Through the new service, Portfolio Complete, Morningstar will help plan sponsors and their financial intermediaries carry out enhanced corporate financial planning, as well as give them an increased ability to forecast contributions, make asset allocation decisions, and meet liability objectives. Morningstar will provide ongoing investment and fiduciary support.
According to the announcement, Morningstar will act as a fiduciary with respect to the investment advice it gives a pension plan if the plan fully implements Morningstar’s recommendations.
Under the program, NYLIM Retirement Plan Services, Morningstar Associates and a financial intermediary will:
- gather information using an investment preference profile that defines the sponsor’s business and its plan economics
- walk the plan sponsor through a detailed investment process to identify plan needs, risk tolerances, and corporate strategies.
Morningstar Associates, in conjunction with any financial intermediary, will use its investment consulting expertise to:
- compile the appropriate asset allocations for the plan, referencing plan liabilities
- create or revise an investment policy statement for the plan
- select from the universe of managers a group that works well in combination
- monitor each pension plan to ensure that the selected asset classes and managers continue to meet high standards of quality and adhere to predetermined guidelines.