Morningstar Retirement and Envestnet are partnering to launch a managed accounts service for Individual Retirement Accounts (IRA) in the first quarter of 2024. The service, which will be powered by IRALOGIX and custodied by Matrix, aims to provide personalized investment advice for IRA account holders, regardless of their balance. The offering combines Envestnet’s fund selection and model portfolio-building capabilities with Morningstar Retirement’s managed accounts methodology and digital delivery platform. With no minimum account size requirements, the service aims to make personalized advice accessible to individuals with low balances.
The collaboration between Morningstar Retirement and Envestnet aims to bring innovation and personalization to the IRA space. By leveraging Envestnet Workplace Solutions and IRALOGIX, the companies aim to provide personalized investment advice and institutionally priced investment options to IRA account holders. With the growing cost of administering IRA programs, this collaboration offers asset managers, broker-dealers, and recordkeepers the opportunity to shift those costs to a private-labeled offering while still maintaining existing revenue streams. The service is expected to benefit investors, asset managers, and the wealth and retirement industry as a whole.
Morningstar Retirement’s traditional managed accounts service, which currently serves over 2 million participants in employer-sponsored retirement plans, will power this new IRA service. Envestnet will develop the fund-level models that form the basis for the portfolio-building process within the IRA service. This new offering aims to give IRA account holders access to professionally-built investment portfolios that are highly customized to their specific needs and objectives. By utilizing Envestnet’s technology and Morningstar’s investment expertise, the service aims to provide individuals with a seamless and personalized IRA investing experience.
