 | | 100,000 | 104,132 |
| Chicago GO Unlimited Bonds, Series A, Chicago Works, 5.50%, 1/01/39 | | 250,000 | 272,372 |
| Chicago Heights Multifamily Variable Revenue Bonds, Olympic Village Apartments Project (FHA Insured, Housing & Urban Development Sector 8 Program), 2.87%, 8/01/25(a)(b)(c) | | 500,000 | 487,890 |
| Chicago O'Hare International Airport Passenger Facility Charge Revenue Refunding Bonds (AMT), 5.00%, 1/01/32 | | 500,000 | 500,333 |
| Chicago O'Hare International Airport Senior Lien General Revenue Bonds, Series D (AMT), 5.00%, 1/01/26 | | 140,000 | 144,992 |
| Chicago O'Hare International Airport Senior Lien Revenue Refunding Bonds (AMT), 5.00%, 1/01/28 | | 680,000 | 724,938 |
| | | Par | Value |
| Illinois (Continued) |
|
| Chicago O'Hare International Airport Senior Lien Revenue Refunding Bonds, Series A (AMT), 5.00%, 1/01/31 | | $ 250,000 | $ 270,777 |
| Chicago Park District GO Limited Tax Refunding Bonds, Series B, 5.00%, 1/01/26 | | 395,000 | 398,544 |
| Chicago Special Assessment Refunding Bonds, Lakeshore East Project, 2.87%, 12/01/27(d) | | 254,000 | 238,309 |
| Chicago Transit Authority Sales Tax Receipts Revenue Bonds, 5.25%, 12/01/49 | | 495,000 | 502,285 |
| Chicago Wastewater Transmission Second Lien Revenue Bonds, 5.00%, 1/01/39 | | 500,000 | 501,228 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, 4.00%, 7/15/39 | | 250,000 | 253,126 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, Bradley University Project, 4.00%, 8/01/43 | | 250,000 | 219,841 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, Lutheran Communities, 5.00%, 11/01/40 | | 350,000 | 298,536 |
| Illinois State Finance Authority Revenue Refunding Bonds, Series A, The Carle Foundation, 5.00%, 2/15/45 | | 250,000 | 255,337 |
| Illinois State Finance Authority Variable Revenue Bonds, Series B-2, 5.00%, 11/15/26(a)(b)(c) | | 925,000 | 967,929 |
| Illinois State GO Unlimited Bonds, | | | |
| 5.50%, 5/01/25 | | 845,000 | 877,083 |
| 5.50%, 7/01/26 | | 460,000 | 461,847 |
| 5.25%, 7/01/28 | | 790,000 | 792,805 |
| Illinois State GO Unlimited Bonds, Series B, | | | |
| 5/01/30 (g) | | 1,500,000 | 1,660,199 |
| 5.00%, 10/01/31 | | 250,000 | 277,350 |
| 5/01/47 (g) | | 100,000 | 109,395 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Illinois (Continued) |
|
| Illinois State GO Unlimited Refunding Bonds, 5.00%, 2/01/26 | | $ 60,000 | $ 62,486 |
| Illinois State GO Unlimited Refunding Bonds, Series A, 5.00%, 10/01/25 | | 110,000 | 113,903 |
| Illinois State GO Unlimited Refunding Bonds, Series B, 5.00%, 10/01/28 | | 250,000 | 271,554 |
| Illinois State Housing Development Authority MFH Variable Revenue Bonds, Marshall Field Garden (FNMA LOC), (SIFMA Municipal Swap Index Yield + 1.00%), 4.86%, 5/15/25(a)(c) | | 500,000 | 499,897 |
| Illinois State Sales Tax Revenue Refunding Bonds, Subseries D (BAM, TCRS Insured), 3.00%, 6/15/31 | | 390,000 | 378,544 |
| Illinois State Sports Facilities Authority State Tax Supported Revenue CABS (AMBAC Insured), 0.00%, 6/15/25(e) | | 95,000 | 86,966 |
| Illinois State Sports Facilities Authority State Tax Supported Revenue Refunding Bonds (AGM Insured), 5.00%, 6/15/27 | | 400,000 | 405,445 |
| Illinois State Toll Highway Authority Revenue Bonds, Series A, 5.00%, 1/01/46 | | 750,000 | 808,581 |
| Illinois State Toll Highway Authority Senior Revenue Bonds, Series A, | | | |
| 5.00%, 1/01/40 | | 500,000 | 551,427 |
| 5.00%, 1/01/45 | | 250,000 | 272,061 |
|
| Illinois State Toll Highway Authority Senior Revenue Refunding Bonds, Series A, 5.00%, 1/01/31 | | 525,000 | 592,572 |
| Kane, Cook & Dupage Counties, Illinois School District, GO Unlimited Refunding Bonds, Series D, 5.00%, 1/01/28 | | 215,000 | 216,657 |
| Metropolitan Pier & Exposition Authority Dedicated Capital Appreciation Tax Revenue Refunding Bonds, Series B, McCormick Project (AGM Insured), 0.00%, 6/15/26(e) | | 250,000 | 224,303 |
| | | Par | Value |
| Illinois (Continued) |
| Metropolitan Pier & Exposition Authority Revenue Refunding Bonds, McCormick Place Expansion, | | | |
| 4.00%, 12/15/42 | | $375,000 | $343,212 |
| 4.00%, 6/15/52 | | 245,000 | 210,161 |
| Metropolitan Pier & Exposition Authority Revenue Refunding Bonds, McCormick Place Expansion Project, | | | |
| 5.00%, 6/15/42 | | 500,000 | 513,023 |
| 5.00%, 6/15/50 | | 500,000 | 505,022 |
|
| Metropolitan Pier & Exposition Authority Revenue Refunding CABS, McCormick Place Expansion, 0.00%, 12/15/35(e) | | 150,000 | 86,714 |
| Northern University Board of Trustees Revenue Bonds, Auxiliary Facilities System (BAM Insured), | | | |
| 5.00%, 10/01/25 | | 325,000 | 337,635 |
| 5.00%, 10/01/26 | | 250,000 | 263,195 |
|
| Peoria County School District No. 150 GO Unlimited Refunding Bonds, Series A (AGM Insured), 4.00%, 12/01/26 | | 390,000 | 405,323 |
| Regional Transportation Authority Revenue Bonds, Series B (NATL Insured), 5.50%, 6/01/27 | | 350,000 | 374,872 |
| Sales Tax Securitization Corp., Second Lien Revenue Refunding Bonds, Series A, 4.00%, 1/01/38 | | 250,000 | 248,252 |
| Sangamon Logan & Menard Counties Community Unit School District No. 15 GO Unlimited Bonds, Series B (BAM Insured), | | | |
| 5.00%, 12/01/25 | | 300,000 | 313,303 |
| 4.00%, 12/01/39 | | 250,000 | 251,427 |
|
| Springfield Illinois Electric Senior Lien Revenue Refunding Bonds, 5.00%, 3/01/29 | | 590,000 | 604,685 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Illinois (Continued) |
| Waukegan City Lake County Water & Sewer System Revenue Refunding Bonds (AGM Insured), | | | |
| 5.00%, 12/30/26 | | $ 200,000 | $ 215,142 |
| 4.00%, 12/30/38 | | 500,000 | 508,064 |
| 4.00%, 12/30/40 | | 500,000 | 504,118 |
|
| Waukegan GO Unlimited Bonds, Series A (AGM Insured), 5.00%, 12/30/32 | | 250,000 | 257,823 |
| Will County Community High School District No. 210 Lincoln-Way Refunding GO Unlimited Refunding Bonds (AGM Insured), 4.00%, 1/01/34 | | 650,000 | 669,880 |
| | | | 23,594,101 |
| Indiana – 2.2% |
| Fort Wayne Redevelopment Authority Lease Rental Revenue Refunding Bonds, Grand Wayne Center Project (State Intercept Program), 4.00%, 2/01/26 | | 760,000 | 781,888 |
| Indiana Bond Bank Revenue CABS, Hamilton Co., Projects, | | | |
| 0.00%, 7/15/25(e) | | 450,000 | 418,328 |
| 0.00%, 7/15/28(e) | | 900,000 | 764,784 |
| 0.00%, 1/15/29(e) | | 560,000 | 468,488 |
|
| Indiana Finance Authority Educational Facilities Revenue Refunding Bonds, Series A, Depauw University Project, 5.50%, 7/01/52 | | 255,000 | 266,994 |
| Indiana State Finance Authority Variable Revenue Refunding Bonds, Deaconess Health System, (SIFMA Municipal Swap Index Yield + 0.30%), 4.16%, 3/01/27(a)(c) | | 1,390,000 | 1,357,457 |
| Knox Middle School Building Corp., Revenue Bonds (State Intercept Program), 5.00%, 1/15/27 | | 440,000 | 475,532 |
| Upland Economic Development Revenue Refunding Bonds, Taylor University Project, 4.00%, 9/01/24 | | 570,000 | 573,057 |
| | | Par | Value |
| Indiana (Continued) |
| Vinton-Tecumseh School Building Corp., Ad Valorem Property Tax First Mortgage Revenue Bonds (State Intercept Program), | | | |
| 4.00%, 7/15/26 | | $530,000 | $ 547,577 |
| 4.00%, 1/15/27 | | 540,000 | 561,797 |
| 4.00%, 7/15/27 | | 550,000 | 576,220 |
|
| Whiting Environmental Facilities Revenue Refunding Bonds (AMT), BP Products North America, 5.00%, 6/05/26(a)(b)(c) | | 440,000 | 452,532 |
| | | | 7,244,654 |
| Kentucky – 1.8% |
| Fayette County School District Finance Corp., Revenue Bonds, Series A (State Intercept Program), 4.00%, 5/01/38 | | 250,000 | 248,886 |
| Kenton County Airport Board Revenue Refunding Bonds, 5.00%, 1/01/32 | | 400,000 | 422,176 |
| Kentucky Bond Development Corp., Educational Facilities Revenue Refunding Bonds, Transylvania University Project, 5.00%, 3/01/27 | | 155,000 | 165,169 |
| Kentucky State Economic Development Finance Authority Health System Revenue Bonds, Norton Healthcare, Inc., Series B (NATL Insured), 0.00%, 10/01/24(e) | | 280,000 | 265,246 |
| Kentucky State Economic Development Finance Authority Revenue Bonds, Owensboro Health, 5.25%, 6/01/50 | | 250,000 | 252,219 |
| Kentucky State Economic Development Finance Authority Revenue Refunding Bonds, Masonic Home Independent Living, | | | |
| 5.00%, 5/15/36 | | 200,000 | 169,041 |
| 5.00%, 5/15/46 | | 100,000 | 74,353 |
|
| Kentucky State Economic Development Finance Authority Revenue Refunding Bonds, Series B, Owensboro Health, 5.00%, 6/01/40 | | 300,000 | 302,188 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Kentucky (Continued) |
|
| Kentucky State Interlocal School Transportation Association Equipment Lease COPS (State Intercept Program), 4.00%, 3/01/29 | | $ 310,000 | $ 318,469 |
| Kentucky State Public Energy Authority Gas Supply Revenue Bonds, Series A-1, 4.00%, 6/01/25(a)(b)(c) | | 500,000 | 500,534 |
| Kentucky State Public Energy Authority Revenue Bonds, Series B, Gas Supply, 4.00%, 1/01/25(a)(b)(c) | | 650,000 | 651,585 |
| Kentucky State University COPS, Kentucky State University Project (BAM Insured), 5.00%, 11/01/24 | | 230,000 | 235,868 |
| Louisville & Jefferson County Metro Government PCR Refunding Bonds (AMT), Louisville Gas & Electric, 1.35%, 11/01/27 | | 1,500,000 | 1,339,215 |
| Louisville & Jefferson County Metropolitan Government Health System Variable Revenue Bonds, Norton Healthcare, Inc., 5.00%, 10/01/26(a)(b)(c) | | 1,000,000 | 1,046,530 |
| | | | 5,991,479 |
| Louisiana – 1.0% |
| East Baton Rouge Parish Sewerage Commission Revenue Refunding Bonds, Series A, | | | |
| 5.00%, 2/01/25 | | 475,000 | 492,057 |
| 5.00%, 2/01/26 | | 100,000 | 105,665 |
|
| East Baton Rouge Parish Sewerage Commission Variable Revenue Refunding Bonds, Series A, 1.30%, 2/01/28(a)(b)(c) | | 500,000 | 425,969 |
| Louisiana Public Facilities Authority Revenue Refunding Bonds, Loyola University Project, | | | |
| 5.00%, 10/01/25 | | 250,000 | 257,316 |
| 5.00%, 10/01/26 | | 215,000 | 224,511 |
|
| Saint James Parish Variable Revenue Bonds, Nustar Logistics, 5.85%, 6/01/25(a)(d) | | 525,000 | 538,380 |
| | | Par | Value |
| Louisiana (Continued) |
|
| Saint John The Baptist Parish Revenue Refunding Bonds, Marathon Oil Corp., Project, 4.05%, 7/01/26(a)(b)(c) | | $1,250,000 | $1,243,344 |
| Saint John The Baptist Parish Variable Revenue Refunding Bonds, Marathon Oil Corp., Project, 2.38%, 7/01/26(a)(b)(c) | | 125,000 | 118,197 |
| | | | 3,405,439 |
| Maine – 0.4% |
| Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series A, 5.00%, 7/01/27 | | 215,000 | 230,900 |
| Maine Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Series A (State Aid Withholding), 5.00%, 7/01/28 | | 650,000 | 698,333 |
| Maine State Finance Authority Student Loan Revenue Refunding Bonds (AMT) (AGM Insured), 5.00%, 12/01/24 | | 500,000 | 509,448 |
| | | | 1,438,681 |
| Maryland – 2.6% |
| Baltimore Convention Center Hotel Revenue Refunding Bonds, Convention Center Hotel, 5.00%, 9/01/39 | | 500,000 | 492,814 |
| Maryland State Community Development Administration Department Housing & Community Development Revenue Bonds, Social Bonds (GNMA, FNMA, FHLMC Insured), 5.05%, 3/01/47 | | 500,000 | 517,463 |
| Maryland State Community Development Administration Housing Revenue Bonds, Series I, Rosemont L.P., 4.38%, 1/01/25(d) | | 1,000,000 | 995,110 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Maryland (Continued) |
| Maryland State Department of Transportation Revenue Bonds (AMT), Baltimore Washington International, 4.00%, 8/01/37 | | $ 250,000 | $ 249,732 |
| Maryland State Economic Development Corp., Private Activity Revenue Bonds (AMT), Purple Line Light Rail Project, Green Bonds, | | | |
| 5.00%, 11/12/28 | | 500,000 | 514,313 |
| 5.25%, 6/30/55 | | 1,000,000 | 1,011,496 |
|
| Maryland State Economic Development Corp., Revenue Bonds (AMT), Seagirt Marine Terminal Projects, 5.00%, 6/01/44 | | 500,000 | 513,983 |
| Maryland State Economic Development Corp., Senior Lien Revenue Bonds, Annapolis Mobility & Resilience, 5.00%, 12/31/42 | | 145,000 | 150,808 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Adventist Healthcare Obligated, 5.50%, 1/01/31 | | 400,000 | 428,335 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Peninsula Regional Health System, | | | |
| 5.00%, 7/01/24 | | 350,000 | 355,517 |
| 5.00%, 7/01/27 | | 1,320,000 | 1,410,694 |
|
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Adventist Healthcare, 4.00%, 1/01/26 | | 875,000 | 877,977 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Series A, Broadmead Issue, 4.00%, 7/01/35 | | 285,000 | 264,161 |
| | | 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 | $ 108,634 |
| Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, Stevenson University Project, 4.00%, 6/01/51 | | 325,000 | 283,171 |
| Maryland State Health & Higher Educational Facilities Authority Variable Revenue Refunding Bonds, University of Maryland, 5.00%, 7/01/27(a)(b)(c) | | 200,000 | 212,146 |
| Montgomery County Housing Opportunities Commission Multifamily & Reconstruction Development Revenue Bonds, Series C (FHA 542 (C) Insured), 2.85%, 1/01/51 | | 250,000 | 182,443 |
| Washington County Economic Development Revenue Refunding Bonds, Homewood Maryland Obligated Group Project, 4.00%, 5/01/42 | | 225,000 | 168,751 |
| | | | 8,737,548 |
| Massachusetts – 1.2% |
| Massachusetts State Development Finance Agency Revenue Bonds, UMass Boston Student Housing Project, 5.00%, 10/01/48 | | 500,000 | 473,823 |
| Massachusetts State Development Finance Agency Revenue Refunding Bonds, Lasell University, | | | |
| 4.00%, 7/01/25 | | 235,000 | 231,167 |
| 4.00%, 7/01/26 | | 240,000 | 235,309 |
|
| Massachusetts State Development Finance Agency Revenue Refunding Bonds, Series F, Lahey Clinic Obligated Group, 5.00%, 8/15/45 | | 250,000 | 254,094 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Massachusetts (Continued) |
|
| Massachusetts State Development Financing Agency Variable Revenue Bonds, Partners Healthcare System, (SIFMA Municipal Swap Index Yield + 0.60%), 4.46%, 1/29/26(a)(d) | | $1,000,000 | $ 987,993 |
| Massachusetts State GO Limited Refunding Bonds, Series B, 5.00%, 7/01/34 | | 1,350,000 | 1,563,484 |
| Massachusetts State Port Authority Revenue Bonds, Series E (AMT), 5.00%, 7/01/27 | | 365,000 | 388,906 |
| | | | 4,134,776 |
| Michigan – 2.0% |
| Detroit Downtown Development Authority Tax Allocation Increment Revenue Refunding Bonds, Series A, Catalyst Development Project (AGM Insured), | | | |
| 5.00%, 7/01/43 | | 100,000 | 100,160 |
| 5.00%, 7/01/48 | | 200,000 | 198,936 |
|
| Detroit GO Unlimited Bonds, 5.00%, 4/01/27 | | 50,000 | 51,819 |
| Detroit GO Unlimited Bonds, Series A, Social Bonds, 4.00%, 4/01/40 | | 250,000 | 221,937 |
| Gerald R. Ford International Airport Authority Revenue Bonds (AMT) (County Gtd), 5.00%, 1/01/51 | | 525,000 | 553,139 |
| Great Lakes Water Authority Sewage Disposal System Second Lien Revenue Refunding Bonds, Series C, 5.00%, 7/01/36 | | 495,000 | 520,102 |
| Michigan State Finance Authority Limited Obligation Revenue Refunding Bonds, Lawrence Technological University, 4.00%, 2/01/27 | | 185,000 | 179,923 |
| Michigan State Finance Authority Local Government Loan Program Revenue Refunding Bonds, | | | |
| 5.00%, 7/01/29 | | 425,000 | 440,341 |
| 4.50%, 10/01/29 | | 250,000 | 251,369 |
| | | Par | Value |
| Michigan (Continued) |
|
| Michigan State Finance Authority Revenue Bonds, Local Government Loan Program, 5.00%, 7/01/33 | | $ 350,000 | $ 361,005 |
| Michigan State Finance Authority Revenue Refunding Bonds, Trinity Health Credit Group, 4.00%, 12/01/35 | | 515,000 | 526,839 |
| Michigan State Finance Authority Variable Revenue Refunding Bonds, Beaumont Spectrum, (SIFMA Municipal Swap Index Yield + 0.75%), 4.61%, 4/15/27(a)(c) | | 1,500,000 | 1,467,734 |
| Michigan State Hospital Finance Authority Revenue Refunding Bonds, Ascenion Senior, 5.00%, 11/15/47 | | 420,000 | 430,039 |
| Michigan State Strategic Fund Limited Obligation Variable Revenue Bonds (AMT), Consumers Energy Co., 1.80%, 10/01/24(a)(b)(c) | | 500,000 | 484,648 |
| Michigan State Strategic Fund Limited Obligation Variable Revenue Bonds (AMT), Green Bonds, 4.00%, 10/01/26(a)(b)(c) | | 100,000 | 99,336 |
| Wayne County Airport Authority Junior Lien Revenue Refunding Bonds, Series A, 5.00%, 12/01/26 | | 500,000 | 536,182 |
| Wayne State University Revenue Refunding Bonds, Series A (BAM, TCRS Insured), 5.00%, 11/15/27 | | 300,000 | 318,195 |
| | | | 6,741,704 |
| Minnesota – 0.1% |
| City of Shakopee Senior Housing Revenue Bonds, Benedictine Living Community of Shakopee LLC Project, 5.85%, 11/01/25(a)(d) | | 250,000 | 245,747 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Mississippi – 0.1% |
| Mississippi State Hospital Equipment & Facilities Authority Adjustable Revenue Refunding Bonds, North Mississippi Health, 5.00%, 3/01/27(a)(b)(c) | | $265,000 | $ 279,735 |
| Missouri – 0.9% |
| Central Southwest Community College District COPS, | | | |
| 5.00%, 3/01/26 | | 225,000 | 237,692 |
| 5.00%, 3/01/27 | | 225,000 | 242,797 |
|
| Missouri State Health & Educational Facilities Authority Health Facilities Revenue Refunding Bonds, Series A, St. Luke's Health System, Inc., 5.00%, 11/15/30 | | 250,000 | 263,775 |
| Missouri State Health & Educational Facilities Authority Revenue Refunding Bonds, | | | |
| 5.00%, 2/15/26 | | 200,000 | 206,685 |
| 5.00%, 2/15/27 | | 215,000 | 225,231 |
| 5.00%, 2/15/28 | | 250,000 | 265,219 |
| Missouri State Health & Educational Facilities Authority Revenue Refunding Bonds, Bethesda Health Group, Inc., | | | |
| 4.00%, 8/01/24 | | 320,000 | 317,413 |
| 4.00%, 8/01/26 | | 200,000 | 195,406 |
|
| Missouri State Health & Educational Facilities Authority Revenue Refunding Bonds, Webster University Project, 5.00%, 4/01/26 | | 500,000 | 500,940 |
| Saint Louis County IDA Senior Living Facilities Revenue Refunding Bonds, Friendship Village St. Louis, 5.00%, 9/01/48 | | 500,000 | 427,188 |
| | | | 2,882,346 |
| | | Par | Value |
| Nebraska – 0.6% |
| Douglas County Educational Facilities Variable Revenue Refunding Bonds, Creighton University Project, (SIFMA Municipal Swap Index Yield + 0.53%), 4.39%, 9/01/26(a)(c) | | $ 740,000 | $ 727,554 |
| Douglas County Hospital Authority No. 2 Revenue Bonds, Children's Hospital Obligated Group, 5.00%, 11/15/25(a)(b)(c) | | 600,000 | 620,132 |
| Gretna COPS, 5.00%, 12/15/25 | | 500,000 | 515,603 |
| | | | 1,863,289 |
| Nevada – 1.3% |
| Clark County PCR Refunding Bonds, Southern California Edison Company, 2.10%, 6/01/31 | | 250,000 | 207,963 |
| Clark County School District GO Limited Refunding Bonds, Series E, 5.00%, 6/15/25 | | 1,330,000 | 1,386,609 |
| Clark County Stadium Improvement GO Limited Bonds, Series A, 5.00%, 5/01/48 | | 500,000 | 529,435 |
| Las Vegas Convention & Visitors Authority Convention Center Expansion Revenue Bonds, Series B, 5.00%, 7/01/43 | | 250,000 | 262,145 |
| Las Vegas New Convention & Visitors Authority Revenue Bonds, Series B, 5.00%, 7/01/37 | | 1,000,000 | 1,082,274 |
| Las Vegas Special Improvement District No. 814 Summerlin Village 21 & 24A Special Assessment Bonds, 4.00%, 6/01/49 | | 95,000 | 77,766 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Nevada (Continued) |
| Reno Sales Tax First Lien Revenue Refunding Bonds, Retrac-Reno Transportation Rail Access Corridor Project, 5.00%, 6/01/48 | | $500,000 | $ 519,269 |
| Sparks Nevada Tourism Improvement District No. 1 Sales Tax Senior Lien Revenue Refunding Bonds, Series A, 2.50%, 6/15/24(d) | | 100,000 | 97,795 |
| | | | 4,163,256 |
| New Hampshire – 0.4% |
| National Finance Authority Municipal Certificates Revenue Bonds, Series 1-A, 4.13%, 1/20/34 | | 881,029 | 862,758 |
| National Finance Authority Revenue Bonds, Series A, 4.00%, 7/01/51 | | 250,000 | 246,167 |
| New Hampshire State Health & Education Facilities Authority Revenue Refunding Bonds, Kendal at Hanover Issue, 5.00%, 10/01/36 | | 180,000 | 179,833 |
| | | | 1,288,758 |
| New Jersey – 2.9% |
| Atlantic City Board Of Education GO Unlimited Refunding Bonds (AGM School Board Resource Fund Insured), 4.00%, 4/01/25 | | 350,000 | 355,909 |
| Garden State Preservation Trust Open Space & Farmland Preservation Revenue Bonds, Series A (AGM Insured), 5.75%, 11/01/28 | | 400,000 | 439,756 |
| New Jersey State EDA Energy Facility Revenue Bonds, Series A (AMT), UMM Energy Partners, | | | |
| 5.00%, 6/15/37 | | 190,000 | 190,053 |
| 5.12%, 6/15/43 | | 350,000 | 350,066 |
|
| New Jersey State EDA Motor Vehicle Surcharge Revenue Refunding Bonds, Subseries A, 3.38%, 7/01/30 | | 250,000 | 244,245 |
| New Jersey State EDA Private Activity Revenue Bonds (AMT), The Goethals Project, 5.37%, 1/01/43 | | 100,000 | 100,337 |
| | | Par | Value |
| New Jersey (Continued) |
|
| New Jersey State EDA Revenue Bonds, Portal North Bridge Project NJ Transit, 5.25%, 11/01/41 | | $ 235,000 | $ 259,824 |
| New Jersey State EDA Revenue Bonds, Provident Group Rowan Properties LLC, 5.00%, 1/01/48 | | 125,000 | 113,478 |
| New Jersey State EDA Revenue Refunding Bonds, Cranes Mill Project, 5.00%, 1/01/49 | | 260,000 | 214,958 |
| New Jersey State EDA Revenue Refunding Bonds, Series A, United Methodist Homes, Prerefunded, 5.00%, 7/01/29(f) | | 100,000 | 102,070 |
| New Jersey State EDA Special Facility Revenue Refunding Bonds (AMT), Port Newark Container, 5.00%, 10/01/47 | | 300,000 | 290,534 |
| New Jersey State EDA Water Facilities Revenue Refunding Bonds (AMT), New Jersey American Water Co., Inc. Project, 2.20%, 12/03/29(a)(b)(c) | | 775,000 | 682,206 |
| New Jersey State Health Care Facilities Financing Authority Revenue Bonds, Valley Health System Obligated Group Series, 5.00%, 7/01/33 | | 1,000,000 | 1,110,878 |
| New Jersey State Health Care Facilities Financing Authority Revenue Refunding Bonds, Inspira Health Obligated Group, 5.00%, 7/01/30 | | 1,000,000 | 1,052,054 |
| New Jersey State Health Care Facilities Financing Authority Revenue Refunding Bonds, RWJ Barnabas Health Obligated Group, 5.00%, 7/01/26(a)(b)(c) | | 400,000 | 422,446 |
| New Jersey State Higher Education Assistance Authority Student Loan Revenue Bonds, Series B (AMT), 5.00%, 12/01/24 | | 570,000 | 580,332 |
| New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series A, 4.00%, 6/15/42 | | 250,000 | 245,020 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New Jersey (Continued) |
|
| New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series AA, 5.00%, 6/15/40 | | $500,000 | $ 537,298 |
| New Jersey State Transportation Trust Fund Authority Revenue Bonds, Transportation Program, | | | |
| 5.25%, 6/15/43 | | 625,000 | 664,598 |
| 4.00%, 6/15/50 | | 280,000 | 264,282 |
|
| New Jersey State Transportation Trust Fund Authority Revenue Refunding Bonds, Series A, 4.00%, 6/15/34 | | 175,000 | 182,216 |
| New Jersey State Transportation Trust Fund Authority Transportation System Revenue Refunding Bonds, 5.00%, 12/15/25 | | 100,000 | 104,436 |
| New Jersey State Turnpike Authority Revenue Bonds, Series A, | | | |
| 5.00%, 1/01/27 | | 305,000 | 329,327 |
| 5.00%, 1/01/33 | | 230,000 | 235,241 |
|
| New Jersey State Turnpike Authority Revenue Bonds, Series B, 5.25%, 1/01/52 | | 350,000 | 391,702 |
| New Jersey State Turnpike Authority Turnpike Revenue Refunding Bonds, Series E, 5.00%, 1/01/31 | | 255,000 | 280,592 |
| | | | 9,743,858 |
| New Mexico – 0.1% |
| Farmington PCR Refunding Bonds, Public Service Company of New Mexico San Juan Project, 1.15%, 6/01/24(a)(b)(c) | | 250,000 | 241,093 |
| New York – 8.8% |
| Build Resource Corp., Revenue Bonds, Friends of Hellenic Classical Charter Schools, Inc., 4.00%, 12/01/31(d) | | 500,000 | 452,735 |
| Hempstead Town Local Develop Corp., Education Revenue Refunding Bonds, Academy Charter School Project, 5.66%, 2/01/44 | | 250,000 | 242,267 |
| | | Par | Value |
| New York (Continued) |
| Hempstead Town Local Development Corp., Education Revenue Bonds, Academy Charter School Project, 4.60%, 2/01/51 | | $ 250,000 | $ 185,456 |
| Hempstead Town Local Development Corp., Revenue Refunding Bonds, Adelphi University Project, 5.00%, 6/01/27 | | 300,000 | 320,271 |
| Hudson Yards Infrastructure Corp., Revenue Refunding Bonds, Second Indenture Series, Fiscal 2022, Green Bonds, 4.00%, 2/15/43 | | 1,000,000 | 986,527 |
| Long Beach GO Limited Bonds, Series A, 5.00%, 9/01/28 | | 665,000 | 710,555 |
| Long Island Power Authority Electric System Variable Revenue Bonds, Series B, 1.65%, 9/01/24(a)(b)(c) | | 1,650,000 | 1,602,897 |
| Metropolitan Transportation Authority, New York Transportation Variable Rate Revenue Refunding Bonds, Subseries G-3, (SIFMA Municipal Swap Index Yield + 0.43%), 4.29%, 2/01/25(a)(c) | | 1,000,000 | 974,069 |
| Monroe County Industrial Development Agency School Facility Revenue Bonds, Rochester Schools Modernization Project (State Aid Withholding), 5.00%, 5/01/35 | | 800,000 | 912,976 |
| Monroe County Industrial Development Corp., Revenue Bonds, University of Rochester Project, 4.00%, 7/01/50 | | 1,000,000 | 954,170 |
| New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Second General Resolution, Series CC-1, 5.00%, 6/15/49 | | 250,000 | 267,633 |
| New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series AA-1, 5.25%, 6/15/52 | | 250,000 | 279,889 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New York (Continued) |
| New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, 4.00%, 11/01/40 | | $ 400,000 | $ 397,512 |
| New York City Transitional Finance Authority Future Tax Subordinate Revenue Bonds, 4.00%, 5/01/36 | | 1,000,000 | 1,036,290 |
| New York City Transitional Finance Authority Subordinate Revenue Bonds, Series F-1, 5.00%, 2/01/47 | | 625,000 | 683,542 |
| New York GO Unlimited Bonds, Series 1, 4.00%, 8/01/27 | | 625,000 | 659,589 |
| New York GO Unlimited Bonds, Series A-1, 5.25%, 9/01/42 | | 250,000 | 285,163 |
| New York GO Unlimited Bonds, Series D, Subseries D1, 5.00%, 12/01/42 | | 250,000 | 267,915 |
| New York State Convention Center Development Corp., Revenue Refunding Bonds, Hotel Unit Fee Secured, 5.00%, 11/15/40 | | 600,000 | 615,636 |
| New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Fordham University, 4.00%, 7/01/50 | | 600,000 | 569,034 |
| New York State Dormitory Authority Non State Supported Debt Revenue Refunding Bonds, Series A, Barnard College, 4.00%, 7/01/49 | | 300,000 | 272,163 |
| New York State Dormitory Authority Personal Income Tax Revenue Refunding Bonds, Series A, 5.00%, 3/15/41 | | 2,000,000 | 2,227,314 |
| 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 | 487,586 |
| | | Par | Value |
| New York (Continued) |
| New York State Dormitory Authority Revenues Non State Supported Debt Revenue Bonds, Northwell Health Obligated Group, 5.00%, 5/01/24(a)(b)(c) | | $1,250,000 | $1,258,698 |
| 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 | 210,477 |
| 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 | 388,336 |
| New York State Dormitory Authority State Personal Income Tax Revenue Refunding Bonds, Series E, Unrefunded Balance, 5.00%, 2/15/44 | | 425,000 | 435,760 |
| New York State Housing Finance Agency Affordable Housing Sustainability Revenue Bonds, Series L-2 (SonyMA Insured), 0.75%, 11/01/25 | | 500,000 | 459,982 |
| New York State Liberty Development Corp., Revenue Refunding Bonds, 4 World Trade Center Project, Green Bonds, 1.20%, 11/15/28 | | 500,000 | 430,013 |
| New York State Liberty Development Corp., Revenue Refunding Bonds, Class 2, 3 World Trade Center Project, | | | |
| 5.15%, 11/15/34(d) | | 500,000 | 500,354 |
| 5.37%, 11/15/40(d) | | 150,000 | 150,051 |
|
| New York State Transportation Development Corp., Special Facilities Revenue Bonds (AMT), Delta Air Lines, Inc., Laguardia Airport Terminal C& D Redevelopment Project, 5.00%, 10/01/35 | | 500,000 | 526,898 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| New York (Continued) |
|
| 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 | $ 252,442 |
| 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 | 270,333 |
| New York State Urban Development Corp., Personal Income TRB, Series A, | | | |
| 4.00%, 3/15/38 | | 500,000 | 506,571 |
| 5.00%, 3/15/41 | | 250,000 | 275,223 |
|
| New York State Urban Development Corp., Revenue Refunding Bonds, Series E Group 3, 4.00%, 3/15/43 | | 500,000 | 493,251 |
| Niagara Frontier Transportation Authority Revenue Refunding Bonds (AMT), Buffalo Niagara International Airport, 5.00%, 4/01/26 | | 250,000 | 259,272 |
| Onondaga County Trust Cultural Resource Revenue Refunding Bonds, Syracuse University Project, 4.00%, 12/01/47 | | 500,000 | 483,629 |
| Onondaga County Trust Cultural Resources Revenue Refunding Bonds, Syracuse University Project, 4.00%, 12/01/41 | | 250,000 | 250,616 |
| Port Authority of New York & New Jersey Consolidated 211th Revenue Refunding Bonds, 5.00%, 9/01/48 | | 830,000 | 882,674 |
| Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 218 (AMT), 5.00%, 11/01/31 | | 1,065,000 | 1,176,557 |
| | | Par | Value |
| New York (Continued) |
|
| Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 221 (AMT), 4.00%, 7/15/40 | | $ 500,000 | $ 483,054 |
| Port Authority of New York & New Jersey Consolidated Revenue Refunding Bonds (AMT), 5.50%, 8/01/52 | | 600,000 | 664,703 |
| Port Authority of New York & New Jersey Revenue Bonds, Series 179, 5.00%, 12/01/25 | | 750,000 | 757,561 |
| Poughkeepsie City GO Limited Refunding Bonds, 4.00%, 4/15/25 | | 440,000 | 443,173 |
| Sales Tax Asset Receivable Corp., Revenue Refunding Bonds, Series A, Fiscal 2015, Prerefunded, 5.00%, 10/15/30(f) | | 245,000 | 251,927 |
| Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A, MTA Bridges & Tunnels, 4.00%, 11/15/54 | | 1,300,000 | 1,252,471 |
| Triborough Bridge & Tunnel Authority Payroll Mobility Tax Revenue Refunding Bonds, Series A, MTA Bridges & Tunnels, 5.00%, 5/15/47 | | 250,000 | 273,879 |
| Troy Capital Resource Corp., Revenue Bonds, Rensselaer Polytechnic Institute Project, 4.00%, 9/01/33 | | 100,000 | 102,856 |
| Yonkers Economic Development Corp., Educational Revenue Bonds, Charter School Educational Excellence Project, 5.00%, 10/15/49 | | 100,000 | 89,865 |
| Yonkers GO Limited Bonds, Series F (BAM Insured), 5.00%, 11/15/27 | | 100,000 | 110,284 |
| | | | 29,032,099 |
| North Carolina – 1.4% |
| Greater Asheville Regional Airport Authority Airport System Revenue Bonds (AMT) (AGM Insured), 7/01/48(g) | | 250,000 | 268,318 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| North Carolina (Continued) |
| Greater Asheville Regional Airport Authority Airport System Revenue Bonds, Series A (AMT) (AGM Insured), 5.50%, 7/01/47 | | $1,000,000 | $1,092,084 |
| North Carolina State Capital Facilities Finance Agency Educational Facilities Revenue Refunding Bonds, High Point University, | | | |
| 4.00%, 5/01/24 | | 240,000 | 240,977 |
| 5.00%, 5/01/25 | | 240,000 | 247,488 |
| 5.00%, 5/01/26 | | 275,000 | 288,370 |
|
| North Carolina State Capital Facilities Finance Agency Revenue Refunding Bonds, The Arc Of North Carolina (Housing & Urban Development Sector 8 Program), 5.00%, 10/01/34 | | 250,000 | 250,676 |
| North Carolina State Medical Care Commission Retirement Facilities Revenue Bonds, The Forest At Duke Project, | | | |
| 4.00%, 9/01/33 | | 180,000 | 172,333 |
| 4.00%, 9/01/34 | | 185,000 | 176,176 |
|
| North Carolina State Medical Care Commission Retirement Facilities Revenue Refunding Bonds, First Mortgage, 4.00%, 1/01/25 | | 250,000 | 245,769 |
| North Carolina State Medical Care Commission Retirement Facilities Revenue Refunding Bonds, First Mortgage, United Church Services, Prerefunded, 5.00%, 9/01/37(f) | | 155,000 | 158,966 |
| North Carolina State Medical Care Commission Retirement Facilities Revenue Refunding Bonds, Series A, Sharon Towers, 5.00%, 7/01/49 | | 100,000 | 85,011 |
| North Carolina State Turnpike Authority Senior Lien Revenue Bonds, Triangle Expressway, 4.00%, 1/01/55 | | 400,000 | 356,476 |
| | | Par | Value |
| North Carolina (Continued) |
|
| North Carolina State Turnpike Authority Senior Lien Revenue Bonds, Triangle Expressway (AGM Insured), 5.00%, 1/01/49 | | $500,000 | $ 519,927 |
| North Carolina State Turnpike Authority Senior Lien Revenue Refunding Bonds, 5.00%, 1/01/40 | | 550,000 | 575,047 |
| | | | 4,677,618 |
| North Dakota – 0.3% |
| Cass County Joint Water Resource District GO Unlimited Bonds, Series A, 0.48%, 5/01/24 | | 600,000 | 573,633 |
| University of North Dakota COPS, Infrastructure Energy Improvement, 5.00%, 4/01/48 | | 500,000 | 523,519 |
| | | | 1,097,152 |
| Ohio – 2.4% |
| Akron Bath Copley Joint Township Hospital District Revenue Refunding Bonds, Summa Health Obligated Group Hospital, | | | |
| 5.00%, 11/15/26 | | 350,000 | 367,981 |
| 5.00%, 11/15/27 | | 370,000 | 394,325 |
|
| Allen County Ohio Hospital Facilities Revenue Refunding Bonds, Bon Secours Mercy Health, Inc., 5.00%, 12/01/28 | | 400,000 | 442,748 |
| Buckeye Tobacco Settlement Financing Authority Revenue Refunding Bonds, Senior-Class 2, Series B-2, 5.00%, 6/01/55 | | 900,000 | 838,875 |
| Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue Refunding Bonds, Playhouse Square Foundation Project, 5.50%, 12/01/43 | | 175,000 | 177,675 |
| Cleveland-Cuyahoga County Port Authority Cultural Facility Revenue Bonds, Cleveland Museum Of Natural History Project, | | | |
| 5.00%, 7/01/25 | | 125,000 | 129,910 |
| 5.00%, 7/01/26 | | 125,000 | 132,440 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Ohio (Continued) |
| Cleveland-Cuyahoga County Port Authority Cultural Facility Revenue Bonds, Cleveland Museum Of Natural History Project, | | | |
| 5.00%, 7/01/27 | | $125,000 | $135,006 |
| 5.00%, 7/01/28 | | 155,000 | 170,374 |
|
| Cleveland-Cuyahoga County Port Authority Financing Senior Tax Allocation Increment Revenue Refunding Bonds, Flats East Bank Project, 4.00%, 12/01/55(d) | | 250,000 | 210,482 |
| Conotton Valley Union Local School District COPS, School Facilities Project (FHLMC Insured), 4.00%, 12/01/42 | | 500,000 | 500,270 |
| Cuyahoga Metropolitan Housing Authority Multifamily Housing Variable Revenue Bonds, Wade Park Apartments (FHA Insured, Housing & Urban Development Sector 8 Program), 4.75%, 12/01/25(a)(b)(c) | | 350,000 | 358,132 |
| Franklin County Convention Facilities Authority Hotel Project Revenue Bonds, Greater Columbus Convention Center, | | | |
| 5.00%, 12/01/34 | | 170,000 | 167,392 |
| 5.00%, 12/01/36 | | 305,000 | 299,692 |
|
| Hamilton County Hospital Facilities Revenue Bonds, Cincinnati Children's Hospital Project, 5.00%, 11/15/41 | | 250,000 | 287,199 |
| Lancaster Port Authority Gas Revenue Refunding Bonds, Series A, 5.00%, 2/01/25(a)(b)(c) | | 225,000 | 229,377 |
| Marion County Health Care Facilities Revenue Refunding Bonds, United Church Homes, Inc., 5.12%, 12/01/49 | | 100,000 | 84,593 |
| Miami Valley Career Technology Center GO Unlimited Bonds, 4.00%, 12/01/37 | | 250,000 | 252,777 |
| | | Par | Value |
| Ohio (Continued) |
|
| Middleburg Heights Hospital Revenue Refunding Bonds, Southwest General Health Center, 4.00%, 8/01/41 | | $500,000 | $ 470,632 |
| Ohio State Air Quality Development Authority Revenue Refunding Bonds (AMT), American Electric Power Company Project, 2.10%, 10/01/24(a)(b)(c) | | 500,000 | 482,107 |
| Ohio State Air Quality Development Authority Revenue Refunding Bonds, Ohio Valley Electric Corp., 3.25%, 9/01/29 | | 50,000 | 46,653 |
| Ohio State Air Quality Development Authority Variable Revenue Refunding Bonds (AMT), Duke Energy Corp., Project, 4.25%, 6/01/27(a)(b)(c) | | 250,000 | 250,373 |
| Ohio State Higher Educational Facilities Commission Revenue Refunding Bonds, Xavier University 2020 Project, 5.00%, 5/01/35 | | 880,000 | 975,909 |
| Ohio State Higher Educational Facility Commission Healthcare Revenue Bonds, Ashtabula County Medical Center Obligated Group, 5.00%, 1/01/26 | | 100,000 | 102,618 |
| Ohio State Higher Educational Facility Commission Revenue Refunding Bonds, Otterbein University 2022 Project, 4.00%, 12/01/46 | | 500,000 | 433,880 |
| Ohio State Hospital Revenue Refunding Bonds, Premier Health Partners Obligated Group, 5.00%, 11/15/26 | | 145,000 | 151,613 |
| | | | 8,093,033 |
| Oklahoma – 0.6% |
| Carter County Public Facilities Authority Educational Facilities Lease Revenue Bonds, 5.00%, 9/01/27 | | 500,000 | 529,065 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Oklahoma (Continued) |
| Oklahoma County Finance Authority Revenue Refunding Bonds, Series A, Epworth Villa Project, 5.88%, 4/01/30(h) | | $ 50,000 | $ 25,000 |
| Oklahoma State Development Finance Authority Revenue Refunding Bonds, Oklahoma City University Project, 5.00%, 8/01/24 | | 590,000 | 592,322 |
| Oklahoma State Water Resources Board Revolving Fund Revenue Bonds, Drinking Water Program 2019 Master Trust, 4/01/48(g) | | 300,000 | 296,397 |
| Tulsa County Industrial Authority Educational Facilities Lease Revenue Bonds, Berryhill Public Schools Project, 4.00%, 9/01/26 | | 500,000 | 514,637 |
| | | | 1,957,421 |
| Oregon – 1.7% |
| Klamath Falls Intercommunity Hospital Authority Revenue Refunding Bonds, Sky Lakes Medical Center Project, 4.00%, 9/01/25 | | 550,000 | 555,319 |
| Medford Hospital Facilities Authority Revenue Refunding Bonds, Series A, Asante Projects, 5.00%, 8/15/45 | | 500,000 | 526,522 |
| Multnomah County Hospital Facilities Authority Revenue Refunding Bonds, Adventist Health System, 5.00%, 3/01/25(a)(b)(c) | | 500,000 | 507,554 |
| Multnomah County Hospital Facilities Authority Revenue Refunding Bonds, Terwilliger Plaza-Parkview Project, Green Bonds, 0.95%, 6/01/27 | | 500,000 | 436,031 |
| Multnomah County School District No. 1J Portland GO Unlimited Bonds (School Board Guaranty Program), 5.00%, 6/15/24 | | 250,000 | 255,614 |
| | | Par | Value |
| Oregon (Continued) |
| Oregon State Facilities Authority Revenue Refunding Bonds, Series A, Legacy Health Project, 5.00%, 6/01/46 | | $1,000,000 | $1,020,916 |
| Port of Morrow GO Limited Refunding Bonds, Series D, | | | |
| 4.00%, 12/01/26 | | 170,000 | 175,545 |
| 4.00%, 12/01/27 | | 240,000 | 250,245 |
|
| Port of Portland Airport Revenue Refunding Bonds, Portland International Airport, 5.00%, 7/01/40 | | 615,000 | 670,539 |
| Port of Portland Airport Revenue Refunding Bonds, Portland International Airport (AMT), 5.00%, 7/01/25 | | 750,000 | 772,317 |
| Salem Hospital Facility Authority Revenue Refunding Bonds, Capital Manor Project, | | | |
| 5.00%, 5/15/24 | | 110,000 | 110,273 |
| 5.00%, 5/15/27 | | 260,000 | 262,357 |
| | | | 5,543,232 |
| Pennsylvania – 3.3% |
| Allegheny County Sanitary Authority Revenue Bonds, Series B, 4.00%, 6/01/25 | | 100,000 | 102,036 |
| Allentown Neighborhood Improvement Zone Development Authority Tax Revenue Refunding Bonds, Forward Delivery, 5.00%, 5/01/42 | | 250,000 | 251,409 |
| Commonwealth Financing Authority Taxable Revenue Refunding Bonds, Series B-1, 5.00%, 6/01/26 | | 300,000 | 311,274 |
| Cumberland County Municipal Authority Revenue Refunding Bonds, Asbury Pennsylvania Obligated, 4.50%, 1/01/40(d) | | 185,000 | 151,928 |
| Laurel Highlands School District GO Limited Refunding Bonds (BAM State Aid Withholding), 4.00%, 2/01/26 | | 350,000 | 359,427 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Pennsylvania (Continued) |
| Lehigh County General Purpose Authority Revenue Refunding Bonds, Muhlenberg College Project, (SIFMA Municipal Swap Index Yield + 0.58%), 4.44%, 11/01/24(a)(c) | | $ 415,000 | $ 414,498 |
| Luzerne County IDA Revenue Refunding Bonds (AMT), Pennsylvania-American Water Co., Project, 2.45%, 12/03/29(a)(b)(c) | | 750,000 | 689,866 |
| Montgomery County IDA Revenue Bonds, Acts Retirement-Life Communities, 5.00%, 11/15/45 | | 1,500,000 | 1,409,278 |
| Neshannock Township School District GO Limited Refunding Bonds, Series B (State Aid Withholding), 2.00%, 9/01/24 | | 190,000 | 185,831 |
| Oil City GO Unlimited Bonds, Series A (AGM Insured), | | | |
| 4.00%, 12/01/24 | | 150,000 | 151,890 |
| 4.00%, 12/01/25 | | 185,000 | 189,936 |
|
| Pennsylvania State Economic Development Financing Authority Tax-Exempt Private Activity Revenue Bonds (AMT), The Penndot Major Bridges, 5.75%, 6/30/48 | | 575,000 | 626,762 |
| Pennsylvania State Economic Development Financing Authority UPMC Revenue Bonds, Series A, 5.00%, 7/01/38 | | 500,000 | 501,337 |
| Pennsylvania State Economic Development Financing Authority UPMC Revenue Bonds, Series A-1, | | | |
| 5.00%, 4/15/25 | | 200,000 | 207,246 |
| 4.00%, 4/15/45 | | 500,000 | 471,484 |
|
| Pennsylvania State Economic Development Financing Authority UPMC Revenue Bonds, Series A-2, 4.00%, 5/15/48 | | 250,000 | 233,938 |
| | | Par | Value |
| Pennsylvania (Continued) |
| Pennsylvania State Higher Educational Facilities Authority Revenue Refunding Bonds, Thomas Jefferson University, | | | |
| 5.00%, 9/01/39 | | $500,000 | $ 509,685 |
| 5.00%, 9/01/45 | | 250,000 | 252,911 |
|
| Pennsylvania State Housing Finance Agency SFM Revenue Refunding Bonds (AMT), Series 125A, 2.37%, 10/01/25 | | 600,000 | 583,552 |
| Pennsylvania State Turnpike Commission Revenue Refunding Bonds, Series B, 5.25%, 12/01/52 | | 250,000 | 273,889 |
| Pennsylvania State Turnpike Commission Subordinate Revenue Bonds, Series A (AGM Insured), 4.00%, 12/01/49 | | 350,000 | 342,985 |
| Philadelphia Airport Revenue Refunding Bonds, Series B (AMT), | | | |
| 5.00%, 7/01/30 | | 510,000 | 539,099 |
| 5.00%, 7/01/33 | | 400,000 | 419,804 |
| 5.00%, 7/01/35 | | 155,000 | 161,539 |
|
| Philadelphia Airport Revenue Refunding Bonds, Series C (AMT), 4.00%, 7/01/40 | | 250,000 | 242,133 |
| Southcentral General Authority Revenue Bonds, York College of Pennsylvania Project, | | | |
| 5.00%, 5/01/27 | | 300,000 | 319,582 |
| 5.00%, 5/01/28 | | 215,000 | 233,090 |
|
| Southeastern Pennsylvania Transportation Authority Revenue Bonds, Asset Improvement Program, 5.25%, 6/01/47 | | 250,000 | 280,793 |
| West Cornwall Township Municipal Authority Healthcare Facilities Revenue Refunding Bonds, Lebanon Valley Brethren Home Project, | | | |
| 4.00%, 11/15/24 | | 115,000 | 113,635 |
| 4.00%, 11/15/25 | | 115,000 | 112,665 |
| 4.00%, 11/15/26 | | 125,000 | 121,346 |
| 4.00%, 11/15/27 | | 130,000 | 124,984 |
| 4.00%, 11/15/28 | | 105,000 | 99,926 |
| | | | 10,989,758 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Puerto Rico – 1.1% |
| Puerto Rico Commonwealth Aqueduct & Sewer Authority Senior Lien Revenue Refunding Bonds, Series A, 5.00%, 7/01/30(d) | | $ 250,000 | $ 252,985 |
| Puerto Rico Commonwealth Notes, | | | |
| 3.75%, 11/01/43(b)(c) | | 22,633 | 10,637 |
| 2.67%, 11/01/51(b)(c) | | 446,000 | 210,177 |
| Puerto Rico Commonwealth Restructured GO Unlimited Bonds, Series A1, | | | |
| 5.38%, 7/01/25 | | 160,394 | 163,412 |
| 5.62%, 7/01/27 | | 309,847 | 322,928 |
| 5.63%, 7/01/29 | | 1,058,875 | 1,119,389 |
| 5.75%, 7/01/31 | | 57,185 | 61,213 |
| 4.00%, 7/01/33 | | 54,226 | 49,618 |
| 4.00%, 7/01/35 | | 48,742 | 43,597 |
| 4.00%, 7/01/37 | | 106,285 | 92,829 |
| 4.00%, 7/01/41 | | 56,878 | 47,731 |
| Puerto Rico Commonwealth Restructured GO Unlimited CABS, Series A, | | | |
| 0.00%, 7/01/24(e) | | 18,107 | 17,154 |
| 0.00%, 7/01/33(e) | | 69,785 | 40,720 |
|
| Puerto Rico Electric Power Authority Power Revenue Bonds, Series TT, 5.00%, 7/01/37(i) | | 130,000 | 91,325 |
| Puerto Rico Sales Tax Financing Corp., Restructured TRB, Series A-1, 4.75%, 7/01/53 | | 527,000 | 492,780 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue CABS, Series A-1, | | | |
| 0.00%, 7/01/27(e) | | 225,000 | 186,281 |
| 0.00%, 7/01/31(e) | | 500,000 | 339,653 |
| 0.00%, 7/01/46(e) | | 875,000 | 237,999 |
| | | | 3,780,428 |
| | | Par | Value |
| Rhode Island – 0.2% |
| Providence GO Unlimited Refunding Bonds, Series A, 5.00%, 1/15/25 | | $200,000 | $ 205,682 |
| Rhode Island Commerce Corp., First Lien Special Facility Revenue Refunding Bonds, Rhode Island Airport Corp., International, 5.00%, 7/01/31 | | 500,000 | 545,301 |
| | | | 750,983 |
| South Carolina – 0.6% |
| Connector 2000 Association, Inc. Toll Road Revenue CABS, Senior Series A-1, | | | |
| 0.00%, 1/01/32(e) | | 460,096 | 250,385 |
| 0.00%, 1/01/42(e) | | 228,148 | 57,112 |
| 0.00%, 7/22/51(e) | | 265,293 | 32,491 |
|
| South Carolina State Jobs EDA Hospital Revenue Refunding Bonds, Prisma Health Obligated Group, 5.00%, 5/01/38 | | 400,000 | 414,959 |
| South Carolina State Jobs EDA Hospital Variable Revenue Bonds, Bon Secours Mercy Health, 5.00%, 10/01/25(a)(b)(c) | | 850,000 | 880,644 |
| South Carolina State Public Service Authority Revenue Bonds, Series E, Santee Cooper, 5.75%, 12/01/47 | | 250,000 | 275,442 |
| | | | 1,911,033 |
| South Dakota – 0.3% |
| South Dakota State Board of Regents Housing & Auxiliary Facilities System Revenue Refunding Bonds, | | | |
| 4.00%, 4/01/26 | | 375,000 | 385,597 |
| 4.00%, 4/01/27 | | 425,000 | 442,823 |
| | | | 828,420 |
| Tennessee – 1.5% |
| Greeneville Health & Educational Facilities Board Revenue Refunding Bonds, Ballad Health Obligation Group, 5.00%, 7/01/31 | | 140,000 | 140,147 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Tennessee (Continued) |
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Vanderbilt University Medical Center, 5.00%, 7/01/40 | | $ 400,000 | $ 409,962 |
| Metropolitan Government Nashville & Davidson County Health & Educational Facility Board Revenue Refunding Bonds, Trevecca Nazarene University, 3.00%, 10/01/24 | | 215,000 | 210,236 |
| Metropolitan Nashville Airport Authority Revenue Bonds, Series B (AMT), 5.00%, 7/01/26 | | 600,000 | 627,400 |
| Metropolitan Nashville Airport Authority Subordinate Revenue Bonds, Series B (AMT), 5.00%, 7/01/39 | | 1,000,000 | 1,059,761 |
| Tennergy Corp., Gas Revenue Bonds, Series A, 4.00%, 9/01/28(a)(b)(c) | | 1,500,000 | 1,499,712 |
| Tennergy Corp., Gas Supply Revenue Bonds, Series A, 5.50%, 12/01/30(a)(b)(c) | | 1,000,000 | 1,059,238 |
| | | | 5,006,456 |
| Texas – 6.3% |
| Arlington Higher Education Finance Corp., Revenue Bonds, Riverwalk Education Foundation (PSF, Gtd), 5.00%, 8/15/47 | | 500,000 | 537,467 |
| Austin Airport System Revenue Bonds, Series A, 5.00%, 11/15/46 | | 1,380,000 | 1,423,366 |
| Austin Convention Enterprises, Inc., Convention Center Revenue Refunding Bonds, First Tier, 5.00%, 1/01/32 | | 625,000 | 644,062 |
| Board of Managers Joint Guadalupe County-City of Seguin Hospital Mortgage Revenue Refunding Bonds, 5.00%, 12/01/40 | | 200,000 | 190,983 |
| Central Texas Regional Mobility Authority Revenue Bonds, Series C, 5.00%, 1/01/27 | | 275,000 | 289,128 |
| | | Par | Value |
| Texas (Continued) |
| Central Texas Regional Mobility Authority Senior Lien Revenue Refunding Bonds, Series A, 5.00%, 1/01/49 | | $ 500,000 | $ 524,059 |
| Dallas Texas Hotel Occupancy Tax Revenue Refunding Bonds, 4.00%, 8/15/30 | | 300,000 | 305,908 |
| Dallas-Fort Worth International Airport Joint Improvement Revenue Bonds, Series C, 5.00%, 11/01/34 | | 445,000 | 448,354 |
| Dallas-Fort Worth International Airport Joint Revenue Refunding Bonds, Series A (AMT), 5.25%, 11/01/30 | | 1,100,000 | 1,107,432 |
| El Paso Texas Airport Revenue Bonds (AMT), 5.00%, 8/15/27 | | 375,000 | 397,456 |
| Fort Bend Independent School District Variable GO Unlimited Refunding Bonds, Series B (PSF, Gtd), 0.72%, 8/01/26(a)(b)(c) | | 860,000 | 782,218 |
| Grand Parkway Transportation Corp., System Toll Revenue Refunding Bonds, Grand Parkway System - First, 4.00%, 10/01/45 | | 265,000 | 253,974 |
| Greater Texoma Utility Authority Contract Revenue Bonds, City of Sherman Project (AGM Insured), 5.00%, 10/01/29 | | 1,000,000 | 1,126,133 |
| Harris County Cultural Educational Facilities Finance Corp., Revenue Refunding Bonds, Texas Children's Hospital, 4.00%, 10/01/38 | | 350,000 | 353,677 |
| Houston Airport System Revenue Bonds, Subseries A (AMT), 5.00%, 7/01/25 | | 500,000 | 515,404 |
| Houston Airport System Revenue Refunding Bonds (AMT), United Airlines, Inc., Improvement Projects, 5.00%, 7/15/27 | | 175,000 | 176,618 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Texas (Continued) |
| Houston Airport System Revenue Refunding Bonds (AMT), United Airlines, Inc., Terminal, 5.00%, 7/01/27 | | $125,000 | $126,135 |
| Houston Airport System Subordinate Revenue Refunding Bonds, Series B, 5.00%, 7/01/26 | | 500,000 | 533,189 |
| Houston Hotel Occupancy Tax & Special Revenue Refunding Bonds, Convention & Entertainment, 5.00%, 9/01/36 | | 510,000 | 551,565 |
| Lower Colorado River Authority Transmission Contract Revenue Refunding Bonds, LCRA Transmission Services Corp., Project, 5.00%, 5/15/35 | | 250,000 | 276,509 |
| Montgomery County Toll Road Authority Senior Lien Revenue Bonds, 5.00%, 9/15/37 | | 500,000 | 505,101 |
| New Hope Cultural Educational Facilities Finance Corp., Retirement Facilities Revenue Refunding Bonds, Presbyterian Village North Project, 5.25%, 10/01/49 | | 100,000 | 80,373 |
| New Hope Cultural Educational Facilities Finance Corp., Retirement Facilities Revenue Refunding Bonds, Westminster Manor Project, 5.00%, 11/01/31 | | 250,000 | 249,145 |
| Northside Texas Independent School District GO Unlimited Refunding Bonds (PSF, Gtd), 1.60%, 8/01/24(a)(b)(c) | | 340,000 | 330,380 |
| Odessa Junior College District Consolidated Revenue Bonds (AGM Insured), 4.00%, 7/01/27 | | 435,000 | 456,111 |
| Port Arthur Certificates GO Limited Bonds (BAM Insured), 5.00%, 2/15/27 | | 345,000 | 371,666 |
| | | Par | Value |
| Texas (Continued) |
| Port Beaumont Navigation District Dock & Wharf Facility Revenue Refunding Bonds (AMT), Jefferson Gulf Coast Energy Project, 4.00%, 1/01/50(d) | | $ 375,000 | $ 266,892 |
| San Antonio Airport System Subordinate Lien Revenue Refunding Bonds, Series A (AMT), 5.00%, 7/01/30 | | 250,000 | 271,574 |
| San Antonio Water Junior Lien Revenue Refunding Bonds, Series A, 5.00%, 5/15/43 | | 500,000 | 527,266 |
| San Antonio Water Junior Lien Variable Revenue Bonds, Series A, 2.63%, 5/01/24(a)(b)(c) | | 1,125,000 | 1,114,558 |
| Tarrant County Cultural Educational Facilities Finance Corp., Revenue Refunding Bonds, Texas Health Resources System Obligation, | | | |
| 5.00%, 2/15/34 | | 400,000 | 423,324 |
| 5.00%, 2/15/47 | | 700,000 | 717,754 |
|
| Texas City Industrial Development Corp., Revenue Bonds, Series 2012, NRG Energy Project, 4.12%, 12/01/45 | | 545,000 | 476,995 |
| Texas State PFA Lease Revenue Refunding Bonds, 4.00%, 2/01/36 | | 250,000 | 260,158 |
| Texas State Private Activity Bond Surface Transportation Corp., Revenue Bonds (AMT), Segment 3C Project, 5.00%, 6/30/58 | | 1,100,000 | 1,102,180 |
| Texas State Private Activity Bond Surface Transportation Corp., Senior Lien Revenue Bonds (AMT), Blueridge Transportation, | | | |
| 5.00%, 12/31/45 | | 500,000 | 501,474 |
| 5.00%, 12/31/55 | | 200,000 | 198,381 |
|
| Texas State Private Activity Bond Surface Transportation Corp., Senior Lien Revenue Refunding Bonds, North Tarrant Express, 4.00%, 12/31/38 | | 750,000 | 713,541 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Texas (Continued) |
|
| Texas State Transportation Commission Central Turnpike System Subordinate Revenue Refunding Bonds, Series C, 5.00%, 8/15/42 | | $ 100,000 | $ 101,058 |
| Texas State Transportation Commission First Tier Toll Revenue Bonds, State Highway, 5.00%, 8/01/57 | | 100,000 | 99,822 |
| Texas State Transportation Commission First Tier Toll Revenue CABS, 0.00%, 8/01/29(e) | | 480,000 | 364,715 |
| Texas State Water Development Board Revenue Bonds, State Water Implementation Fund, 4.00%, 10/15/38 | | 510,000 | 521,331 |
| University of Houston Revenue Refunding Bonds, Series A, 5.00%, 2/15/47 | | 250,000 | 271,554 |
| Waller Independent School District GO Unlimited Bonds (BAM Insured), 5.00%, 2/15/44 | | 235,000 | 259,087 |
| | | | 20,748,077 |
| Utah – 0.2% |
| Salt Lake City Airport Revenue Bonds, Series A (AMT), 5.00%, 7/01/47 | | 805,000 | 822,098 |
| Virginia – 2.8% |
| Arlington County IDA Hospital Facilities Revenue Refunding Bonds, Virginia Hospital Center, 3.75%, 7/01/50 | | 500,000 | 441,458 |
| Chesapeake Bay Bridge & Tunnel District Revenue Bonds, First Tier General Resolution (AGM Insured), 5.00%, 7/01/41 | | 1,000,000 | 1,035,469 |
| Chesapeake Bay Bridge & Tunnel District Revenue First Tier General Resolution Revenue Bonds, 5.00%, 7/01/51 | | 750,000 | 762,821 |
| Chesapeake Hospital Authority Hospital Facilities Revenue Refunding Bonds, Chesapeake Regional Medical Center, 5.00%, 7/01/31 | | 500,000 | 552,984 |
| | | Par | Value |
| Virginia (Continued) |
| Chesapeake Transportation System Senior Toll Road Revenue Bonds, Series A, 5.00%, 7/15/47 | | $ 500,000 | $500,276 |
| Fairfax County EDA Residential Care Facilities Revenue Bonds, Series A, Vinson Hall LLC, Prerefunded, 5.00%, 12/01/42(f) | | 200,000 | 202,016 |
| Fairfax County EDA Residential Care Facilities Revenue Refunding Bonds, Series A, Goodwin House, Inc., Prerefunded, 5.00%, 10/01/36(f) | | 150,000 | 156,151 |
| Fairfax County IDA Health Care Revenue Refunding Bonds, Inova Health System Project, 3.50%, 5/15/39 | | 500,000 | 472,862 |
| James City County EDA Residential Care Facilities Variable Revenue Bonds, United Methodist Home, Prerefunded, 6.00%, 6/01/43(f) | | 99,579 | 99,761 |
| Newport News EDA Residential Care Facilities Revenue Refunding Bonds, Lifespire of Virginia, 5.00%, 12/01/38 | | 560,000 | 538,860 |
| University of Virginia Revenue Refunding Bonds, Series A, 5.00%, 4/01/47 | | 500,000 | 530,878 |
| Virginia State Commonwealth Transportation Board Capital Projects Revenue Bonds, 3.00%, 5/15/37 | | 1,000,000 | 919,809 |
| Virginia State Small Business Financing Authority Senior Lien Revenue Bonds (AMT), Elizabeth River Crossings OpCo, LLC Project, | | | |
| 4.00%, 7/01/32 | | 275,000 | 276,984 |
| 4.00%, 1/01/37 | | 660,000 | 637,679 |
| Virginia State Small Business Financing Authority Senior Lien Revenue Refunding Bonds (AMT), 95 Express Lanes, | | | |
| 5.00%, 7/01/38 | | 645,000 | 668,200 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Virginia (Continued) |
| Virginia State Small Business Financing Authority Senior Lien Revenue Refunding Bonds (AMT), 95 Express Lanes, | | | |
| 4.00%, 7/01/39 | | $ 240,000 | $ 222,905 |
| 4.00%, 1/01/40 | | 280,000 | 256,906 |
| 4.00%, 1/01/48 | | 225,000 | 194,244 |
| Virginia State Small Business Financing Authority Senior Lien Revenue Refunding Bonds (AMT), I-495 Hot Lanes, | | | |
| 5.00%, 12/31/47 | | 350,000 | 352,535 |
| 5.00%, 12/31/57 | | 500,000 | 498,296 |
| | | | 9,321,094 |
| Washington – 2.8% |
| Energy Electric Revenue Refunding Bonds, Columbia Generating Station, 5.00%, 7/01/36 | | 1,200,000 | 1,358,804 |
| King County Public Hospital District No. 1 GO Limited Tax Refunding Bonds, Valley Medical Center, 5.00%, 12/01/26 | | 550,000 | 589,801 |
| King County Sewer Revenue Refunding Bonds, 5.00%, 7/01/42 | | 250,000 | 264,875 |
| Port of Seattle Airport Intermediate Lien Revenue Bonds (AMT), 5.00%, 4/01/44 | | 500,000 | 522,095 |
| Port of Seattle Intermediate Lien Revenue Refunding Bonds (AMT), 5.00%, 8/01/47 | | 250,000 | 263,335 |
| Seattle Housing Authority Revenue Refunding Bonds, Northgate Plaza Project, 1.00%, 6/01/26 | | 500,000 | 458,661 |
| Seattle Municipal Light & Power Revenue Refunding Bonds, 4.00%, 9/01/40 | | 500,000 | 500,608 |
| Seattle Municipal Light & Power Variable Revenue Refunding Bonds, Series B, (SIFMA Municipal Swap Index Yield + 0.25%), 4.11%, 11/01/26(a)(c) | | 750,000 | 730,499 |
| | | Par | Value |
| Washington (Continued) |
| Skagit County Public Hospital District No. 1 Revenue Improvement & Refunding Bonds, Skagit Regional Health, 5.00%, 12/01/28 | | $ 440,000 | $ 456,896 |
| Washington State GO Unlimited Bonds, Series C, | | | |
| 5.00%, 2/01/26 | | 350,000 | 370,968 |
| 5.00%, 2/01/40 | | 2,000,000 | 2,209,158 |
|
| Washington State Health Care Facilities Authority Revenue Bonds, Series A, Providence Health & Services, 4.00%, 10/01/34 | | 500,000 | 499,998 |
| Washington State Health Care Facilities Authority Revenue Refunding Bonds, Series B, Commonspirit Health, 5.00%, 8/01/26(a)(b)(c) | | 615,000 | 638,925 |
| Washington State Higher Educational Facilities Authority Revenue Bonds, Seattle University Project, 4.00%, 5/01/50 | | 250,000 | 233,001 |
| | | | 9,097,624 |
| Wisconsin – 2.3% |
| Clayton Town NANS, Series B, | | | |
| 2.00%, 6/01/24 | | 100,000 | 97,201 |
| 2.00%, 6/01/25 | | 225,000 | 214,884 |
|
| Milwaukee Corp., Purpose GO Unlimited Bonds, Series B3, 4.00%, 4/01/26 | | 1,000,000 | 1,007,401 |
| Park Falls NANS, Series B, 3.00%, 3/01/25 | | 975,000 | 961,517 |
| PFA Education Revenue Bonds, North Carolina Leadership Academy, 5.00%, 6/15/49(d) | | 100,000 | 88,930 |
| PFA Educational Revenue Bonds, Piedmont Community Charter School, | | | |
| 5.00%, 6/15/39 | | 490,000 | 499,531 |
| 5.00%, 6/15/49 | | 150,000 | 149,240 |
|
| PFA Exempt Facilities Revenue Refunding Bonds (AMT), National Gypsum Co., 4.00%, 8/01/35 | | 370,000 | 323,696 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par | Value |
| Wisconsin (Continued) |
|
| PFA Hospital Revenue Refunding Bonds, Series A, WakeMed Hospital, 4.00%, 10/01/49 | | $500,000 | $467,839 |
| PFA Pollution Control Variable Revenue Refunding Bonds, Duke Energy Progress Project, 3.30%, 10/01/26(a)(b)(c) | | 500,000 | 501,274 |
| Public Finance Authority Project Revenue Bonds, CFP3 - Eastern Michigan University Housing Project (BAM Insured), 5.50%, 7/01/52 | | 250,000 | 270,795 |
| Public Finance Authority Revenue Bonds, Roseman University, Unrefunded Balance, 5.00%, 4/01/50(d) | | 250,000 | 231,218 |
| Public Finance Authority Variable Revenue Refunding Bonds, Providence St. Joseph, 4.00%, 10/01/30(a)(b)(c) | | 370,000 | 377,027 |
| Wisconsin Center District Appropriation Revenue Bonds, Milwaukee Arena Project, 5.00%, 12/15/27 | | 200,000 | 212,327 |
| Wisconsin State Health & Educational Facilities Authority Revenue Bonds, Three Pillars Senior Living Communities, 4.00%, 8/15/31 | | 375,000 | 345,946 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Ascension Health Credit Group, 4.00%, 11/15/39 | | 290,000 | 289,288 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Benevolent Corp., Cedar Community, 5.00%, 6/01/41 | | 250,000 | 219,619 |
| | | Par | Value |
| Wisconsin (Continued) |
|
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Series B5, 5.00%, 12/03/24(a)(b)(c) | | $935,000 | $ 956,530 |
| Wisconsin State Health & Educational Facilities Authority Variable Revenue Refunding Bonds, Advocate Aurora Health Credit Group, 5.00%, 1/29/25(a)(b)(c) | | 500,000 | 514,530 |
| | | | 7,728,793 |
Total Municipal Bonds
(Cost $299,688,681) | 281,863,587 |
| | | Par/Number
of Shares | |
| Short-Term Investments – 14.5% |
| Money Market Fund – 1.9% |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(j) | | 6,368,717 | 6,368,717 |
| Municipal Bonds – 12.6% |
| 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(a)(b)(c) | | $3,000,000 | 2,957,661 |
| Bay Area Toll Bridge Authority Variable Revenue Refunding Bonds, San Francisco Bay, (SIFMA Municipal Swap Index Yield + 0.28%), 4.14%, 4/01/24(a)(c) | | 250,000 | 249,661 |
