Morningstar Portfolio Management Services Available on Schwab Platform

Schwab Institutional and Morningstar Investment Services have established a relationship whereby Morningstar’s portfolio management services will be available on Schwab Institutional's enhanced managed account services platform.

Offered exclusively through financial advisers by Morningstar Investment Services, Morningstar’s managed portfolios include a series of mutual fund, ETF, and stock portfolios tailored to meet a range of investment strategies, time horizons, and risk levels, according to a press release.

The offerings include:

  • Morningstar Managed Mutual Fund Portfolios which offer mutual fund strategies designed to meet a wide array of needs. Every portfolio is actively managed, applying a strategic asset allocation and proprietary mutual fund evaluation system grounded in Morningstar, Inc.’s independent fund and stock research. The full range of portfolios allows advisers to align client goals with specific strategies including those focused on long-term growth of capital, retirement income, absolute return, and global opportunities.
  • Morningstar Managed ETF Portfolios which are actively managed using a “core and explore” investment process. This strategy combines “core” positions that provide exposure to broad asset classes in an efficient and low-cost manner with “explore” positions that seek to add value by taking advantage of opportunities in the markets. Selection of explore positions are based on a proprietary ETF-evaluation system developed by Morningstar Investment Services that combines macroeconomic and fundamental factors (See Morningstar Announces Active ETFs in Managed Account).
  • Morningstar Managed Portfolios Select Stock Baskets which combine the independent stock research provided by Morningstar, Inc. with the portfolio management expertise of Morningstar Investment Services. The resulting stock basket is a customized portfolio of U.S.-traded stocks that is tailored to suit an investor’s specific parameters, including sector and industry exposure, stock restrictions, existing holdings, and personal tax situation.

“We’re pleased to offer our objective research, analysis, and portfolio management expertise so investment advisors who work with Schwab Institutional can focus on building relationships with their clients while we manage the portfolios,” said Kunal Kapoor, president and chief investment officer for Morningstar Investment Services.