We may be unable to generate adequate returns on our cash and investment balance if we cannot identify attractive  investment opportunities. Our results could suffer if the mutual fund industry experiences  slower growth. Consolidation among our clients may adversely impact our  competitive position, our relationships with our clients, and  business results. The availability of free or low-cost investment information could lead to lower demand for our products and adversely  affect our financial results. Competition could reduce our share of the investment research  market and hurt our financial performance. Morningstar, Inc. 2010 Annual Report 51 Investment research and information relating to publicly traded  companies and mutual funds is widely available for little or no cost  from various sources, including the Internet and public libraries.  Investors can also access information directly from publicly traded  companies and mutual funds. The Interactive Data Electronic  Applications (IDEA) database available through the SEC website  provides real-time access to SEC filings, including annual, semi- annual, and quarterly reports. Financial information and data is also  widely available in XBRL (eXtensible Business Reporting Language),  and many brokerage firms provide financial and investment research  to their clients. The widespread availability of free or low-cost  investment information may make it difficult for us to maintain or  increase the prices we charge for our publications and services and  could lead to a lower demand for our products. A loss of a significant  number of customers would hurt our financial results. We operate in a highly competitive industry, with many investment  research providers competing for business from individual investors,  financial advisors, and institutional clients. We compete with many  different types of companies that vary in size, product scope, and  media focus, including large and well-established distributors of  financial information, such as Thomson Reuters; Standard & Poor’s,  a division of The McGraw-Hill Companies; Bloomberg; and Yahoo!.  We compete with a variety of other companies in different areas  of our business, which we discuss in greater detail in the Business  Segments, Products, and Services section in Item 1—Business. Many of our competitors have larger customer bases and significantly  greater resources than we do. This may allow them to respond more  A significant portion of our revenue is generated from products and  services related to mutual funds. The mutual fund industry has  experienced substantial growth over the past 25 years, but suffered  along with the market downturn in 2008 and early 2009. Global  mutual fund assets declined to about $23.7 trillion as of September  30, 2010, down from a peak of $26.1 trillion in 2007. While mutual  fund assets rose in 2010, equity-focused funds have continued to  experience net cash outflows, suggesting that investors remain  cautious about equity-related assets. A significant portion of our  fund research has historically focused on equity-related funds.  Continued downturns or volatility in the financial markets, increased  investor interest in other investment vehicles, or a lack of investor  confidence could reduce investor interest and investment activity  in this area. A slower growth rate or downturn in mutual fund assets  could decrease demand for our products. Industry consolidation in the financial services sector has accelerated  over the past several years. We can’t predict the impact on our business  if one of our clients is acquired. We may lose business following  an acquisition of one of our clients if we’re not able to continue  providing services or expand our business with the combined orga- nization. Any loss of business because of increased consolidation  could have a negative effect on our revenue and profitability. The investment information industry is dominated by a few large  players, and industry consolidation has increased in the past several  years. If providers of data and investment analysis continue to con- solidate, our competitive position may suffer. quickly to new technologies and changes in demand for products  and services, devote greater resources to developing and promoting  their services, and make more attractive offers to potential clients,  subscribers, and strategic partners. Industry consolidation may also  lead to more intense competition. Increased competition could result  in price reductions, reduced margins, or loss of market share, any of  which could hurt our business, operating results, or financial condition. We held a total of $365.4 million in cash and investments as of  December 31, 2010. Because of generally low prevailing interest  rates on high-quality fixed-income securities, the rate of return we  can generate with our cash and investment balance is relatively  low. We have used portions of our cash and investment balance to  finance acquisitions over the past several years. We cannot guar- antee that we will be able to find suitable acquisition opportunities  in the future. As mentioned above, we may also fail to generate  enough revenue or profits from an acquisition to earn a return on  the associated purchase price.