| Botetourt County Residential Care Facility Revenue Refunding Bonds, Series A, Glebe, Inc., 4.75%, 7/01/23 | | 60,000 | 59,990 |
| Broward County Airport System Revenue Bonds, Series A (AMT), 5.00%, 10/01/23 | | 870,000 | 873,293 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| California State Infrastructure & Economic Development Bank Variable Revenue Bonds (AMT), Brightline West Passenger Rail Project, 3.65%, 1/31/24(a)(d) | | $1,500,000 | $1,496,684 |
| California State Statewide Communities Development Authority Variable Revenue Refunding Bonds, Rady Children's Hospital (US Bank NA Loc), 2.85%, 5/01/23(a)(c)(k) | | 200,000 | 200,000 |
| Capital Trust Agency Sustainability Revenue Bonds, The Marie, 4.00%, 6/15/23(d) | | 550,000 | 549,416 |
| Chandler IDA Industrial Development Variable Revenue Bonds (AMT), Intel Corp., Project, 2.70%, 8/14/23(a)(b)(c) | | 500,000 | 497,706 |
| Chesapeake Bay Bridge & Tunnel District Revenue First Tier General Resolution Revenue BANS, 5.00%, 11/01/23 | | 300,000 | 302,161 |
| Chicago Park District GO Limited Tax Refunding Bonds, Series B, 5.00%, 1/01/24 | | 175,000 | 176,682 |
| Clarksville Sewage Works Revenue BANS, 2.75%, 12/11/23 | | 125,000 | 124,123 |
| Cleveland-Cuyahoga County Port Authority Euclid Avenue Development Corp., Revenue Refunding Bonds, 5.00%, 8/01/23 | | 370,000 | 371,375 |
| Clifton Higher Education Finance Corp., Revenue Bonds, Series A, Idea Public School, 5.00%, 8/15/23 | | 325,000 | 325,989 |
| County Square Redevelopment Corp., Installment Purchase Revenue BANS, Greenville County South Carolina Project, 5.00%, 2/09/24 | | 2,000,000 | 2,021,386 |
| Dallas Texas Housing Finance Corp., Estates at Shiloh Revenue Bonds, 1.75%, 7/01/23(a)(b)(c) | | 500,000 | 497,871 |
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| E-470 Public Highway Authority Senior Revenue Refunding Bonds, Series A, 5.00%, 9/01/23 | | $ 150,000 | $ 150,832 |
| Fairfax County IDA Health Care Revenue Refunding Bonds, Inova Health System, 5.00%, 5/15/23(a)(b)(c) | | 500,000 | 500,188 |
| Grundy Kendall & Will Counties Community High School District No. 111 GO Unlimited Refunding Bonds, 4.00%, 5/01/23 | | 175,000 | 175,000 |
| Illinois State GO Unlimited Bonds, Series B, 5.00%, 3/01/24 | | 250,000 | 252,818 |
| Indiana State Finance Authority Revenue Refunding Bonds, Valparaiso University Project, 5.00%, 10/01/23 | | 585,000 | 587,670 |
| Jacksonville Pollution Control Revenue Refunding Bonds, Florida Power & Light Company Project, 4.00%, 5/01/23(a)(c)(k) | | 100,000 | 100,000 |
| Kentucky State Public Energy Authority Gas Supply Revenue Bonds, Series A, 4.00%, 4/01/24(a)(b)(c) | | 475,000 | 475,422 |
| Kingfisher Special Projects Authority Educational Facilities Lease Revenue Bonds, Kingfisher Public Schools Project, 4.00%, 3/01/24 | | 600,000 | 603,162 |
| Louisiana Stadium & Exposition District Revenue BANS, 4.00%, 7/03/23 | | 1,500,000 | 1,500,491 |
| Louisiana State Public Facilities Authority Hospital Revenue Bonds, Louisiana Children's Medical Center Project, 5.00%, 6/01/23(a)(b)(c) | | 1,160,000 | 1,161,058 |
| Louisville Regional Airport Authority Airport System Revenue Refunding Bonds, Series A (AMT), 5.00%, 7/01/23 | | 500,000 | 500,963 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Lynchburg EDA Hospital Variable Revenue Refunding Bonds, Centra Health Obligated Group (Truist Bank LOC), 3.57%, 5/01/23(a)(c)(k) | | $ 100,000 | $ 100,000 |
| 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 | 700,000 |
| Main Street Natural Gas, Inc., Gas Supply Revenue Bonds, Series A, 4.00%, 9/01/23(a)(b)(c) | | 610,000 | 610,453 |
| Main Street Natural Gas, Inc., Gas Supply Revenue Bonds, Subseries C, 4.00%, 12/01/23(a)(b)(c) | | 250,000 | 250,354 |
| Main Street Natural Gas, Inc., Gas Supply Variable Revenue Bonds, Series B, 4.00%, 12/01/23 | | 355,000 | 355,661 |
| Maryland State Community Development Administration Department Housing Revenue Bonds, Series A, Woodside Gardens, 1.33%, 1/01/24(d) | | 2,000,000 | 1,950,129 |
| Mcintosh County Educational Facilities Authority Lease Revenue Bonds, Checotah Public Schools Project, 2.00%, 9/01/23 | | 300,000 | 297,555 |
| Metropolitan Transportation Authority Variable Revenue Bonds, Subseries D-1, (SOFR + 0.33%), 3.55%, 4/01/24(a)(c) | | 900,000 | 891,210 |
| Michigan State Finance Authority Revenue Refunding Bonds, Michigan Health, Escrowed to Maturity, 5.00%, 6/01/23 | | 390,000 | 390,538 |
| Mississippi State Hospital Equipment & Facilities Authority Revenue Refunding Bonds, Forrest Country General Hospital Project, 5.00%, 1/01/24 | | 400,000 | 403,712 |
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| 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 | $ 151,233 |
| Missouri State Public Utilities Commission Revenue Notes, 0.75%, 8/01/23 | | 2,000,000 | 1,980,855 |
| Muskogee Industrial Trust Educational Lease Revenue Bonds, Muskogee Public Schools Project, 5.00%, 9/01/23 | | 900,000 | 903,442 |
| New Jersey State EDA Private Activity Revenue Bonds (AMT), The Goethals Project, 5.00%, 1/01/24 | | 150,000 | 150,863 |
| New Jersey State EDA Revenue Refunding Bonds, Series GGG, School Facilities Construction, 5.25%, 9/01/23(d) | | 1,500,000 | 1,507,797 |
| New Jersey State EDA Revenue Refunding Bonds, Series XX, 5.00%, 6/15/23 | | 170,000 | 170,288 |
| New York State Transportation Development Corp., Special Facility Revenue Refunding Bonds (AMT), Terminal 4 John F. Kennedy International Airport Project, 5.00%, 12/01/23 | | 1,000,000 | 1,005,200 |
| Newark Board of Education GO Unlimited Refunding Bonds, Sustainability Bonds (School Board Resource Fund Program), 5.00%, 7/15/23 | | 300,000 | 301,012 |
| Newark Housing Authority Port Newark Marine Terminal Rental Revenue Refunding Bonds, Additional Newark Redevelopment Project (NATL Insured), 5.25%, 1/01/24 | | 500,000 | 502,506 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| North Carolina State Capital Facilities Finance Agency Educational Facilities Revenue Refunding Bonds, High Point University, 4.00%, 5/01/23 | | $ 300,000 | $ 300,000 |
| North Carolina State Turnpike Authority Triangle Expressway System Revenue BANS, Escrowed to Maturity, 5.00%, 2/01/24 | | 200,000 | 202,707 |
| Northside Texas Independent School District Variable GO Unlimited Bonds (PSF, Gtd), 2.75%, 8/01/23(a)(b)(c) | | 1,000,000 | 996,405 |
| Orlando Tourist Development Senior Lien Tax Revenue Refunding Bonds (AGM Insured), 5.00%, 11/01/23 | | 1,000,000 | 1,007,106 |
| Osage County Industrial Authority Use Tax Revenue BANS, 2.00%, 9/01/23 | | 1,500,000 | 1,487,029 |
| Pennsylvania State Economic Development Financing Authority UPMC Revenue Bonds, Series A-1, 5.00%, 4/15/24 | | 1,200,000 | 1,218,891 |
| Pennsylvania State Turnpike Commission Variable Revenue Refunding Bonds, Series B, (SIFMA Municipal Swap Index Yield + 0.70%), 4.56%, 12/01/23 | | 500,000 | 500,377 |
| Pequea Valley School District GO Limited Bonds (State Aid Withholding), 2.00%, 5/15/23 | | 175,000 | 174,875 |
| PMA Levy & Aid TRANS, Series A, 4.00%, 8/24/23 | | 500,000 | 500,303 |
| Puerto Rico Commonwealth Restructured GO Unlimited Bonds, Series A1, 5.25%, 7/01/23 | | 30,130 | 30,170 |
| Puerto Rico Electric Power Authority Power Revenue Refunding Bonds, Series ZZ, 5.25%, 7/01/23(i) | | 175,000 | 122,938 |
| | | Par/Number
of Shares | Value |
| Municipal Bonds (Continued) |
| Sand Creek Metropolitan District GO Limited Refunding Bonds, Series A (AGM Insured), 4.00%, 12/01/23 | | $ 180,000 | $ 180,706 |
| Tampa Hospital Revenue Bonds, H. Lee Moffitt Cancer Center, 5.00%, 7/01/23 | | 150,000 | 150,314 |
| United Local School District COPS (BAM Insured), 3.00%, 12/01/23 | | 330,000 | 328,434 |
| Wagoner County School Development Authority Educational Facilities Lease Revenue Bonds, Wagoner Public Schools Project, 4.00%, 9/01/23 | | 1,060,000 | 1,061,942 |
| Warrick County, Indiana Environmental Improvement Variable Revenue Bonds (AMT), Vectren Energy Delivery, 0.88%, 9/01/23(a)(b)(c) | | 1,000,000 | 990,444 |
| Watford City North Dakota State Aid Certificates Indebtedness Revenue Refunding Bonds (AGM Insured), 3.00%, 12/01/23 | | 800,000 | 793,930 |
| Will County Community School District No. 161 Summit Hill Refunding GO Unlimited Refunding Bonds, 4.00%, 1/01/24 | | 470,000 | 471,924 |
| Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Beloit Health System, Inc., 5.00%, 7/01/23 | | 645,000 | 646,135 |
| York County EDA PCR Bonds, Series A, Electric & Power, 1.90%, 6/01/23(a)(b)(c) | | 1,000,000 | 997,824 |
| | | | 41,496,864 |
Total Short-Term Investments
(Cost $48,215,540) | 47,865,581 |
Total Investments – 99.7%
(Cost $347,904,221) | 329,729,168 |
| Other Assets less Liabilities – 0.3% | 1,008,972 |
| NET ASSETS – 100.0% | $330,738,140 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| Percentages shown are based on Net Assets. |
| |
| (a) | Maturity date represents the puttable date. | | |
| (b) | These securities are remarketed by an agent, and the interest rate is determined by general market conditions and supply and demand. | | |
| (c) | Variable rate security. Rate as of April 30, 2023 is disclosed. | | |
| (d) | 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. | | |
| (e) | Zero coupon bond. | | |
| (f) | Maturity date represents the prerefunded date. | | |
| (g) | When-issued security. Coupon rate was not yet in effect at April 30, 2023. | | |
| (h) | Issuer has defaulted on terms of debt obligation. | | |
| (i) | Issuer has defaulted on terms of debt obligation. Income is not being accrued. | | |
| (j) | 7-day current yield as of April 30, 2023 is disclosed. | | |
| (k) | 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 Administration |
| FHA | Federal Housing Administration |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| GNMA | Government National Mortgage Association |
| GO | Government Obligation |
| Gtd | Guaranteed |
| HFA | Housing Finance Authority |
| IBC | Insured Bond Certificates |
| IDA | Industrial Development Association |
| L.P. | Limited Partnership |
| LLC | Limited Liability Company |
| LOC | Letter of Credit |
| MFH | Multifamily Housing |
| MTA | Metropolitan Transportation Authority |
| NATL | National Interstate Insurance |
| 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 |
| TRANS | Tax Revenue Anticipation Bonds |
| TRB | Tax Revenue Bonds |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Municipal Bond Fund
| Municipal Issue Type (%)(a),(b) | |
| Revenue Bonds | 82.5 |
| General Obligation Unlimited Bonds | 8.1 |
| General Obligation Limited Bonds | 2.4 |
| Certificates of Participation | 2.1 |
| Revenue Notes | 1.9 |
| Tax Allocation Bonds | 0.3 |
| Special Assessment Bonds | 0.3 |
| Special Tax Bonds | 0.2 |
| Total | 97.8 |
| (a)Percentages shown are based on Net Assets. |
| (b)Excludes Short-Term Money Market Fund Investments and Other. |
| Sector Diversification (%)(a) | |
| General | 18.4 |
| Medical | 14.8 |
| Airport | 10.3 |
| Transportation | 8.9 |
| General Obligation | 7.2 |
| Higher Education | 6.2 |
| Education | 5.5 |
| All other sectors less than 5%(b) | 28.7 |
| Total | 100.0 |
| (a)Percentages shown are based on Net Assets. |
| (b)Includes Other. |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, in valuing the Fund's investments carried at fair value:
| Morningstar Municipal Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Investments | | | | |
| Municipal Bonds | $ — | $281,863,587 | $— | $281,863,587 |
| Short-Term Investments | 6,368,717 | 41,496,864 | — | 47,865,581 |
| Total Investments | $6,368,717 | $323,360,451 | $— | $329,729,168 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Defensive Bond Fund
| | | Par | Value |
| Asset-Backed Securities – 34.2% |
| Automobile – 8.7% |
| American Credit Acceptance Receivables Trust, | | | |
| Series 2021-4, Class C, 1.32%, 2/14/28(a) | | $182,000 | $177,858 |
| Series 2022-1, Class C, 2.12%, 3/13/28(a) | | 389,000 | 376,206 |
| Avis Budget Rental Car Funding AESOP LLC, | | | |
| Series 2023-1A, Class A, 5.25%, 4/20/29(a) | | 101,000 | 101,813 |
| Series 2023-4A, Class A, 5.49%, 6/20/29(a) | | 300,000 | 304,018 |
|
| BMW Vehicle Lease Trust, Series 2022-1, Class A4, 1.23%, 5/27/25 | | 255,000 | 244,230 |
| CarMax Auto Owner Trust, | | | |
| Series 2022-1, Class A3, 1.47%, 12/15/26 | | 519,000 | 496,931 |
| Series 2023-2, Class A4, 5.01%, 11/15/28 | | 172,000 | 172,688 |
| Series 2023-1, Class A4, 4.65%, 1/16/29 | | 100,000 | 100,448 |
|
| Chesapeake Funding II LLC, Series 2020-1A, Class C, 2.14%, 8/15/32(a) | | 159,000 | 156,632 |
| Drive Auto Receivables Trust, Series 2021-3, Class C, 1.47%, 1/15/27 | | 625,000 | 596,603 |
| DT Auto Owner Trust, | | | |
| Series 2021-3A, Class C, 0.87%, 5/17/27(a) | | 149,000 | 141,519 |
| Series 2021-4A, Class C, 1.50%, 9/15/27(a) | | 116,000 | 108,911 |
| Series 2022-1A, Class C, 2.96%, 11/15/27(a) | | 162,000 | 155,877 |
|
| Enterprise Fleet Financing LLC, Series 2023-1, Class A3, 5.42%, 10/22/29(a) | | 226,000 | 229,391 |
| Exeter Automobile Receivables Trust, Series 2021-4A, Class C, 1.46%, 10/15/27 | | 356,000 | 339,870 |
| Flagship Credit Auto Trust, | | | |
| Series 2021-4, Class B, 1.49%, 2/15/27(a) | | 73,000 | 68,907 |
| Series 2021-2, Class C, 1.27%, 6/15/27(a) | | 150,000 | 140,446 |
|
| Ford Credit Auto Lease Trust, Series 2021-B, Class C, 0.90%, 5/15/26 | | 176,000 | 169,438 |
| | | Par | Value |
| Automobile (Continued) |
| Ford Credit Auto Owner Trust, | | | |
| Series 2022-A, Class A3, 1.29%, 6/15/26 | | $279,000 | $267,532 |
| Series 2023-A, Class A4, 4.56%, 12/15/28 | | 114,000 | 114,575 |
| GM Financial Consumer Automobile Receivables Trust, | | | |
| Series 2020-3, Class C, 1.37%, 1/16/26 | | 50,000 | 47,552 |
| Series 2022-1, Class A3, 1.26%, 11/16/26 | | 244,000 | 232,631 |
| Series 2023-1, Class A4, 4.59%, 7/17/28 | | 122,000 | 122,538 |
|
| GM Financial Revolving Receivables Trust, Series 2021-1, Class A, 1.17%, 6/12/34(a) | | 302,000 | 269,948 |
| Hertz Vehicle Financing LLC, | | | |
| Series 2022-2A, Class A, 2.33%, 6/26/28(a) | | 298,000 | 266,869 |
| Series 2022-5A, Class A, 3.89%, 9/25/28(a) | | 614,000 | 585,382 |
|
| Honda Auto Receivables Owner Trust, Series 2021-4, Class A3, 0.88%, 1/21/26 | | 379,000 | 361,988 |
| Hyundai Auto Lease Securitization Trust, Series 2022-A, Class A4, 1.32%, 12/15/25(a) | | 300,000 | 288,242 |
| Hyundai Auto Receivables Trust, Series 2021-C, Class A3, 0.74%, 5/15/26 | | 250,000 | 239,044 |
| Mercedes-Benz Auto Receivables Trust, Series 2023-1, Class A4, 4.31%, 4/16/29 | | 100,000 | 99,663 |
| Nissan Auto Receivables Owner Trust, Series 2023-A, Class A4, 4.85%, 6/17/30 | | 126,000 | 127,057 |
| Prestige Auto Receivables Trust, | | | |
| Series 2021-1A, Class B, 1.19%, 4/15/26(a) | | 323,000 | 310,699 |
| Series 2021-1A, Class C, 1.53%, 2/15/28(a) | | 116,000 | 108,708 |
|
| Santander Drive Auto Receivables Trust, Series 2021-4, Class C, 1.26%, 2/16/27 | | 518,000 | 495,878 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Automobile (Continued) |
| Santander Retail Auto Lease Trust, | | | |
| Series 2022-A, Class A3, 1.34%, 7/21/25(a) | | $262,000 | $ 250,958 |
| Series 2022-A, Class A4, 1.42%, 1/20/26(a) | | 157,000 | 148,632 |
| Series 2022-A, Class B, 1.61%, 1/20/26(a) | | 86,000 | 81,159 |
|
| Toyota Auto Loan Extended Note Trust, Series 2022-1A, Class A, 3.82%, 4/25/35(a) | | 429,000 | 417,853 |
| Toyota Auto Receivables Owner Trust, Series 2023-A, Class A4, 4.42%, 8/15/28 | | 125,000 | 124,967 |
| Volkswagen Auto Loan Enhanced Trust, Series 2021-1, Class A3, 1.02%, 6/22/26 | | 449,000 | 430,097 |
| Westlake Automobile Receivables Trust, | | | |
| Series 2021-2A, Class C, 0.89%, 7/15/26(a) | | 406,000 | 386,481 |
| Series 2021-3A, Class B, 1.29%, 1/15/27(a) | | 599,000 | 578,311 |
| Series 2021-3A, Class C, 1.58%, 1/15/27(a) | | 598,000 | 566,436 |
| Series 2022-1A, Class C, 3.11%, 3/15/27(a) | | 448,000 | 431,272 |
| World Omni Auto Receivables Trust, | | | |
| Series 2020-C, Class C, 1.39%, 5/17/27 | | 50,000 | 46,978 |
| Series 2023-A, Class A4, 4.66%, 5/15/29 | | 114,000 | 114,578 |
| Series 2023-B, Class A4, 4.68%, 5/15/29 | | 175,000 | 175,324 |
| | | | 11,773,138 |
| Automobile Floor Plan – 0.4% |
| Ford Credit Floorplan Master Owner Trust, Series 2018-4, Class A, 4.06%, 11/15/30 | | 546,000 | 529,356 |
| Other – 24.9% |
| ABPCI Direct Lending Fund ABS I Ltd., Series 2020-1A, Class B, 4.94%, 12/20/30(a)(b) | | 891,000 | 808,946 |
| ABPCI Direct Lending Fund ABS II LLC, | | | |
| Series 2022-2A, Class A1, (3M CME Term SOFR + 2.10%, 2.10% Floor), 7.18%, 3/01/32(a)(b)(c) | | 224,000 | 218,554 |
| | | Par | Value |
| Other (Continued) |
| ABPCI Direct Lending Fund ABS II LLC, | | | |
| Series 2022-2A, Class C, 8.24%, 3/01/32(a)(b) | | $935,000 | $727,083 |
|
| ABPCI Direct Lending Fund CLO II LLC, Series 2017-1A, Class ER, (3M USD LIBOR + 7.60%, 7.60% Floor), 12.85%, 4/20/32(a)(c) | | 746,000 | 684,943 |
| ABPCI Direct Lending Fund CLO X L.P., Series 2020-10A, Class A1A, (3M USD LIBOR + 1.95%, 1.95% Floor), 6.76%, 1/20/32(a)(c) | | 250,000 | 246,633 |
| ABPCI Direct Lending Fund IX LLC, Series 2020-9A, Class A1R, (3M USD LIBOR + 1.40%, 1.40% Floor), 6.69%, 11/18/31(a)(c) | | 378,000 | 370,517 |
| Blackrock Mount Adams CLO IX L.P., Series 2021-9A, Class A1, (3M USD LIBOR + 1.37%, 1.37% Floor), 6.32%, 9/22/31(a)(c) | | 259,000 | 255,142 |
| CARS-DB4 L.P., Series 2020-1A, Class A1, 2.69%, 2/15/50(a) | | 144,433 | 137,031 |
| Cerberus Loan Funding XL LLC, Series 2023-1A, Class A, (3M CME Term SOFR + 2.40%, 2.40% Floor), 7.19%, 3/22/35(a)(c) | | 250,000 | 249,971 |
| Cerberus Loan Funding XXIX L.P., Series 2020-2A, Class A, (3M USD LIBOR + 1.90%, 1.90% Floor), 7.16%, 10/15/32(a)(c) | | 939,000 | 925,357 |
| Cerberus Loan Funding XXVIII L.P., | | | |
| Series 2020-1A, Class A, (3M USD LIBOR + 1.85%, 1.85% Floor), 7.11%, 10/15/31(a)(c) | | 579,687 | 576,005 |
| Series 2020-1A, Class D, (3M USD LIBOR + 5.30%, 5.30% Floor), 10.56%, 10/15/31(a)(c) | | 764,000 | 754,815 |
|
| Cerberus Loan Funding XXXI L.P., Series 2021-1A, Class A, (3M USD LIBOR + 1.50%, 1.50% Floor), 6.76%, 4/15/32(a)(c) | | 310,625 | 308,142 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Other (Continued) |
|
| CNH Equipment Trust, Series 2023-A, Class A4, 4.77%, 10/15/30 | | $100,000 | $100,726 |
| Coinstar Funding LLC, Series 2017-1A, Class A2, 5.22%, 4/25/47(a) | | 872,320 | 676,545 |
| Cologix Data Centers U.S. Issuer LLC, Series 2021-1A, Class A2, 3.30%, 12/26/51(a) | | 412,000 | 372,663 |
| Conn's Receivables Funding LLC, Series 2021-A, Class B, 2.87%, 5/15/26(a) | | 152,341 | 151,024 |
| Dell Equipment Finance Trust, Series 2021-2, Class C, 0.94%, 12/22/26(a) | | 104,000 | 99,161 |
| Diamond Infrastructure Funding LLC, Series 2021-1A, Class C, 3.47%, 4/15/49(a) | | 104,000 | 83,470 |
| Diamond Issuer, Series 2021-1A, Class C, 3.79%, 11/20/51(a) | | 282,000 | 228,547 |
| Elm Trust, | | | |
| Series 2020-3A, Class A2, 2.95%, 8/20/29(a) | | 109,763 | 102,447 |
| Series 2020-3A, Class B, 4.48%, 8/20/29(a) | | 272,351 | 238,267 |
| Series 2020-4A, Class A2, 2.29%, 10/20/29(a) | | 104,553 | 96,483 |
| Series 2020-4A, Class B, 3.87%, 10/20/29(a) | | 326,215 | 279,500 |
|
| FCI Funding, Series 2021-1A, Class A, 1.13%, 4/15/33(a) | | 36,634 | 34,964 |
| Fortress Credit Opportunities IX CLO Ltd., Series 2017-9A, Class A1TR, (3M USD LIBOR + 1.55%, 1.55% Floor), 6.81%, 10/15/33(a)(c) | | 954,000 | 926,261 |
| Fortress Credit Opportunities XI CLO Ltd., Series 2018-11A, Class A1T, (3M USD LIBOR + 1.30%), 6.56%, 4/15/31(a)(c) | | 373,000 | 368,722 |
| | | Par | Value |
| Other (Continued) |
|
| Fortress Credit Opportunities XVII CLO Ltd., Series 2022-17A, Class A, (3M CME Term SOFR + 1.37%, 1.37% Floor), 6.36%, 1/15/30(a)(c) | | $367,700 | $361,107 |
| Golub Capital Partners ABS Funding Ltd., | | | |
| Series 2020-1A, Class A2, 3.21%, 1/22/29(a) | | 769,000 | 721,883 |
| Series 2020-1A, Class B, 4.50%, 1/22/29(a) | | 476,000 | 430,902 |
| Series 2021-1A, Class A2, 2.77%, 4/20/29(a) | | 161,000 | 149,320 |
| Series 2021-1A, Class B, 3.82%, 4/20/29(a) | | 382,000 | 346,482 |
| Series 2021-2A, Class A, 2.94%, 10/19/29(a) | | 796,000 | 705,889 |
| Series 2021-2A, Class B, 3.99%, 10/19/29(a) | | 926,000 | 802,132 |
|
| Golub Capital Partners CLO 36m Ltd., Series 2018-36A, Class A, (3M USD LIBOR + 1.30%), 6.11%, 2/05/31(a)(c) | | 562,000 | 554,852 |
| Golub Capital Partners CLO Ltd., | | | |
| Series 2018-38A, Class C, (3M USD LIBOR + 2.80%, 2.80% Floor), 8.05%, 7/20/30(a)(c) | | 507,000 | 485,527 |
| Series 2019-42A, Class A2, (3M USD LIBOR + 2.00%, 2.00% Floor), 7.25%, 4/20/31(a)(c) | | 472,000 | 465,344 |
| HPEFS Equipment Trust, | | | |
| Series 2022-1A, Class B, 1.79%, 5/21/29(a) | | 226,000 | 215,886 |
| Series 2022-1A, Class C, 1.96%, 5/21/29(a) | | 150,000 | 141,884 |
|
| Ivy Hill Middle Market Credit Fund XVIII Ltd., Series 18A, Class E, (3M USD LIBOR + 7.75%, 7.75% Floor), 13.02%, 4/22/33(a)(c) | | 970,000 | 863,190 |
| John Deere Owner Trust, Series 2023-A, Class A4, 5.01%, 12/17/29 | | 123,000 | 125,014 |
| Kubota Credit Owner Trust, Series 2023-1A, Class A4, 5.07%, 2/15/29(a) | | 100,000 | 100,848 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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), 6.74%, 10/17/31(a)(c) | | $202,000 | $198,548 |
| Series 2019-2A, Class A2R, 2.52%, 10/17/31(a) | | 100,000 | 92,670 |
|
| Lake Shore MM CLO IV Ltd., Series 2021-1A, Class X, (3M USD LIBOR + 1.18%, 1.18% Floor), 6.44%, 10/15/33(a)(c) | | 96,667 | 96,171 |
| Legal Fee Funding LLC, Series 2006-1A, Class A, 8.00%, 7/20/36(a) | | 5,738 | 4,561 |
| MCF CLO IX Ltd., Series 2019-1A, Class A1R, (3M CME Term SOFR + 1.50%, 1.50% Floor), 6.49%, 7/17/31(a)(c) | | 971,000 | 955,260 |
| Monroe Capital ABS Funding Ltd., | | | |
| Series 2021-1A, Class A2, 2.82%, 4/22/31(a)(b) | | 403,000 | 371,178 |
| Series 2021-1A, Class B, 3.91%, 4/22/31(a)(b) | | 221,000 | 198,781 |
|
| NRZ Advance Receivables Trust, Series 2020-T2, Class AT2, 1.48%, 9/15/53(a) | | 930,000 | 908,637 |
| Oportun Funding XIV LLC, Series 2021-A, Class A, 1.21%, 3/08/28(a) | | 133,375 | 127,328 |
| Oportun Issuance Trust, | | | |
| Series 2021-B, Class A, 1.47%, 5/08/31(a) | | 230,000 | 208,670 |
| Series 2021-C, Class A, 2.18%, 10/08/31(a) | | 803,000 | 728,158 |
|
| Owl Rock CLO III Ltd., Series 2020-3A, Class A1L, (3M USD LIBOR + 1.80%), 7.05%, 4/20/32(a)(c) | | 400,000 | 391,716 |
| Owl Rock CLO VI Ltd., Series 2021-6A, Class A, (3M USD LIBOR + 1.45%, 1.45% Floor), 6.41%, 6/21/32(a)(c) | | 915,000 | 898,566 |
| Owl Rock Technology Financing LLC, Series 2020-1A, Class A, (3M USD LIBOR + 2.95%, 2.95% Floor), 8.21%, 1/15/31(a)(c) | | 778,988 | 764,336 |
| | | Par | Value |
| Other (Continued) |
|
| Parliament CLO II Ltd., Series 2021-2A, Class A, (3M USD LIBOR + 1.35%, 1.35% Floor), 6.27%, 8/20/32(a)(c) | | $332,345 | $327,038 |
| Parliament Funding II Ltd., Series 2020-1A, Class AR, (3M USD LIBOR + 1.25%, 1.25% Floor), 6.50%, 10/20/31(a)(c) | | 345,440 | 339,281 |
| Pawneee Equipment Receivables LLC, Series 2021-1, Class A2, 1.10%, 7/15/27(a) | | 105,903 | 101,758 |
| PFS Financing Corp., | | | |
| Series 2020-E, Class B, 1.57%, 10/15/25(a) | | 747,000 | 729,701 |
| Series 2020-G, Class A, 0.97%, 2/15/26(a) | | 531,000 | 512,372 |
| Series 2020-G, Class B, 1.57%, 2/15/26(a) | | 100,000 | 96,233 |
| Series 2021-A, Class A, 0.71%, 4/15/26(a) | | 367,000 | 349,720 |
| Series 2021-A, Class B, 0.96%, 4/15/26(a) | | 100,000 | 95,023 |
| Series 2021-B, Class A, 0.77%, 8/15/26(a) | | 317,000 | 298,302 |
| Series 2021-B, Class B, 1.09%, 8/15/26(a) | | 101,000 | 94,775 |
| Series 2022-A, Class A, 2.47%, 2/15/27(a) | | 899,000 | 857,367 |
| PRET LLC, | | | |
| Series 2021-NPL6, Class A1, (Step to 5.49% on 12/25/24), 2.49%, 7/25/51(a)(d) | | 202,129 | 189,968 |
| Series 2021-NPL5, Class A1, (Step to 5.49% on 11/25/24), 2.49%, 10/25/51(a)(d) | | 773,126 | 732,265 |
| Pretium Mortgage Credit Partners I LLC, | | | |
| Series 2021-NPL2, Class A1, (Step to 3.47% on 7/27/24), 1.99%, 6/27/60(a)(d) | | 323,909 | 301,205 |
| Series 2021-NPL4, Class A1, (Step to 3.26% on 11/27/24), 2.36%, 10/27/60(a)(d) | | 635,386 | 598,006 |
| Progress Residential Trust, | | | |
| Series 2021-SFR11, Class A, 2.28%, 1/17/39(a) | | 103,770 | 89,555 |
| Series 2021-SFR7, Class A, 1.69%, 8/17/40(a) | | 112,794 | 95,083 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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) | | $ 283,652 | $ 254,713 |
| Towd Point Mortgage Trust, | | | |
| Series 2018-2, Class A1, 3.25%, 3/25/58(a) | | 209,908 | 201,707 |
| Series 2020-4, Class A1, 1.75%, 10/25/60(a) | | 73,115 | 64,118 |
|
| TVEST LLC, Series 2020-A, Class A, 4.50%, 7/15/32(a) | | 39,865 | 39,561 |
| Vantage Data Centers Issuer LLC, Series 2020-1A, Class A2, 1.64%, 9/15/45(a) | | 140,000 | 126,244 |
| VCAT LLC, | | | |
| Series 2021-NPL1, Class A1, (Step to 5.29% on 1/25/24), 2.29%, 12/26/50(a)(d) | | 44,065 | 42,044 |
| Series 2021-NPL2, Class A1, (Step to 5.12% on 4/25/24), 2.11%, 3/27/51(a)(d) | | 217,219 | 206,634 |
| VCP CLO II Ltd., | | | |
| Series 2021-2A, Class E, (3M USD LIBOR + 8.41%), 13.67%, 4/15/31(a)(b)(c) | | 1,119,000 | 1,057,597 |
| Series 2021-2A, Class A1, (3M USD LIBOR + 1.67%), 6.93%, 4/15/31(a)(b)(c) | | 817,000 | 814,303 |
| VCP RRL ABS I Ltd., | | | |
| Series 2021-1A, Class A, 2.15%, 10/20/31(a) | | 315,979 | 286,285 |
| Series 2021-1A, Class B, 2.85%, 10/20/31(a)(b) | | 282,488 | 254,932 |
|
| Verizon Master Trust, Series 2023-3, Class A, 4.73%, 4/21/31(a) | | 474,000 | 476,123 |
| VOLT C LLC, Series 2021-NPL9, Class A1, (Step to 4.99% on 5/25/24), 1.99%, 5/25/51(a)(d) | | 216,773 | 200,370 |
| VOLT XCIV LLC, Series 2021-NPL3, Class A1, (Step to 5.24% on 2/25/24), 2.24%, 2/27/51(a)(d) | | 301,359 | 280,489 |
| VOLT XCV LLC, Series 2021-NPL4, Class A1, (Step to 5.24% on 3/25/24), 2.24%, 3/27/51(a)(d) | | 269,302 | 251,283 |
| | | Par | Value |
| Other (Continued) |
| Woodmont Trust, | | | |
| Series 2019-6A, Class A1R, (3M USD LIBOR + 1.48%, 1.48% Floor), 6.74%, 7/15/31(a)(c) | | $526,000 | $ 514,277 |
| Series 2019-6A, Class A1R2, (3M USD LIBOR + 1.48%, 1.48% Floor), 6.74%, 7/15/31(a)(c) | | 250,000 | 247,168 |
| | | | 33,562,259 |
| Whole Loan – 0.2% |
| RCO VII Mortgage LLC, Series 2021-2, Class A1, (Step to 5.12% on 10/25/24), 2.12%, 9/25/26(a)(d) | | 207,077 | 192,103 |
Total Asset-Backed Securities
(Cost $48,427,073) | 46,056,856 |
| | | Number
of Shares | |
| Common Stocks – 0.6% |
| Institutional Financial Services – 0.0%(e) |
| J.C. Penney Earnout* | | 3,405 | 19,153 |
| Real Estate Services – 0.2% |
| Copper Property CTL Pass Through Trust | | 25,536 | 280,896 |
| Telecommunications – 0.0%(e) |
| Windstream Corp.(f)* | | 3,347 | 16,735 |
| Transportation & Logistics – 0.4% |
| PHI Group, Inc.* | | 44,387 | 443,870 |
Total Common Stocks
(Cost $894,480) | 760,654 |
| | | Par | |
| Corporate Bonds – 2.5% |
| Asset Management – 0.7% |
| Ares Capital Corp., 2.88%, 6/15/28(g) | | $398,000 | 334,416 |
| OWL Rock Core Income Corp., 4.70%, 2/08/27(g) | | 660,000 | 603,032 |
| | | | 937,448 |
| Commercial Support Services – 0.1% |
| Aramark Services, Inc., 6.38%, 5/01/25(a) | | 159,000 | 159,000 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Home & Office Products – 0.2% |
| CD&R Smokey Buyer, Inc., 6.75%, 7/15/25(a)(g) | | $315,000 | $ 276,413 |
| Leisure Facilities & Services – 0.1% |
| Royal Caribbean Cruises Ltd., 11.50%, 6/01/25(a) | | 164,000 | 174,045 |
| Real Estate Investment Trusts – 0.5% |
| American Tower Trust #1, 5.49%, 3/15/28(a) | | 494,000 | 504,493 |
| SBA Tower Trust, 1.63%, 11/15/26(a) | | 117,000 | 102,835 |
| | | | 607,328 |
| Specialty Finance – 0.5% |
| Midcap Financial Issuer Trust, 6.50%, 5/01/28(a) | | 761,000 | 687,447 |
| Telecommunications – 0.4% |
| Consolidated Communications, Inc., 6.50%, 10/01/28(a)(g) | | 381,000 | 297,180 |
| Frontier Communications Holdings LLC, | | | |
| 5.88%, 10/15/27(a) | | 137,000 | 126,107 |
| 6.00%, 1/15/30(a)(g) | | 214,000 | 163,691 |
| | | | 586,978 |
Total Corporate Bonds
(Cost $3,707,062) | 3,428,659 |
|
| 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 | 500,573 |
| Ireland – 0.1% |
| Cimpress PLC, 7.00%, 6/15/26 | | 175,000 | 146,514 |
Total Foreign Issuer Bonds
(Cost $614,827) | 647,087 |
|
| Mortgage-Backed Securities – 4.3% |
| Commercial Mortgage-Backed Securities – 1.0% |
| BX Commercial Mortgage Trust, | | | |
| Series 2021-VOLT, Class E, (1M USD LIBOR + 2.00%, 2.00% Floor), 6.95%, 9/15/36(a)(c) | | 242,000 | 227,460 |
| Series 2021-VOLT, Class F, (1M USD LIBOR + 2.40%, 2.40% Floor), 7.35%, 9/15/36(a)(c) | | 370,000 | 341,286 |
| | | Par | Value |
Commercial Mortgage-Backed Securities
(Continued) |
|
| Hawaii Hotel Trust, Series 2019-MAUI, Class C, (1M USD LIBOR + 1.65%, 1.65% Floor), 6.60%, 5/15/38(a)(c) | | $616,000 | $ 599,008 |
| LoanCore Issuer Ltd., Series 2021-CRE4, Class A, (30D Average SOFR + 0.91%, 0.91% Floor), 5.66%, 7/15/35(a)(c) | | 86,304 | 83,919 |
| VMC Finance LLC, Series 2021-HT1, Class A, (1M USD LIBOR + 1.65%, 1.65% Floor), 6.61%, 1/18/37(a)(c) | | 172,297 | 165,845 |
| | | | 1,417,518 |
| Federal Home Loan Mortgage Corporation – 1.4% |
| Multifamily Structured Pass Through Certificates, | | | |
| Series K068, Class A2, 3.24%, 8/25/27 | | 100,000 | 96,446 |
| Series K072, Class A2, 3.44%, 12/25/27 | | 100,000 | 97,154 |
| Series K077, Class A2, 3.85%, 5/25/28 | | 100,000 | 98,831 |
| Series K079, Class A2, 3.93%, 6/25/28 | | 103,000 | 102,144 |
| Series K080, Class A2, 3.93%, 7/25/28 | | 188,000 | 186,430 |
| Series K081, Class A2, 3.90%, 8/25/28 | | 453,000 | 448,651 |
| Series K082, Class A2, 3.92%, 9/25/28 | | 365,000 | 361,842 |
| Series K083, Class A2, 4.05%, 9/25/28 | | 142,000 | 141,575 |
| Series K085, Class A2, 4.06%, 10/25/28 | | 187,000 | 185,731 |
|
| Real Estate Mortgage Investment Conduits, Series 4162, Class P, 3.00%, 2/15/33 | | 141,643 | 136,772 |
| | | | 1,855,576 |
| Federal National Mortgage Association – 0.1% |
| Interest Strip, Series 284, Class 1, 0.00%, 7/25/27(h) | | 59,520 | 54,857 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Federal National Mortgage Association (Continued) |
| Real Estate Mortgage Investment Conduits, | | | |
| Series 2014-3, Class AM, 2.50%, 1/25/32 | | $ 9,521 | $ 9,476 |
| Series 2012-144, Class PD, 3.50%, 4/25/42 | | 96,404 | 93,705 |
| | | | 158,038 |
| Government National Mortgage Association – 0.3% |
| Series 2012-150, Class IO, 0.44%, 11/16/52(i) | | 681,327 | 6,266 |
| Series 2015-108, Class IO, 0.33%, 10/16/56(i) | | 41,475 | 964 |
| Series 2015-7, Class IO, 0.45%, 1/16/57(i) | | 1,501,008 | 31,233 |
| Series 2020-42, Class IO, 0.94%, 3/16/62(i) | | 1,422,611 | 91,040 |
| Series 2020-43, Class IO, 1.26%, 11/16/61(i) | | 966,302 | 68,341 |
| Series 2020-71, Class IO, 1.09%, 1/16/62(i) | | 1,259,618 | 86,749 |
| Series 2020-75, Class IO, 0.87%, 2/16/62(i) | | 2,267,001 | 137,986 |
| | | | 422,579 |
| Whole Loan – 1.5% |
| Cascade Funding Mortgage Trust, Series 2021-HB6, Class A, 0.90%, 6/25/36(a) | | 108,898 | 103,231 |
| CFMT LLC, | | | |
| Series 2021-HB5, Class A, 0.80%, 2/25/31(a)(i) | | 181,991 | 175,154 |
| Series 2021-HB7, Class A, 1.15%, 10/27/31(a) | | 131,283 | 122,993 |
| Series 2021-HB7, Class M1, 2.12%, 10/27/31(a)(i) | | 192,000 | 177,017 |
| PRPM LLC, | | | |
| Series 2021-2, Class A1, 2.11%, 3/25/26(a)(i) | | 214,078 | 203,131 |
| Series 2021-9, Class A1, (Step to 5.36% on 11/25/24), 2.36%, 10/25/26(a)(d) | | 339,694 | 317,004 |
| Series 2021-10, Class A1, (Step to 5.49% on 11/25/24), 2.49%, 10/25/26(a)(d) | | 344,288 | 322,100 |
| Series 2021-11, Class A1, (Step to 5.49% on 12/25/24), 2.49%, 11/25/26(a)(d) | | 409,567 | 389,576 |
| | | Par | Value |
| Whole Loan (Continued) |
|
| Towd Point Mortgage Trust, Series 2023-1, Class A1, 3.75%, 1/25/63(a) | | $197,466 | $ 184,971 |
| | | | 1,995,177 |
Total Mortgage-Backed Securities
(Cost $6,775,381) | 5,848,888 |
|
| Municipal Bonds – 0.1% |
| Texas – 0.1% |
| Texas Natural Gas Securitization Finance Corp., Taxable Customer Rate Relief Revenue Bonds, 5.10%, 4/01/35 | | 100,000 | 104,982 |
Total Municipal Bonds
(Cost $100,000) | 104,982 |
|
| Term Loans – 2.1%(c) |
| Commercial Support Services – 0.3% |
| Cimpress PLC, Tranche B-1 Term Loan, (1M USD LIBOR + 3.50%, 0.50% Floor), 8.52%, 5/17/28 | | 267,240 | 255,816 |
| Packers Holdings LLC, Initial Term Loan, (1M USD CME Term SOFR + 3.25%, 0.75% Floor), 8.24%, 3/09/28 | | 327,453 | 161,048 |
| | | | 416,864 |
| Health Care Facilities & Services – 0.6% |
| Heartland Dental LLC, 2021 Incremental Term Loan, (1M USD LIBOR + 4.00%), 9.02%, 4/30/25 | | 490,321 | 476,225 |
| PetVet Care Centers LLC, 2021 First Lien Replacement Term Loan, (1M USD LIBOR + 3.50%, 0.75% Floor), 8.52%, 2/14/25 | | 319,391 | 307,014 |
| | | | 783,239 |
| Insurance – 0.3% |
| Asurion LLC, New B-7 Term Loan, (1M USD LIBOR + 3.00%), 8.02%, 11/03/24 | | 432,439 | 431,280 |
| Retail - Discretionary – 0.0%(e) |
| J.C. Penney Corp., Inc., Term Loan, (j) | | 233,386 | 23 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| | | Par | Value |
| Software – 0.4% |
| Azalea TopCo, Inc., Initial Term Loan, (1M USD LIBOR + 3.50%), 8.52%, 7/24/26 | | $327,099 | $ 312,278 |
| Polaris Newco LLC, Dollar Term Loan, (3M USD LIBOR + 4.00%, 0.50% Floor), 9.16%, 6/02/28 | | 325,050 | 300,808 |
| | | | 613,086 |
| Telecommunications – 0.5% |
| Frontier Communications Corp., TLB, (1M USD LIBOR + 3.75%, 0.75% Floor), 8.81%, 5/01/28 | | 362,600 | 345,558 |
| Windstream Services II LLC, Initial Term Loan, (1M USD CME Term SOFR + 6.25%, 1.00% Floor), 11.33%, 9/21/27 | | 307,211 | 276,729 |
| | | | 622,287 |
Total Term Loans
(Cost $3,139,907) | 2,866,779 |
| | | | |
| U.S. Government Obligations – 0.8% |
| U.S. Treasury Notes – 0.8% |
| 3.50%, 1/31/28 | | 1,048,000 | 1,046,813 |
Total U.S. Government Obligations
(Cost $1,041,102) | 1,046,813 |
| | | Number
of Shares | |
| Warrants – 0.0%(e) |
| Telecommunications – 0.0%(e) |
| Windstream Services LLC(f)* | | 318 | 1,590 |
Total Warrants
(Cost $146,140) | 1,590 |
|
| Investment Companies – 45.1% |
| Schwab Intermediate-Term U.S. Treasury ETF(g) | | 294,275 | 14,902,086 |
| | | Number
of Shares | Value |
|
| Schwab Short-Term U.S. Treasury ETF | | 519,615 | $25,336,427 |
| Vanguard Short-Term Corporate Bond ETF(g) | | 154,467 | 11,807,458 |
| Vanguard Short-Term Inflation-Protected Securities ETF | | 180,786 | 8,648,802 |
Total Investment Companies
(Cost $64,433,889) | 60,694,773 |
| | | Par/Number
of Shares | |
| Short-Term Investments – 11.8% |
| Asset-Backed Securities – 0.3% |
| Gracie Point International Funding, (1M USD LIBOR + 0.75%), 5.78%, 11/01/23(a)(c) | | $ 371,607 | 371,597 |
| Corporate Bonds – 0.4% |
| Golub Capital BDC, Inc., 3.37%, 4/15/24 | | 513,000 | 496,091 |
| Money Market Funds – 8.4% |
| Northern Institutional Funds - Liquid Assets Portfolio, 4.85%(k)(l) | | 2,082,163 | 2,082,163 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(k) | | 9,319,628 | 9,319,628 |
| | | | 11,401,791 |
| U.S. Treasury Bills – 2.7% |
| U.S. Treasury Bill, 3.09%, 5/02/23(m) | | 3,664,000 | 3,663,577 |
Total Short-Term Investments
(Cost $15,950,012) | 15,933,056 |
Total Investments – 102.0%
(Cost $145,229,873) | 137,390,137 |
| Liabilities less Other Assets – (2.0)% | (2,662,173) |
| NET ASSETS – 100.0% | $134,727,964 |
| Percentages shown are based on Net Assets. |
| |
| (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. | | |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
| (b) | Restricted security that has been deemed illiquid and is classified as Level 2. At April 30, 2023, the value of these restricted illiquid securities amounted to $4,451,375 or 3.30% 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, 7.18%, 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., 13.67%, 4/15/31 | 2/5/21 | 1,085,430 |
| | VCP CLO II Ltd., 6.93%, 4/15/31 | 3/7/22 | 813,426 |
| | VCP RRL ABS I Ltd., 2.85%, 10/20/31 | 7/28/21 | 282,488 |
| |
|
| (c) | Variable rate security. Rate as of April 30, 2023 is disclosed. |
| (d) | Step coupon bond. Rate as of April 30, 2023 is disclosed. |
| (e) | Amount rounds to less than 0.05%. |
| (f) | Investment is valued using significant unobservable inputs (Level 3). |
| (g) | Security either partially or fully on loan (See Note 7). |
| (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, 2023 is disclosed. |
| (j) | Issuer has defaulted on terms of debt obligation. Income is not being accrued. |
| (k) | 7-day current yield as of April 30, 2023 is disclosed. |
| (l) | Security purchased with the cash proceeds from securities loaned (See Note 7). |
| (m) | Discount rate at the time of purchase. |
| * | Non-Income Producing Security |
| Abbreviations: | |
| 1M | 1 Month |
| 3M | 3 Month |
| 30D | 30 Day |
| ABS | Asset-Backed Security |
| BDC | Business Development Company |
| CLO | Collateralized Loan Obligation |
| CME | Chicago Mercantile Exchange |
| 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, 2023
Schedule of Investments (continued)
Morningstar Defensive Bond Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ — | $46,056,856 | $ — | $ 46,056,856 |
| Common Stocks | 443,870 | 300,049 | 16,735 | 760,654 |
| Corporate Bonds | — | 3,428,659 | — | 3,428,659 |
| Foreign Issuer Bonds | — | 647,087 | — | 647,087 |
| Mortgage-Backed Securities | — | 5,848,888 | — | 5,848,888 |
| Municipal Bonds | — | 104,982 | — | 104,982 |
| Term Loans | — | 2,866,779 | — | 2,866,779 |
| U.S. Government Obligations | — | 1,046,813 | — | 1,046,813 |
| Warrants | — | — | 1,590 | 1,590 |
| Investment Companies | 60,694,773 | — | — | 60,694,773 |
| Short-Term Investments | 11,401,791 | 4,531,265 | — | 15,933,056 |
| Total Investments | $72,540,434 | $64,831,378 | $18,325 | $137,390,137 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Asset-Backed Securities – 0.3% |
| Other – 0.3% |
| AIG CLO LLC, Series 2021-2A, Class E, (3M USD LIBOR + 6.50%, 6.50% Floor), 11.75%, 7/20/34(b)(c) | | $250,000 | $232,803 |
| Pikes Peak CLO 4, Series 2019-4A, Class ER, (3M USD LIBOR + 6.61%, 6.61% Floor), 11.87%, 7/15/34(b)(c) | | 250,000 | 214,552 |
Total Asset-Backed Securities
(Cost $497,698) | 447,355 |
| | | Number
of Shares | |
| Common Stocks – 0.2% |
| Cable & Satellite – 0.0%(d) |
| Altice USA, Inc., Class A* | | 16,055 | 56,193 |
| Engineering & Construction – 0.0%(d) |
| Mcdermott International Ltd.* | | 1,932 | 734 |
| Oil & Gas Producers – 0.2% |
| Battalion Oil Corp.* | | 363 | 2,556 |
| Canadian Natural Resources Ltd. (Canada) | | 1,464 | 89,260 |
| Diamondback Energy, Inc. | | 820 | 116,604 |
| EOG Resources, Inc. | | 473 | 56,509 |
| Pioneer Natural Resources Co. | | 134 | 29,152 |
| | | | 294,081 |
| Technology Services – 0.0%(d) |
| Clarivate PLC* | | 78 | 691 |
Total Common Stocks
(Cost $634,984) | 351,699 |
| | | Par (a) | |
| Convertible Bonds – 1.4% |
| Biotechnology & Pharmaceuticals – 0.3% |
| BioMarin Pharmaceutical, Inc., 1.25%, 5/15/27 | | $335,000 | 345,736 |
| Livongo Health, Inc., 0.88%, 6/01/25 | | 120,000 | 107,969 |
| | | | 453,705 |
| | | Par (a) | Value |
| Cable & Satellite – 0.4% |
| DISH Network Corp., | | | |
| 0.00%, 12/15/25(e) | | $ 175,000 | $ 85,339 |
| 3.37%, 8/15/26 | | 1,175,000 | 553,425 |
| | | | 638,764 |
| Entertainment Content – 0.1% |
| Bilibili, Inc., 0.50%, 12/01/26 | | 105,000 | 87,832 |
| Health Care Facilities & Services – 0.2% |
| Teladoc Health, Inc., 1.25%, 6/01/27 | | 460,000 | 366,920 |
| Household Products – 0.0%(d) |
| Beauty Health (The) Co., 1.25%, 10/01/26(b) | | 15,000 | 12,263 |
| Internet Media & Services – 0.1% |
| Uber Technologies, Inc., 0.00%, 12/15/25(e) | | 240,000 | 208,741 |
| Zillow Group, Inc., 1.38%, 9/01/26 | | 30,000 | 35,010 |
| | | | 243,751 |
| Leisure Facilities & Services – 0.1% |
| NCL Corp. Ltd., 1.12%, 2/15/27 | | 150,000 | 108,777 |
| Penn Entertainment, Inc., 2.75%, 5/15/26 | | 30,000 | 42,735 |
| | | | 151,512 |
| Medical Equipment & Devices – 0.0%(d) |
| Lantheus Holdings, Inc., 2.62%, 12/15/27(b) | | 60,000 | 79,473 |
| Semiconductors – 0.0%(d) |
| Wolfspeed, Inc., | | | |
| 0.25%, 2/15/28 | | 15,000 | 10,868 |
| 1.88%, 12/01/29(b) | | 35,000 | 25,848 |
| | | | 36,716 |
| Software – 0.1% |
| Unity Software, Inc., 0.00%, 11/15/26(e) | | 105,000 | 81,638 |
| Transportation & Logistics – 0.1% |
| Southwest Airlines Co., 1.25%, 5/01/25 | | 210,000 | 224,805 |
Total Convertible Bonds
(Cost $3,113,935) | 2,377,379 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Number
of Shares | Value |
| Convertible Preferred Stocks – 0.1% |
| Technology Services – 0.1% |
| Clarivate PLC, 5.25% | | 3,251 | $130,040 |
Total Convertible Preferred Stocks
(Cost $221,532) | 130,040 |
| | | Par (a) | |
| Corporate Bonds – 41.8% |
| Advertising & Marketing – 0.0%(d) |
| CMG Media Corp., 8.88%, 12/15/27(b) | | $ 55,000 | 42,641 |
| Aerospace & Defense – 0.9% |
| Boeing (The) Co., | | | |
| 3.25%, 2/01/28 | | 117,000 | 109,016 |
| 5.71%, 5/01/40 | | 75,000 | 75,275 |
| 3.85%, 11/01/48 | | 23,000 | 17,141 |
| 5.81%, 5/01/50 | | 88,000 | 87,529 |
| 5.93%, 5/01/60 | | 52,000 | 51,380 |
|
| Lockheed Martin Corp., 5.25%, 1/15/33 | | 111,000 | 118,610 |
| Moog, Inc., 4.25%, 12/15/27(b) | | 15,000 | 14,103 |
| Northrop Grumman Corp., 4.95%, 3/15/53 | | 42,000 | 41,507 |
| Raytheon Technologies Corp., | | | |
| 5.15%, 2/27/33 | | 58,000 | 60,280 |
| 4.45%, 11/16/38 | | 65,000 | 61,897 |
| 4.50%, 6/01/42 | | 67,000 | 63,254 |
| 4.80%, 12/15/43 | | 7,000 | 6,705 |
| 4.35%, 4/15/47 | | 48,000 | 43,590 |
| 5.38%, 2/27/53 | | 61,000 | 64,137 |
|
| Spirit AeroSystems, Inc., 4.60%, 6/15/28 | | 230,000 | 195,126 |
| TransDigm, Inc., | | | |
| 6.25%, 3/15/26(b) | | 200,000 | 200,946 |
| 5.50%, 11/15/27 | | 90,000 | 86,371 |
| 6.75%, 8/15/28(b) | | 300,000 | 304,662 |
| | | | 1,601,529 |
| Apparel & Textile Products – 0.0%(d) |
| Crocs, Inc., 4.13%, 8/15/31(b) | | 20,000 | 16,889 |
| Asset Management – 0.6% |
| Blackstone Holdings Finance Co. LLC, | | | |
| 2.00%, 1/30/32(b) | | 47,000 | 36,033 |
| 6.20%, 4/22/33(b) | | 143,000 | 149,094 |
| | | Par (a) | Value |
| Asset Management (Continued) |
| Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | | | |
| 6.38%, 12/15/25 | | $105,000 | $ 104,107 |
| 6.25%, 5/15/26 | | 105,000 | 103,316 |
| 5.25%, 5/15/27 | | 565,000 | 532,437 |
|
| Main Street Capital Corp., 3.00%, 7/14/26 | | 19,000 | 16,716 |
| OWL Rock Core Income Corp., 7.75%, 9/16/27(b) | | 57,000 | 57,269 |
| | | | 998,972 |
| Automotive – 1.1% |
| Dana, Inc., 4.25%, 9/01/30 | | 45,000 | 36,450 |
| Ford Motor Credit Co. LLC, | | | |
| 4.06%, 11/01/24 | | 505,000 | 490,672 |
| 2.30%, 2/10/25 | | 475,000 | 442,221 |
|
| General Motors Co., 6.13%, 10/01/25 | | 60,000 | 61,069 |
| General Motors Financial Co., Inc., | | | |
| (3M USD LIBOR + 3.60%), 5.75%, 9/30/27(f)(g) | | 260,000 | 220,680 |
| (3M USD LIBOR + 3.44%), 6.50%, 9/30/28(f)(g) | | 120,000 | 103,436 |
| 5.85%, 4/06/30 | | 34,000 | 33,983 |
| (5Y US Treasury CMT + 5.00%), 5.70%, 9/30/30(f)(g) | | 115,000 | 100,481 |
| Harley-Davidson Financial Services, Inc., | | | |
| 3.05%, 2/14/27(b) | | 53,000 | 47,943 |
| 6.50%, 3/10/28(b) | | 39,000 | 39,431 |
| Toyota Motor Credit Corp., | | | |
| 4.40%, 9/20/24 | | 290,000 | 289,171 |
| 4.45%, 6/29/29 | | 60,000 | 60,932 |
| 4.70%, 1/12/33 | | 60,000 | 61,283 |
|
| Wheel Pros, Inc., 6.50%, 5/15/29(b) | | 65,000 | 30,550 |
| | | | 2,018,302 |
| Banking – 2.4% |
| Bank of America Corp., | | | |
| (SOFR + 0.91%), 1.66%, 3/11/27(g) | | 130,000 | 117,479 |
| (SOFR + 0.96%), 1.73%, 7/22/27(g) | | 51,000 | 45,691 |
| (3M USD LIBOR + 1.51%), 3.70%, 4/24/28(g) | | 133,000 | 126,107 |
| (3M USD LIBOR + 1.37%), 3.59%, 7/21/28(g) | | 95,000 | 89,339 |
| (3M USD LIBOR + 1.04%), 3.42%, 12/20/28(g) | | 103,000 | 95,613 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Banking (Continued) |
| Bank of America Corp., | | | |
| (SOFR + 1.63%), 5.20%, 4/25/29(g) | | $ 56,000 | $ 56,372 |
| (SOFR + 1.06%), 2.09%, 6/14/29(g) | | 6,000 | 5,185 |
| (3M USD LIBOR + 1.31%), 4.27%, 7/23/29(g) | | 103,000 | 98,718 |
| (3M USD LIBOR + 1.18%), 3.19%, 7/23/30(g) | | 85,000 | 75,749 |
| (SOFR + 2.15%), 2.59%, 4/29/31(g) | | 41,000 | 34,731 |
| (SOFR + 1.53%), 1.90%, 7/23/31(g) | | 143,000 | 114,838 |
| (SOFR + 1.22%), 2.65%, 3/11/32(g) | | 90,000 | 75,007 |
| (SOFR + 1.32%), 2.69%, 4/22/32(g) | | 304,000 | 254,031 |
| (SOFR + 1.22%), 2.30%, 7/21/32(g) | | 164,000 | 132,306 |
| (SOFR + 1.33%), 2.97%, 2/04/33(g) | | 149,000 | 125,784 |
| (SOFR + 1.83%), 4.57%, 4/27/33(g) | | 76,000 | 72,490 |
| (SOFR + 1.91%), 5.29%, 4/25/34(g) | | 326,000 | 328,180 |
| (5Y US Treasury CMT + 1.20%), 2.48%, 9/21/36(g) | | 237,000 | 181,088 |
| (5Y US Treasury CMT + 2.00%), 3.85%, 3/08/37(g) | | 93,000 | 80,458 |
| (SOFR + 1.93%), 2.68%, 6/19/41(g) | | 7,000 | 4,966 |
| (3M USD LIBOR + 3.15%), 4.08%, 3/20/51(g) | | 22,000 | 18,453 |
| Citigroup, Inc., | | | |
| (SOFR + 1.28%), 3.07%, 2/24/28(g) | | 34,000 | 31,785 |
| (SOFR + 3.91%), 4.41%, 3/31/31(g) | | 41,000 | 39,144 |
|
| First Horizon Bank, 5.75%, 5/01/30 | | 250,000 | 236,295 |
| JPMorgan Chase & Co., | | | |
| (3M CME Term SOFR + 0.58%), 0.97%, 6/23/25(g) | | 266,000 | 252,224 |
| (SOFR + 1.16%), 2.30%, 10/15/25(g) | | 75,000 | 71,636 |
| (SOFR + 1.85%), 2.08%, 4/22/26(g) | | 37,000 | 34,861 |
| (3M USD LIBOR + 1.25%), 3.96%, 1/29/27(g) | | 58,000 | 56,425 |
| (3M CME Term SOFR + 0.70%), 1.04%, 2/04/27(g) | | 179,000 | 160,606 |
| | | Par (a) | Value |
| Banking (Continued) |
| JPMorgan Chase & Co., | | | |
| (SOFR + 0.89%), 1.58%, 4/22/27(g) | | $ 67,000 | $ 60,705 |
| (SOFR + 0.77%), 1.47%, 9/22/27(g) | | 115,000 | 102,402 |
| (SOFR + 1.17%), 2.95%, 2/24/28(g) | | 106,000 | 98,618 |
| (SOFR + 1.89%), 2.18%, 6/01/28(g) | | 42,000 | 37,726 |
| (3M USD LIBOR + 0.95%), 3.51%, 1/23/29(g) | | 76,000 | 71,479 |
| (SOFR + 1.02%), 2.07%, 6/01/29(g) | | 39,000 | 33,961 |
| (3M USD LIBOR + 1.33%), 4.45%, 12/05/29(g) | | 126,000 | 122,655 |
| (SOFR + 1.07%), 1.95%, 2/04/32(g) | | 45,000 | 36,273 |
| (SOFR + 1.26%), 2.96%, 1/25/33(g) | | 31,000 | 26,510 |
| (SOFR + 2.46%), 3.11%, 4/22/41(g) | | 43,000 | 32,836 |
| (SOFR + 2.44%), 3.11%, 4/22/51(g) | | 66,000 | 46,924 |
| Truist Financial Corp., | | | |
| (3M USD LIBOR + 0.65%), 5.52%, 3/15/28(c) | | 106,000 | 95,961 |
| (SOFR + 1.85%), 5.12%, 1/26/34(g) | | 31,000 | 30,058 |
| Wells Fargo & Co., | | | |
| (SOFR + 2.02%), 5.39%, 4/24/34(g) | | 163,000 | 165,815 |
| (SOFR + 2.53%), 3.07%, 4/30/41(g) | | 21,000 | 15,753 |
| (SOFR + 4.50%), 5.01%, 4/04/51(g) | | 48,000 | 45,422 |
| (SOFR + 2.13%), 4.61%, 4/25/53(g) | | 150,000 | 134,325 |
| | | | 4,172,984 |
| Beverages – 0.0%(d) |
| Constellation Brands, Inc., 4.90%, 5/01/33 | | 21,000 | 21,070 |
| Biotechnology & Pharmaceuticals – 1.4% |
| AbbVie, Inc., | | | |
| 3.20%, 5/14/26 | | 68,000 | 65,504 |
| 3.20%, 11/21/29 | | 77,000 | 71,154 |
| 4.50%, 5/14/35 | | 83,000 | 80,779 |
| 4.05%, 11/21/39 | | 26,000 | 22,999 |
| 4.63%, 10/01/42 | | 59,000 | 53,573 |
| 4.25%, 11/21/49 | | 39,000 | 34,186 |
| Amgen, Inc., | | | |
| 2.20%, 2/21/27 | | 59,000 | 54,584 |
| 2.45%, 2/21/30 | | 36,000 | 31,492 |
| 5.25%, 3/02/30 | | 41,000 | 42,109 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Biotechnology & Pharmaceuticals (Continued) |
| Amgen, Inc., | | | |
| 2.30%, 2/25/31 | | $ 22,000 | $ 18,639 |
| 5.25%, 3/02/33 | | 63,000 | 64,821 |
| 3.15%, 2/21/40 | | 96,000 | 74,708 |
| 5.60%, 3/02/43 | | 178,000 | 183,162 |
| 5.65%, 3/02/53 | | 129,000 | 133,637 |
| 2.77%, 9/01/53 | | 46,000 | 29,458 |
| 5.75%, 3/02/63 | | 53,000 | 54,895 |
| Bausch Health Cos., Inc., | | | |
| 6.13%, 2/01/27(b) | | 65,000 | 46,837 |
| 4.87%, 6/01/28(b) | | 520,000 | 342,550 |
| 6.25%, 2/15/29(b) | | 120,000 | 54,996 |
| 5.00%, 2/15/29(b) | | 5,000 | 2,350 |
| 5.25%, 1/30/30(b) | | 140,000 | 65,800 |
| Bristol-Myers Squibb Co., | | | |
| 3.20%, 6/15/26 | | 46,000 | 44,806 |
| 3.40%, 7/26/29 | | 11,000 | 10,524 |
| 4.63%, 5/15/44 | | 25,000 | 24,216 |
| 4.55%, 2/20/48 | | 40,000 | 38,057 |
| 3.70%, 3/15/52 | | 73,000 | 60,560 |
| 3.90%, 3/15/62 | | 23,000 | 19,074 |
| Eli Lilly & Co., | | | |
| 4.87%, 2/27/53 | | 95,000 | 99,273 |
| 4.95%, 2/27/63 | | 36,000 | 37,580 |
|
| Endo Dac/Endo Finance LLC/Endo Finco, Inc., 6.00%, 6/30/28(b)(h) | | 100,000 | 5,625 |
| Endo Luxembourg Finance Co. I S.a.r.l./Endo U.S., Inc., 6.13%, 4/01/29(b)(h) | | 10,000 | 7,007 |
| Johnson & Johnson, | | | |
| 3.63%, 3/03/37 | | 61,000 | 57,085 |
| 5.85%, 7/15/38 | | 43,000 | 50,028 |
| 2.10%, 9/01/40 | | 40,000 | 29,081 |
|
| Mylan, Inc., 5.20%, 4/15/48 | | 72,000 | 55,383 |
| Organon & Co./Organon Foreign Debt Co-Issuer B.V., 5.12%, 4/30/31(b) | | 240,000 | 213,850 |
| Prestige Brands, Inc., 3.75%, 4/01/31(b) | | 45,000 | 38,140 |
| Royalty Pharma PLC, | | | |
| 1.75%, 9/02/27 | | 101,000 | 88,548 |
| 3.55%, 9/02/50 | | 26,000 | 17,866 |
|
| Utah Acquisition Sub, Inc., 5.25%, 6/15/46 | | 32,000 | 24,800 |
| Viatris, Inc., | | | |
| 3.85%, 6/22/40 | | 43,000 | 29,695 |
| 4.00%, 6/22/50 | | 7,000 | 4,541 |
| | | | 2,483,972 |
| | | Par (a) | Value |
| Cable & Satellite – 2.6% |
| Block Communications, Inc., 4.88%, 3/01/28(b) | | $ 25,000 | $ 21,522 |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | |
| 5.50%, 5/01/26(b) | | 25,000 | 24,542 |
| 5.12%, 5/01/27(b) | | 460,000 | 434,042 |
| 5.00%, 2/01/28(b) | | 515,000 | 476,165 |
| 4.75%, 3/01/30(b) | | 620,000 | 533,446 |
| 4.25%, 2/01/31(b) | | 102,000 | 83,539 |
| 4.50%, 5/01/32 | | 44,000 | 35,225 |
| 4.25%, 1/15/34(b) | | 90,000 | 68,557 |
| Charter Communications Operating LLC/Charter Communications Operating Capital, | | | |
| 4.91%, 7/23/25 | | 10,000 | 9,906 |
| 2.80%, 4/01/31 | | 29,000 | 23,401 |
| 2.30%, 2/01/32 | | 27,000 | 20,558 |
| 6.48%, 10/23/45 | | 9,000 | 8,339 |
| 4.80%, 3/01/50 | | 79,000 | 59,826 |
| 3.95%, 6/30/62 | | 67,000 | 41,240 |
| Comcast Corp., | | | |
| 5.35%, 11/15/27 | | 10,000 | 10,411 |
| 1.95%, 1/15/31 | | 36,000 | 30,131 |
| 5.65%, 6/15/35 | | 72,000 | 77,807 |
| 6.50%, 11/15/35 | | 11,000 | 12,683 |
| 3.20%, 7/15/36 | | 23,000 | 19,544 |
| 3.90%, 3/01/38 | | 48,000 | 43,227 |
| 3.25%, 11/01/39 | | 88,000 | 71,409 |
| 2.89%, 11/01/51 | | 47,000 | 32,119 |
| 2.94%, 11/01/56 | | 140,000 | 93,073 |
| CSC Holdings LLC, | | | |
| 5.75%, 1/15/30(b) | | 900,000 | 459,310 |
| 4.63%, 12/01/30(b) | | 1,000,000 | 488,127 |
|
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 8/15/27(b) | | 340,000 | 298,374 |
| DISH DBS Corp., | | | |
| 7.75%, 7/01/26 | | 315,000 | 181,972 |
| 5.25%, 12/01/26(b) | | 285,000 | 217,692 |
| 7.38%, 7/01/28 | | 80,000 | 40,082 |
| 5.75%, 12/01/28(b) | | 185,000 | 131,518 |
| 5.12%, 6/01/29 | | 585,000 | 269,793 |
|
| Radiate Holdco LLC/Radiate Finance, Inc., 6.50%, 9/15/28(b) | | 130,000 | 60,658 |
| Sirius XM Radio, Inc., | | | |
| 5.00%, 8/01/27(b) | | 175,000 | 160,966 |
| 3.88%, 9/01/31(b) | | 15,000 | 11,335 |
| | | | 4,550,539 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Chemicals – 0.4% |
| Ashland LLC, 3.38%, 9/01/31(b) | | $ 30,000 | $ 24,820 |
| ASP Unifrax Holdings, Inc., 5.25%, 9/30/28(b) | | 135,000 | 111,243 |
| Chemours (The) Co., | | | |
| 5.38%, 5/15/27 | | 70,000 | 65,055 |
| 4.63%, 11/15/29(b) | | 45,000 | 37,062 |
| Dow Chemical (The) Co., | | | |
| 6.30%, 3/15/33 | | 20,000 | 21,997 |
| 4.38%, 11/15/42 | | 71,000 | 62,449 |
|
| International Flavors & Fragrances, Inc., 1.83%, 10/15/27(b) | | 75,000 | 63,891 |
| LYB International Finance III LLC, | | | |
| 4.20%, 5/01/50 | | 23,000 | 17,834 |
| 3.63%, 4/01/51 | | 16,000 | 11,348 |
| Mosaic (The) Co., | | | |
| 5.45%, 11/15/33 | | 81,000 | 81,643 |
| 4.87%, 11/15/41 | | 19,000 | 16,963 |
| 5.62%, 11/15/43 | | 15,000 | 14,543 |
|
| RPM International, Inc., 2.95%, 1/15/32 | | 86,000 | 69,751 |
| Westlake Corp., 3.13%, 8/15/51 | | 17,000 | 10,879 |
| WR Grace Holdings LLC, 5.62%, 8/15/29(b) | | 15,000 | 12,939 |
| | | | 622,417 |
| Commercial Support Services – 0.4% |
| ADT Security (The) Corp., 4.13%, 8/01/29(b) | | 265,000 | 230,218 |
| Aramark Services, Inc., 5.00%, 2/01/28(b) | | 25,000 | 23,810 |
| Clean Harbors, Inc., 6.37%, 2/01/31(b) | | 50,000 | 51,012 |
| Covanta Holding Corp., 4.88%, 12/01/29(b) | | 210,000 | 186,900 |
| Prime Security Services Borrower LLC/Prime Finance, Inc., 3.38%, 8/31/27(b) | | 30,000 | 26,810 |
| Republic Services, Inc., | | | |
| 2.90%, 7/01/26 | | 35,000 | 33,427 |
| 5.00%, 4/01/34 | | 88,000 | 90,024 |
|
| Waste Connections, Inc., 2.60%, 2/01/30 | | 16,000 | 14,127 |
| Waste Management, Inc., | | | |
| 4.63%, 2/15/30 | | 34,000 | 34,426 |
| 4.63%, 2/15/33 | | 23,000 | 23,287 |
| | | | 714,041 |
| | | Par (a) | Value |
| Construction Materials – 0.1% |
| Advanced Drainage Systems, Inc., 6.38%, 6/15/30(b) | | $ 85,000 | $ 84,092 |
| Standard Industries, Inc., 4.38%, 7/15/30(b) | | 80,000 | 69,052 |
| Summit Materials LLC/Summit Materials Finance Corp., 5.25%, 1/15/29(b) | | 50,000 | 47,510 |
| | | | 200,654 |
| Containers & Packaging – 0.1% |
| Graham Packaging Co., Inc., 7.12%, 8/15/28(b) | | 75,000 | 65,267 |
| LABL, Inc., 5.88%, 11/01/28(b) | | 10,000 | 9,225 |
| Sealed Air Corp./Sealed Air Corp. U.S., 6.13%, 2/01/28(b) | | 60,000 | 60,882 |
| WRKCo, Inc., 4.65%, 3/15/26 | | 31,000 | 30,627 |
| | | | 166,001 |
| Diversified Industrials – 0.0%(d) |
| Honeywell International, Inc., 5.00%, 2/15/33 | | 25,000 | 26,370 |
| Parker-Hannifin Corp., 4.25%, 9/15/27 | | 54,000 | 53,336 |
| | | | 79,706 |
| E-Commerce Discretionary – 0.2% |
| Amazon.com, Inc., | | | |
| 4.55%, 12/01/27 | | 53,000 | 53,965 |
| 2.10%, 5/12/31 | | 17,000 | 14,598 |
| 3.60%, 4/13/32 | | 53,000 | 50,393 |
| 4.70%, 12/01/32 | | 31,000 | 31,881 |
| 3.10%, 5/12/51 | | 110,000 | 83,145 |
| 3.95%, 4/13/52 | | 27,000 | 23,774 |
| 3.25%, 5/12/61 | | 73,000 | 53,864 |
| 4.10%, 4/13/62 | | 99,000 | 86,081 |
| | | | 397,701 |
| Electric Utilities – 3.3% |
| Alabama Power Co., | | | |
| 3.85%, 12/01/42 | | 4,000 | 3,386 |
| 3.75%, 3/01/45 | | 29,000 | 23,547 |
| 4.30%, 7/15/48 | | 38,000 | 33,244 |
| 3.45%, 10/01/49 | | 26,000 | 19,597 |
|
| Alliant Energy Finance LLC, 3.60%, 3/01/32(b) | | 28,000 | 24,730 |
| American Electric Power Co., Inc., | | | |
| 5.62%, 3/01/33 | | 41,000 | 42,951 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Electric Utilities (Continued) |
| American Electric Power Co., Inc., | | | |
| (5Y US Treasury CMT + 2.68%), 3.88%, 2/15/62(g) | | $ 36,000 | $ 28,812 |
| Appalachian Power Co., | | | |
| 3.40%, 6/01/25 | | 25,000 | 24,255 |
| 4.50%, 3/01/49 | | 33,000 | 28,604 |
|
| Avangrid, Inc., 3.15%, 12/01/24 | | 47,000 | 45,430 |
| Calpine Corp., | | | |
| 5.25%, 6/01/26(b) | | 40,000 | 38,899 |
| 4.50%, 2/15/28(b) | | 355,000 | 330,614 |
|
| CenterPoint Energy Houston Electric LLC, 4.95%, 4/01/33 | | 22,000 | 22,560 |
| Clearway Energy Operating LLC, 3.75%, 2/15/31(b) | | 45,000 | 38,500 |
| CMS Energy Corp., (5Y US Treasury CMT + 4.12%), 4.75%, 6/01/50(g) | | 207,000 | 181,125 |
| Connecticut Light and Power (The) Co., 5.25%, 1/15/53 | | 90,000 | 94,330 |
| Dominion Energy, Inc., | | | |
| 3.07%, 8/15/24 | | 38,000 | 36,949 |
| 5.37%, 11/15/32 | | 53,000 | 54,384 |
| DTE Electric Co., | | | |
| 5.20%, 4/01/33 | | 28,000 | 29,233 |
| 5.40%, 4/01/53 | | 19,000 | 20,117 |
| Duke Energy Carolinas LLC, | | | |
| 6.45%, 10/15/32 | | 34,000 | 37,941 |
| 4.25%, 12/15/41 | | 18,000 | 16,217 |
| 4.00%, 9/30/42 | | 32,000 | 27,658 |
| 3.75%, 6/01/45 | | 6,000 | 4,945 |
| 5.35%, 1/15/53 | | 47,000 | 49,316 |
|
| Duke Energy Corp., 3.15%, 8/15/27 | | 32,000 | 30,285 |
| Duke Energy Florida LLC, | | | |
| 2.40%, 12/15/31 | | 35,000 | 29,617 |
| 5.95%, 11/15/52 | | 29,000 | 33,016 |
|
| Duke Energy Indiana LLC, 3.25%, 10/01/49 | | 29,000 | 21,401 |
| Duke Energy Ohio, Inc., | | | |
| 5.25%, 4/01/33 | | 22,000 | 22,841 |
| 3.70%, 6/15/46 | | 44,000 | 34,381 |
| 4.30%, 2/01/49 | | 49,000 | 42,282 |
| 5.65%, 4/01/53 | | 15,000 | 15,926 |
| Duke Energy Progress LLC, | | | |
| 5.25%, 3/15/33 | | 21,000 | 21,981 |
| 4.10%, 5/15/42 | | 62,000 | 54,420 |
| 4.10%, 3/15/43 | | 42,000 | 36,565 |
| | | Par (a) | Value |
| Electric Utilities (Continued) |
| Duke Energy Progress LLC, | | | |
| 4.20%, 8/15/45 | | $ 61,000 | $ 53,100 |
| 4.00%, 4/01/52 | | 21,000 | 17,739 |
| 5.35%, 3/15/53 | | 52,000 | 54,098 |
| Entergy Arkansas LLC, | | | |
| 4.00%, 6/01/28 | | 10,000 | 9,757 |
| 5.15%, 1/15/33 | | 23,000 | 23,823 |
| 4.20%, 4/01/49 | | 23,000 | 19,889 |
| 2.65%, 6/15/51 | | 14,000 | 9,133 |
| 3.35%, 6/15/52 | | 34,000 | 25,308 |
| Entergy Louisiana LLC, | | | |
| 3.25%, 4/01/28 | | 5,000 | 4,718 |
| 4.00%, 3/15/33 | | 27,000 | 25,573 |
| Entergy Mississippi LLC, | | | |
| 3.85%, 6/01/49 | | 34,000 | 27,216 |
| 3.50%, 6/01/51 | | 15,000 | 11,296 |
|
| Evergy Kansas Central, Inc., 5.70%, 3/15/53 | | 66,000 | 69,814 |
| Eversource Energy, | | | |
| 1.40%, 8/15/26 | | 119,000 | 107,109 |
| 2.90%, 3/01/27 | | 68,000 | 64,031 |
| 5.45%, 3/01/28 | | 51,000 | 52,891 |
| Exelon Corp., | | | |
| 5.15%, 3/15/28 | | 82,000 | 83,819 |
| 4.95%, 6/15/35 | | 138,000 | 137,997 |
| 5.60%, 3/15/53 | | 37,000 | 38,088 |
| Florida Power & Light Co., | | | |
| 5.40%, 9/01/35 | | 31,000 | 31,847 |
| 5.65%, 2/01/37 | | 20,000 | 21,600 |
| 2.88%, 12/04/51 | | 4,000 | 2,853 |
|
| Georgia Power Co., 4.70%, 5/15/32 | | 32,000 | 31,924 |
| Idaho Power Co., 5.50%, 3/15/53 | | 47,000 | 49,899 |
| Indiana Michigan Power Co., | | | |
| 3.85%, 5/15/28 | | 22,000 | 21,339 |
| 6.05%, 3/15/37 | | 12,000 | 13,061 |
| 5.62%, 4/01/53 | | 73,000 | 77,660 |
|
| IPALCO Enterprises, Inc., 4.25%, 5/01/30 | | 66,000 | 61,072 |
| Kentucky Utilities Co., 5.45%, 4/15/33 | | 25,000 | 26,106 |
| Louisville Gas and Electric Co., 5.45%, 4/15/33 | | 25,000 | 26,079 |
| Metropolitan Edison Co., | | | |
| 4.00%, 4/15/25(b) | | 71,000 | 68,726 |
| 5.20%, 4/01/28(b) | | 43,000 | 43,846 |
| MidAmerican Energy Co., | | | |
| 4.80%, 9/15/43 | | 15,000 | 14,580 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Electric Utilities (Continued) |
| MidAmerican Energy Co., | | | |
| 4.40%, 10/15/44 | | $ 95,000 | $88,146 |
| 4.25%, 5/01/46 | | 59,000 | 52,445 |
| Mississippi Power Co., | | | |
| 4.75%, 10/15/41 | | 11,000 | 9,632 |
| 4.25%, 3/15/42 | | 26,000 | 22,414 |
|
| Monongahela Power Co., 3.55%, 5/15/27(b) | | 47,000 | 44,806 |
| National Rural Utilities Cooperative Finance Corp., | | | |
| 3.40%, 2/07/28 | | 22,000 | 21,042 |
| 2.75%, 4/15/32 | | 32,000 | 27,479 |
| 4.02%, 11/01/32 | | 41,000 | 38,461 |
| 4.15%, 12/15/32 | | 50,000 | 47,889 |
| 5.80%, 1/15/33 | | 29,000 | 31,237 |
| (3M USD LIBOR + 3.63%), 5.25%, 4/20/46(g) | | 97,000 | 92,903 |
| NextEra Energy Capital Holdings, Inc., | | | |
| 4.26%, 9/01/24 | | 50,000 | 49,522 |
| 6.05%, 3/01/25 | | 76,000 | 77,264 |
| 4.45%, 6/20/25 | | 51,000 | 50,730 |
| 1.88%, 1/15/27 | | 70,000 | 63,581 |
