CHICAGO, Aug 27, 2001 T. Rowe Price Associates and Morningstar Associates, LLC, two leaders in investment education, are forming an alliance that will provide individual investors, as well as participants in 401(k) plans serviced by T. Rowe Price, access to a wide array of sophisticated online financial planning services and investment guidance at no cost. The venture represents the first collaboration of its kind between Morningstar and a major financial services company, and creates a comprehensive suite of resources for everything from retirement, college, and tax planning to developing an investment strategy and reviewing a portfolio.
Under terms of the agreement, several popular Morningstar tools such as its retirement accumulation analyzer Morningstar ClearFutureSM will supplement proprietary T. Rowe Price tools such as the Retirement Income Calculator and College Savings Calculator. Morningstar ClearFutureSM uses a goals-based approach and Monte Carlo analysis to enable investors to examine the relationships between long- and short-term risk, asset allocation, and retirement income so they can determine the probability of reaching their financial goals.
Other tools developed by Morningstar that will be available include Portfolio X-Ray, which provides investors with a detailed analysis of their portfolios and shows total investment in individual stocks through direct ownership or across various mutual fund holdings; Portfolio Tracker, which presents a quick reference page of financial information on a user-defined group of mutual funds and stocks; and an IRA Calculator, which compares various types of IRAs with taxable accounts to help users determine which retirement vehicle is most appropriate for them.
All of the tools will be available on T. Rowe Price's Web site, www.troweprice.com. The companies expect to begin rolling out the combined platform by the end of the year.
"We are proud to collaborate with T. Rowe Price to deliver online financial planning and advice to investors," said Joe Mansueto, chairman and CEO of Morningstar. "Whether offering tax advice, retirement calculators, or its cutting-edge in-retirement planning service, T. Rowe Price has long been an innovator in investor education. Morningstar looks forward to working with T. Rowe Price in continuing that tradition."
"Like Morningstar, T. Rowe Price is committed to helping investors make better investment decisions," added John Rekenthaler, Morningstar president of online advice. "This similar philosophy makes for a powerful cultural fit between our two companies. We are very pleased to have T. Rowe Price as a partner."
"T. Rowe Price has a strong heritage as a trusted investment advisor and provider of well-regarded investor guides and online investment calculators," James Riepe, a vice chairman of the firm, said. "We are excited about this opportunity to enhance our ability to provide investors with even better online planning tools and education that can help them manage their investments more effectively and meet their financial goals. Combining our advisory expertise with Morningstar's unparalleled research capabilities and rigorous analysis will ensure that we stay on the cutting edge of investment education and continue to offer our clients and shareholders greater value."
While T. Rowe Price will continue to develop its own calculators and educational resources for investors, the alliance also enables it to serve in an advisory role for any additional tools Morningstar creates.
"Retirement plan sponsors and their employees are increasingly turning to the Web for help in managing their 401(k) investments," said Charlie Vieth, president of T. Rowe Price Retirement Plan Services. "As we look to provide more value-added services, we are thrilled to be able to offer a more robust lineup of investment tools from an independent source such as Morningstar, one of the most trusted names in investment education."
About T. Rowe Price
Founded in 1937, Baltimore-based T. Rowe Price is one of the nation's leading providers of no-load mutual funds and provides investment management services to individual investors, institutional clients, and corporate retirement programs. The firm and its affiliates managed $158.6 billion in assets as of June 30, 2001. More information is available at www.troweprice.com.
The Morningstar® ClearFutureSM online retirement advice program is provided by Morningstar Associates, LLC, a registered investment adviser and a wholly owned subsidiary of Chicago-based Morningstar, Inc., 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. The financial data and methodology used in ClearFuture are proprietary to Morningstar, Inc., and/or Morningstar Associates, LLC. Although the data are gathered from reliable sources, neither Morningstar, Inc. nor Morningstar Associates, LLC guarantees their accuracy, completeness, or timeliness. Past performance is no guarantee of future performance.