CHICAGO, Sept. 15, 2011 /PRNewswire/ -- Morningstar
Investment Services, Inc., (MIS) today introduced a suite of new
strategies to Morningstar Managed Portfolios, a fee-based
discretionary investment management program offered exclusively
through financial advisors. The strategies, which include
active/passive, momentum ETF, and global tactical ETF portfolios,
tap innovative methodologies developed by Ibbotson Associates, a
world leader in asset allocation. MIS and Ibbotson are registered
investment advisors within Morningstar's Investment Management
division.
"We're thrilled to make the Ibbotson portfolios available to the
more than 30,000 independent financial advisors who have access to
the Morningstar Managed Portfolios platform," said Jeffrey Ptak, president and chief investment
officer of MIS. "Advisors have increasingly sought low-cost, active
investing solutions that employ exchange-traded funds. We think
they'll find plenty to like in the Ibbotson portfolios, which
further broaden our lineup while putting Ibbotson's institutional
capabilities within their clients' reach."
Ibbotson Active/Passive Portfolios
Some asset classes, like small-cap and emerging markets
equities, can present better opportunities for active managers than
others, such as government bonds and large-cap equities. The five
Ibbotson Active/Passive Portfolios use ETFs or indexed mutual funds
in areas that are less ripe for active managers, and actively
managed funds in realms where a talented portfolio manager is more
likely to add value after taking risk into account. Broadly
diversified and low cost, these portfolios are designed to bring
investors the strength of both approaches
Ibbotson Momentum ETF Portfolios
Momentum investing is a well-documented investing style that
takes advantage of trends in investment returns. The five Momentum
ETF Portfolios seek to exploit these patterns by systematically
under- or over-weighting asset classes based on proprietary
momentum signals developed by Ibbotson. The portfolios confer the
benefits of low-cost, broadly diversified investing, but also
rapidly adjust to evolving market conditions.
Ibbotson Global Tactical ETF Portfolio
While momentum explains some of an asset class' return pattern
over shorter time periods, over longer time spans returns tend to
revert to their historical averages, or means. This implies that
investors could benefit from buying what's out of favor and selling
what's in vogue over the long term, while following trends in the
short term. The Ibbotson Global Tactical ETF Portfolio combines
momentum and "mean-reversion" signals to tactically allocate among
asset classes. The unconstrained portfolio is not tied to a target
allocation, but invests in areas of the market identified by
Ibbotson's proprietary tactical methodology. The Global Tactical
ETF Portfolio is geared toward investors seeking a highly dynamic,
opportunistic approach.
"These new portfolios leverage the best ideas and latest
research from across Morningstar's Investment Management division,"
said Thomas Idzorek, chief
investment officer and research director for the Morningstar
Investment Management division. "All three new strategies start
with robust Ibbotson asset allocations and then attempt to add
additional value through active-risk budgeting or tactical modeling
to exploit the momentum anomaly or momentum and mean reversion
patterns."
Additional information about Morningstar Managed Portfolios is
available at: global.morningstar.com/mis.
About Morningstar Investment Services
Morningstar Investment Services, Inc. is a registered investment
advisor and a wholly owned subsidiary of Morningstar, Inc. (NASDAQ:
MORN) MIS offers Morningstar Managed Portfolios, a turnkey,
fee-based discretionary investment management program developed for
financial advisors and their clients who are citizens or legal
residents of the United States or
its territories. MIS, along with Morningstar's other investment
advisory subsidiaries, comprise the Morningstar Investment
Management division. This division provides independent investment
management and consulting services to institutions and advisors and
has approximately $180 billion in
assets under advisement and management as of June 30, 2011. For more information about
Morningstar Investment Services, please visit:
www.mp.morningstar.com.
About Ibbotson Associates
Ibbotson Associates, Inc. is a registered investment advisor
within the Morningstar Investment Management division and a wholly
owned subsidiary of Morningstar, Inc. This division provides
independent investment management and consulting services to
institutions and advisors.
©2011 Morningstar, Inc. All rights reserved.
MORN-C
Media Contacts:
Alexa Auerbach, 312-696-6481 or
alexa.auerbach@morningstar.com
SOURCE Morningstar, Inc.