| 5.05%, 2/28/33 | | 69,000 | 69,747 |
| 5.25%, 2/28/53 | | 60,000 | 59,376 |
| NRG Energy, Inc., | | | |
| 5.25%, 6/15/29(b) | | 10,000 | 9,224 |
| 3.88%, 2/15/32(b) | | 100,000 | 80,745 |
|
| Oklahoma Gas and Electric Co., 5.40%, 1/15/33 | | 24,000 | 25,062 |
| Pacific Gas and Electric Co., | | | |
| 3.25%, 6/01/31 | | 31,000 | 26,220 |
| 4.45%, 4/15/42 | | 52,000 | 40,707 |
| 4.30%, 3/15/45 | | 46,000 | 34,408 |
| 6.75%, 1/15/53 | | 32,000 | 32,758 |
| PacifiCorp., | | | |
| 4.10%, 2/01/42 | | 112,000 | 98,905 |
| 5.35%, 12/01/53 | | 70,000 | 72,878 |
|
| Pattern Energy Operations L.P./Pattern Energy Operations, Inc., 4.50%, 8/15/28(b) | | 55,000 | 51,168 |
| PG&E Corp., | | | |
| 5.00%, 7/01/28 | | 105,000 | 98,802 |
| 5.25%, 7/01/30 | | 15,000 | 13,825 |
|
| PPL Electric Utilities Corp., 5.25%, 5/15/53 | | 56,000 | 58,328 |
| Public Service Co. of Colorado, 5.25%, 4/01/53 | | 38,000 | 39,085 |
| | | Par (a) | Value |
| Electric Utilities (Continued) |
|
| Public Service Co. of New Hampshire, 5.15%, 1/15/53 | | $ 30,000 | $ 31,114 |
| Public Service Co. of Oklahoma, | | | |
| 2.20%, 8/15/31 | | 59,000 | 48,824 |
| 3.15%, 8/15/51 | | 57,000 | 39,035 |
| Public Service Electric and Gas Co., | | | |
| 3.00%, 5/15/27 | | 25,000 | 23,841 |
| 5.12%, 3/15/53 | | 16,000 | 16,557 |
| Public Service Enterprise Group, Inc., | | | |
| 5.85%, 11/15/27 | | 54,000 | 56,591 |
| 2.45%, 11/15/31 | | 90,000 | 75,006 |
|
| Sempra Energy, (5Y US Treasury CMT + 2.87%), 4.13%, 4/01/52(g) | | 182,000 | 147,391 |
| Southern (The) Co., (5Y US Treasury CMT + 3.73%), 4.00%, 1/15/51(g) | | 214,000 | 201,074 |
| Southern California Edison Co., | | | |
| 4.05%, 3/15/42 | | 60,000 | 50,300 |
| 4.00%, 4/01/47 | | 33,000 | 27,274 |
| 3.65%, 2/01/50 | | 15,000 | 11,670 |
|
| Southwestern Electric Power Co., 5.30%, 4/01/33 | | 34,000 | 34,463 |
| Talen Energy Supply LLC, 6/01/30(b)(i) | | 45,000 | 45,000 |
| Tucson Electric Power Co., 4.00%, 6/15/50 | | 27,000 | 21,915 |
| Union Electric Co., | | | |
| 2.15%, 3/15/32 | | 24,000 | 19,769 |
| 5.45%, 3/15/53 | | 19,000 | 19,997 |
| Virginia Electric and Power Co., | | | |
| 3.80%, 4/01/28 | | 104,000 | 101,283 |
| 5.45%, 4/01/53 | | 47,000 | 48,144 |
| Vistra Operations Co. LLC, | | | |
| 5.12%, 5/13/25(b) | | 80,000 | 78,226 |
| 5.50%, 9/01/26(b) | | 210,000 | 205,767 |
| WEC Energy Group, Inc., | | | |
| 5.00%, 9/27/25 | | 15,000 | 15,080 |
| 5.15%, 10/01/27 | | 20,000 | 20,434 |
|
| Wisconsin Power and Light Co., 3.00%, 7/01/29 | | 33,000 | 30,237 |
| | | | 5,823,831 |
| Electrical Equipment – 0.3% |
| Sensata Technologies, Inc., | | | |
| 4.38%, 2/15/30(b) | | 20,000 | 18,218 |
| 3.75%, 2/15/31(b) | | 75,000 | 65,156 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Electrical Equipment (Continued) |
|
| Trane Technologies Financing Ltd., 5.25%, 3/03/33 | | $ 60,000 | $ 62,331 |
| Trane Technologies Global Holding Co. Ltd., 3.75%, 8/21/28 | | 20,000 | 19,450 |
| Trane Technologies Luxembourg Finance S.A., | | | |
| 3.55%, 11/01/24 | | 257,000 | 250,618 |
| 3.50%, 3/21/26 | | 25,000 | 24,182 |
| 3.80%, 3/21/29 | | 20,000 | 19,147 |
| | | | 459,102 |
| Engineering & Construction – 0.0%(d) |
| Installed Building Products, Inc., 5.75%, 2/01/28(b) | | 30,000 | 28,319 |
| Quanta Services, Inc., 2.35%, 1/15/32 | | 41,000 | 33,025 |
| | | | 61,344 |
| Entertainment Content – 0.6% |
| Diamond Sports Group LLC/Diamond Sports Finance Co., | | | |
| 5.38%, 8/15/26(b)(h) | | 215,000 | 14,513 |
| 6.63%, 8/15/27(b)(h) | | 115,000 | 3,450 |
| Discovery Communications LLC, | | | |
| 4.87%, 4/01/43 | | 62,000 | 49,989 |
| 5.30%, 5/15/49 | | 23,000 | 18,805 |
| Paramount Global, | | | |
| 4.95%, 1/15/31 | | 70,000 | 65,029 |
| 4.20%, 5/19/32 | | 9,000 | 7,745 |
| 5.50%, 5/15/33 | | 18,000 | 16,976 |
| 4.38%, 3/15/43 | | 107,000 | 76,392 |
| 5.85%, 9/01/43 | | 49,000 | 41,969 |
| 5.25%, 4/01/44 | | 17,000 | 13,440 |
| 4.95%, 5/19/50 | | 69,000 | 52,193 |
| (5Y US Treasury CMT + 4.00%), 6.37%, 3/30/62(g) | | 42,000 | 36,026 |
|
| Playtika Holding Corp., 4.25%, 3/15/29(b) | | 60,000 | 51,000 |
| Time Warner Cable Enterprises LLC, 8.38%, 7/15/33 | | 37,000 | 41,811 |
| TWDC Enterprises 18 Corp., 4.13%, 12/01/41 | | 12,000 | 10,811 |
| Walt Disney (The) Co., | | | |
| 8.50%, 2/23/25 | | 37,000 | 39,581 |
| 2.00%, 9/01/29 | | 20,000 | 17,490 |
| 6.55%, 3/15/33 | | 41,000 | 47,158 |
| 4.75%, 9/15/44 | | 35,000 | 34,345 |
| | | Par (a) | Value |
| Entertainment Content (Continued) |
| Warnermedia Holdings, Inc., | | | |
| 3.76%, 3/15/27(b) | | $192,000 | $ 180,942 |
| 4.28%, 3/15/32(b) | | 45,000 | 39,967 |
| 5.05%, 3/15/42(b) | | 41,000 | 33,911 |
| 5.14%, 3/15/52(b) | | 108,000 | 86,298 |
| 5.39%, 3/15/62(b) | | 24,000 | 19,270 |
| | | | 999,111 |
| Food – 0.6% |
| Cargill, Inc., | | | |
| 2.13%, 4/23/30(b) | | 34,000 | 29,149 |
| 1.70%, 2/02/31(b) | | 39,000 | 31,721 |
| 2.13%, 11/10/31(b) | | 18,000 | 14,946 |
| 3.13%, 5/25/51(b) | | 22,000 | 16,157 |
|
| Hershey (The) Co., 3.13%, 11/15/49 | | 65,000 | 49,350 |
| HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 4.87%, 6/01/29(b) | | 70,000 | 53,586 |
| Hormel Foods Corp., 3.05%, 6/03/51 | | 34,000 | 24,865 |
| J M Smucker (The) Co., 2.75%, 9/15/41 | | 49,000 | 35,441 |
| Kraft Heinz Foods Co., | | | |
| 5.00%, 6/04/42 | | 29,000 | 27,803 |
| 5.20%, 7/15/45 | | 29,000 | 28,114 |
| Mars, Inc., | | | |
| 4.75%, 4/20/33(b) | | 16,000 | 16,178 |
| 2.38%, 7/16/40(b) | | 99,000 | 70,449 |
|
| Mondelez International, Inc., 2.63%, 3/17/27 | | 30,000 | 28,100 |
| Nestle Holdings, Inc., 4.70%, 1/15/53(b) | | 150,000 | 153,424 |
| Pilgrim's Pride Corp., 5.87%, 9/30/27(b) | | 300,000 | 298,430 |
| Post Holdings, Inc., 4.62%, 4/15/30(b) | | 165,000 | 149,031 |
| Simmons Foods, Inc., 4.63%, 3/01/29(b) | | 65,000 | 53,706 |
| | | | 1,080,450 |
| Forestry, Paper & Wood Products – 0.0%(d) |
| Georgia-Pacific LLC, 0.63%, 5/15/24(b) | | 55,000 | 52,488 |
| Gas & Water Utilities – 0.2% |
| Ferrellgas L.P./Ferrellgas Finance Corp., 5.38%, 4/01/26(b) | | 65,000 | 60,602 |
| ONE Gas, Inc., 4.25%, 9/01/32 | | 33,000 | 32,392 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Gas & Water Utilities (Continued) |
| Piedmont Natural Gas Co., Inc., 3.60%, 9/01/25 | | $ 28,000 | $ 26,845 |
| South Jersey Industries, Inc., 5.02%, 4/15/31 | | 161,000 | 136,994 |
| Suburban Propane Partners L.P./Suburban Energy Finance Corp., 5.00%, 6/01/31(b) | | 95,000 | 83,187 |
| | | | 340,020 |
| Health Care Facilities & Services – 1.8% |
| AdaptHealth LLC, 5.12%, 3/01/30(b) | | 95,000 | 78,613 |
| AHP Health Partners, Inc., 5.75%, 7/15/29(b) | | 65,000 | 55,250 |
| Centene Corp., | | | |
| 2.45%, 7/15/28 | | 225,000 | 195,531 |
| 3.00%, 10/15/30 | | 194,000 | 165,335 |
| 2.63%, 8/01/31 | | 40,000 | 32,754 |
|
| CHS/Community Health Systems, Inc., 5.25%, 5/15/30(b) | | 270,000 | 225,035 |
| Cigna Group (The), | | | |
| 4.13%, 11/15/25 | | 23,000 | 22,706 |
| 5.40%, 3/15/33 | | 30,000 | 31,198 |
| 4.80%, 8/15/38 | | 130,000 | 126,138 |
| 3.20%, 3/15/40 | | 43,000 | 33,866 |
| CVS Health Corp., | | | |
| 4.30%, 3/25/28 | | 85,000 | 83,959 |
| 4.78%, 3/25/38 | | 204,000 | 194,799 |
| 2.70%, 8/21/40 | | 34,000 | 24,354 |
| 5.12%, 7/20/45 | | 13,000 | 12,299 |
| 5.05%, 3/25/48 | | 10,000 | 9,335 |
|
| DaVita, Inc., 3.75%, 2/15/31(b) | | 215,000 | 173,134 |
| Elevance Health, Inc., | | | |
| 2.88%, 9/15/29 | | 54,000 | 49,294 |
| 2.55%, 3/15/31 | | 20,000 | 17,249 |
| 5.50%, 10/15/32 | | 58,000 | 61,260 |
| 4.62%, 5/15/42 | | 45,000 | 41,865 |
| 5.10%, 1/15/44 | | 31,000 | 30,134 |
|
| Encompass Health Corp., 4.75%, 2/01/30 | | 105,000 | 96,829 |
| HCA, Inc., | | | |
| 5.87%, 2/01/29 | | 15,000 | 15,464 |
| 3.38%, 3/15/29(b) | | 35,000 | 31,955 |
| 4.13%, 6/15/29 | | 75,000 | 71,107 |
| 3.50%, 9/01/30 | | 31,000 | 27,903 |
| 2.38%, 7/15/31 | | 32,000 | 26,132 |
| 5.25%, 6/15/49 | | 77,000 | 69,731 |
| 4.62%, 3/15/52(b) | | 16,000 | 13,271 |
| | | Par (a) | Value |
| Health Care Facilities & Services (Continued) |
|
| LifePoint Health, Inc., 5.37%, 1/15/29(b) | | $205,000 | $ 128,505 |
| Molina Healthcare, Inc., 3.88%, 5/15/32(b) | | 55,000 | 47,134 |
| New York State Electric & Gas Corp., 3.25%, 12/01/26(b) | | 95,000 | 90,406 |
| PECO Energy Co., 2.85%, 9/15/51 | | 36,000 | 24,733 |
| RP Escrow Issuer LLC, 5.25%, 12/15/25(b) | | 50,000 | 35,070 |
| Tenet Healthcare Corp., | | | |
| 6.25%, 2/01/27 | | 125,000 | 124,380 |
| 5.12%, 11/01/27 | | 60,000 | 58,217 |
| 4.63%, 6/15/28 | | 70,000 | 66,334 |
| UnitedHealth Group, Inc., | | | |
| 1.15%, 5/15/26 | | 38,000 | 34,812 |
| 5.30%, 2/15/30 | | 116,000 | 122,447 |
| 4.20%, 5/15/32 | | 20,000 | 19,610 |
| 5.35%, 2/15/33 | | 44,000 | 46,923 |
| 4.50%, 4/15/33 | | 11,000 | 11,012 |
| 3.50%, 8/15/39 | | 32,000 | 27,432 |
| 2.75%, 5/15/40 | | 78,000 | 59,885 |
| 3.05%, 5/15/41 | | 35,000 | 27,804 |
| 3.75%, 10/15/47 | | 9,000 | 7,528 |
| 4.45%, 12/15/48 | | 9,000 | 8,352 |
| 3.25%, 5/15/51 | | 42,000 | 31,896 |
| 4.75%, 5/15/52 | | 16,000 | 15,552 |
| 5.05%, 4/15/53 | | 53,000 | 53,826 |
| 5.20%, 4/15/63 | | 83,000 | 84,638 |
|
| US Acute Care Solutions LLC, 6.37%, 3/01/26(b) | | 50,000 | 44,625 |
| | | | 3,187,621 |
| Home & Office Products – 0.1% |
| Newell Brands, Inc., 4.70%, 4/01/26 | | 155,000 | 148,025 |
| Tempur Sealy International, Inc., 3.88%, 10/15/31(b) | | 70,000 | 58,034 |
| | | | 206,059 |
| Home Construction – 0.2% |
| Cornerstone Building Brands, Inc., 6.13%, 1/15/29(b) | | 120,000 | 90,300 |
| CP Atlas Buyer, Inc., 7.00%, 12/01/28(b) | | 65,000 | 48,847 |
| JELD-WEN, Inc., 4.63%, 12/15/25(b) | | 55,000 | 53,075 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Home Construction (Continued) |
| MIWD Holdco II LLC/MIWD Finance Corp., 5.50%, 2/01/30(b) | | $ 90,000 | $ 75,600 |
| Victors Merger Corp., 6.37%, 5/15/29(b) | | 125,000 | 75,981 |
| | | | 343,803 |
| Household Products – 0.3% |
| Coty, Inc., 5.00%, 4/15/26(b) | | 70,000 | 68,347 |
| Coty, Inc./HFC Prestige Products, Inc./HFC Prestige International U.S. LLC, 4.75%, 1/15/29(b) | | 70,000 | 65,713 |
| Energizer Holdings, Inc., 4.38%, 3/31/29(b) | | 180,000 | 157,396 |
| Kenvue, Inc., | | | |
| 5.05%, 3/22/28(b) | | 35,000 | 36,249 |
| 4.90%, 3/22/33(b) | | 85,000 | 88,019 |
| 5.10%, 3/22/43(b) | | 72,000 | 74,615 |
| 5.05%, 3/22/53(b) | | 60,000 | 62,287 |
| 5.20%, 3/22/63(b) | | 61,000 | 63,432 |
| | | | 616,058 |
| Industrial Intermediate Products – 0.0%(d) |
| Chart Industries, Inc., 7.50%, 1/01/30(b) | | 65,000 | 66,950 |
| Industrial Support Services – 0.1% |
| Resideo Funding, Inc., 4.00%, 9/01/29(b) | | 140,000 | 118,576 |
| WW Grainger, Inc., 3.75%, 5/15/46 | | 76,000 | 62,590 |
| | | | 181,166 |
| Institutional Financial Services – 1.7% |
| Bank of New York Mellon (The) Corp., | | | |
| (SOFR + 1.03%), 4.95%, 4/26/27(g) | | 95,000 | 95,686 |
| (SOFR + 1.76%), 4.60%, 7/26/30(g) | | 27,000 | 26,738 |
| (SOFR + 1.61%), 4.97%, 4/26/34(g) | | 118,000 | 118,918 |
| Coinbase Global, Inc., | | | |
| 3.37%, 10/01/28(b) | | 45,000 | 27,184 |
| 3.63%, 10/01/31(b) | | 50,000 | 27,941 |
|
| Goldman Sachs Capital I, 6.34%, 2/15/34 | | 82,000 | 85,155 |
| Goldman Sachs Group (The), Inc., | | | |
| 3.50%, 4/01/25 | | 38,000 | 36,917 |
| (3M USD LIBOR + 1.75%), 7.02%, 10/28/27(c) | | 43,000 | 43,752 |
| | | Par (a) | Value |
| Institutional Financial Services (Continued) |
| Goldman Sachs Group (The), Inc., | | | |
| (SOFR + 1.25%), 2.38%, 7/21/32(g) | | $ 8,000 | $ 6,535 |
| 6.45%, 5/01/36 | | 33,000 | 35,529 |
| 6.25%, 2/01/41 | | 8,000 | 8,831 |
| Intercontinental Exchange, Inc., | | | |
| 4.00%, 9/15/27 | | 167,000 | 165,349 |
| 4.35%, 6/15/29 | | 50,000 | 49,539 |
| 2.10%, 6/15/30 | | 38,000 | 32,238 |
| 4.60%, 3/15/33 | | 125,000 | 124,874 |
| 4.25%, 9/21/48 | | 31,000 | 27,530 |
| 4.95%, 6/15/52 | | 20,000 | 19,940 |
| Morgan Stanley, | | | |
| (SOFR + 1.15%), 2.72%, 7/22/25(g) | | 58,000 | 55,949 |
| (SOFR + 0.88%), 1.59%, 5/04/27(g) | | 74,000 | 66,556 |
| (SOFR + 0.86%), 1.51%, 7/20/27(g) | | 300,000 | 266,559 |
| (SOFR + 1.00%), 2.47%, 1/21/28(g) | | 29,000 | 26,481 |
| (3M USD LIBOR + 1.34%), 3.59%, 7/22/28(g) | | 22,000 | 20,850 |
| (SOFR + 2.24%), 6.30%, 10/18/28(g) | | 17,000 | 17,858 |
| (SOFR + 1.59%), 5.16%, 4/20/29(g) | | 72,000 | 72,519 |
| (SOFR + 1.02%), 1.93%, 4/28/32(g) | | 77,000 | 61,253 |
| (SOFR + 1.20%), 2.51%, 10/20/32(g) | | 18,000 | 14,819 |
| (SOFR + 2.56%), 6.34%, 10/18/33(g) | | 347,000 | 377,278 |
| (SOFR + 1.87%), 5.25%, 4/21/34(g) | | 299,000 | 302,332 |
| (SOFR + 2.62%), 5.30%, 4/20/37(g) | | 265,000 | 252,449 |
| (5Y US Treasury CMT + 2.43%), 5.95%, 1/19/38(g) | | 198,000 | 199,051 |
|
| Northern Trust Corp., 6.12%, 11/02/32 | | 190,000 | 203,197 |
| State Street Corp., (SOFR + 1.72%), 5.82%, 11/04/28(g) | | 44,000 | 45,971 |
| | | | 2,915,778 |
| Insurance – 1.0% |
| Acrisure LLC/Acrisure Finance, Inc., 4.25%, 2/15/29(b) | | 45,000 | 37,668 |
| Alleghany Corp., | | | |
| 3.63%, 5/15/30 | | 107,000 | 101,980 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Insurance (Continued) |
| Alleghany Corp., | | | |
| 4.90%, 9/15/44 | | $ 5,000 | $ 4,785 |
| 3.25%, 8/15/51 | | 73,000 | 52,808 |
|
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 4.25%, 10/15/27(b) | | 25,000 | 22,889 |
| Allstate (The) Corp., | | | |
| 1.45%, 12/15/30 | | 26,000 | 20,602 |
| 5.25%, 3/30/33 | | 65,000 | 66,225 |
|
| American International Group, Inc., 3.90%, 4/01/26 | | 40,000 | 39,065 |
| AmWINS Group, Inc., 4.88%, 6/30/29(b) | | 125,000 | 113,427 |
| Arthur J Gallagher & Co., 5.75%, 3/02/53 | | 62,000 | 63,635 |
| Assurant, Inc., 3.70%, 2/22/30 | | 56,000 | 49,363 |
| AssuredPartners, Inc., 5.62%, 1/15/29(b) | | 100,000 | 86,574 |
| Berkshire Hathaway Finance Corp., 4.40%, 5/15/42 | | 18,000 | 17,455 |
| BroadStreet Partners, Inc., 5.87%, 4/15/29(b) | | 95,000 | 82,415 |
| Chubb INA Holdings, Inc., 1.38%, 9/15/30 | | 43,000 | 34,909 |
| Corebridge Financial, Inc., | | | |
| 3.85%, 4/05/29(b) | | 39,000 | 35,559 |
| 3.90%, 4/05/32(b) | | 76,000 | 66,869 |
| (5Y US Treasury CMT + 3.85%), 6.87%, 12/15/52(b)(g) | | 127,000 | 114,995 |
|
| Enstar Finance LLC, (5Y US Treasury CMT + 4.01%), 5.50%, 1/15/42(g) | | 89,000 | 64,071 |
| Hartford Financial Services Group (The), Inc., | | | |
| 5.95%, 10/15/36 | | 44,000 | 46,266 |
| (3M USD LIBOR + 2.13%), 6.99%, 2/12/47(b)(c) | | 131,000 | 106,765 |
|
| HUB International Ltd., 5.62%, 12/01/29(b) | | 15,000 | 13,350 |
| Liberty Mutual Group, Inc., | | | |
| 5.50%, 6/15/52(b) | | 36,000 | 34,229 |
| 4.30%, 2/01/61(b) | | 248,000 | 147,464 |
|
| New York Life Global Funding, 4.55%, 1/28/33(b) | | 110,000 | 109,342 |
| Old Republic International Corp., 3.85%, 6/11/51 | | 85,000 | 62,209 |
| | | Par (a) | Value |
| Insurance (Continued) |
|
| PartnerRe Finance B LLC, (5Y US Treasury CMT + 3.82%), 4.50%, 10/01/50(g) | | $ 199,000 | $ 167,189 |
| Principal Financial Group, Inc., | | | |
| 5.38%, 3/15/33 | | 29,000 | 29,506 |
| 5.50%, 3/15/53 | | 28,000 | 27,177 |
| | | | 1,818,791 |
| Internet Media & Services – 1.2% |
| ANGI Group LLC, 3.88%, 8/15/28(b) | | 80,000 | 62,613 |
| Arches Buyer, Inc., 6.12%, 12/01/28(b) | | 50,000 | 43,375 |
| Match Group Holdings II LLC, | | | |
| 5.00%, 12/15/27(b) | | 55,000 | 51,818 |
| 3.63%, 10/01/31(b) | | 25,000 | 20,422 |
| Meta Platforms, Inc., | | | |
| 3.50%, 8/15/27 | | 33,000 | 32,023 |
| 4.45%, 8/15/52 | | 130,000 | 114,570 |
| 4.65%, 8/15/62 | | 15,000 | 13,286 |
| Netflix, Inc., | | | |
| 5.87%, 2/15/25 | | 100,000 | 101,431 |
| 5.38%, 11/15/29(b) | | 55,000 | 56,227 |
| 4.87%, 6/15/30(b) | | 10,000 | 9,932 |
|
| Newfold Digital Holdings Group, Inc., 6.00%, 2/15/29(b) | | 215,000 | 147,640 |
| Uber Technologies, Inc., | | | |
| 8.00%, 11/01/26(b) | | 325,000 | 333,219 |
| 7.50%, 9/15/27(b) | | 95,000 | 97,991 |
| 4.50%, 8/15/29(b) | | 1,025,000 | 942,572 |
|
| Ziff Davis, Inc., 4.63%, 10/15/30(b) | | 98,000 | 86,106 |
| | | | 2,113,225 |
| Leisure Facilities & Services – 2.1% |
| Bloomin' Brands, Inc./OSI Restaurant Partners LLC, 5.12%, 4/15/29(b) | | 90,000 | 81,191 |
| Caesars Entertainment, Inc., 6.25%, 7/01/25(b) | | 150,000 | 150,183 |
| Carnival Corp., | | | |
| 5.75%, 3/01/27(b) | | 280,000 | 230,440 |
| 9.87%, 8/01/27(b) | | 45,000 | 46,135 |
|
| Everi Holdings, Inc., 5.00%, 7/15/29(b) | | 50,000 | 44,563 |
| Hilton Domestic Operating Co., Inc., 3.63%, 2/15/32(b) | | 45,000 | 38,403 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Leisure Facilities & Services (Continued) |
| Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, | | | |
| 5.00%, 6/01/29(b) | | $205,000 | $185,540 |
| 4.88%, 7/01/31(b) | | 120,000 | 104,979 |
|
| KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, 4.75%, 6/01/27(b) | | 290,000 | 285,302 |
| Marriott Ownership Resorts, Inc., | | | |
| 4.75%, 1/15/28 | | 255,000 | 227,682 |
| 4.50%, 6/15/29(b) | | 115,000 | 100,418 |
|
| McDonald's Corp., 5.70%, 2/01/39 | | 23,000 | 24,304 |
| NCL Corp. Ltd., | | | |
| 5.88%, 3/15/26(b) | | 335,000 | 288,558 |
| 5.88%, 3/15/26 | | 5,000 | 4,307 |
|
| NCL Finance Ltd., 6.12%, 3/15/28(b) | | 55,000 | 44,413 |
| Papa John's International, Inc., 3.88%, 9/15/29(b) | | 115,000 | 99,366 |
| Penn Entertainment, Inc., 4.13%, 7/01/29(b) | | 5,000 | 4,212 |
| Royal Caribbean Cruises Ltd., | | | |
| 4.25%, 7/01/26(b) | | 160,000 | 143,214 |
| 11.63%, 8/15/27(b) | | 115,000 | 122,335 |
| 3.70%, 3/15/28 | | 115,000 | 93,431 |
| 5.50%, 4/01/28(b) | | 320,000 | 282,175 |
| Scientific Games International, Inc., | | | |
| 7.00%, 5/15/28(b) | | 280,000 | 279,317 |
| 7.25%, 11/15/29(b) | | 35,000 | 35,000 |
|
| Speedway Motorsports LLC/Speedway Funding II, Inc., 4.87%, 11/01/27(b) | | 70,000 | 64,925 |
| Travel + Leisure Co., | | | |
| 6.62%, 7/31/26(b) | | 145,000 | 144,707 |
| 6.00%, 4/01/27 | | 10,000 | 9,838 |
| 4.50%, 12/01/29(b) | | 70,000 | 61,079 |
| 4.63%, 3/01/30(b) | | 150,000 | 129,375 |
|
| Viking Ocean Cruises Ship VII Ltd., 5.63%, 2/15/29(b) | | 105,000 | 88,744 |
| VOC Escrow Ltd., 5.00%, 2/15/28(b) | | 100,000 | 88,926 |
| | | Par (a) | Value |
| Leisure Facilities & Services (Continued) |
|
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.12%, 10/01/29(b) | | $150,000 | $ 138,112 |
| Yum! Brands, Inc., 3.63%, 3/15/31 | | 40,000 | 35,332 |
| | | | 3,676,506 |
| Leisure Products – 0.1% |
| Mattel, Inc., 3.75%, 4/01/29(b) | | 135,000 | 121,845 |
| Machinery – 0.2% |
| CNH Industrial Capital LLC, | | | |
| 5.45%, 10/14/25 | | 20,000 | 20,219 |
| 4.55%, 4/10/28 | | 72,000 | 71,251 |
|
| Deere & Co., 3.10%, 4/15/30 | | 44,000 | 41,001 |
| GrafTech Finance, Inc., 4.63%, 12/15/28(b) | | 45,000 | 37,823 |
| John Deere Capital Corp., 3.35%, 4/18/29 | | 68,000 | 64,899 |
| Madison IAQ LLC, 5.87%, 6/30/29(b) | | 80,000 | 62,625 |
| Regal Rexnord Corp., | | | |
| 6.30%, 2/15/30(b) | | 20,000 | 20,376 |
| 6.40%, 4/15/33(b) | | 20,000 | 20,396 |
|
| Xylem, Inc., 3.25%, 11/01/26 | | 102,000 | 97,700 |
| | | | 436,290 |
| Medical Equipment & Devices – 0.3% |
| Becton Dickinson & Co., 4.69%, 2/13/28 | | 73,000 | 73,846 |
| Boston Scientific Corp., 4.70%, 3/01/49 | | 21,000 | 19,944 |
| Garden Spinco Corp., 8.62%, 7/20/30(b) | | 90,000 | 96,750 |
| Hologic, Inc., 4.63%, 2/01/28(b) | | 60,000 | 58,337 |
| Medline Borrower L.P., 3.88%, 4/01/29(b) | | 120,000 | 104,994 |
| Medtronic Global Holdings S.C.A., 4.50%, 3/30/33 | | 69,000 | 69,643 |
| Thermo Fisher Scientific, Inc., 4.80%, 11/21/27 | | 26,000 | 26,713 |
| | | | 450,227 |
| Metals & Mining – 0.1% |
| Novelis Corp., 4.75%, 1/30/30(b) | | 175,000 | 158,353 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Oil & Gas Producers – 5.3% |
| Antero Midstream Partners L.P./Antero Midstream Finance Corp., | | | |
| 7.87%, 5/15/26(b) | | $ 60,000 | $ 61,606 |
| 5.38%, 6/15/29(b) | | 90,000 | 84,275 |
|
| Antero Resources Corp., 5.38%, 3/01/30(b) | | 40,000 | 37,476 |
| Apache Corp., 4.38%, 10/15/28 | | 10,000 | 9,368 |
| Ascent Resources Utica Holdings LLC/ARU Finance Corp., 7.00%, 11/01/26(b) | | 155,000 | 149,989 |
| Blue Racer Midstream LLC/Blue Racer Finance Corp., 7.63%, 12/15/25(b) | | 130,000 | 130,268 |
| BP Capital Markets America, Inc., | | | |
| 3.94%, 9/21/28 | | 89,000 | 87,952 |
| 3.00%, 2/24/50 | | 43,000 | 30,803 |
| 2.94%, 6/04/51 | | 38,000 | 26,676 |
| Buckeye Partners L.P., | | | |
| 4.50%, 3/01/28(b) | | 105,000 | 95,419 |
| 5.85%, 11/15/43 | | 55,000 | 42,325 |
| 5.60%, 10/15/44 | | 30,000 | 21,615 |
|
| California Resources Corp., 7.12%, 2/01/26(b) | | 70,000 | 70,704 |
| Callon Petroleum Co., | | | |
| 8.00%, 8/01/28(b) | | 85,000 | 83,863 |
| 7.50%, 6/15/30(b) | | 40,000 | 37,993 |
|
| Calumet Specialty Products Partners L.P./Calumet Finance Corp., 11.00%, 4/15/25(b) | | 40,000 | 41,082 |
| Cameron LNG LLC, 2.90%, 7/15/31(b) | | 78,000 | 69,290 |
| Cheniere Corpus Christi Holdings LLC, 3.70%, 11/15/29 | | 11,000 | 10,294 |
| Cheniere Energy Partners L.P., 4.00%, 3/01/31 | | 95,000 | 84,970 |
| Chesapeake Energy Corp., | | | |
| 5.50%, 2/01/26(b) | | 240,000 | 237,554 |
| 6.75%, 4/15/29(b) | | 50,000 | 49,496 |
|
| Chord Energy Corp., 6.38%, 6/01/26(b) | | 50,000 | 49,742 |
| CNX Resources Corp., 7.25%, 3/14/27(b) | | 110,000 | 108,755 |
| Comstock Resources, Inc., 6.75%, 3/01/29(b) | | 95,000 | 86,011 |
| Continental Resources, Inc., | | | |
| 5.75%, 1/15/31(b) | | 110,000 | 107,558 |
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Continental Resources, Inc., | | | |
| 2.88%, 4/01/32(b) | | $230,000 | $180,804 |
| Coterra Energy, Inc., | | | |
| 3.90%, 5/15/27 | | 98,000 | 94,314 |
| 4.38%, 3/15/29 | | 14,000 | 13,455 |
|
| Crescent Energy Finance LLC, 7.25%, 5/01/26(b) | | 110,000 | 105,382 |
| Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 6.00%, 2/01/29(b) | | 100,000 | 94,250 |
| CVR Energy, Inc., 5.25%, 2/15/25(b) | | 155,000 | 149,860 |
| DCP Midstream Operating L.P., | | | |
| 5.38%, 7/15/25 | | 80,000 | 80,015 |
| 5.63%, 7/15/27 | | 170,000 | 172,427 |
| 3.25%, 2/15/32 | | 10,000 | 8,545 |
| Diamondback Energy, Inc., | | | |
| 3.50%, 12/01/29 | | 21,000 | 19,417 |
| 6.25%, 3/15/33 | | 58,000 | 61,869 |
| 4.40%, 3/24/51 | | 57,000 | 46,401 |
| 4.25%, 3/15/52 | | 48,000 | 37,887 |
| 6.25%, 3/15/53 | | 22,000 | 22,992 |
| Energy Transfer L.P., | | | |
| (5Y US Treasury CMT + 5.69%), 6.50%, 11/15/26(f)(g) | | 82,000 | 72,570 |
| (5Y US Treasury CMT + 5.31%), 7.13%, 5/15/30(f)(g) | | 66,000 | 55,605 |
| 5.75%, 2/15/33 | | 19,000 | 19,373 |
| 5.30%, 4/15/47 | | 99,000 | 86,732 |
| 5.40%, 10/01/47 | | 46,000 | 40,961 |
| 6.00%, 6/15/48 | | 92,000 | 87,858 |
|
| EnLink Midstream LLC, 6.50%, 9/01/30(b) | | 105,000 | 106,068 |
| EnLink Midstream Partners L.P., | | | |
| 5.60%, 4/01/44 | | 45,000 | 37,398 |
| 5.05%, 4/01/45 | | 20,000 | 15,872 |
| 5.45%, 6/01/47 | | 130,000 | 108,550 |
|
| Enterprise Products Operating LLC, 3.95%, 1/31/60 | | 105,000 | 81,843 |
| EQM Midstream Partners L.P., | | | |
| 6.00%, 7/01/25(b) | | 28,000 | 27,508 |
| 7.50%, 6/01/27(b) | | 170,000 | 169,391 |
| 6.50%, 7/01/27(b) | | 140,000 | 136,501 |
| 5.50%, 7/15/28 | | 30,000 | 27,346 |
| 7.50%, 6/01/30(b) | | 35,000 | 33,973 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| EQM Midstream Partners L.P., | | | |
| 6.50%, 7/15/48 | | $ 30,000 | $ 22,715 |
| EQT Corp., | | | |
| 6.12%, 2/01/25 | | 205,000 | 205,547 |
| 3.13%, 5/15/26(b) | | 10,000 | 9,287 |
| 3.90%, 10/01/27 | | 140,000 | 132,447 |
| 5.70%, 4/01/28 | | 16,000 | 16,070 |
| Exxon Mobil Corp., | | | |
| 2.28%, 8/16/26 | | 80,000 | 75,808 |
| 3.00%, 8/16/39 | | 34,000 | 27,572 |
| 4.23%, 3/19/40 | | 103,000 | 97,011 |
|
| Genesis Energy L.P./Genesis Energy Finance Corp., 7.75%, 2/01/28 | | 170,000 | 167,320 |
| Gulfport Energy Corp., 8.00%, 5/17/26(b) | | 55,000 | 55,138 |
| Hess Midstream Operations L.P., | | | |
| 5.63%, 2/15/26(b) | | 169,000 | 166,352 |
| 5.13%, 6/15/28(b) | | 40,000 | 37,996 |
| 4.25%, 2/15/30(b) | | 125,000 | 111,136 |
|
| Holly Energy Partners L.P./Holly Energy Finance Corp., 6.37%, 4/15/27(b) | | 75,000 | 73,872 |
| Kinder Morgan, Inc., 5.20%, 6/01/33 | | 31,000 | 30,774 |
| Kinetik Holdings L.P., 5.88%, 6/15/30(b) | | 90,000 | 86,217 |
| Marathon Petroleum Corp., | | | |
| 4.75%, 9/15/44 | | 22,000 | 19,077 |
| 5.00%, 9/15/54 | | 65,000 | 56,054 |
| Matador Resources Co., | | | |
| 5.87%, 9/15/26 | | 150,000 | 147,094 |
| 6.87%, 4/15/28(b) | | 45,000 | 45,282 |
| MPLX L.P., | | | |
| 4.00%, 2/15/25 | | 54,000 | 52,918 |
| 1.75%, 3/01/26 | | 45,000 | 41,394 |
| 5.20%, 3/01/47 | | 98,000 | 88,402 |
| 5.50%, 2/15/49 | | 47,000 | 43,492 |
|
| Murphy Oil Corp., 6.12%, 12/01/42 | | 120,000 | 102,763 |
| Murphy Oil USA, Inc., 4.75%, 9/15/29 | | 25,000 | 23,188 |
| Northern Oil and Gas, Inc., 8.13%, 3/01/28(b) | | 60,000 | 59,250 |
| NuStar Logistics L.P., 5.75%, 10/01/25 | | 100,000 | 98,073 |
| Occidental Petroleum Corp., | | | |
| 5.55%, 3/15/26 | | 35,000 | 35,294 |
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Occidental Petroleum Corp., | | | |
| 8.50%, 7/15/27 | | $ 45,000 | $ 49,551 |
| 8.87%, 7/15/30 | | 140,000 | 164,500 |
| 6.63%, 9/01/30 | | 299,000 | 319,182 |
| 6.13%, 1/01/31 | | 209,000 | 218,482 |
| 7.50%, 5/01/31 | | 55,000 | 61,365 |
| 7.88%, 9/15/31 | | 25,000 | 28,331 |
| 6.60%, 3/15/46 | | 260,000 | 277,454 |
|
| ONEOK Partners L.P., 6.12%, 2/01/41 | | 18,000 | 17,942 |
| Ovintiv, Inc., | | | |
| 7.37%, 11/01/31 | | 35,000 | 38,136 |
| 6.50%, 8/15/34 | | 21,000 | 21,514 |
|
| PDC Energy, Inc., 5.75%, 5/15/26 | | 275,000 | 266,947 |
| Permian Resources Operating LLC, | | | |
| 6.87%, 4/01/27(b) | | 90,000 | 89,100 |
| 5.88%, 7/01/29(b) | | 60,000 | 56,777 |
|
| Phillips 66, 2.15%, 12/15/30 | | 36,000 | 30,038 |
| Pioneer Natural Resources Co., 1.90%, 8/15/30 | | 34,000 | 28,231 |
| Plains All American Pipeline L.P./PAA Finance Corp., | | | |
| 3.55%, 12/15/29 | | 31,000 | 27,996 |
| 4.30%, 1/31/43 | | 8,000 | 6,056 |
|
| Range Resources Corp., 8.25%, 1/15/29 | | 55,000 | 57,404 |
| Sabine Pass Liquefaction LLC, 4.20%, 3/15/28 | | 148,000 | 143,356 |
| SM Energy Co., | | | |
| 5.63%, 6/01/25 | | 80,000 | 78,151 |
| 6.75%, 9/15/26 | | 75,000 | 73,875 |
|
| Southwestern Energy Co., 5.38%, 2/01/29 | | 50,000 | 47,139 |
| Sunoco L.P./Sunoco Finance Corp., 4.50%, 5/15/29 | | 60,000 | 54,054 |
| Tap Rock Resources LLC, 7.00%, 10/01/26(b) | | 90,000 | 86,473 |
| Targa Resources Corp., | | | |
| 5.20%, 7/01/27 | | 130,000 | 130,214 |
| 4.20%, 2/01/33 | | 58,000 | 52,694 |
| 6.13%, 3/15/33 | | 124,000 | 129,458 |
| 4.95%, 4/15/52 | | 24,000 | 19,889 |
| 6.25%, 7/01/52 | | 21,000 | 20,775 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., | | | |
| 5.00%, 1/15/28 | | $ 25,000 | $ 24,446 |
| 5.50%, 3/01/30 | | 70,000 | 68,193 |
| 4.88%, 2/01/31 | | 119,000 | 112,148 |
|
| Transcontinental Gas Pipe Line Co. LLC, 3.25%, 5/15/30 | | 29,000 | 26,451 |
| Western Midstream Operating L.P., | | | |
| 3.35%, 2/01/25 | | 50,000 | 47,743 |
| 4.50%, 3/01/28 | | 25,000 | 23,851 |
| 4.75%, 8/15/28 | | 80,000 | 76,759 |
| 5.30%, 3/01/48 | | 80,000 | 67,512 |
| 5.50%, 2/01/50 | | 55,000 | 46,661 |
| Williams (The) Cos., Inc., | | | |
| 3.75%, 6/15/27 | | 89,000 | 85,912 |
| 5.10%, 9/15/45 | | 67,000 | 61,255 |
| | | | 9,373,809 |
| Oil, Gas Services & Equipment – 0.4% |
| Solaris Midstream Holdings LLC, 7.63%, 4/01/26(b) | | 90,000 | 86,400 |
| Transocean Poseidon Ltd., 6.88%, 2/01/27(b) | | 341,250 | 332,862 |
| Transocean Titan Financing Ltd., 8.37%, 2/01/28(b) | | 70,000 | 71,346 |
| Weatherford International Ltd., | | | |
| 11.00%, 12/01/24(b) | | 7,000 | 7,209 |
| 8.62%, 4/30/30(b) | | 135,000 | 137,514 |
| | | | 635,331 |
| Publishing & Broadcasting – 0.3% |
| iHeartCommunications, Inc., | | | |
| 6.38%, 5/01/26 | | 155,000 | 132,964 |
| 8.37%, 5/01/27 | | 195,000 | 128,678 |
| 4.75%, 1/15/28(b) | | 160,000 | 124,538 |
|
| Nexstar Media, Inc., 5.63%, 7/15/27(b) | | 25,000 | 23,480 |
| Sinclair Television Group, Inc., 5.13%, 2/15/27(b) | | 100,000 | 85,844 |
| | | | 495,504 |
| Real Estate Investment Trusts – 1.7% |
| Alexandria Real Estate Equities, Inc., | | | |
| 3.55%, 3/15/52 | | 9,000 | 6,353 |
| 5.15%, 4/15/53 | | 8,000 | 7,320 |
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
| American Homes 4 Rent L.P., | | | |
| 3.63%, 4/15/32 | | $ 42,000 | $ 36,722 |
| 3.38%, 7/15/51 | | 57,000 | 37,708 |
| 4.30%, 4/15/52 | | 12,000 | 9,321 |
| American Tower Corp., | | | |
| 4.40%, 2/15/26 | | 26,000 | 25,657 |
| 3.65%, 3/15/27 | | 35,000 | 33,489 |
| 3.60%, 1/15/28 | | 48,000 | 45,469 |
| 2.70%, 4/15/31 | | 66,000 | 55,783 |
| 5.65%, 3/15/33 | | 32,000 | 33,232 |
|
| Boston Properties L.P., 2.45%, 10/01/33 | | 59,000 | 42,434 |
| Camden Property Trust, 2.80%, 5/15/30 | | 79,000 | 68,812 |
| Crown Castle, Inc., | | | |
| 4.80%, 9/01/28 | | 21,000 | 21,029 |
| 3.30%, 7/01/30 | | 41,000 | 37,007 |
| 2.10%, 4/01/31 | | 84,000 | 68,597 |
| 2.50%, 7/15/31 | | 58,000 | 48,667 |
|
| CubeSmart L.P., 2.50%, 2/15/32 | | 64,000 | 51,847 |
| Extra Space Storage L.P., 3.90%, 4/01/29 | | 45,000 | 42,149 |
| Invitation Homes Operating Partnership L.P., | | | |
| 2.30%, 11/15/28 | | 85,000 | 72,290 |
| 2.00%, 8/15/31 | | 94,000 | 72,441 |
| 4.15%, 4/15/32 | | 89,000 | 80,313 |
| 2.70%, 1/15/34 | | 42,000 | 32,365 |
| Iron Mountain, Inc., | | | |
| 5.25%, 3/15/28(b) | | 60,000 | 57,712 |
| 4.88%, 9/15/29(b) | | 190,000 | 173,293 |
| 5.25%, 7/15/30(b) | | 10,000 | 9,210 |
| 4.50%, 2/15/31(b) | | 85,000 | 73,906 |
| Life Storage L.P., | | | |
| 4.00%, 6/15/29 | | 20,000 | 18,726 |
| 2.40%, 10/15/31 | | 103,000 | 83,520 |
| Mid-America Apartments L.P., | | | |
| 3.60%, 6/01/27 | | 47,000 | 45,125 |
| 4.20%, 6/15/28 | | 78,000 | 76,324 |
| 2.75%, 3/15/30 | | 85,000 | 74,470 |
| 1.70%, 2/15/31 | | 17,000 | 13,648 |
|
| MPT Operating Partnership L.P./MPT Finance Corp., 3.50%, 3/15/31 | | 15,000 | 10,253 |
| Prologis L.P., | | | |
| 4.75%, 6/15/33 | | 30,000 | 30,050 |
| 5.25%, 6/15/53 | | 25,000 | 25,018 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
| Realty Income Corp., | | | |
| 4.87%, 6/01/26 | | $ 33,000 | $ 33,006 |
| 3.95%, 8/15/27 | | 62,000 | 59,788 |
| 4.85%, 3/15/30 | | 34,000 | 33,839 |
| 4.90%, 7/15/33 | | 35,000 | 34,363 |
|
| Rexford Industrial Realty L.P., 2.15%, 9/01/31 | | 37,000 | 29,513 |
| SBA Communications Corp., | | | |
| 3.87%, 2/15/27 | | 115,000 | 107,261 |
| 3.13%, 2/01/29 | | 325,000 | 278,038 |
| Service Properties Trust, | | | |
| 7.50%, 9/15/25 | | 110,000 | 107,732 |
| 4.75%, 10/01/26 | | 80,000 | 69,143 |
| 3.95%, 1/15/28 | | 30,000 | 23,486 |
|
| Uniti Group L.P./Uniti Group Finance, Inc./CSL Capital LLC, 4.75%, 4/15/28(b) | | 125,000 | 99,398 |
| VICI Properties L.P., 4.37%, 5/15/25 | | 170,000 | 165,703 |
| VICI Properties L.P./VICI Note Co., Inc., | | | |
| 5.62%, 5/01/24(b) | | 5,000 | 4,976 |
| 4.50%, 9/01/26(b) | | 5,000 | 4,756 |
| 4.25%, 12/01/26(b) | | 5,000 | 4,764 |
| 4.50%, 1/15/28(b) | | 226,000 | 212,045 |
|
| Welltower OP LLC, 2.75%, 1/15/31 | | 55,000 | 46,137 |
| Weyerhaeuser Co., 4.00%, 3/09/52 | | 27,000 | 22,151 |
| | | | 2,956,359 |
| Real Estate Services – 0.1% |
| Realogy Group LLC/Realogy Co-Issuer Corp., | | | |
| 5.75%, 1/15/29(b) | | 120,000 | 89,100 |
| 5.25%, 4/15/30(b) | | 65,000 | 46,342 |
| | | | 135,442 |
| Retail - Consumer Staples – 0.5% |
| Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertsons LLC, | | | |
| 3.25%, 3/15/26(b) | | 25,000 | 23,511 |
| 4.63%, 1/15/27(b) | | 275,000 | 265,842 |
|
| Kroger (The) Co., 2.20%, 5/01/30 | | 63,000 | 53,143 |
| Target Corp., | | | |
| 4.50%, 9/15/32 | | 34,000 | 34,242 |
| 4.40%, 1/15/33 | | 82,000 | 81,983 |
| 2.95%, 1/15/52 | | 9,000 | 6,558 |
| | | Par (a) | Value |
| Retail - Consumer Staples (Continued) |
| Target Corp., | | | |
| 4.80%, 1/15/53 | | $141,000 | $138,998 |
| Walmart, Inc., | | | |
| 4.10%, 4/15/33 | | 116,000 | 115,724 |
| 4.50%, 9/09/52 | | 33,000 | 32,671 |
| 4.50%, 4/15/53 | | 65,000 | 64,408 |
| | | | 817,080 |
| Retail - Discretionary – 0.9% |
| Asbury Automotive Group, Inc., | | | |
| 4.50%, 3/01/28 | | 94,000 | 85,393 |
| 4.63%, 11/15/29(b) | | 115,000 | 102,351 |
| 4.75%, 3/01/30 | | 27,000 | 23,962 |
|
| AutoZone, Inc., 4.75%, 2/01/33 | | 127,000 | 126,213 |
| Bath & Body Works, Inc., | | | |
| 5.25%, 2/01/28 | | 40,000 | 38,240 |
| 6.87%, 11/01/35 | | 35,000 | 31,677 |
| 6.75%, 7/01/36 | | 75,000 | 66,749 |
| Builders FirstSource, Inc., | | | |
| 5.00%, 3/01/30(b) | | 55,000 | 51,351 |
| 4.25%, 2/01/32(b) | | 70,000 | 61,333 |
|
| ERAC USA Finance LLC, 5.40%, 5/01/53(b) | | 39,000 | 39,238 |
| Foundation Building Materials, Inc., 6.00%, 3/01/29(b) | | 135,000 | 107,853 |
| Group 1 Automotive, Inc., 4.00%, 8/15/28(b) | | 35,000 | 31,058 |
| Home Depot (The), Inc., | | | |
| 3.25%, 4/15/32 | | 20,000 | 18,459 |
| 3.30%, 4/15/40 | | 65,000 | 54,178 |
| 2.75%, 9/15/51 | | 102,000 | 69,908 |
| 3.63%, 4/15/52 | | 21,000 | 17,115 |
| 4.95%, 9/15/52 | | 41,000 | 41,279 |
|
| Ken Garff Automotive LLC, 4.87%, 9/15/28(b) | | 60,000 | 52,402 |
| LBM Acquisition LLC, 6.25%, 1/15/29(b) | | 105,000 | 83,620 |
| Lithia Motors, Inc., 4.38%, 1/15/31(b) | | 20,000 | 17,176 |
| Lowe's Cos., Inc., | | | |
| 4.65%, 4/15/42 | | 33,000 | 29,815 |
| 5.75%, 7/01/53 | | 36,000 | 36,736 |
| 4.45%, 4/01/62 | | 28,000 | 23,000 |
| 5.80%, 9/15/62 | | 33,000 | 33,206 |
| 5.85%, 4/01/63 | | 27,000 | 27,149 |
|
| Macy's Retail Holdings LLC, 5.88%, 4/01/29(b) | | 10,000 | 9,160 |
| Michaels (The) Cos., Inc., 7.88%, 5/01/29(b) | | 70,000 | 46,925 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Retail - Discretionary (Continued) |
|
| Nordstrom, Inc., 4.25%, 8/01/31 | | $ 15,000 | $ 11,139 |
| Patrick Industries, Inc., 4.75%, 5/01/29(b) | | 105,000 | 91,350 |
| Sonic Automotive, Inc., | | | |
| 4.63%, 11/15/29(b) | | 130,000 | 109,052 |
| 4.87%, 11/15/31(b) | | 120,000 | 96,900 |
|
| Victoria's Secret & Co., 4.62%, 7/15/29(b) | | 5,000 | 4,044 |
| | | | 1,638,031 |
| Semiconductors – 1.1% |
| Advanced Micro Devices, Inc., | | | |
| 3.92%, 6/01/32 | | 84,000 | 81,554 |
| 4.39%, 6/01/52 | | 72,000 | 67,022 |
| Broadcom, Inc., | | | |
| 2.45%, 2/15/31(b) | | 35,000 | 28,690 |
| 4.30%, 11/15/32 | | 165,000 | 151,289 |
| 3.42%, 4/15/33(b) | | 46,000 | 38,715 |
| 3.19%, 11/15/36(b) | | 139,000 | 105,779 |
| 4.93%, 5/15/37(b) | | 96,000 | 87,628 |
|
| Entegris Escrow Corp., 5.95%, 6/15/30(b) | | 210,000 | 199,593 |
| Intel Corp., | | | |
| 3.70%, 7/29/25 | | 32,000 | 31,503 |
| 5.13%, 2/10/30 | | 60,000 | 61,454 |
| 5.20%, 2/10/33 | | 10,000 | 10,211 |
| 2.80%, 8/12/41 | | 132,000 | 95,797 |
| 5.90%, 2/10/63 | | 7,000 | 7,209 |
| KLA Corp., | | | |
| 4.95%, 7/15/52 | | 39,000 | 38,601 |
| 5.25%, 7/15/62 | | 40,000 | 40,666 |
|
| Micron Technology, Inc., 6.75%, 11/01/29 | | 285,000 | 300,339 |
| NVIDIA Corp., | | | |
| 1.55%, 6/15/28 | | 131,000 | 116,501 |
| 2.00%, 6/15/31 | | 28,000 | 23,724 |
| 3.50%, 4/01/40 | | 44,000 | 37,891 |
|
| QUALCOMM, Inc., 6.00%, 5/20/53 | | 138,000 | 156,920 |
| Texas Instruments, Inc., | | | |
| 3.65%, 8/16/32 | | 62,000 | 59,105 |
| 4.90%, 3/14/33 | | 57,000 | 59,462 |
| 3.88%, 3/15/39 | | 90,000 | 82,614 |
| 5.00%, 3/14/53 | | 50,000 | 51,766 |
| | | | 1,934,033 |
| Software – 0.9% |
| Cloud Software Group, Inc., 6.50%, 3/31/29(b) | | 125,000 | 112,577 |
| | | Par (a) | Value |
| Software (Continued) |
| Fortinet, Inc., 1.00%, 3/15/26 | | $ 66,000 | $ 59,787 |
| Gen Digital, Inc., 6.75%, 9/30/27(b) | | 130,000 | 131,004 |
| GoTo Group, Inc., 5.50%, 9/01/27(b) | | 165,000 | 92,897 |
| Microsoft Corp., | | | |
| 3.45%, 8/08/36 | | 19,000 | 17,650 |
| 2.53%, 6/01/50 | | 2,000 | 1,419 |
| 2.92%, 3/17/52 | | 120,000 | 91,958 |
| 2.67%, 6/01/60 | | 45,000 | 31,174 |
| Oracle Corp., | | | |
| 2.95%, 5/15/25 | | 167,000 | 160,916 |
| 2.80%, 4/01/27 | | 53,000 | 49,381 |
| 3.25%, 11/15/27 | | 122,000 | 115,016 |
| 2.30%, 3/25/28 | | 68,000 | 60,830 |
| 4.50%, 5/06/28 | | 160,000 | 158,353 |
| 6.15%, 11/09/29 | | 47,000 | 49,870 |
| 4.90%, 2/06/33 | | 12,000 | 11,823 |
| 4.30%, 7/08/34 | | 58,000 | 53,481 |
| 3.80%, 11/15/37 | | 16,000 | 13,386 |
| 4.13%, 5/15/45 | | 96,000 | 75,642 |
| 4.00%, 11/15/47 | | 33,000 | 25,347 |
| 3.60%, 4/01/50 | | 105,000 | 74,656 |
| 3.95%, 3/25/51 | | 7,000 | 5,285 |
| 6.90%, 11/09/52 | | 32,000 | 35,850 |
| 5.55%, 2/06/53 | | 24,000 | 23,058 |
| 3.85%, 4/01/60 | | 43,000 | 30,166 |
|
| Salesforce, Inc., 2.70%, 7/15/41 | | 128,000 | 95,732 |
| SS&C Technologies, Inc., 5.50%, 9/30/27(b) | | 60,000 | 58,075 |
| | | | 1,635,333 |
| Specialty Finance – 1.7% |
| Aircastle Ltd., (5Y US Treasury CMT + 4.41%), 5.25%, 6/15/26(b)(f)(g) | | 55,000 | 39,909 |
| American Express Co., | | | |
| (SOFR + 1.00%), 4.99%, 5/01/26(g) | | 51,000 | 50,981 |
| (SOFR + 1.76%), 4.42%, 8/03/33(g) | | 96,000 | 92,283 |
| (SOFR + 1.84%), 5.04%, 5/01/34(g) | | 51,000 | 51,113 |
| Aviation Capital Group LLC, | | | |
| 1.95%, 9/20/26(b) | | 88,000 | 76,861 |
| 6.25%, 4/15/28(b) | | 63,000 | 63,552 |
|
| Capital One Financial Corp., (SOFR + 1.79%), 3.27%, 3/01/30(g) | | 143,000 | 124,011 |
| Cobra AcquisitionCo LLC, 6.38%, 11/01/29(b) | | 85,000 | 48,875 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Specialty Finance (Continued) |
|
| LFS Topco LLC, 5.88%, 10/15/26(b) | | $ 90,000 | $ 78,975 |
| Nationstar Mortgage Holdings, Inc., | | | |
| 6.00%, 1/15/27(b) | | 175,000 | 165,812 |
| 5.13%, 12/15/30(b) | | 75,000 | 61,432 |
| 5.75%, 11/15/31(b) | | 145,000 | 120,603 |
| Navient Corp., | | | |
| 5.00%, 3/15/27 | | 300,000 | 270,123 |
| 4.88%, 3/15/28 | | 115,000 | 98,899 |
| OneMain Finance Corp., | | | |
| 6.87%, 3/15/25 | | 100,000 | 97,828 |
| 7.12%, 3/15/26 | | 140,000 | 136,436 |
| 3.50%, 1/15/27 | | 145,000 | 123,847 |
| 4.00%, 9/15/30 | | 120,000 | 90,622 |
|
| Provident Funding Associates L.P./PFG Finance Corp., 6.37%, 6/15/25(b) | | 105,000 | 91,875 |
| Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | |
| 2.88%, 10/15/26(b) | | 270,000 | 240,325 |
| 2.88%, 10/15/26 | | 30,000 | 26,703 |
| 3.63%, 3/01/29(b) | | 40,000 | 33,821 |
| 3.63%, 3/01/29 | | 80,000 | 67,642 |
| 3.88%, 3/01/31(b) | | 115,000 | 92,874 |
| 4.00%, 10/15/33(b) | | 565,000 | 442,112 |
|
| Synchrony Financial, 7.25%, 2/02/33 | | 159,000 | 146,279 |
| | | | 2,933,793 |
| Steel – 0.3% |
| ATI, Inc., | | | |
| 5.87%, 12/01/27 | | 155,000 | 151,368 |
| 4.88%, 10/01/29 | | 50,000 | 46,097 |
|
| Cleveland-Cliffs, Inc., 6.75%, 3/15/26(b) | | 150,000 | 152,541 |
| Commercial Metals Co., 4.13%, 1/15/30 | | 120,000 | 107,425 |
| Nucor Corp., 4.30%, 5/23/27 | | 39,000 | 38,798 |
| United States Steel Corp., 6.87%, 3/01/29 | | 22,000 | 21,617 |
| | | | 517,846 |
| Technology Hardware – 0.7% |
| Apple, Inc., | | | |
| 1.65%, 2/08/31 | | 12,000 | 10,137 |
| 3.85%, 5/04/43 | | 65,000 | 59,335 |
| 4.38%, 5/13/45 | | 25,000 | 24,213 |
| 4.65%, 2/23/46 | | 55,000 | 55,347 |
| 3.85%, 8/04/46 | | 33,000 | 29,532 |
| | | Par (a) | Value |
| Technology Hardware (Continued) |
| Apple, Inc., | | | |
| 4.25%, 2/09/47 | | $ 6,000 | $ 5,751 |
| 2.70%, 8/05/51 | | 62,000 | 43,865 |
| 3.95%, 8/08/52 | | 37,000 | 33,011 |
| 2.85%, 8/05/61 | | 68,000 | 46,839 |
| 4.10%, 8/08/62 | | 16,000 | 14,184 |
| Avnet, Inc., | | | |
| 6.25%, 3/15/28 | | 45,000 | 46,179 |
| 5.50%, 6/01/32 | | 52,000 | 50,455 |
|
| CommScope Technologies LLC, 5.00%, 3/15/27(b) | | 625,000 | 431,787 |
| NCR Corp., | | | |
| 5.75%, 9/01/27(b) | | 105,000 | 103,036 |
| 5.00%, 10/01/28(b) | | 80,000 | 69,774 |
| 5.13%, 4/15/29(b) | | 55,000 | 47,575 |
| Seagate HDD Cayman, | | | |
| 4.87%, 6/01/27 | | 25,000 | 23,923 |
| 4.09%, 6/01/29 | | 30,000 | 26,011 |
| 9.63%, 12/01/32(b) | | 3,825 | 4,194 |
|
| ViaSat, Inc., 6.50%, 7/15/28(b) | | 65,000 | 51,568 |
| Western Digital Corp., | | | |
| 4.75%, 2/15/26 | | 40,000 | 38,013 |
| 3.10%, 2/01/32 | | 25,000 | 18,142 |
| | | | 1,232,871 |
| Technology Services – 1.0% |
| Block, Inc., 2.75%, 6/01/26 | | 165,000 | 149,327 |
| Dun & Bradstreet (The) Corp., 5.00%, 12/15/29(b) | | 55,000 | 48,294 |
| Fiserv, Inc., | | | |
| 5.45%, 3/02/28 | | 39,000 | 39,996 |
| 3.50%, 7/01/29 | | 111,000 | 103,389 |
|
| Gartner, Inc., 3.75%, 10/01/30(b) | | 40,000 | 34,931 |
| Global Payments, Inc., | | | |
| 4.95%, 8/15/27 | | 145,000 | 144,029 |
| 4.45%, 6/01/28 | | 131,000 | 125,834 |
| 5.95%, 8/15/52 | | 24,000 | 23,295 |
| International Business Machines Corp., | | | |
| 4.15%, 7/27/27 | | 51,000 | 50,610 |
| 3.50%, 5/15/29 | | 146,000 | 136,994 |
| Kyndryl Holdings, Inc., | | | |
| 2.05%, 10/15/26 | | 78,000 | 68,354 |
| 2.70%, 10/15/28 | | 52,000 | 43,917 |
| 3.15%, 10/15/31 | | 75,000 | 57,743 |
|
| Moody's Corp., 3.75%, 3/24/25 | | 50,000 | 48,881 |
| Neptune Bidco U.S., Inc., 9.29%, 4/15/29(b) | | 240,000 | 225,900 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Technology Services (Continued) |
| PayPal Holdings, Inc., | | | |
| 2.85%, 10/01/29 | | $ 12,000 | $ 10,897 |
| 2.30%, 6/01/30 | | 60,000 | 51,636 |
| 4.40%, 6/01/32 | | 15,000 | 14,721 |
| 5.05%, 6/01/52 | | 14,000 | 13,452 |
| 5.25%, 6/01/62 | | 56,000 | 53,973 |
|
| Paysafe Finance PLC/Paysafe Holdings U.S. Corp., 4.00%, 6/15/29(b) | | 15,000 | 11,724 |
| Presidio Holdings, Inc., | | | |
| 4.87%, 2/01/27(b) | | 30,000 | 28,412 |
| 8.25%, 2/01/28(b) | | 30,000 | 28,241 |
| S&P Global, Inc., | | | |
| 2.45%, 3/01/27 | | 68,000 | 63,798 |
| 2.70%, 3/01/29 | | 34,000 | 31,113 |
| 1.25%, 8/15/30 | | 32,000 | 25,820 |
| 2.90%, 3/01/32 | | 126,000 | 111,888 |
| 3.70%, 3/01/52 | | 41,000 | 34,281 |
|
| Sabre GLBL, Inc., 11.25%, 12/15/27(b) | | 40,000 | 35,150 |
| | | | 1,816,600 |
| Telecommunications – 0.9% |
| AT&T, Inc., | | | |
| 3.50%, 6/01/41 | | 127,000 | 100,062 |
| 3.50%, 9/15/53 | | 67,000 | 48,054 |
| 3.55%, 9/15/55 | | 121,000 | 85,873 |
| 3.80%, 12/01/57 | | 69,000 | 50,684 |
| 3.65%, 9/15/59 | | 184,000 | 130,193 |
| Frontier Communications Holdings LLC, | | | |
| 5.88%, 10/15/27(b) | | 185,000 | 170,290 |
| 8.75%, 5/15/30(b) | | 60,000 | 59,346 |
| Level 3 Financing, Inc., | | | |
| 4.25%, 7/01/28(b) | | 45,000 | 26,233 |
| 3.63%, 1/15/29(b) | | 125,000 | 69,909 |
|
| Sprint Capital Corp., 6.87%, 11/15/28 | | 61,000 | 65,763 |
| T-Mobile USA, Inc., | | | |
| 2.25%, 2/15/26 | | 97,000 | 90,271 |
| 2.63%, 4/15/26 | | 45,000 | 42,208 |
| 2.63%, 2/15/29 | | 24,000 | 21,209 |
| 3.38%, 4/15/29 | | 60,000 | 54,993 |
| 2.88%, 2/15/31 | | 63,000 | 54,589 |
| 2.55%, 2/15/31 | | 23,000 | 19,567 |
| 3.50%, 4/15/31 | | 180,000 | 162,609 |
| 5.05%, 7/15/33 | | 25,000 | 25,189 |
| 4.50%, 4/15/50 | | 52,000 | 45,572 |
| 5.80%, 9/15/62 | | 21,000 | 21,738 |
| | | Par (a) | Value |
| Telecommunications (Continued) |
| Verizon Communications, Inc., | | | |
| 4.50%, 8/10/33 | | $118,000 | $ 114,002 |
| 4.40%, 11/01/34 | | 33,000 | 31,314 |
| 4.81%, 3/15/39 | | 116,000 | 111,131 |
| 2.65%, 11/20/40 | | 64,000 | 45,420 |
| 3.70%, 3/22/61 | | 34,000 | 25,255 |
| | | | 1,671,474 |
| Tobacco & Cannabis – 0.1% |
| Altria Group, Inc., 3.70%, 2/04/51 | | 52,000 | 34,825 |
| Philip Morris International, Inc., 5.38%, 2/15/33 | | 169,000 | 172,374 |
| | | | 207,199 |
| Transportation & Logistics – 1.3% |
| Allegiant Travel Co., 7.25%, 8/15/27(b) | | 80,000 | 79,010 |
| American Airlines Pass Through Trust, | | | |
| Series 2015-2, Class AA, 3.60%, 9/22/27 | | 8,689 | 8,013 |
| Series 2016-1, Class AA, 3.58%, 1/15/28 | | 4,834 | 4,458 |
| Series 2016-2, Class AA, 3.20%, 6/15/28 | | 19,427 | 17,740 |
| Series 2016-2, Class A, 3.65%, 6/15/28 | | 12,951 | 11,291 |
| Series 2017-1, Class AA, 3.65%, 2/15/29 | | 13,490 | 12,352 |
| Series 2017-2, Class AA, 3.35%, 10/15/29 | | 249,451 | 222,600 |
| Series 2019-1, Class AA, 3.15%, 2/15/32 | | 8,373 | 7,246 |
|
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.75%, 4/20/29(b) | | 645,000 | 612,934 |
| Burlington Northern Santa Fe LLC, | | | |
| 4.40%, 3/15/42 | | 65,000 | 60,416 |
| 4.37%, 9/01/42 | | 12,000 | 11,164 |
| 4.45%, 3/15/43 | | 2,000 | 1,869 |
| 5.15%, 9/01/43 | | 39,000 | 39,837 |
| 4.90%, 4/01/44 | | 35,000 | 34,497 |
| 4.55%, 9/01/44 | | 13,000 | 12,312 |
| 4.05%, 6/15/48 | | 30,000 | 26,390 |
| 4.45%, 1/15/53 | | 81,000 | 76,183 |
| CSX Corp., | | | |
| 4.50%, 11/15/52 | | 52,000 | 47,844 |
| 4.65%, 3/01/68 | | 81,000 | 72,397 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Transportation & Logistics (Continued) |
| Delta Air Lines Pass Through Trust, | | | |
| Series 2015-1, Class A, 3.88%, 7/30/27 | | $ 8,081 | $ 7,433 |
| Series 2020-1, Class A, 2.50%, 6/10/28 | | 41,802 | 36,234 |
|
| Delta Air Lines, Inc./SkyMiles IP Ltd., 4.75%, 10/20/28(b) | | 42,073 | 40,857 |
| Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 6/20/27(b) | | 49,299 | 49,221 |
| Norfolk Southern Corp., | | | |
| 3.95%, 10/01/42 | | 61,000 | 52,266 |
| 4.55%, 6/01/53 | | 48,000 | 43,521 |
|
| Rand Parent LLC, 8.50%, 2/15/30(b) | | 305,000 | 276,319 |
| U.S. Airways Pass Through Trust, | | | |
| Series 2012-1, Class A, 5.90%, 10/01/24 | | 42,258 | 42,053 |
| Series 2012-2, Class A, 4.62%, 6/03/25 | | 45,512 | 43,158 |
| Union Pacific Corp., | | | |
| 3.60%, 9/15/37 | | 14,000 | 12,361 |
| 3.55%, 8/15/39 | | 37,000 | 31,839 |
| 3.38%, 2/14/42 | | 21,000 | 17,407 |
| 3.80%, 10/01/51 | | 15,000 | 12,561 |
| 3.50%, 2/14/53 | | 25,000 | 19,837 |
| 3.87%, 2/01/55 | | 9,000 | 7,419 |
| 3.95%, 8/15/59 | | 8,000 | 6,610 |
| 3.84%, 3/20/60 | | 50,000 | 40,678 |
| 5.15%, 1/20/63 | | 27,000 | 27,604 |
| 4.10%, 9/15/67 | | 12,000 | 10,051 |
| United Airlines Pass Through Trust, | | | |
| Series 2020-1, Class A, 5.88%, 10/15/27 | | 91,273 | 91,255 |
| Series 2016-2, Class AA, 2.88%, 10/07/28 | | 2,837 | 2,526 |
| Series 2018-1, Class AA, 3.50%, 3/01/30 | | 45,491 | 41,041 |
| Series 2018-1, Class A, 3.70%, 3/01/30 | | 7,843 | 6,771 |
| Series 2019-1, Class AA, 4.15%, 8/25/31 | | 16,502 | 15,213 |
| | | | 2,292,788 |
| Transportation Equipment – 0.1% |
| Allison Transmission, Inc., 4.75%, 10/01/27(b) | | 155,000 | 147,676 |
| | | Par (a) | Value |
| Wholesale - Consumer Staples – 0.1% |
| Performance Food Group, Inc., 4.25%, 8/01/29(b) | | $110,000 | $ 100,139 |
Total Corporate Bonds
(Cost $77,870,552) | 73,737,744 |
|
| Foreign Issuer Bonds – 48.9% |
| Angola – 0.3% |
| Angolan Government International Bond, | | | |
| 8.25%, 5/09/28(b) | | 260,000 | 227,354 |
| 8.75%, 4/14/32(b) | | 470,000 | 388,418 |
| | | | 615,772 |
| Argentina – 0.2% |
| Argentine Republic Government International Bond, | | | |
| (Step to 4.25% on 7/9/23), 3.88%, 1/09/38(j) | | 688,956 | 189,276 |
| (Step to 4.88% on 7/9/29), 3.50%, 7/09/41(j) | | 658,931 | 164,220 |
| | | | 353,496 |
| Australia – 0.5% |
| BHP Billiton Finance USA Ltd., 4.90%, 2/28/33 | | 94,000 | 96,384 |
| CSL Finance PLC, | | | |
| 4.25%, 4/27/32(b) | | 153,000 | 149,124 |
| 4.75%, 4/27/52(b) | | 61,000 | 57,930 |
| 4.95%, 4/27/62(b) | | 31,000 | 29,832 |
| Mineral Resources Ltd., | | | |
| 8.12%, 5/01/27(b) | | 110,000 | 110,933 |
| 8.00%, 11/01/27(b) | | 25,000 | 25,460 |
|
| NBN Co. Ltd., 2.50%, 1/08/32(b) | | 200,000 | 165,400 |
| Newcrest Finance Pty. Ltd., | | | |
| 3.25%, 5/13/30(b) | | 36,000 | 32,333 |
| 4.20%, 5/13/50(b) | | 41,000 | 33,634 |
|
| Northern Star Resources Ltd., 6.12%, 4/11/33(b) | | 21,000 | 20,932 |
| Rio Tinto Finance USA Ltd., 2.75%, 11/02/51 | | 35,000 | 24,495 |
| Rio Tinto Finance USA PLC, | | | |
| 5.00%, 3/09/33 | | 59,000 | 60,937 |
| 5.13%, 3/09/53 | | 63,000 | 64,911 |
| | | | 872,305 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Bahrain – 0.7% |
| Bahrain Government International Bond, | | | |
| 5.25%, 1/25/33(b) | | $ 250,000 | $ 215,677 |
| 5.62%, 5/18/34 | | 200,000 | 175,422 |
| 7.75%, 4/18/35(b) | | 400,000 | 403,356 |
|
| CBB International Sukuk Programme Co. WLL, 6.25%, 10/18/30(b) | | 200,000 | 202,318 |
| Oil and Gas Holding (The) Co. BSCC, 7.50%, 10/25/27 | | 200,000 | 205,390 |
| | | | 1,202,163 |
| Belgium – 0.3% |
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.90%, 2/01/46 | | 213,000 | 211,073 |
| Anheuser-Busch InBev Worldwide, Inc., | | | |
| 4.75%, 1/23/29 | | 72,000 | 73,630 |
| 4.37%, 4/15/38 | | 93,000 | 89,787 |
| 4.44%, 10/06/48 | | 86,000 | 80,541 |
| | | | 455,031 |
| Bermuda – 0.0%(d) |
| Triton Container International Ltd., 3.15%, 6/15/31(b) | | 49,000 | 38,856 |
| Brazil – 2.8% |
| Acu Petroleo Luxembourg S.a.r.l., 7.50%, 1/13/32(b) | | 248,470 | 216,701 |
| Banco do Brasil S.A., 6.25%, 4/18/30(b) | | 220,000 | 218,680 |
| Brazil Minas SPE via State of Minas Gerais, 5.33%, 2/15/28 | | 100,000 | 98,375 |
| Brazil Notas do Tesouro Nacional, Serie F, | | | |
| 10.00%, 1/01/25 | BRL | 6,782,000 | 1,315,602 |
| 10.00%, 1/01/27 | BRL | 5,055,000 | 960,399 |
| 10.00%, 1/01/29 | BRL | 5,360,000 | 986,432 |
| 10.00%, 1/01/31 | BRL | 446,000 | 80,051 |
| Brazilian Government International Bond, | | | |
| 3.75%, 9/12/31 | | 250,000 | 216,057 |
| 6.00%, 10/20/33 | | 200,000 | 196,528 |
|
| CSN Resources S.A., 4.63%, 6/10/31(b) | | 200,000 | 154,291 |
| Globo Comunicacao e Participacoes S.A., 5.50%, 1/14/32(b) | | 200,000 | 160,076 |
| | | Par (a) | Value |
| Brazil (Continued) |
|
| MC Brazil Downstream Trading S.a.r.l., 7.25%, 6/30/31(b) | | $193,250 | $ 148,507 |
| MV24 Capital B.V., 6.75%, 6/01/34(b) | | 171,300 | 152,966 |
| | | | 4,904,665 |
| Canada – 1.8% |
| 1011778 B.C. ULC/New Red Finance, Inc., | | | |
| 3.88%, 1/15/28(b) | | 475,000 | 445,521 |
| 3.50%, 2/15/29(b) | | 40,000 | 35,956 |
|
| Algonquin Power & Utilities Corp., (5Y US Treasury CMT + 3.25%), 4.75%, 1/18/82(g) | | 80,000 | 64,700 |
| Bank of Montreal, 3.70%, 6/07/25 | | 68,000 | 66,206 |
| Bank of Nova Scotia (The), | | | |
| 4.85%, 2/01/30 | | 44,000 | 43,936 |
| (5Y US Treasury CMT + 2.05%), 4.59%, 5/04/37(g) | | 204,000 | 180,845 |
| Baytex Energy Corp., | | | |
| 8.75%, 4/01/27(b) | | 165,000 | 169,740 |
| 8.50%, 4/30/30(b) | | 45,000 | 45,239 |
| Bombardier, Inc., | | | |
| 7.12%, 6/15/26(b) | | 380,000 | 378,806 |
| 6.00%, 2/15/28(b) | | 35,000 | 33,196 |
|
| Brookfield Residential Properties, Inc./Brookfield Residential U.S. LLC, 4.88%, 2/15/30(b) | | 70,000 | 54,600 |
| Enbridge, Inc., | | | |
| 5.70%, 3/08/33 | | 74,000 | 76,848 |
| (5Y US Treasury CMT + 3.71%), 7.37%, 1/15/83(g) | | 49,000 | 48,510 |
| (5Y US Treasury CMT + 4.42%), 7.62%, 1/15/83(g) | | 49,000 | 49,911 |
|
| GFL Environmental, Inc., 4.00%, 8/01/28(b) | | 80,000 | 73,014 |
| Intact Financial Corp., 5.46%, 9/22/32(b) | | 151,000 | 152,706 |
| Magna International, Inc., 5.50%, 3/21/33 | | 45,000 | 46,653 |
| MEG Energy Corp., 5.88%, 2/01/29(b) | | 30,000 | 28,803 |
| Nutrien Ltd., | | | |
| 5.95%, 11/07/25 | | 24,000 | 24,720 |
| 4.90%, 3/27/28 | | 19,000 | 19,078 |
| 2.95%, 5/13/30 | | 179,000 | 159,400 |
| 4.13%, 3/15/35 | | 31,000 | 28,254 |
| 5.80%, 3/27/53 | | 19,000 | 19,737 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Canada (Continued) |
|
| Open Text Corp., 6.90%, 12/01/27(b) | | $ 130,000 | $ 134,271 |
| Parkland Corp., | | | |
| 5.88%, 7/15/27(b) | | 95,000 | 92,508 |
| 4.50%, 10/01/29(b) | | 40,000 | 35,050 |
| Precision Drilling Corp., | | | |
| 7.12%, 1/15/26(b) | | 5,000 | 4,856 |
| 6.87%, 1/15/29(b) | | 65,000 | 59,638 |
| Royal Bank of Canada, | | | |
| 4.95%, 4/25/25 | | 119,000 | 119,076 |
| 3.63%, 5/04/27 | | 14,000 | 13,479 |
| 4.24%, 8/03/27 | | 26,000 | 25,453 |
| 5.00%, 5/02/33 | | 88,000 | 88,029 |
|
| Strathcona Resources Ltd., 6.87%, 8/01/26(b) | | 125,000 | 105,708 |
| Telesat Canada/Telesat LLC, 5.63%, 12/06/26(b) | | 80,000 | 44,687 |
| Toronto-Dominion Bank (The), | | | |
| 2.80%, 3/10/27 | | 42,000 | 38,988 |
| 4.11%, 6/08/27 | | 111,000 | 108,021 |
| | | | 3,116,143 |
| Chile – 1.5% |
| Bonos de la Tesoreria de la Republica en pesos, | | | |
| 4.50%, 3/01/26 | CLP | 80,000,000 | 94,057 |
| 5.00%, 10/01/28(b) | CLP | 95,000,000 | 113,853 |
| 4.70%, 9/01/30(b) | CLP | 420,000,000 | 494,708 |
| 5.00%, 3/01/35 | CLP | 100,000,000 | 119,782 |
| Chile Government International Bond, | | | |
| 2.55%, 1/27/32 | | 390,000 | 338,579 |
| 2.55%, 7/27/33 | | 200,000 | 167,386 |
| 3.50%, 1/31/34 | | 600,000 | 542,261 |
| Corp. Nacional del Cobre de Chile, | | | |
| 3.00%, 9/30/29 | | 400,000 | 359,511 |
| 5.12%, 2/02/33 | | 200,000 | 202,460 |
|
| Empresa Nacional del Petroleo, 5/10/33(b)(i) | | 200,000 | 200,500 |
| | | | 2,633,097 |
| China – 1.0% |
| Agile Group Holdings Ltd., 6.05%, 10/13/25 | | 205,000 | 83,922 |
| Agricultural Development Bank of China, 2.25%, 4/22/25 | CNY | 1,990,000 | 285,566 |
| China Evergrande Group, 8.75%, 6/28/25 | | 200,000 | 13,100 |
| China Government Bond, | | | |
| 2.75%, 6/15/29 | CNY | 4,280,000 | 618,435 |
| | | Par (a) | Value |
| China (Continued) |
| China Government Bond, | | | |
| 3.27%, 11/19/30 | CNY | $ 2,860,000 | $ 429,505 |
|
| Global Aircraft Leasing Co. Ltd., 6.50%, 9/15/24(b)(k) | | 92,718 | 82,771 |
| Kaisa Group Holdings Ltd., 9.38%, 6/30/24(h) | | 200,000 | 19,196 |
| NXP B.V./NXP Funding LLC/NXP USA, Inc., | | | |
| 5.00%, 1/15/33 | | 62,000 | 60,661 |
| 3.12%, 2/15/42 | | 23,000 | 16,355 |
| 3.25%, 11/30/51 | | 55,000 | 36,678 |
|
| Sunac China Holdings Ltd., 6.50%, 1/26/26 | | 200,000 | 40,008 |
| Times China Holdings Ltd., 6.20%, 3/22/26 | | 215,000 | 26,214 |
| Yuzhou Group Holdings Co. Ltd., 6.35%, 1/13/27(h) | | 200,000 | 13,288 |
| Zhenro Properties Group Ltd., 6.63%, 1/07/26 | | 200,000 | 12,000 |
| | | | 1,737,699 |
| Colombia – 1.5% |
| Colombia Government International Bond, | | | |
| 3.88%, 4/25/27 | | 200,000 | 180,110 |
| 7.50%, 2/02/34 | | 400,000 | 383,181 |
| 7.37%, 9/18/37 | | 200,000 | 185,691 |
| Colombian TES, | | | |
| 7.50%, 8/26/26 | COP | 1,737,800,000 | 331,962 |
| 5.75%, 11/03/27 | COP | 1,287,000,000 | 221,370 |
| 6.00%, 4/28/28 | COP | 1,425,600,000 | 243,349 |
| 7.75%, 9/18/30 | COP | 1,603,600,000 | 277,394 |
| 7.00%, 6/30/32 | COP | 1,562,100,000 | 244,642 |
|
| Ecopetrol S.A., 8.87%, 1/13/33 | | 170,000 | 164,825 |
| Gran Tierra Energy International Holdings Ltd., 6.25%, 2/15/25 | | 200,000 | 171,000 |
| Multibank, Inc., 7.75%, 2/03/28(b) | | 200,000 | 200,700 |
| | | | 2,604,224 |
| Costa Rica – 0.2% |
| Costa Rica Government International Bond, 6.55%, 4/03/34(b) | | 400,000 | 406,834 |
| Czech Republic – 1.2% |
| Czech Republic Government Bond, | | | |
| 1.25%, 2/14/25 | CZK | 8,090,000 | 353,025 |
| 1.00%, 6/26/26 | CZK | 6,500,000 | 269,256 |
| 5.50%, 12/12/28 | CZK | 4,760,000 | 231,812 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Czech Republic (Continued) |
| Czech Republic Government Bond, | | | |
| 2.75%, 7/23/29 | CZK | $ 8,230,000 | $ 345,177 |
| 0.95%, 5/15/30 | CZK | 8,670,000 | 317,120 |
| 1.75%, 6/23/32 | CZK | 5,220,000 | 195,320 |
| 2.00%, 10/13/33 | CZK | 11,750,000 | 435,093 |
| | | | 2,146,803 |
| Dominican Republic – 0.7% |
| Dominican Republic International Bond, | | | |
| 5.50%, 2/22/29(b) | | 475,000 | 451,993 |
| 4.50%, 1/30/30(b) | | 605,000 | 534,772 |
| 4.88%, 9/23/32(b) | | 350,000 | 301,347 |
| | | | 1,288,112 |
| Ecuador – 0.3% |
| Ecuador Government International Bond, | | | |
| (Step to 6.00% on 7/31/23), 5.50%, 7/31/30(j) | | 725,610 | 382,798 |
| (Step to 3.50% on 7/31/23), 2.50%, 7/31/35(b)(j) | | 170,291 | 62,218 |
| | | | 445,016 |
| Egypt – 0.3% |
| Egypt Government International Bond, | | | |
| 7.05%, 1/15/32(b) | | 335,000 | 184,501 |
| 7.30%, 9/30/33 | | 650,000 | 352,976 |
| | | | 537,477 |
| El Salvador – 0.3% |
| El Salvador Government International Bond, | | | |
| 6.38%, 1/18/27 | | 230,000 | 143,045 |
| 8.25%, 4/10/32 | | 210,000 | 118,125 |
| 7.12%, 1/20/50 | | 450,000 | 217,131 |
| | | | 478,301 |
| Finland – 0.1% |
| Nordea Bank Abp, 5.38%, 9/22/27(b) | | 200,000 | 202,099 |
| France – 0.3% |
| Altice France S.A., 5.12%, 1/15/29(b) | | 290,000 | 214,318 |
| BPCE S.A., (SOFR + 1.09%), 2.05%, 10/19/27(b)(g) | | 250,000 | 220,954 |
| | | Par (a) | Value |
| France (Continued) |
| Orange S.A., 9.00%, 3/01/31 | | $ 37,000 | $ 46,719 |
| TotalEnergies Capital International S.A., 2.99%, 6/29/41 | | 19,000 | 14,906 |
| | | | 496,897 |
| Gabon – 0.1% |
| Gabon Government International Bond, 6.63%, 2/06/31 | | 200,000 | 148,280 |
| Germany – 0.3% |
| Deutsche Bank A.G., (5Y USD Swap Rate + 2.55%), 4.88%, 12/01/32(g) | | 400,000 | 333,066 |
| ZF North America Capital, Inc., 6.87%, 4/14/28(b) | | 150,000 | 154,378 |
| | | | 487,444 |
| Guatemala – 0.2% |
| Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL, 5.25%, 4/27/29(b) | | 110,000 | 102,578 |
| Guatemala Government Bond, 3.70%, 10/07/33(b) | | 200,000 | 166,792 |
| | | | 269,370 |
| Hong Kong – 0.1% |
| Melco Resorts Finance Ltd., 5.38%, 12/04/29(b) | | 200,000 | 165,439 |
| Hungary – 2.4% |
| Hungary Government Bond, | | | |
| 3.00%, 6/26/24 | HUF | 370,590,000 | 979,426 |
| 2.50%, 10/24/24 | HUF | 222,540,000 | 571,539 |
| 1.00%, 11/26/25 | HUF | 39,680,000 | 93,033 |
| 3.00%, 10/27/27 | HUF | 62,670,000 | 144,739 |
| 3.25%, 10/22/31 | HUF | 59,400,000 | 127,587 |
| 4.75%, 11/24/32 | HUF | 301,530,000 | 716,334 |
| Hungary Government International Bond, | | | |
| 6.12%, 5/22/28(b) | | 610,000 | 631,771 |
| 5.25%, 6/16/29(b) | | 400,000 | 395,603 |
| 5.50%, 6/16/34 | | 200,000 | 196,383 |
| 6.75%, 9/25/52(b) | | 200,000 | 207,520 |
|
| Magyar Export-Import Bank Zrt., 6.13%, 12/04/27(b) | | 200,000 | 200,500 |
| | | | 4,264,435 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| India – 0.3% |
| Clean Renewable Power Mauritius Pte. Ltd., 4.25%, 3/25/27(b) | | $ 186,000 | $ 162,767 |
| India Airport Infra, 6.25%, 10/25/25 | | 250,000 | 238,536 |
| India Green Power Holdings, 4.00%, 2/22/27 | | 250,000 | 217,517 |
| | | | 618,820 |
| Indonesia – 3.4% |
| Freeport Indonesia PT, | | | |
| 5.32%, 4/14/32(b) | | 400,000 | 384,446 |
| 6.20%, 4/14/52 | | 200,000 | 184,134 |
| Indonesia Asahan Aluminium PT/Mineral Industri Indonesia Persero PT, | | | |
| 4.75%, 5/15/25(b) | | 400,000 | 395,320 |
| 5.45%, 5/15/30(b) | | 300,000 | 299,235 |
|
| Indonesia Government International Bond, 5.65%, 1/11/53 | | 200,000 | 210,413 |
| Indonesia Treasury Bond, | | | |
| 8.38%, 9/15/26 | IDR | 5,700,000,000 | 413,750 |
| 6.12%, 5/15/28 | IDR | 12,593,000,000 | 854,560 |
| 9.00%, 3/15/29 | IDR | 9,247,000,000 | 709,798 |
| 7.00%, 9/15/30 | IDR | 7,666,000,000 | 537,090 |
| 6.37%, 4/15/32 | IDR | 3,817,000,000 | 257,835 |
| 7.50%, 8/15/32 | IDR | 5,944,000,000 | 429,320 |
| 7.00%, 2/15/33 | IDR | 2,884,000,000 | 203,126 |
| 8.38%, 3/15/34 | IDR | 2,453,000,000 | 188,548 |
| 7.50%, 6/15/35 | IDR | 2,678,000,000 | 192,942 |
| Perusahaan Penerbit SBSN Indonesia III, | | | |
| 4.40%, 6/06/27(b) | | 200,000 | 200,431 |
| 2.55%, 6/09/31 | | 200,000 | 175,043 |
| 4.70%, 6/06/32(b) | | 200,000 | 203,021 |
|
| Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 4.88%, 7/17/49 | | 200,000 | 165,174 |
| | | | 6,004,186 |
| Ireland – 0.1% |
| Avolon Holdings Funding Ltd., | | | |
| 5.50%, 1/15/26(b) | | 35,000 | 34,352 |
| 2.13%, 2/21/26(b) | | 65,000 | 57,791 |
| 4.37%, 5/01/26(b) | | 41,000 | 38,722 |
| 2.53%, 11/18/27(b) | | 69,000 | 58,001 |
| | | | 188,866 |
| | | Par (a) | Value |
| Israel – 1.2% |
| Bank Leumi Le-Israel B.M., (5Y US Treasury CMT + 3.47%), 7.13%, 7/18/33(b)(g) | | $400,000 | $ 389,731 |
| Energean Israel Finance Ltd., | | | |
| 4.88%, 3/30/26(b) | | 270,000 | 249,813 |
