Peng Chen Promoted to Head Morningstar’s Investment Management Operations

Ibbotson President to oversee all of Morningstar's global investment management operations

Peng Chen (below), the Ibbotson Associates president, was named Wednesday as president of the Chicago-based company’s Investment Management division, which will include Morningstar Inc.’s investment consulting, retirement advice and investment management operations in North America, Europe, Asia and Australia. In his new position, Chen will oversee Morningstar Associates, Morningstar Investment Services, Old Broad Street Research and Seeds Finance, in addition to Ibbotson Associates.

At the same time, Morningstar Inc. announced that the current president of Morningstar Associates, Patrick Reinkemeyer, will leave the firm in mid-December, but will assist in the transition.

According to a spokesperson from Morningstar, Peng and Reinkemeyer were previously co-heads of the Investment Management division, with responsibilities for different businesses inside and outside of the U.S.

In a statement, Morningstar Chairman and CEO Joe Mansueto said Chen had done a “terrific job” leading Ibbotson Associates since Morningstar’s acquisition in 2006 of the firm founded by Roger Ibbotson in 1977, and that while the units to be led by Chen in his new position had previously operated separately, “we’re now at a point in the evolution of our business where it makes sense to combine the investment management units under one leader.”

Chen, a noted researcher in his own right in the fields of asset allocation and portfolio risk measurement (see a 2009 report on Chen and Roger Ibbotson’s research on the long-term performance of the stock and bond markets), joined Ibbotson Associates in 1997.

In the release announcing Chen’s new position, Morningstar reported that as of Sept. 30, 2010, the division had about 250 employees in seven countries, and that it had $101.3 billion in assets under advisement for investment consulting, and $17.8 billion in AUM for its managed retirement accounts, $3.6 billion in AUM for Ibbotson Australia, and $2.5 billion in AUM in Morningstar Managed Portfolios.

Read an extensive interview from 2008 with Peng Chen conducted by David Macchia of Research magazine and Wealth2k.

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