Morningstar unveils inflation-busting multi-asset portfolios

Morningstar unveils inflation-busting multi-asset portfolios

Morningstar Investment Management has confirmed the launch of a range of multi-asset real return portfolios as it continues its drives to become a major force in discretionary management.

The firm has launched four Multi-Asset Real Return portfolios, which will aim to generate returns of inflation, measured by the consumer price index, plus between 1 per cent and 5 per cent, depending on the risk investors are willing to take.

The portfolios will be constructed using funds and other collective instruments, both active and passive, selected by Morningstar’s 19-strong team of fund selectors and analysts, as well as more than 100 analysts working for the broader Morningstar group.

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The firm launched its first discretionary management offerings, the Morningstar OBSR Managed Portfolios, in May 2013 with a range of active and passive multi asset portfolios.

In October last year, Morningstar added to that range with two new income-focused multi-asset portfolios, at which time the firm told Investment Adviser of its plans to launch a real return range.

The new portfolios are part of a wider effort from Morningstar to introduce more discretionary management services to the UK, where it has until now mainly been known for its fund rating and research.

Dan Kemp, co-head of investment consulting and portfolio management, EMEA, for Morningstar Investment Management, said the firm had been successfully running real return portfolios in Australia since 2009.