Morningstar Launches New Business Unit for Institutions and Advisers Seeking to Outsource Fund Selection and Asset Allocation

April 17, 2018

LONDON / EMEA, 17 April 2018— Morningstar has announced the launch of a new business unit, offering financial institutions and financial advisers seeking to outsource fund selection or asset allocation access to a series of Select Lists and Model Portfolios.

The new unit, Manager Selection Services (MSS), is part of the Morningstar Investment Management group, offering three distinct services designed to deliver better outcomes to their clients, help them reduce costs, and comply with increasingly tough regulatory and governance pressures. The offering includes:

  • Select Lists – the provision and maintenance of “best in class” lists of Morningstar rated funds across all main asset classes. The funds are collated by the Manager Selection Services team to give broad-based exposure to Morningstar rated funds. In addition, clients can have access to Morningstar’s quantitative analysis of non-Morningstar rated funds to satisfy their specific fund requirements.
  • Migration Services – conducting holistic analysis of existing fund lists and providing recommendations with a view to improving long-term investor outcomes.
  • Model Portfolio Service – access to global, multi-asset portfolios created using Morningstar’s asset allocation and manager selection expertise with a strong and credible track record of successful delivery since 2009. These model portfolios cover a range of risk categories and can be mapped directly to bespoke risk tolerance questionnaires or to Morningstar’s own robust risk tools. This service is designed for those institutions that do not want to completely outsource the management of their assets (i.e. want to retain investment discretion), while including Morningstar’s global expertise in asset allocation and fund selection at the heart of their investment proposition.

The MSS team will leverage Morningstar’s fund research and analytical capabilities of the 116 manager research analysts and 107 investment management professionals worldwide.

Gavin Corr, Director, Manager Selection Services for Morningstar Investment Management Europe Ltd, said: “In a post MiFID II world, financial institutions and advisers are increasingly looking to outsource fund selection and model portfolio management to third parties due to the increasing regulatory scrutiny, growing costs of having in-house investment capability and the relentless pressure on margins due to fee compression. Leveraging the depth of our expertise around the globe, Manager Selection Services aims to alleviate those institutions and advisers of some of the pressures in fund selection and asset allocation, allowing them to enhance the service to their clients.”

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About the Morningstar Investment Management Group

The Morningstar Investment Management group, through its investment advisory units, creates investment solutions that combine award-winning research and global resources with proprietary Morningstar data. With more than US$195 billion in assets under advisement and management as of Dec 31, 2017, it provides comprehensive retirement, investment advisory, and portfolio management services for financial institutions, plan sponsors, and advisers around the world. The Morningstar Investment Management Group comprises Morningstar Inc.’s registered entities worldwide. In the UK, the Manager Selection Services unit is part of Morningstar Investment Management Europe Limited which is authorised and regulated by the UK Financial Conduct Authority to provide services to Professional clients.

Morningstar’s manager research and rating activities are not undertaken by Morningstar Investment Management Europe Ltd and as such, are not regulated by the UK Financial Conduct Authority.

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