Morningstar Investment Management Europe, a provider of investment advisory and portfolio services, has launched a managed portfolios service for UK advisers, the Morningstar OBSR Managed Portfolios.
The Morningstar OBSR Managed Portfolios service is a complete outsourced portfolio construction service that combines asset allocation and fund manager selection to create a powerful solution for advisers to assist them in meeting their clients’ investment objectives.
The managed portfolios are designed to meet a wide range of investment objectives and offer a holistic approach to the business needs of advisers by incorporating risk tolerance profiling, portfolio construction (asset allocation and fund selection), ongoing monitoring, and portfolio reporting in one package.
The service uses the expertise of two of its affiliates, Ibbotson Associates for its asset allocation expertise and Morningstar OBSR for its fund manager research expertise. Actively managed funds included in the managed portfolios service are expected to hold a Morningstar OBSR analyst rating, where an appropriate rated fund is available for selection. The service has already been made available to advisers in the Argentis group, a financial planning and wealth management company, via the Skandia platform.
“Our new offering is an extension of existing services that we have been providing in the UK for a number of years,” says Geoff Balzano, chief executive for Morningstar UK. “We are pleased to be working with Argentis and Skandia and look forward to bringing the service to other adviser groups and platforms in the coming months.”
The Morningstar OBSR Managed Portfolios service consists of five risk/reward profiles: cautious, moderately cautious, moderate, moderately adventurous and adventurous. Portfolios will be reviewed and rebalanced at least quarterly. The annual fee for the Managed Portfolios service is 0.30 per cent on assets allocated in accordance with the active/passive portfolios and 0.20 per cent on assets allocated in accordance with the passive portfolios. VAT is chargeable.
