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.
"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."
The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.
The Omaha, Nebraska-based RIA's latest acquisition expands its Rocky Mountain footprint after two prior Colorado deals last year.
Operational drag between an advisor signing and accounts going live is emerging as a competitive liability for wealth management firms.
Bain says companies face a "winner's paradox" as AI transformation collides with complex integrations.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
