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Morningstar Launches Investment Analysis Platform for Wealth Managers

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Morningstar has just launched a version of its Morningstar Direct investment analysis platform designed especially for wealth management firms.

Morningstar Direct for Wealth Management is a web-based platform that allows multiple teams at wealth management firms to pursue their individual tasks on manager selection, portfolio construction, asset allocation, risk management and more while also sharing information in real time.

The goal is to create “more efficient workflows,” says Adrian Johnson, director of wealth management software. That solves a problem that firms frequently face.

“Every single meeting I have with management firms I get feedback that it’s too difficult to share information across teams,” says Johnson. “They waste time trying to find the information and oftentimes don’t find it.“

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The new platform will allow a firm’s manager selection due diligence team to create a select list of portfolio managers that can be shared with the model portfolio construction team who can then have the risk analytics team evaluate the risk exposure of different model portfolios, adding another level of sharing. “The biggest benefit is that all of these capabilities are on one platform,” says Johnson.

The new, dedicated platform also incorporates data points on multiple investment issues including environmental, social and governments (ESG) measures, active share and custom data integration, which solves another problem for many wealth management firms.

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Firms often use different vendors for ESG, active share, risk models and more. “They can now get all of them on one platform,” says Johnson.

Morningstar Direct for Wealth Management is available for wealth management firms, regional and private banks, trust companies, multi-family offices and RIAs. Existing customers of Morningstar Direct can upgrade to the new platform at any time.

Morningstar charges an annual fee per user of the platform, whose price model will be “in line” with what it charged previously for Morningstar Direct, says Johnson. He wouldn’t elaborate.

There are currently 14,000 users on the Morningstar Direct platform including about 5600 wealth management users.