Morningstar has launched a business unit offering advisers and financial institutions seeking to outsource fund selection or asset allocation access to a series of select lists and model portfolios.
The Manager Selection Services (MSS) unit, part of the Morningstar Investment Management group, offers three services.
The provision and maintenance of "best in class" lists of Morningstar rated funds across all main asset classes. The funds are collated by the MSS team to give broad-based exposure to Morningstar rated funds.
In addition, clients can have access to Morningstar's quantitative analysis of non-Morningstar rated funds to satisfy their specific fund requirements.
Conducting holistic analysis of existing fund lists and providing recommendations with a view to improving long-term investor outcomes.
Model Portfolio Service
Access to global, multi-asset portfolios created using Morningstar's asset allocation and manager selection expertise. These model portfolios cover a range of risk categories and can be mapped directly to bespoke risk tolerance questionnaires or to Morningstar's own risk tools.
This service is designed for those institutions that do not want to completely outsource the management of their assets - to retain investment discretion - while including Morningstar's global expertise in asset allocation and fund selection at the heart of their investment proposition.
These intend to deliver better client outcomes, help reduce costs and comply with increasingly tough regulatory and governance pressures.
The MSS team will leverage Morningstar's fund research and analytical capabilities of the 116 manager research analysts and 107 investment management professionals worldwide.
Morningstar Investment Management Europe MSS director Gavin Corr said: "In a post-MiFID II world, financial institutions and advisers are increasingly looking to outsource fund selection and model portfolio management to third parties.
"This is due to the increasing regulatory scrutiny, growing costs of having in-house investment capability and the relentless pressure on margins due to fee compression.
"Leveraging the depth of our expertise around the globe, MSS aims to alleviate those institutions and advisers of some of the pressures in fund selection and asset allocation, allowing them to enhance the service to their clients."
Effective from 1 August
10 new members
Strategic partnership between firms
12 months' notice