MORNINGSTAR, INC.
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| Morningstar Launches Real Return Discretionary Managed Portfolios for UK Market | ||||
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LONDON, 6th January 2015-Morningstar Investment Management Europe Ltd, part of the Morningstar Investment Management group, today launches Multi-Asset Real Return portfolios as part of the Morningstar OBSR Managed PortfoliosTM service. The new range comprises four discretionary managed portfolios each targeting a specific return in excess of inflation. The Morningstar OBSR Multi-Asset Real Return portfolios are designed to support advisers in the financial planning process by providing realistic and explicit return targets that can be aligned to the specific investment objectives of their clients. These real return portfolio targets, together with their equity exposure limits, are shown in the following table: Portfolio name Real return target Min / Max equity weight Real Return 100 CPI +1% 0-40% Real Return 300 CPI +3% 20-70% Real Return 500 CPI +5% 60-100% Real Return Flexible CPI +4% 0-100% "A real return focus requires an investment approach that is different to strategic investing," Edward Fane, Senior Portfolio Manager for Morningstar Investment Management Europe, said. "Our real return investment process is designed to exploit the behavioural bias of investors toward excessive pessimism that can push prices well below long-term fair value ranges and create opportunities for disciplined value investors to achieve superior risk adjusted returns. To find these opportunities, each month we scrutinise more than 150 asset and sub-asset classes to identify those that are under- or over-priced. We then subject the most attractive opportunities to further in-depth fundamental analysis and peer review before we consider their inclusion in the Morningstar OBSR Real Return portfolios. The explicit return and capital loss expectations generated by the Dynamic Asset Allocation approach are ideally suited to this objective." The Morningstar OBSR Managed Portfolios are actively managed within a team of 19 investment professionals and supported by the global Morningstar Investment Management group. Morningstar constructs the portfolios using both active and passive instruments. The selection of actively managed funds leverages the Morningstar OBSR Analyst Rated Universe, thereby drawing on the in-depth expertise of Morningstar's 100 plus manager research analysts located across Europe, Asia, Australia, and North America. "We believe we will increasingly see investment strategies judged by their ability to meet a specific investment objective or their ability to beat inflation," said Dan Kemp, co-head of investment consulting and portfolio management, EMEA, for the Morningstar Investment Management group. "Morningstar has been successfully managing real return-focused portfolios in Australia since 2009 and we are delighted to be able to offer this strategy to UK investors." The Morningstar OBSR Managed Portfolios service launched in May 2013 with a range of active and passive strategies. In October 2014, Morningstar added two Income Portfolios to the service. All of the Morningstar OBSR Managed Portfolios are available across a range of adviser platforms and are aligned to the output of the Morningstar Risk Tolerance Questionnaire. - Ends - Notes to Editors The Morningstar OBSR Managed Portfolios service is a discretionary funds management offering designed to meet a targeted range of investment objectives. The service offers financial advisers a holistic approach to client portfolio management by incorporating risk tolerance profiling, portfolio construction- including asset allocation and fund selection-on-going monitoring, and portfolio reporting in one package. For further information, please visit: http://global.morningstar.com/UKManagedPortfolios. About the Morningstar Investment Management Group The Morningstar Investment Management group, through 11 investment advisory subsidiaries, creates investment solutions that combine award-winning research and global resources with proprietary Morningstar data. With USD$169 billion in assets under advisement and management as of 30 September 2014, the Morningstar Investment Management group provides comprehensive, retirement, investment advisory, and portfolio management services for financial institutions, plan sponsors, and advisers around the world. In Europe, Morningstar Investment Management Europe, Ltd, provides these services. Morningstar Investment Management Europe, Ltd is authorised and regulated by the Financial Conduct Authority and is also the provider of the Morningstar OBSR Managed Portfolios service. About Morningstar, Inc. Morningstar, Inc., is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisers, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 479,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 13 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $169 billion in assets under advisement and management as of September 30, 2014. The company has operations in 27 countries. | ||||
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