| 5.38%, 3/30/28(b) | | 150,000 | 134,856 |
|
| Leviathan Bond Ltd., 6.75%, 6/30/30(b) | | 85,000 | 79,362 |
| Teva Pharmaceutical Finance Co. LLC, 6.15%, 2/01/36 | | 60,000 | 54,942 |
| Teva Pharmaceutical Finance Netherlands III B.V., | | | |
| 3.15%, 10/01/26 | | 500,000 | 451,791 |
| 7.87%, 9/15/29 | | 200,000 | 209,432 |
| 4.10%, 10/01/46 | | 787,000 | 524,449 |
| | | | 2,094,376 |
| Italy – 0.3% |
| Intesa Sanpaolo S.p.A., 5.71%, 1/15/26(b) | | 200,000 | 192,593 |
| Telecom Italia Capital S.A., | | | |
| 6.37%, 11/15/33 | | 70,000 | 62,578 |
| 6.00%, 9/30/34 | | 10,000 | 8,525 |
| 7.20%, 7/18/36 | | 59,000 | 53,317 |
|
| UniCredit S.p.A., (5Y US Treasury CMT + 4.75%), 5.46%, 6/30/35(b)(g) | | 200,000 | 170,407 |
| | | | 487,420 |
| Ivory Coast – 0.1% |
| Ivory Coast Government International Bond, 4.88%, 1/30/32(b) | EUR | 200,000 | 167,572 |
| Japan – 0.8% |
| Mitsubishi UFJ Financial Group, Inc., | | | |
| 1.41%, 7/17/25 | | 200,000 | 183,953 |
| (1Y US Treasury CMT + 1.63%), 5.44%, 2/22/34(g) | | 243,000 | 246,768 |
|
| Nissan Motor Co. Ltd., 4.35%, 9/17/27(b) | | 305,000 | 279,504 |
| SoftBank Group Corp., 4.62%, 7/06/28 | | 605,000 | 512,737 |
| Takeda Pharmaceutical Co. Ltd., 5.00%, 11/26/28 | | 200,000 | 203,654 |
| | | | 1,426,616 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Jordan – 0.2% |
| Jordan Government International Bond, | | | |
| 7.75%, 1/15/28(b) | | $ 200,000 | $ 203,540 |
| 7.50%, 1/13/29(b) | | 200,000 | 199,964 |
| | | | 403,504 |
| Kazakhstan – 0.7% |
| KazMunayGas National Co. JSC, | | | |
| 4.75%, 4/19/27(b) | | 400,000 | 379,599 |
| 5.75%, 4/19/47 | | 400,000 | 317,816 |
| Tengizchevroil Finance Co. International Ltd., | | | |
| 4.00%, 8/15/26 | | 200,000 | 178,250 |
| 3.25%, 8/15/30 | | 400,000 | 302,670 |
| | | | 1,178,335 |
| Luxembourg – 0.1% |
| Altice Financing S.A., 5.00%, 1/15/28(b) | | 240,000 | 194,329 |
| Macau – 0.4% |
| Sands China Ltd., | | | |
| 5.90%, 8/08/28 | | 200,000 | 194,456 |
| 3.35%, 3/08/29 | | 10,000 | 8,418 |
| 4.88%, 6/18/30 | | 400,000 | 363,737 |
|
| Wynn Macau Ltd., 5.13%, 12/15/29(b) | | 200,000 | 166,000 |
| | | | 732,611 |
| Malaysia – 2.0% |
| Malaysia Government Bond, | | | |
| 3.95%, 9/15/25 | MYR | 1,720,000 | 391,659 |
| 3.90%, 11/30/26 | MYR | 1,000,000 | 227,706 |
| 3.90%, 11/16/27 | MYR | 2,685,000 | 612,362 |
| 3.73%, 6/15/28 | MYR | 2,174,000 | 491,780 |
| 3.89%, 8/15/29 | MYR | 3,048,000 | 690,381 |
| 3.58%, 7/15/32 | MYR | 1,960,000 | 434,378 |
| 4.76%, 4/07/37 | MYR | 789,000 | 190,676 |
| 3.76%, 5/22/40 | MYR | 778,000 | 167,121 |
|
| Malaysia Government Investment Issue, 3.47%, 10/15/30 | MYR | 1,720,000 | 376,740 |
| | | | 3,582,803 |
| Mexico – 4.3% |
| Cemex S.A.B. de C.V., | | | |
| (5Y US Treasury CMT + 4.53%), 5.12%, 6/08/26(b)(f)(g) | | 200,000 | 177,190 |
| 3.88%, 7/11/31(b) | | 490,000 | 410,213 |
|
| Comision Federal de Electricidad, 4.69%, 5/15/29(b) | | 600,000 | 541,500 |
| | | Par (a) | Value |
| Mexico (Continued) |
|
| Electricidad Firme de Mexico Holdings S.A. de C.V., 4.90%, 11/20/26(b) | | $ 200,000 | $ 176,000 |
| Mexican Bonos, | | | |
| 10.00%, 12/05/24 | MXN | 8,900,900 | 489,533 |
| 5.00%, 3/06/25 | MXN | 11,492,000 | 582,005 |
| 5.75%, 3/05/26 | MXN | 13,387,900 | 675,074 |
| 8.50%, 5/31/29 | MXN | 15,406,300 | 844,071 |
| 7.75%, 5/29/31 | MXN | 13,088,200 | 683,652 |
| 10.00%, 11/20/36 | MXN | 1,346,500 | 81,669 |
| 8.50%, 11/18/38 | MXN | 13,050,000 | 689,191 |
| Mexico Government International Bond, | | | |
| 3.50%, 2/12/34 | | 200,000 | 171,766 |
| 6.35%, 2/09/35 | | 400,000 | 428,353 |
| 6.34%, 5/04/53 | | 200,000 | 206,211 |
| Petroleos Mexicanos, | | | |
| 6.88%, 8/04/26 | | 560,000 | 529,703 |
| 6.49%, 1/23/27 | | 550,000 | 492,568 |
| 5.35%, 2/12/28 | | 99,000 | 82,226 |
| 5.95%, 1/28/31 | | 307,000 | 226,897 |
| 6.62%, 6/15/35 | | 90,000 | 62,533 |
| | | | 7,550,355 |
| Morocco – 0.1% |
| Morocco Government International Bond, 5.95%, 3/08/28(b) | | 200,000 | 204,756 |
| Netherlands – 0.4% |
| Cooperatieve Rabobank U.A., (1Y US Treasury CMT + 1.75%), 4.65%, 8/22/28(b)(g) | | 250,000 | 243,940 |
| Shell International Finance B.V., | | | |
| 4.13%, 5/11/35 | | 23,000 | 22,104 |
| 2.88%, 11/26/41 | | 29,000 | 22,412 |
| 4.00%, 5/10/46 | | 55,000 | 48,145 |
| 3.00%, 11/26/51 | | 46,000 | 33,306 |
|
| UPC Broadband Finco B.V., 4.87%, 7/15/31(b) | | 220,000 | 189,847 |
| Ziggo Bond Co. B.V., 6.00%, 1/15/27(b) | | 150,000 | 142,308 |
| | | | 702,062 |
| Nigeria – 0.5% |
| IHS Netherlands Holdco B.V., 8.00%, 9/18/27 | | 200,000 | 176,370 |
| Nigeria Government International Bond, | | | |
| 7.37%, 9/28/33 | | 600,000 | 415,767 |
| 7.70%, 2/23/38(b) | | 390,000 | 257,400 |
| | | | 849,537 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Oman – 0.7% |
| Oman Government International Bond, | | | |
| 5.38%, 3/08/27 | | $ 200,000 | $ 199,853 |
| 6.00%, 8/01/29 | | 400,000 | 409,666 |
| 6.50%, 3/08/47 | | 500,000 | 470,038 |
| 6.75%, 1/17/48 | | 200,000 | 193,615 |
| | | | 1,273,172 |
| Pakistan – 0.1% |
| Pakistan Government International Bond, | | | |
| 6.00%, 4/08/26(b) | | 200,000 | 71,696 |
| 6.88%, 12/05/27 | | 335,000 | 120,037 |
| | | | 191,733 |
| Panama – 0.7% |
| Panama Government International Bond, | | | |
| 2.25%, 9/29/32 | | 200,000 | 154,401 |
| 6.40%, 2/14/35 | | 650,000 | 687,256 |
| 4.50%, 4/16/50 | | 400,000 | 311,998 |
| | | | 1,153,655 |
| Paraguay – 0.1% |
| Paraguay Government International Bond, 3.85%, 6/28/33 | | 300,000 | 261,685 |
| Peru – 0.8% |
| Peru Government Bond, 6.15%, 8/12/32 | PEN | 1,150,000 | 284,152 |
| Peruvian Government International Bond, | | | |
| 8.20%, 8/12/26 | | 254,000 | 71,540 |
| 2.78%, 1/23/31 | | 315,000 | 272,815 |
| 3.00%, 1/15/34 | | 465,000 | 388,716 |
| 6.90%, 8/12/37 | PEN | 1,134,000 | 287,705 |
|
| Volcan Cia Minera S.A.A., 4.38%, 2/11/26(b) | | 35,000 | 26,515 |
| | | | 1,331,443 |
| Philippines – 0.6% |
| Philippine Government International Bond, | | | |
| 3.56%, 9/29/32 | | 600,000 | 557,301 |
| 3.20%, 7/06/46 | | 350,000 | 263,656 |
| 5.95%, 10/13/47 | | 200,000 | 219,850 |
| | | | 1,040,807 |
| Poland – 1.6% |
| Republic of Poland Government Bond, | | | |
| 2.25%, 10/25/24 | PLN | 2,832,000 | 647,255 |
| 0.75%, 4/25/25 | PLN | 1,501,000 | 327,367 |
| 2.50%, 7/25/26 | PLN | 1,668,000 | 361,207 |
| | | Par (a) | Value |
| Poland (Continued) |
| Republic of Poland Government Bond, | | | |
| 2.50%, 7/25/27 | PLN | $ 981,000 | $ 206,298 |
| 2.75%, 10/25/29 | PLN | 1,005,000 | 202,005 |
| 1.25%, 10/25/30 | PLN | 2,102,000 | 368,038 |
| Republic of Poland Government International Bond, | | | |
| 4.88%, 10/04/33 | | 362,000 | 367,391 |
| 5.50%, 4/04/53 | | 333,000 | 344,704 |
| | | | 2,824,265 |
| Qatar – 0.6% |
| Qatar Energy, | | | |
| 2.25%, 7/12/31 | | 650,000 | 562,186 |
| 3.13%, 7/12/41(b) | | 275,000 | 216,219 |
| 3.30%, 7/12/51 | | 200,000 | 151,012 |
|
| Qatar Government International Bond, 4.40%, 4/16/50 | | 200,000 | 187,973 |
| | | | 1,117,390 |
| Romania – 1.1% |
| Romania Government Bond, | | | |
| 4.75%, 2/24/25 | RON | 360,000 | 78,199 |
| 3.25%, 6/24/26 | RON | 2,255,000 | 455,112 |
| 5.00%, 2/12/29 | RON | 470,000 | 94,429 |
| 6.70%, 2/25/32 | RON | 590,000 | 126,706 |
| Romanian Government International Bond, | | | |
| 6.63%, 2/17/28(b) | | 270,000 | 280,595 |
| 7.12%, 1/17/33(b) | | 480,000 | 513,096 |
| 6.00%, 5/25/34(b) | | 200,000 | 198,304 |
| 7.62%, 1/17/53(b) | | 220,000 | 236,940 |
| | | | 1,983,381 |
| Saudi Arabia – 1.3% |
| Gaci First Investment Co., | | | |
| 4.88%, 2/14/35 | | 200,000 | 199,264 |
| 5.12%, 2/14/53 | | 200,000 | 187,028 |
| 5.37%, 10/13/22(l) | | 800,000 | 757,039 |
|
| Greensaif Pipelines Bidco S.a.r.l., 6.51%, 2/23/42(b) | | 600,000 | 640,793 |
| Saudi Government International Bond, 5.00%, 1/18/53 | | 500,000 | 473,773 |
| | | | 2,257,897 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Senegal – 0.1% |
| Senegal Government International Bond, | | | |
| 5.38%, 6/08/37(b) | EUR | $ 100,000 | $ 70,300 |
| 6.75%, 3/13/48 | | 200,000 | 134,462 |
| | | | 204,762 |
| South Africa – 2.8% |
| Eskom Holdings SOC Ltd., 6.35%, 8/10/28 | | 300,000 | 283,200 |
| Republic of South Africa Government Bond, | | | |
| 10.50%, 12/21/26 | ZAR | 3,654,517 | 210,002 |
| 8.00%, 1/31/30 | ZAR | 10,695,956 | 524,118 |
| 7.00%, 2/28/31 | ZAR | 12,825,574 | 569,416 |
| 8.25%, 3/31/32 | ZAR | 12,846,227 | 599,456 |
| 8.87%, 2/28/35 | ZAR | 16,384,022 | 752,835 |
| 6.25%, 3/31/36 | ZAR | 3,350,467 | 120,268 |
| 8.50%, 1/31/37 | ZAR | 15,024,445 | 646,485 |
| 0.75%, 3/31/53 | ZAR | 8,900,046 | 474,110 |
|
| Republic of South Africa Government International Bond, 4.85%, 9/30/29 | | 400,000 | 358,600 |
| Sasol Financing USA LLC, 8.75%, 5/03/29(b) | | 200,000 | 200,606 |
| Transnet SOC Ltd., 8.25%, 2/06/28(b) | | 200,000 | 197,920 |
| | | | 4,937,016 |
| South Korea – 0.2% |
| POSCO, 5.75%, 1/17/28(b) | | 200,000 | 207,684 |
| SK Hynix, Inc., 6.38%, 1/17/28(b) | | 200,000 | 201,118 |
| | | | 408,802 |
| Spain – 0.0%(d) |
| Iberdrola International B.V., 5.81%, 3/15/25 | | 33,000 | 33,685 |
| Sri Lanka – 0.1% |
| Sri Lanka Government International Bond, 6.75%, 4/18/28 | | 400,000 | 131,229 |
| Switzerland – 0.5% |
| Credit Suisse Group A.G., (SOFR + 3.34%), 6.37%, 7/15/26(b)(g) | | 250,000 | 243,045 |
| UBS A.G., 5.13%, 5/15/24 | | 200,000 | 195,243 |
| UBS Group A.G., | | | |
| (5Y US Treasury CMT + 4.86%), 5.12%, 7/29/26(f)(g) | | 200,000 | 171,496 |
| (1Y US Treasury CMT + 1.75%), 4.75%, 5/12/28(b)(g) | | 200,000 | 192,863 |
| | | | 802,647 |
| | | Par (a) | Value |
| Tanzania, United Republic of – 0.1% |
| HTA Group Ltd., 7.00%, 12/18/25(b) | | $ 255,000 | $ 239,955 |
| Thailand – 1.8% |
| Thailand Government Bond, | | | |
| 0.75%, 6/17/24 | THB | 11,998,000 | 347,385 |
| 2.13%, 12/17/26 | THB | 9,883,000 | 290,233 |
| 2.87%, 12/17/28 | THB | 29,638,000 | 898,684 |
| 1.60%, 12/17/29 | THB | 5,919,000 | 166,030 |
| 2.00%, 12/17/31 | THB | 20,100,000 | 567,652 |
| 3.77%, 6/25/32 | THB | 2,316,000 | 75,052 |
| 3.35%, 6/17/33 | THB | 4,551,000 | 142,994 |
| 1.59%, 12/17/35 | THB | 19,080,000 | 495,401 |
| 3.30%, 6/17/38 | THB | 8,000,000 | 246,777 |
| | | | 3,230,208 |
| Tunisia – 0.1% |
| Tunisian Republic, 5.75%, 1/30/25 | | 200,000 | 104,001 |
| Turkey – 1.2% |
| Turkey Government International Bond, | | | |
| 9.87%, 1/15/28 | | 950,000 | 981,407 |
| 9.38%, 3/14/29 | | 200,000 | 201,741 |
| 9.12%, 7/13/30 | | 200,000 | 199,585 |
| 5.88%, 6/26/31 | | 200,000 | 166,300 |
| 9.38%, 1/19/33 | | 625,000 | 630,000 |
| | | | 2,179,033 |
| United Arab Emirates – 0.7% |
| Finance Department Government of Sharjah, 6.50%, 11/23/32(b) | | 200,000 | 207,100 |
| Galaxy Pipeline Assets Bidco Ltd., | | | |
| 2.16%, 3/31/34(b) | | 177,420 | 153,693 |
| 2.63%, 3/31/36(b) | | 550,000 | 453,199 |
| 2.94%, 9/30/40(b) | | 213,716 | 175,188 |
|
| UAE International Government Bond, 4.95%, 7/07/52 | | 200,000 | 202,355 |
| | | | 1,191,535 |
| United Kingdom – 1.0% |
| Astrazeneca Finance LLC, 4.90%, 3/03/30 | | 34,000 | 35,148 |
| BP Capital Markets PLC, 3.28%, 9/19/27 | | 63,000 | 61,016 |
| CK Hutchison International 23 Ltd., 4.88%, 4/21/33(b) | | 200,000 | 202,707 |
| Coca-Cola Europacific Partners PLC, 1.50%, 1/15/27(b) | | 200,000 | 178,947 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| United Kingdom (Continued) |
| HSBC Holdings PLC, | | | |
| (SOFR + 1.73%), 2.01%, 9/22/28(g) | | $200,000 | $ 174,071 |
| (SOFR + 2.39%), 6.25%, 3/09/34(g) | | 200,000 | 208,404 |
|
| Jaguar Land Rover Automotive PLC, 5.50%, 7/15/29(b) | | 200,000 | 165,570 |
| Lloyds Banking Group PLC, (1Y US Treasury CMT + 1.00%), 2.44%, 2/05/26(g) | | 200,000 | 189,100 |
| LSEGA Financing PLC, 1.38%, 4/06/26(b) | | 200,000 | 179,299 |
| Virgin Media Secured Finance PLC, 5.50%, 5/15/29(b) | | 250,000 | 229,553 |
| Vodafone Group PLC, | | | |
| 5.12%, 6/19/59 | | 41,000 | 37,294 |
| 5.75%, 2/10/63 | | 38,000 | 37,605 |
| (5Y US Treasury CMT + 3.07%), 5.13%, 6/04/81(g) | | 155,000 | 117,471 |
| | | | 1,816,185 |
| Uruguay – 0.3% |
| Uruguay Government International Bond, 5.10%, 6/18/50 | | 520,000 | 531,864 |
| Zambia – 0.4% |
| First Quantum Minerals Ltd., 6.88%, 3/01/26(b) | | 710,000 | 697,092 |
Total Foreign Issuer Bonds
(Cost $89,809,819) | 86,199,548 |
|
| Mortgage-Backed Securities – 0.7% |
| Commercial Mortgage-Backed Securities – 0.6% |
| Citigroup Commercial Mortgage Trust, Series 2014-GC21, Class D, 5.11%, 5/10/47(b)(m) | | 175,000 | 116,433 |
| Commercial Mortgage Trust, Series 2012-CR3, Class B, 3.92%, 10/15/45(b) | | 100,000 | 86,546 |
| GS Mortgage Securities Trust, | | | |
| Series 2011-GC5, Class D, 5.30%, 8/10/44(b)(m) | | 315,000 | 118,091 |
| Series 2011-GC5, Class C, 5.30%, 8/10/44(b)(m) | | 35,000 | 22,954 |
| | | Par (a) | Value |
Commercial Mortgage-Backed Securities
(Continued) |
| GS Mortgage Securities Trust, | | | |
| Series 2013-GC13, Class C, 4.21%, 7/10/46(b)(m) | | $320,000 | $ 230,044 |
| Series 2014-GC22, Class D, 4.84%, 6/10/47(b)(m) | | 50,000 | 37,569 |
|
| JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class C, 5.36%, 2/15/46(b) | | 100,000 | 93,570 |
| Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class B, 4.50%, 8/15/46(m) | | 110,000 | 74,540 |
| MSBAM Commercial Mortgage Securities Trust, Series 2012-CKSV, Class C, 4.42%, 10/15/30(b)(m) | | 100,000 | 67,923 |
| Wells Fargo Commercial Mortgage Trust, | | | |
| Series 2014-LC16, Class C, 4.46%, 8/15/50 | | 75,000 | 38,711 |
| Series 2016-C36, Class C, 4.26%, 11/15/59(m) | | 45,000 | 33,440 |
| WFRBS Commercial Mortgage Trust, | | | |
| Series 2011-C3, Class D, 5.42%, 3/15/44(b)(m) | | 56,647 | 17,702 |
| Series 2012-C10, Class C, 4.47%, 12/15/45(m) | | 120,000 | 86,407 |
| | | | 1,023,930 |
| Whole Loan – 0.1% |
| PRPM LLC, Series 2022-5, Class A1, (Step to 9.90% on 9/25/25), 6.90%, 9/27/27(b)(j) | | 120,955 | 119,478 |
Total Mortgage-Backed Securities
(Cost $1,682,536) | 1,143,408 |
|
| Term Loans – 0.2%(c) |
| Internet Media & Services – 0.1% |
| MH Sub I LLC, Term Loan, 4/25/28(n) | | 300,000 | 287,625 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| | | Par (a) | Value |
| Leisure Facilities & Services – 0.1% |
| Carnival Corp., 2021 Incremental Term B Advance, (1M USD LIBOR + 3.25%, 0.75% Floor), 8.27%, 10/18/28 | | $59,848 | $ 58,677 |
| Carnival Corp., Initial Advance, (1M USD LIBOR + 3.00%, 0.75% Floor), 8.02%, 6/30/25 | | 69,821 | 69,318 |
| | | | 127,995 |
Total Term Loans
(Cost $420,390) | 415,620 |
| | | | |
| U.S. Government Obligations – 0.9% |
| U.S. Treasury Bonds – 0.4% |
| 3.88%, 2/15/43 | | 449,000 | 453,771 |
| 4.00%, 11/15/52 | | 236,500 | 251,096 |
| | | | 704,867 |
| U.S. Treasury Notes – 0.5% |
| 3.87%, 3/31/25 | | 50,000 | 49,797 |
| 2.63%, 5/31/27 | | 855,000 | 823,606 |
| 3.63%, 3/31/30 | | 1,300 | 1,312 |
| 3.50%, 4/30/30 | | 7,600 | 7,613 |
| 3.50%, 2/15/33 | | 16,200 | 16,296 |
| | | | 898,624 |
Total U.S. Government Obligations
(Cost $1,597,908) | 1,603,491 |
| | | Number
of Shares | |
| Warrants – 0.0%(d) |
| Engineering & Construction – 0.0%(d) |
| Mcdermott International Ltd., Class A(o)* | | 3,868 | 1 |
| Mcdermott International Ltd., Class B(o)* | | 4,298 | 1 |
Total Warrants
(Cost $6,000) | 2 |
|
| Investment Companies – 0.3% |
| iShares iBoxx High Yield Corporate Bond ETF | | 7,750 | 584,040 |
Total Investment Companies
(Cost $567,406) | 584,040 |
| | | Par (a)/Number
of Shares | Value |
| Short-Term Investments – 4.4% |
| Corporate Bonds – 0.1% |
| Aviation Capital Group LLC, 3.87%, 5/01/23(b) | | $ 48,000 | $ 48,000 |
| Delta Air Lines Pass Through Trust, 4.25%, 7/30/23 | | 12,454 | 12,347 |
| Entergy Louisiana LLC, 4.05%, 9/01/23 | | 8,000 | 7,963 |
| Entergy Louisiana LLC, 0.62%, 11/17/23 | | 46,000 | 44,830 |
| Mid-America Apartments L.P., 4.30%, 10/15/23 | | 30,000 | 29,739 |
| Phillips 66, 0.90%, 2/15/24 | | 42,000 | 40,600 |
| QVC, Inc., 4.85%, 4/01/24 | | 5,000 | 4,290 |
| | | | 187,769 |
| Foreign Issuer Bonds – 0.7% |
| Brazil Letras do Tesouro Nacional, 0.00%, 1/01/24(e) | BRL | 2,155,000 | 397,253 |
| Danone S.A., 2.59%, 11/02/23(b) | | 200,000 | 197,304 |
| Fantasia Holdings Group Co. Ltd., 11.87%, 6/01/23 | | 200,000 | 19,104 |
| Romania Government Bond, 4.25%, 6/28/23 | RON | 1,685,000 | 375,563 |
| Romania Government Bond, 3.25%, 4/29/24 | | 1,325,000 | 287,936 |
| | | | 1,277,160 |
| Money Market Fund – 2.6% |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(p) | | 4,577,932 | 4,577,932 |
| U.S. Government Obligations – 0.2% |
| U.S. Treasury Notes, 0.13%, 9/15/23 | | 425,000 | 417,413 |
| U.S. Treasury Bills – 0.8% |
| U.S. Treasury Bill, 4.54%, 5/30/23(q) | | 1,310,000 | 1,305,660 |
Total Short-Term Investments
(Cost $7,834,349) | 7,765,934 |
Total Investments – 99.2%
(Cost $184,257,109) | 174,756,260 |
| Other Assets less Liabilities – 0.8%(r) | 1,495,383 |
| NET ASSETS – 100.0% | $176,251,643 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| 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. | | |
| (c) | Variable rate security. Rate as of April 30, 2023 is disclosed. | | |
| (d) | Amount rounds to less than 0.05%. | | |
| (e) | Zero coupon bond. | | |
| (f) | Perpetual bond. Maturity date represents next call date. | | |
| (g) | 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, 2023 is disclosed. | | |
| (h) | Issuer has defaulted on terms of debt obligation. | | |
| (i) | When-issued security. Coupon rate was not yet in effect at April 30, 2023. | | |
| (j) | Step coupon bond. Rate as of April 30, 2023 is disclosed. | | |
| (k) | Distributions from this security are made via payments in-kind (PIK) unless otherwise noted in the description. | | |
| (l) | Century bond maturing in 2122. | | |
| (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, 2023 is disclosed. | | |
| (n) | Position is unsettled. Contract rate was not determined at April 30, 2023 and does not take effect until settlement date. | | |
| (o) | Investment is valued using significant unobservable inputs (Level 3). | | |
| (p) | 7-day current yield as of April 30, 2023 is disclosed. | | |
| (q) | Discount rate at the time of purchase. | | |
| (r) | Includes appreciation/(depreciation) on forward foreign currency exchange and futures contracts. | | |
| * | Non-Income Producing Security | | |
| Abbreviations: | |
| 1Y | 1 Year |
| 1M | 1 Month |
| 3M | 3 Month |
| 5Y | 5 Year |
| BRL | Brazilian Real |
| CLO | Collateralized Loan Obligation |
| CLP | Chilean Peso |
| CME | Chicago Mercantile Exchange |
| CMT | Constant Maturity |
| CNY | Chinese Offshore Yuan |
| COP | Colombian Peso |
| CP | Commercial Paper |
| CVR | Contingent Value Right |
| CZK | Czech Republic Koruna |
| ETF | Exchange-Traded Fund |
| EUR | Euro |
| HUF | Hungarian Forint |
| IDR | Indonesian Rupiah |
| JSC | Joint Stock Company |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| MXN | Mexican Peso |
| MYR | Malaysian Ringgit |
| PEN | Peruvian Nuevo Sole |
| PLC | Public Limited Company |
| PLN | Polish Zloty |
| RON | Romania New Leu |
| S&P | Standards & Poor's |
| SOFR | United States Secured Overnight Financing Rate |
| THB | Thai Baht |
| USD | United States Dollar |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| Concentration by Currency (%)(a) | |
| U.S. Dollar | 75.6 |
| All other currencies less than 5% | 24.4 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Composition by Type (%)(a) | |
| Non-Government | 64.2 |
| Sovereign | 35.0 |
| Others (b) | 0.8 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| (b) Includes Other. | |
Futures Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| 2-Year U.S. Treasury Note | 22 | 6/30/2023 | USD | 4,535,609 | $ 37,457 |
| 5-Year U.S. Treasury Note | 10 | 6/30/2023 | USD | 1,097,422 | 24,062 |
| Total Long Contracts | | | | | $ 61,519 |
| Short Contracts | | | | | |
| 10-Year U.S. Treasury Note | (8) | 6/21/2023 | USD | 921,625 | $ (22,606) |
| U.S. Treasury Long Bond | (3) | 6/21/2023 | USD | 394,969 | (1,091) |
| Ultra 10-Year U.S. Treasury Note | (23) | 6/21/2023 | USD | 2,793,422 | (71,950) |
| Ultra U.S. Treasury Bond | (3) | 6/21/2023 | USD | 424,219 | 3,149 |
| Total Short Contracts | | | | | $(92,498) |
| | | | | | $(30,979) |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 6/06/23 | Polish Zloty | 2,464,785 | U.S. Dollars | 553,138 | BNP Paribas | $ 37,742 |
| 6/06/23 | Indonesian Rupiahs | 8,169,609,140 | U.S. Dollars | 522,621 | Bank of America | 33,983 |
| 6/06/23 | Indonesian Rupiahs | 2,231,073,200 | U.S. Dollars | 141,100 | JPMorgan Chase | 10,905 |
| 6/06/23 | Indonesian Rupiahs | 2,322,882,156 | U.S. Dollars | 148,228 | Barclays | 10,032 |
| 5/09/23 | Czech Republic Koruna | 4,335,189 | U.S. Dollars | 196,064 | Citibank | 6,860 |
| 6/20/23 | Euro | 201,000 | U.S. Dollars | 216,288 | Barclays | 5,859 |
| 5/30/23 | Peruvian Nuevo
Soles | 462,323 | U.S. Dollars | 121,600 | Citibank | 2,871 |
| 5/30/23 | Peruvian Nuevo
Soles | 336,512 | U.S. Dollars | 88,000 | Bank of America | 2,599 |
| 6/05/23 | Chilean Pesos | 198,490,500 | U.S. Dollars | 242,500 | Bank of America | 2,116 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 7/07/23 | Thai Baht | 18,586,373 | U.S. Dollars | 547,060 | JPMorgan Chase | $ 966 |
| 6/20/23 | Euro | 58,000 | U.S. Dollars | 63,559 | Standard Chartered Bank | 543 |
| 6/05/23 | Chilean Pesos | 24,702,870 | U.S. Dollars | 30,000 | BNP Paribas | 444 |
| Total Unrealized Appreciation | $114,920 |
| | | | | | | |
| 5/09/23 | U.S. Dollars | 5,319 | Czech Republic Koruna | 119,315 | BNP Paribas | $ (266) |
| 7/12/23 | Chinese Offshore Yuan | 501,607 | U.S. Dollars | 73,300 | BNP Paribas | (450) |
| 7/07/23 | U.S. Dollars | 124,700 | Thai Baht | 4,266,274 | Barclays | (1,093) |
| 6/20/23 | Euro | 287,000 | U.S. Dollars | 318,294 | Goldman Sachs | (1,100) |
| 7/12/23 | U.S. Dollars | 916,300 | Chinese Offshore Yuan | 6,324,394 | Goldman Sachs | (2,211) |
| 5/09/23 | U.S. Dollars | 40,398 | Czech Republic Koruna | 918,128 | Goldman Sachs | (2,578) |
| 5/09/23 | U.S. Dollars | 73,446 | Czech Republic Koruna | 1,655,156 | Barings | (4,029) |
| 5/09/23 | U.S. Dollars | 72,246 | Czech Republic Koruna | 1,642,589 | JPMorgan Chase | (4,641) |
| 7/12/23 | Chinese Offshore Yuan | 7,200,273 | U.S. Dollars | 2,137,687 | Barclays | (8,162) |
| 6/06/23 | U.S. Dollars | 289,710 | Indonesian Rupiahs | 4,378,093,521 | JPMorgan Chase | (8,574) |
| 7/12/23 | Chinese Offshore Yuan | 7,962,059 | U.S. Dollars | 1,165,019 | JPMorgan Chase | (8,664) |
| 7/10/23 | South Korean Won | 721,674,600 | U.S. Dollars | 550,700 | Bank of America | (8,908) |
| 7/10/23 | South Korean Won | 476,517,800 | U.S. Dollars | 367,400 | Citibank | (9,658) |
| 6/06/23 | U.S. Dollars | 558,412 | Indonesian Rupiahs | 8,345,470,975 | Standard Chartered Bank | (10,173) |
| 6/20/23 | U.S. Dollars | 582,167 | Euro | 546,000 | Goldman Sachs | (21,276) |
| Total Unrealized Depreciation | $ (91,783) |
| Net Unrealized Appreciation | $ 23,137 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Multisector Bond Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ — | $ 447,355 | $— | $ 447,355 |
| Common Stocks | 351,699 | — | — | 351,699 |
| Convertible Bonds | — | 2,377,379 | — | 2,377,379 |
| Convertible Preferred Stocks | 130,040 | — | — | 130,040 |
| Corporate Bonds | — | 73,737,744 | — | 73,737,744 |
| Foreign Issuer Bonds | — | 86,199,548 | — | 86,199,548 |
| Mortgage-Backed Securities | — | 1,143,408 | — | 1,143,408 |
| Term Loans | — | 415,620 | — | 415,620 |
| U.S. Government Obligations | — | 1,603,491 | — | 1,603,491 |
| Warrants | — | — | 2 | 2 |
| Investment Companies | 584,040 | — | — | 584,040 |
| Short-Term Investments | 4,577,932 | 3,188,002 | — | 7,765,934 |
| Total Investments | $5,643,711 | $169,112,547 | $ 2 | $174,756,260 |
| Morningstar Multisector Bond Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $ 64,668 | $ — | $— | $ 64,668 |
| Forward Foreign Currency Exchange Contracts | — | 114,920 | — | 114,920 |
| Total Assets - Derivative Financial Instruments | $ 64,668 | $114,920 | $— | $ 179,588 |
| Liabilities: | | | | |
| Futures Contracts | $(95,647) | $ — | $— | $ (95,647) |
| Forward Foreign Currency Exchange Contracts | — | (91,783) | — | (91,783) |
| Total Liabilities - Derivative Financial Instruments | $(95,647) | $ (91,783) | $— | $(187,430) |
| Net Derivative Financial Instruments | $(30,979) | $ 23,137 | $— | $ (7,842) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Common Stocks – 51.9% |
| Advertising & Marketing – 1.2% |
| Dentsu Group, Inc. (Japan) | | 1,900 | $ 68,466 |
| Omnicom Group, Inc. | | 28,901 | 2,617,564 |
| WPP PLC (United Kingdom) | | 8,875 | 103,433 |
| | | | 2,789,463 |
| Aerospace & Defense – 0.1% |
| BAE Systems PLC (United Kingdom) | | 17,137 | 218,325 |
| Apparel & Textile Products – 1.1% |
| Tapestry, Inc. | | 63,858 | 2,606,045 |
| Asset Management – 0.4% |
| Investor AB, Class B (Sweden) | | 8,608 | 184,927 |
| Julius Baer Group Ltd. (Switzerland) | | 1,733 | 124,180 |
| Schroders PLC (United Kingdom) | | 6,224 | 38,118 |
| St. James's Place PLC (United Kingdom) | | 12,321 | 187,379 |
| UBS Group A.G. (Switzerland)(a) | | 16,742 | 340,743 |
| | | | 875,347 |
| Automotive – 0.8% |
| Bridgestone Corp. (Japan) | | 6,700 | 269,061 |
| Denso Corp. (Japan) | | 2,400 | 144,873 |
| Honda Motor Co. Ltd. (Japan) | | 14,500 | 384,584 |
| Nissan Motor Co. Ltd. (Japan) | | 37,400 | 136,377 |
| Stanley Electric Co. Ltd. (Japan) | | 6,400 | 144,370 |
| Sumitomo Electric Industries Ltd. (Japan) | | 5,700 | 72,745 |
| Toyota Motor Corp. (Japan) | | 55,200 | 757,898 |
| | | | 1,909,908 |
| Banking – 2.5% |
| ABN AMRO Bank N.V. - CVA (Netherlands)(b) | | 4,286 | 68,693 |
| Banco Bilbao Vizcaya Argentaria S.A. (Spain) | | 27,643 | 202,374 |
| Banco Santander S.A. (Spain) | | 81,000 | 284,559 |
| Barclays PLC (United Kingdom) | | 145,383 | 292,861 |
| BNP Paribas S.A. (France) | | 6,545 | 422,895 |
| CaixaBank S.A. (Spain) | | 17,759 | 65,737 |
| DNB Bank ASA (Norway) | | 3,714 | 65,330 |
| Erste Group Bank A.G. (Austria) | | 2,487 | 90,425 |
| | | Number
of Shares | Value |
| Banking (Continued) |
| HSBC Holdings PLC (United Kingdom) | | 177,667 | $1,280,508 |
| ING Groep N.V. (Netherlands) | | 23,331 | 289,358 |
| Intesa Sanpaolo S.p.A. (Italy) | | 72,654 | 191,036 |
| KBC Group N.V. (Belgium) | | 1,006 | 71,917 |
| Lloyds Banking Group PLC (United Kingdom) | | 832,675 | 505,868 |
| Mitsubishi UFJ Financial Group, Inc. (Japan) | | 30,800 | 192,794 |
| Mizuho Financial Group, Inc. (Japan) | | 4,900 | 71,030 |
| NatWest Group PLC (United Kingdom) | | 65,878 | 217,010 |
| Nordea Bank Abp (Finland) | | 12,130 | 134,755 |
| Resona Holdings, Inc. (Japan) | | 12,500 | 62,300 |
| Skandinaviska Enskilda Banken AB, Class A (Sweden)(c) | | 7,898 | 89,806 |
| Standard Chartered PLC (United Kingdom) | | 29,478 | 233,558 |
| Sumitomo Mitsui Financial Group, Inc. (Japan) | | 9,000 | 367,863 |
| Sumitomo Mitsui Trust Holdings, Inc. (Japan) | | 5,600 | 201,867 |
| Svenska Handelsbanken AB, Class A (Sweden) | | 10,900 | 96,354 |
| Swedbank AB, Class A (Sweden) | | 5,545 | 96,352 |
| UniCredit S.p.A. (Italy) | | 5,753 | 113,998 |
| | | | 5,709,248 |
| Beverages – 0.9% |
| Anheuser-Busch InBev S.A./N.V. (Belgium) | | 19,554 | 1,271,390 |
| Asahi Group Holdings Ltd. (Japan) | | 2,100 | 81,132 |
| Diageo PLC (United Kingdom) | | 11,931 | 544,246 |
| Kirin Holdings Co. Ltd. (Japan) | | 12,400 | 201,442 |
| | | | 2,098,210 |
| Biotechnology & Pharmaceuticals – 0.9% |
| Astellas Pharma, Inc. (Japan) | | 9,000 | 135,581 |
| AstraZeneca PLC (United Kingdom) | | 6,959 | 1,024,107 |
| Chugai Pharmaceutical Co. Ltd. (Japan) | | 7,700 | 198,704 |
| Daiichi Sankyo Co. Ltd. (Japan) | | 3,800 | 130,395 |
| GSK PLC | | 20,986 | 378,444 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Biotechnology & Pharmaceuticals (Continued) |
| Ono Pharmaceutical Co. Ltd. (Japan) | | 3,300 | $ 66,446 |
| Takeda Pharmaceutical Co. Ltd. (Japan) | | 8,200 | 271,905 |
| | | | 2,205,582 |
| Cable & Satellite – 0.3% |
| Comcast Corp., Class A | | 18,673 | 772,502 |
| Chemicals – 0.2% |
| Nitto Denko Corp. (Japan) | | 2,000 | 129,297 |
| Shin-Etsu Chemical Co. Ltd. (Japan) | | 10,000 | 285,358 |
| Toray Industries, Inc. (Japan) | | 11,800 | 66,874 |
| | | | 481,529 |
| Commercial Support Services – 2.8% |
| Compass Group PLC (United Kingdom) | | 8,327 | 219,674 |
| H&R Block, Inc. | | 95,988 | 3,254,953 |
| Recruit Holdings Co. Ltd. (Japan) | | 9,000 | 252,483 |
| Rentokil Initial PLC (United Kingdom) | | 14,583 | 116,099 |
| Secom Co. Ltd. (Japan) | | 42,194 | 2,701,850 |
| | | | 6,545,059 |
| Diversified Industrials – 0.1% |
| Hitachi Ltd. (Japan) | | 3,000 | 165,944 |
| E-Commerce Discretionary – 3.4% |
| Alibaba Group Holding Ltd. (China)* | | 231,600 | 2,448,852 |
| eBay, Inc. | | 73,015 | 3,390,087 |
| JD.com, Inc., Class A (China) | | 73,350 | 1,309,139 |
| Pinduoduo, Inc. ADR (China)* | | 9,605 | 654,581 |
| | | | 7,802,659 |
| Electric Utilities – 1.3% |
| Chubu Electric Power Co., Inc. (Japan) | | 6,500 | 72,491 |
| National Grid PLC (United Kingdom) | | 198,266 | 2,842,723 |
| SSE PLC (United Kingdom) | | 4,472 | 103,183 |
| | | | 3,018,397 |
| Electrical Equipment – 0.3% |
| Daikin Industries Ltd. (Japan) | | 1,100 | 199,794 |
| | | Number
of Shares | Value |
| Electrical Equipment (Continued) |
| Mitsubishi Electric Corp. (Japan) | | 22,300 | $ 276,495 |
| Toshiba Corp. (Japan) | | 4,088 | 131,715 |
| | | | 608,004 |
| Engineering & Construction – 1.7% |
| Ferrovial S.A. (Spain) | | 82,866 | 2,598,132 |
| Vinci S.A. (France) | | 10,604 | 1,311,621 |
| | | | 3,909,753 |
| Entertainment Content – 0.8% |
| Activision Blizzard, Inc. | | 1,828 | 142,054 |
| Electronic Arts, Inc. | | 1,567 | 199,448 |
| NetEase, Inc. (China) | | 36,900 | 656,908 |
| Nexon Co. Ltd. (Japan) | | 3,200 | 72,289 |
| Square Enix Holdings Co. Ltd. (Japan) | | 1,400 | 68,893 |
| Walt Disney (The) Co.* | | 7,140 | 731,850 |
| | | | 1,871,442 |
| Food – 0.1% |
| Associated British Foods PLC (United Kingdom) | | 4,433 | 109,223 |
| MEIJI Holdings Co. Ltd. (Japan) | | 6,600 | 159,256 |
| Yamazaki Baking Co. Ltd. (Japan) | | 5,586 | 74,848 |
| | | | 343,327 |
| Gas & Water Utilities – 1.0% |
| Osaka Gas Co. Ltd. (Japan) | | 3,700 | 61,202 |
| Severn Trent PLC (United Kingdom) | | 2,212 | 81,476 |
| United Utilities Group PLC (United Kingdom)(c) | | 152,124 | 2,066,525 |
| | | | 2,209,203 |
| Health Care Facilities & Services – 5.0% |
| Alfresa Holdings Corp. (Japan) | | 5,400 | 78,189 |
| CVS Health Corp. | | 53,557 | 3,926,263 |
| DaVita, Inc.* | | 14,984 | 1,353,954 |
| Fresenius Medical Care A.G. & Co. KGaA (Germany) | | 88,273 | 4,283,356 |
| Pediatrix Medical Group, Inc.* | | 143,690 | 2,059,078 |
| | | | 11,700,840 |
| Home Construction – 0.1% |
| Berkeley Group Holdings (The) PLC (United Kingdom) | | 1,971 | 110,302 |
| Sekisui House Ltd. (Japan) | | 2,961 | 60,874 |
| | | | 171,176 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Household Products – 0.6% |
| Haleon PLC | | 31,017 | $ 136,373 |
| Kao Corp. (Japan) | | 5,800 | 234,369 |
| Reckitt Benckiser Group PLC (United Kingdom) | | 4,184 | 338,108 |
| Unilever PLC (United Kingdom) | | 11,710 | 652,038 |
| | | | 1,360,888 |
| Industrial Support Services – 0.0%(d) |
| Ashtead Group PLC (United Kingdom) | | 1,409 | 81,237 |
| Institutional Financial Services – 0.4% |
| Credit Suisse Group A.G. (Switzerland)(a)(c) | | 11,761 | 10,583 |
| Daiwa Securities Group, Inc. (Japan) | | 14,300 | 66,419 |
| Deutsche Boerse A.G. (Germany) | | 1,053 | 200,816 |
| Japan Exchange Group, Inc. (Japan) | | 4,600 | 74,694 |
| London Stock Exchange Group PLC (United Kingdom) | | 4,398 | 461,761 |
| | | | 814,273 |
| Insurance – 1.5% |
| Allianz S.E. (Germany)(a) | | 2,215 | 556,202 |
| Assicurazioni Generali S.p.A. (Italy) | | 3,888 | 80,980 |
| Aviva PLC (United Kingdom) | | 32,660 | 173,893 |
| AXA S.A. (France) | | 10,786 | 352,057 |
| Dai-ichi Life Holdings, Inc. (Japan) | | 5,700 | 106,024 |
| Hannover Rueck S.E. (Germany) | | 373 | 79,695 |
| Legal & General Group PLC (United Kingdom) | | 67,210 | 198,305 |
| MS&AD Insurance Group Holdings, Inc. (Japan) | | 4,100 | 134,571 |
| Muenchener Rueckversicherungs-Gesellschaft A.G. (Germany)(a) | | 590 | 221,738 |
| NN Group N.V. (Netherlands) | | 2,196 | 81,889 |
| Prudential PLC (Hong Kong) | | 28,779 | 440,349 |
| Sampo OYJ, Class A (Finland) | | 1,457 | 73,892 |
| Sompo Holdings, Inc. (Japan) | | 1,600 | 66,767 |
| Swiss Life Holding A.G. (Switzerland)(a) | | 188 | 124,091 |
| Swiss Re A.G. | | 1,462 | 147,229 |
| | | Number
of Shares | Value |
| Insurance (Continued) |
| Tokio Marine Holdings, Inc. (Japan) | | 6,700 | $ 134,717 |
| Tryg A/S (Denmark) | | 2,537 | 59,957 |
| Zurich Insurance Group A.G. (Switzerland) | | 752 | 364,684 |
| | | | 3,397,040 |
| Internet Media & Services – 6.1% |
| Alphabet, Inc., Class A* | | 32,071 | 3,442,501 |
| Alphabet, Inc., Class C* | | 18,053 | 1,953,696 |
| Baidu, Inc., Class A (China)* | | 82,950 | 1,248,556 |
| Meituan, Class B (China)(b)* | | 73,970 | 1,264,181 |
| Meta Platforms, Inc., Class A* | | 6,802 | 1,634,657 |
| Netflix, Inc.* | | 734 | 242,169 |
| Tencent Holdings Ltd. (China) | | 57,500 | 2,553,927 |
| Tencent Music Entertainment Group ADR (China)* | | 79,755 | 590,984 |
| Trip.com Group Ltd. (China)* | | 35,500 | 1,262,200 |
| | | | 14,192,871 |
| Leisure Facilities & Services – 1.4% |
| Entain PLC (United Kingdom) | | 4,579 | 83,435 |
| InterContinental Hotels Group PLC (United Kingdom) | | 1,596 | 109,736 |
| International Game Technology PLC | | 112,769 | 3,173,319 |
| | | | 3,366,490 |
| Leisure Products – 0.1% |
| Shimano, Inc. (Japan) | | 800 | 123,722 |
| Machinery – 0.4% |
| FANUC Corp. (Japan) | | 7,000 | 236,398 |
| Keyence Corp. (Japan) | | 500 | 225,478 |
| Komatsu Ltd. (Japan) | | 5,300 | 131,810 |
| Nabtesco Corp. (Japan) | | 3,038 | 73,227 |
| SMC Corp. (Japan) | | 400 | 199,498 |
| Smiths Group PLC (United Kingdom) | | 3,904 | 82,549 |
| Sumitomo Heavy Industries Ltd. (Japan) | | 2,800 | 67,654 |
| | | | 1,016,614 |
| Medical Equipment & Devices – 2.7% |
| DENTSPLY SIRONA, Inc. | | 30,725 | 1,288,299 |
| FUJIFILM Holdings Corp. (Japan) | | 2,600 | 135,512 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Medical Equipment & Devices (Continued) |
| Hoya Corp. (Japan) | | 1,300 | $ 136,312 |
| Medtronic PLC | | 28,295 | 2,573,430 |
| Olympus Corp. (Japan) | | 6,700 | 117,293 |
| Smith & Nephew PLC (United Kingdom) | | 127,253 | 2,095,827 |
| | | | 6,346,673 |
| Metals & Mining – 0.5% |
| Anglo American PLC (South Africa) | | 6,246 | 192,465 |
| Cameco Corp. (Canada) | | 2,987 | 82,124 |
| Glencore PLC (Australia) | | 54,492 | 321,646 |
| Rio Tinto PLC (Australia) | | 6,465 | 410,996 |
| Sumitomo Metal Mining Co. Ltd. (Japan) | | 2,000 | 73,818 |
| | | | 1,081,049 |
| Oil & Gas Producers – 3.8% |
| BP PLC (United Kingdom) | | 226,311 | 1,518,319 |
| Canadian Natural Resources Ltd. (Canada) | | 6,686 | 407,422 |
| Cenovus Energy, Inc. (Canada) | | 6,563 | 110,154 |
| Chevron Corp. | | 1,294 | 218,143 |
| China Petroleum & Chemical Corp., Class H (China) | | 302,250 | 198,099 |
| Ecopetrol S.A. ADR (Colombia)(c) | | 3,505 | 34,069 |
| ENEOS Holdings, Inc. (Japan) | | 17,600 | 62,612 |
| Eni S.p.A. (Italy) | | 20,193 | 305,064 |
| Equinor ASA (Norway) | | 7,725 | 222,411 |
| Exxon Mobil Corp. | | 4,343 | 513,951 |
| Galp Energia SGPS S.A. (Portugal) | | 5,533 | 66,859 |
| Gazprom PJSC (Russia)(e) | | 100,532 | — |
| Imperial Oil Ltd. (Canada) | | 1,136 | 57,905 |
| Inpex Corp. (Japan) | | 18,200 | 199,164 |
| LUKOIL PJSC (Russia)(e) | | 3,271 | — |
| Neste OYJ (Finland) | | 4,516 | 218,865 |
| OMV A.G. (Austria) | | 1,528 | 72,309 |
| Petroleo Brasileiro S.A. ADR (Brazil) | | 33,796 | 358,914 |
| Repsol S.A. (Spain) | | 8,920 | 131,032 |
| Rosneft Oil Co. PJSC (Russia)(e) | | 48,304 | — |
| Santos Ltd. (Australia) | | 15,299 | 72,473 |
| Shell PLC (Netherlands) | | 83,241 | 2,557,844 |
| Suncor Energy, Inc. (Canada) | | 8,511 | 266,477 |
| | | Number
of Shares | Value |
| Oil & Gas Producers (Continued) |
| TotalEnergies S.E. (France) | | 17,121 | $1,094,031 |
| Woodside Energy Group Ltd. (Australia) | | 6,445 | 146,239 |
| | | | 8,832,356 |
| Publishing & Broadcasting – 0.0%(d) |
| Informa PLC (United Kingdom) | | 8,357 | 75,974 |
| Real Estate Owners & Developers – 0.1% |
| Mitsubishi Estate Co. Ltd. (Japan) | | 16,700 | 205,816 |
| Mitsui Fudosan Co. Ltd. (Japan) | | 3,500 | 69,517 |
| Sumitomo Realty & Development Co. Ltd. (Japan) | | 2,900 | 67,713 |
| | | | 343,046 |
| Retail - Consumer Staples – 0.4% |
| Alibaba Health Information Technology Ltd. (China)(c)* | | 840,000 | 605,480 |
| Seven & i Holdings Co. Ltd. (Japan) | | 3,000 | 135,952 |
| Tesco PLC (United Kingdom) | | 54,921 | 194,171 |
| | | | 935,603 |
| Retail - Discretionary – 0.1% |
| Fast Retailing Co. Ltd. (Japan) | | 700 | 165,761 |
| Kingfisher PLC (United Kingdom) | | 23,055 | 74,724 |
| | | | 240,485 |
| Semiconductors – 0.1% |
| Tokyo Electron Ltd. (Japan) | | 1,700 | 194,659 |
| Specialty Finance – 0.0%(d) |
| ORIX Corp. (Japan) | | 5,900 | 100,374 |
| Steel – 0.1% |
| Mitsui & Co. Ltd. (Japan) | | 7,800 | 243,506 |
| Technology Hardware – 0.8% |
| Casio Computer Co. Ltd. (Japan) | | 6,300 | 59,943 |
| Kyocera Corp. (Japan) | | 2,300 | 120,721 |
| Murata Manufacturing Co. Ltd. (Japan) | | 4,600 | 260,987 |
| Nidec Corp. (Japan) | | 2,400 | 118,757 |
| Nintendo Co. Ltd. (Japan) | | 8,100 | 342,447 |
| Panasonic Holdings Corp. (Japan) | | 18,200 | 171,422 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| | | Number
of Shares | Value |
| Technology Hardware (Continued) |
| Sony Group Corp. (Japan) | | 5,400 | $ 488,558 |
| TDK Corp. (Japan) | | 5,900 | 202,836 |
| | | | 1,765,671 |
| Technology Services – 3.6% |
| Cognizant Technology Solutions Corp., Class A | | 66,085 | 3,945,936 |
| Experian PLC | | 4,723 | 167,217 |
| Fiserv, Inc.* | | 10,636 | 1,298,868 |
| RELX PLC (United Kingdom) | | 8,967 | 298,769 |
| Visa, Inc., Class A(c) | | 11,288 | 2,627,056 |
| | | | 8,337,846 |
| Telecommunications – 1.9% |
| BT Group PLC (United Kingdom) | | 44,846 | 89,571 |
| KDDI Corp. (Japan) | | 9,900 | 309,059 |
| Nippon Telegraph & Telephone Corp. (Japan) | | 5,400 | 164,775 |
| SES S.A. (France) | | 371,778 | 2,306,003 |
| Softbank Corp. (Japan) | | 5,900 | 66,427 |
| SoftBank Group Corp. (Japan) | | 7,600 | 285,018 |
| T-Mobile U.S., Inc.* | | 2,204 | 317,156 |
| Verizon Communications, Inc. | | 17,475 | 678,554 |
| Vodafone Group PLC (United Kingdom) | | 155,548 | 186,833 |
| | | | 4,403,396 |
| Tobacco & Cannabis – 0.2% |
| British American Tobacco PLC (United Kingdom) | | 12,330 | 455,541 |
| Japan Tobacco, Inc. (Japan) | | 3,600 | 77,461 |
| | | | 533,002 |
| Transportation & Logistics – 1.0% |
| East Japan Railway Co. (Japan) | | 4,600 | 263,220 |
| Norfolk Southern Corp. | | 9,740 | 1,977,512 |
| Poste Italiane S.p.A. (Italy)(b) | | 7,077 | 73,650 |
| | | | 2,314,382 |
| Transportation Equipment – 0.9% |
| Knorr-Bremse A.G. (Germany) | | 28,706 | 2,012,052 |
| Wholesale - Consumer Staples – 0.2% |
| ITOCHU Corp. (Japan) | | 9,100 | 301,891 |
| Mitsubishi Corp. (Japan) | | 6,500 | 240,993 |
| | | | 542,884 |
| | | Number
of Shares | Value |
| Wholesale - Discretionary – 0.0%(d) |
| Bunzl PLC (United Kingdom) | | 2,646 | $ 105,329 |
Total Common Stocks
(Cost $114,100,436) | 120,773,385 |
|
| Investment Companies – 39.2% |
| Franklin FTSE Brazil ETF(c) | | 267,926 | 4,661,618 |
| Invesco KBW Bank ETF(c) | | 233,084 | 9,724,264 |
| iShares Core DAX UCITS ETF DE (Germany)* | EUR | 56,046 | 8,274,215 |
| iShares MSCI South Korea ETF(c) | | 107,647 | 6,530,944 |
| Schwab Fundamental Emerging Markets Large Company Index ETF | | 483,255 | 12,753,099 |
| Vanguard Consumer Staples ETF | | 33,750 | 6,767,550 |
| Vanguard Health Care ETF(c) | | 21,873 | 5,375,071 |
| Vanguard Total Stock Market ETF(c) | | 180,530 | 37,243,339 |
Total Investment Companies
(Cost $92,115,363) | 91,330,100 |
|
| Short-Term Investments – 8.5% |
| Money Market Funds – 8.5% |
| Northern Institutional Funds - Liquid Assets Portfolio, 4.85%(f)(g) | | 6,780,470 | 6,780,470 |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(f) | | 13,069,952 | 13,069,952 |
Total Short-Term Investments
(Cost $19,850,422) | 19,850,422 |
Total Investments – 99.6%
(Cost $226,066,221) | 231,953,907 |
| Other Assets less Liabilities – 0.4%(h) | 1,000,710 |
| NET ASSETS – 100.0% | $232,954,617 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| Percentages shown are based on Net Assets. |
| All securities are United States companies, unless noted otherwise in parentheses. |
| (a) | Security sold outside United States without registration under the Securities Act of 1933. | | |
| (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. | | |
| (c) | Security either partially or fully on loan (See Note 7). | | |
| (d) | Amount rounds to less than 0.05%. | | |
| (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, 2023 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 |
| CVA | Credit Valuation Adjustment |
| DAX | Deutscher Aktienindex |
| ETF | Exchange-Traded Fund |
| EUR | Euro |
| FTSE | Financial Times Stock Exchange |
| MSCI | Morgan Stanley Capital International |
| PJSC | Public Joint Stock Company |
| PLC | Public Limited Company |
| UCITS | Undertakings for Collective Investment in Transferable Securities |
| Concentration by Currency (%)(a) | |
| U.S. Dollar | 57.0 |
| Euro | 11.8 |
| British Pound | 9.5 |
| Japanese Yen | 6.9 |
| All other currencies less than 5% | 14.8 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. | |
| Country Diversification (%)(a) | |
| United States | 56.2 |
| United Kingdom | 7.5 |
| Japan | 6.9 |
| Germany | 6.7 |
| China | 5.5 |
| All other countries less than 5%(b) | 17.2 |
| Total | 100.0 |
| (a) Percentages shown are based on Net Assets. |
| (b) Includes Other. |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 5/31/23 | U.S. Dollars | 71,783 | Norwegian Kroner | 748,695 | State Street | $ 1,412 |
| Total Unrealized Appreciation | $ 1,412 |
| | | | | | | |
| 5/31/23 | U.S. Dollars | 59,562 | Danish Kroner | 403,525 | State Street | $ (219) |
| 5/31/23 | U.S. Dollars | 592,229 | Swedish Kronor | 6,079,202 | State Street | (1,599) |
| 5/31/23 | U.S. Dollars | 1,151,560 | Swiss Francs | 1,027,804 | State Street | (2,759) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Global Opportunistic Equity Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 5/31/23 | U.S. Dollars | 3,571,319 | Euro | 3,248,783 | State Street | $ (15,493) |
| 5/31/23 | U.S. Dollars | 2,118,296 | British Pounds | 1,701,510 | State Street | (21,652) |
| Total Unrealized Depreciation | $ (41,722) |
| Net Unrealized Depreciation | $(40,310) |
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ 49,501,675 | $71,271,710 | $—* | $120,773,385 |
| Investment Companies | 91,330,100 | — | — | 91,330,100 |
| Short-Term Investments | 19,850,422 | — | — | 19,850,422 |
| Total Investments | $160,682,197 | $71,271,710 | $ — | $231,953,907 |
| *Includes securities determined to have no value as of April 30, 2023. |
| Morningstar Global Opportunistic Equity Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Forward Foreign Currency Exchange Contracts | $— | $ 1,412 | $— | $ 1,412 |
| Total Assets - Derivative Financial Instruments | $— | $ 1,412 | $— | $ 1,412 |
| Liabilities: | | | | |
| Forward Foreign Currency Exchange Contracts | $— | $(41,722) | $— | $(41,722) |
| Total Liabilities - Derivative Financial Instruments | $— | $(41,722) | $— | $(41,722) |
| Net Derivative Financial Instruments | $— | $(40,310) | $— | $(40,310) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Long Positions – 101.9% |
| Asset-Backed Securities – 0.9% |
| Automobile – 0.4% |
| ACC Auto Trust, Series 2021-A, Class A, 1.08%, 4/15/27(b) | | $ 61,645 | $ 61,302 |
| Carvana Auto Receivables Trust, Series 2021-N2, Class B, 0.75%, 3/10/28 | | 55,064 | 51,132 |
| Drive Auto Receivables Trust, Series 2021-3, Class C, 1.47%, 1/15/27 | | 600,000 | 572,739 |
| JPMorgan Chase Bank NA - CACLN, | | | |
| Series 2021-2, Class B, 0.89%, 12/26/28(b) | | 123,251 | 118,738 |
| Series 2021-3, Class B, 0.76%, 2/26/29(b) | | 303,725 | 287,826 |
|
| Santander Bank NA - SBCLN, Series 2021-1A, Class B, 1.83%, 12/15/31(b) | | 103,215 | 99,051 |
| | | | 1,190,788 |
| Other – 0.5% |
| Affirm Asset Securitization Trust, Series 2023-A, Class 1A, 6.61%, 1/18/28(b) | | 474,000 | 473,873 |
| Avant Loans Funding Trust, Series 2021-REV1, Class A, 1.21%, 7/15/30(b) | | 270,000 | 262,999 |
| Conn's Receivables Funding LLC, Series 2022-A, Class A, 5.87%, 12/15/26(b) | | 122,013 | 121,931 |
| Upstart Securitization Trust, | | | |
| Series 2021-2, Class A, 0.91%, 6/20/31(b) | | 52,131 | 51,772 |
| Series 2021-3, Class A, 0.83%, 7/20/31(b) | | 128,872 | 126,982 |
| Series 2021-4, Class A, 0.84%, 9/20/31(b) | | 171,823 | 167,789 |
| Series 2021-5, Class A, 1.31%, 11/20/31(b) | | 200,316 | 195,096 |
| | | | 1,400,442 |
Total Asset-Backed Securities
(Cost $2,633,551) | 2,591,230 |
| | | Number
of Shares | Value |
| Common Stocks – 22.7% |
| Aerospace & Defense – 1.0% |
| Aerojet Rocketdyne Holdings, Inc.(c)* | | 46,570 | $2,627,013 |
| General Dynamics Corp. | | 241 | 52,620 |
| Huntington Ingalls Industries, Inc. | | 265 | 53,440 |
| Lockheed Martin Corp. | | 113 | 52,483 |
| | | | 2,785,556 |
| Asset Management – 0.6% |
| Focus Financial Partners, Inc. Class A(c)* | | 29,851 | 1,550,461 |
| Banking – 0.9% |
| Credicorp Ltd. (Peru) | | 339 | 45,928 |
| First Horizon Corp.(d) | | 140,686 | 2,469,039 |
| First Interstate BancSystem, Inc., Class A | | 1,094 | 27,995 |
| Prosperity Bancshares, Inc. | | 522 | 32,688 |
| United Bankshares, Inc. | | 109 | 3,611 |
| | | | 2,579,261 |
| Beverages – 0.0%(e) |
| Keurig Dr. Pepper, Inc. | | 1,560 | 51,012 |
| Biotechnology & Pharmaceuticals – 3.2% |
| AbbVie, Inc. | | 345 | 52,136 |
| Amgen, Inc. | | 223 | 53,462 |
| BELLUS Health, Inc. (Canada)* | | 63,633 | 922,042 |
| Bristol-Myers Squibb Co. | | 801 | 53,483 |
| Gilead Sciences, Inc. | | 672 | 55,245 |
| Heska Corp.(c)* | | 11,598 | 1,358,822 |
| Horizon Therapeutics PLC(d)* | | 27,935 | 3,105,254 |
| Johnson & Johnson | | 348 | 56,968 |
| Merck & Co., Inc. | | 507 | 58,543 |
| Pfizer, Inc. | | 1,349 | 52,463 |
| Prometheus Biosciences, Inc.* | | 5,842 | 1,133,056 |
| Royalty Pharma PLC, Class A | | 325 | 11,424 |
| Seagen, Inc.(c)* | | 6,961 | 1,392,200 |
| Swedish Orphan Biovitrum AB (Sweden)* | | 18,689 | 454,806 |
| | | | 8,759,904 |
| Cable & Satellite – 0.1% |
| Telenet Group Holding N.V. (Belgium) | | 10,704 | 248,298 |
| Chemicals – 1.9% |
| Air Products and Chemicals, Inc. | | 53 | 15,601 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Chemicals (Continued) |
| Diversey Holdings Ltd.(c)* | | 164,977 | $1,341,263 |
| Rogers Corp.(c)* | | 5,085 | 818,431 |
| Univar Solutions, Inc.(c)* | | 83,661 | 2,969,965 |
| | | | 5,145,260 |
| Commercial Support Services – 0.3% |
| Caverion OYJ (Finland) | | 76,746 | 727,271 |
| Construction Materials – 0.0%(e) |
| MDU Resources Group, Inc. | | 631 | 18,438 |
| Containers & Packaging – 0.0%(e) |
| Amcor PLC | | 3,929 | 43,101 |
| Sonoco Products Co. | | 41 | 2,486 |
| | | | 45,587 |
| Electric Utilities – 1.3% |
| Alliant Energy Corp. | | 93 | 5,128 |
| American Electric Power Co., Inc. | | 373 | 34,473 |
| Avangrid, Inc. | | 507 | 20,412 |
| Brookfield Renewable Corp., Class A | | 1,630 | 54,458 |
| CMS Energy Corp. | | 262 | 16,312 |
| Consolidated Edison, Inc. | | 575 | 56,620 |
| Dominion Energy, Inc. | | 204 | 11,657 |
| DTE Energy Co. | | 94 | 10,566 |
| Duke Energy Corp. | | 573 | 56,658 |
| Electricite de France S.A. (France) | | 36,073 | 474,005 |
| Evergy, Inc. | | 839 | 52,110 |
| FirstEnergy Corp. | | 707 | 28,139 |
| NorthWestern Corp. | | 943 | 55,279 |
| OGE Energy Corp. | | 283 | 10,624 |
| Pinnacle West Capital Corp. | | 63 | 4,943 |
| PNM Resources, Inc. | | 55,494 | 2,670,926 |
| WEC Energy Group, Inc. | | 561 | 53,951 |
| | | | 3,616,261 |
| Electrical Equipment – 0.8% |
| National Instruments Corp. | | 39,441 | 2,296,649 |
| Entertainment Content – 2.5% |
| Activision Blizzard, Inc. | | 51,559 | 4,006,650 |
| Rovio Entertainment Oyj (Finland)(b) | | 29,602 | 303,841 |
| TEGNA, Inc. | | 143,656 | 2,456,517 |
| | | | 6,767,008 |
| Food – 0.1% |
| Campbell Soup Co. | | 1,004 | 54,517 |
| Conagra Brands, Inc. | | 1,468 | 55,725 |
| | | Number
of Shares | Value |
| Food (Continued) |
| Flowers Foods, Inc. | | 2,025 | $ 55,708 |
| Hormel Foods Corp. | | 1,349 | 54,554 |
| Ingredion, Inc. | | 195 | 20,703 |
| JM Smucker (The) Co. | | 354 | 54,661 |
| Kellogg Co. | | 820 | 57,211 |
| Kraft Heinz (The) Co. | | 1,429 | 56,117 |
| | | | 409,196 |
| Gas & Water Utilities – 0.0%(e) |
| Atmos Energy Corp. | | 61 | 6,962 |
| Brookfield Infrastructure Corp., Class A (Canada) | | 907 | 38,638 |
| New Jersey Resources Corp. | | 337 | 17,403 |
| ONE Gas, Inc. | | 147 | 11,312 |
| Spire, Inc. | | 126 | 8,534 |
| | | | 82,849 |
| Health Care Facilities & Services – 0.3% |
| CVS Health Corp. | | 724 | 53,077 |
| Mediclinic International PLC (Switzerland) | | 92,727 | 581,275 |
| Premier, Inc., Class A | | 1,700 | 56,661 |
| Quest Diagnostics, Inc. | | 309 | 42,892 |
| | | | 733,905 |
| Household Products – 0.0%(e) |
| Kimberly-Clark Corp. | | 410 | 59,405 |
| Industrial Support Services – 0.5% |
| MSC Industrial Direct Co., Inc., Class A | | 399 | 36,201 |
| Ritchie Bros Auctioneers, Inc. (Canada) | | 2,534 | 144,920 |
| Triton International Ltd. | | 15,112 | 1,249,309 |
| | | | 1,430,430 |
| Insurance – 0.4% |
| Aflac, Inc. | | 863 | 60,281 |
| Argo Group International Holdings Ltd. | | 23,655 | 695,693 |
| Axis Capital Holdings Ltd. | | 97 | 5,484 |
| Hartford Financial Services Group (The), Inc. | | 322 | 22,859 |
| Old Republic International Corp. | | 2,244 | 56,706 |
| Reinsurance Group of America, Inc. | | 80 | 11,386 |
| TOWER Ltd. (New Zealand) | | 173,173 | 68,538 |
| Travelers (The) Cos., Inc. | | 327 | 59,233 |
| Unum Group | | 242 | 10,212 |
| | | | 990,392 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Leisure Facilities & Services – 0.0%(e) |
| Darden Restaurants, Inc. | | 360 | $ 54,695 |
| Texas Roadhouse, Inc. | | 214 | 23,673 |
| | | | 78,368 |
| Machinery – 0.2% |
| Evoqua Water Technologies Corp.* | | 9,494 | 469,478 |
| Medical Equipment & Devices – 0.1% |
| Globus Medical, Inc., Class A(c)* | | 4,993 | 290,293 |
| Metals & Mining – 0.0%(e) |
| Southern Copper Corp. (Mexico) | | 432 | 33,191 |
| Oil & Gas Producers – 0.9% |
| Chevron Corp. | | 194 | 32,705 |
| Exxon Mobil Corp. | | 12 | 1,420 |
| Ranger Oil Corp | | 11,931 | 491,557 |
| TravelCenters of America, Inc.* | | 21,449 | 1,847,402 |
| Williams (The) Cos., Inc. | | 1,492 | 45,148 |
| | | | 2,418,232 |
| Real Estate Investment Trusts – 0.7% |
| Indus Realty Trust, Inc. | | 10,638 | 708,172 |
| Life Storage, Inc.(c) | | 8,858 | 1,190,338 |
| National Retail Properties, Inc. | | 1,258 | 54,723 |
| Physicians Realty Trust | | 305 | 4,398 |
| | | | 1,957,631 |
| Real Estate Owners & Developers – 0.4% |
| Radius Global Infrastructure, Inc. Class A(c)* | | 79,760 | 1,171,674 |
| Retail - Consumer Staples – 0.3% |
| Albertsons Cos., Inc., Class A | | 33,950 | 709,555 |
| Kroger (The) Co. | | 4 | 195 |
| | | | 709,750 |
| Retail - Discretionary – 0.0%(e) |
| Genuine Parts Co. | | 335 | 56,384 |
| Semiconductors – 0.4% |
| Magnachip Semiconductor Corp. (South Korea)* | | 21,619 | 191,977 |
| Silicon Motion Technology Corp. ADR (Taiwan) | | 12,746 | 811,155 |
| | | | 1,003,132 |
| | | Number
of Shares | Value |
| Software – 4.8% |
| Black Knight, Inc.* | | 3,064 | $ 167,417 |
| Cvent Holding Corp.* | | 129,988 | 1,093,199 |
| ForgeRock, Inc., Class A* | | 50,160 | 1,004,705 |
| Momentive Global, Inc.(c)* | | 287,807 | 2,702,508 |
| Qualtrics International, Inc., Class A* | | 161,278 | 2,891,714 |
| Software A.G. (Germany) | | 11,655 | 398,177 |
| Sumo Logic, Inc.* | | 174,908 | 2,098,896 |
| VMware, Inc., Class A(c)* | | 22,263 | 2,783,543 |
| | | | 13,140,159 |
| Steel – 0.1% |
| Kloeckner & Co. S.E. (Germany) | | 21,703 | 240,902 |
| Technology Hardware – 0.2% |
| Cisco Systems, Inc. | | 1,065 | 50,321 |
| Juniper Networks, Inc. | | 1,616 | 48,723 |
| Maxar Technologies, Inc.(d) | | 6,875 | 362,450 |
| | | | 461,494 |
| Technology Services – 0.4% |
| EMIS Group PLC (United Kingdom) | | 14,442 | 296,208 |
| International Business Machines Corp. | | 419 | 52,966 |
| Majorel Group Luxembourg S.A. (Netherlands) | | 12,538 | 406,870 |
| Moneylion, Inc.* | | 838 | 7,791 |
| Ordina N.V. (Netherlands) | | 49,989 | 308,930 |
| | | | 1,072,765 |
| Tobacco & Cannabis – 0.0%(e) |
| Philip Morris International, Inc. | | 362 | 36,189 |
| Transportation & Logistics – 0.0%(e) |
| C.H. Robinson Worldwide, Inc. | | 101 | 10,188 |
| United Parcel Service, Inc., Class B | | 111 | 19,959 |
| | | | 30,147 |
| Wholesale - Discretionary – 0.3% |
| Uni-Select, Inc. (Canada)* | | 24,601 | 845,061 |
Total Common Stocks
(Cost $64,473,967) | 62,311,993 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Convertible Bonds – 22.2% |
| Advertising & Marketing – 0.5% |
| Magnite, Inc., 0.25%, 3/15/26(c) | | $1,507,000 | $1,225,944 |
| Aerospace & Defense – 0.2% |
| Kaman Corp., 3.25%, 5/01/24(c) | | 705,000 | 663,405 |
| Asset Management – 0.8% |
| RWT Holdings, Inc., 5.75%, 10/01/25(c) | | 1,073,000 | 928,286 |
| WisdomTree, Inc., | | | |
| 3.25%, 6/15/26 | | 177,000 | 168,681 |
| 5.75%, 8/15/28(b) | | 1,056,000 | 1,051,248 |
| | | | 2,148,215 |
| Biotechnology & Pharmaceuticals – 1.3% |
| Coherus Biosciences, Inc., 1.50%, 4/15/26(c) | | 613,000 | 445,651 |
| Collegium Pharmaceutical, Inc., 2.88%, 2/15/29(b)(c) | | 431,000 | 381,027 |
| Halozyme Therapeutics, Inc., 0.25%, 3/01/27(c) | | 917,000 | 751,041 |
| Insmed, Inc., 0.75%, 6/01/28(c) | | 1,031,000 | 850,637 |
| Jazz Investments I Ltd., 1.50%, 8/15/24(c) | | 768,000 | 733,690 |
| Mirum Pharmaceuticals, Inc., 4.00%, 5/01/29(b) | | 326,000 | 371,477 |
| | | | 3,533,523 |
| Cable & Satellite – 0.6% |
| Cable One, Inc., 1.13%, 3/15/28(c) | | 1,343,000 | 1,029,409 |
| Liberty Media Corp., 3.75%, 3/15/28(b)(c) | | 644,000 | 650,440 |
| | | | 1,679,849 |
| Consumer Services – 0.4% |
| Chegg, Inc., 0.13%, 3/15/25(c) | | 1,275,000 | 1,134,113 |
| E-Commerce Discretionary – 0.2% |
| PDD Holdings, Inc., 0.00%, 12/01/25(f) | | 428,000 | 405,102 |
| Electric Utilities – 0.5% |
| Duke Energy Corp., 4.13%, 4/15/26(b)(c) | | 651,000 | 664,020 |
| NRG Energy, Inc., 2.75%, 6/01/48(c) | | 611,000 | 627,802 |
| | | | 1,291,822 |
| | | Par (a) | Value |
| Electrical Equipment – 0.2% |
| Mesa Laboratories, Inc., 1.38%, 8/15/25(c) | | $ 622,000 | $ 566,336 |
| Health Care Facilities & Services – 0.1% |
| UpHealth, Inc., | | | |
| (SOFR + 9.00%), 13.81%, 12/15/25(b)(g) | | 182,000 | 144,690 |
| 6.25%, 6/15/26(b) | | 66,000 | 19,099 |
| | | | 163,789 |
| Household Products – 0.4% |
| Beauty Health (The) Co., 1.25%, 10/01/26(b)(c) | | 1,394,000 | 1,139,595 |
| Internet Media & Services – 1.9% |
| Airbnb, Inc., 0.00%, 3/15/26(f) | | 397,000 | 346,184 |
| JOYY, Inc., 0.75%, 6/15/25 | | 577,000 | 571,599 |
| Liberty TripAdvisor Holdings, Inc., 0.50%, 6/30/51(b)(c) | | 1,848,000 | 1,432,200 |
| Snap, Inc., 0.00%, 5/01/27(c)(f) | | 1,291,000 | 935,975 |
| Upwork, Inc., 0.25%, 8/15/26(c) | | 1,498,000 | 1,180,424 |
| Ziff Davis, Inc., 1.75%, 11/01/26(b)(c) | | 918,000 | 874,854 |
| | | | 5,341,236 |
| Leisure Facilities & Services – 1.3% |
| Cheesecake Factory (The), Inc., 0.38%, 6/15/26(c) | | 1,333,000 | 1,109,722 |
| Live Nation Entertainment, Inc., 3.13%, 1/15/29(b)(c) | | 1,052,000 | 1,016,758 |
| Marcus (The) Corp., 5.00%, 9/15/25(b)(c) | | 375,000 | 638,625 |
| Marriott Vacations Worldwide Corp., 3.25%, 12/15/27(b)(c) | | 408,000 | 399,024 |
| Royal Caribbean Cruises Ltd., 6.00%, 8/15/25(b)(c) | | 275,000 | 419,513 |
| | | | 3,583,642 |
| Leisure Products – 0.2% |
| Winnebago Industries, Inc., 1.50%, 4/01/25(c) | | 426,000 | 471,369 |
| Medical Equipment & Devices – 1.0% |
| CONMED Corp., 2.25%, 6/15/27(b)(c) | | 572,000 | 618,618 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Medical Equipment & Devices (Continued) |
| Haemonetics Corp., 0.00%, 3/01/26(c)(f) | | $1,609,000 | $1,370,704 |
| Integer Holdings Corp., 2.13%, 2/15/28(b)(c) | | 631,000 | 716,185 |
| | | | 2,705,507 |
| Oil, Gas Services & Equipment – 0.2% |
| Helix Energy Solutions Group, Inc., 6.75%, 2/15/26(c) | | 488,000 | 641,447 |
| Real Estate Investment Trusts – 0.8% |
| Pebblebrook Hotel Trust, 1.75%, 12/15/26(c) | | 1,426,000 | 1,226,021 |
| Summit Hotel Properties, Inc., 1.50%, 2/15/26(c) | | 1,234,000 | 1,031,001 |
| | | | 2,257,022 |
| Renewable Energy – 0.9% |
| Array Technologies, Inc., 1.00%, 12/01/28 | | 1,041,000 | 1,091,488 |
| Sunnova Energy International, Inc., | | | |
| 0.25%, 12/01/26 | | 1,027,000 | 793,357 |
| 2.63%, 2/15/28(b) | | 860,000 | 692,371 |
| | | | 2,577,216 |
| Retail - Discretionary – 0.3% |
| Patrick Industries, Inc., 1.75%, 12/01/28(c) | | 841,000 | 759,844 |
| Semiconductors – 0.5% |
| MACOM Technology Solutions Holdings, Inc., 0.25%, 3/15/26(c) | | 831,000 | 797,741 |
| Semtech Corp., 1.63%, 11/01/27(b)(c) | | 692,000 | 577,820 |
| | | | 1,375,561 |
| Software – 3.2% |
| Bentley Systems, Inc., 0.38%, 7/01/27(c) | | 1,321,000 | 1,112,282 |
| Ceridian HCM Holding, Inc., 0.25%, 3/15/26(c) | | 937,000 | 818,502 |
| Envestnet, Inc., | | | |
| 0.75%, 8/15/25(c) | | 577,000 | 535,168 |
| 2.63%, 12/01/27(b) | | 676,000 | 737,516 |
|
| Five9, Inc., 0.50%, 6/01/25(c) | | 438,000 | 402,971 |
| i3 Verticals LLC, 1.00%, 2/15/25(c) | | 673,000 | 617,898 |
| Jamf Holding Corp., 0.13%, 9/01/26(c) | | 709,000 | 587,407 |
| Kaleyra, Inc., 6.13%, 6/01/26(b) | | 148,000 | 116,139 |
| | | Par (a) | Value |
| Software (Continued) |
|
| Mitek Systems, Inc., 0.75%, 2/01/26(c) | | $ 825,000 | $ 670,993 |
| NextGen Healthcare, Inc., 3.75%, 11/15/27(b)(c) | | 449,000 | 435,306 |
| Progress Software Corp., 1.00%, 4/15/26(c) | | 524,000 | 556,576 |
| RingCentral, Inc., 0.00%, 3/01/25(f) | | 1,498,000 | 1,333,220 |
| Verint Systems, Inc., 0.25%, 4/15/26(c) | | 1,102,000 | 974,581 |
| | | | 8,898,559 |
| Specialty Finance – 4.3% |
| Arbor Realty Trust, Inc., 7.50%, 8/01/25(b) | | 1,081,000 | 1,011,275 |
| EZCORP, Inc., 3.75%, 12/15/29(b)(c) | | 408,000 | 403,488 |
| LendingTree, Inc., 0.50%, 7/15/25 | | 1,786,000 | 1,333,249 |
| MFA Financial, Inc., 6.25%, 6/15/24(c) | | 2,332,000 | 2,215,943 |
| PennyMac Corp., | | | |
| 5.50%, 11/01/24(c) | | 2,100,000 | 1,912,050 |
| 5.50%, 3/15/26 | | 923,000 | 809,132 |
|
| Redwood Trust, Inc., 5.63%, 7/15/24 | | 1,250,000 | 1,162,412 |
| SoFi Technologies, Inc., 0.00%, 10/15/26(b)(c)(f) | | 1,950,000 | 1,391,325 |
| Two Harbors Investment Corp., 6.25%, 1/15/26(c) | | 1,818,000 | 1,548,118 |
