Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

Morningstar Investment Management Review

Your Details Done
by Updated

This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Morningstar Investment Management provides investment management advice to individuals through their 401(k) or other employer-sponsored retirement plans. This division of the financial research giant also provides investment management services to institutional clients. 

Morningstar Investment Management Background

Morningstar Investment Management is a wholly-owned subsidiary of Morningstar, Inc., a public company traded on the Nasdaq. The firm comprises more than 100 investment professionals working across nine offices in Chicago, London and Sydney. 

Morningstar Investment Management Client Types and Minimum Account Sizes

Morningstar Investment Management works with various client types:

  • Individual retirement plan participants and individuals who are already retired 
  • Plan providers and sponsors who offer investment advice programs to individual participants in defined contribution plans such as 401(k), 457 and 403(b) retirement plans
  • Financial institutions
  • Third-party advisory programs
  • Investment companies (including the Morningstar Funds Trust)

There is no minimum account size to become a client. 

Services Offered by Morningstar Investment Management

Morningstar Investment Management offers two advisory programs: 

Retirement Plan Services for Individuals 

Morningstar Investment Management offers investment advice to employer-sponsored retirement plans. These may include 401(k) plans, 403(b) plans and more. Individuals have access to Morningstar’s retirement plan program through plan sponsors that work with the firm. 

Morningstar suggests investment strategies to its clients based on a thorough analysis of their financial situation, plan investment options, risk tolerance and retirement income needs. The firm draws from these and other factors to create investment portfolios within clients’ retirement plan accounts. These are built with asset allocations that Morningstar believes can help clients meet their retirement goals. 

The firm also offers clients access to Retirement Manager, an online platform designed to help participants make better investment decisions regarding their employer-sponsored retirement plans. 

Investment Management for Institutional Clients 

Morningstar Investment Management provides institutional clients like large corporations with portfolio management services. These services encompass everything from devising investment strategies to building and monitoring client portfolios. 

Morningstar Investment Management Investing Philosophy

Morningstar generally seeks growth by creating portfolios that adhere to the risk tolerance and goals of the specific client. Its investing strategy varies, depending on the client type and the client’s overall goals. For instance, a retirement plan participant may have a limited number of fund options to build a portfolio. Two participants under the same plan may have drastically different retirement income needs depending on their age and other factors. 

Institutional clients generally have the universe of investments to choose from and Morningstar works with these clients to establish portfolios that aim to meet their established goals.  

Fees Under Morningstar Investment Management

Morningstar Investment Management’s advisory fees charged to retirement plan participants are usually negotiated with the plan sponsor. Generally, fees for the management of retirement plans range from 0.10% to 0.50% of assets under management.

What to Watch Out For

Morningstar Investment Management’s services are limited when it comes to client type. While the firm focuses on portfolio management for large institutional clients and participants of employer-sponsored retirement plans, it doesn’t work with individuals who are not plan participants. It also doesn't offer non-securities related advice to individuals. Certainly, if you’re seeking financial planning services for topics like budgeting, savings and risk management, you will want to look elsewhere.

Morningstar did not have any legal or disciplinary events within the past 10 years to report. For the latest information, you can view its Form ADV on the website of the Securities and Exchange Commission (SEC). 

Tips for Finding a Financial Advisor

  • Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Ask prospective advisors about their credentials. Believe it or not, but you don't actually need special training to call yourself a financial advisor. So people who get certifications, like certified financial planners (CFPs), may have that much more credibility and qualification, as well as the standards of their credentialing organization to uphold.  

All information was accurate as of the writing of this article.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research