The new unit, Manager Selection Services (MSS), is part of the Morningstar Investment Management group, and has three services designed to deliver “better outcomes to their clients, help them reduce costs, and comply with increasingly tough regulatory and governance pressures.”
The services are Select Lists, which is geared towards the provision and maintenance of ‘best in class’ lists of Morningstar rated funds across all main asset classes.
Migration Services was described as “conducting holistic analysis of existing fund lists and providing recommendations with a view to improving long-term investor outcomes.”
Finally, Model Portfolio Service will provide access to global, multi-asset portfolios created using Morningstar’s asset allocation and manager selection expertise
The company says its MSS team will leverage Morningstar’s fund research and analytical capabilities of the 116 manager research analysts and 107 investment management professionals worldwide.
Gavin Corr, director, Manager Selection Services for Morningstar Investment Management Europe Ltd, said: “In a post MiFID II world, financial institutions and advisers are increasingly looking to outsource fund selection and model portfolio management to third parties due to the increasing regulatory scrutiny, growing costs of having in-house investment capability and the relentless pressure on margins due to fee compression.”