| | | | 11,786,992 |
| Technology Hardware – 0.5% |
| Infinera Corp., 2.13%, 9/01/24(c) | | 839,000 | 819,283 |
| Lumentum Holdings, Inc., 0.50%, 12/15/26(c) | | 545,000 | 461,343 |
| | | | 1,280,626 |
| Technology Services – 0.4% |
| Perficient, Inc., 0.13%, 11/15/26 | | 1,466,000 | 1,153,832 |
| Telecommunications – 0.2% |
| GDS Holdings Ltd., 2.00%, 6/01/25 | | 577,000 | 566,614 |
| Transportation & Logistics – 1.0% |
| Air Transport Services Group, Inc., 1.13%, 10/15/24(c) | | 602,000 | 573,525 |
| CryoPort, Inc., 0.75%, 12/01/26(b)(c) | | 1,341,000 | 1,053,527 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Transportation & Logistics (Continued) |
| JetBlue Airways Corp., 0.50%, 4/01/26(c) | | $ 837,000 | $ 652,107 |
| Spirit Airlines, Inc., 1.00%, 5/15/26(c) | | 535,000 | 433,885 |
| | | | 2,713,044 |
| Transportation Equipment – 0.3% |
| Greenbrier (The) Cos., Inc., 2.88%, 4/15/28(c) | | 1,145,000 | 929,740 |
Total Convertible Bonds
(Cost $65,053,422) | 60,993,944 |
| | | Number
of Shares | |
| Convertible Preferred Stocks – 1.2% |
| Banking – 0.3% |
| New York Community Capital Trust V, 6.00% | | 15,668 | 664,480 |
| Chemicals – 0.2% |
| Lyondellbasell Advanced Polymers, Inc., 6.00% | | 669 | 565,305 |
| Engineering & Construction – 0.2% |
| Fluor Corp., 6.50% | | 464 | 522,000 |
| Specialty Finance – 0.3% |
| Ready Capital Corp., 7.00% | | 35,062 | 873,745 |
| Technology Hardware – 0.2% |
| NCR Corp., (100% Cash), 5.50%(h) | | 556 | 583,633 |
Total Convertible Preferred Stocks
(Cost $3,474,957) | 3,209,163 |
| | | Par (a) | |
| Corporate Bonds – 16.4% |
| Advertising & Marketing – 0.0%(e) |
| Interpublic (The) Group of Cos., Inc, 2.40%, 3/01/31 | | $ 5,000 | $ 4,178 |
| Aerospace & Defense – 0.4% |
| Boeing (The) Co., | | | |
| 2.20%, 2/04/26 | | 60,000 | 55,775 |
| 5.15%, 5/01/30 | | 105,000 | 105,808 |
| General Dynamics Corp., | | | |
| 3.50%, 4/01/27 | | 130,000 | 126,302 |
| 3.75%, 5/15/28 | | 70,000 | 68,668 |
| Howmet Aerospace, Inc., | | | |
| 5.90%, 2/01/27 | | 125,000 | 127,947 |
| 5.95%, 2/01/37 | | 25,000 | 25,439 |
| | | Par (a) | Value |
| Aerospace & Defense (Continued) |
| Lockheed Martin Corp., | | | |
| 5.10%, 11/15/27 | | $ 40,000 | $ 41,616 |
| 3.90%, 6/15/32 | | 105,000 | 101,973 |
| 5.25%, 1/15/33 | | 170,000 | 181,654 |
| TransDigm, Inc., | | | |
| 5.50%, 11/15/27 | | 45,000 | 43,186 |
| 6.75%, 8/15/28(b) | | 114,000 | 115,772 |
| | | | 994,140 |
| Asset Management – 0.2% |
| Ameriprise Financial, Inc., | | | |
| 3.00%, 4/02/25 | | 100,000 | 96,377 |
| 5.15%, 5/15/33 | | 85,000 | 85,655 |
| Ares Capital Corp., | | | |
| 2.15%, 7/15/26 | | 48,000 | 41,914 |
| 2.88%, 6/15/27 | | 60,000 | 52,394 |
| 2.88%, 6/15/28 | | 40,000 | 33,610 |
|
| Barings BDC, Inc., 3.30%, 11/23/26 | | 35,000 | 31,114 |
| Charles Schwab (The) Corp., 1.15%, 5/13/26 | | 50,000 | 44,267 |
| Compass Group Diversified Holdings LLC, 5.25%, 4/15/29(b) | | 14,000 | 12,601 |
| FS KKR Capital Corp., | | | |
| 2.63%, 1/15/27 | | 105,000 | 89,722 |
| 3.25%, 7/15/27 | | 10,000 | 8,631 |
|
| Golub Capital BDC, Inc., 2.50%, 8/24/26 | | 10,000 | 8,647 |
| Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | | | |
| 6.25%, 5/15/26 | | 49,000 | 48,214 |
| 5.25%, 5/15/27 | | 52,000 | 49,003 |
| 4.38%, 2/01/29 | | 60,000 | 52,693 |
|
| NFP Corp., 6.88%, 8/15/28(b) | | 12,000 | 10,468 |
| | | | 665,310 |
| Automotive – 0.5% |
| American Honda Finance Corp., | | | |
| 2.15%, 9/10/24 | | 40,000 | 38,647 |
| 1.20%, 7/08/25 | | 75,000 | 69,762 |
| Ford Motor Co., | | | |
| 9.63%, 4/22/30 | | 50,000 | 58,143 |
| 5.29%, 12/08/46 | | 25,000 | 20,219 |
| Ford Motor Credit Co. LLC, | | | |
| 3.38%, 11/13/25 | | 200,000 | 185,732 |
| 7.35%, 11/04/27 | | 60,000 | 61,698 |
| 7.35%, 3/06/30 | | 60,000 | 61,630 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Automotive (Continued) |
| General Motors Financial Co., Inc., | | | |
| 4.35%, 4/09/25 | | $ 80,000 | $ 78,319 |
| 2.35%, 2/26/27 | | 200,000 | 179,888 |
|
| Lear Corp., 3.80%, 9/15/27 | | 60,000 | 57,434 |
| Toyota Motor Credit Corp., | | | |
| 3.95%, 6/30/25 | | 280,000 | 276,985 |
| 3.65%, 8/18/25 | | 150,000 | 147,421 |
| 1.13%, 6/18/26 | | 30,000 | 27,214 |
| | | | 1,263,092 |
| Banking – 1.9% |
| Bank of America Corp., | | | |
| (SOFR + 0.73%), 0.81%, 10/24/24(i) | | 67,000 | 65,443 |
| 4.00%, 1/22/25 | | 50,000 | 49,059 |
| (SOFR + 0.69%), 0.98%, 4/22/25(i) | | 120,000 | 114,277 |
| (SOFR + 0.91%), 0.98%, 9/25/25(i) | | 20,000 | 18,693 |
| (3M USD LIBOR + 0.81%), 3.37%, 1/23/26(i) | | 25,000 | 24,085 |
| (SOFR + 1.33%), 3.38%, 4/02/26(i) | | 695,000 | 670,184 |
| (SOFR + 1.15%), 1.32%, 6/19/26(i) | | 210,000 | 192,089 |
| (SOFR + 1.75%), 4.83%, 7/22/26(i) | | 105,000 | 103,990 |
| (SOFR + 2.04%), 4.95%, 7/22/28(i) | | 110,000 | 109,622 |
| (SOFR + 1.99%), 6.20%, 11/10/28(i) | | 125,000 | 130,334 |
| (3M USD LIBOR + 0.99%), 2.50%, 2/13/31(i) | | 80,000 | 67,537 |
| (SOFR + 1.22%), 2.65%, 3/11/32(i) | | 50,000 | 41,671 |
| (SOFR + 1.21%), 2.57%, 10/20/32(i) | | 30,000 | 24,635 |
| Citigroup, Inc., | | | |
| 4.00%, 8/05/24 | | 150,000 | 147,984 |
| (SOFR + 0.69%), 0.78%, 10/30/24(i) | | 450,000 | 438,946 |
| (SOFR + 0.67%), 0.98%, 5/01/25(i) | | 85,000 | 80,941 |
| (SOFR + 1.37%), 4.14%, 5/24/25(i) | | 110,000 | 108,654 |
| (SOFR + 0.77%), 1.46%, 6/09/27(i) | | 375,000 | 336,615 |
| 4.45%, 9/29/27 | | 100,000 | 97,714 |
| JPMorgan Chase & Co., | | | |
| (SOFR + 0.98%), 3.85%, 6/14/25(i) | | 244,000 | 239,551 |
| (SOFR + 0.61%), 1.56%, 12/10/25(i) | | 130,000 | 122,058 |
| | | Par (a) | Value |
| Banking (Continued) |
| JPMorgan Chase & Co., | | | |
| (SOFR + 0.92%), 2.60%, 2/24/26(i) | | $327,000 | $ 311,321 |
| (3M CME Term SOFR + 1.59%), 2.01%, 3/13/26(i) | | 300,000 | 282,908 |
| (SOFR + 0.80%), 1.05%, 11/19/26(i) | | 180,000 | 162,188 |
| (3M CME Term SOFR + 0.70%), 1.04%, 2/04/27(i) | | 205,000 | 183,934 |
| (SOFR + 0.77%), 1.47%, 9/22/27(i) | | 95,000 | 84,593 |
| (SOFR + 1.99%), 4.85%, 7/25/28(i) | | 245,000 | 245,666 |
| Santander Holdings USA, Inc., | | | |
| (SOFR Index + 1.38%), 4.26%, 6/09/25(i) | | 70,000 | 67,708 |
| (SOFR + 2.36%), 6.50%, 3/09/29(i) | | 10,000 | 10,052 |
| Truist Financial Corp., | | | |
| 4.00%, 5/01/25 | | 50,000 | 48,462 |
| (SOFR + 1.46%), 4.26%, 7/28/26(i) | | 90,000 | 87,142 |
|
| U.S. Bancorp, (SOFR + 1.66%), 4.55%, 7/22/28(i) | | 20,000 | 19,444 |
| Wells Fargo & Co., | | | |
| (SOFR + 0.51%), 0.81%, 5/19/25(i) | | 33,000 | 31,396 |
| (3M USD LIBOR + 0.83%), 2.41%, 10/30/25(i) | | 12,000 | 11,481 |
| (SOFR + 1.32%), 3.91%, 4/25/26(i) | | 165,000 | 160,894 |
| (SOFR + 1.51%), 3.53%, 3/24/28(i) | | 160,000 | 151,190 |
| (SOFR + 1.98%), 4.81%, 7/25/28(i) | | 240,000 | 237,849 |
| | | | 5,280,310 |
| Beverages – 0.4% |
| Coca-Cola (The) Co., 3.38%, 3/25/27 | | 230,000 | 225,995 |
| Constellation Brands, Inc., 4.35%, 5/09/27 | | 65,000 | 64,474 |
| Keurig Dr Pepper, Inc., | | | |
| 3.95%, 4/15/29 | | 115,000 | 111,065 |
| 3.20%, 5/01/30 | | 70,000 | 63,968 |
| 4.05%, 4/15/32 | | 55,000 | 52,247 |
| PepsiCo, Inc., | | | |
| 3.60%, 2/18/28 | | 250,000 | 246,391 |
| 4.45%, 2/15/33 | | 210,000 | 215,543 |
| | | | 979,683 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Biotechnology & Pharmaceuticals – 0.6% |
| AbbVie, Inc., | | | |
| 3.85%, 6/15/24 | | $100,000 | $ 98,813 |
| 2.60%, 11/21/24 | | 370,000 | 357,198 |
| 3.80%, 3/15/25 | | 70,000 | 68,816 |
| 3.60%, 5/14/25 | | 170,000 | 166,085 |
| Amgen, Inc., | | | |
| 5.51%, 3/02/26 | | 50,000 | 50,196 |
| 5.15%, 3/02/28 | | 35,000 | 35,823 |
| 4.05%, 8/18/29 | | 15,000 | 14,570 |
| 5.25%, 3/02/30 | | 65,000 | 66,758 |
|
| Bausch Health Cos., Inc., 11.00%, 9/30/28(b) | | 36,000 | 29,025 |
| Biogen, Inc., 2.25%, 5/01/30 | | 215,000 | 182,952 |
| Bristol-Myers Squibb Co., 1.45%, 11/13/30 | | 50,000 | 41,016 |
| Eli Lilly & Co., 4.70%, 2/27/33 | | 130,000 | 134,961 |
| Regeneron Pharmaceuticals, Inc., 1.75%, 9/15/30 | | 170,000 | 138,875 |
| Viatris, Inc., 1.65%, 6/22/25 | | 30,000 | 27,660 |
| Zoetis, Inc., | | | |
| 3.00%, 9/12/27 | | 140,000 | 133,194 |
| 2.00%, 5/15/30 | | 100,000 | 84,880 |
| | | | 1,630,822 |
| Cable & Satellite – 0.2% |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | |
| 6.38%, 9/01/29(b) | | 40,000 | 38,014 |
| 7.38%, 3/01/31(b) | | 167,000 | 163,653 |
|
| Charter Communications Operating LLC/Charter Communications Operating Capital, 2.25%, 1/15/29 | | 15,000 | 12,587 |
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 8/15/27(b) | | 125,000 | 109,696 |
| DISH DBS Corp., | | | |
| 7.75%, 7/01/26 | | 50,000 | 28,885 |
| 7.38%, 7/01/28 | | 20,000 | 10,020 |
|
| GCI LLC, 4.75%, 10/15/28(b) | | 20,000 | 17,100 |
| Sirius XM Radio, Inc., 5.50%, 7/01/29(b) | | 39,000 | 34,739 |
| | | | 414,694 |
| Chemicals – 0.2% |
| Air Products and Chemicals, Inc., 1.85%, 5/15/27 | | 110,000 | 101,040 |
| | | Par (a) | Value |
| Chemicals (Continued) |
| Albemarle Corp., 4.65%, 6/01/27 | | $130,000 | $128,463 |
| Ashland LLC, 3.38%, 9/01/31(b) | | 70,000 | 57,915 |
| Chemours (The) Co., 5.38%, 5/15/27 | | 50,000 | 46,468 |
| EIDP, Inc., 2.30%, 7/15/30 | | 60,000 | 51,774 |
| LYB International Finance II B.V., 3.50%, 3/02/27 | | 30,000 | 28,830 |
| PPG Industries, Inc., 1.20%, 3/15/26 | | 165,000 | 149,691 |
| | | | 564,181 |
| Commercial Support Services – 0.2% |
| ADT Security (The) Corp., 4.13%, 8/01/29(b) | | 36,000 | 31,275 |
| Block Financial LLC, 2.50%, 7/15/28 | | 39,000 | 33,702 |
| Cintas Corp. No. 2, | | | |
| 3.45%, 5/01/25 | | 135,000 | 131,829 |
| 3.70%, 4/01/27 | | 171,000 | 167,408 |
|
| Prime Security Services Borrower LLC/Prime Finance, Inc., 5.75%, 4/15/26(b) | | 50,000 | 49,623 |
| Waste Connections, Inc., | | | |
| 2.60%, 2/01/30 | | 5,000 | 4,415 |
| 3.20%, 6/01/32 | | 55,000 | 48,930 |
| | | | 467,182 |
| Construction Materials – 0.1% |
| Smyrna Ready Mix Concrete LLC, 6.00%, 11/01/28(b) | | 28,000 | 26,206 |
| Standard Industries, Inc., 4.38%, 7/15/30(b) | | 122,000 | 105,304 |
| Vulcan Materials Co., 5.80%, 3/01/26 | | 40,000 | 40,211 |
| | | | 171,721 |
| Consumer Services – 0.0%(e) |
| Service Corp. International, | | | |
| 3.38%, 8/15/30 | | 15,000 | 12,708 |
| 4.00%, 5/15/31 | | 25,000 | 22,032 |
| | | | 34,740 |
| Containers & Packaging – 0.0%(e) |
| Sealed Air Corp., 6.88%, 7/15/33(b) | | 60,000 | 63,737 |
| E-Commerce Discretionary – 0.0%(e) |
| eBay, Inc., 1.90%, 3/11/25 | | 50,000 | 47,296 |
| Electric Utilities – 0.7% |
| AEP Texas, Inc., 3.95%, 6/01/28 | | 50,000 | 48,538 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Electric Utilities (Continued) |
| Alabama Power Co., 3.05%, 3/15/32 | | $ 35,000 | $31,236 |
| Appalachian Power Co., 4.50%, 8/01/32 | | 20,000 | 19,375 |
| Arizona Public Service Co., 2.20%, 12/15/31 | | 50,000 | 40,205 |
| Berkshire Hathaway Energy Co., | | | |
| 4.05%, 4/15/25 | | 100,000 | 98,911 |
| 1.65%, 5/15/31 | | 25,000 | 20,241 |
| Black Hills Corp., | | | |
| 1.04%, 8/23/24 | | 10,000 | 9,437 |
| 3.15%, 1/15/27 | | 20,000 | 18,849 |
| Calpine Corp., | | | |
| 4.63%, 2/01/29(b) | | 25,000 | 21,730 |
| 5.00%, 2/01/31(b) | | 41,000 | 34,541 |
|
| CenterPoint Energy Houston Electric LLC, 4.45%, 10/01/32 | | 30,000 | 29,760 |
| Constellation Energy Generation LLC, 3.25%, 6/01/25 | | 50,000 | 48,078 |
| Dominion Energy, Inc., 3.38%, 4/01/30 | | 50,000 | 45,609 |
| DTE Energy Co., 1.05%, 6/01/25 | | 55,000 | 50,820 |
| Duke Energy Carolinas LLC, 4.95%, 1/15/33 | | 10,000 | 10,274 |
| Duke Energy Corp., | | | |
| 2.65%, 9/01/26 | | 100,000 | 93,878 |
| 3.40%, 6/15/29 | | 50,000 | 46,502 |
| Duke Energy Progress LLC, | | | |
| 3.40%, 4/01/32 | | 20,000 | 18,251 |
| 5.25%, 3/15/33 | | 10,000 | 10,467 |
|
| Entergy Louisiana LLC, 1.60%, 12/15/30 | | 90,000 | 71,885 |
| Eversource Energy, | | | |
| 4.20%, 6/27/24 | | 85,000 | 83,955 |
| 2.90%, 10/01/24 | | 50,000 | 48,440 |
|
| Exelon Corp., 5.15%, 3/15/28 | | 40,000 | 40,887 |
| Florida Power & Light Co., 2.45%, 2/03/32 | | 30,000 | 25,746 |
| Georgia Power Co., 4.70%, 5/15/32 | | 20,000 | 19,952 |
| ITC Holdings Corp., 3.35%, 11/15/27 | | 90,000 | 85,562 |
| National Rural Utilities Cooperative Finance Corp., | | | |
| 1.00%, 6/15/26 | | 85,000 | 76,493 |
| 2.40%, 3/15/30 | | 100,000 | 86,968 |
| | | Par (a) | Value |
| Electric Utilities (Continued) |
|
| NextEra Energy Capital Holdings, Inc., 4.45%, 6/20/25 | | $190,000 | $ 188,992 |
| NRG Energy, Inc., 5.25%, 6/15/29(b) | | 119,000 | 109,767 |
| Pacific Gas and Electric Co., 2.50%, 2/01/31 | | 80,000 | 64,827 |
| PG&E Corp., 5.25%, 7/01/30 | | 100,000 | 92,165 |
| PPL Capital Funding, Inc., 3.10%, 5/15/26 | | 20,000 | 19,136 |
| PPL Electric Utilities Corp., 5.00%, 5/15/33 | | 10,000 | 10,306 |
| Public Service Co. of Colorado, 4.10%, 6/01/32 | | 25,000 | 24,236 |
| Public Service Enterprise Group, Inc., 1.60%, 8/15/30 | | 10,000 | 8,112 |
| Southern California Edison Co., 2.95%, 2/01/51 | | 6,000 | 4,067 |
| Southwestern Electric Power Co., 5.30%, 4/01/33 | | 10,000 | 10,136 |
| Talen Energy Supply LLC, 6/01/30(b)(j) | | 15,000 | 15,000 |
| Union Electric Co., 2.95%, 3/15/30 | | 100,000 | 90,913 |
| Virginia Electric and Power Co., 2.30%, 11/15/31 | | 95,000 | 79,276 |
| Vistra Operations Co. LLC, 5.00%, 7/31/27(b) | | 50,000 | 47,516 |
| Wisconsin Electric Power Co., 1.70%, 6/15/28 | | 10,000 | 8,806 |
| Wisconsin Power and Light Co., 1.95%, 9/16/31 | | 5,000 | 4,061 |
| Xcel Energy, Inc., 4.60%, 6/01/32 | | 10,000 | 9,824 |
| | | | 2,023,730 |
| Electrical Equipment – 0.1% |
| Amphenol Corp., 2.05%, 3/01/25 | | 30,000 | 28,526 |
| Atkore, Inc., 4.25%, 6/01/31(b) | | 55,000 | 48,425 |
| BWX Technologies, Inc., 4.13%, 6/30/28(b) | | 115,000 | 105,260 |
| | | | 182,211 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Engineering & Construction – 0.0%(e) |
| Quanta Services, Inc., | | | |
| 0.95%, 10/01/24 | | $ 85,000 | $ 80,013 |
| 2.35%, 1/15/32 | | 50,000 | 40,274 |
| | | | 120,287 |
| Entertainment Content – 0.1% |
| Playtika Holding Corp., 4.25%, 3/15/29(b) | | 11,000 | 9,350 |
| TEGNA, Inc., 5.00%, 9/15/29 | | 200,000 | 175,116 |
| Univision Communications, Inc., 7.38%, 6/30/30(b) | | 116,000 | 111,305 |
| | | | 295,771 |
| Finance Companies – 0.0%(e) |
| Blackstone Private Credit Fund, 2.70%, 1/15/25 | | 60,000 | 55,980 |
| Food – 0.2% |
| Campbell Soup Co., 3.95%, 3/15/25 | | 190,000 | 186,739 |
| General Mills, Inc., | | | |
| 4.00%, 4/17/25 | | 30,000 | 29,628 |
| 5.24%, 11/18/25 | | 25,000 | 25,017 |
| 4.95%, 3/29/33 | | 35,000 | 35,648 |
|
| Hershey (The) Co., 0.90%, 6/01/25 | | 44,000 | 40,923 |
| Kraft Heinz Foods Co., 3.88%, 5/15/27 | | 160,000 | 156,207 |
| Mondelez International, Inc., 2.63%, 3/17/27 | | 40,000 | 37,467 |
| | | | 511,629 |
| Forestry, Paper & Wood Products – 0.0%(e) |
| Boise Cascade Co., 4.88%, 7/01/30(b) | | 61,000 | 55,058 |
| Domtar Corp., 6.75%, 10/01/28(b) | | 21,000 | 18,188 |
| Louisiana-Pacific Corp., 3.63%, 3/15/29(b) | | 28,000 | 24,570 |
| | | | 97,816 |
| Gas & Water Utilities – 0.1% |
| American Water Capital Corp., 4.45%, 6/01/32 | | 30,000 | 29,816 |
| AmeriGas Partners L.P./AmeriGas Finance Corp., 5.75%, 5/20/27 | | 25,000 | 23,605 |
| National Fuel Gas Co., 5.20%, 7/15/25 | | 185,000 | 184,104 |
| NiSource, Inc., 0.95%, 8/15/25 | | 100,000 | 91,824 |
| | | Par (a) | Value |
| Gas & Water Utilities (Continued) |
| ONE Gas, Inc., 4.25%, 9/01/32 | | $ 25,000 | $ 24,539 |
| Southwest Gas Corp., 4.05%, 3/15/32 | | 45,000 | 41,683 |
| | | | 395,571 |
| Health Care Facilities & Services – 1.0% |
| Acadia Healthcare Co., Inc., | | | |
| 5.50%, 7/01/28(b) | | 21,000 | 20,271 |
| 5.00%, 4/15/29(b) | | 22,000 | 20,820 |
|
| Aetna, Inc., 3.50%, 11/15/24 | | 40,000 | 39,023 |
| AmerisourceBergen Corp., 3.25%, 3/01/25 | | 75,000 | 72,850 |
| CHS/Community Health Systems, Inc., | | | |
| 8.00%, 3/15/26(b) | | 22,000 | 21,801 |
| 6.88%, 4/15/29(b) | | 28,000 | 20,718 |
|
| Cigna Group (The), 1.25%, 3/15/26 | | 100,000 | 91,238 |
| CVS Health Corp., | | | |
| 6.25%, 6/01/27 | | 80,000 | 84,709 |
| 1.30%, 8/21/27 | | 65,000 | 56,993 |
|
| DaVita, Inc., 4.63%, 6/01/30(b) | | 86,000 | 74,912 |
| HCA, Inc., | | | |
| 5.25%, 4/15/25 | | 115,000 | 115,266 |
| 3.50%, 9/01/30 | | 50,000 | 45,005 |
| 3.63%, 3/15/32(b) | | 76,000 | 67,326 |
|
| HealthEquity, Inc., 4.50%, 10/01/29(b) | | 50,000 | 44,710 |
| Humana, Inc., | | | |
| 3.85%, 10/01/24 | | 4,000 | 3,937 |
| 4.50%, 4/01/25 | | 57,000 | 56,657 |
| 5.75%, 3/01/28 | | 130,000 | 135,604 |
| McKesson Corp., | | | |
| 0.90%, 12/03/25 | | 75,000 | 68,104 |
| 5.25%, 2/15/26 | | 200,000 | 200,084 |
|
| Molina Healthcare, Inc., 4.38%, 6/15/28(b) | | 200,000 | 187,443 |
| Tenet Healthcare Corp., | | | |
| 6.13%, 10/01/28 | | 124,000 | 120,306 |
| 6.13%, 6/15/30(b) | | 140,000 | 138,476 |
| UnitedHealth Group, Inc., | | | |
| 3.70%, 5/15/27 | | 125,000 | 122,666 |
| 5.25%, 2/15/28 | | 170,000 | 177,641 |
| 4.25%, 1/15/29 | | 110,000 | 109,859 |
| 5.30%, 2/15/30 | | 390,000 | 411,675 |
| 2.00%, 5/15/30 | | 125,000 | 107,415 |
| 4.50%, 4/15/33 | | 70,000 | 70,074 |
| | | | 2,685,583 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Home Construction – 0.1% |
| Lennar Corp., 5.00%, 6/15/27 | | $ 40,000 | $ 39,911 |
| Masco Corp., 3.50%, 11/15/27 | | 45,000 | 42,945 |
| NVR, Inc., 3.00%, 5/15/30 | | 55,000 | 49,383 |
| Toll Brothers Finance Corp., 3.80%, 11/01/29 | | 30,000 | 27,358 |
| Tri Pointe Homes, Inc., 5.70%, 6/15/28 | | 50,000 | 49,063 |
| | | | 208,660 |
| Household Products – 0.0%(e) |
| Coty, Inc., 5.00%, 4/15/26(b) | | 50,000 | 48,820 |
| Industrial Support Services – 0.0%(e) |
| Williams Scotsman International, Inc., 4.63%, 8/15/28(b) | | 46,000 | 42,238 |
| Institutional Financial Services – 1.0% |
| Bank of New York Mellon (The) Corp., (SOFR + 1.17%), 4.54%, 2/01/29(i) | | 50,000 | 49,695 |
| Goldman Sachs Group (The), Inc., | | | |
| (SOFR + 0.51%), 0.66%, 9/10/24(i) | | 470,000 | 461,255 |
| (3M CME Term SOFR + 1.20%), 3.27%, 9/29/25(i) | | 150,000 | 145,131 |
| (SOFR + 0.61%), 0.86%, 2/12/26(i) | | 90,000 | 82,598 |
| 3.50%, 11/16/26 | | 50,000 | 47,695 |
| (SOFR + 0.79%), 1.09%, 12/09/26(i) | | 450,000 | 402,558 |
| (SOFR + 0.80%), 1.43%, 3/09/27(i) | | 110,000 | 98,755 |
| (3M CME Term SOFR + 1.16%), 3.81%, 4/23/29(i) | | 50,000 | 47,074 |
| 3.80%, 3/15/30 | | 50,000 | 46,955 |
| (SOFR + 1.09%), 1.99%, 1/27/32(i) | | 115,000 | 92,076 |
| (SOFR + 1.28%), 2.62%, 4/22/32(i) | | 10,000 | 8,345 |
| (SOFR + 1.25%), 2.38%, 7/21/32(i) | | 75,000 | 61,268 |
| Intercontinental Exchange, Inc., | | | |
| 3.65%, 5/23/25 | | 10,000 | 9,819 |
| 1.85%, 9/15/32 | | 30,000 | 23,863 |
| Morgan Stanley, | | | |
| (SOFR + 0.75%), 0.86%, 10/21/25(i) | | 130,000 | 120,935 |
| | | Par (a) | Value |
| Institutional Financial Services (Continued) |
| Morgan Stanley, | | | |
| (SOFR + 1.99%), 2.19%, 4/28/26(i) | | $100,000 | $ 94,141 |
| (SOFR + 1.67%), 4.68%, 7/17/26(i) | | 260,000 | 257,855 |
| (SOFR + 0.72%), 0.99%, 12/10/26(i) | | 360,000 | 321,968 |
| (SOFR + 0.88%), 1.59%, 5/04/27(i) | | 70,000 | 62,958 |
| (3M USD LIBOR + 1.63%), 4.43%, 1/23/30(i) | | 50,000 | 48,308 |
| (SOFR + 3.12%), 3.62%, 4/01/31(i) | | 145,000 | 132,627 |
| | | | 2,615,879 |
| Insurance – 0.5% |
| Aflac, Inc., | | | |
| 1.13%, 3/15/26 | | 30,000 | 27,432 |
| 3.60%, 4/01/30 | | 22,000 | 20,740 |
|
| Aon Corp., 2.80%, 5/15/30 | | 20,000 | 17,605 |
| Arthur J Gallagher & Co., 2.40%, 11/09/31 | | 20,000 | 16,405 |
| Assurant, Inc., 4.90%, 3/27/28 | | 160,000 | 155,948 |
| Berkshire Hathaway, Inc., 3.13%, 3/15/26 | | 95,000 | 92,673 |
| Brown & Brown, Inc., 4.50%, 3/15/29 | | 90,000 | 86,334 |
| Corebridge Financial, Inc., 3.50%, 4/04/25(b) | | 60,000 | 57,649 |
| Enstar Group Ltd., 3.10%, 9/01/31 | | 165,000 | 130,139 |
| Marsh & McLennan Cos., Inc., | | | |
| 4.38%, 3/15/29 | | 170,000 | 168,947 |
| 2.25%, 11/15/30 | | 50,000 | 42,690 |
| 2.38%, 12/15/31 | | 100,000 | 83,618 |
|
| Principal Financial Group, Inc., 5.38%, 3/15/33 | | 40,000 | 40,698 |
| Progressive (The) Corp., | | | |
| 2.50%, 3/15/27 | | 360,000 | 335,947 |
| 3.20%, 3/26/30 | | 60,000 | 55,345 |
|
| Willis North America, Inc., 4.65%, 6/15/27 | | 100,000 | 98,437 |
| | | | 1,430,607 |
| Internet Media & Services – 0.2% |
| Booking Holdings, Inc., 4.63%, 4/13/30 | | 23,000 | 23,124 |
| Meta Platforms, Inc., | | | |
| 3.50%, 8/15/27 | | 130,000 | 126,152 |
| 3.85%, 8/15/32 | | 30,000 | 28,320 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Internet Media & Services (Continued) |
| Netflix, Inc., | | | |
| 5.88%, 11/15/28 | | $ 50,000 | $ 52,530 |
| 5.38%, 11/15/29(b) | | 75,000 | 76,673 |
|
| Uber Technologies, Inc., 7.50%, 5/15/25(b) | | 75,000 | 76,125 |
| VeriSign, Inc., 4.75%, 7/15/27 | | 100,000 | 98,349 |
| Ziff Davis, Inc., 4.63%, 10/15/30(b) | | 192,000 | 168,697 |
| | | | 649,970 |
| Leisure Facilities & Services – 0.3% |
| Boyne USA, Inc., 4.75%, 5/15/29(b) | | 10,000 | 9,058 |
| Caesars Entertainment, Inc., | | | |
| 6.25%, 7/01/25(b) | | 55,000 | 55,067 |
| 7.00%, 2/15/30(b) | | 32,000 | 32,286 |
|
| Carnival Corp., 10.50%, 6/01/30(b) | | 68,000 | 64,527 |
| Carnival Holdings Bermuda Ltd., 10.38%, 5/01/28(b) | | 53,000 | 56,979 |
| Choice Hotels International, Inc., 3.70%, 12/01/29 | | 10,000 | 9,072 |
| Hilton Domestic Operating Co., Inc., | | | |
| 4.88%, 1/15/30 | | 67,000 | 63,610 |
| 4.00%, 5/01/31(b) | | 50,000 | 44,224 |
|
| Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, 4.88%, 7/01/31(b) | | 70,000 | 61,238 |
| Marriott International, Inc., | | | |
| 5.75%, 5/01/25 | | 9,000 | 9,115 |
| 5.00%, 10/15/27 | | 35,000 | 35,344 |
|
| Marriott Ownership Resorts, Inc., 4.50%, 6/15/29(b) | | 25,000 | 21,830 |
| McDonald's Corp., 4.60%, 9/09/32 | | 180,000 | 182,573 |
| Midwest Gaming Borrower LLC/Midwest Gaming Finance Corp., 4.88%, 5/01/29(b) | | 10,000 | 8,950 |
| Royal Caribbean Cruises Ltd., 11.63%, 8/15/27(b) | | 104,000 | 110,634 |
| Six Flags Entertainment Corp., 7.25%, 5/15/31(b) | | 20,000 | 19,595 |
| | | Par (a) | Value |
| Leisure Facilities & Services (Continued) |
| Yum! Brands, Inc., | | | |
| 4.75%, 1/15/30(b) | | $ 50,000 | $ 48,366 |
| 4.63%, 1/31/32 | | 100,000 | 93,247 |
| | | | 925,715 |
| Leisure Products – 0.0%(e) |
| Winnebago Industries, Inc., 6.25%, 7/15/28(b) | | 10,000 | 9,670 |
| Machinery – 0.3% |
| Caterpillar Financial Services Corp., | | | |
| 0.45%, 5/17/24 | | 190,000 | 181,390 |
| 3.40%, 5/13/25 | | 80,000 | 78,443 |
| 3.65%, 8/12/25 | | 40,000 | 39,362 |
| 0.80%, 11/13/25 | | 60,000 | 54,860 |
|
| Eaton Corp., 4.15%, 3/15/33 | | 20,000 | 19,240 |
| IDEX Corp., 2.63%, 6/15/31 | | 80,000 | 68,387 |
| John Deere Capital Corp., 3.40%, 6/06/25 | | 280,000 | 274,518 |
| Terex Corp., 5.00%, 5/15/29(b) | | 124,000 | 115,334 |
| | | | 831,534 |
| Medical Equipment & Devices – 0.2% |
| Agilent Technologies, Inc., 2.30%, 3/12/31 | | 30,000 | 25,239 |
| Becton Dickinson & Co., 3.70%, 6/06/27 | | 55,000 | 53,286 |
| Edwards Lifesciences Corp., 4.30%, 6/15/28 | | 70,000 | 70,021 |
| GE HealthCare Technologies, Inc., | | | |
| 5.65%, 11/15/27(b) | | 100,000 | 103,266 |
| 5.91%, 11/22/32(b) | | 100,000 | 107,040 |
|
| Hologic, Inc., 4.63%, 2/01/28(b) | | 50,000 | 48,614 |
| Medline Borrower L.P., 5.25%, 10/01/29(b) | | 36,000 | 31,139 |
| | | | 438,605 |
| Metals & Mining – 0.0%(e) |
| Arconic Corp., 6.13%, 2/15/28(b) | | 40,000 | 39,477 |
| Freeport-McMoRan, Inc., 4.13%, 3/01/28 | | 35,000 | 33,046 |
| | | | 72,523 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Oil & Gas Producers – 2.1% |
| Antero Midstream Partners L.P./Antero Midstream Finance Corp., | | | |
| 5.75%, 3/01/27(b) | | $ 75,000 | $ 72,549 |
| 5.38%, 6/15/29(b) | | 65,000 | 60,865 |
|
| Antero Resources Corp., 5.38%, 3/01/30(b) | | 9,000 | 8,432 |
| Apache Corp., | | | |
| 4.25%, 1/15/30 | | 50,000 | 45,688 |
| 5.10%, 9/01/40 | | 25,000 | 21,426 |
|
| Ascent Resources Utica Holdings LLC/ARU Finance Corp., 8.25%, 12/31/28(b) | | 10,000 | 9,686 |
| Cheniere Corpus Christi Holdings LLC, | | | |
| 5.88%, 3/31/25 | | 255,000 | 257,011 |
| 5.13%, 6/30/27 | | 76,000 | 76,338 |
| 3.70%, 11/15/29 | | 40,000 | 37,433 |
| Chevron Corp., | | | |
| 1.55%, 5/11/25 | | 80,000 | 75,629 |
| 2.95%, 5/16/26 | | 140,000 | 135,822 |
| Chevron USA, Inc., | | | |
| 3.85%, 1/15/28 | | 30,000 | 29,951 |
| 3.25%, 10/15/29 | | 20,000 | 19,018 |
| CNX Resources Corp., | | | |
| 7.25%, 3/14/27(b) | | 12,000 | 11,864 |
| 6.00%, 1/15/29(b) | | 40,000 | 37,002 |
|
| Columbia Pipeline Group, Inc., 4.50%, 6/01/25 | | 235,000 | 232,866 |
| CQP Holdco L.P./BIP-V Chinook Holdco LLC, 5.50%, 6/15/31(b) | | 60,000 | 55,842 |
| Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 6.00%, 2/01/29(b) | | 30,000 | 28,275 |
| DCP Midstream Operating L.P., | | | |
| 3.25%, 2/15/32 | | 75,000 | 64,087 |
| 5.60%, 4/01/44 | | 25,000 | 23,979 |
| Energy Transfer L.P., | | | |
| 4.05%, 3/15/25 | | 50,000 | 49,023 |
| 2.90%, 5/15/25 | | 80,000 | 76,359 |
| 5.75%, 2/15/33 | | 120,000 | 122,353 |
| EnLink Midstream LLC, | | | |
| 5.63%, 1/15/28(b) | | 25,000 | 24,622 |
| 5.38%, 6/01/29 | | 25,000 | 24,134 |
| EnLink Midstream Partners L.P., | | | |
| 4.85%, 7/15/26 | | 50,000 | 48,686 |
| 5.45%, 6/01/47 | | 25,000 | 20,875 |
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
|
| Enterprise Products Operating LLC, 3.75%, 2/15/25 | | $ 55,000 | $ 54,299 |
| EQT Corp., | | | |
| 5.68%, 10/01/25 | | 40,000 | 39,893 |
| 3.90%, 10/01/27 | | 100,000 | 94,605 |
| 7.00%, 2/01/30 | | 100,000 | 105,505 |
|
| Exxon Mobil Corp., 2.99%, 3/19/25 | | 80,000 | 77,909 |
| Global Partners L.P./GLP Finance Corp., 6.88%, 1/15/29 | | 100,000 | 93,500 |
| Harvest Midstream I L.P., 7.50%, 9/01/28(b) | | 35,000 | 34,246 |
| Hess Corp., 4.30%, 4/01/27 | | 50,000 | 49,092 |
| Hess Midstream Operations L.P., | | | |
| 5.13%, 6/15/28(b) | | 75,000 | 71,243 |
| 4.25%, 2/15/30(b) | | 25,000 | 22,227 |
| 5.50%, 10/15/30(b) | | 20,000 | 18,614 |
| Hilcorp Energy I L.P./Hilcorp Finance Co., | | | |
| 6.25%, 11/01/28(b) | | 20,000 | 19,155 |
| 6.00%, 2/01/31(b) | | 30,000 | 27,649 |
| 6.25%, 4/15/32(b) | | 40,000 | 37,395 |
| Kinder Morgan, Inc., | | | |
| 1.75%, 11/15/26 | | 60,000 | 54,219 |
| 7.75%, 1/15/32 | | 20,000 | 23,263 |
| 5.20%, 6/01/33 | | 40,000 | 39,708 |
| Marathon Petroleum Corp., | | | |
| 3.63%, 9/15/24 | | 80,000 | 78,406 |
| 4.70%, 5/01/25 | | 50,000 | 49,690 |
| MPLX L.P., | | | |
| 4.88%, 12/01/24 | | 12,000 | 11,954 |
| 4.88%, 6/01/25 | | 735,000 | 732,406 |
| 4.13%, 3/01/27 | | 180,000 | 175,733 |
| 4.25%, 12/01/27 | | 90,000 | 87,995 |
| 2.65%, 8/15/30 | | 90,000 | 76,897 |
| 5.00%, 3/01/33 | | 40,000 | 39,303 |
|
| Murphy Oil Corp., 6.38%, 7/15/28 | | 35,000 | 34,869 |
| Murphy Oil USA, Inc., 3.75%, 2/15/31(b) | | 25,000 | 21,386 |
| New Fortress Energy, Inc., 6.75%, 9/15/25(b) | | 115,000 | 109,519 |
| Northern Oil and Gas, Inc., 8.13%, 3/01/28(b) | | 65,000 | 64,188 |
| Occidental Petroleum Corp., | | | |
| 8.50%, 7/15/27 | | 65,000 | 71,573 |
| 6.38%, 9/01/28 | | 45,000 | 46,933 |
| 6.13%, 1/01/31 | | 25,000 | 26,134 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Oil & Gas Producers (Continued) |
| Occidental Petroleum Corp., | | | |
| 6.45%, 9/15/36 | | $ 25,000 | $ 26,531 |
| ONEOK, Inc., | | | |
| 2.75%, 9/01/24 | | 50,000 | 48,472 |
| 2.20%, 9/15/25 | | 80,000 | 74,692 |
| 5.85%, 1/15/26 | | 77,000 | 78,533 |
| 4.00%, 7/13/27 | | 255,000 | 245,545 |
| 6.35%, 1/15/31 | | 60,000 | 63,452 |
|
| Ovintiv Exploration, Inc., 5.38%, 1/01/26 | | 10,000 | 10,034 |
| Permian Resources Operating LLC, 5.88%, 7/01/29(b) | | 10,000 | 9,463 |
| Southwestern Energy Co., 8.38%, 9/15/28 | | 15,000 | 15,705 |
| Sunoco L.P./Sunoco Finance Corp., 4.50%, 5/15/29 | | 35,000 | 31,532 |
| Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 5.50%, 1/15/28(b) | | 100,000 | 92,517 |
| Targa Resources Corp., | | | |
| 5.20%, 7/01/27 | | 160,000 | 160,263 |
| 4.20%, 2/01/33 | | 40,000 | 36,341 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., | | | |
| 6.50%, 7/15/27 | | 17,000 | 17,322 |
| 5.00%, 1/15/28 | | 46,000 | 44,980 |
| 5.50%, 3/01/30 | | 25,000 | 24,355 |
| 4.88%, 2/01/31 | | 70,000 | 65,969 |
| 4.00%, 1/15/32 | | 60,000 | 52,726 |
| Transcontinental Gas Pipe Line Co. LLC, | | | |
| 7.85%, 2/01/26 | | 105,000 | 112,595 |
| 3.25%, 5/15/30 | | 30,000 | 27,363 |
|
| Valero Energy Corp., 2.80%, 12/01/31 | | 30,000 | 25,342 |
| Venture Global Calcasieu Pass LLC, 6.25%, 1/15/30(b) | | 78,000 | 79,093 |
| Williams (The) Cos., Inc., 2.60%, 3/15/31 | | 170,000 | 144,427 |
| | | | 5,646,575 |
| Oil, Gas Services & Equipment – 0.0%(e) |
| Transocean, Inc., | | | |
| 11.50%, 1/30/27(b) | | 23,000 | 23,540 |
| 8.75%, 2/15/30(b) | | 67,000 | 67,602 |
| | | | 91,142 |
| | | Par (a) | Value |
| Publishing & Broadcasting – 0.0%(e) |
| Nexstar Media, Inc., 5.63%, 7/15/27(b) | | $100,000 | $ 93,918 |
| Real Estate Investment Trusts – 0.7% |
| American Tower Corp., | | | |
| 1.45%, 9/15/26 | | 65,000 | 58,019 |
| 3.13%, 1/15/27 | | 20,000 | 18,821 |
| 3.65%, 3/15/27 | | 110,000 | 105,250 |
| 3.55%, 7/15/27 | | 150,000 | 142,312 |
| Crown Castle, Inc., | | | |
| 3.65%, 9/01/27 | | 80,000 | 76,436 |
| 3.80%, 2/15/28 | | 17,000 | 16,282 |
|
| EPR Properties, 4.75%, 12/15/26 | | 20,000 | 18,208 |
| Equinix, Inc., 1.45%, 5/15/26 | | 70,000 | 63,237 |
| GLP Capital L.P./GLP Financing II, Inc., | | | |
| 5.38%, 4/15/26 | | 105,000 | 103,934 |
| 4.00%, 1/15/31 | | 25,000 | 21,875 |
| 3.25%, 1/15/32 | | 100,000 | 82,001 |
|
| Iron Mountain Information Management Services, Inc., 5.00%, 7/15/32(b) | | 60,000 | 52,560 |
| Iron Mountain, Inc., | | | |
| 5.00%, 7/15/28(b) | | 75,000 | 70,592 |
| 4.88%, 9/15/29(b) | | 75,000 | 68,405 |
| 5.25%, 7/15/30(b) | | 40,000 | 36,841 |
| 4.50%, 2/15/31(b) | | 30,000 | 26,084 |
| 5.63%, 7/15/32(b) | | 50,000 | 45,411 |
| Omega Healthcare Investors, Inc., | | | |
| 4.50%, 1/15/25 | | 50,000 | 48,148 |
| 4.50%, 4/01/27 | | 80,000 | 74,733 |
| 4.75%, 1/15/28 | | 60,000 | 55,602 |
|
| Prologis L.P., 4.75%, 6/15/33 | | 40,000 | 40,066 |
| Public Storage, | | | |
| 1.50%, 11/09/26 | | 20,000 | 17,967 |
| 1.95%, 11/09/28 | | 125,000 | 109,784 |
| 3.39%, 5/01/29 | | 25,000 | 23,486 |
| 2.25%, 11/09/31 | | 120,000 | 100,665 |
| Realty Income Corp., | | | |
| 5.05%, 1/13/26 | | 45,000 | 45,007 |
| 5.63%, 10/13/32 | | 30,000 | 31,070 |
| Simon Property Group L.P., | | | |
| 3.50%, 9/01/25 | | 65,000 | 62,768 |
| 1.38%, 1/15/27 | | 10,000 | 8,868 |
|
| Uniti Group L.P./Uniti Group Finance, Inc./CSL Capital LLC, 10.50%, 2/15/28(b) | | 10,000 | 9,569 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Real Estate Investment Trusts (Continued) |
|
| VICI Properties L.P., 5.13%, 5/15/32 | | $ 29,000 | $ 27,676 |
| VICI Properties L.P./VICI Note Co., Inc., | | | |
| 4.63%, 6/15/25(b) | | 35,000 | 33,998 |
| 5.75%, 2/01/27(b) | | 100,000 | 99,358 |
| 4.13%, 8/15/30(b) | | 50,000 | 44,578 |
|
| Welltower OP LLC, 4.00%, 6/01/25 | | 57,000 | 55,563 |
| XHR L.P., 6.38%, 8/15/25(b) | | 20,000 | 19,721 |
| | | | 1,914,895 |
| Retail - Consumer Staples – 0.1% |
| Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertsons LLC, | | | |
| 4.63%, 1/15/27(b) | | 50,000 | 48,335 |
| 6.50%, 2/15/28(b) | | 34,000 | 34,425 |
| 4.88%, 2/15/30(b) | | 65,000 | 60,612 |
|
| Costco Wholesale Corp., 1.38%, 6/20/27 | | 140,000 | 126,404 |
| Ingles Markets, Inc., 4.00%, 6/15/31(b) | | 35,000 | 30,226 |
| Walmart, Inc., 1.50%, 9/22/28 | | 75,000 | 66,338 |
| | | | 366,340 |
| Retail - Discretionary – 0.4% |
| Asbury Automotive Group, Inc., 5.00%, 2/15/32(b) | | 55,000 | 47,390 |
| AutoZone, Inc., 4.50%, 2/01/28 | | 40,000 | 39,914 |
| Bath & Body Works, Inc., | | | |
| 5.25%, 2/01/28 | | 25,000 | 23,900 |
| 7.50%, 6/15/29 | | 100,000 | 101,580 |
| 6.63%, 10/01/30(b) | | 35,000 | 33,599 |
|
| Builders FirstSource, Inc., 6.38%, 6/15/32(b) | | 85,000 | 84,550 |
| Dick's Sporting Goods, Inc., 3.15%, 1/15/32 | | 80,000 | 66,330 |
| Genuine Parts Co., 1.75%, 2/01/25 | | 190,000 | 179,609 |
| Home Depot (The), Inc., 4.00%, 9/15/25 | | 105,000 | 104,707 |
| Lowe's Cos., Inc., | | | |
| 4.00%, 4/15/25 | | 45,000 | 44,429 |
| 4.40%, 9/08/25 | | 65,000 | 64,746 |
| 3.35%, 4/01/27 | | 55,000 | 53,015 |
| 3.10%, 5/03/27 | | 95,000 | 90,579 |
| 2.63%, 4/01/31 | | 10,000 | 8,608 |
| | | Par (a) | Value |
| Retail - Discretionary (Continued) |
|
| Macy's Retail Holdings LLC, 5.88%, 4/01/29(b) | | $ 5,000 | $ 4,580 |
| Ross Stores, Inc., 4.70%, 4/15/27 | | 2,000 | 1,988 |
| | | | 949,524 |
| Semiconductors – 0.5% |
| Amkor Technology, Inc., 6.63%, 9/15/27(b) | | 100,000 | 100,099 |
| Analog Devices, Inc., | | | |
| 3.50%, 12/05/26 | | 70,000 | 68,190 |
| 1.70%, 10/01/28 | | 40,000 | 35,238 |
| 2.10%, 10/01/31 | | 30,000 | 25,523 |
|
| Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 1/15/27 | | 390,000 | 378,930 |
| Broadcom, Inc., | | | |
| 3.46%, 9/15/26 | | 70,000 | 67,069 |
| 4.00%, 4/15/29(b) | | 145,000 | 136,555 |
| 2.60%, 2/15/33(b) | | 270,000 | 213,079 |
|
| Intel Corp., 3.75%, 3/25/27 | | 100,000 | 98,003 |
| Micron Technology, Inc., 4.98%, 2/06/26 | | 30,000 | 29,853 |
| Texas Instruments, Inc., | | | |
| 1.90%, 9/15/31 | | 54,000 | 45,460 |
| 4.90%, 3/14/33 | | 135,000 | 140,830 |
| | | | 1,338,829 |
| Software – 0.2% |
| AthenaHealth Group, Inc., 6.50%, 2/15/30(b) | | 24,000 | 19,712 |
| Fortinet, Inc., 2.20%, 3/15/31 | | 10,000 | 8,281 |
| Gen Digital, Inc., 7.13%, 9/30/30(b) | | 43,000 | 43,194 |
| Intuit, Inc., 1.65%, 7/15/30 | | 16,000 | 13,334 |
| McAfee Corp., 7.38%, 2/15/30(b) | | 22,000 | 18,262 |
| Oracle Corp., | | | |
| 1.65%, 3/25/26 | | 180,000 | 165,283 |
| 4.65%, 5/06/30 | | 25,000 | 24,508 |
| 2.88%, 3/25/31 | | 230,000 | 198,217 |
| 4.90%, 2/06/33 | | 55,000 | 54,187 |
|
| Roper Technologies, Inc., 1.00%, 9/15/25 | | 45,000 | 41,271 |
| VMware, Inc., | | | |
| 1.00%, 8/15/24 | | 65,000 | 61,539 |
| 4.50%, 5/15/25 | | 10,000 | 9,900 |
| | | | 657,688 |
| Specialty Finance – 0.4% |
| Air Lease Corp., 3.38%, 7/01/25 | | 45,000 | 43,122 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Specialty Finance (Continued) |
| American Express Co., | | | |
| 2.50%, 7/30/24 | | $ 50,000 | $ 48,471 |
| 3.95%, 8/01/25 | | 70,000 | 68,639 |
| 4.20%, 11/06/25 | | 50,000 | 49,526 |
| 4.05%, 5/03/29 | | 43,000 | 42,107 |
| (SOFR + 1.84%), 5.04%, 5/01/34(i) | | 80,000 | 80,177 |
| Capital One Financial Corp., | | | |
| (SOFR + 1.37%), 4.17%, 5/09/25(i) | | 85,000 | 82,764 |
| (SOFR + 2.16%), 4.99%, 7/24/26(i) | | 45,000 | 43,923 |
|
| Credit Acceptance Corp., 6.63%, 3/15/26 | | 100,000 | 95,566 |
| Discover Financial Services, 6.70%, 11/29/32 | | 15,000 | 15,871 |
| Fortress Transportation and Infrastructure Investors LLC, | | | |
| 6.50%, 10/01/25(b) | | 22,000 | 21,726 |
| 9.75%, 8/01/27(b) | | 320,000 | 333,259 |
|
| MGIC Investment Corp., 5.25%, 8/15/28 | | 50,000 | 47,782 |
| Nationstar Mortgage Holdings, Inc., | | | |
| 6.00%, 1/15/27(b) | | 100,000 | 94,750 |
| 5.50%, 8/15/28(b) | | 25,000 | 22,313 |
| 5.13%, 12/15/30(b) | | 80,000 | 65,528 |
|
| United Wholesale Mortgage LLC, 5.75%, 6/15/27(b) | | 30,000 | 27,334 |
| | | | 1,182,858 |
| Steel – 0.1% |
| Big River Steel LLC/BRS Finance Corp., 6.63%, 1/31/29(b) | | 24,000 | 23,802 |
| Cleveland-Cliffs, Inc., 5.88%, 6/01/27 | | 50,000 | 49,088 |
| Nucor Corp., 3.13%, 4/01/32 | | 50,000 | 44,429 |
| Reliance Steel & Aluminum Co., 1.30%, 8/15/25 | | 40,000 | 36,740 |
| | | | 154,059 |
| Technology Hardware – 0.4% |
| Apple, Inc., | | | |
| 1.40%, 8/05/28 | | 50,000 | 43,985 |
| 3.35%, 8/08/32 | | 25,000 | 23,722 |
| CDW LLC/CDW Finance Corp., | | | |
| 5.50%, 12/01/24 | | 40,000 | 39,917 |
| | | Par (a) | Value |
| Technology Hardware (Continued) |
| CDW LLC/CDW Finance Corp., | | | |
| 2.67%, 12/01/26 | | $ 9,000 | $ 8,175 |
| Dell International LLC/EMC Corp., | | | |
| 5.85%, 7/15/25 | | 80,000 | 81,702 |
| 6.10%, 7/15/27 | | 30,000 | 31,583 |
|
| Flex Ltd., 4.88%, 6/15/29 | | 90,000 | 87,302 |
| Hewlett Packard Enterprise Co., | | | |
| 5.90%, 10/01/24 | | 100,000 | 101,064 |
| 6.10%, 4/01/26 | | 10,000 | 10,087 |
|
| Imola Merger Corp., 4.75%, 5/15/29(b) | | 33,000 | 28,576 |
| Jabil, Inc., | | | |
| 1.70%, 4/15/26 | | 65,000 | 59,022 |
| 4.25%, 5/15/27 | | 70,000 | 68,256 |
| 5.45%, 2/01/29 | | 30,000 | 30,195 |
|
| Motorola Solutions, Inc., 4.60%, 5/23/29 | | 100,000 | 98,377 |
| Seagate HDD Cayman, 9.63%, 12/01/32(b) | | 66,000 | 72,374 |
| Teledyne Technologies, Inc., 2.75%, 4/01/31 | | 30,000 | 25,494 |
| ViaSat, Inc., | | | |
| 5.63%, 4/15/27(b) | | 100,000 | 92,750 |
| 6.50%, 7/15/28(b) | | 115,000 | 91,236 |
|
| Western Digital Corp., 4.75%, 2/15/26 | | 10,000 | 9,503 |
| Xerox Holdings Corp., 5.50%, 8/15/28(b) | | 25,000 | 21,550 |
| | | | 1,024,870 |
| Technology Services – 0.8% |
| FactSet Research Systems, Inc., 2.90%, 3/01/27 | | 150,000 | 140,220 |
| Fidelity National Information Services, Inc., 4.50%, 7/15/25 | | 50,000 | 49,501 |
| Fiserv, Inc., 5.60%, 3/02/33 | | 50,000 | 52,138 |
| Gartner, Inc., | | | |
| 4.50%, 7/01/28(b) | | 60,000 | 56,386 |
| 3.63%, 6/15/29(b) | | 20,000 | 17,705 |
| 3.75%, 10/01/30(b) | | 51,000 | 44,537 |
| International Business Machines Corp., | | | |
| 4.00%, 7/27/25 | | 465,000 | 459,991 |
| 3.30%, 5/15/26 | | 200,000 | 193,905 |
| 2.20%, 2/09/27 | | 100,000 | 92,458 |
| 4.15%, 7/27/27 | | 285,000 | 282,819 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Technology Services (Continued) |
|
| Kyndryl Holdings, Inc., 2.70%, 10/15/28 | | $ 5,000 | $ 4,223 |
| Mastercard, Inc., | | | |
| 3.30%, 3/26/27 | | 130,000 | 125,979 |
| 4.88%, 3/09/28 | | 90,000 | 93,360 |
| 1.90%, 3/15/31 | | 22,000 | 18,787 |
|
| Neptune Bidco U.S., Inc., 9.29%, 4/15/29(b) | | 35,000 | 32,944 |
| S&P Global, Inc., | | | |
| 2.45%, 3/01/27 | | 150,000 | 140,731 |
| 1.25%, 8/15/30 | | 110,000 | 88,756 |
|
| Verisk Analytics, Inc., 4.00%, 6/15/25 | | 83,000 | 81,286 |
| Visa, Inc., 1.90%, 4/15/27 | | 100,000 | 92,731 |
| | | | 2,068,457 |
| Telecommunications – 0.5% |
| AT&T, Inc., | | | |
| 1.70%, 3/25/26 | | 375,000 | 346,253 |
| 2.30%, 6/01/27 | | 75,000 | 68,788 |
|
| Frontier Communications Holdings LLC, 5.88%, 10/15/27(b) | | 10,000 | 9,205 |
| Level 3 Financing, Inc., 10.50%, 5/15/30(b) | | 35,000 | 33,506 |
| T-Mobile USA, Inc., | | | |
| 3.50%, 4/15/25 | | 425,000 | 413,497 |
| 2.88%, 2/15/31 | | 46,000 | 39,858 |
| 3.50%, 4/15/31 | | 179,000 | 161,706 |
| 5.20%, 1/15/33 | | 245,000 | 249,458 |
|
| Verizon Communications, Inc., 3.00%, 3/22/27 | | 100,000 | 95,388 |
| | | | 1,417,659 |
| Tobacco & Cannabis – 0.5% |
| Altria Group, Inc., | | | |
| 2.35%, 5/06/25 | | 260,000 | 247,812 |
| 2.63%, 9/16/26 | | 260,000 | 243,466 |
| 3.40%, 5/06/30 | | 30,000 | 26,744 |
| Philip Morris International, Inc., | | | |
| 5.13%, 11/15/24 | | 90,000 | 90,561 |
| 1.50%, 5/01/25 | | 100,000 | 94,076 |
| 5.63%, 11/17/29 | | 270,000 | 282,013 |
| 2.10%, 5/01/30 | | 60,000 | 50,418 |
| 5.75%, 11/17/32 | | 85,000 | 89,272 |
| 5.38%, 2/15/33 | | 170,000 | 173,394 |
|
| Vector Group Ltd., 5.75%, 2/01/29(b) | | 60,000 | 53,678 |
| | | | 1,351,434 |
| | | Par (a) | Value |
| Transportation & Logistics – 0.2% |
| American Airlines, Inc., 11.75%, 7/15/25(b) | | $ 25,000 | $ 27,501 |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | |
| 5.50%, 4/20/26(b) | | 20,000 | 19,640 |
| 5.75%, 4/20/29(b) | | 99,000 | 94,078 |
|
| Delta Air Lines, Inc., 7.38%, 1/15/26 | | 75,000 | 79,048 |
| Rand Parent LLC, 8.50%, 2/15/30(b) | | 23,000 | 20,837 |
| Ryder System, Inc., 5.65%, 3/01/28 | | 50,000 | 51,244 |
| Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.00%, 9/20/25(b) | | 29,920 | 30,200 |
| Union Pacific Corp., | | | |
| 3.75%, 7/15/25 | | 90,000 | 88,658 |
| 2.75%, 3/01/26 | | 10,000 | 9,599 |
| United Airlines, Inc., | | | |
| 4.38%, 4/15/26(b) | | 30,000 | 28,651 |
| 4.63%, 4/15/29(b) | | 148,000 | 133,944 |
|
| United Parcel Service, Inc., 4.45%, 4/01/30 | | 15,000 | 15,199 |
| | | | 598,599 |
Total Corporate Bonds
(Cost $47,026,022) | 45,080,732 |
|
| Foreign Issuer Bonds – 3.4% |
| Australia – 0.3% |
| BHP Billiton Finance USA Ltd., | | | |
| 4.75%, 2/28/28 | | 270,000 | 274,410 |
| 4.90%, 2/28/33 | | 65,000 | 66,649 |
|
| FMG Resources August 2006 Pty. Ltd., 6.13%, 4/15/32(b) | | 116,000 | 112,234 |
| Mineral Resources Ltd., 8.50%, 5/01/30(b) | | 60,000 | 61,050 |
| Rio Tinto Finance USA Ltd., 7.13%, 7/15/28 | | 8,000 | 9,041 |
| Rio Tinto Finance USA PLC, 5.00%, 3/09/33 | | 110,000 | 113,612 |
| Westpac Banking Corp., 3.74%, 8/26/25 | | 145,000 | 141,933 |
| | | | 778,929 |
| Canada – 0.9% |
| 1011778 B.C. ULC/New Red Finance, Inc., | | | |
| 3.88%, 1/15/28(b) | | 95,000 | 89,104 |
| 4.38%, 1/15/28(b) | | 12,000 | 11,218 |
| 4.00%, 10/15/30(b) | | 163,000 | 142,296 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Canada (Continued) |
| Bank of Montreal, | | | |
| 4.25%, 9/14/24 | | $ 85,000 | $ 83,892 |
| 3.70%, 6/07/25 | | 215,000 | 209,328 |
| Bank of Nova Scotia (The), | | | |
| 1.05%, 3/02/26 | | 65,000 | 58,321 |
| 1.35%, 6/24/26 | | 160,000 | 143,859 |
|
| Baytex Energy Corp., 8.75%, 4/01/27(b) | | 75,000 | 77,154 |
| Brookfield Corp., 4.00%, 1/15/25 | | 50,000 | 48,893 |
| Canadian Imperial Bank of Commerce, | | | |
| 3.95%, 8/04/25 | | 50,000 | 48,874 |
| 0.95%, 10/23/25 | | 170,000 | 154,823 |
|
| Canadian Natural Resources Ltd., 2.05%, 7/15/25 | | 80,000 | 75,280 |
| Enbridge, Inc., 4.25%, 12/01/26 | | 90,000 | 88,587 |
| Fairfax Financial Holdings Ltd., 3.38%, 3/03/31 | | 25,000 | 21,264 |
| GFL Environmental, Inc., | | | |
| 3.75%, 8/01/25(b) | | 25,000 | 24,168 |
| 4.75%, 6/15/29(b) | | 61,000 | 56,773 |
|
| MEG Energy Corp., 5.88%, 2/01/29(b) | | 20,000 | 19,202 |
| Methanex Corp., 5.25%, 12/15/29 | | 75,000 | 70,379 |
| Open Text Holdings, Inc., | | | |
| 4.13%, 2/15/30(b) | | 53,000 | 45,256 |
| 4.13%, 12/01/31(b) | | 50,000 | 41,383 |
| Rogers Communications, Inc., | | | |
| 3.20%, 3/15/27(b) | | 75,000 | 70,330 |
| 3.80%, 3/15/32(b) | | 70,000 | 63,031 |
| Royal Bank of Canada, | | | |
| 3.97%, 7/26/24 | | 65,000 | 64,115 |
| 0.65%, 7/29/24 | | 60,000 | 56,829 |
| 0.75%, 10/07/24 | | 70,000 | 65,795 |
| 1.20%, 4/27/26 | | 70,000 | 63,715 |
| 2.05%, 1/21/27 | | 100,000 | 91,432 |
|
| Taseko Mines Ltd., 7.00%, 2/15/26(b) | | 50,000 | 46,129 |
| Tervita Corp., 11.00%, 12/01/25(b) | | 13,000 | 13,856 |
| Toronto-Dominion Bank (The), | | | |
| 3.77%, 6/06/25 | | 150,000 | 146,492 |
| 0.75%, 1/06/26 | | 160,000 | 143,759 |
| 4.69%, 9/15/27 | | 80,000 | 79,602 |
| | | | 2,415,139 |
| | | Par (a) | Value |
| Germany – 0.1% |
| Deutsche Bank A.G., | | | |
| (SOFR + 3.19%), 6.12%, 7/14/26(i) | | $150,000 | $ 148,115 |
| (SOFR + 1.22%), 2.31%, 11/16/27(i) | | 150,000 | 129,831 |
| | | | 277,946 |
| Ireland – 0.2% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, | | | |
| 1.65%, 10/29/24 | | 300,000 | 280,515 |
| 3.30%, 1/30/32 | | 195,000 | 159,719 |
| | | | 440,234 |
| Japan – 0.7% |
| Honda Motor Co. Ltd., | | | |
| 2.27%, 3/10/25 | | 60,000 | 57,536 |
| 2.53%, 3/10/27 | | 70,000 | 65,755 |
| Mitsubishi UFJ Financial Group, Inc., | | | |
| (1Y US Treasury CMT + 1.70%), 4.79%, 7/18/25(i) | | 200,000 | 198,197 |
| (1Y US Treasury CMT + 0.45%), 0.96%, 10/11/25(i) | | 200,000 | 186,813 |
| (1Y US Treasury CMT + 0.83%), 2.34%, 1/19/28(i) | | 275,000 | 249,126 |
| Mizuho Financial Group, Inc., | | | |
| (1.25% - SOFR), 1.24%, 7/10/24(i) | | 200,000 | 198,266 |
| (3M USD LIBOR + 1.00%), 3.92%, 9/11/24(i) | | 200,000 | 198,503 |
|
| Nomura Holdings, Inc., 1.85%, 7/16/25 | | 200,000 | 183,700 |
| Sumitomo Mitsui Financial Group, Inc., | | | |
| 2.45%, 9/27/24 | | 200,000 | 192,102 |
| 1.40%, 9/17/26 | | 200,000 | 177,593 |
| 5.71%, 1/13/30 | | 200,000 | 207,051 |
| | | | 1,914,642 |
| Luxembourg – 0.0%(e) |
| Altice France Holding S.A., 10.50%, 5/15/27(b) | | 25,000 | 18,462 |
| Mexico – 0.0%(e) |
| Coca-Cola Femsa S.A.B. de C.V., 2.75%, 1/22/30 | | 150,000 | 134,559 |
| Southern Copper Corp., 3.88%, 4/23/25 | | 5,000 | 4,901 |
| | | | 139,460 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Netherlands – 0.0%(e) |
| Ziggo Bond Co. B.V., | | | |
| 6.00%, 1/15/27(b) | | $ 30,000 | $ 28,461 |
| 5.13%, 2/28/30(b) | | 30,000 | 24,377 |
| | | | 52,838 |
| Spain – 0.3% |
| Banco Santander S.A., | | | |
| 2.71%, 6/27/24 | | 200,000 | 193,424 |
| (1Y US Treasury CMT + 0.45%), 0.70%, 6/30/24(i) | | 400,000 | 396,242 |
| 1.85%, 3/25/26 | | 200,000 | 181,091 |
| | | | 770,757 |
| Switzerland – 0.0%(e) |
| Novartis Capital Corp., | | | |
| 3.10%, 5/17/27 | | 15,000 | 14,503 |
| 2.20%, 8/14/30 | | 10,000 | 8,843 |
| | | | 23,346 |
| United Kingdom – 0.9% |
| Astrazeneca Finance LLC, 1.20%, 5/28/26 | | 100,000 | 91,519 |
| AstraZeneca PLC, 3.13%, 6/12/27 | | 49,000 | 47,100 |
| Barclays PLC, (3M USD LIBOR + 1.61%), 3.93%, 5/07/25(i) | | 205,000 | 200,431 |
| BAT Capital Corp., | | | |
| 3.22%, 8/15/24 | | 98,000 | 95,334 |
| 2.26%, 3/25/28 | | 48,000 | 41,675 |
| 4.91%, 4/02/30 | | 71,000 | 68,541 |
| 7.75%, 10/19/32 | | 35,000 | 38,778 |
|
| BAT International Finance PLC, 4.45%, 3/16/28 | | 100,000 | 96,060 |
| HSBC Holdings PLC, | | | |
| (SOFR + 1.51%), 4.18%, 12/09/25(i) | | 260,000 | 253,941 |
| (SOFR + 1.43%), 3.00%, 3/10/26(i) | | 400,000 | 380,788 |
| (SOFR + 4.25%), 8.11%, 11/03/33(i) | | 200,000 | 225,702 |
|
| Lloyds Banking Group PLC, 4.58%, 12/10/25 | | 200,000 | 191,451 |
| Reynolds American, Inc., 4.45%, 6/12/25 | | 195,000 | 191,801 |
| Santander UK Group Holdings PLC, (SOFR + 0.79%), 1.09%, 3/15/25(i) | | 300,000 | 285,551 |
| Unilever Capital Corp., 3.38%, 3/22/25 | | 100,000 | 97,547 |
| Virgin Media Secured Finance PLC, 5.50%, 5/15/29(b) | | 50,000 | 45,911 |
| | | Par (a) | Value |
| United Kingdom (Continued) |
|
| Virgin Media Vendor Financing Notes IV DAC, 5.00%, 7/15/28(b) | | $ 50,000 | $ 44,824 |
| Vmed O2 UK Financing I PLC, 4.75%, 7/15/31(b) | | 200,000 | 170,428 |
| | | | 2,567,382 |
Total Foreign Issuer Bonds
(Cost $9,746,562) | 9,399,135 |
| | | Number
of Shares | |
| Master Limited Partnerships – 1.0% |
| Oil & Gas Producers – 1.0% |
| DCP Midstream L.P. | | 63,956 | 2,653,534 |
Total Master Limited Partnerships
(Cost $2,678,011) | 2,653,534 |
| | | Par (a) | |
| Mortgage-Backed Securities – 17.1% |
| Federal Home Loan Mortgage Corporation – 1.2% |
| Pool, | | | |
| 3.00%, 3/01/30 - 8/01/50 | | $ 585,095 | 542,074 |
| 2.50%, 4/01/32 - 7/01/50 | | 584,048 | 541,494 |
| 4.50%, 4/01/49 | | 40,688 | 40,510 |
| 2.00%, 10/01/50 - 1/01/52 | | 1,249,100 | 1,041,676 |
| 2.50%, 9/01/51(c) | | 1,372,102 | 1,189,260 |
| | | | 3,355,014 |
Federal Home Loan Mortgage Corporation Gold –
0.1% |
Pool,
3.00%, 3/01/46 - 12/01/46 | | 226,879 | 208,425 |
| Federal National Mortgage Association – 3.1% |
| Pool, | | | |
| 2.50%, 10/01/35 - 1/01/52 | | 4,003,675 | 3,495,700 |
| 3.50%, 8/01/45 - 2/01/51 | | 536,183 | 503,576 |
| 3.50%, 1/01/48(c) | | 1,045,378 | 986,271 |
| 4.00%, 9/01/48 - 3/01/51 | | 1,617,176 | 1,564,586 |
| 3.00%, 11/01/48 | | 18,262 | 16,657 |
| 4.50%, 1/01/49 - 2/01/50 | | 377,525 | 373,870 |
| 2.00%, 9/01/50 - 11/01/51 | | 1,299,355 | 1,084,381 |
| 5.00%, 2/01/53 - 4/01/53 | | 347,227 | 345,858 |
| 5.50%, 2/01/53 | | 197,835 | 202,535 |
| | | | 8,573,434 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Government National Mortgage Association – 0.7% |
| Pool, | | | |
| 1.50%, 5/01/53 (j) | | $ 100,000 | $ 82,127 |
| 2.50%, 5/01/53 (j) | | 469,000 | 414,360 |
| 3.00%, 5/01/53 (j) | | 25,000 | 22,813 |
| 3.50%, 5/01/53 (j) | | 225,000 | 211,201 |
| 4.00%, 5/01/53 (j) | | 750,000 | 721,084 |
| 4.50%, 5/01/53 (j) | | 300,000 | 294,328 |
| 5.00%, 5/01/53 (j) | | 225,000 | 223,989 |
| | | | 1,969,902 |
| Government National Mortgage Association II – 1.7% |
| Pool, | | | |
| 2.50%, 12/20/46 - 8/20/51 | | 1,124,127 | 991,284 |
| 3.50%, 1/20/48 - 8/20/48 | | 891,222 | 848,554 |
| 4.50%, 9/20/48 - 1/20/50 | | 117,617 | 115,855 |
| 3.00%, 4/20/49 - 7/20/50 | | 1,353,677 | 1,246,928 |
| 2.00%, 2/20/51 - 10/20/51 | | 1,781,684 | 1,528,827 |
| | | | 4,731,448 |
| Uniform Mortgage-Backed Securities – 3.5% |
| Pool, | | | |
| 1.50%, 5/01/38 - 5/01/53(j) | | 1,066,188 | 873,775 |
| 2.00%, 5/01/38 - 5/01/53(j) | | 5,272,812 | 4,496,484 |
| 2.50%, 5/01/38 (j) | | 324,000 | 301,080 |
| 3.00%, 5/01/38 - 5/01/53(j) | | 2,342,000 | 2,126,346 |
| 3.50%, 5/01/38 - 5/01/53(j) | | 617,000 | 589,898 |
| 4.00%, 5/01/38 - 5/01/53(j) | | 157,000 | 153,268 |
| 4.50%, 5/01/53 (j) | | 586,000 | 572,838 |
| 5.00%, 5/01/53 (j) | | 300,000 | 298,277 |
| 5.50%, 5/01/53 (j) | | 225,000 | 226,846 |
| | | | 9,638,812 |
| Whole Loan – 6.8% |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2014-C03, Class 1M2, (1M USD LIBOR + 3.00%, 3.00% Floor), 8.02%, 7/25/24(g) | | 539,494 | 549,533 |
| Series 2017-C03, Class 1B1, (1M USD LIBOR + 4.85%), 9.87%, 10/25/29(g) | | 430,000 | 471,814 |
| Series 2017-C04, Class 2B1, (1M USD LIBOR + 5.05%), 10.07%, 11/25/29(g) | | 450,000 | 489,331 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| FNMA Connecticut Avenue Securities, | | | |
| Series 2017-C06, Class 2B1, (1M USD LIBOR + 4.45%, 4.45% Floor), 9.47%, 2/25/30(g) | | $200,000 | $217,517 |
| Series 2017-C07, Class 1B1, (1M USD LIBOR + 4.00%, 4.00% Floor), 9.02%, 5/25/30(g) | | 250,000 | 266,201 |
| Series 2017-C07, Class 2B1, (1M USD LIBOR + 4.45%, 4.45% Floor), 9.47%, 5/25/30(g) | | 217,000 | 233,817 |
| Series 2018-C02, Class 2B1, (1M USD LIBOR + 4.00%, 4.00% Floor), 9.02%, 8/25/30(g) | | 675,000 | 727,183 |
| Series 2018-C03, Class 1EB2, (1M USD LIBOR + 0.85%, 0.85% Floor), 5.87%, 10/25/30(g) | | 388,076 | 385,981 |
| Series 2018-C05, Class 1B1, (1M USD LIBOR + 4.25%, 4.25% Floor), 9.27%, 1/25/31(g) | | 340,000 | 370,950 |
| Series 2021-R02, Class 2M1, (30D Average SOFR + 0.90%), 5.72%, 11/25/41(b)(g) | | 511,038 | 506,938 |
| Series 2021-R02, Class 2B1, (30D Average SOFR + 3.30%), 8.12%, 11/25/41(b)(g) | | 350,000 | 337,312 |
| FHLMC STACR Debt Notes, | | | |
| Series 2016-DNA4, Class M3, (1M USD LIBOR + 3.80%), 8.82%, 3/25/29(g) | | 422,393 | 439,261 |
| Series 2017-HQA3, Class M2, (1M USD LIBOR + 2.35%), 7.37%, 4/25/30(g) | | 503,404 | 508,438 |
| Series 2018-HQA1, Class M2, (1M USD LIBOR + 2.30%), 7.32%, 9/25/30(g) | | 312,959 | 315,230 |
| Series 2022-HQA2, Class M1A, (30D Average SOFR + 2.65%), 7.47%, 7/25/42(b)(g) | | 310,776 | 315,122 |
| Connecticut Avenue Securities Trust, | | | |
| Series 2018-R07, Class 1M2, (1M USD LIBOR + 2.40%), 7.42%, 4/25/31(b)(g) | | 93,856 | 94,002 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Connecticut Avenue Securities Trust, | | | |
| Series 2018-R07, Class 1M2C, (1M USD LIBOR + 2.40%), 7.42%, 4/25/31(b)(g) | | $ 108,369 | $ 108,373 |
| Series 2019-R01, Class 2M2, (1M USD LIBOR + 2.45%), 7.47%, 7/25/31(b)(g) | | 104,708 | 104,968 |
| Series 2019-R01, Class 2M2C, (1M USD LIBOR + 2.45%), 7.47%, 7/25/31(b)(g) | | 184,440 | 184,480 |
| Series 2019-R02, Class 1M2, (1M USD LIBOR + 2.30%), 7.32%, 8/25/31(b)(g) | | 16,338 | 16,338 |
| Series 2019-R07, Class 1M2, (1M USD LIBOR + 2.10%), 7.12%, 10/25/39(b)(g) | | 34,721 | 34,721 |
| Series 2020-R02, Class 2M2, (1M USD LIBOR + 2.00%), 7.02%, 1/25/40(b)(g) | | 1,039,251 | 1,040,255 |
| Series 2020-R01, Class 1M2, (1M USD LIBOR + 2.05%), 7.07%, 1/25/40(b)(g) | | 1,028,501 | 1,031,066 |
| Series 2021-R01, Class 1M2, (30D Average SOFR + 1.55%), 6.37%, 10/25/41(b)(g) | | 190,000 | 185,725 |
| Series 2021-R03, Class 1B1, (30D Average SOFR + 2.75%, 2.75% Floor), 7.57%, 12/25/41(b)(g) | | 250,000 | 238,611 |
| Series 2022-R01, Class 1B1, (30D Average SOFR + 3.15%), 7.97%, 12/25/41(b)(g) | | 350,000 | 337,312 |
| Series 2022-R02, Class 2M1, (30D Average SOFR + 1.20%), 6.02%, 1/25/42(b)(g) | | 169,564 | 168,261 |
| Series 2022-R02, Class 2B1, (30D Average SOFR + 4.50%), 9.32%, 1/25/42(b)(g) | | 310,000 | 300,312 |
| Series 2022-R07, Class 1M1, (30D Average SOFR + 2.95%), 7.77%, 6/25/42(b)(g) | | 493,421 | 501,733 |
| Series 2022-R08, Class 1M1, (30D Average SOFR + 2.55%, 2.55% Floor), 7.37%, 7/25/42(b)(g) | | 204,790 | 207,676 |
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Connecticut Avenue Securities Trust, | | | |
| Series 2023-R03, Class 2M2, (30D Average SOFR + 3.90%), 8.72%, 4/25/43(b)(g) | | $125,000 | $125,382 |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2021-DNA3, Class M2, (30D Average SOFR + 2.10%), 6.92%, 10/25/33(b)(g) | | 30,000 | 29,215 |
| Series 2021-DNA5, Class M2, (30D Average SOFR + 1.65%), 6.47%, 1/25/34(b)(g) | | 692,645 | 687,249 |
| Series 2021-DNA6, Class M1, (30D Average SOFR + 0.80%), 5.62%, 10/25/41(b)(g) | | 213,512 | 212,041 |
| Series 2021-DNA6, Class B1, (30D Average SOFR + 3.40%), 8.22%, 10/25/41(b)(g) | | 400,000 | 390,252 |
| Series 2021-DNA7, Class M1, (30D Average SOFR + 0.85%), 5.67%, 11/25/41(b)(g) | | 550,492 | 543,488 |
| Series 2021-DNA7, Class B1, (30D Average SOFR + 3.65%), 8.47%, 11/25/41(b)(g) | | 510,000 | 494,396 |
| Series 2022-DNA1, Class M2, (30D Average SOFR + 2.50%), 7.32%, 1/25/42(b)(g) | | 250,000 | 235,324 |
| Series 2022-HQA1, Class M1A, (30D Average SOFR + 2.10%), 6.92%, 3/25/42(b)(g) | | 601,495 | 601,496 |
| Series 2022-DNA3, Class M1A, (30D Average SOFR + 2.00%), 6.82%, 4/25/42(b)(g) | | 780,907 | 783,345 |
| Series 2022-DNA5, Class M1A, (30D Average SOFR + 2.95%), 7.77%, 6/25/42(b)(g) | | 830,905 | 845,969 |
| Series 2022-DNA6, Class M1A, (30D Average SOFR + 2.15%), 6.97%, 9/25/42(b)(g) | | 429,442 | 431,457 |
| Series 2019-HQA4, Class M2, (1M USD LIBOR + 2.05%), 7.07%, 11/25/49(b)(g) | | 18,503 | 18,503 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a) | Value |
| Whole Loan (Continued) |
| Freddie Mac STACR REMIC Trust, | | | |
| Series 2020-DNA1, Class M2, (1M USD LIBOR + 1.70%), 6.72%, 1/25/50(b)(g) | | $ 318,428 | $ 316,840 |
| Series 2020-HQA1, Class M2, (1M USD LIBOR + 1.90%), 6.92%, 1/25/50(b)(g) | | 34,183 | 34,141 |
| Series 2020-DNA2, Class M2, (1M USD LIBOR + 1.85%), 6.87%, 2/25/50(b)(g) | | 1,128,101 | 1,126,689 |
| Series 2020-HQA2, Class M2, (1M USD LIBOR + 3.10%), 8.12%, 3/25/50(b)(g) | | 430,165 | 440,183 |
| Series 2020-DNA5, Class M2, (30D Average SOFR + 2.80%), 7.62%, 10/25/50(b)(g) | | 193,782 | 196,871 |
| Series 2021-DNA1, Class B1, (30D Average SOFR + 2.65%), 7.47%, 1/25/51(b)(g) | | 200,000 | 190,756 |
|
STACR Trust,
Series 2018-HRP2, Class M3, (1M USD LIBOR + 2.40%), 7.42%, 2/25/47(b)(g) | | 207,247 | 206,976 |
Freddie Mac STACR Trust,
Series 2019-DNA4, Class M2, (1M USD LIBOR + 1.95%), 6.97%, 10/25/49(b)(g) | | 61,073 | 61,187 |
| | | | 18,660,221 |
Total Mortgage-Backed Securities
(Cost $49,038,987) | 47,137,256 |
| | | Number
of Shares | |
| Preferred Stocks – 1.6% |
| Specialty Finance – 1.6% |
| AGNC Investment Corp., 6.50%(g) | | 3,228 | 69,563 |
| AGNC Investment Corp., 6.13%(g) | | 21,599 | 441,268 |
| Arbor Realty Trust, Inc., 6.25%(g) | | 39,458 | 718,925 |
| Chimera Investment Corp., 8.00%(g) | | 24,975 | 506,493 |
| Granite Point Mortgage Trust, Inc., 7.00%(g) | | 25,006 | 438,855 |
| | | Number
of Shares | Value |
| Specialty Finance (Continued) |
| MFA Financial, Inc., 6.50%(g) | | 41,438 | $ 759,973 |
| New York Mortgage Trust, Inc., 7.88%(g) | | 2,103 | 43,322 |
| New York Mortgage Trust, Inc., 6.88%(g) | | 21,682 | 399,382 |
| Redwood Trust, Inc., 10.00%(g) | | 7,133 | 158,781 |
| Rithm Capital Corp., 7.13%(g) | | 2,335 | 48,148 |
| Rithm Capital Corp., 6.38%(g) | | 43,302 | 802,819 |
Total Preferred Stocks
(Cost $5,349,177) | 4,387,529 |
|
| Rights – 0.1% |
| Biotechnology & Pharmaceuticals – 0.1% |
| Amryt Pharma CVR(k)* | | 130,430 | 3,271 |
| Amryt Pharma CVR (London Exchange)(k)* | | 130,430 | 2,181 |
| Concert Pharmaceuticals, Inc.(k)* | | 97,290 | 36,493 |
| Contra Albireo Pharma CVR(k)* | | 21,904 | 47,784 |
| Contra CinCor Pharma CVR(k)* | | 24,888 | 77,459 |
| | | | 167,188 |
| Forestry, Paper & Wood Products – 0.0%(e) |
| Resolute Forest CVR(k)* | | 44,100 | 63,575 |
| Medical Equipment & Devices – 0.0%(e) |
| Contra Abiomed, Inc. CVR(k)* | | 8,954 | 15,669 |
Total Rights
(Cost $—) | 246,432 |
|
| Investment Companies – 0.2% |
| ProShares Short 20+ Year Treasury | | 26,963 | 569,728 |
Total Investment Companies
(Cost $538,934) | 569,728 |
| | | Par (a)/Number
of Shares | |
| Short-Term Investments – 15.1% |
| Convertible Bonds – 4.6% |
| 8x8, Inc., 0.50%, 2/01/24(c) | | $1,220,000 | 1,094,739 |
| Apollo Commercial Real Estate Finance, Inc., 5.38%, 10/15/23(c) | | 2,612,000 | 2,566,290 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Par (a)/Number
of Shares | Value |
| Convertible Bonds (Continued) |
| Encore Capital Europe Finance Ltd., 4.50%, 9/01/23(c) | | $ 728,000 | $ 872,757 |
| Granite Point Mortgage Trust, Inc., 6.38%, 10/01/23 | | 1,499,000 | 1,423,113 |
| Herbalife Ltd., 2.63%, 3/15/24 | | 1,149,000 | 1,097,870 |
| KKR Real Estate Finance Trust, Inc., 6.13%, 5/15/23 | | 1,986,000 | 1,965,147 |
| Ligand Pharmaceuticals, Inc., 0.75%, 5/15/23(c) | | 787,000 | 780,646 |
| New Relic, Inc., 0.50%, 5/01/23(c) | | 838,000 | 837,894 |
| PRA Group, Inc., 3.50%, 6/01/23(c) | | 940,000 | 932,480 |
| Redwood Trust, Inc., 4.75%, 8/15/23 | | 419,000 | 412,715 |
| SFL Corp. Ltd., 4.88%, 5/01/23(c) | | 486,000 | 483,570 |
| | | | 12,467,221 |
| Corporate Bonds – 0.5% |
| American Tower Corp., 5.00%, 2/15/24 | | 80,000 | 79,828 |
| American Tower Corp., 0.60%, 1/15/24 | | 135,000 | 130,459 |
| Bank of New York Mellon (The) Corp., 0.50%, 4/26/24 | | 85,000 | 81,073 |
| Boeing (The) Co., 1.43%, 2/04/24 | | 20,000 | 19,419 |
| Broadcom Corp./Broadcom Cayman Finance Ltd., 3.63%, 1/15/24 | | 220,000 | 217,283 |
| Charles Schwab (The) Corp., 0.75%, 3/18/24 | | 30,000 | 28,701 |
| Duke Energy Corp., 3.75%, 4/15/24 | | 30,000 | 29,514 |
| Ecolab, Inc., 0.90%, 12/15/23 | | 35,000 | 34,106 |
| Federal Realty Investment Trust, 3.95%, 1/15/24 | | 50,000 | 49,451 |
| FMC Corp., 4.10%, 2/01/24 | | 30,000 | 29,660 |
| General Motors Financial Co., Inc., 1.70%, 8/18/23 | | 140,000 | 138,440 |
| Humana, Inc., 0.65%, 8/03/23 | | 22,000 | 21,736 |
| Kinder Morgan Energy Partners L.P., 3.50%, 9/01/23 | | 70,000 | 69,628 |
| | | Par (a)/Number
of Shares | Value |
| Corporate Bonds (Continued) |
| Marsh & McLennan Cos., Inc., 3.88%, 3/15/24 | | $ 200,000 | $ 197,463 |
| Martin Marietta Materials, Inc., 0.65%, 7/15/23 | | 55,000 | 54,435 |
| Morgan Stanley, 4.10%, 5/22/23 | | 25,000 | 24,973 |
| NextEra Energy Capital Holdings, Inc., 2.94%, 3/21/24 | | 80,000 | 78,324 |
| Pioneer Natural Resources Co., 0.55%, 5/15/23 | | 40,000 | 39,933 |
| Welltower OP LLC, 3.63%, 3/15/24 | | 50,000 | 49,117 |
| Williams (The) Cos., Inc., 4.30%, 3/04/24 | | 75,000 | 74,381 |
| | | | 1,447,924 |
| Foreign Issuer Bonds – 0.1% |
| Canadian Natural Resources Ltd., 3.80%, 4/15/24 | | 150,000 | 147,503 |
| Mitsubishi UFJ Financial Group, Inc., 3.41%, 3/07/24 | | 25,000 | 24,608 |
| Thomson Reuters Corp., 4.30%, 11/23/23 | | 10,000 | 9,934 |
| | | | 182,045 |
| Money Market Fund – 9.2% |
| Northern Institutional Funds - Treasury Portfolio (Premier), 4.56%(l) | | 25,298,904 | 25,298,904 |
| Mortgage-Backed Securities – 0.3% |
| FHLMC STACR Debt Notes, 9.27%, 11/25/23(g) | | 676,131 | 686,223 |
