Morningstar sells Broadridge its board consulting services business

Global fintech firm to leverage 15(c) board consulting firm to help fund boards meet fiduciary duties

Dec 20, 2017 @ 2:36 pm

By Jeff Benjamin

Morningstar Inc. has agreed to sell its board consulting services business to Broadridge Financial Solutions.

The deal, which was announced Tuesday after the close of the stock market, is described as a way to expand the services that Broadridge already provides to fund boards.

The 15(c) board consulting services business provides materials to the boards of directors and executive teams of mutual funds, which helps them meet fiduciary duties to review and approve the fee agreements with each of their investment advisers.

According to a statement from Morningstar's head of data and research products, Scott Burns, the sale "aligns with the long-term strategies" of both companies.

"Morningstar is sharpening its focus on delivering its fund data and analytics to as many users as possible," he said.

According to Broadridge, a $4 billion global fintech firm, the acquisition will enable fund board clients to compare funds using both Morningstar and Lipper data, via an objective, independent source to assess fund advisers and sub-advisers.

"The expanded breadth and depth of our data-driven solutions will continue to enhance the value we provide to our investment management clients and set standards for the financial services industry," said Dan Cwenar, head of buy-side analytics at Broadridge, in a statement.

The terms of the deal between the two publicly traded companies were not disclosed. The deal is expected to close in January.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Here's how we came up with our list of undiscovered talent in mutual funds

Senior columnist John Waggoner talks with assistant managing editor Susan Kelly about how hard work, curiosity and passion landed some fund managers on our list.

Latest news & opinion

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

Cadaret Grant acquired by private-equity-backed Atria

75-year-old owner Arthur Grant positions the IBD for the 'next 33 years.'

SEC advice rule seeks to tighten reins on brokers

The proposed rule puts new restrictions on brokers, but it is still unclear how strongly the SEC is clamping down.

SEC advice rule hearing updates

Commission says a lot of work ahead, public will have 90 days to comment.

SEC advice proposal unveiling: Here's what to expect

Chairman Jay Clayton will initiate momentous action Wednesday, as the commission meets to debate a rule on broker and adviser standards.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print