Morningstar, Envestnet Launch Managed IRA Service

The retirement group within Morningstar Investment Management is teaming up with Envestnet and IRALOGIX to launch what the firms are billing as a new “managed account service for individual retirement accounts.”

According to a joint announcement published Monday morning, the new service will feature custody support from Matrix, a subsidiary of Broadridge, and the overall goal is to help make it easier for individuals to receive personalized advice in their IRAs regardless of their account balance.

This will be accomplished, according to the firms, by combining Envestnet’s fund selection and model portfolio building capabilities with Morningstar Retirement’s managed accounts methodology, investment engine and digital delivery platform.

The service is expected to launch in the first quarter of 2024 and will feature IRA administration support from IRALOGIX, which also means investors will have access to institutional share classes rather than retail shares.

From the perspective of end investors, the service will manage the portfolio for the account holder, adjusting the investment strategy as the person’s situation and investment objectives evolve, according to the firms.