Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, retirement plan providers and sponsors, and institutional investors in the private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, and realtime global market data. Morningstar also offers investment management services through its investment advisory subsidiaries.
U.S. Sustainability Moat Focus Portfolios (SMA)
As sustainable investing demand continually increases, Morningstar Investment Management LLC strives to empower investor success by providing investment opportunities that help to align investors’ financial goals with their values. During Earth Day 2021, Morningstar launched a separately managed account focused on sustainable investing in the U.S. Equity Market. The Morningstar U.S. Sustainability Moat Focus Portfolio seeks to invest in companies with moderate to low ESG risk (measured by Sustainalytics’ ESG Risk Ratings) and long-term competitive advantages (measured by Morningstar Economic Moat Ratings) that are attractively valued within an equity-focused, separately managed account. The portfolio seeks to replicate the Morningstar® U.S. Sustainability Moat Focus Index, created and maintained by Morningstar, Inc., which incorporates Morningstar Research Services LLC’s Equity Research and Sustainalytics’ proprietary research and industry-leading ratings.
Investment Management Symposium
As the global pandemic pushed advisors to adapt how they deliver advice, Morningstar Investment Management followed suit. We rethought how we host conferences, striving to serve up the ideal mix of product and investment insights to help advisors’ practices succeed in 2021 and beyond. In our first-ever Investment Management Symposium, we provided an opportunity for advisors to hear firsthand from our leaders on how we collaborate to offer greater value to investors by providing a clear understanding of our investing and market perspective, grounded in research, and guided by our valuation-driven approach to portfolio construction; product knowledge and portfolio talking points; and planned product enhancements and our commitment to service.
Morningstar Risk Ecosystem
Morningstar’s Risk Ecosystem is a proprietary solution made to meet/exceed today’s marketplace and investor demands. It helps advisors easily, yet comprehensively profile clients, and analyze, build, and recommend client-focused portfolios. The Risk Ecosystem helps accurately assess how much risk is right by measuring tolerance with the world’s leading psychometric test – the Morningstar Risk Profiler. It then adjusts for other factors (time horizon) and maps each goal to a compatible range of portfolio risk (Risk Comfort Range). Using the Morningstar Portfolio Risk Score, the advisor can then easily select a model or build a portfolio whose Risk Score falls in range to meet the client’s needs. This robust, yet investor-friendly experience empowers clients to make informed trade-offs and confidently harness risk to reach their goals.
Personal Target-Date Funds
Working with leading target-date fund managers, Morningstar Investment Management LLC will launch a new category of target-date investing, focused on the needs of modern investors. Our platform allows us to consider an increased range of factors pertaining to the individual investor when allocating funds. These factors go beyond the scope of an individual’s age, which currently is the hallmark of target-date fund selection. The service is underpinned by Morningstar Investment Management’s robust technology framework and extensive network of retirement recordkeeper connections, allowing for the collection and consideration of personal data factors. We are uniquely positioned to offer this framework we believe will redefine target-date investing and help create a new way for retirement savers to invest in target-date funds to reach their retirement goals.
Advisor Managed Accounts
Morningstar Investment Management LLC’s advisor managed accounts service enables RIAs to leverage the technology and methodologies behind Morningstar Retirement Manager and delivers advice to participants using the RIA’s investment portfolios and thinking. Recent service expansions include offering integration with Hueler Income Solutions to help facilitate the purchase of an annuity for participants nearing retirement that want to allocate a portion of their retirement savings to an annuity. We made the service available through IRALOGIX, an IRA product provider, allowing clients to white-label and furnish Morningstar Investment Management’s advice on IRAs –enabling retired participants, who roll their retirement assets over to an IRA, to continue receiving investment advice through our service. It also allows RIAs to provide consistent investment advice on plan assets and rollover IRAs.