CHICAGO, Aug 21, 2001 Morningstar, Inc., a leading provider of investment information and analytical tools, today introduced the Morningstar® Managed Portfolios program, a discretionary portfolio-management service for financial advisors and intermediaries. This program is being offered by Morningstar Investment Services, Inc., a registered investment advisor and wholly owned subsidiary of Morningstar.
Morningstar will launch its Managed Portfolios program in the fourth quarter and offer it through financial planners, regional broker-dealers, bank-affiliated advisors, insurance agents, and certified public accountants.
"Morningstar® Managed Portfolios is a logical extension of our established businesses," said Joe Mansueto, chairman and CEO of Morningstar. "We've served investment advisors for nearly two decades and have expanded our business over the years to include a full spectrum of investment tools and solutions including research, analysis, online advice, and portfolio construction."
Mansueto added, "The Morningstar® Managed Portfolios program is intended to reach an audience we have only partially served until now--advisors with strong client-management and investment-planning backgrounds who are willing to use external professionals for additional help with portfolio management and monitoring. We believe our trusted name, due diligence expertise, and industry knowledge will distinguish our program from others in the market."
Morningstar® Managed Portfolios is a turnkey, fee-based investment-management program. Initially, it will feature mutual-fund portfolios researched, engineered, and monitored by Morningstar Investment Services, as well as back-office operations and support services. A state-of-the-art Web-based solution will provide complete client account management capabilities and marketing and sales support. Next year, Morningstar plans to add separate accounts managed by leading investment-management firms to allow for portfolios to be created using mutual funds and separate accounts.
Tom Florence, managing director for Morningstar, will serve as president of Morningstar Investment Services, Inc. Art Lutschaunig, former director of research and investments for Strategic Advisers, Inc., a Fidelity Investments company, has joined Morningstar Investment Services as chief investment officer. Lutschaunig will direct a staff of investment analysts and oversee the creation and management of each portfolio. The analyst staff of Morningstar Investment Services will be separate and distinct from Morningstar, Inc.'s mutual-fund analysts.
"Our core mission is to help people make better investment decisions. Morningstar® Managed Portfolios will further that goal by bringing our investment expertise to a new audience of investors," said Don Phillips, Morningstar managing director. "The program is based on our longstanding investment approach--using fundamental research to assemble appropriate, diversified portfolios--and it takes full advantage of Morningstar's comprehensive analytical, data, and research capabilities."
Client portfolios will be continuously monitored, as well as rebalanced and adjusted as necessary, based on market performance and portfolio information. Morningstar has entered into an agreement with Fleet/U.S. Clearing, a leading online brokerage clearing and trade-execution firm, to offer Morningstar® Managed Portfolios to financial advisors, including its 275 correspondent broker-dealer clients. For more information about Morningstar® Managed Portfolios, visit www.morningstar-mp.com.
About Morningstar, Inc. and Morningstar Investment Services, Inc.
Chicago-based Morningstar, Inc., is an independent provider of investment information and analytical tools. Morningstar, Inc.'s extensive line of Internet, software, and print services offers news, data, and analysis on stocks, mutual funds, closed-end funds, and variable annuities. Morningstar Investment Services is a registered investment advisor and a wholly owned subsidiary of Morningstar. The financial data and methodology used in Morningstar® Managed Portfolios are proprietary to Morningstar, Inc., and/or Morningstar Investment Services, Inc. Although the data are gathered from reliable sources, neither Morningstar, Inc. nor Morningstar Investment Services, Inc. guarantees their accuracy, completeness, or timeliness. Past performance is no guarantee of future performance. Morningstar® Managed Portfolios are intended for citizens or legal residents of the United States or its territories.
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¬ 2001 by Morningstar, Inc. All rights reserved.