Calling traditional risk profiling inadequate, Morningstar Inc. has introduced two new risk measurement tools “to provide a more rigorous and manageable client profiling and investment planning process for firms and their advisers,” the company said in a release.
Starting next week, the company's new Portfolio Risk Score will be available on its Advisor Workstation. The Portfolio Risk Score is also available now on third-party platforms through Morningstar Enterprise Components, along with the company's new Risk Comfort Range.
Both tools will roll out across Morningstar’s other platforms over the remainder of 2021.
The Portfolio Risk Score measures a portfolio’s level of risk compared with Morningstar’s Target Allocation Index family and can be applied to client portfolios, model portfolios, proposed portfolios or individual managed investments, the company said in a release.
The Risk Comfort Range is a methodology “to align client expectations about the risk exposure of their portfolios based on their risk profile and investment objectives to an appropriate range of Morningstar Portfolio Risk Scores,” according to the release.
With growth topping succession as the leading M&A driver, referral programs are a top of mind consideration for advisory firms making moves as Goldman Sachs, Pershing and Robinhood consider entering the referral market.
The $8 billion RIA is getting more fuel for geographic expansion and recruit top talent through a minority investment partnership.
The rush of SEC applications, which also includes JPMorgan and Schwab, reflect growing optimism over the tax-busting fund structure.
The half-dozen teams who joined the hybrid RIA in the early innings of 2025 have lifted it past a key asset milestone.
Meanwhile, GPB senior executives' sentencing for fraud pushed to May.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
