Advisors using Morningstar Managed Portfolios as a third-party source for investment assets can now access allocations from the Morningstar Funds Trust.
The trust is an open-end investment management company consisting of nine multi-manager active funds chosen and managed by Morningstar Investment Management.
(Related: Morningstar Prepares to Launch Its Own Funds)
Historically, Managed Portfolios were limited to thirty-party funds that Morningstar had chosen. Now Managed Portfolios can allocate assets to funds in the Morningstar Trust whose managers may not even offer a mutual fund or whose subadvised account structure is less expensive, allowing Morningstar Investment Management to pass along costs savings to investors and implement more investment ideas more nimbly.