Investments  

Morningstar launches managed portfolio database for advisers

Morningstar launches managed portfolio database for advisers
 

Morningstar has launched a ‘whole of market’ comparable database of UK managed portfolios, which is free for advisers to access. 

The investment firm said the database, ‘UK Managed Portfolios’, will allow users to view consistently calculated performance and Morningstar categorised portfolios.

It will include other Morningstar research and ratings, including sustainability ratings, ESG metrics and the newly launched Morningstar portfolio risk scores. 

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Morningstar’s director of client solutions, Anastasia Georgiou highlighted the value the firm wants to place on transparency. 

“As asset flows into managed portfolios are accelerating, Morningstar believes it’s important to provide advisers with the same level of transparency on managed portfolios as is available for funds. In the past, the UK adviser market has struggled to compare the vast majority of solutions on a like-for-like basis.

“Given the growing global trend for outsourcing managed portfolios, demand for greater transparency and insight among the UK adviser market will only grow,” Georgiou said. 

Morningstar said the database is completely independent and there is no charge for providers to submit their data, nor is there any charge for Morningstar to calculate or distribute to advisers. 

The database contains nearly 900 portfolios and over 50 providers available to view, with Morningstar aiming to cover the majority of portfolios and providers by the end of 2022. 

Responding to the launch, AJ Bell’s managing director, Kevin Doran said for the first time advisers will now be in a position to perform whole of market research within the MPS market “without the need for cumbersome licences and permissions from the DFM.”

“It finally puts MPS on the same footing as multi-asset funds and should accelerate the trend towards segregated model portfolios vs the single-line, single-price solution amongst those genuinely independent advisers. Game changing stuff from Morningstar,” he added. 

In preparation for bringing the database to market Morningstar consulted with its advisory group of providers, which included: AJ Bell, Brewin, Brooks Macdonald, EBI Portfolios, LGT Vestra, Morningstar IM, Evelyn Partners, Tatton IM, Tribe Impact Capital and Waverton.

jane.matthews@ft.com