Morningstar, Envestnet Launch Managed IRA Service
The IRA product will have no account minimum, allowing investors with lower balances to access personalized advice.
The retirement group within Morningstar Investment Management is teaming up with Envestnet and IRALOGIX to launch what the firms are billing as a new “managed account service for individual retirement accounts.”
According to a joint announcement published Monday morning, the new service will feature custody support from Matrix, a subsidiary of Broadridge, and the overall goal is to help make it easier for individuals to receive personalized advice in their IRAs regardless of their account balance.
This will be accomplished, according to the firms, by combining Envestnet’s fund selection and model portfolio building capabilities with Morningstar Retirement’s managed accounts methodology, investment engine and digital delivery platform.
The service is expected to launch in the first quarter of 2024 and will feature IRA administration support from IRALOGIX, which also means investors will have access to institutional share classes rather than retail shares.
From the perspective of end investors, the service will manage the portfolio for the account holder, adjusting the investment strategy as the person’s situation and investment objectives evolve, according to the firms.
The IRA product will have no minimum account size requirements, making it easier for those with low balances to gain access to personalized advice.
Brock Johnson, president of Morningstar Retirement, says this collaborative effort “aims to advance access to personalized investment advice and institutionally priced investment options in the IRA space.”
“Every account holder should have access to not only a professionally built investment portfolio, but also one highly configured to their specific needs and objectives,” Johnson says.
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