| FNMA Connecticut Avenue Securities, 9.42%, 1/25/24(g) | | 118,273 | 120,343 |
| | | | 806,566 |
| U.S. Treasury Bills – 0.4% |
| U.S. Treasury Bill, 4.74%, 10/26/23(m) | | 600,000 | 585,648 |
| U.S. Treasury Bill, 4.89%, 8/22/23(m) | | 600,000 | 590,628 |
| | | | 1,176,276 |
Total Short-Term Investments
(Cost $41,494,347) | 41,378,936 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Number of
Contracts | Notional
Amount | Value |
| Purchased Options – 0.0%(e) |
| Call Options - Exchange Traded – 0.0%(e) |
| Maxlinear Corp., Strike Price $30.00, Expires 9/15/23 | 49 | $ 118,237 | $ 5,635 |
| Put Options - Exchange Traded – 0.0%(e) |
| First Horizon Corp., | | | |
| Strike Price $14.00, Expires 5/19/23 | 428 | 751,140 | 17,120 |
| Strike Price $16.00, Expires 5/19/23 | 276 | 484,380 | 24,564 |
| Horizon Therapeutics PLC, Strike Price $85.00, Expires 5/19/23 | 19 | 211,204 | 570 |
| iShares iBoxx High Yield Corporate Bond ETF, Strike Price $73.00, Expires 5/19/23 | 1,500 | 11,304,000 | 24,000 |
| | | | 66,254 |
Total Purchased Options
(Premiums Paid $239,387) | 71,889 |
Total Long Positions – 101.9%
(Cost $291,747,324) | 280,031,501 |
| | | Number
of Shares | Value |
| Short Positions – (6.6)%(n) |
| Common Stocks – (6.5)% |
| Advertising & Marketing – (0.0)%(e) |
| Magnite, Inc. | | (2,379) | (22,363) |
| Aerospace & Defense – (0.0)%(e) |
| Kaman Corp. | | (423) | (9,336) |
| Asset Management – (0.1)% |
| WisdomTree, Inc. | | (60,970) | (380,453) |
| Biotechnology & Pharmaceuticals – (0.4)% |
| Coherus Biosciences, Inc. | | (10,421) | (75,344) |
| Collegium Pharmaceutical, Inc. | | (7,845) | (182,553) |
| Halozyme Therapeutics, Inc. | | (4,768) | (153,196) |
| Insmed, Inc. | | (20,620) | (402,090) |
| Jazz Pharmaceuticals PLC | | (753) | (105,774) |
| Mirum Pharmaceuticals, Inc. | | (7,998) | (214,746) |
| | | | (1,133,703) |
| Cable & Satellite – (0.0)%(e) |
| Cable One, Inc. | | (115) | (87,217) |
| | | Number
of Shares | Value |
| Consumer Services – (0.0)%(e) |
| Chegg, Inc. | | (3,688) | $ (66,310) |
| Electric Utilities – (0.2)% |
| Duke Energy Corp. | | (1,909) | (188,762) |
| NRG Energy, Inc. | | (7,088) | (242,197) |
| | | | (430,959) |
| Electrical Equipment – (0.0)%(e) |
| Mesa Laboratories, Inc. | | (860) | (143,199) |
| Engineering & Construction – (0.2)% |
| Fluor Corp. | | (18,778) | (545,689) |
| Gas & Water Utilities – (0.0)%(e) |
| Brookfield Infrastructure Corp., Class A (Canada) | | (2,267) | (96,574) |
| Household Products – (0.1)% |
| Beauty Health (The) Co. | | (15,444) | (176,988) |
| Institutional Financial Services – (0.0)%(e) |
| Intercontinental Exchange, Inc. | | (209) | (22,766) |
| Internet Media & Services – (0.2)% |
| Airbnb, Inc., Class A | | (357) | (42,722) |
| Snap, Inc., Class A | | (2,152) | (18,744) |
| TripAdvisor, Inc. | | (2,628) | (46,594) |
| Upwork, Inc. | | (4,531) | (43,362) |
| Ziff Davis, Inc. | | (4,732) | (346,099) |
| | | | (497,521) |
| Leisure Facilities & Services – (0.6)% |
| Cheesecake Factory (The), Inc. | | (6,043) | (203,589) |
| Live Nation Entertainment, Inc. | | (6,285) | (425,997) |
| Marcus (The) Corp. | | (30,900) | (541,368) |
| Marriott Vacations Worldwide Corp. | | (1,208) | (162,549) |
| Royal Caribbean Cruises Ltd. | | (4,556) | (298,099) |
| | | | (1,631,602) |
| Leisure Products – (0.1)% |
| Winnebago Industries, Inc. | | (4,244) | (246,746) |
| Machinery – (0.2)% |
| Xylem, Inc. | | (4,558) | (473,303) |
| Medical Equipment & Devices – (0.4)% |
| CONMED Corp. | | (2,487) | (312,292) |
| Haemonetics Corp. | | (2,745) | (229,784) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Medical Equipment & Devices (Continued) |
| Integer Holdings Corp. | | (5,342) | $ (439,914) |
| NuVasive, Inc. | | (1,498) | (64,474) |
| | | | (1,046,464) |
| Oil & Gas Producers – (0.1)% |
| Baytex Energy Corp. (Canada) | | (70,652) | (265,952) |
| Oil, Gas Services & Equipment – (0.1)% |
| Helix Energy Solutions Group, Inc. | | (45,482) | (329,745) |
| Publishing & Broadcasting – (0.1)% |
| Liberty Media Corp., Class A | | (9,102) | (255,766) |
| Real Estate Investment Trusts – (0.6)% |
| Extra Space Storage, Inc. | | (5,946) | (904,030) |
| Pebblebrook Hotel Trust | | (25,928) | (368,956) |
| Public Storage | | (928) | (273,602) |
| Summit Hotel Properties, Inc. | | (38,062) | (245,119) |
| | | | (1,791,707) |
| Renewable Energy – (0.5)% |
| Array Technologies, Inc. | | (35,129) | (718,388) |
| Sunnova Energy International, Inc. | | (32,689) | (587,094) |
| | | | (1,305,482) |
| Retail - Discretionary – (0.1)% |
| Patrick Industries, Inc. | | (5,046) | (346,307) |
| Semiconductors – (0.9)% |
| Broadcom, Inc. | | (2,804) | (1,756,706) |
| MACOM Technology Solutions Holdings, Inc. | | (5,457) | (318,361) |
| MaxLinear, Inc. | | (4,946) | (119,347) |
| Semtech Corp. | | (9,345) | (182,134) |
| | | | (2,376,548) |
| Software – (0.7)% |
| Bentley Systems, Inc., Class B | | (6,706) | (285,407) |
| Ceridian HCM Holding, Inc. | | (2,301) | (146,068) |
| Envestnet, Inc. | | (7,964) | (504,758) |
| Five9, Inc. | | (863) | (55,957) |
| Jamf Holding Corp. | | (4,983) | (94,278) |
| Mitek Systems, Inc. | | (15,840) | (142,877) |
| New Relic, Inc. | | (239) | (17,081) |
| NextGen Healthcare, Inc. | | (10,506) | (175,871) |
| Progress Software Corp. | | (6,142) | (337,073) |
| Verint Systems, Inc. | | (6,842) | (249,665) |
| | | | (2,009,035) |
| | | Number
of Shares | Value |
| Specialty Finance – (0.4)% |
| Encore Capital Group, Inc. | | (12,278) | $ (630,843) |
| EZCORP, Inc., Class A | | (28,152) | (242,389) |
| SoFi Technologies, Inc. | | (30,457) | (189,747) |
| | | | (1,062,979) |
| Technology Hardware – (0.2)% |
| Infinera Corp. | | (27,844) | (176,253) |
| Lumentum Holdings, Inc. | | (1,934) | (93,315) |
| NCR Corp. | | (10,186) | (227,046) |
| | | | (496,614) |
| Technology Services – (0.1)% |
| I3 Verticals, Inc., Class A | | (5,288) | (122,946) |
| Perficient, Inc. | | (2,346) | (152,302) |
| | | | (275,248) |
| Transportation & Logistics – (0.1)% |
| Air Transport Services Group, Inc. | | (4,729) | (96,046) |
| CryoPort, Inc. | | (1,341) | (28,215) |
| JetBlue Airways Corp. | | (6,487) | (46,317) |
| Spirit Airlines, Inc. | | (3,831) | (65,510) |
| | | | (236,088) |
| Transportation Equipment – (0.1)% |
| Greenbrier (The) Cos., Inc. | | (9,301) | (246,011) |
Total Common Stocks
(Proceeds $19,195,180) | (18,008,675) |
| | | Par (a) | |
| Mortgage-Backed Securities – (0.1)% |
| Government National Mortgage Association – (0.1)% |
Pool,
2.00%, 5/01/53(j) | | $(150,000) | (128,440) |
| Uniform Mortgage-Backed Securities – (0.0)%(e) |
Pool ,
2.50%, 5/01/53(j) | | (57,000) | (49,353) |
Total Mortgage-Backed Securities
(Proceeds $177,512) | (177,793) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| | | Number
of Shares | Value |
| Rights – 0.0%(e) |
| Biotechnology & Pharmaceuticals — 0.0%(e) |
| Ligand Pharmaceuticals, Inc. CVR (Switzerland Exchange)(k) | | (52) | $ — |
| Ligand Pharmaceuticals, Inc. CVR(k) | | (52) | — |
Total Rights
(Proceeds $—) | — |
Total Short Positions – (6.6)%
(Proceeds $19,372,692) | (18,186,468) |
Total Written Options – (0.0)%(e)
(Premiums Received $69,021) | (11,520) |
| Other Assets less Liabilities – 4.7%(o) | 12,896,273 |
| NET ASSETS – 100.0% | $274,729,786 |
| 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. |
| (c) | All or a portion of the security was held as collateral for open futures, options, securities sold short and/or swap agreements. |
| (d) | Security represents underlying investment on open options contracts. |
| (e) | Amount rounds to less than 0.05%. |
| (f) | Zero coupon bond. |
| (g) | Variable rate security. Rate as of April 30, 2023 is disclosed. |
| (h) | Distributions from this security are made via payments in-kind (PIK) unless otherwise noted in the description. |
| (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, 2023 is disclosed. |
| (j) | When-issued security. Coupon rate was not yet in effect at April 30, 2023. |
| (k) | Investment is valued using significant unobservable inputs (Level 3). |
| (l) | 7-day current yield as of April 30, 2023 is disclosed. |
| (m) | Discount rate at the time of purchase. |
| (n) | Securities sold short are not owned by the Fund. |
| (o) | Includes appreciation/(depreciation) on forward foreign currency exchange, futures and swap contracts. |
| * | Non-Income Producing Security |
| Abbreviations: | |
| 1M | 1 Month |
| 1Y | 1 Year |
| 30D | 30 Day |
| 3M | 3 Month |
| ADR | American Depositary Receipt |
| BANXICO | Banco de Mexico |
| BBR | Bank Bill Rate |
| BBSW | Bank Bill Swap Rate |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| BDC | Business Development Company |
| CIDOR | Canada Interbank Rate |
| CME | Chicago Mercantile Exchange |
| CMT | Constant Maturity |
| CNRR | China Fixing Repo Rate |
| CVR | Contingent Value Right |
| ETF | Exchange-Traded Fund |
| EURIBOR | Euro Interbank Offered Rate |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| Freddie Mac | Federal Home Loan Mortgage Corporation |
| HIBOR | Hong Kong Interbank Offered Rate |
| JIBAR | Johannesburg Interbank Average Rate |
| KSDA | Korea Securities Dealers Association |
| L.P. | Limited Partnership |
| LIBOR | London Interbank Offered Rate |
| LLC | Limited Liability Company |
| MIBOR | Mumbai Interbank Offered Rate |
| NIBOR | Nigerian Interbank Offered Rate |
| PLC | Public Limited Company |
| PRBOR | Prague Interbank Offered Rate |
| REMIC | Real Estate Mortgage Investment Conduit |
| S&P | Standards & Poor's |
| SARON | Swiss Average Rate Overnight |
| SOFR | United States Secured Overnight Financing Rate |
| SONIA | Sterling Overnight Index Average |
| SORA | Singapore Overnight Rate Average |
| STACR | Structured Agency Credit Risk |
| STIBOR | Stockholm Interbank Offered Rate |
| TELBOR | Tel Aviv Interbank Offered Rate |
| THBOR | Thailand Interbank Offered Rate |
| TIIE | Tasa de Interés Interbancaria de Equilibrio |
| USD | United States Dollar |
| WIBOR | Warsaw Interbank Offered Rate |
Futures Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| Long Contracts | | | | | |
| Ultra U.S. Treasury Bond | 14 | 6/21/2023 | USD | 1,979,688 | $ 44,888 |
| Long Gilt | 1 | 6/28/2023 | GBP | 127,510 | (2,607) |
| Total Long Contracts | | | | | $ 42,281 |
| Short Contracts | | | | | |
| Euro-BTP Italian Government Bond | (5) | 6/08/2023 | EUR | 632,766 | $ (20,279) |
| Euro-Bund | (6) | 6/08/2023 | EUR | 896,241 | (5,560) |
| Euro-OAT | (9) | 6/08/2023 | EUR | 1,289,124 | 4,485 |
| 10-Year Australian Treasury Bond | (1) | 6/15/2023 | AUD | 81,029 | (394) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Futures Contracts outstanding at April 30, 2023:
Exchange Traded (continued) |
| | | | | | |
| Description | Number of
Contracts | Expiration
Date | Trading
Currency | Notional
Amount | Value/
Unrealized
Appreciation
(Depreciation) |
| 10-Year U.S. Treasury Note | (60) | 6/21/2023 | USD | 6,912,188 | $ (97,203) |
| U.S. Treasury Long Bond | (43) | 6/21/2023 | USD | 5,661,219 | (279,022) |
| Ultra 10-Year U.S. Treasury Note | (56) | 6/21/2023 | USD | 6,801,375 | (235,881) |
| 2-Year U.S. Treasury Note | (3) | 6/30/2023 | USD | 618,492 | (5,963) |
| 5-Year U.S. Treasury Note | (149) | 6/30/2023 | USD | 16,351,586 | (347,372) |
| Total Short Contracts | | | | | $(987,189) |
| | | | | | $(944,908) |
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| | | | | | | |
| 6/21/23 | British Pounds | 60,000 | U.S. Dollars | 73,340 | Deutsche Bank | $ 2,149 |
| 6/15/23 | Canadian Dollars | 361,460 | U.S. Dollars | 265,885 | Morgan Stanley | 1,160 |
| 6/15/23 | U.S. Dollars | 829,947 | Euro | 750,170 | Morgan Stanley | 1,071 |
| 6/15/23 | Euro | 147,450 | U.S. Dollars | 161,891 | Morgan Stanley | 1,029 |
| 6/21/23 | Euro | 110,000 | U.S. Dollars | 120,585 | Bank of America | 994 |
| 6/15/23 | U.S. Dollars | 73,080 | New Zealand Dollars | 117,000 | Morgan Stanley | 740 |
| 6/15/23 | British Pounds | 48,500 | U.S. Dollars | 60,370 | Morgan Stanley | 644 |
| 6/21/23 | Swedish Kronor | 590,000 | U.S. Dollars | 57,115 | Morgan Stanley | 577 |
| 6/15/23 | Swedish Kronor | 979,100 | U.S. Dollars | 95,151 | Morgan Stanley | 561 |
| 6/21/23 | Euro | 30,000 | U.S. Dollars | 32,877 | Barclays | 281 |
| 6/21/23 | U.S. Dollars | 92,157 | Hong Kong Dollars | 720,000 | JPMorgan Chase | 229 |
| 6/21/23 | U.S. Dollars | 53,271 | Australian Dollars | 80,000 | Morgan Stanley | 214 |
| 6/21/23 | Swiss Francs | 20,000 | U.S. Dollars | 22,374 | Barclays | 140 |
| 6/15/23 | U.S. Dollars | 10,117 | Canadian Dollars | 13,610 | Morgan Stanley | 62 |
| 6/21/23 | U.S. Dollars | 6,229 | New Zealand Dollars | 10,000 | Deutsche Bank | 47 |
| 6/21/23 | U.S. Dollars | 22,147 | Euro | 20,000 | Bank of America | 41 |
| 6/21/23 | U.S. Dollars | 12,392 | New Zealand Dollars | 20,000 | JPMorgan Chase | 26 |
| 6/15/23 | New Zealand Dollars | 1,800 | U.S. Dollars | 1,105 | Morgan Stanley | 8 |
| 6/21/23 | U.S. Dollars | 6,188 | New Zealand Dollars | 10,000 | Citibank | 6 |
| 6/15/23 | U.S. Dollars | 7,374 | Swedish Kronor | 75,400 | Morgan Stanley | 4 |
| Total Unrealized Appreciation | $ 9,983 |
| | | | | | | |
| 6/15/23 | Swedish Kronor | 63,500 | U.S. Dollars | 6,209 | Morgan Stanley | $ (2) |
| 6/15/23 | U.S. Dollars | 4,807 | New Zealand Dollars | 7,800 | Morgan Stanley | (16) |
| 6/21/23 | U.S. Dollars | 6,812 | Swedish Kronor | 70,000 | Morgan Stanley | (33) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
| Forward Foreign Currency Exchange Contracts outstanding at April 30, 2023: (continued) |
| | | | | | | |
Settlement
Date | Currency
Purchased | Amount
of Currency
Purchased | Currency
Sold | Amount
of Currency
Sold | Counterparty | Unrealized
Appreciation
(Depreciation) |
| 6/15/23 | New Zealand Dollars | 12,200 | U.S. Dollars | 7,598 | Morgan Stanley | $ (55) |
| 6/21/23 | U.S. Dollars | 7,491 | Mexican Pesos | 140,000 | Citibank | (211) |
| 6/21/23 | U.S. Dollars | 24,916 | British Pounds | 20,000 | Barclays | (247) |
| 6/21/23 | U.S. Dollars | 12,306 | British Pounds | 10,000 | Bank of America | (275) |
| 6/21/23 | U.S. Dollars | 6,569 | Swedish Kronor | 70,000 | JPMorgan Chase | (276) |
| 6/21/23 | Canadian Dollars | 70,000 | U.S. Dollars | 52,111 | Bank of America | (388) |
| 6/21/23 | U.S. Dollars | 21,481 | Euro | 20,000 | JPMorgan Chase | (624) |
| 6/21/23 | U.S. Dollars | 36,925 | British Pounds | 30,000 | Deutsche Bank | (819) |
| 6/21/23 | U.S. Dollars | 55,300 | Swiss Francs | 50,000 | Deutsche Bank | (983) |
| 6/21/23 | U.S. Dollars | 49,036 | British Pounds | 40,000 | Morgan Stanley | (1,290) |
| 6/21/23 | U.S. Dollars | 225,609 | Euro | 210,000 | Morgan Stanley | (6,497) |
| 6/15/23 | U.S. Dollars | 534,219 | Swedish Kronor | 5,632,000 | Morgan Stanley | (16,338) |
| 6/15/23 | Canadian Dollars | 3,917,830 | U.S. Dollars | 2,913,435 | Morgan Stanley | (18,959) |
| 6/15/23 | U.S. Dollars | 972,617 | British Pounds | 794,100 | Morgan Stanley | (26,375) |
| 6/15/23 | U.S. Dollars | 3,947,148 | Canadian Dollars | 5,397,910 | Morgan Stanley | (40,804) |
| 6/15/23 | U.S. Dollars | 2,436,088 | Euro | 2,248,400 | Morgan Stanley | (48,208) |
| Total Unrealized Depreciation | $ (162,400) |
| Net Unrealized Depreciation | $(152,417) |
Written Put Option Contracts outstanding at April 30, 2023:
Exchange Traded |
| | | | | | | |
| Description | Number of
Contracts | Notional
Amount | Exercise
Price | Expiration
Date | Value |
| First Horizon Corp. | 276 | USD | 484,380 | 12.00 | 5/19/2023 | $ (5,520) |
| iShares iBoxx High Yield Corporate Bond ETF | 1,500 | USD | 11,304,000 | 69.00 | 5/19/2023 | (6,000) |
| Total Written Put Options Contracts (Premiums Received $69,021) | $(11,520) |
Long Contracts for Difference at April 30, 2023:
Over the Counter |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Advanced Auto Parts, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,720 | Monthly | $ 341,008 | $ (4,079) |
| Agilent Technologies, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 508 | Monthly | 68,709 | (2,508) |
| Albemarle Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,026 | Monthly | 189,873 | (12,453) |
| Alexandria Real Estate Equities, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,378 | Monthly | 294,930 | 1,057 |
| Allegion PLC | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,461 | Monthly | 161,375 | 9,664 |
| Allstate Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,479 | Monthly | 172,342 | 926 |
| Allstate Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 3,715 | Monthly | 429,512 | 2,695 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Altria Group, Inc. | U.S. Fed Funds | 8/19/2026 | Goldman Sachs | 9,276 | Monthly | $ 440,173 | $ 18,671 |
| American Electric Power Co., Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 4,720 | Monthly | 435,669 | (4,660) |
| American Express Co. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,226 | Monthly | 358,398 | 471 |
| American Express Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,705 | Monthly | 435,937 | (5,189) |
| American International Group, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 6,820 | Monthly | 361,638 | 8,505 |
| American International Group, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 6,086 | Monthly | 322,382 | 6,397 |
| American Water Works Company, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 107 | Monthly | 15,843 | (190) |
| Amgen, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,811 | Monthly | 433,233 | (19,617) |
| AMN Healthcare Services, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,915 | Monthly | 337,964 | (7,026) |
| Amphenol Corp., Class A | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,186 | Monthly | 164,784 | (6,165) |
| Antero Resources Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,680 | Monthly | 84,584 | 866 |
| Anthem, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 341 | Monthly | 159,775 | 2,934 |
| Apache Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 9,533 | Monthly | 351,195 | (8,544) |
| Apache Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 11,819 | Monthly | 434,985 | (28,386) |
| Aramark Services, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 6,178 | Monthly | 214,220 | (1,686) |
| Archer-Daniels-Midland Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,321 | Monthly | 103,007 | (5,579) |
| Arrow Electronics, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,251 | Monthly | 257,245 | (10,692) |
| Assurant, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 291 | Monthly | 35,768 | 1,130 |
| AT&T, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 43,043 | Monthly | 760,007 | (40,972) |
| Atmos Energy Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,897 | Monthly | 216,066 | (3,918) |
| AutoZone, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 165 | Monthly | 439,323 | (2,402) |
| AvalonBay Communities, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 36 | Monthly | 6,485 | 221 |
| Avis Budget Group, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,974 | Monthly | 348,655 | 7,100 |
| Berkshire Hathaway, Inc., Class B | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,253 | Monthly | 411,559 | 3,019 |
| Best Buy Co., Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 4,881 | Monthly | 362,959 | (2,142) |
| Best Buy Co., Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 776 | Monthly | 57,761 | 686 |
| Biogen, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 364 | Monthly | 110,586 | 4,225 |
| Bio-rad Laboratories, Class A | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 34 | Monthly | 15,327 | 536 |
| BorgWarner, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,034 | Monthly | 145,990 | (2,538) |
| BorgWarner, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 6,777 | Monthly | 325,765 | (2,107) |
| Boston Properties, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 3,009 | Monthly | 160,208 | 1,363 |
| Boston Scientific Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 939 | Monthly | 48,857 | (87) |
| Boyd Gaming Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 6,364 | Monthly | 441,542 | 12,863 |
| Bristol-Myers Squibb Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,443 | Monthly | 163,071 | (9,258) |
| Bristol-Myers Squibb Co. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 3,861 | Monthly | 257,197 | (14,155) |
| Builders FirstSource, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 12 | Monthly | 1,136 | 4 |
| Caesars Entertainment, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 8,156 | Monthly | 368,968 | 9,090 |
| Camden Property Trust REIT | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 558 | Monthly | 61,311 | 1,845 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Campbell Soup | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 7,297 | Monthly | $ 395,747 | $ (6,889) |
| Canadian Natural Resources Ltd. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,095 | Monthly | 66,678 | (566) |
| Cardinal Health, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 4,376 | Monthly | 359,171 | 4,715 |
| Cardinal Health, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,918 | Monthly | 157,129 | 4,418 |
| Cardinal Health, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 3,459 | Monthly | 283,636 | 6,708 |
| Carlisle Companies, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 103 | Monthly | 22,204 | (133) |
| Caterpillar, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,594 | Monthly | 347,990 | (8,157) |
| Caterpillar, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,927 | Monthly | 420,965 | (13,072) |
| Centene Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,011 | Monthly | 138,373 | 4,342 |
| CH Robinson Worldwide, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 3,497 | Monthly | 352,321 | 17,414 |
| Chevron Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,100 | Monthly | 185,132 | (2,880) |
| Chubb Limited | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,696 | Monthly | 341,755 | 1,758 |
| Chubb Limited | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,137 | Monthly | 429,762 | 10,846 |
| Cigna Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,322 | Monthly | 334,419 | (7,542) |
| Cisco Systems, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 9,326 | Monthly | 440,086 | (27,513) |
| Cleveland Cliffs, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 19,235 | Monthly | 295,427 | (36,182) |
| Comcast Corp., Class A | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,644 | Monthly | 68,012 | 5,702 |
| ConocoPhillips | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 4,273 | Monthly | 439,534 | (2,429) |
| ConocoPhillips | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,160 | Monthly | 119,158 | (3,350) |
| Coterra Energy, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 525 | Monthly | 13,436 | (56) |
| Crown Castle International Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,851 | Monthly | 350,840 | (3,038) |
| CSX Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 10,921 | Monthly | 333,892 | 6,372 |
| CSX Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 13,513 | Monthly | 413,521 | 2,050 |
| CVS Health Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 10,771 | Monthly | 787,922 | (28,450) |
| Darden Restaurants, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,684 | Monthly | 558,848 | 9,012 |
| DaVita, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 5,019 | Monthly | 452,595 | 37,524 |
| Deere & Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 881 | Monthly | 332,602 | (12,239) |
| Dell Technologies, Inc., Class C | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 10,229 | Monthly | 444,746 | 8,826 |
| Delta Air Lines, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 12,654 | Monthly | 433,335 | 2,713 |
| Delta Air Lines, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,093 | Monthly | 37,495 | 802 |
| DTE Energy Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,095 | Monthly | 235,226 | (1,014) |
| Duke Energy Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 4,311 | Monthly | 425,714 | 1,469 |
| DuPont de Nemours, Inc. | U.S. Fed Funds | 2/8/2024 | JPMorgan Chase | 148 | Monthly | 10,296 | (36) |
| Elanco Animal Health, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 31,768 | Monthly | 300,485 | (2,462) |
| Emerson Electric Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,081 | Monthly | 89,978 | (2,545) |
| Energy, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,857 | Monthly | 115,193 | (52) |
| Entergy Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 3,195 | Monthly | 342,973 | (10,816) |
| EOG Resources, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,665 | Monthly | 198,841 | 406 |
| Equity Residential | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,364 | Monthly | 149,208 | 7,131 |
| Eversource Energy | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 4,316 | Monthly | 334,869 | (7,562) |
| Exelon Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 121 | Monthly | 5,083 | (152) |
| Exelon Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 9,738 | Monthly | 412,758 | (2,762) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Expedia Group, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 4,836 | Monthly | $ 454,273 | $ 25 |
| Expedia Group, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 178 | Monthly | 16,704 | 82 |
| Extra Space Storage Incment, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 170 | Monthly | 25,847 | 229 |
| Factset Research Systems, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 843 | Monthly | 346,632 | (3,898) |
| Fair Isaac Corporation | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 483 | Monthly | 351,177 | 14,782 |
| Flex Ltd. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 4,545 | Monthly | 93,476 | 936 |
| Fox Corp., Class A | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 10,177 | Monthly | 338,396 | 6,292 |
| Gartner, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,167 | Monthly | 352,880 | 567 |
| Gen Digital Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 11,783 | Monthly | 208,148 | 1,474 |
| General Mills, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 3,741 | Monthly | 330,806 | 7,771 |
| General Motors Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 5,465 | Monthly | 180,502 | (1,346) |
| Gilead Sciences, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 4,014 | Monthly | 329,894 | (18,120) |
| Goodyear Tire & Rubber (The) Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 33,319 | Monthly | 355,090 | (7,017) |
| H&R Block, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,108 | Monthly | 71,224 | (216) |
| Halliburton Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 6,180 | Monthly | 202,805 | (6,699) |
| Halliburton Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 12,609 | Monthly | 412,414 | (9,230) |
| Hartford Financial Services Group (The), Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 4,429 | Monthly | 313,819 | 3,978 |
| Hasbro, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,092 | Monthly | 64,652 | 8,163 |
| Healthpeak Properties, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 16,461 | Monthly | 361,555 | 12,122 |
| HF Sinclair Corporation | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 7,438 | Monthly | 328,002 | (7,120) |
| Home Depot (The), Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,399 | Monthly | 420,355 | 519 |
| Honeywell International, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,183 | Monthly | 437,822 | 8,252 |
| HP, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 10,093 | Monthly | 299,241 | (389) |
| International Paper Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 12,754 | Monthly | 422,165 | (40,130) |
| JM Smucker (The) Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,206 | Monthly | 343,207 | 4,850 |
| Johnson & Johnson | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,708 | Monthly | 279,215 | (2,511) |
| Johnson Controls International PLC | U.S. Fed Funds | 2/8/2024 | JPMorgan Chase | 5,850 | Monthly | 349,332 | 19,626 |
| Johnson Controls International PLC | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 7,237 | Monthly | 432,532 | 11,122 |
| Kellogg Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 4,695 | Monthly | 327,153 | 9,677 |
| Keysight Technologies, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,417 | Monthly | 348,851 | (26,972) |
| Kimberly-Clarke Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,455 | Monthly | 355,607 | 5,942 |
| Kimco Realty Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 999 | Monthly | 19,166 | 364 |
| Kinross Gold Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 17,369 | Monthly | 87,668 | (580) |
| Kroger (The) Co. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 8,894 | Monthly | 431,598 | (2,042) |
| Kroger (The) Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,525 | Monthly | 74,087 | 1,227 |
| L Brands, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 12,497 | Monthly | 437,663 | (28,000) |
| L Brands, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 10,014 | Monthly | 351,074 | (3,316) |
| L3Harris Technologies, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,708 | Monthly | 333,220 | (12,035) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Laboratory Corporation of America Holdings | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 72 | Monthly | $ 16,323 | $ 370 |
| Lam Research Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 85 | Monthly | 44,540 | 774 |
| Lear Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 397 | Monthly | 50,666 | (2,476) |
| Leidos Holdings, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,441 | Monthly | 134,219 | 76 |
| LIncoln National Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 13,653 | Monthly | 296,603 | 7,727 |
| Live Nation Entertainment, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,325 | Monthly | 157,552 | 1,884 |
| Lockheed Martin Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 919 | Monthly | 427,592 | (12,315) |
| Loews Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 6,812 | Monthly | 392,065 | 6,655 |
| Lowe's Cos., Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,125 | Monthly | 441,514 | (6,946) |
| Marathon Petroleum Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,541 | Monthly | 431,886 | (15,051) |
| Marathon Petroleum Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,459 | Monthly | 299,243 | (23,476) |
| Marsh & McLennan Cos., Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | 549 | Monthly | 98,844 | 1,937 |
| Martin Marietta Materials, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 928 | Monthly | 336,656 | 8,824 |
| Masco Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 184 | Monthly | 9,826 | 1,085 |
| Match Group, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 9,932 | Monthly | 366,400 | 24,820 |
| Mcdonalds Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 743 | Monthly | 219,681 | 1,834 |
| Mcdonalds Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 770 | Monthly | 227,242 | 8,732 |
| McKesson Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 440 | Monthly | 159,559 | (3,580) |
| McKesson Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 126 | Monthly | 45,620 | (153) |
| Metlife, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 334 | Monthly | 21,703 | 1,526 |
| MGM Resorts International | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 17,566 | Monthly | 788,095 | 17,299 |
| Mid-America Apartment Communities, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 563 | Monthly | 86,438 | 2,303 |
| Mosaic (The) Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 8,057 | Monthly | 345,151 | (11,373) |
| Motorola Solutions, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 808 | Monthly | 236,900 | (167) |
| Murphy Oil Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 11,746 | Monthly | 430,662 | (23,406) |
| Murphy Oil USA, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 146 | Monthly | 40,109 | 591 |
| Nasdaq, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,463 | Monthly | 191,686 | (4,251) |
| National Oilwell Varco, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 4,831 | Monthly | 80,858 | (6,516) |
| NetApp, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 5,594 | Monthly | 351,065 | (11,496) |
| Netflix, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,071 | Monthly | 353,051 | 2,393 |
| Netflix, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,335 | Monthly | 440,072 | 1,561 |
| Newmont Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,741 | Monthly | 129,895 | (1,253) |
| Newmont Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 6,332 | Monthly | 299,419 | (24,083) |
| Newmont Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 6,056 | Monthly | 286,804 | (5,169) |
| Norfolk Southern Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,767 | Monthly | 764,596 | (32,956) |
| Nucor Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,349 | Monthly | 347,973 | (16,216) |
| Nutrien ltd. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 280 | Monthly | 19,432 | 99 |
| NVR, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 59 | Monthly | 344,138 | 8,248 |
| NXP Semiconductors N.V. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,080 | Monthly | 176,795 | (5,450) |
| Occidental Petroleum Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 676 | Monthly | 41,541 | 227 |
| Olin Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 6,419 | Monthly | 354,980 | (10,036) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Olin Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 6,380 | Monthly | $ 353,018 | $ (10,573) |
| Omnicom Group, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 4,492 | Monthly | 405,911 | (12,788) |
| O'Reilly Automotive, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1 | Monthly | 916 | 19 |
| Ovintiv, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 11,737 | Monthly | 423,353 | (18,969) |
| Owens Corning | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,396 | Monthly | 362,631 | 18,174 |
| Paccar, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,651 | Monthly | 123,161 | 2,209 |
| Packaging Corp. Of America | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 410 | Monthly | 55,440 | (3,973) |
| Parker-Hannifin Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,075 | Monthly | 349,149 | 1,967 |
| PBF Energy, Inc., Class A | U.S. Fed Funds | 2/8/2024 | JPMorgan Chase | 9,405 | Monthly | 327,060 | (60,379) |
| Penn National Gaming, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 11,973 | Monthly | 356,577 | 2,296 |
| Permian Resources Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 6,836 | Monthly | 71,387 | (522) |
| Pfizer, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 10,512 | Monthly | 408,695 | (10,839) |
| Pfizer, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 8,938 | Monthly | 346,812 | (24,795) |
| Pinnacle West Capital Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 209 | Monthly | 16,377 | (198) |
| Pioneer Natural Resources Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,952 | Monthly | 424,534 | (19,039) |
| PTC Therapeutics, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,466 | Monthly | 309,778 | (8,558) |
| Public Storage | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 801 | Monthly | 236,109 | 4,839 |
| Qorvo, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 326 | Monthly | 30,010 | 14 |
| QUALCOMM, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,652 | Monthly | 192,900 | (963) |
| Quest Diagnostics, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 2,394 | Monthly | 331,549 | (11,703) |
| Ralph Lauren Corp., Class A | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 17 | Monthly | 1,951 | (23) |
| Range Resources Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,329 | Monthly | 35,130 | 964 |
| Ross Stores, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 353 | Monthly | 37,661 | 99 |
| Royal Caribbean Cruises Ltd. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,824 | Monthly | 250,124 | 11,468 |
| Royal Caribbean Cruises Ltd. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 7,151 | Monthly | 466,971 | 22,134 |
| SBA Communications Corp. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,381 | Monthly | 359,518 | (1,373) |
| Seagate Technology, LLC | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,842 | Monthly | 107,633 | (7,877) |
| Sealed Air Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,560 | Monthly | 122,839 | 2,947 |
| Sirus XM Holdings, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 60,055 | Monthly | 227,908 | (11,712) |
| Skyworks Solutions, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 734 | Monthly | 77,693 | (244) |
| SM Energy Co. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 9,864 | Monthly | 276,381 | (15,482) |
| Southwestern Energy | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 4,752 | Monthly | 24,632 | 17 |
| Starbucks Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 1,474 | Monthly | 168,412 | 7,318 |
| Steel Dynamics, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,261 | Monthly | 338,882 | (16,698) |
| Stellantis N.V. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 2,012 | Monthly | 33,460 | 745 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,203 | Monthly | 241,854 | (4,745) |
| Tenet Healthcare Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 722 | Monthly | 52,913 | 112 |
| TJX (The) Cos., Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 4,431 | Monthly | 351,640 | 7,750 |
| Toll Brothers, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 6,000 | Monthly | 383,364 | 10,441 |
| Trane Technologies PLC | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,940 | Monthly | 360,111 | 17,312 |
| Travelers (The) Cos., Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 742 | Monthly | 134,249 | 7,104 |
| Trimble, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 40 | Monthly | 1,880 | (108) |
| Uber Technologies, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 11,604 | Monthly | 359,875 | (10,191) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Long Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Pays
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| UDR, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 6,596 | Monthly | $ 272,066 | $ 3,689 |
| Union Pacific Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 2,240 | Monthly | 438,243 | (10,384) |
| United Rentals North America, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 304 | Monthly | 109,765 | (4,017) |
| United States Steel Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 23,603 | Monthly | 539,262 | (81,083) |
| Universal Health Services, Inc., Class B | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 3,011 | Monthly | 453,352 | 40,672 |
| Valero Energy Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 3,631 | Monthly | 416,254 | (18,686) |
| Valero Energy Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 869 | Monthly | 99,559 | (7,837) |
| VeriSign, Inc. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,593 | Monthly | 352,892 | 7,004 |
| Vulcan Materials Co. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,274 | Monthly | 222,827 | 3,852 |
| Walmart, Inc. | U.S. Fed Funds + 0.20% | 2/8/2024 | JPMorgan Chase | 1,264 | Monthly | 190,303 | 58 |
| WestRock Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 18,394 | Monthly | 550,384 | (15,383) |
| Weyerhaeuser Co. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 26,056 | Monthly | 779,113 | (18,201) |
| Whirlpool Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,029 | Monthly | 143,461 | 2,508 |
| Williams (The) Cos., Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 5,401 | Monthly | 163,389 | (424) |
| Williams (The) Cos., Inc. | U.S. Fed Funds | 8/19/2026 | Goldman Sachs | 56 | Monthly | 1,692 | (5) |
| Wynn Resorts Finance LLC/Wynn Resourts Capital Corp. | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | 1,000 | Monthly | 114,132 | 1,795 |
| Xcel Energy, Inc. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 348 | Monthly | 24,322 | (397) |
| Xerox Holdings Corp. | U.S. Fed Funds + 0.20% | 1/24/2024 | Barclays | 12,247 | Monthly | 191,859 | 25,422 |
| Yum Brands, Inc. | U.S. Fed Funds | 8/19/2026 | Goldman Sachs | 304 | Monthly | 43,560 | 1,881 |
| Total (Cost $59,627,364) | | | | 1,077,031 | | $59,107,206 | $(520,158) |
Short Contracts for Difference at April 30, 2023:
Over the Counter |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Advance Drainage Systems, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,142) | Monthly | $ (354,964) | $ 2,034 |
| Advanced Micro Devices, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,960) | Monthly | (443,169) | (9,113) |
| AES (The) Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (11,856) | Monthly | (280,445) | 5,027 |
| AES (The) Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (18,607) | Monthly | (439,354) | 21,658 |
| Ally Financial, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (17,165) | Monthly | (452,280) | 11,149 |
| Amazon.com, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,165) | Monthly | (333,661) | 2,403 |
| Amcor, PLC | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (18,909) | Monthly | (207,378) | 1,945 |
| American Airlines Group, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (11,402) | Monthly | (155,191) | 4,301 |
| Aptiv PLC | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,371) | Monthly | (346,657) | 8,601 |
| Avis Budget Group, Inc. | U.S. Fed Funds + (0.18)% | 2/8/2024 | JPMorgan Chase | (865) | Monthly | (152,611) | 7,567 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Axalta Coating Systems, Ltd. | U.S. Fed Funds | 1/24/2024 | Barclays | (462) | Monthly | $ (14,585) | $ (13) |
| Baker Hughes Co., Class A | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (7,392) | Monthly | (216,066) | 7,099 |
| Ball Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (8,273) | Monthly | (439,855) | (7,898) |
| Ball Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (6,596) | Monthly | (350,067) | (6,811) |
| Barrick Gold Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (16,205) | Monthly | (308,543) | 5,380 |
| Baxter International, Inc. | U.S. Fed Funds + 0.32% | 1/24/2024 | Barclays | (4,433) | Monthly | (211,365) | (7,400) |
| Block, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (5,249) | Monthly | (318,378) | 26,888 |
| Boeing (The) Co. | U.S. Fed Funds + 0.07% | 1/24/2024 | Barclays | (495) | Monthly | (102,336) | (458) |
| Boeing (The) Co. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,006) | Monthly | (207,836) | (337) |
| Booking Holdings, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (41) | Monthly | (110,098) | (231) |
| Booz Allen Hamilton Holding Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (3,534) | Monthly | (337,878) | 4,673 |
| Broadcom, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (540) | Monthly | (338,222) | 4,430 |
| Brown & Brown, Inc. | U.S. Fed Funds + 0.08% | 8/19/2026 | Goldman Sachs | (5,571) | Monthly | (358,331) | (25,129) |
| Bunge Ltd. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,274) | Monthly | (306,366) | 5,449 |
| Canadian Natural Resources Ltd. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (5,880) | Monthly | (358,417) | (3,596) |
| Capital One Financial Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,484) | Monthly | (436,182) | (4,194) |
| Capital One Financial Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,108) | Monthly | (107,683) | 713 |
| Carnival Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (13,181) | Monthly | (121,366) | 954 |
| Catalent Pharma Solutions, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,218) | Monthly | (211,210) | (21,670) |
| CBRE Group, Inc., Class A | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,151) | Monthly | (164,692) | (9,196) |
| Celanese Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,888) | Monthly | (306,743) | (1,539) |
| Cenovus Energy, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (18,413) | Monthly | (308,989) | 15,386 |
| Charles River Laboratories International, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,295) | Monthly | (245,918) | 22,061 |
| Charter Communications, Inc., Class A | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,049) | Monthly | (386,691) | (35,434) |
| Charter Communications, Inc., Class A | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (1,014) | Monthly | (373,147) | (17,189) |
| Church & Dwight Co., Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,935) | Monthly | (187,736) | (13,629) |
| Ciena Corpment, Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,950) | Monthly | (89,761) | 330 |
| Ciena Corpment, Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,071) | Monthly | (187,195) | 14,890 |
| Cleveland Cliffs, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (16,147) | Monthly | (248,299) | 6,605 |
| Conagra Brands, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,030) | Monthly | (152,940) | (928) |
| Conagra Brands, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (3,423) | Monthly | (129,672) | (1,069) |
| Conagra Brands, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (3,905) | Monthly | (148,065) | (2,526) |
| Corteva, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (7,091) | Monthly | (432,519) | (5,003) |
| Crocs, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,361) | Monthly | (291,605) | 36,669 |
| D.R. Horton, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (7,017) | Monthly | (770,406) | (8,992) |
| Danaher Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,623) | Monthly | (384,395) | 25,516 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Danaher Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (592) | Monthly | $ (140,019) | $ 11,385 |
| Deere & Co. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (196) | Monthly | (74,082) | 716 |
| Dell Technologies, Inc., Class C | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (7,875) | Monthly | (342,083) | 3,865 |
| Devon Energy Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (8,416) | Monthly | (448,806) | (131) |
| Diamondback Energy, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (289) | Monthly | (41,085) | 383 |
| Diamondback Energy, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (628) | Monthly | (89,165) | 1,644 |
| Discover Financial Services | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,130) | Monthly | (116,787) | (781) |
| Discovery Incment, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (25,663) | Monthly | (348,870) | 20,835 |
| DISH Network Corp., Class A | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,497) | Monthly | (11,233) | (20) |
| Dollar General Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,062) | Monthly | (234,289) | (7,531) |
| Dollar Tree, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,272) | Monthly | (348,843) | (15,586) |
| Dominion Energy, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,904) | Monthly | (223,025) | 1,301 |
| Dow, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (7,423) | Monthly | (403,330) | 18,773 |
| Eastman Chemical Co. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,252) | Monthly | (189,564) | (2,156) |
| Ecolab, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,225) | Monthly | (205,552) | (2,104) |
| Enbridge, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (11,017) | Monthly | (437,147) | (6,713) |
| Entegris, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,732) | Monthly | (354,146) | (14,746) |
| EQT Corp. | U.S. Fed Funds + 0.05% | 1/24/2024 | Barclays | (9,430) | Monthly | (328,468) | (20,855) |
| Equifax, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (1,650) | Monthly | (343,203) | (16,805) |
| Equinix, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (352) | Monthly | (254,812) | (3,825) |
| Equity Residential | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (6,956) | Monthly | (439,478) | (13,395) |
| FedEx Corp. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (359) | Monthly | (81,694) | 746 |
| FirstEnergy Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (8,317) | Monthly | (330,652) | 9,032 |
| Fiserv, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,503) | Monthly | (427,681) | (16,779) |
| Foot Locker, Inc. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (8,141) | Monthly | (341,493) | (10,997) |
| Ford Motor Co. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (29,900) | Monthly | (354,015) | 8,212 |
| Ford Motor Co. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (16,150) | Monthly | (191,625) | 13,157 |
| Freeport-McMoRan, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (10,935) | Monthly | (414,051) | 42,775 |
| Gap (The), Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (46,908) | Monthly | (450,204) | 19,802 |
| Gap (The), Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (21,986) | Monthly | (210,823) | (1,076) |
| General Electric Co. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,436) | Monthly | (439,036) | 5,230 |
| General Electric Co. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (3,441) | Monthly | (340,243) | (5,103) |
| General Mills, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (290) | Monthly | (25,709) | (58) |
| General Motors Co. | U.S. Fed Funds + 0.07% | 1/24/2024 | Barclays | (5,403) | Monthly | (178,460) | 6,809 |
| Global Payments, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (202) | Monthly | (22,755) | (890) |
| Graphic Packaging Holding Company | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (13,828) | Monthly | (340,600) | 3,856 |
| Hartford Financial Services Group (The), Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,243) | Monthly | (159,190) | (2,449) |
| HCA Healthcare, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (582) | Monthly | (167,184) | (3,791) |
| Hess Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,996) | Monthly | (434,488) | 2,119 |
| Hess Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (1,611) | Monthly | (233,251) | (3,874) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Hewlett Packard Enterprise Co. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (111) | Monthly | $ (1,589) | $ 3 |
| Host Hotels & Resorts, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (6,950) | Monthly | (112,361) | 312 |
| Host Hotels & Resorts, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (23,768) | Monthly | (383,896) | 8,226 |
| Howmet Aerospace Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (6,020) | Monthly | (266,559) | (6,074) |
| Howmet Aerospace Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,817) | Monthly | (213,089) | (6,585) |
| HP, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (943) | Monthly | (28,017) | (226) |
| Hyatt Hotels Corp., Class A | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (2,991) | Monthly | (341,249) | (14,512) |
| Intel Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (11,965) | Monthly | (371,232) | 10,025 |
| International Business Machines Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,448) | Monthly | (435,759) | (3,243) |
| International Flavors & Fragrances, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,607) | Monthly | (349,645) | 451 |
| Intui, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (32) | Monthly | (14,203) | (49) |
| Invitation Homes, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (639) | Monthly | (21,318) | (327) |
| Iron Mountain, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (7,796) | Monthly | (430,542) | (6,752) |
| Kinder Morgan, Inc. | U.S. Fed Funds + 0.05% | 1/24/2024 | Barclays | (1,204) | Monthly | (20,649) | 566 |
| Kohls Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (14,633) | Monthly | (322,284) | 12,799 |
| Kohls Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (19,299) | Monthly | (424,673) | 23,445 |
| Kraft Heinz Foods Co. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (10,659) | Monthly | (418,472) | (852) |
| Lamb Weston Holdings, Inc. | U.S. Fed Funds + 0.32% | 1/24/2024 | Barclays | (1,232) | Monthly | (137,740) | (1,548) |
| Lamb Weston Holdings, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (3,980) | Monthly | (444,499) | (8,809) |
| Las Vegas Sands Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (384) | Monthly | (24,369) | (2,031) |
| Lennar Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (344) | Monthly | (38,799) | (359) |
| LIncoln National Corp. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (11,941) | Monthly | (259,478) | (3,825) |
| Lithia Motors, Inc., Class A | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,581) | Monthly | (348,830) | 7,838 |
| LyondellBasell Industries N.V., Class A | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,349) | Monthly | (222,182) | 1,302 |
| Macys, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,696) | Monthly | (27,697) | 1,237 |
| Macys, Inc. | U.S. Fed Funds + 0.09% | 8/19/2026 | Goldman Sachs | (1,314) | Monthly | (21,444) | 2,038 |
| Marriott International, Inc., Class A | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (2,501) | Monthly | (422,771) | (12,842) |
| McCormick & Co., Inc. (Non Voting) | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (195) | Monthly | (17,126) | (509) |
| Medical Properties Trust, Inc. | U.S. Fed Funds + 0.05% | 1/24/2024 | Barclays | (10,960) | Monthly | (96,104) | (7,253) |
| Medical Properties Trust, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (29,782) | Monthly | (260,629) | (11,354) |
| Meta Platform Inc., Class A | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,422) | Monthly | (341,649) | (39,280) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Metlife, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (1,091) | Monthly | $ (66,837) | $ (1,180) |
| MGIC Investment Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,636) | Monthly | (54,054) | (2,023) |
| MGIC Investment Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (5,643) | Monthly | (83,818) | (3,406) |
| Micron Technology, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (5,695) | Monthly | (365,813) | (6,729) |
| Molina Healthcare, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,170) | Monthly | (348,128) | (4,040) |
| Mondelez International, Inc., Class A | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,864) | Monthly | (142,854) | (11,890) |
| Newell Brands, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (27,418) | Monthly | (333,049) | 378 |
| NextEra Energy, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (5,489) | Monthly | (420,511) | 13,340 |
| NextEra Energy, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (3,644) | Monthly | (278,930) | 6,645 |
| Nordstrom, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,846) | Monthly | (43,987) | 2,232 |
| Nordstrom, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (15,605) | Monthly | (240,673) | 18,994 |
| Nordstrom, Inc. | U.S. Fed Funds + (0.55)% | 8/19/2026 | Goldman Sachs | (3,355) | Monthly | (51,802) | 5,233 |
| Northrop Grumman Corp. | U.S. Fed Funds + 0.06% | 8/19/2026 | Goldman Sachs | (115) | Monthly | (53,046) | (855) |
| Norwegian Cruise Line Holdings Ltd. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (27,296) | Monthly | (364,316) | (8,834) |
| NRG Energy, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (12,348) | Monthly | (421,820) | 10,360 |
| NRG Energy, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (10,202) | Monthly | (347,897) | 10,216 |
| Onemain Holdings, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (11,264) | Monthly | (431,704) | (3,108) |
| Oracle Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (3,623) | Monthly | (342,180) | (2,488) |
| Oracle Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,565) | Monthly | (431,892) | 4,477 |
| Ovintiv, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (5,099) | Monthly | (183,749) | 8,840 |
| Packaging Corp. Of America | U.S. Fed Funds + 0.20% | 8/19/2026 | Goldman Sachs | (1,198) | Monthly | (162,041) | 9,128 |
| PayPal Holdings, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (714) | Monthly | (54,250) | (1,207) |
| Philip Morris International, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,691) | Monthly | (168,883) | 5 |
| Procter & Gamble (The) Co. | U.S. Fed Funds + 0.10% | 8/19/2026 | Goldman Sachs | (2,768) | Monthly | (431,404) | (13,298) |
| Progressive Corp. | U.S. Fed Funds + 0.32% | 1/24/2024 | Barclays | (2,091) | Monthly | (285,144) | (2,235) |
| Prologis, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (2,880) | Monthly | (360,016) | (4,156) |
| Prudential Financial, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,576) | Monthly | (397,672) | 370 |
| PulteGroup, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (6,733) | Monthly | (452,011) | (22,041) |
| PulteGroup, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (5,244) | Monthly | (351,466) | (45,584) |
| Quanta Services, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (2,101) | Monthly | (355,713) | (16,317) |
| Quest Diagnostics, Inc. | U.S. Fed Funds + 0.10% | 8/19/2026 | Goldman Sachs | (280) | Monthly | (38,867) | 1,545 |
| Radian Group, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (8,741) | Monthly | (211,747) | (19,620) |
| Raymond James Financial, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,841) | Monthly | (256,903) | 14,715 |
| Raytheon Technologies Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (4,199) | Monthly | (418,617) | (312) |
| Sempra Energy | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (11) | Monthly | (1,710) | 26 |
| Sempra Energy | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,647) | Monthly | (411,564) | (1,332) |
| Sherwin-Williams (The) Co. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,841) | Monthly | (437,199) | (1,692) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| Sherwin-Williams (The) Co. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (154) | Monthly | $ (36,571) | $ (823) |
| Simon Property Group, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (3,667) | Monthly | (415,127) | (8,019) |
| Southern (The) Co. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (6,075) | Monthly | (446,344) | (6,688) |
| Southern Copper Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,626) | Monthly | (355,329) | 10,860 |
