February 21, 2024



as an annual Morningstar Investment Conference held as scheduledthe wealth tech and investment management provider is bringing new capabilities to its ByAllAccountsProducts And scale those improvements to companies of all sizes.

Morningstar Wealth announced on Wednesday morning that a new portfolio analytics capability will be available through its data aggregation solution, which is tailored to the unique needs and challenges of financial advisors, investors and the platforms that support them.

Upgrade to apply analytics to aggregated portfolios with turnkey integration Morningstar authorization dataThe feature provides in-depth data augmentation of total investment holdings with additional fund and equity attributes, company officials said.

This includes regional segmentation, asset allocation, equity and fixed income sector exposure, and equity and fixed income style boxes that help advisors provide more accurate personalized investment recommendations.

Morningstar said the Portfolio Analytics feature simplifies an advisor’s workflow by leveraging investment data to generate proposals, portfolio risk and risk analysis.

“At Morningstar Wealth, we plan to continue to innovate the ByAllAccounts product to exceed advisor expectations,” Daniel Needham, president of Morningstar Wealth, said in a statement. “With more than 20 years of professional investing experience and the highest quality aggregated data in the industry, Morningstar Wealth will continue to inform and drive advisor success.”

Katy Gibson, managing director and head of product at Morningstar Wealth ByAllAccounts, said that as the industry becomes increasingly competitive, advisors need to take every opportunity to differentiate themselves and get the most out of their time.

She said her team provides wealth tech firms and broker-dealers with the right mix of data and technology to help them “give advisors the tools they need to serve clients and scale their businesses in a cost-effective manner.”

Speaking of cost-effectiveness, Gibson told financial plan They have gone to great lengths to ensure that their target audience can take advantage of the new ByAllAccounts feature without cost being an obstacle.

The motivation for this, Gibson explained, is Morningstar’s belief in creating a healthy wealth tech ecosystem. But the feedback they gathered indicated that Morningstar data, while lauded for its quality, was cost prohibitive.

“There are two target audiences for this. The first is the smaller wealthtech startups. In most cases, they can’t afford a Morningstar data license, which is more suitable for larger companies. This gives them an opportunity Pay to use as you do, so to speak. Our hope is that as they grow, they will become users of larger data licenses,” she said. “And then for the larger companies … they do a lot of this mapping on the back end. So they take data from various sources, and then they have to map back to things like regional segmentation, industry asset allocation, etc. And a lot of times, they’re getting data from Morningstar buys data. So imagine we’re doing this work for them.”

She added that as companies try to figure out what their strategy is around data analytics, the ByAllAccounts team believes analytics has reached a tipping point, meaning that there are now many high-quality tools that can eliminate the need for companies to hire expensive data scientists Run analytics for them.

“Tools have become so powerful that a lot of companies are investing in tools. They’re putting a lot of premium into custom analytical models instead of buying generic models off the market,” Gibson said. “So our strategy is to be a data provider. We want to make sure we bring you data that is high quality, normalized, structured, highly enriched, and adaptable to whatever tool you use, so that you can build on top of that data. Your own custom model.”

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