We have over 10,000 advisors globally using Managed Portfolios in their practices, which is up over 30% versus five years ago.  Within Managed Portfolios, we’ve experienced consistent growth across our platform (TAMP) as well as in strategist models on third-party platforms.  In the United States, we serve advisors across all channels, with the majority coming from insurance broker/dealers, independent broker/dealers, and independent RIAs.  Across Morningstar Direct, Office, and Advisor Workstation, we currently serve over 170,000 advisors.  While there is limited customer overlap between Morningstar licensed-based products and Managed Portfolios today, we expect it to increase as more advisors, especially independent RIAs, embrace managed accounts in their practice.  

As the value proposition of independent RIAs continues to shift toward areas like personalization, financial planning, behavioral coaching, wellness, and tax planning, advisor-facing solutions must evolve with respect to core portfolio management activities as well as these new areas of focus.  We are fully engaging here across our solutions, integrating existing capabilities and developing new capabilities to address the changing needs of the investors they serve.  Most notably, these areas include: 

• Unified managed accounts:  We are expanding our Managed Portfolio capabilities to include UMA functionality so advisors can integrate mutual fund advisory, exchange-traded fund advisory, and separately managed account solutions into a single account, expanding usability for RIAs.
• Risk Ecosystem and financial planning:  To address financial planning needs, we are embedding our Morningstar Risk Ecosystem in Morningstar Office, powered by our FinaMetrica risk-profiling capability and our Goal Bridge financial planning tool.  These capabilities will be integrated with our portfolio management software.  
• ESG:  We are responding to investor needs to manage environmental, social, and governance risk and build portfolios reflecting their preferences and desired impact.  We are embedding sustainability offerings across all Morningstar advisor-facing products, helping RIAs to meet the growing demand.
• Models:  Model portfolios offer RIAs the ability to scale their practice by incorporating third-party asset management and providing the foundation for a tailored portfolio.  Our models data, research, and portfolio management workflows within Office, as well as our Managed Portfolios product offerings, allow advisors to easily integrate models into their investment management process.  
• Direct indexing:  Many RIAs offer personalized portfolio solutions to meet the growing demand for tax management and portfolios reflecting the investor’s views on sustainability.  Morningstar Investment Management will combine our proprietary intellectual property — Morningstar Equity Research, Morningstar Sustainalytics, and Morningstar Indexes — to provide highly personalized investment strategies at scale beginning with a pilot in the second quarter of 2022.  We are launching this first phase with a select group of financial advisors.