| Southwest Airlines Co. | U.S. Fed Funds + 0.07% | 1/24/2024 | Barclays | (10,460) | Monthly | (316,833) | 18,481 |
| Stanley Black & Decker, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (4,220) | Monthly | (364,267) | (27,744) |
| Steris, PLC | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (115) | Monthly | (14,635) | 243 |
| Synchrony Financial | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (9,844) | Monthly | (290,197) | 4,042 |
| Take-Two Interactive Software, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,212) | Monthly | (150,600) | 4,282 |
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (1,025) | Monthly | (77,247) | 38 |
| Target Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,440) | Monthly | (699,558) | 21,450 |
| TC Energy Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,552) | Monthly | (147,513) | (3,480) |
| TC Energy Corp. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (3,381) | Monthly | (140,331) | (2,729) |
| TC Energy Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (7,654) | Monthly | (317,475) | 6,519 |
| Teck Resources Ltd., Class B | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (4,993) | Monthly | (232,233) | (18,682) |
| Teck Resources Ltd., Class B | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (3,602) | Monthly | (167,676) | 5,731 |
| Teledyne Technologies, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (740) | Monthly | (306,259) | 17,942 |
| Teleflex, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (215) | Monthly | (58,581) | (919) |
| Tesla, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (2,665) | Monthly | (437,399) | 48,082 |
| Thermo Fisher Scientific, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (500) | Monthly | (276,753) | 10,427 |
| T-Mobile US, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,207) | Monthly | (317,516) | 5,668 |
| T-Mobile US, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (991) | Monthly | (142,298) | 6,342 |
| TransDigm, Inc. | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (270) | Monthly | (206,141) | (7,985) |
| TransDigm, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (313) | Monthly | (239,172) | (3,032) |
| Transocean Ltd. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (53,942) | Monthly | (317,891) | 31,235 |
| Twilio Inc. | U.S. Fed Funds + 0.32% | 1/24/2024 | Barclays | (902) | Monthly | (47,441) | 2,196 |
| Tyson Foods, Inc., Class A | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (7,188) | Monthly | (448,667) | (7,036) |
| United Airlines Holdings, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (10,014) | Monthly | (438,157) | (13,844) |
| United Parcel Service, Inc., Class B | U.S. Fed Funds + (0.15)% | 2/8/2024 | JPMorgan Chase | (1,922) | Monthly | (344,869) | 20,257 |
| United Parcel Service, Inc., Class B | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,882) | Monthly | (338,402) | 23,509 |
| UnitedHealth Group, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (565) | Monthly | (277,897) | (1,646) |
| Verisk Analytics, Inc. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (1,803) | Monthly | (349,600) | (3,283) |
| Verizon Communications, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (11,423) | Monthly | (443,033) | 7,718 |
| VF Corp. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (13,834) | Monthly | (324,960) | (14,006) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Short Contracts for Difference at April 30, 2023:
Over the Counter (continued) |
| | | | | | | | |
| Reference Company | The Fund Receives
Financing Rate | Expiration
Date | Counterparty | Notional
Amount | Pay
Frequency | Value | Unrealized
Appreciation
(Depreciation) |
| ViacomCBS, Inc., Class B | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (28,358) | Monthly | $ (661,427) | $(21,581) |
| VICI Properties, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (10,426) | Monthly | (353,770) | (7,731) |
| Vistra Operations Co. LLC | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (18,725) | Monthly | (446,291) | 6,197 |
| Walgreen Boots Alliance, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (9,622) | Monthly | (338,775) | 7,039 |
| Walt Disney (The) Co. | U.S. Fed Funds | 2/8/2024 | JPMorgan Chase | (80) | Monthly | (8,183) | (119) |
| Walt Disney (The) Co. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (1,214) | Monthly | (124,381) | (3,430) |
| Welltower, Inc. | U.S. Fed Funds + (0.15)% | 8/19/2026 | Goldman Sachs | (4,549) | Monthly | (359,959) | (17,693) |
| Western Digital Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (7,914) | Monthly | (272,513) | (11,538) |
| Whirlpool Corp. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (3,287) | Monthly | (458,722) | 931 |
| Workday, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (1,096) | Monthly | (203,943) | 3,300 |
| Zimmer Biomet Holdings, Inc. | U.S. Fed Funds + (0.15)% | 1/24/2024 | Barclays | (2,315) | Monthly | (320,407) | (612) |
| Zoetis, Inc. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (940) | Monthly | (165,219) | (1,314) |
| ZoomInfo Technologies, Inc. | U.S. Fed Funds + 0.33% | 8/19/2026 | Goldman Sachs | (5,132) | Monthly | (112,309) | 2,699 |
| Total (Cost $53,317,971) | | | | (1,211,680) | | $(53,280,400) | $ 37,571 |
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 1-Day CHF SARON (Annually) | 1.58% (Annually) | 3/15/2028 | CHF | 50,000 | $ (606) | $ — | $ (606) |
| 3.69% (Quarterly) | 3M HKD HIBOR (Quarterly) | 3/15/2028 | HKD | 426,400 | (601) | — | (601) |
| 3M KRW KSDA (Quarterly) | 3.28% (Quarterly) | 3/15/2028 | KRW | 148,817,025 | 638 | — | 638 |
| 8.59% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 6/14/2028 | MXN | 510,000 | (241) | — | (241) |
| 8.60% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 6/14/2028 | MXN | 1,040,000 | (508) | — | (508) |
| 8.41% (Quarterly) | 3M ZAR JIBAR (Quarterly) | 6/21/2028 | ZAR | 510,000 | 118 | — | 118 |
| 8.20% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 4,050,000 | (456) | — | (456) |
| 8.35% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 1,400,000 | (612) | — | (612) |
| 8.37% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 8,890,000 | (4,197) | — | (4,197) |
| 8.38% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 4,490,000 | (2,255) | — | (2,255) |
| 8.47% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 3,470,000 | (2,419) | — | (2,419) |
| 8.82% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 2,380,000 | (3,462) | — | (3,462) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 8.86% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 25,390,000 | $ (38,995) | $ — | $ (38,995) |
| 8.96% (Monthly) | 28-Day MXN-TIIE-BANXICO (Monthly) | 9/13/2028 | MXN | 1,600,000 | (2,812) | — | (2,812) |
| 1-Day CHF SARON (Annually) | 1.83% (Annually) | 9/20/2028 | CHF | 300,000 | (165) | (896) | 731 |
| 1-Day CHF SARON (Annually) | 1.93% (Annually) | 9/20/2028 | CHF | 130,000 | 619 | — | 619 |
| 1-Day CHF SARON (Annually) | 1.66% (Annually) | 9/20/2028 | CHF | 110,000 | (1,058) | — | (1,058) |
| 1-Day CHF SARON (Annually) | 1.98% (Annually) | 9/20/2028 | CHF | 90,000 | 647 | — | 647 |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.87% (Annually) | 9/20/2028 | GBP | 580,000 | (246) | (2,722) | 2,476 |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.42% (Annually) | 9/20/2028 | GBP | 240,000 | (6,054) | — | (6,054) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.90% (Annually) | 9/20/2028 | GBP | 220,000 | 277 | — | 277 |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.49% (Annually) | 9/20/2028 | GBP | 200,000 | (4,309) | — | (4,309) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.61% (Annually) | 9/20/2028 | GBP | 190,000 | (2,843) | — | (2,843) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.63% (Annually) | 9/20/2028 | GBP | 110,000 | (1,498) | — | (1,498) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.96% (Annually) | 9/20/2028 | GBP | 90,000 | 410 | — | 410 |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.34% (Annually) | 9/20/2028 | GBP | 70,000 | (2,075) | — | (2,075) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.67% (Annually) | 9/20/2028 | GBP | 50,000 | (576) | (92) | (484) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.73% (Annually) | 9/20/2028 | GBP | 40,000 | (331) | — | (331) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.52% (Annually) | 9/20/2028 | GBP | 30,000 | (582) | 36 | (618) |
| 1-Day GBP Sterling Overnight Index Average Rate (Annually) | 3.76% (Annually) | 9/20/2028 | GBP | 30,000 | (189) | (70) | (119) |
| 1-Day INR MIBOR (Semi-Annually) | 5.95% (Semi-Annually) | 9/20/2028 | INR | 4,030,000 | (126) | — | (126) |
| 1-Day SGD SORA (Semi-Annually) | 2.68% (Semi-Annually) | 9/20/2028 | SGD | 136,500 | (21) | — | (21) |
| 1-Day SGD SORA (Semi-Annually) | 2.72% (Semi-Annually) | 9/20/2028 | SGD | 83,500 | 93 | — | 93 |
| 1-Day SGD SORA (Semi-Annually) | 2.75% (Semi-Annually) | 9/20/2028 | SGD | 75,000 | 169 | — | 169 |
| 1-Day SGD SORA (Semi-Annually) | 2.67% (Semi-Annually) | 9/20/2028 | SGD | 50,000 | (25) | — | (25) |
| 1-Day THB THBRO (Quarterly) | 2.47% (Quarterly) | 9/20/2028 | THB | 3,890,000 | 1,330 | — | 1,330 |
| 1-Day THB THBRO (Quarterly) | 2.55% (Quarterly) | 9/20/2028 | THB | 2,520,000 | 1,158 | — | 1,158 |
| 1-Day THB THBRO (Quarterly) | 2.51% (Quarterly) | 9/20/2028 | THB | 830,000 | 330 | — | 330 |
| 2.26% (Quarterly) | 1-Day THB THBRO (Quarterly) | 9/20/2028 | THB | 1,620,000 | (83) | — | (83) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 2.77% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 45,000 | $ (132) | $ — | $ (132) |
| 2.82% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 3,120,000 | 964 | — | 964 |
| 2.83% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,660,000 | 421 | — | 421 |
| 2.88% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,940,000 | 102 | — | 102 |
| 2.90% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,460,000 | (69) | (4) | (65) |
| 2.92% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/20/2028 | CAD | 150,000 | 1,461 | 149 | 1,312 |
| 2.93% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,570,000 | (300) | (487) | 187 |
| 3.00% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 3,170,000 | (1,517) | — | (1,517) |
| 3.01% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,160,000 | (619) | — | (619) |
| 3.05% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,920,000 | (1,322) | — | (1,322) |
| 3.06% (Annually) | 2-Day USD SOFR (Annually) | 9/20/2028 | USD | 130,000 | 557 | 154 | 403 |
| 3.10% (Annually) | 2-Day USD SOFR (Annually) | 9/20/2028 | USD | 60,000 | 128 | — | 128 |
| 3.13% (Semi-Annually) | 3M CAD CIDOR (Semi-Annually) | 9/20/2028 | CAD | 160,000 | 460 | — | 460 |
| 3.21% (Annually) | 2-Day USD SOFR (Annually) | 9/20/2028 | USD | 80,000 | (226) | — | (226) |
| 3.23% (Annually) | 2-Day USD SOFR (Annually) | 9/20/2028 | USD | 80,000 | (271) | 1 | (272) |
| 3.28% (Annually) | 2-Day USD SOFR (Annually) | 9/20/2028 | USD | 140,000 | (791) | 29 | (820) |
| 3.30% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 820,000 | (1,497) | — | (1,497) |
| 3.32% (Annually) | 2-Day USD SOFR (Annually) | 9/20/2028 | USD | 50,000 | (373) | (205) | (168) |
| 3.34% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 280,000 | (6,331) | — | (6,331) |
| 3.36% (Quarterly) | 3M SEK STBOR (Quarterly) | 9/20/2028 | SEK | 1,890,000 | (3,905) | 749 | (4,654) |
| 3.39% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 230,000 | 928 | — | 928 |
| 3.40% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 80,000 | (1,960) | — | (1,960) |
| 3.44% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 180,000 | (4,642) | — | (4,642) |
| 3.46% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 740,975 | (19,820) | — | (19,820) |
| 3.46% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 250,000 | 418 | — | 418 |
| 3.48% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 140,000 | (3,812) | — | (3,812) |
| 3.50% (Semi-Annually) | 1-Day SGD SORA (Semi-Annually) | 9/20/2028 | SGD | 254,115 | (7,120) | — | (7,120) |
| 3.51% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 140,000 | 33 | — | 33 |
| 3.55% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 220,000 | (179) | — | (179) |
| 3.59% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 60,000 | (119) | — | (119) |
| 3.68% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 120,000 | (589) | — | (589) |
| 3.69% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 115,000 | (582) | — | (582) |
| 3.71% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 100,000 | (563) | — | (563) |
| 3.73% (Quarterly) | 3M ILS TELBO (Quarterly) | 9/20/2028 | ILS | 170,000 | (307) | — | (307) |
| 3.74% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 290,000 | (1,937) | — | (1,937) |
| 3.76% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 115,000 | (818) | — | (818) |
| 3.80% (Semi-Annually) | 6M ASX BBSW (Semi-Annually) | 9/20/2028 | AUD | 270,000 | (2,248) | — | (2,248) |
| 3M HKD HIBOR (Quarterly) | 3.12% (Quarterly) | 9/20/2028 | HKD | 1,550,000 | (2,366) | — | (2,366) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Interest Rate Swap Contracts outstanding at April 30, 2023:
Centrally Cleared (continued) |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 3M HKD HIBOR (Quarterly) | 4.26% (Quarterly) | 9/20/2028 | HKD | 1,110,000 | $ 5,638 | $ — | $ 5,638 |
| 3M HKD HIBOR (Quarterly) | 3.22% (Quarterly) | 9/20/2028 | HKD | 930,000 | (881) | — | (881) |
| 3M HKD HIBOR (Quarterly) | 3.23% (Quarterly) | 9/20/2028 | HKD | 820,000 | (724) | — | (724) |
| 3M HKD HIBOR (Quarterly) | 3.31% (Quarterly) | 9/20/2028 | HKD | 820,000 | (373) | — | (373) |
| 3M HKD HIBOR (Quarterly) | 3.52% (Quarterly) | 9/20/2028 | HKD | 795,000 | 606 | — | 606 |
| 3M HKD HIBOR (Quarterly) | 3.47% (Quarterly) | 9/20/2028 | HKD | 795,000 | 376 | — | 376 |
| 3M HKD HIBOR (Quarterly) | 4.21% (Quarterly) | 9/20/2028 | HKD | 730,000 | 3,497 | — | 3,497 |
| 3M HKD HIBOR (Quarterly) | 4.25% (Quarterly) | 9/20/2028 | HKD | 710,000 | 3,545 | — | 3,545 |
| 3M HKD HIBOR (Quarterly) | 4.02% (Quarterly) | 9/20/2028 | HKD | 440,000 | 1,610 | — | 1,610 |
| 3M HKD HIBOR (Quarterly) | 4.17% (Quarterly) | 9/20/2028 | HKD | 380,000 | 1,721 | — | 1,721 |
| 3M HKD HIBOR (Quarterly) | 3.44% (Quarterly) | 9/20/2028 | HKD | 310,000 | 107 | — | 107 |
| 3M HKD HIBOR (Quarterly) | 3.10% (Quarterly) | 9/20/2028 | HKD | 250,000 | (411) | — | (411) |
| 3M HKD HIBOR (Quarterly) | 3.06% (Quarterly) | 9/20/2028 | HKD | 250,000 | (468) | — | (468) |
| 3M KRW KSDA (Quarterly) | 3.13% (Quarterly) | 9/20/2028 | KRW | 604,070,000 | 748 | — | 748 |
| 3M KRW KSDA (Quarterly) | 3.50% (Quarterly) | 9/20/2028 | KRW | 321,790,000 | 4,499 | — | 4,499 |
| 3M KRW KSDA (Quarterly) | 2.93% (Quarterly) | 9/20/2028 | KRW | 309,495,000 | (1,764) | — | (1,764) |
| 3M KRW KSDA (Quarterly) | 2.94% (Quarterly) | 9/20/2028 | KRW | 309,495,000 | (1,625) | — | (1,625) |
| 3M KRW KSDA (Quarterly) | 3.07% (Quarterly) | 9/20/2028 | KRW | 188,430,000 | (163) | — | (163) |
| 3M KRW KSDA (Quarterly) | 3.05% (Quarterly) | 9/20/2028 | KRW | 173,110,000 | (299) | — | (299) |
| 3M KRW KSDA (Quarterly) | 3.02% (Quarterly) | 9/20/2028 | KRW | 154,710,000 | (401) | — | (401) |
| 3M KRW KSDA (Quarterly) | 3.11% (Quarterly) | 9/20/2028 | KRW | 109,194,000 | 37 | — | 37 |
| 3M KRW KSDA (Quarterly) | 3.06% (Quarterly) | 9/20/2028 | KRW | 72,796,000 | (82) | — | (82) |
| 3M KRW KSDA (Quarterly) | 3.09% (Quarterly) | 9/20/2028 | KRW | 63,990,000 | (18) | — | (18) |
| 3M KRW KSDA (Quarterly) | 3.04% (Quarterly) | 9/20/2028 | KRW | 63,470,000 | (115) | — | (115) |
| 3M KRW KSDA (Quarterly) | 3.08% (Quarterly) | 9/20/2028 | KRW | 61,940,000 | (43) | — | (43) |
| 3M ZAR JIBAR (Quarterly) | 8.60% (Quarterly) | 9/20/2028 | ZAR | 2,630,000 | 81 | — | 81 |
| 4.80% (Quarterly) | 3M NZD BBR (Quarterly) | 9/20/2028 | NZD | 200,000 | (3,493) | — | (3,493) |
| 6M CZK PRBOR (Semi-Annually) | 4.66% (Annually) | 9/20/2028 | CZK | 3,780,000 | 1,547 | — | 1,547 |
| 6M CZK PRBOR (Semi-Annually) | 4.50% (Annually) | 9/20/2028 | CZK | 3,360,000 | 288 | — | 288 |
| 6M CZK PRBOR (Semi-Annually) | 4.76% (Annually) | 9/20/2028 | CZK | 2,560,000 | 1,576 | — | 1,576 |
| 6M CZK PRBOR (Semi-Annually) | 4.58% (Annually) | 9/20/2028 | CZK | 1,970,000 | 460 | — | 460 |
| 6M CZK PRBOR (Semi-Annually) | 4.44% (Annually) | 9/20/2028 | CZK | 920,000 | (42) | — | (42) |
| 6M EUR EURIBOR (Semi-Annually) | 2.77% (Annually) | 9/20/2028 | EUR | 140,000 | (1,517) | — | (1,517) |
| 6M EUR EURIBOR (Semi-Annually) | 3.01% (Annually) | 9/20/2028 | EUR | 100,000 | 112 | — | 112 |
| 6M NOK NIBOR (Semi-Annually) | 3.02% (Annually) | 9/20/2028 | NOK | 280,000 | (392) | — | (392) |
| 6M PLN WIBOR (Semi-Annually) | 5.45% (Annually) | 9/20/2028 | PLN | 720,000 | 1,097 | — | 1,097 |
| 6M PLN WIBOR (Semi-Annually) | 5.37% (Annually) | 9/20/2028 | PLN | 390,000 | 277 | — | 277 |
| 6M PLN WIBOR (Semi-Annually) | 5.44% (Annually) | 9/20/2028 | PLN | 320,000 | 451 | — | 451 |
| 6M PLN WIBOR (Semi-Annually) | 5.33% (Annually) | 9/20/2028 | PLN | 100,000 | 34 | — | 34 |
| 7-Day CNY CNRR (Quarterly) | 2.88% (Quarterly) | 9/20/2028 | CNY | 490,000 | 285 | — | 285 |
| 8.64% (Quarterly) | 3M ZAR JIBAR (Quarterly) | 9/20/2028 | ZAR | 940,000 | (120) | — | (120) |
| Total | | | | | $(114,838) | $(3,358) | $(111,480) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Credit Default Swap Contracts outstanding - Buy Protection as of April 30, 2023:
Centrally Cleared
| Reference Obligation | Fixed
Deal
Pay Rate | Maturity
Date | | | Notional
Amount | Value | Upfront
Premiums
Paid/
(Received) | Unrealized
Appreciation
(Depreciation) |
| Markit CDX North America High Yield Index Series 40 (Pay Quarterly) | 5.00% | 6/20/2028 | | USD | 3,335,000 | $ (67,140) | $ 3,276 | $ (70,416) |
| Markit CDX North America Investment Grade Index Series 40 (Pay Quarterly) | 1.00% | 6/20/2028 | | USD | 3,600,000 | (44,762) | (16,758) | (28,004) |
| Total | | | | | | $(111,902) | $(13,482) | $(98,420) |
Inflation Swap Contracts outstanding at April 30, 2023:
Centrally Cleared |
| | | | | | | | |
Pay Rate Index/
Pay Rate | Receive Rate Index/
Receive Rate | Maturity
Date | | Notional
Amount | Value | Upfront
Premiums
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| 2.38% (At Maturity) | 1-Day U.S. Consumer Price Index (At Maturity) | 2/15/2033 | EUR | 250,000 | $2,137 | $ (54) | $ 2,191 |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.47% (At Maturity) | 3/23/2033 | USD | 130,000 | (585) | — | (585) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.53% (At Maturity) | 4/13/2033 | USD | 180,000 | 489 | — | 489 |
| 1-Day U.S. Consumer Price Index (At Maturity) | 2.50% (At Maturity) | 4/14/2033 | USD | 610,000 | 120 | — | 120 |
| 1-Day U.S. Consumer Price Index (At Maturity) | 3.77% (At Maturity) | 4/15/2033 | GBP | 460,000 | 1,137 | 2,398 | (1,261) |
| 1-Day U.S. Consumer Price Index (At Maturity) | 3.78% (At Maturity) | 4/15/2033 | GBP | 420,000 | 1,296 | (199) | 1,495 |
| Total | | | | | $4,594 | $2,145 | $ 2,449 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Schedule of Investments (continued)
Morningstar Alternatives Fund
Valuation Hierarchy
The following is a summary of the inputs used, as of April 30, 2023, 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 | $ — | $ 2,591,230 | $ — | $ 2,591,230 |
| Common Stocks | 57,802,872 | 4,509,121 | — | 62,311,993 |
| Convertible Bonds | — | 60,993,944 | — | 60,993,944 |
| Convertible Preferred Stocks | 2,060,225 | 1,148,938 | — | 3,209,163 |
| Corporate Bonds | — | 45,080,732 | — | 45,080,732 |
| Foreign Issuer Bonds | — | 9,399,135 | — | 9,399,135 |
| Master Limited Partnerships | 2,653,534 | — | — | 2,653,534 |
| Mortgage-Backed Securities | — | 47,137,256 | — | 47,137,256 |
| Preferred Stocks | 4,387,529 | — | — | 4,387,529 |
| Rights | — | — | 246,432 | 246,432 |
| Investment Companies | 569,728 | — | — | 569,728 |
| Short-Term Investments | 25,298,904 | 16,080,032 | — | 41,378,936 |
| Purchased Options | 47,325 | 24,564 | — | 71,889 |
| Total Assets – Investments at value | $ 92,820,117 | $186,964,952 | $246,432 | $280,031,501 |
| Liabilities: | | | | |
| Common Stocks | $(18,008,675) | $ — | $ — | $ (18,008,675) |
| Mortgage-Backed Securities | — | (177,793) | — | (177,793) |
| Rights | — | — | —* | — |
| Total Liabilities – Investments at value | $(18,008,675) | $ (177,793) | $ — | $ (18,186,468) |
| Net Investments | $ 74,811,442 | $186,787,159 | $246,432 | $261,845,033 |
| *Includes securities determined to have no value as of April 30, 2023. |
| Morningstar Alternatives Fund | Level 1 | Level 2 | Level 3 | Totals |
| Derivative Financial Instruments | | | | |
| Assets: | | | | |
| Futures Contracts | $ 49,373 | $ — | $— | $ 49,373 |
| Forward Foreign Currency Exchange Contracts | — | 9,983 | — | 9,983 |
| Contracts for Difference | — | 59,107,206 | — | 59,107,206 |
| Swap Agreements | — | 45,032 | — | 45,032 |
| Total Assets - Derivative Financial Instruments | $ 49,373 | $ 59,162,221 | $— | $ 59,211,594 |
| Liabilities: | | | | |
| Futures Contracts | $ (994,281) | $ — | $— | $ (994,281) |
| Forward Foreign Currency Exchange Contracts | — | (162,400) | — | (162,400) |
| Written Options | (6,000) | (5,520) | — | (11,520) |
| Contracts for Difference | — | (53,280,400) | — | (53,280,400) |
| Swap Agreements | — | (267,178) | — | (267,178) |
| Total Liabilities - Derivative Financial Instruments | $(1,000,281) | $(53,715,498) | $— | $(54,715,779) |
| Net Derivative Financial Instruments | $ (950,908) | $ 5,446,723 | $— | $ 4,495,815 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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* | $1,465,779,969 | $810,821,398 | $223,201,088 | $888,469,202 | $329,729,168 |
| Cash | — | 46,001 | — | — | — |
| Foreign currencies, at value | 67,020 | 1,009,014 | 470,681 | 775,411 | — |
| Due from broker | — | — | 1,151,855 | 9,920,847 | — |
| Receivable from Adviser | 38,338 | 81,790 | — | 115,555 | 21,506 |
| Receivable for: | | | | | |
| Dividends and interest | 1,173,049 | 3,298,118 | 1,608,907 | 4,086,790 | 4,066,268 |
| Securities lending income | 6,110 | 2,273 | 5,423 | 6,210 | — |
| Foreign tax reclaims | 138,071 | 1,452,031 | 521,203 | 35,224 | — |
| Investments sold | 9,735,795 | 14,042,913 | 904,713 | 50,837,996 | — |
| Fund shares sold | 962,803 | 520,283 | 281,219 | 732,396 | 272,273 |
| Variation margin on futures contracts | — | — | 140,456 | 1,156,258 | — |
| Variation margin on centrally cleared swap agreements | — | — | 4,150 | 29,935 | — |
| Unrealized appreciation on OTC swap agreements and contracts for differences | — | — | — | 2,710 | — |
| Unrealized appreciation on forward foreign currency exchange contracts | — | — | 41,167 | 115,792 | — |
| Upfront premiums paid on swap agreements | — | — | 21,934 | 611,268 | — |
| Prepaid expenses and other assets | 26,321 | 19,841 | 8,003 | 20,137 | 10,097 |
| Total assets | 1,477,927,476 | 831,293,662 | 228,360,799 | 956,915,731 | 334,099,312 |
| Liabilities | | | | | |
| Investments sold short, at value | — | — | — | 22,039,862 | — |
| Written options, at value | — | — | 8,956 | 755,269 | — |
| Due to broker | — | — | 157,582 | 2,812,789 | — |
| Unrealized depreciation on OTC swap agreements and contracts for differences | — | — | — | 38,237 | — |
| Unrealized depreciation on forward foreign currency exchange contracts | — | — | 112,156 | 163,049 | — |
| Payable for: | | | | | |
| Dividends on short sales | — | — | — | 63,553 | — |
| Investments purchased on a delayed-delivery basis | — | — | — | 101,830,491 | 2,315,954 |
| Investments purchased | 6,550,699 | 1,089,909 | 1,513,983 | 748,100 | 498,406 |
| Unrealized depreciation on unfunded loan commitments | — | — | 308 | 180 | — |
| Fund shares redeemed | 3,562,507 | 9,701,903 | 192,766 | 5,482,485 | 294,818 |
| Variation margin on futures contracts | — | — | 4,235 | 349,925 | — |
| Variation margin on centrally cleared swap agreements | — | — | 27,589 | 261,667 | — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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 |
| Distributions | — | — | 25 | 268 | — |
| Deferred capital gains tax | — | 14,929 | — | — | — |
| Collateral for securities lending | 7,684,961 | 15,575,650 | 11,396,039 | 8,897,952 | — |
| Upfront premiums received from swap agreements | — | — | 31 | 176,224 | — |
| Accrued management fees | 792,840 | 571,141 | 61,394 | 290,183 | 120,243 |
| Accrued trustee fees | 15,340 | 8,848 | 2,275 | 8,703 | 3,613 |
| Accrued expenses | 394,951 | 350,681 | 154,439 | 381,947 | 128,138 |
| Total liabilities | 19,001,298 | 27,313,061 | 13,631,778 | 144,300,884 | 3,361,172 |
| Net assets | $1,458,926,178 | $803,980,601 | $214,729,021 | $ 812,614,847 | $330,738,140 |
| Analysis of net assets: | | | | | |
| Paid in capital | $1,305,897,858 | $795,936,462 | $238,458,701 | $ 946,399,115 | $353,624,305 |
| Distributable earnings (loss) | 153,028,320 | 8,044,139 | (23,729,680) | (133,784,268) | (22,886,165) |
| Net assets | $1,458,926,178 | $803,980,601 | $214,729,021 | $ 812,614,847 | $330,738,140 |
| Shares outstanding: | 136,296,163 | 80,903,597 | 23,499,412 | 89,660,475 | 33,514,919 |
| Net asset value, offering price and redemption price per share: | $ 10.70 | $ 9.94 | $ 9.14 | $ 9.06 | $ 9.87 |
| Investments in non-affiliates, at cost | $1,314,599,279 | $791,442,546 | $225,891,012 | $ 937,674,893 | $347,904,221 |
| Foreign currencies, at cost | $ 66,960 | $ 1,019,417 | $ 472,176 | $ 789,053 | $ — |
| Investments sold short proceeds | $ — | $ — | $ — | $ 22,038,443 | $ — |
| Written option premiums | $ — | $ — | $ 21,480 | $ 895,624 | $ — |
| *Market value of securities on loan | $ 48,541,439 | $ 23,691,423 | $ 12,460,319 | $ 10,752,319 | $ — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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* | $137,390,137 | $174,756,260 | $231,953,907 | $280,031,501 |
| Cash | — | — | — | 20,132,152 |
| Foreign currencies, at value | — | 101,823 | 88,446 | 341,768 |
| Due from broker | — | 466,947 | — | 2,486,984 |
| Receivable from Adviser | 31,822 | 44,164 | — | 20,657 |
| Receivable for: | | | | |
| Dividends and interest | 260,588 | 2,405,174 | 393,647 | 1,418,247 |
| Securities lending income | 914 | — | 3,683 | — |
| Foreign tax reclaims | — | 95,036 | 55,139 | 9,157 |
| Investments sold | 1,734,164 | 1,018,320 | 261,053 | 13,462,794 |
| Fund shares sold | 182,340 | 347,470 | 11,813,510 | 177,533 |
| Variation margin on futures contracts | — | 4,890 | — | 53,939 |
| Unrealized appreciation on OTC swap agreements and contracts for differences | — | — | — | 1,500,550 |
| Unrealized appreciation on forward foreign currency exchange contracts | — | 114,920 | 1,412 | 9,983 |
| Upfront premiums paid on swap agreements | — | — | — | 6,792 |
| Prepaid expenses and other assets | 8,484 | 8,482 | 8,130 | 11,043 |
| Total assets | 139,608,449 | 179,363,486 | 244,578,927 | 319,663,100 |
| Liabilities | | | | |
| Investments sold short, at value | — | — | — | 18,186,468 |
| Written options, at value | — | — | — | 11,520 |
| Due to broker | — | 2,623 | — | 504,283 |
| Unrealized depreciation on OTC swap agreements and contracts for differences | — | — | — | 1,983,137 |
| Unrealized depreciation on forward foreign currency exchange contracts | — | 91,783 | 41,722 | 162,400 |
| Payable for: | | | | |
| Dividends on short sales | — | — | — | 6,844 |
| Investments purchased on a delayed-delivery basis | — | 244,396 | — | 17,239,366 |
| Investments purchased | 2,504,146 | 2,308,137 | 4,468,382 | 2,446,762 |
| Fund shares redeemed | 163,082 | 194,276 | 143,297 | 3,660,138 |
| Variation margin on futures contracts | — | 35,235 | — | 195,751 |
| Variation margin on centrally cleared swap agreements | — | — | — | 35,439 |
| Distributions | — | 44 | — | — |
| Collateral for securities lending | 2,082,163 | — | 6,780,470 | — |
| Upfront premiums received from swap agreements | — | — | — | 21,487 |
| Accrued management fees | 39,839 | 87,590 | 82,554 | 209,320 |
| Accrued trustee fees | 1,463 | 1,878 | 2,249 | 3,170 |
| Accrued expenses | 89,792 | 145,881 | 105,636 | 267,229 |
| Total liabilities | 4,880,485 | 3,111,843 | 11,624,310 | 44,933,314 |
| Net assets | $134,727,964 | $176,251,643 | $232,954,617 | $274,729,786 |
| Analysis of net assets: | | | | |
| Paid in capital | $144,940,191 | $207,908,412 | $227,142,314 | $294,034,483 |
| Distributable earnings (loss) | (10,212,227) | (31,656,769) | 5,812,303 | (19,304,697) |
| Net assets | $134,727,964 | $176,251,643 | $232,954,617 | $274,729,786 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Statements of Assets and Liabilities (continued)
| | Morningstar
Defensive
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Shares outstanding: | 14,196,699 | 20,093,815 | 23,836,238 | 28,091,246 |
| Net asset value, offering price and redemption price per share: | $ 9.49 | $ 8.77 | $ 9.77 | $ 9.78 |
| Investments in non-affiliates, at cost | $145,229,873 | $184,257,109 | $226,066,221 | $291,747,324 |
| Foreign currencies, at cost | $ — | $ 118,551 | $ 93,020 | $ 334,845 |
| Investments sold short proceeds | $ — | $ — | $ — | $ 19,372,692 |
| Written option premiums | $ — | $ — | $ — | $ 69,021 |
| *Market value of securities on loan | $ 7,247,260 | $ — | $ 9,882,327 | $ — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
| | 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) | $25,695,236 | $ 25,642,962 | $ 7,704,545 | $ 3,501,707 | $ 264,363 |
| Non-cash dividend income | — | 2,080,851 | — | — | — |
| Interest income (net of foreign withholding taxes) | 40,232 | — | 6,341,882 | 23,292,619 | 9,833,452 |
| Securities lending income, net | 86,157 | 70,545 | 58,686 | 59,885 | — |
| Total investment income | 25,821,625 | 27,794,358 | 14,105,113 | 26,854,211 | 10,097,815 |
| Expenses | | | | | |
| Management fees (Note 5) | 9,466,150 | 6,939,688 | 765,146 | 3,448,449 | 1,518,076 |
| Administration and custody fees | 686,520 | 736,345 | 306,627 | 913,317 | 182,931 |
| Transfer agent fees | 10,011 | 9,761 | 9,764 | 9,772 | 9,729 |
| Sub-accounting fees | 1,400,238 | 820,851 | 215,776 | 776,049 | 340,669 |
| Audit and tax fees | 60,536 | 73,351 | 66,395 | 96,709 | 54,565 |
| Legal fees | 219,872 | 131,280 | 40,565 | 123,671 | 54,907 |
| Trustees’ fees | 185,582 | 110,387 | 29,035 | 103,158 | 45,859 |
| Registration and filing fees | 46,486 | 44,432 | 28,866 | 52,326 | 31,503 |
| Printing and postage fees | 102,038 | 101,617 | 73,738 | 80,977 | 38,409 |
| Dividend and interest on securities sold short | — | — | — | 55,698 | — |
| Other expenses | 143,061 | 90,552 | 51,986 | 79,875 | 48,265 |
| Total expenses | 12,320,494 | 9,058,264 | 1,587,898 | 5,740,001 | 2,324,913 |
| Less waiver of management fees (Note 5) | (476,682) | (814,365) | — | (1,561,058) | (309,398) |
| Net expenses | 11,843,812 | 8,243,899 | 1,587,898 | 4,178,943 | 2,015,515 |
| Net investment income | 13,977,813 | 19,550,459 | 12,517,215 | 22,675,268 | 8,082,300 |
| Realized and unrealized gains (losses) | | | | | |
| Net realized gains (losses) on: | | | | | |
| Investments | 33,199,407 | (10,911,312) 1 | (15,116,702) 1 | (61,728,576) | (4,095,158) |
| Swap agreements | — | — | 78,486 | 4,763,492 | — |
| Futures contracts | — | — | (1,336,901) | (13,586,087) | — |
| Written options contracts | — | — | 42,597 | 11,640,015 | — |
| Forward foreign currency exchange contracts | — | 271,036 | 281,218 | 418,187 | — |
| Foreign currency transactions | (16,090) | (402,636) | (514,724) | 21,765 | — |
| Net realized gains (losses) | 33,183,317 | (11,042,912) | (16,566,026) | (58,471,204) | (4,095,158) |
| Net change in unrealized appreciation (depreciation) on: | | | | | |
| Investments | (8,626,544) | 50,342,007 2 | 5,573,656 2 | 24,208,882 | 995,239 |
| Investments sold short | — | — | — | (1,305,076) | — |
| Swap agreements | — | — | 86,320 | (885,022) | — |
| Futures contracts | — | — | 760,355 | 5,277,005 | — |
| Written options contracts | — | — | 15,105 | 2,269 | — |
| Forward foreign currency exchange contracts | — | (190,134) | 55,670 | (236,502) | — |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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 | 7,150 | 151,245 | 43,322 | 28,484 | — |
| Net change in unrealized appreciation (depreciation) | (8,619,394) | 50,303,118 | 6,534,428 | 27,090,040 | 995,239 |
| Net realized and unrealized gains (losses) | 24,563,923 | 39,260,206 | (10,031,598) | (31,381,164) | (3,099,919) |
| Net increase (decrease) in net assets resulting from operations | $38,541,736 | $58,810,665 | $ 2,485,617 | $ (8,705,896) | $ 4,982,381 |
| Foreign withholding taxes on dividend income | $ 226,092 | $ 2,213,574 | $ 410,192 | $ 1,541 | $ — |
| Foreign withholding taxes on interest income | $ — | $ — | $ — | $ 770 | $ — |
| | |
| 1 | Net of foreign capital gains taxes (refunded)/paid of $(38,419) and $647, respectively. |
| 2 | Net of change in deferred foreign capital gains tax expense of $290,067 and $45,242, respectively. |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
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) | $ 1,182,640 | $ 147,012 | $ 5,726,777 | $ 2,522,217 |
| Interest income (net of foreign withholding taxes) | 3,559,363 | 9,774,465 | — | 8,178,129 |
| Securities lending income, net | 37,866 | — | 153,724 | — |
| Total investment income | 4,779,869 | 9,921,477 | 5,880,501 | 10,700,346 |
| Expenses | | | | |
| Management fees (Note 5) | 490,548 | 1,019,640 | 936,618 | 2,819,513 |
| Administration and custody fees | 150,293 | 260,060 | 195,446 | 773,728 |
| Transfer agent fees | 9,768 | 9,779 | 9,770 | 9,768 |
| Sub-accounting fees | 131,520 | 161,531 | 198,002 | 337,213 |
| Audit and tax fees | 66,275 | 80,282 | 42,646 | 82,779 |
| Legal fees | 21,956 | 29,054 | 31,232 | 50,659 |
| Trustees’ fees | 18,324 | 22,316 | 25,879 | 43,579 |
| Registration and filing fees | 31,291 | 28,877 | 31,250 | 35,744 |
| Printing and postage fees | 39,935 | 74,793 | 100,780 | 73,430 |
| Dividend and interest on securities sold short | — | — | — | 516,180 |
| Other expenses | 30,781 | 50,350 | 28,111 | 42,652 |
| Total expenses | 990,691 | 1,736,682 | 1,599,734 | 4,785,245 |
| Less waiver of management fees (Note 5) | (336,626) | (407,790) | — | (419,435) |
| Net expenses | 654,065 | 1,328,892 | 1,599,734 | 4,365,810 |
| Net investment income | 4,125,804 | 8,592,585 | 4,280,767 | 6,334,536 |
| Realized and unrealized gains (losses) | | | | |
| Net realized gains (losses) on: | | | | |
| Investments | (1,661,588) | (13,404,761) | 2,048,068 | 4,682,735 |
| Investments sold short | — | — | — | (7,595,486) |
| Swap agreements | — | 102,507 | — | 890,641 |
| Futures contracts | — | (32,727) | — | 2,100,041 |
| Written options contracts | — | — | — | 486,470 |
| Forward foreign currency exchange contracts | — | (100,341) | (51,040) | 676,204 |
| Foreign currency transactions | — | (95,823) | (43,642) | (171,087) |
| Net realized gains (losses) | (1,661,588) | (13,531,145) | 1,953,386 | 1,069,518 |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments | (1,727,687) | 5,375,232 | 4,475,831 | (511,952) |
| Investments sold short | — | — | — | (1,658,316) |
| Swap agreements | — | (3,816) | — | (1,536,318) |
| Futures contracts | — | (30,979) | — | (2,485,972) |
| Written options contracts | — | — | — | (34,446) |
| Forward foreign currency exchange contracts | — | 33,561 | (40,310) | (468,932) |
| Foreign currency transactions | — | (2,206) | 17,664 | 12,722 |
| Net change in unrealized appreciation (depreciation) | (1,727,687) | 5,371,792 | 4,453,185 | (6,683,214) |
| Net realized and unrealized gains (losses) | (3,389,275) | (8,159,353) | 6,406,571 | (5,613,696) |
| Net increase (decrease) in net assets resulting from operations | $ 736,529 | $ 433,232 | $10,687,338 | $ 720,840 |
| Foreign withholding taxes on dividend income | $ — | $ — | $ 201,731 | $ 19,163 |
| Foreign withholding taxes on interest income | $ — | $ 42,042 | $ — | $ 228 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Statements of Changes in Net Assets
| | Morningstar
U.S. Equity Fund | Morningstar
International Equity Fund |
| | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 |
| Operations: | | | | |
| Net investment income | $ 13,977,813 | $ 14,829,977 | $ 19,550,459 | $ 19,677,036 |
| Net realized gains (losses) | 33,183,317 | 205,706,369 | (11,042,912) | 112,311,953 |
| Net change in unrealized appreciation (depreciation) | (8,619,394) | (261,735,692) | 50,303,118 | (261,417,915) |
| Net increase (decrease) in net assets resulting from operations | 38,541,736 | (41,199,346) | 58,810,665 | (129,428,926) |
| Distributions paid from: | | | | |
| Distributable earnings | (122,368,733) | (238,486,043) | (28,222,108) | (142,656,979) |
| Total distributions paid | (122,368,733) | (238,486,043) | (28,222,108) | (142,656,979) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 210,902,774 | 299,271,430 | 108,253,119 | 229,896,726 |
| Reinvestment of dividends | 122,368,733 | 238,254,322 | 28,222,108 | 142,522,225 |
| Payments for shares redeemed | (280,417,166) | (470,673,065) | (275,002,951) | (262,595,654) |
| Net increase (decrease) in net assets from capital share transactions | 52,854,341 | 66,852,687 | (138,527,724) | 109,823,297 |
| Total increase (decrease) in net assets | (30,972,656) | (212,832,702) | (107,939,167) | (162,262,608) |
| Net assets: | | | | |
| Beginning of year | 1,489,898,834 | 1,702,731,536 | 911,919,768 | 1,074,182,376 |
| End of year | $1,458,926,178 | $1,489,898,834 | $ 803,980,601 | $ 911,919,768 |
| Capital share transactions | | | | |
| Shares sold | 19,809,277 | 22,447,159 | 11,756,238 | 20,049,671 |
| Shares from reinvested dividends | 12,325,143 | 18,789,082 | 3,108,151 | 13,027,211 |
| Shares redeemed | (26,228,031) | (34,767,976) | (29,254,436) | (22,201,350) |
| Net increase (decrease) | 5,906,389 | 6,468,265 | (14,390,047) | 10,875,532 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Statements of Changes in Net Assets (continued)
| | Morningstar
Global Income Fund | Morningstar
Total Return Bond Fund |
| | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 |
| Operations: | | | | |
| Net investment income | $ 12,517,215 | $ 10,266,250 | $ 22,675,268 | $ 11,943,190 |
| Net realized gains (losses) | (16,566,026) | 16,082,085 | (58,471,204) | (18,212,639) |
| Net change in unrealized appreciation (depreciation) | 6,534,428 | (41,901,209) | 27,090,040 | (80,197,915) |
| Net increase (decrease) in net assets resulting from operations | 2,485,617 | (15,552,874) | (8,705,896) | (86,467,364) |
| Distributions paid from: | | | | |
| Distributable earnings | (19,352,530) | (28,559,019) | (22,208,256) | (18,514,280) |
| Total distributions paid | (19,352,530) | (28,559,019) | (22,208,256) | (18,514,280) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 26,263,775 | 59,366,985 | 166,265,015 | 290,765,341 |
| Reinvestment of dividends | 19,352,489 | 28,522,540 | 22,207,983 | 18,411,734 |
| Payments for shares redeemed | (60,980,034) | (69,249,969) | (174,157,657) | (207,900,741) |
| Net increase (decrease) in net assets from capital share transactions | (15,363,770) | 18,639,556 | 14,315,341 | 101,276,334 |
| Total increase (decrease) in net assets | (32,230,683) | (25,472,337) | (16,598,811) | (3,705,310) |
| Net assets: | | | | |
| Beginning of year | 246,959,704 | 272,432,041 | 829,213,658 | 832,918,968 |
| End of year | $214,729,021 | $246,959,704 | $ 812,614,847 | $ 829,213,658 |
| Capital share transactions | | | | |
| Shares sold | 2,856,138 | 5,264,711 | 18,397,389 | 28,123,394 |
| Shares from reinvested dividends | 2,131,637 | 2,638,398 | 2,478,205 | 1,746,590 |
| Shares redeemed | (6,638,807) | (6,198,204) | (19,247,263) | (19,777,555) |
| Net increase (decrease) | (1,651,032) | 1,704,905 | 1,628,331 | 10,092,429 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Statements of Changes in Net Assets (continued)
| | Morningstar
Municipal Bond Fund | Morningstar
Defensive Bond Fund |
| | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 |
| Operations: | | | | |
| Net investment income | $ 8,082,300 | $ 6,878,543 | $ 4,125,804 | $ 3,868,771 |
| Net realized gains (losses) | (4,095,158) | (515,409) | (1,661,588) | (1,212,853) |
| Net change in unrealized appreciation (depreciation) | 995,239 | (31,065,332) | (1,727,687) | (7,597,221) |
| Net increase (decrease) in net assets resulting from operations | 4,982,381 | (24,702,198) | 736,529 | (4,941,303) |
| Distributions paid from: | | | | |
| Distributable earnings | (8,029,279) | (7,143,683) | (3,670,466) | (5,383,260) |
| Return of capital | — | — | — | (262,291) |
| Total distributions paid | (8,029,279) | (7,143,683) | (3,670,466) | (5,645,551) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 54,677,480 | 86,833,628 | 36,381,030 | 63,412,740 |
| Reinvestment of dividends | 8,029,187 | 7,143,683 | 3,670,466 | 5,587,623 |
| Payments for shares redeemed | (110,891,451) | (97,330,921) | (46,306,485) | (115,025,461) |
| Net increase (decrease) in net assets from capital share transactions | (48,184,784) | (3,353,610) | (6,254,989) | (46,025,098) |
| Total increase (decrease) in net assets | (51,231,682) | (35,199,491) | (9,188,926) | (56,611,952) |
| Net assets: | | | | |
| Beginning of year | 381,969,822 | 417,169,313 | 143,916,890 | 200,528,842 |
| End of year | $ 330,738,140 | $381,969,822 | $134,727,964 | $ 143,916,890 |
| Capital share transactions | | | | |
| Shares sold | 5,544,927 | 8,153,632 | 3,840,070 | 6,267,569 |
| Shares from reinvested dividends | 818,905 | 674,697 | 388,482 | 554,022 |
| Shares redeemed | (11,272,498) | (9,206,617) | (4,882,636) | (11,559,469) |
| Net increase (decrease) | (4,908,666) | (378,288) | (654,084) | (4,737,878) |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Statements of Changes in Net Assets (continued)
| | Morningstar
Multisector Bond Fund | Morningstar
Global Opportunistic Equity Fund |
| | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 |
| Operations: | | | | |
| Net investment income | $ 8,592,585 | $ 9,603,120 | $ 4,280,767 | $ 3,843,266 |
| Net realized gains (losses) | (13,531,145) | (14,080,071) | 1,953,386 | 27,784,612 |
| Net change in unrealized appreciation (depreciation) | 5,371,792 | (19,601,626) | 4,453,185 | (37,294,543) |
| Net increase (decrease) in net assets resulting from operations | 433,232 | (24,078,577) | 10,687,338 | (5,666,665) |
| Distributions paid from: | | | | |
| Distributable earnings | (4,767,523) | (9,251,076) | (5,851,851) | (40,121,142) |
| Total distributions paid | (4,767,523) | (9,251,076) | (5,851,851) | (40,121,142) |
| Capital share transactions: | | | | |
| Proceeds from shares sold | 44,978,679 | 64,496,384 | 67,581,311 | 49,593,850 |
| Reinvestment of dividends | 4,767,479 | 9,216,889 | 5,851,850 | 40,116,316 |
| Payments for shares redeemed | (41,436,492) | (105,249,637) | (45,535,119) | (54,427,784) |
| Net increase (decrease) in net assets from capital share transactions | 8,309,666 | (31,536,364) | 27,898,042 | 35,282,382 |
| Total increase (decrease) in net assets | 3,975,375 | (64,866,017) | 32,733,529 | (10,505,425) |
| Net assets: | | | | |
| Beginning of year | 172,276,268 | 237,142,285 | 200,221,088 | 210,726,513 |
| End of year | $176,251,643 | $ 172,276,268 | $232,954,617 | $200,221,088 |
| Capital share transactions | | | | |
| Shares sold | 5,186,619 | 6,453,393 | 7,165,593 | 4,416,095 |
| Shares from reinvested dividends | 549,926 | 905,297 | 640,324 | 3,868,282 |
| Shares redeemed | (4,786,819) | (10,759,064) | (4,882,657) | (4,811,572) |
| Net increase (decrease) | 949,726 | (3,400,374) | 2,923,260 | 3,472,805 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
Statements of Changes in Net Assets (continued)
| | Morningstar
Alternatives Fund |
| | Year Ended
April 30, 2023 | Year Ended
April 30, 2022 |
| Operations: | | |
| Net investment income | $ 6,334,536 | $ 2,137,579 |
| Net realized gains (losses) | 1,069,518 | 8,544,725 |
| Net change in unrealized appreciation (depreciation) | (6,683,214) | (13,625,412) |
| Net increase (decrease) in net assets resulting from operations | 720,840 | (2,943,108) |
| Distributions paid from: | | |
| Distributable earnings | (11,517,692) | (16,647,113) |
| Total distributions paid | (11,517,692) | (16,647,113) |
| Capital share transactions: | | |
| Proceeds from shares sold | 69,848,746 | 163,288,685 |
| Reinvestment of dividends | 11,517,691 | 16,584,193 |
| Payments for shares redeemed | (164,320,530) | (119,572,952) |
| Net increase (decrease) in net assets from capital share transactions | (82,954,093) | 60,299,926 |
| Total increase (decrease) in net assets | (93,750,945) | 40,709,705 |
| Net assets: | | |
| Beginning of year | 368,480,731 | 327,771,026 |
| End of year | $ 274,729,786 | $ 368,480,731 |
| Capital share transactions | | |
| Shares sold | 7,011,646 | 15,638,714 |
| Shares from reinvested dividends | 1,173,356 | 1,587,729 |
| Shares redeemed | (16,499,943) | (11,434,449) |
| Net increase (decrease) | (8,314,941) | 5,791,994 |
See accompanying Notes to Financial Statements
Morningstar Funds Trust April 30, 2023
| Morningstar U.S. Equity Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $11.43 | $13.74 | $9.27 | $10.68 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.11 | 0.12 | 0.14 | 0.13 | 0.05 |
| Net realized and unrealized gains (losses) | 0.13 | (0.36) | 4.59 | (1.31) | 0.64 |
| Total income (loss) from investment operations | 0.24 | (0.24) | 4.73 | (1.18) | 0.69 |
| Less distributions paid: | | | | | |
| From net investment income | (0.07) | (0.13) | (0.14) | (0.09) | (0.01) |
| From realized gains | (0.90) | (1.94) | (0.12) | (0.14) | — |
| Total distributions paid | (0.97) | (2.07) | (0.26) | (0.23) | (0.01) |
| Net asset value, end of year | $10.70 | $11.43 | $13.74 | $9.27 | $10.68 |
| Total return3 | 2.79% | (3.11%) | 51.43% | (11.42%) | 6.98% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $1,459 | $1,490 | $1,703 | $1,179 | $678 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements | 0.87% | 0.86% | 0.87% | 0.93% | 1.08% |
| Total expenses after waivers/reimbursements | 0.84% | 0.83% | 0.81% | 0.81% | 0.82% |
| Net investment income, net of waivers/reimbursements | 0.99% | 0.89% | 1.19% | 1.25% | 0.98% 6 |
| Net investment income, before waivers/reimbursements | 0.96% | 0.86% | 1.13% | 1.13% | 0.72% 6 |
| Portfolio turnover rate7 | 53% | 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, 2023
Financial Highlights (continued)
| Morningstar International Equity Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.57 | $12.72 | $8.76 | $10.79 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.22 | 0.23 | 0.12 | 0.21 | 0.08 |
| Net realized and unrealized gains (losses) | 0.47 | (1.66) | 4.17 | (1.94) | 0.74 |
| Total income (loss) from investment operations | 0.69 | (1.43) | 4.29 | (1.73) | 0.82 |
| Less distributions paid: | | | | | |
| From net investment income | (0.10) | (0.18) | (0.14) | (0.19) | (0.03) |
| From realized gains | (0.22) | (1.54) | (0.19) | (0.11) | — |
| Total distributions paid | (0.32) | (1.72) | (0.33) | (0.30) | (0.03) |
| Net asset value, end of year | $9.94 | $9.57 | $12.72 | $8.76 | $10.79 |
| Total return3 | 7.61% | (12.77%) | 49.22% | (16.65%) | 8.19% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $804 | $912 | $1,074 | $764 | $469 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements | 1.08% | 1.06% | 1.08% | 1.14% | 1.29% |
| Total expenses after waivers/reimbursements | 0.99% | 0.98% | 0.89% | 0.92% | 0.94% |
| Net investment income, net of waivers/reimbursements | 2.33% | 1.89% | 1.09% | 2.08% | 1.66% 6 |
| Net investment income, before waivers/reimbursements | 2.24% | 1.81% | 0.90% | 1.86% | 1.31% 6 |
| Portfolio turnover rate7 | 21% | 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, 2023
Financial Highlights (continued)
| Morningstar Global Income Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.82 | $11.62 | $9.54 | $10.58 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.53 | 0.42 | 0.35 | 0.37 | 0.16 |
| Net realized and unrealized gains (losses) | (0.38) | (1.03) | 2.09 | (0.94) | 0.52 |
| Total income (loss) from investment operations | 0.15 | (0.61) | 2.44 | (0.57) | 0.68 |
| Less distributions paid: | | | | | |
| From net investment income | (0.49) | (0.45) | (0.35) | (0.42) | (0.10) |
| From realized gains | (0.34) | (0.74) | (0.01) | (0.05) | — |
| Total distributions paid | (0.83) | (1.19) | (0.36) | (0.47) | (0.10) |
| Net asset value, end of year | $9.14 | $9.82 | $11.62 | $9.54 | $10.58 |
| Total return3 | 1.88% | (6.00%) | 26.01% | (5.73%) | 6.85% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $215 | $247 | $272 | $235 | $186 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements | 0.73% | 0.62% | 0.62% | 0.64% | 0.90% |
| Total expenses after waivers/reimbursements | 0.73% | 0.62% | 0.61% | 0.58% | 0.58% |
| Net investment income, net of waivers/reimbursements | 5.73% | 3.76% | 3.28% | 3.52% | 3.15% 6 |
| Net investment income, before waivers/reimbursements | 5.73% | 3.76% | 3.27% | 3.46% | 2.83% 6 |
| Portfolio turnover rate7 | 63% | 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, 2023
Financial Highlights (continued)
| Morningstar Total Return Bond Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.42 | $10.69 | $10.88 | $10.48 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.26 | 0.61 | 0.16 | 0.26 | 0.15 |
| Net realized and unrealized gains (losses) | (0.36) | (1.65) | 0.17 | 0.68 | 0.45 |
| Total income (loss) from investment operations | (0.10) | (1.04) | 0.33 | 0.94 | 0.60 |
| Less distributions paid: | | | | | |
| From net investment income | (0.26) | (0.17) | (0.21) | (0.28) | (0.12) |
| From realized gains | — | (0.06) | (0.31) | (0.26) | — |
| Total distributions paid | (0.26) | (0.23) | (0.52) | (0.54) | (0.12) |
| Net asset value, end of year | $9.06 | $9.42 | $10.69 | $10.88 | $10.48 |
| Total return3 | (1.03%) | (9.97%) | 2.95% | 9.13% | 6.01% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $813 | $829 | $833 | $519 | $415 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements6 | 0.73% | 0.71% | 0.74% | 0.81% | 0.88% |
| Total expenses after waivers/reimbursements6 | 0.53% | 0.53% | 0.53% | 0.53% | 0.53% |
| Total expenses after waivers/reimbursements and excluding dividend and interest expense | 0.53% | 0.52% | 0.53% | 0.53% | 0.53% |
| Net investment income, net of waivers/reimbursements | 2.89% | 1.39% | 1.41% | 2.43% | 2.89% 7 |
| Net investment income, before waivers/reimbursements | 2.69% | 1.21% | 1.20% | 2.15% | 2.54% 7 |
| Portfolio turnover rate8 | 302% | 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 less than 0.01% for April 30, 2023, 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, 2023
Financial Highlights (continued)
| Morningstar Municipal Bond Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.94 | $10.75 | $10.14 | $10.38 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.23 | 0.18 | 0.21 | 0.23 | 0.12 |
| Net realized and unrealized gains (losses) | (0.07) | (0.81) | 0.61 | (0.21) | 0.36 |
| Total income (loss) from investment operations | 0.16 | (0.63) | 0.82 | 0.02 | 0.48 |
| Less distributions paid: | | | | | |
| From net investment income | (0.23) | (0.18) | (0.21) | (0.23) | (0.10) |
| From realized gains | — | — 3 | — | (0.03) | — |
| Total distributions paid | (0.23) | (0.18) | (0.21) | (0.26) | (0.10) |
| Net asset value, end of year | $9.87 | $9.94 | $10.75 | $10.14 | $10.38 |
| Total return4 | 1.67% | (5.93%) | 8.14% | 0.11% | 4.79% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $331 | $382 | $417 | $340 | $105 |
| Ratio to average net assets of:5, 6 | | | | | |
| Total expenses before waivers/reimbursements | 0.67% | 0.65% | 0.66% | 0.77% | 1.05% |
| Total expenses after waivers/reimbursements | 0.58% | 0.58% | 0.58% | 0.58% | 0.58% |
| Net investment income, net of waivers/reimbursements | 2.34% | 1.65% | 1.98% | 2.17% | 2.48% 7 |
| Net investment income, before waivers/reimbursements | 2.25% | 1.58% | 1.90% | 1.98% | 2.01% 7 |
| Portfolio turnover rate8 | 22% | 41% | 53% | 127% | 115% |
| | |
| 1 | Commencement of operations was November 2, 2018. |
| 2 | Calculated using the average shares outstanding method. |
| 3 | Rounds 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, 2023
Financial Highlights (continued)
| Morningstar Defensive Bond Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.69 | $10.24 | $10.17 | $10.10 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.29 | 0.20 | 0.20 | 0.20 | 0.11 |
| Net realized and unrealized gains (losses) | (0.23) | (0.46) | 0.16 | 0.13 | 0.08 |
| Total income (loss) from investment operations | 0.06 | (0.26) | 0.36 | 0.33 | 0.19 |
| Less distributions paid: | | | | | |
| From net investment income | (0.26) | (0.19) | (0.19) | (0.23) | (0.09) |
| From realized gains | — | (0.08) | (0.10) | (0.03) | — |
| From return of capital | — | (0.02) | — | — | — |
| Total distributions paid | (0.26) | (0.29) | (0.29) | (0.26) | (0.09) |
| Net asset value, end of year | $9.49 | $9.69 | $10.24 | $10.17 | $10.10 |
| Total return3 | 0.63% | (2.61%) | 3.56% | 3.36% | 1.87% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $135 | $144 | $201 | $183 | $156 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements | 0.73% | 0.64% | 0.64% | 0.66% | 0.93% |
| Total expenses after waivers/reimbursements | 0.48% | 0.48% | 0.48% | 0.48% | 0.48% |
| Net investment income, net of waivers/reimbursements | 3.03% | 1.96% | 1.92% | 2.02% | 2.28% 6 |
| Net investment income, before waivers/reimbursements | 2.78% | 1.80% | 1.76% | 1.84% | 1.83% 6 |
| Portfolio turnover rate7 | 16% | 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, 2023
Financial Highlights (continued)
| Morningstar Multisector Bond Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.00 | $10.52 | $9.39 | $10.28 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.45 | 0.43 | 0.44 | 0.46 | 0.27 |
| Net realized and unrealized gains (losses) | (0.44) | (1.54) | 0.94 | (0.83) | 0.21 |
| Total income (loss) from investment operations | 0.01 | (1.11) | 1.38 | (0.37) | 0.48 |
| Less distributions paid: | | | | | |
| From net investment income | (0.24) | (0.30) | (0.25) | (0.43) | (0.20) |
| From realized gains | — | (0.11) | — | (0.09) | — |
| Total distributions paid | (0.24) | (0.41) | (0.25) | (0.52) | (0.20) |
| Net asset value, end of year | $8.77 | $9.00 | $10.52 | $9.39 | $10.28 |
| Total return3 | 0.23% | (10.95%) | 14.79% | (3.97%) | 4.86% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $176 | $172 | $237 | $192 | $161 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements | 1.04% | 0.92% | 0.91% | 0.98% | 1.18% |
| Total expenses after waivers/reimbursements | 0.80% | 0.79% | 0.79% | 0.79% | 0.80% |
| Net investment income, net of waivers/reimbursements | 5.14% | 4.25% | 4.31% | 4.52% | 5.41% 6 |
| Net investment income, before waivers/reimbursements | 4.90% | 4.12% | 4.19% | 4.33% | 5.03% 6 |
| Portfolio turnover rate7 | 131% | 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, 2023
Financial Highlights (continued)
| Morningstar Global Opportunistic Equity Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $9.57 | $12.08 | $9.28 | $10.38 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.20 | 0.21 | 0.14 | 0.23 | 0.12 |
| Net realized and unrealized gains (losses) | 0.27 | (0.43) | 2.99 | (0.91) | 0.37 |
| Total income (loss) from investment operations | 0.47 | (0.22) | 3.13 | (0.68) | 0.49 |
| Less distributions paid: | | | | | |
| From net investment income | (0.12) | (0.26) | (0.23) | (0.21) | (0.11) |
| From realized gains | (0.15) | (2.03) | (0.10) | (0.21) | — |
| Total distributions paid | (0.27) | (2.29) | (0.33) | (0.42) | (0.11) |
| Net asset value, end of year | $9.77 | $9.57 | $12.08 | $9.28 | $10.38 |
| Total return3 | 5.15% | (2.77%) | 34.01% | (7.07%) | 4.97% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $233 | $200 | $211 | $138 | $56 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements | 0.80% | 0.78% | 0.78% | 0.94% | 1.48% |
| Total expenses after waivers/reimbursements | 0.80% | 0.78% | 0.74% | 0.73% | 0.64% |
| Net investment income, net of waivers/reimbursements | 2.15% | 1.81% | 1.28% | 2.29% | 2.38% 6 |
| Net investment income, before waivers/reimbursements | 2.15% | 1.81% | 1.24% | 2.08% | 1.54% 6 |
| Portfolio turnover rate7 | 47% | 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, 2023
Financial Highlights (continued)
| Morningstar Alternatives Fund | | | | | |
| | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Year Ended
April 30 | Since Inception1 |
| Selected per share data | 2023 | 2022 | 2021 | 2020 | 2019 |
| Net asset value, beginning of year | $10.12 | $10.71 | $10.12 | $10.10 | $10.00 |
| Income (loss) from investment operations: | | | | | |
| Net investment income2 | 0.19 | 0.07 | 0.12 | 0.25 | 0.05 |
| Net realized and unrealized gains (losses) | (0.15) | (0.14) | 0.77 | (0.05) | 0.08 |
| Total income (loss) from investment operations | 0.04 | (0.07) | 0.89 | 0.20 | 0.13 |
| Less distributions paid: | | | | | |
| From net investment income | (0.20) | (0.14) | (0.13) | (0.14) | (0.03) |
| From realized gains | (0.18) | (0.38) | (0.17) | (0.04) | — |
| Total distributions paid | (0.38) | (0.52) | (0.30) | (0.18) | (0.03) |
| Net asset value, end of year | $9.78 | $10.12 | $10.71 | $10.12 | $10.10 |
| Total return3 | 0.42% | (0.78%) | 8.92% | 1.94% | 1.26% |
| Supplemental data and ratios: | | | | | |
| Net assets, end of year (millions) | $275 | $368 | $328 | $186 | $112 |
| Ratio to average net assets of:4, 5 | | | | | |
| Total expenses before waivers/reimbursements6 | 1.44% | 1.45% | 1.68% | 1.48% | 1.91% |
| Total expenses after waivers/reimbursements6 | 1.31% | 1.31% | 1.26% | 1.13% | 0.96% |
| Total expenses after waivers/reimbursements and excluding dividend and interest expense | 1.16% | 1.15% | 1.12% | 0.87% | 0.77% |
| Net investment income, net of waivers/reimbursements | 1.91% | 0.63% | 1.14% | 2.45% | 1.08% 7 |
| Net investment income, before waivers/reimbursements | 1.78% | 0.49% | 0.72% | 2.10% | 0.13% 7 |
| Portfolio turnover rate8 | 358% | 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%, 0.16%, 0.14%, 0.26%, and 0.19% for April 30, 2023, 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, 2023
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 is classified and operates as a diversified fund under the 1940 Act. Each Fund's shares are classified as Institutional shares. Morningstar Investment Management LLC (“MIM” or “Adviser”) serves as the investment adviser of each Fund.
