Morningstar is entering the money management business through Morningstar Managed Portfolios, wrap accounts set up for use by financial advisers. Subsidiary Morningstar Investment Services will offer the program beginning in the fourth quarter, and separate account wrap portfolios managed by outside investment managers will be offered next year. The turnkey, fee-based investment management program initially will feature mutual fund portfolios researched and monitored by Morningstar, as well as back-office and administrative support and a web-based client management system for use by third-party intermediaries.
Art Lutschaunig was hired as chief investment officer of the subsidiary. He was executive vice president and director of research for Strategic Advisers, a Fidelity Investments subsidiary, where he was responsible for more than $11 billion in discretionary assets under management.
