Products November 10, 2001

Morningstar Outlines Asset Allocation With Model Portfolios

October 11, 2001(PLANSPONSOR.com) - Morningstar has constructed two tax-sheltered paper portfolios to educate investors on the benefits of a diversified asset allocation.
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Morningstar will introduce the Great Managers portfolio and the Index-Anchored portfolio in the October 2001 issue of Morningstar FundInvestor, a newsletter for individual investors.

Investing $100,000 in each portfolio, Morningstar analyst will choose the funds to be included and will provide explanations for their choices in the newsletter.

Funds will be chosen based on past performance, moderate costs, manageable assets and solid management. In addition:

  • the Great Managers portfolio will include funds with a distinct, and sometimes difficult to replicate, investment style,
  • while the Index-Anchored, more risk averse and cost-conscious, include an S&P 500 index fund, complemented with actively managed funds

The portfolio committee will analyze performance each month in Morningstar FundInvestor and rebalance the portfolios each December.

Next year, the company will introduce model portfolios for taxable accounts.

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