For years, Morningstar has provided research tools to financial advisers. But now the company has decided to get into the advisory business.
Morningstar, a Chicago-based provider of investment information and analytical tools, has announced it will launch a mutual fund management program later this year targeted at financial advisers.
Morningstar Managed Portfolios ( www.morningstar-mp.com ) will be offered through financial planners, regional firms, banks, insurance agents and CPAs, the firm says. Next year, Morningstar plans to add a separate-account service.
The program fee is 15-35 basis points, in addition to the fund fees, according to Morningstar. Adviser fees are determined by the broker.
“After we began building tools for advisers, the next natural step was to provide them with portfolios that are not only researched by Morningstar but built by Morningstar,” says Tom Florence, president of Morningstar Investment Services. “Over the years, many advisers have asked us to pick funds for the portfolio, so we’re responding to that need.”
Morningstar stresses that its investment services staff will be separate from its mutual-fund analysts.
The firm plans to offer client-management capabilities and marketing support via web-based technology.
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