Morningstar is offering more choice for independent advisors in the US investing space with the addition of new third-party investment options to its wealth management platform.
Following a stringent selection process, Morningstar Wealth has enriched its separately managed account platform by adding SMAs from a number of leading names in the asset management space.
Among the reputable names that made the cut are AllianceBernstein, Manulife-owned John Hancock Investment Management, Lazard Asset Management, Putnam Investments – which Franklin Templeton recently acquired from Great-West Life – and WCM Investment Management.
With SMAs from these asset managers at their fingertips, US advisors on the Morningstar Wealth platform will have more flexibility to build portfolios and unified managed accounts based on their clients’ unique needs and objectives, Morningstar said in a statement.
“Morningstar's dedication to empowering advisors is core to why we implemented a manager selection process leveraging our renowned manager research team to provide a curated selection of investments available on the Wealth Platform,” explained Cindy Galiano, managing director of U.S. wealth platform & investment solutions at Morningstar Wealth.
There’s no questioning the rise in demand for SMAs, with an estimated 22% of US households investing in them as of 2022 according to a survey by Hearts & Wallets. That rise in ownership, the report said, was led by households with investable assets of at least $3 million.
Based on data from Cerulli, assets in the sector have doubled since 2019 to come within striking distance of $2 trillion. The research firm reports SMA assets grew by 12% last year, and it’s projecting a further 15% increase this year, putting it on pace to reach $3 trillion in the near future.
Headed by Daniel Needham, Morningstar Wealth was brought into being in 2022 as a way to appeal more to financial advisors by bringing together several capabilities – including portfolio management software, investment data aggregation, and managed portfolios – under one unit.
Since then, Morningstar has expanded its wealth platform with a direct indexing solution, which encompasses a suite of core and thematic equity strategies, and the introduction of model portfolios from BlackRock, T. Rowe Price and Clark Capital in April last year.
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
