Morningstar UK and Alico Wealth Management announced an agreement to provide Independent Financial Advisers (IFAs) with planning tools, fund research, and managed portfolios through Morningstar Portfolio Planner SM.
Introduced as part of Select Portfolio Alico Wealth Managements recently-launched retirement and investment product range IFAs will have access to advised investment solutions designed and managed by Morningstar Associates Europe, Ltd, including new Controlled Volatility portfolios.
Available via Alico Wealth Managements IFA website, Morningstar Portfolio Planner SM is Morningstar UKs web-based asset allocation and portfolio construction tool that allows IFAs to efficiently construct client portfolios and present recommendations. Portfolio Planner combines Morningstar UKs investment research, investor-friendly design, and technology with Morningstar Associates Europes asset allocation methodology and manager selection expertise.
Through Select Portfolio, IFAs and their clients will have access to five new multi-manager investment portfolios constructed and actively managed by Morningstar Associates Europe. Three of the portfolios will incorporate Morningstar Associates Europes proprietary Controlled Volatility methodology a process that adjusts the equity/fixed interest balance within a clients portfolio in response to changes in overall market volatility. The objective is to maintain a consistent portfolio risk profile that provides downside protection to the investor in volatile falling markets, as well as upside potential during less volatile rising markets.
These managed portfolios will be the first application of our Controlled Volatility methodology in the UK. The volatility of investments inherently changes with the overall market, but these portfolios are designed to stabilise the risk profile regardless of the prevailing market conditions.
This brings a new investment proposition to IFAs and their clients in the United Kingdom, says Charles Barnick, managing director of International Investment Consulting for Morningstar Associates Europe, Ltd.
Portfolio Planners five-step process allows IFAs to capture a clients existing portfolio, establish risk tolerance, and select the managed portfolio best suited to their clients needs. They can then compare a before and after picture, using the flagship Morningstar X-Ray SM, a tool that shows, in picture format, the asset and geographical spread of a portfolio of investments to create clear client documentation detailing the investment proposition.
D.C.