Morningstar to Expand Focus on Professionals
June 16, 2008
While Morningstar certainly has carved out its niche and made a name for itself arming individual investors with mutual fund data and insight, the company plans to increase its focus on financial advisers and institutions, or the "pros" eager to pay for quality research. That's according to an interview with Morningstar CEO Joe Mansueto in last week's issue of BusinessWeek.
As Morningstar currently derives only 22% of its revenues from products and services for the individual investor, growing the professional side of the ledger "is a natural extension of our business," Mansueto said. Institutional business, which includes sub-advisory work, grew an impressive 58% last year, now accounting for more than 50% of revenue.
In addition to this the 51-year-old CEO plans to grow the company's international business even more.
(c) 2008 Money Management Executive and SourceMedia, Inc. All Rights Reserved.