Morningstar launches managed accounts for ETFs

Oksana Patron

14 March 2023

Morningstar has announced the launch of a range of managed accounts offering advisers access to managed funds and exchange-traded funds (ETFs).

The firm said that its new, Medalist Core portfolios, would offer holistic investment solutions designed to help advisers achieve their clients’ investment objectives.

The Medalist Core Managed Accounts:

• would be available across six different risk profiles, offering approachable options for a range of different client life stages;
• the asset allocation underpinning these risk profiles would include conservative, moderate, balanced, growth, and high growth and would be aligned to Morningstar’s Strategic Asset Allocation;
• would be regularly reviewed and rebalanced across a carefully selected group of funds, made up of Gold-, Silver- and Bronze-rated managers, with the Morningstar Medalist RatingTM reflecting Morningstar’s conviction of the quality of these managers and funds; and
• would use both active and passive strategies where appropriate. This approach ensures investors are only paying for active management where it is most likely to succeed which results in a very competitive offering.

Morningstar Head of Institutional Portfolio Management & Solutions Jody Fitzgerald said that the new portfolios would bring together Morningstar’s asset management capability and independent manager and equity research businesses which would allow to offer multi-manager multi-asset portfolios.

“We have the specialist resources to ensure we bring a level of robustness to every aspect of the portfolio build and execution that is paramount in an increasingly complex market and regulatory environment that few groups can boast,” she said.

“We are not just a research house building a managed account portfolio of our top recommendations. We’re also integrating our decades and wealth of portfolio management experience to build portfolios designed to better empower your clients’ financial decisions and investment success.”

The Medalist Core Portfolios have been added to the Macquarie Wrap and Praemium platforms and will go live on the HUB24 platform on the 21st March, with other platforms to follow.