CHICAGO, Nov. 16, 2006—Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced that Primerica Financial Services and Waddell & Reed, Inc. have selected Morningstar® Portfolio BuilderSM, Morningstar’s new asset allocation and portfolio construction tool, for use by their financial advisors. Morningstar Portfolio Builder is a Web-based workflow licensed by institutions to help their advisors efficiently and consistently construct client portfolios and present recommendations. The tool helps mitigate compliance risks by assisting firms in standardizing their approach to risk profiling, asset allocation, and investment selection. Portfolio Builder combines Ibbotson Associates’ asset allocation methodology with Morningstar’s investment research, investor-friendly design and technology. Ibbotson Associates, which Morningstar acquired in March 2006, is a leading authority on asset allocation.
"We’re pleased to expand our relationships with Waddell & Reed and Primerica to provide them with a portfolio-building tool that standardizes their work process and creates efficiency, while mitigating compliance concerns," said Chris Boruff, president of Morningstar’s advisor business. "Portfolio Builder takes the guesswork out of portfolio construction for advisors, which in turn, helps them provide consistent, high quality advice to their clients."
Portfolio Builder provides a step-by-step workflow that prompts advisors to capture client data, determine risk tolerance, identify an appropriate asset allocation, construct a recommended portfolio, and create a presentation document for the client. Firms have the flexibility to use standard risk tolerance questions and asset allocation models or create custom versions. They can also create fund-level model portfolios to use in their proposals to clients. The final proposal provides the client with a comprehensive portfolio recommendation that has been NASD-reviewed.
In addition to Portfolio Builder, Primerica also licenses Morningstar® Advisor Hypothetical IllustratorSM and Morningstar’s mutual fund research for use by its 28,000 registered representatives. As part of its INVESTMENTPlan platform, Waddell & Reed also licenses Morningstar® Advisor Hypothetical IllustratorSM and Morningstar research for mutual funds, closed-end funds, variable annuity products, U.S. stocks, and exchange-traded funds for use by its 2,400 advisors.
"Primerica is excited to team with Morningstar, one of the most respected names in the industry, to launch Portfolio Builder, a powerful new program that will greatly benefit both our representatives and their clients," said David Siegel, executive vice president and chief marketing officer for Primerica Financial Services Investments. "Portfolio Builder is a terrific product that offers the kind of common sense approach to portfolio construction that will enhance the ability of our reps to help our customers meet their long-term investment goals."
Portfolio Builder is part of Morningstar® Advisor Focused Solutions, a series of research, data and technology workflows that institutions may license to help their advisors complete specific tasks. Advisor Focused Solutions are currently available for integration with a firm’s existing systems or can be licensed in conjunction with Morningstar® Advisor WorkstationSM Enterprise Edition. More information on these products is available at global.morningstar.com.
About Waddell & Reed, Inc.
Founded in 1937, Waddell & Reed has grown to include more than 200 financial advisor offices nationwide. The company offers a wide array of investment products and financial planning services, as well as a variety of insurance products through arrangements with outside insurance companies. For more information about Waddell & Reed, visit www.waddell.com.
About Primerica Financial Services
Primerica Financial Services, headquartered in Duluth, Georgia, is the largest financial services marketing organization in North America, with more than 100,000 licensed independent representatives. The company provides financial products and services, including term life insurance, mutual funds, variable annuities, loans and long-term care insurance. Primerica and its affiliate companies are subsidiaries of Citigroup (NYSE:C), the leading global financial services company with some 200 million-customer accounts in approximately 100 countries. Additional information about Primerica and Citigroup is available on their respective Web sites: www.primerica.com and www.citigroup.com.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in the United States and in major international markets. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 145,000 investment offerings, including stocks, mutual funds, and similar vehicles. The company has operations in 14 countries and minority ownership interests in companies in three other countries.
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