About Us
Investor Relations
 Press Release
U.S. Media Contact+1 312 696-6383
Margaret Kirch Cohenmargaret.cohen@morningstar.com
T. Rowe Price First to Offer Full Suite of Morningstar Advice Services to Plan Sponsors

New Lineup of Advice Tools to Help 401(k) Investors of All Levels Better Prepare for Retirement

Participants to Have Access to Managed Accounts and Advice Delivered On Paper, Online, or by Phone

BALTIMORE/CHICAGO, Nov 13, 2003 – In an effort to make it easier for companies to help their employees better prepare and invest for retirement, T. Rowe Price Retirement Plan Services is now offering plan sponsors access to the full suite of Morningstar advice services, including managed accounts, as well as advice delivered on paper, online, or by phone. T. Rowe Price becomes the first firm to provide access to the entire lineup of participant advice services that comprise the Morningstar® Enterprise Advice SolutionSM. As a result, T. Rowe Price is able to give plan sponsors the flexibility to address the varied needs of employees with different levels of investment experience while helping all participants make better investment decisions.

“While many employees are asking for direction and guidance on how to invest for retirement, we know that no single tool meets the needs of all investors,” said Charlie Vieth, president, T. Rowe Price Retirement Plan Services, Inc. “This array of Morningstar advice solutions will enable and encourage retirement investors of all levels to save more, diversify properly, and form appropriate asset allocations. We recognize that some investors are sophisticated, with technical savvy and a strong understanding of investment concepts and the markets, while others are novices who need step-by-step help and reassurance.”

“Morningstar is well-regarded in the investment industry for its objectivity,” Mr. Vieth added. “By integrating its services within our retirement platform, Morningstar will be able to deliver consistent advice through a variety of media using the same underlying research and methodology. Plan sponsors will have the option of offering their employees all four services, or customizing their selection of advice tools to the needs of their organizations.”

The Morningstar Enterprise Advice Solution is offered through Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Powered by Morningstar’s proprietary investment selection methodology, the Enterprise Advice Solution includes the following services:

Managed accounts: Morningstar® Managed Retirement PortfoliosSM is an account management service that lets participants delegate the management of their employer-sponsored retirement plan to Morningstar. Based on information provided by each plan, Morningstar creates diversified portfolios to help meet participants’ retirement planning needs. The service considers relevant plan rules and fund restrictions, makes prudent recommendations regarding existing positions in company stock, and adjusts its fund recommendations if the participant provides information about outside assets, preferences for particular funds, or other personal data. In addition, the service features periodic monitoring and automatic quarterly rebalancing.

Paper advice: The Morningstar® Advice StatementTM, which is automatically sent to participants, is a quick-reading, printed advice statement that provides a three-step analysis of the employee's current retirement plan, as well as recommendations that may help improve the quality of his or her investment allocation and potential retirement income. The Advice Statement, which requires no input directly from the participant, compares current and suggested portfolios and analyzes the quality, diversification, and goal-reaching ability of each portfolio. The only thing participants need to do, if they desire, is to implement the plan as outlined on the statement.

Online advice: Morningstar® Advice OnlineSM is ideal for self-directed investors and answers participants’ needs for on-the-spot goal analysis and fund selections. This tool develops an investment plan by mapping existing retirement investments and the mutual funds available in a participant’s 401(k) plan, along with the employee’s risk tolerance, to a selected asset allocation strategy. With the guidance version of the service, these include sub-asset class level recommendations, such as small- and large-cap stocks. With the full investment advice service, participants receive specific security recommendations that will help them build diversified portfolios using the investment options available in their defined contribution plans.  Using enhanced Monte Carlo analysis, Morningstar Advice Online also calculates the level of retirement income that could be achieved as well as the probability that projected retirement income goals might be reached.

Phone advice: The Morningstar® Advice Call CenterSM is a special desktop interface T. Rowe Price call center representatives use when talking to plan participants over the telephone. The Advice Call Center application is used by representatives to assist participants in understanding the investment selections recommended by the Morningstar advice engine. A Goal Planner tool provides participants with the appropriate asset mix given their current situation. It also provides a wealth forecast based on the chosen asset mix and a gap analysis that compares the projected retirement income to the participant’s calculated retirement needs. An Investment Selector tool allows the representative to view the specific investment suggestions provided by the Call Center advice engine. If available, the participant’s current portfolio is compared to the suggestions to see the effects of the proposed changes on the portfolio.

Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global investment management firm with $168.9 billion in assets under management as of September 30, 2003. The firm provides a broad array of mutual funds, sub-advisory services, and separate account management for retirement plans, individual and institutional investors, and financial intermediaries. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at www.troweprice.com.

Morningstar, Inc. is a global investment research firm offering an extensive line of print, software, and Internet-based products and services for individuals, financial advisors, institutions and the media.  The company is a trusted source of investment information and analysis for stocks, mutual funds, exchange-traded funds, closed-end funds, variable annuities and separate accounts.

Morningstar is not affiliated with T. Rowe Price.  T. Rowe Price does not supervise or take responsibility for monitoring the advice provided to participants through Morningstar.

 Printer-friendly version
News Archive
Research Library
Morningstar Experts
Media Relations Contacts
News and SEC Filing Alerts
Morningstar Awards
© Morningstar. All rights reserved.