The investment objective of each Fund is as follows:
| Morningstar Funds | Investment Objective |
| U.S. Equity Fund | Long-term capital appreciation |
| International Equity Fund | Long-term capital appreciation |
| Global Income Fund | Current income and long-term capital appreciation |
| Total Return Bond Fund | Total return maximization, income generation and capital preservation |
| Municipal Bond Fund | Income exempt from federal income taxes as well as capital preservation |
| Defensive Bond Fund | Capital preservation |
| Multisector Bond Fund | Total return through a combination of current income and capital appreciation |
| Global Opportunistic Equity Fund | Long-term capital appreciation over a full market cycle |
| 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 name 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").
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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. In the event of the financial institution’s insolvency, recovery of the Fund’s cash may be limited to the insurance afforded by Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC).
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. Cash held with brokers is not available for withdrawal upon demand, and is considered restricted as it is not available for use until it is returned to the Fund upon exiting the position to which the collateral relates. The Funds are subject to credit risk should the prime brokers or counterparties be unable to meet their obligations to the Funds.
| | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Alternatives
Fund |
| Assets | | | | |
| Cash collateral for derivatives | $ 440,660 | $4,851,209 | $350,000 | $1,599,850 |
| Deposits with broker for futures contracts | 711,195 | 5,069,638 | 116,947 | 887,134 |
| Due from broker | $1,151,855 | $9,920,847 | $466,947 | $2,486,984 |
| | | | | |
| Liabilities | | | | |
| Cash collateral received for derivatives | $ 157,582 | $2,733,309 | $ 398 | $ 499,283 |
| Deposits with broker for futures contracts | — | 79,480 | 2,225 | 5,000 |
| Due to broker | $ 157,582 | $2,812,789 | $ 2,623 | $ 504,283 |
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 for 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 a defaulted debt obligation, the accrual of interest income is halted when management becomes aware that the interest income is not collectible, and already accrued interest income may be written off. 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.
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, 2023, the International Equity Fund had non-U.S. taxes accrued in the amount of $14,929, which is included as payable for deferred capital gains tax in the Statements of Assets and Liabilities and net against the change in unrealized appreciation (depreciation) on investments on the Statements of Operations.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 three fiscal years as well as current year are open for examination. As of April 30, 2023, 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:
| Morningstar Funds | Frequency |
| U.S. Equity Fund | Annually |
| International Equity Fund | Annually |
| Global Income Fund | Monthly |
| Total Return Bond Fund | Monthly |
| Municipal Bond Fund | Monthly |
| Defensive Bond Fund | Monthly |
| Multisector Bond Fund | Monthly |
| Global Opportunistic Equity Fund | Annually |
| 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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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, 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.
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). 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. 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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 the adviser may at times play a greater role in valuing these securities than in the case of publicly traded securities.
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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 as of April 30, 2023 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 (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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 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, 2023, there were no SPACs or funding commitments held by the Morningstar Alternatives Fund.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 Net Asset Value ("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. In general, investments for which market quotations are readily available are valued at current market value, while investments whose market quotations are not readily available (as defined by Rule 2a-5 of the Investment Company Act of 1940, as amended) are fair valued.
As permitted under Rule 2a-5, the Trust’s Board of Trustees (the “Board”) designated Morningstar Investment Management LLC to serve as the valuation designee. MIM, as valuation designee, carries out its day-to-day fair value responsibilities required under Rule 2a-5 through its Pricing Committee (the “Pricing Committee”) in accordance with procedures approved by the Board.
U.S. exchange-traded equity securities for which market quotations are readily available shall be valued at the regular trading session’s closing price on the exchange or system in which such securities are principally traded. Securities not traded on the valuation date are priced at the most recent quoted bid price. Non-U.S. exchange-traded equity securities prices are based on primary local market quotations. Depending upon local market convention or regulation, the price may represent the last sale price or the mean between the last bid and ask price at the close of the appropriate exchange or at designated times as determined by the appropriate governing body. For countries that allow securities to trade on multiple exchanges (e.g., U.S., Japan, Germany and India), the value of the security will be taken to be the last reported closing price from the security’s primary exchange. 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 by the Pricing Committee under procedures approved by the Board.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
Short-term debt obligations with remaining maturities in excess of 60 days are typically valued using evaluated prices provided by a pricing service provider. 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.
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 by the Pricing Committee under procedures approved by the Board. 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.
The Pricing Committee uses 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. Securities with a fair value factor applied are classified as Level 2.
All other assets of a Fund are valued in such manner as the Pricing Committee 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.
Securities for which market quotations are not readily available or are unreliable are fair valued by the Pricing Committee in accordance with the methodologies approved by such Committee and are classified as Level 3.
Valuation Techniques: The following inputs and techniques may be used by the Funds to value their portfolio holdings and to evaluate how to classify each major category of assets and liabilities into the appropriate fair value hierarchy in accordance with U.S. GAAP.
Equity securities, including securities sold short, rights, 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. Shares of open end investment companies, other than exchange-traded funds, are valued at their NAV.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 generally valued at its last bid price (in the case of short sales, at the ask price).
Listed options are generally valued at the last reported settlement price on the exchange or OTC market on which they principally trade. If the settlement price is not available, then listed options will be valued at the last traded price if the last traded price falls between bid/ask spread; and if the last traded price falls outside of the bid/ask spread, then the calculated mean based on bid/ ask prices obtained from the primary exchange will be used.
Futures contracts are generally valued at the last reported settlement price on the exchange or OTC market on which they principally trade. If the settlement price is not available, then futures contracts will be valued at the last traded price.
Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within Level 1 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 reported settlement price on the date of determination on the exchange that constitutes the principal market or, if the settlement price is not available, generally at the last traded price. For listed options contracts, if the last traded price falls outside the bid/ask spread, then the calculated mean based on bid/ask prices obtained from the primary exchange will be used. Centrally cleared swaps listed or traded on a multilateral trade facility platform are valued on a daily basis using quotations provided by an independent pricing service.
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 a methodology approved by the Pricing Committee. This includes 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 (unless conditions indicate otherwise), which approximates fair value.
When observable prices are not available, the Pricing Committee 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. These investments are classified as Level 3 and have significant unobservable inputs, as they trade infrequently or not at all. Level 3 instruments may include illiquid securities. 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
Securities for which market quotations are not readily available or are unreliable are fair valued by the Pricing Committee in accordance with the procedures approved by the Board. Attempts to determine the fair value of securities introduce an element of subjectivity to the pricing of securities. This fair value may be higher or lower than any available market price or quotation for such security and, because this process necessarily depends upon judgment, this value also may vary from valuations determined by other funds using their own valuation procedures. While each Fund’s use of fair value pricing is intended to result in calculation of a NAV that fairly reflects security values as of the time of pricing, a Fund cannot guarantee that any fair value price will, in fact, approximate the amount the Fund would actually realize upon the sale of the securities in question. If a reliable market quotation becomes available for a security formerly valued through fair valuation techniques, a Fund would compare the new market quotation to the fair value price to evaluate the effectiveness of its fair valuation procedures. If any significant discrepancies are found, the fair valuation procedures may be reviewed or adjusted.
The inputs used by the Pricing Committee in estimating the value of Level 3 investments may include, if applicable, such factors as described in the procedures approved by the Board, including, but not limited to, 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 the Pricing Committee in the absence of market information. Assumptions used by the Pricing Committee due to the lack of observable inputs may significantly impact the fair value of an investment.
Forward contracts are typically classified within Level 2 of the fair value hierarchy. 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.
OTC derivatives, including options on forward contracts, put and call options, contracts for differences and swap contracts, are valued by the Pricing Committee 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 price a Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Pricing services that value fixed-income securities generally utilize a range of market-based and security-specific inputs and assumptions, as well as considerations about general market conditions, to establish a price. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but may be held or transactions may be conducted in such securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
Fair Valuation Hierarchy: Fair value is defined 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 – unadjusted 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 as of April 30, 2023. Refer to Market Risk in Note 10 for more information.
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 of each Fund, in the annual ratios below.
| Morningstar Funds | Ratio |
| U.S. Equity Fund | 0.67% |
| International Equity Fund | 0.83% |
| Global Income Fund | 0.35% |
| Total Return Bond Fund | 0.44% |
| Municipal Bond Fund | 0.44% |
| Defensive Bond Fund | 0.36% |
| Multisector Bond Fund | 0.61% |
| Global Opportunistic Equity Fund | 0.47% |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| Morningstar Funds | Ratio |
| 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 securities such as equities, ETFs, mutual funds, money market fund investments and, where applicable, transacting in forward foreign currency contracts.
The Trust and the Adviser have entered into a contractual expense limitation agreement (Base 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, 2023, 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, 2023, the Funds’ Adviser waived fees and/or reimbursed expenses pursuant to the Base Expense Limitation Agreement for each of the Funds as follows:
| Morningstar Funds | Base Expense Cap | Management Fees Waived |
| U.S. Equity Fund | 0.85% | $311,223 |
| International Equity Fund | 1.00% | 697,185 |
| Global Income Fund | 0.89% | — |
| Total Return Bond Fund | 0.53% | 1,530,492 |
| Municipal Bond Fund | 0.59% | 289,312 |
| Defensive Bond Fund | 0.48% | 336,626 |
| Multisector Bond Fund | 0.80% | 399,447 |
| Global Opportunistic Equity Fund | 1.00% | — |
| 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, 2023, 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, 2023, 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:
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| Morningstar Funds | Supplemental Expense Cap | Management Fees Waived |
| U.S. Equity Fund | 0.85% | $165,459 |
| International Equity Fund | 1.00% | 117,180 |
| Global Income Fund | 0.75% | — |
| Total Return Bond Fund | 0.54% | 30,566 |
| Municipal Bond Fund | 0.59% | 20,086 |
| Defensive Bond Fund | 0.55% | — |
| Multisector Bond Fund | 0.80% | 8,343 |
| Global Opportunistic Equity Fund | 0.93% | — |
| Alternatives Fund | 1.20% | 419,435 |
As of April 30, 2023, the Trust has entered into subadvisory agreements with the following entities by Fund:
| Morningstar Funds | Subadvisers |
| U.S. Equity Fund | ClearBridge Investments, LLC
Diamond Hill Capital Management, Inc.
Easterly Investment Partners LLC1
Massachusetts Financial Services Company, d/b/a MFS Investment Management
Wasatch Advisors, Inc., d/b/a Wasatch Global Investors
Westwood Management Corp. |
| International Equity Fund | Harding Loevner, L.P.
Harris Associates, L.P.
Lazard Asset Management LLC
T. Rowe Price Associates, Inc. |
| Global Income Fund | Cullen Capital Management, LLC
Western Asset Management Company, LLC |
| Total Return Bond Fund | BlackRock Financial Management, Inc.
Western Asset Management Company, LLC |
| Municipal Bond Fund | Allspring Global Investments, LLC
T. Rowe Price Associates, Inc. |
| Defensive Bond Fund | First Pacific Advisors, LP |
| Multisector Bond Fund | Loomis, Sayles & Company, L.P.
TCW Investment Management Company LLC
Voya Investment Management Company, LLC |
| Global Opportunistic Equity Fund | Lazard Asset Management LLC |
| Alternatives Fund | BlackRock Financial Management, Inc.
SSI Investment Management LLC
Water Island Capital, LLC |
1On June 21, 2023, after consideration and evaluation of various factors and information, the Board of Trustees approved the termination with and the services of Easterly Investment Partners LLC as subadviser for the Morningstar U.S. Equity Fund. This termination is anticipated to be effective in the third quarter of the calendar year.
Pursuant to the subadvisory agreements between the subadvisers, the Adviser and the Trust, the Adviser will pay the subadvisers out of the management fees it receives from the Funds.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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, a wholly owned subsidiary of Foreside Financial Group, LLC (doing business as ACA Group) (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. The Adviser, at its own expense, pays the Distributor an annual fee in consideration for certain distribution related services. Foreside Management Services, LLC, a wholly owned subsidiary of Foreside Financial Group, LLC (doing business as ACA Group) (“FMS”) provides a Principal Financial Officer to the Trust. The Trust has agreed to pay FMS an annual base fee and has agreed to reimburse FMS for certain expenses incurred on behalf of the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or the 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 reflected as "Sub-accounting fees" on the Statement of Operations.
6. Investment Transactions
During the year ended April 30, 2023, the cost of purchases and the proceeds from sales of investments (excluding in-kind transactions, derivatives and short-term investments) were as follows:
| | Purchases | Sales | | |
| Morningstar Funds | U.S. Government | Other | U.S. Government | Other | Securities
Sold Short | Covers on
Securities
Sold Short |
| U.S. Equity Fund | $ — | $741,844,247 | $ — | $ 789,120,399 | $ — | $ — |
| International Equity Fund | — | 170,845,088 | — | 333,244,008 | — | — |
| Global Income Fund | — | 132,345,200 | 7,324,209 | 146,185,442 | — | — |
| Total Return Bond Fund | 1,793,224,233 | 275,493,923 | 1,820,522,013 | 243,502,360 | 391,368,354 | 381,659,500 |
| Municipal Bond Fund | — | 70,020,052 | — | 100,604,252 | — | — |
| Defensive Bond Fund | — | 19,951,197 | — | 30,998,197 | — | — |
| Multisector Bond Fund | 41,352,767 | 215,484,947 | 42,308,574 | 164,615,303 | 3,932 | — |
| Global Opportunistic Equity Fund | — | 117,286,369 | — | 88,830,431 | — | — |
| Alternatives Fund | — | 982,291,043 | — | 1,022,826,855 | 236,212,300 | 200,030,215 |
| | | | | | | |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
7. Securities Lending
The Morningstar U.S. Equity Fund, Morningstar International Equity Fund, Morningstar Global Income Fund, Morningstar Total Return Bond Fund, Morningstar Defensive Bond Fund, and Morningstar Global Opportunistic Equity Fund participate in a securities lending program. Under the securities lending program, Northern Trust serves as the Securities Lending Agent (or "Agent") pursuant to a Securities Lending Authorization Agreement (the “Securities Lending Agreement”). The Securities Lending Agent provides the following services for the aforementioned Funds 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 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 on the Statements of Assets and Liabilities as a payable for collateral upon return of securities loaned. 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
The following is a summary of the Funds' securities on loan and related cash and non-cash collateral received as of April 30, 2023:
| Morningstar Funds | Market Value
of Securities
on Loan | Cash Collateral
Received | Non-Cash
Collateral
Received* | Total Collateral
Received |
| U.S. Equity Fund | $ 48,541,439 | $ 7,684,961 | $ 41,654,683 | $ 49,339,644 |
| International Equity Fund | 23,691,423 | 15,575,650 | 9,121,681 | 24,697,331 |
| Global Income Fund | 12,460,319 | 11,396,039 | 1,341,584 | 12,737,623 |
| Total Return Bond Fund | 10,752,319 | 8,897,952 | 2,076,108 | 10,974,060 |
| Defensive Bond Fund | 7,247,260 | 2,082,163 | 5,370,584 | 7,452,747 |
| Global Opportunistic Equity Fund | 9,882,327 | 6,780,470 | 3,243,164 | 10,023,634 |
| | | | | |
| | | | | |
| *There are no restrictions or maturity dates on the cash collateral received from borrower. The remaining contractual maturity of securities lending transactions with non-cash collateral are as follows: |
| Morningstar Funds | Up to 30 Days | 30-90 Days | Over 90 Days | Total Non-Cash
Collateral Received |
| U.S. Equity Fund | $ 5,253 | $ 1,081,056 | $ 40,568,374 | $ 41,654,683 |
| International Equity Fund | 82 | 16,829 | 9,104,770 | 9,121,681 |
| Global Income Fund | 29,157 | 98,663 | 1,213,764 | 1,341,584 |
| Total Return Bond Fund | 48,561 | 153,986 | 1,873,561 | 2,076,108 |
| Defensive Bond Fund | — | — | 5,370,584 | 5,370,584 |
| Global Opportunistic Equity Fund | 396 | 81,506 | 3,161,262 | 3,243,164 |
| | | | | |
| | | | | |
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
8. Financial Derivative Instruments
Certain Funds may transact 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 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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 contracts 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.
Forward foreign currency exchange contracts outstanding at period end, if any, are listed after each Fund’s Schedule of Investments and presented as gross unrealized appreciation (depreciation) on the Statement of Assets and Liabilities. 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. A 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 unrealized appreciation (depreciation) on futures contracts. As of April 30, 2023, the Morningstar Global Income Fund, the Morningstar Total Return Bond Fund, the Morningstar Multisector Bond Fund and the Morningstar Alternatives Fund pledged cash to cover margin requirements for open futures positions in an amount of $711,195, $4,990,158, $114,722 and $882,134, 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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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 adviser is not successful in using options in managing a Fund’s investments, the Fund’s performance will be worse than if the investment adviser 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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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 based upon quotations from market makers 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. 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 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 Operations.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 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 Operations.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 within 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 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 the 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, the 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 the 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 the 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 the 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, the 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 agreements, borrowed bond agreements and 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. With borrowed bond agreements and reverse repurchase transactions, typically a Fund and counterparty under a Master Repurchase Agreement are permitted to sell, repledge, or use the collateral associated with the transaction.
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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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 effects of such derivative instruments on the Funds' financial position and financial performance for the year ended April 30, 2023 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 Global Income Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 41,167 | $48,462 | $ 89,629 | $ — | $ — | $112,156 | $ 7,971 | $ 120,127 |
| Interest rate risk | 692,742 | 120,137 | — | 138 | 813,017 | 74,868 | 11,914 | — | 985 | 87,767 |
| Total | 692,742 | 120,137 | 41,167 | 48,600 | 902,646 | 74,868 | 11,914 | 112,156 | 8,956 | 207,894 |
| Netting positions | (74,868) | (11,914) | (41,167) | (8,956) | (136,905) | (74,868) | (11,914) | (41,167) | (8,956) | (136,905) |
| Net Fair Value of Derivative Contracts | $617,874 | $108,223 | $ — | $39,644 | $ 765,741 | $ — | $ — | $ 70,989 | $ — | $ 70,989 |
| Morningstar Total Return Bond Fund | | | | | | |
| Credit risk | $ — | $862,141 | $ — | $ — | $ 862,141 | $ — | $105,330 | $ — | $ — | $ 105,330 |
Morningstar Funds Trust April 30, 2023
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 Total Return Bond Fund (continued) | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 115,792 | $ 28,061 | $ 143,853 | $ — | $ — | $ 163,049 | $ 3,780 | $ 166,829 |
| Interest rate risk | 738,020 | 281,347 | — | 804,307 | 1,823,674 | 1,125,086 | 431,509 | — | 751,489 | 2,308,084 |
| Total | 738,020 | 1,143,488 | 115,792 | 832,368 | 2,829,668 | 1,125,086 | 536,839 | 163,049 | 755,269 | 2,580,243 |
| Netting positions | (738,020) | (536,839) | (115,792) | (755,269) | (2,145,920) | (738,020) | (536,839) | (115,792) | (755,269) | (2,145,920) |
| Net Fair Value of Derivative Contracts | $ — | $ 606,649 | $ — | $ 77,099 | $ 683,748 | $ 387,066 | $ — | $ 47,257 | $ — | $ 434,323 |
| Morningstar Multisector Bond Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 114,920 | $ — | $ 114,920 | $ — | $ — | $ 91,783 | $ — | $ 91,783 |
| Interest rate risk | 64,668 | — | — | — | 64,668 | 95,647 | — | — | — | 95,647 |
| Total | 64,668 | — | 114,920 | — | 179,588 | 95,647 | — | 91,783 | — | 187,430 |
| Netting positions | (64,668) | — | (91,783) | — | (156,451) | (64,668) | — | (91,783) | — | (156,451) |
| Net Fair Value of Derivative Contracts | $ — | $ — | $ 23,137 | $ — | $ 23,137 | $ 30,979 | $ — | $ — | $ — | $ 30,979 |
| Morningstar Global Opportunistic Equity Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ 1,412 | $ — | $ 1,412 | $ — | $ — | $ 41,722 | $ — | $ 41,722 |
| Total | — | — | 1,412 | — | 1,412 | — | — | 41,722 | — | 41,722 |
| Netting positions | — | — | (1,412) | — | (1,412) | — | — | (1,412) | — | (1,412) |
| Net Fair Value of Derivative Contracts | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ 40,310 | $ — | $ 40,310 |
| Morningstar Alternatives Fund | | | | | | |
| Credit risk | $ — | $ — | $ — | $ — | $ — | $ — | $ 111,902 | $ — | $ — | $ 111,902 |
| Equity risk | — | 59,107,206 | — | 71,889 | 59,179,095 | — | 53,280,400 | — | — | 53,280,400 |
| Foreign exchange rate risk | — | — | 9,983 | — | 9,983 | — | — | 162,400 | — | 162,400 |
| Inflation risk | — | 5,179 | — | — | 5,179 | — | 585 | — | — | 585 |
| Interest rate risk | 49,373 | 39,853 | — | — | 89,226 | 994,281 | 154,691 | — | 11,520 | 1,160,492 |
| Total | 49,373 | 59,152,238 | 9,983 | 71,889 | 59,283,483 | 994,281 | 53,547,578 | 162,400 | 11,520 | 54,715,779 |
| Netting positions | (49,373) | (53,547,578) | (9,983) | (11,520) | (53,618,454) | (49,373) | (53,547,578) | (9,983) | (11,520) | (53,618,454) |
| Net Fair Value of Derivative Contracts | $ — | $ 5,604,660 | $ — | $ 60,369 | $ 5,665,029 | $ 944,908 | $ — | $ 152,417 | $ — | $ 1,097,325 |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| 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 effects of derivative instruments, by primary underlying risk exposure and contract type, on the Statements of Operations for the year ended April 30, 2023:
| | 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 | $ — | $ — | $ 271,036 | $ — | $ 271,036 | $ — | $ — | $(190,134) | $ — | $ (190,134) |
| Total | $ — | $ — | $ 271,036 | $ — | $ 271,036 | $ — | $ — | $(190,134) | $ — | $ (190,134) |
| Morningstar Global Income Fund | | | | | | |
| Credit risk | $ — | $ (217) | $ — | $ — | $ (217) | $ — | $ — | $ — | $ — | $ — |
| Foreign exchange rate risk | — | — | 281,218 | (74,079) | 207,139 | — | — | 55,670 | 50,174 | 105,844 |
| Interest rate risk | (1,336,901) | 78,703 | — | (20,120) | (1,278,318) | 760,355 | 86,320 | — | 5,293 | 851,968 |
| Total | $ (1,336,901) | $ 78,486 | $ 281,218 | $ (94,199) | $(1,071,396) | $ 760,355 | $ 86,320 | $ 55,670 | $ 55,467 | $ 957,812 |
| Morningstar Total Return Bond Fund | | | | | | |
| Credit risk | $ — | $ 789,746 | $ — | $ 1,179 | $ 790,925 | $ — | $ 1,113,686 | $ — | $ — | $ 1,113,686 |
| Equity risk | — | 113,457 | — | 4,657,732 | 4,771,189 | — | — | — | — | — |
| Foreign exchange rate risk | — | — | 418,187 | (104,387) | 313,800 | — | — | (236,502) | (1,186) | (237,688) |
| Interest rate risk | (13,586,087) | 3,860,289 | — | (86,195) | (9,811,993) | 5,277,005 | (1,998,708) | — | (525,664) | 2,752,633 |
| Total | $(13,586,087) | $4,763,492 | $ 418,187 | $4,468,329 | $(3,936,079) | $5,277,005 | $ (885,022) | $(236,502) | $(526,850) | $ 3,628,631 |
| Morningstar Multisector Bond Fund | | | | | | |
| Credit risk | $ — | $ 102,507 | $ — | $ — | $ 102,507 | $ — | $ (3,816) | $ — | $ — | $ (3,816) |
| Foreign exchange rate risk | — | — | (100,341) | — | (100,341) | — | — | 33,561 | — | 33,561 |
| Interest rate risk | (32,727) | — | — | — | (32,727) | (30,979) | — | — | — | (30,979) |
| Total | $ (32,727) | $ 102,507 | $(100,341) | $ — | $ (30,561) | $ (30,979) | $ (3,816) | $ 33,561 | $ — | $ (1,234) |
| Morningstar Global Opportunistic Equity Fund | | | | | | |
| Foreign exchange rate risk | $ — | $ — | $ (51,040) | $ — | $ (51,040) | $ — | $ — | $ (40,310) | $ — | $ (40,310) |
| Total | $ — | $ — | $ (51,040) | $ — | $ (51,040) | $ — | $ — | $ (40,310) | $ — | $ (40,310) |
| Morningstar Alternatives Fund | | | | | | |
| Credit risk | $ — | $ (200,073) | $ — | $ — | $ (200,073) | $ — | $ (26,456) | $ — | $ — | $ (26,456) |
| Equity risk | — | 1,787,758 | — | (696,409) | 1,091,349 | — | (1,495,079) | — | (109,997) | (1,605,076) |
| Foreign exchange rate risk | — | — | 676,204 | — | 676,204 | — | — | (468,932) | — | (468,932) |
Morningstar Funds Trust April 30, 2023
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 |
| Inflation risk | $ — | $ (17,395) | $ — | $ — | $ (17,395) | $ — | $ (123,657) | $ — | $ — | $ (123,657) |
| Interest rate risk | 2,100,041 | (679,649) | — | — | 1,420,392 | (2,485,972) | 108,874 | — | — | (2,377,098) |
| Total | $2,100,041 | $ 890,641 | $676,204 | $(696,409) | $2,970,477 | $(2,485,972) | $(1,536,318) | $(468,932) | $(109,997) | $(4,601,219) |
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, 2023.
Morningstar Global Income Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $ 41,167 | $112,156 |
| Futures contracts | 692,742 | 74,868 |
| Interest rate swap contracts* | 120,137 | 11,914 |
| Purchased options | 48,600 | — |
| Written options | — | 8,956 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $ 902,646 | $207,894 |
| Less: Derivatives not subject to MNA or similar agreements | (813,017) | (87,767) |
| Total gross amount of derivatives subject to MNA or similar agreement | $ 89,629 | $120,127 |
| * | 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 |
| BNP Paribas | $38,966 | $(25,408) | $13,558 | $— | $13,558 |
| Goldman Sachs | 28,948 | (6,602) | 22,346 | — | 22,346 |
| JPMorgan Chase | 1,454 | (1,454) | — | — | — |
| Morgan Stanley | 20,261 | (20,261) | — | — | — |
| Total | $89,629 | $(53,725) | $35,904 | $— | $35,904 |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| BNP Paribas | $ (25,408) | $25,408 | $ — | $— | $ — |
| Goldman Sachs | (6,602) | 6,602 | — | — | — |
| JPMorgan Chase | (8,042) | 1,454 | (6,588) | — | (6,588) |
| Morgan Stanley | (80,075) | 20,261 | (59,814) | — | (59,814) |
| Total | $(120,127) | $53,725 | $(66,402) | $— | $(66,402) |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
Morningstar Total Return Bond Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $ 115,792 | $ 163,049 |
| Futures contracts | 738,020 | 1,125,086 |
| Interest rate swap contracts* | 281,347 | 431,509 |
| Credit default swap contracts* | 862,141 | 105,330 |
| Purchased options | 348,314 | — |
| Purchased swaptions | 484,054 | — |
| Written options | — | 442,824 |
| Written swaptions | — | 312,445 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $ 2,829,668 | $ 2,580,243 |
| Less: Derivatives not subject to MNA or similar agreements | (2,178,311) | (2,062,805) |
| Total gross amount of derivatives subject to MNA or similar agreement | $ 651,357 | $ 517,438 |
| * | 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) | $162,206 | $ (36,700) | $125,506 | $(125,506) | $— |
| Barclays | 74,092 | (74,092) | — | — | — |
| BNP Paribas(a) | 90,948 | (12,982) | 77,966 | (77,966) | — |
| Citibank (a) | 43,697 | (5,122) | 38,575 | (38,575) | — |
| Deutsche Bank | 15,700 | (15,700) | — | — | — |
| Goldman Sachs | 186,751 | (186,751) | — | — | — |
| HSBC (a) | 7,659 | (2,639) | 5,020 | (5,020) | — |
| JPMorgan Chase | 25,553 | (25,553) | — | — | — |
| Morgan Stanley(a) | 38,779 | (27,210) | 11,569 | (11,569) | — |
| Standard Chartered Bank | 1,197 | (1,197) | — | — | — |
| State Street | 1,423 | (1,423) | — | — | — |
| Toronto—Dominion Bank | 150 | (150) | — | — | — |
| UBS | 3,202 | (3,202) | — | — | — |
| Total | $651,357 | $(392,721) | $258,636 | $(258,636) | $— |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America | $ (36,700) | $ 36,700 | $ — | $ — | $ — |
| Barclays (a) | (101,447) | 74,092 | (27,355) | 27,355 | — |
| BNP Paribas | (12,982) | 12,982 | — | — | — |
| Citibank | (5,122) | 5,122 | — | — | — |
| Deutsche Bank(a) | (77,785) | 15,700 | (62,085) | 62,085 | — |
| Goldman Sachs | (186,979) | 186,751 | (228) | — | (228) |
| HSBC | (2,639) | 2,639 | — | — | — |
| JPMorgan Chase(b) | (41,387) | 25,553 | (15,834) | 10,000 | (5,834) |
| Morgan Stanley | (27,210) | 27,210 | — | — | — |
| Standard Chartered Bank | (3,770) | 1,197 | (2,573) | — | (2,573) |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
Morningstar Total Return Bond Fund (continued)
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| State Street | $ (2,817) | $ 1,423 | $ (1,394) | $ — | $ (1,394) |
| Toronto—Dominion Bank | (1,956) | 150 | (1,806) | — | (1,806) |
| UBS | (16,644) | 3,202 | (13,442) | — | (13,442) |
| Total | $(517,438) | $392,721 | $(124,717) | $99,440 | $(25,277) |
| (a) | Actual amount of collateral received from Bank of America, BNP Paribas, Citibank, HSBC and Morgan Stanley and pledged by the Fund to Barclays and Deutsche Bank exceeded the net amount before collateral and is included in Due to broker and Due from broker, respectively in the Statements of Assets and Liabilities. |
| (b) | Actual amount of collateral pledged by the Fund to JPMorgan Chase is included in Due from broker in the Statements of Assets and Liabilities. |
Morningstar Multisector Bond Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $114,920 | $ 91,783 |
| Futures contracts | 64,668 | 95,647 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $179,588 | $187,430 |
| Less: Derivatives not subject to MNA or similar agreements | (64,668) | (95,647) |
| Total gross amount of derivatives subject to MNA or similar agreement | $114,920 | $ 91,783 |
| * | 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 | $ 38,698 | $ (8,908) | $29,790 | $— | $29,790 |
| Barclays | 15,891 | (9,255) | 6,636 | — | 6,636 |
| BNP Paribas | 38,186 | (716) | 37,470 | — | 37,470 |
| Citibank | 9,731 | (9,658) | 73 | — | 73 |
| JPMorgan Chase | 11,871 | (11,871) | — | — | — |
| Standard Chartered Bank | 543 | (543) | — | — | — |
| Total | $114,920 | $(40,951) | $73,969 | $— | $73,969 |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America | $ (8,908) | $ 8,908 | $ — | $— | $ — |
| Barclays | (9,255) | 9,255 | — | — | — |
| Barings | (4,029) | — | (4,029) | — | (4,029) |
| BNP Paribas | (716) | 716 | — | — | — |
| Citibank | (9,658) | 9,658 | — | — | — |
| Goldman Sachs | (27,165) | — | (27,165) | — | (27,165) |
| JPMorgan Chase | (21,879) | 11,871 | (10,008) | — | (10,008) |
| Standard Chartered Bank | (10,173) | 543 | (9,630) | — | (9,630) |
| Total | $(91,783) | $40,951 | $(50,832) | $— | $(50,832) |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
Morningstar Global Opportunistic Equity Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $1,412 | $41,722 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $1,412 | $41,722 |
| Less: Derivatives not subject to MNA or similar agreements | — | — |
| Total gross amount of derivatives subject to MNA or similar agreement | $1,412 | $41,722 |
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| State Street | $1,412 | $(1,412) | $— | $— | $— |
| Total | $1,412 | $(1,412) | $— | $— | $— |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| State Street | $(41,722) | $1,412 | $(40,310) | $— | $(40,310) |
| Total | $(41,722) | $1,412 | $(40,310) | $— | $(40,310) |
Morningstar Alternatives Fund
| Derivative Financial Instruments: | Assets | Liabilities |
| Forward foreign currency exchange contracts | $ 9,983 | $ 162,400 |
| Futures contracts | 49,373 | 994,281 |
| Contracts for difference* | 59,107,206 | 53,280,400 |
| Interest rate swap contracts* | 39,853 | 154,691 |
| Credit default swap contracts* | — | 111,902 |
| Inflation swap contracts* | 5,179 | 585 |
| Purchased options | 71,889 | — |
| Written options | — | 11,520 |
| Total gross amount of derivatives in the Statement of Assets and Liabilities | $59,283,483 | $54,715,779 |
| Less: Derivatives not subject to MNA or similar agreements | (166,294) | (1,272,979) |
| Total gross amount of derivatives subject to MNA or similar agreement | $59,117,189 | $53,442,800 |
| * | 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 | $ 1,035 | $ (663) | $ 372 | $ — | $ 372 |
| Barclays | 23,071,272 | (21,082,549) | 1,988,723 | — | 1,988,723 |
| Citibank | 6 | (6) | — | — | — |
| Deutsche Bank | 2,196 | (1,802) | 394 | — | 394 |
| Goldman Sachs(a) | 23,198,285 | (22,562,546) | 635,739 | (150,000) | 485,739 |
| JPMorgan Chase | 12,838,325 | (9,636,452) | 3,201,873 | — | 3,201,873 |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| Counterparty | Gross Assets | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Morgan Stanley | $ 6,070 | $ (6,070) | $ — | $ — | $ — |
| Total | $59,117,189 | $(53,290,088) | $5,827,101 | $(150,000) | $5,677,101 |
| Counterparty | Gross Liabilities | Offset | Net Amount
Before
Collateral | Collateral
(Received)
Pledged | Net Exposure |
| Bank of America | $ (663) | $ 663 | $ — | $— | $ — |
| Barclays | (21,082,549) | 21,082,549 | — | — | — |
| Citibank | (211) | 6 | (205) | — | (205) |
| Deutsche Bank | (1,802) | 1,802 | — | — | — |
| Goldman Sachs | (22,562,546) | 22,562,546 | — | — | — |
| JPMorgan Chase | (9,636,452) | 9,636,452 | — | — | — |
| Morgan Stanley | (158,577) | 6,070 | (152,507) | — | (152,507) |
| Total | $(53,442,800) | $53,290,088 | $(152,712) | $— | $(152,712) |
| (a) | Actual amount of collateral received from Goldman Sachs is included in Due to broker in the Statements of Assets and Liabilities. |
| | |
For the year ended April 30, 2023, the quarterly average notional values were as follows and are representative of the trading volume of the derivatives held by the Funds.
| | 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 | $64,839,070 | $310,843,189 | $5,144,805 | $ — | $ 5,683,633 |
| Average Notional Balance - Short | 10,546,867 | 214,743,361 | 3,848,652 | — | 42,841,433 |
| Ending Notional Balance - Long | 48,417,487 | 211,563,419 | 5,633,031 | — | 2,107,197 |
| Ending Notional Balance - Short | 19,261,788 | 251,861,797 | 4,534,234 | — | 39,244,020 |
| Forward Foreign Currency Exchange Contracts: | | | | |
| Average Settlement Value - Purchased | 4,904,647 | 11,768,415 | 2,492,633 | 1,891,187 | 10,484,198 |
| Average Settlement Value - Sold | 6,996,681 | 9,169,574 | 4,701,344 | — | 2,583,718 |
| Ending Settlement Value - Purchased | 5,343,505 | 7,003,793 | 2,662,698 | 7,564,749 | 9,454,226 |
| Ending Settlement Value - Sold | 7,350,364 | 5,037,933 | 6,398,751 | — | 3,870,046 |
| Contracts for Difference: | | | | |
| Average Notional Balance - Long | — | — | — | — | 1,250,410 |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Contracts for Difference (continued): | | | | |
| Average Notional Balance - Short | $ — | $ — | $ — | $— | $ 1,360,751 |
| Ending Notional Balance - Long | — | — | — | — | 1,077,031 |
| Ending Notional Balance - Short | — | — | — | — | 1,211,680 |
| Inflation Swaps: | | | | |
| Average Notional Balance - Pays Fixed Rate | — | 2,022,500 | — | — | 843,922 |
| Average Notional Balance - Receives Fixed Rate | — | 2,169,400 | — | — | 675,357 |
| Ending Notional Balance - Pays Fixed Rate | — | — | — | — | 276,000 |
| Ending Notional Balance - Receives Fixed Rate | — | — | — | — | 2,026,072 |
| Interest Rate Swaps: | | | | |
| Average Notional Balance - Pays Fixed Rate | 3,120,000 | 59,426,367 | — | — | 9,286,772 |
| Average Notional Balance - Receives Fixed Rate | 379,885 | 23,717,897 | — | — | 9,907,189 |
| Ending Notional Balance - Pays Fixed Rate | 2,147,000 | 35,885,045 | — | — | 8,445,760 |
| Ending Notional Balance - Receives Fixed Rate | 1,519,541 | 5,387,220 | — | — | 8,264,069 |
| Credit Default Swaps: | | | | |
| Average Notional Balance - Buy Protection | — | 3,310,247 | 1,087,963 | — | 3,467,500 |
| Average Notional Balance - Sell Protection | — | 104,039,755 | 166,300 | — | 1,050,000 |
| Ending Notional Balance - Buy Protection | — | 1,916,546 | — | — | 6,935,000 |
| Ending Notional Balance - Sell Protection | — | 76,949,000 | — | — | — |
| Options: | | | | |
| Average Notional Balance - Purchased | 2,604,879 | 77,598,118 | — | — | 19,179,051 |
| Average Notional Balance - Written | 1,318,110 | 150,287,112 | — | — | 17,493,014 |
| Ending Notional Balance - Purchased | 5,086,826 | 119,121,739 | — | — | 12,868,961 |
| Ending Notional Balance - Written | 3,106,780 | 192,837,952 | — | — | 11,788,380 |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| | Morningstar
Global
Income Fund | Morningstar
Total Return
Bond Fund | Morningstar
Multisector
Bond Fund | Morningstar
Global Opportunistic
Equity Fund | Morningstar
Alternatives
Fund |
| Swaptions: | | | | |
| Average Notional Balance - Purchased | $— | $46,794,040 | $— | $— | $— |
| Average Notional Balance - Written | — | 93,724,768 | — | — | — |
| Ending Notional Balance - Purchased | — | 9,850,200 | — | — | — |
| Ending Notional Balance - Written | — | 6,069,600 | — | — | — |
9. Federal Income Tax Matters
As of April 30, 2023, 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:
| Morningstar Funds | Cost of
Investments | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net
Unrealized
Appreciation
(Depreciation) |
| U.S. Equity Fund | $1,335,336,895 | $204,889,997 | $(74,446,923) | $130,443,074 |
| International Equity Fund | 807,921,330 | 79,741,538 | (76,841,470) | 2,900,068 |
| Global Income Fund | 228,017,120 | 7,392,113 | (12,111,588) | (4,719,475) |
| Total Return Bond Fund | 921,341,580 | 4,378,925 | (59,776,167) | (55,397,242) |
| Municipal Bond Fund | 347,983,270 | 718,845 | (18,972,947) | (18,254,102) |
| Defensive Bond Fund | 144,518,668 | 230,141 | (7,358,672) | (7,128,531) |
| Multisector Bond Fund | 185,449,744 | 2,713,225 | (13,365,192) | (10,651,967) |
| Global Opportunistic Equity Fund | 229,621,253 | 13,082,012 | (10,749,976) | 2,332,036 |
| Alternatives Fund | 281,261,868 | 6,940,753 | (20,848,757) | (13,908,004) |
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, 2023, the components of distributable earnings (loss) (excluding paid in capital) on a tax basis were as follows:
| Morningstar Funds | 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 | Other
Temporary
Differences | Total
Accumulated
Earnings |
| U.S. Equity Fund | $— | $5,450,542 | $17,133,007 | $130,444,771 | $— | $— | $153,028,320 |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| Morningstar Funds | 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 | Other
Temporary
Differences | Total
Accumulated
Earnings |
| International Equity Fund | $ — | $14,735,360 | $ (9,579,354) | $ 2,888,225 | $ — | $ (92) | $ 8,044,139 |
| Global Income Fund | — | 1,498,085 | (20,508,265) | (4,719,475) | — | (25) | (23,729,680) |
| Total Return Bond Fund | — | 699,468 | (79,072,112) | (55,411,356) | — | (268) | (133,784,268) |
| Municipal Bond Fund | 167,124 | — | (4,799,187) | (18,254,102) | — | — | (22,886,165) |
| Defensive Bond Fund | — | 36,353 | (3,120,048) | (7,128,532) | — | — | (10,212,227) |
| Multisector Bond Fund | — | 456,786 | (21,459,699) | (10,653,812) | — | (44) | (31,656,769) |
| Global Opportunistic Equity Fund | — | 2,548,034 | 937,412 | 2,326,857 | — | — | 5,812,303 |
| Alternatives Fund | — | 1,905,757 | — | (13,900,981) | (7,309,473) | — | (19,304,697) |
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, 2023, no reclassification was recorded.
The tax character of distributions paid during the fiscal year ended April 30, 2023 were as follows:
| | Fiscal Year Ended April 30, 2023 |
| Morningstar Funds | Tax-Exempt Income | Ordinary Income | Capital Gains | Total Distributions Paid |
| U.S. Equity Fund | $ — | $18,811,662 | $103,557,071 | $122,368,733 |
| International Equity Fund | — | 14,561,814 | 13,660,294 | 28,222,108 |
| Global Income Fund | — | 11,680,371 | 7,672,134 | 19,352,505 |
| Total Return Bond Fund | — | 22,207,988 | — | 22,207,988 |
| Municipal Bond Fund | 7,795,775 | 233,504 | — | 8,029,279 |
| Defensive Bond Fund | — | 3,670,466 | — | 3,670,466 |
| Multisector Bond Fund | — | 4,767,479 | — | 4,767,479 |
| Global Opportunistic Equity Fund | — | 4,269,209 | 1,582,642 | 5,851,851 |
| Alternatives Fund | — | 11,324,569 | 193,123 | 11,517,692 |
The tax character of distributions paid during the fiscal year ended April 30, 2022 were as follows:
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| | Fiscal Year Ended April 30, 2022 |
| Morningstar Funds | Tax Exempt Income | Ordinary Income | Capital Gains | Return of Capital | Total Distributions Paid |
| U.S. Equity Fund | $ — | $110,198,770 | $128,287,273 | $ — | $238,486,043 |
| International Equity Fund | — | 45,662,593 | 96,994,386 | — | 142,656,979 |
| Global Income Fund | — | 14,947,148 | 13,613,661 | — | 28,560,809 |
| Total Return Bond Fund | — | 13,881,661 | 4,639,870 | — | 18,521,531 |
| Municipal Bond Fund | 6,838,232 | 64,365 | 241,086 | — | 7,143,683 |
| Defensive Bond Fund | — | 4,600,989 | 785,732 | 262,291 | 5,649,012 |
| Multisector Bond Fund | — | 8,172,757 | 1,078,319 | — | 9,251,076 |
| Global Opportunistic Equity Fund | — | 14,334,709 | 25,786,433 | — | 40,121,142 |
| Alternatives Fund | — | 13,669,424 | 2,977,689 | — | 16,647,113 |
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, 2023, the Morningstar International Equity Fund, Global Income Fund, Total Return Bond Fund, Municipal Bond Fund, Defensive Bond Fund, and Multisector Bond Fund had capital losses incurred that will be carried forward indefinitely under the provisions of the Act in the amount of $7,050,714, $14,175,080, $32,826,860, $1,014,677, $521,173, $15,068,238 for short-term capital loss carry-forward and $2,528,640, $6,333,185, $46,245,252, $3,784,510, $2,598,875, $6,391,461 for long-term capital loss carry-forward, respectively.
For the period subsequent to October 31, 2022, through the fiscal year ended April 30, 2023, the following Funds incurred net capital losses and/or late year ordinary losses for which the Funds intend to treat as having been incurred in the following fiscal year:
| Morningstar Funds | |
| Alternatives Fund | $ 7,309,473 |
10. Principal Risks and Concentrations
Active Management Risk: The Funds are actively managed with discretion and may underperform market indexes or other mutual funds with similar investment objectives. The Funds' performance depends heavily on Morningstar’s skill and judgments around allocating assets to subadvisers, open- and closed-end investment companies, ETFs and individual securities. A Fund could experience losses if these judgments prove to be incorrect.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
Consumer Cyclical Sector Risk: The consumer cyclical sector consists of companies that are involved in areas such as the production, manufacture, distribution, or sale of consumer goods and services that have cyclical characteristics, such as automotive manufacturers, retail companies, and housing-related companies. Consumer cyclical companies rely heavily on business cycles and economic conditions. The consumer cyclical industry can be significantly affected by several factors, including, without limitation, the performance of domestic and international economies, exchange rates, changing consumer tastes and trends, marketing campaigns, cyclical revenue generation, consumer confidence, commodity price volatility, labor relations, interest rates, import and export controls, intense competition, technological developments and government regulation.
Consumer Noncyclical Sector Risk: The consumer noncyclical sector consists of companies that are involved in areas such as the production, manufacture, distribution, or sale of consumer goods and services that have non-cyclical characteristics, such as food and beverage, household goods, personal products, and non-discretionary retail. These companies may be adversely impacted by changes in domestic and global economic conditions, natural and man-made disasters, political, social or labor unrest, consumer confidence and preferences, disposable household income and consumer spending, product cycles, marketing, demographics, production spending, competition, government regulations and factors impacting the supply, demand and prices of raw materials.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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
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 committed 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
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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 a 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 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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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. The potential effect of a transition away from 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. The global pandemic outbreak of an infectious respiratory illness caused by a novel coronavirus known as COVID-19 has resulted in substantial market volatility, market closures and dislocations, liquidity constraints, supply chain issues, increased trading costs and global business disruption, impacting the global economy and the financial health of individual companies in significant and unforeseen ways. The duration and ongoing future impact of COVID-19 (or other future epidemics or pandemics) are unpredictable, and 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.
Russia’s invasion of Ukraine in late February 2022 has significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and North America. The resulting responses of various countries, the European Union and NATO to Russia’s actions, the potential for further sanctions, military escalation and other corresponding events, including potential retaliatory actions by Russia, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including increased volatility, reduced liquidity and overall uncertainty. Certain sectors including, but not limited to, energy, financials, commodities, engineering, and defense may be particularly affected. This could negatively impact a Fund's performance and the value of an investment in a Fund, even beyond any direct investment exposure a Fund may have to Russian issuers or the adjoining geographic regions. Any such disruptions caused by Russian military action, resulting sanctions or other actions (including cyberattacks) may magnify the impact of other risks.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
Portfolio Turnover Risk: Certain Funds may engage in active and frequent trading of their portfolio securities. Such a strategy often involves higher transaction costs, including brokerage commissions and dealer mark-ups, and may increase the amount of capital gains (in particular, short-term gains) realized by a Fund. Shareholders may pay tax on such capital gains. These effects of higher than normal portfolio turnover may adversely affect Fund performance.
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.
Quantitative Models Risk: Morningstar may utilize quantitative models in managing all or a portion of a Fund. Such quantitative models may not perform as expected and may cause a Fund to underperform other investment strategies. Flaws or errors in the quantitative model’s assumptions, design, execution, or data inputs may adversely affect Fund performance. Due to the significant role technology plays in a quantitative model, use of a quantitative model carries the risk of potential issues with the design, coding, implementation, or maintenance of the technology used in the quantitative model. These issues could negatively impact investment returns. Quantitative models may underperform in certain market environments including in stressed or volatile market conditions. There can be no assurance that the use of quantitative models by Morningstar will enable a Fund to achieve its objective.
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;
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
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 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.
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.
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
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.
Technology Sector Risk: Securities issued by technology companies have historically been volatile due to the rapid pace of product change and development within the sector. Technology companies are subject to intense competition, rapid obsolescence of their products or lack of commercial success, issues with obtaining financing or regulatory approvals, product incompatibility, delays in or cancellation of the release of anticipated products, and high required corporate capital expenditure for research and development of new products. The activities of these companies may also be adversely affected by changes in government regulations, worldwide technological developments, and changes in consumer preferences or investor perception of a company and/or its products or services.
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.
11. Principal Ownership
As of April 30, 2023, the Funds had omnibus accounts owning more than 5% of the total Institutional shares outstanding of each Fund as follows:
| Morningstar Funds | Number of
Shareholders | % Ownership1 |
| U.S. Equity Fund | 5 | 99% |
| International Equity Fund | 5 | 99% |
| Global Income Fund | 5 | 99% |
| Total Return Bond Fund | 5 | 99% |
| Municipal Bond Fund | 5 | 99% |
| Defensive Bond Fund | 4 | 96% |
| Multisector Bond Fund | 5 | 99% |
| Global Opportunistic Equity Fund | 5 | 99% |
Morningstar Funds Trust April 30, 2023
Notes to Financial Statements (continued)
| Morningstar Funds | Number of
Shareholders | % Ownership1 |
| 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.
12. 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 of 1.25% 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, 2023, the Funds made no borrowings against the line of credit.
13. Subsequent Events
Management has evaluated subsequent events for the Funds through the date this report was issued.
On June 21, 2023, after consideration and evaluation of various factors and information, the Board of Trustees approved the termination with and the services of Easterly Investment Partners LLC as subadviser for the Morningstar U.S. Equity Fund. This termination is anticipated to be effective in the third quarter of the calendar year.
Morningstar Funds Trust April 30, 2023
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 and Morningstar Alternatives Fund (collectively referred to as the “Funds”)), including the schedules of investments, as of April 30, 2023, 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 four 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, 2023, 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 four 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, 2023, by correspondence with the custodian, agent banks, and brokers; when replies were not received from agent banks and brokers, we performed other auditing procedures. 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.
ERNST & YOUNG LLP
We have served as the Trust’s auditor since 2018.
Chicago, Illinois
June 28, 2023
Morningstar Funds Trust April 30, 2023
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, 2022 through April 30, 2023.
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 | $1,084.90 | $4.34 | $1,000.00 | $1,020.63 | $4.21 |
| Morningstar International Equity Fund | 0.98 | 1,000.00 | 1,249.80 | 5.47 | 1,000.00 | 1,019.93 | 4.91 |
| Morningstar Global Income Fund | 0.75 | 1,000.00 | 1,104.10 | 3.91 | 1,000.00 | 1,021.08 | 3.76 |
| Morningstar Total Return Bond Fund | 0.52 | 1,000.00 | 1,078.60 | 2.68 | 1,000.00 | 1,022.22 | 2.61 |
| Morningstar Municipal Bond Fund | 0.58 | 1,000.00 | 1,056.50 | 2.96 | 1,000.00 | 1,021.92 | 2.91 |
Morningstar Funds Trust April 30, 2023
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 | $1,032.40 | $2.42 | $1,000.00 | $1,022.41 | $2.41 |
| Morningstar Multisector Bond Fund | 0.80 | 1,000.00 | 1,093.70 | 4.15 | 1,000.00 | 1,020.83 | 4.01 |
| Morningstar Global Opportunistic Equity Fund | 0.77 | 1,000.00 | 1,155.30 | 4.11 | 1,000.00 | 1,020.98 | 3.86 |
| Morningstar Alternatives Fund | 1.16 | 1,000.00 | 1,015.30 | 5.80 | 1,000.00 | 1,019.04 | 5.80 |
| | | | | | | | |
| * | 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, 2023
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, 2023:
| Fund | Long-Term Capital Gain | |
| Morningstar U.S. Equity Fund | $17,133,007 | |
| Morningstar Global Opportunistic Equity Fund | 937,412 | |
CORPORATE DIVIDENDS-RECEIVED DEDUCTION (DRD) — A percentage of the dividends distributed during the fiscal year ended April 30, 2023 for the following Funds qualifies for the dividends-received deduction for corporate shareholders:
| Fund | Corporate DRD Percentage (%) | |
| Morningstar U.S. Equity Fund | 53 | |
| Morningstar International Equity Fund | —* | |
| Morningstar Global Income Fund | 8 | |
| Morningstar Defensive Bond Fund | —* | |
| Morningstar Multisector Bond Fund | 1 | |
| Morningstar Global Opportunistic Equity Fund | 8 | |
| Morningstar Alternatives Fund | 6 | |
* 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, 2023, are designated as “qualified dividend income”, as defined in the Act:
| Fund | QDI Percentage (%) | |
| Morningstar U.S. Equity Fund | 53 | |
| Morningstar International Equity Fund | 58 | |
| Morningstar Global Income Fund | 35 | |
| Morningstar Defensive Bond Fund | —* | |
| Morningstar Multisector Bond Fund | 1 | |
| Morningstar Global Opportunistic Equity Fund | 47 | |
| Morningstar Alternatives Fund | 8 | |
* Amount rounds to less than 0.5%
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 | $0.26 |
Morningstar Funds Trust April 30, 2023
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 |
Jennifer Choi
(1968) | Trustee since April 2023 | Professorial Lecturer in Law at the George Washington University School of Law since 2022; Senior Policy Advisor at Ropes & Gray from 2022 to March 2023; Chief Counsel of the Investment Company Institute (ICI) from 2017 to 2022; Adjunct Professor of Law at American University’s Washington College of Law from 2006 to 2019 | 9 | None |
Morningstar Funds Trust April 30, 2023
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 Principal Consultant at Foreside Fund Officer Services, LLC (dba ACA Group) 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, 2023
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, 2023
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 of Trustees of the Trust (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 International Equity Fund | Morningstar Multisector Bond Fund |
| | |
| • 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 Singapore Private Ltd | Morningstar Global Opportunistic Equity Fund |
| | |
| Morningstar Global Income Fund | • Lazard Asset Management LLC |
| | |
| • Cullen Capital Management, LLC | Morningstar Alternatives Fund |
| • Western Asset Management Company, LLC | |
| | • BlackRock Financial Management, Inc. |
| Morningstar Total Return Bond Fund | ○ Blackrock International Limited |
| | • SSI Investment Management, LLC |
| • BlackRock Financial Management, Inc. | • Water Island Capital, LLC |
| ○ Blackrock International Limited | |
| ○ Blackrock (Singapore) Private Limited | |
| • Western Asset Management Company, LLC | |
Morningstar Funds Trust April 30, 2023
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 is to determine whether to renew the Funds’ Investment Advisory Agreement with Morningstar and the Funds’ respective Subadvisory Agreements (together, the “Agreements”). The Funds’ Investment Advisory Agreement and Subadvisory Agreements were scheduled to expire at the end of April 2023. In March 2023, the Board met to consider whether to renew these Agreements for a one-year period, through April 30, 2024.
The Board decided to renew the Agreements. 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 continues to be 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 0.006%. For the U.S. Equity Fund, actual total expenses exceeded the peer group median by 0.021% and actual management fees paid exceeded the peer group median by 0.022%.
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 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 year 2022 was mostly positive:
| ○ | The Alternatives Fund, Municipal Bond Fund, Global Income Fund, U.S. Equity Fund, and Global Opportunistic Equity Fund performed in the second-best performing quintile of their categories (i.e., 2nd out of 5 performing quintiles, with 1st quintile being the best performing quintile); |
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
| ○ | The International Equity Fund and Defensive Bond Fund performed in the middle performing quintile of their categories (i.e., 3rd out of 5 performing quintiles, with 1st quintile being the best performing quintile);
|
| ○ | The Multisector Bond Fund and Total Return Bond Fund performed in the lowest-performing quintile of their categories (i.e., 5th out of 5 performing quintiles, with 1st quintile being the best performing quintile). |
The Board focused on those Funds with underperformance and extensively discussed the underperformance with Morningstar. The Board further noted the improvements in many of the Funds in their relative performance from last year. The Board was encouraged by the overall improvements in Fund performance. The Board also reviewed and noted personnel changes and enhancements to the investment processes.
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
Renewal of the Agreements
At a Board of Trustees meeting on March 14, 2023, the Board unanimously approved the renewal of the Agreements. The Board determined that the Agreements, 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 the renewal of the related 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.
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
• 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.
The report from Broadridge analyzed each Fund’s performance and risk relative to other funds that invest in similar types of securities. The analysis covered performance for the periods ended December 31, 2022.
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 comparable 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 Multisector 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 additional Fund (International Equity 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 “Key Considerations” above and “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.
The Board also considered that the fee and expense information reflected information as of a certain date and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.
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 2022 with representatives of Morningstar, certain Subadvisers and the Trust’s Chief Compliance Officer.
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
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.
• 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 (including talent management and related diversity, equity, and inclusion matters), 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.
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
The following discussion reviews some of the primary components of the Board’s decision to approve the renewal of the Agreements. 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:
• 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.
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
The Board considered other investment advisory services offered by Morningstar and each Subadviser, as well as any potential conflicts in connection with providing these services. The Board also considered Morningstar’s fees charged to other clients and the reasons for any differences in these fees.
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.
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 2022 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-best performing quintile of multistrategy funds (i.e., 2nd out of 5 quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2022 and total returns in the middle performing quintile of multistrategy funds for the three-year period ended December 31, 2022. The Fund outperformed its benchmark of the Morningstar U.S. Cash T-Bill TR USD for the three-year period ended December 31, 2022, but underperformed its benchmark for the one-year period ended December 31, 2022. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2022 were in the second-lowest and second-best performing quintiles,
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
respectively. The Board noted the improvement in relative performance as compared to last year. 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 middle performing quintile of short-term bond funds (i.e., 3rd out of 5 quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2022 and total returns in the best performing quintile of short-term bond funds for the three-year period ended December 31, 2022. The Fund outperformed its benchmark of the Bloomberg U.S. Aggregate Index for the three-year period ended December 31, 2022, but underperformed its benchmark for the one-year period ended December 31, 2022. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2022 were in the lowest and second-best performing quintiles, 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 Income Fund – The Fund had total returns in the second-best performing quintile of global allocation funds (i.e., 2nd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2022 and total returns in the second-lowest performing quintile of global allocation funds for the three-year period ended December 31, 2022. The Fund outperformed its benchmark of the Morningstar Global Income Blended Index for the one-year period ended December 31, 2022, but underperformed its benchmark for the three-year period ended December 31, 2022. The Fund’s Sharpe Ratio was in the middle performing quintile for the one- and three-year periods ended December 31, 2022. 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 ended December 31, 2022. 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 International Equity Fund – The Fund had total returns in the middle performing quintile of foreign 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, 2022 and had total returns in the second-lowest performing quintile of foreign large blend funds for the three-year period ended December 31, 2022. The Fund outperformed its benchmark of the Morningstar Global Markets Ex-U.S. Index (net) for the one-year period ended December 31, 2022, but underperformed its benchmark for the three-year period ended December 31, 2022. The Fund’s Sharpe Ratio was in the best performing quintile for the one- and three-year periods ended December 31, 2022. 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 ended December 31, 2022. 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, 2022. The Fund underperformed its
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
benchmark of the Morningstar Multisector Bond Blended Index for both of these periods. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2022 were in the best and lowest performing quintiles, respectively. The Board discussed with Morningstar the reasons for the relative underperformance for the one- and three-year periods ended December 31, 2022, which was due to the underweight to U.S. high yield bonds as well as lagging returns generated by the Fund’s three Subadvisers. The Board discussed the mandate review and implementation of a new Subadviser that occurred during the year ended December 31, 2022 and the impact that such actions had and were expected to have on future performance The Board also 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 Municipal Bond Fund – The Fund had total returns in the second-best performing quintile of muni national intermediate funds (i.e., 2nd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one- and three-year periods ended December 31, 2022. However, the Fund underperformed its benchmark of the Morningstar Municipal Bond Blended Index for both of these periods. The Fund’s Sharpe Ratio for the one- and three-year periods ended December 31, 2022 were in the middle and second-best performing quintiles, respectively. The Board noted the improvement in relative performance as compared to last year for the one- and three-year periods ended December 31, 2022. 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 lowest performing quintile of intermediate core bond funds (i.e., 5th out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2022 and total returns in the second-lowest performing quintile of intermediate core bond funds for the three-year period ended December 31, 2022. The Fund underperformed its benchmark of the Bloomberg U.S. Aggregate Bond Index for both the one- and three-year periods ended December 31, 2022. The Sharpe Ratio for the one- and three-year periods ended December 31, 2022 were in the middle and second-best performing quintiles, respectively. The Board discussed with Morningstar the reasons for the relative underperformance for the one- and three-year periods ended December 31, 2022, which was primarily due to an allocation to a Subadviser whose investment-grade corporate allocation and interest rate duration was negatively impacted by the rising inflation and interest rate environment. The Board discussed the rising inflation and interest rate environment and the performance of the Subadviser in light of expectations in this environment. The Board determined that no changes to the Fund’s Subadvisers were warranted at this time. The Board also 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, including the performance of the underperforming Subadviser.
Morningstar Global Opportunistic Equity Fund – The Fund had total returns in the second-best performing quintile of global allocation funds (i.e., 2nd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one- and three-year periods ended December 31, 2022. The Fund outperformed its benchmark of the Morningstar Global Opportunistic Index for 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, 2022. 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 Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
Morningstar U.S. Equity Fund – The Fund had total returns in the second-best performing quintile of large blend funds (i.e., 2nd out of 5 performing quintiles, with 1st quintile being the best performing quintile) for the one-year period ended December 31, 2022 and total returns in the lowest performing quintile of large blend funds for the three-year period ended December 31, 2022. The Fund outperformed its benchmark of the Morningstar U.S. Market TR USD Index for the one-year period ended December 31, 2022, but underperformed its benchmark for the three-year period ended December 31, 2022. The Fund’s Sharpe Ratio was in the second-best performing quintile for the one- and three-year periods ended December 31, 2022. The Board noted that there was again 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 ended December 31, 2022. 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.
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
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.
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, actual total expenses as a percentage of average net assets exceeded the peer group median by 0.006%. For the U.S. Equity Fund, actual total expenses exceeded the peer group median by 0.021% and actual management fees paid exceeded the peer group median by 0.022%. 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.
Morningstar Funds Trust April 30, 2023
Board Approval of Investment Advisory and Subadvisory Agreements (unaudited) (continued)
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.
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 concluded that the investment advisory and subadvisory fee structure provided for in the agreements was fair and reasonable.
Morningstar Funds Trust April 30, 2023
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 for their respective assets managed, as applicable. The Adviser and 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, 2023, 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 any implicit waivers, 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 $440,000 in 2023 and $415,000 in 2022.
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 2023 and NONE in 2022.
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, tax advice and tax return review are $135,475 in 2023 and $193,925 in 2022.
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 2023 and NONE in 2022.
Item 4(e)(1): Pre-Approval Policies and Procedures
Pursuant to the registrant’s Audit Committee Charter and Audit Committee Pre-Approval Policies and Procedures, each adopted on March 9, 2018 and amended most recently on June 21, 2023, the Audit Committee shall, to the extent required by applicable regulations, pre-approve (i) all audit, audit-related and permitted non-audit services rendered by the independent auditors to a series of the registrant (“Fund”) and (ii) all non-audit services rendered by the independent auditors to a Fund’s investment adviser and to certain of the investment adviser’s affiliates, as applicable. The Audit Committee has implemented policies and procedures by which such services may be pre-approved other than by the full Committee (for example, by any Committee member who is not an “interested person” of the Trust, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”)).
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
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the fiscal year ended April 30, 2023 that were attributed to work performed by persons other than the principal accountant’s full time, permanent employees was not greater than 50%.
Item 4(g): Aggregate Non-Audit Fees
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 $135,475 in 2023 and $193,925 in 2022.
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 rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, is compatible with maintaining E&Y’s independence in performing audit services.
Item 4(i):
Not applicable.
Item 4(j):
Not applicable.
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 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 5, 2023
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 5, 2023
| | |
| By | | /s/ Tracy L. Dotolo |
| | Tracy L. Dotolo, Treasurer |
| | (Principal Financial Officer) |
Date: July 5, 2023
