Morningstar Magazine - June/July 2017 - 9

Supporting Advisors

Over the past three decades, the landscape
has changed significantly. Many changes reflect
the practices we've long advocated for, such as
lower fees. Today, there are more investment
options to choose from than ever before. Advances
in technology have led to online advice,
putting more information at investors' fingertips.
Increased life expectancy means people
spend more years in the decumulation phase
after years of investing for retirement.
Many of these changes, even those that are
positive, mean increased complexity. Some people,
particularly those who don't see themselves
as investors, opt to sit on the sidelines rather than
try to make sense of it all. But with the
responsibility of having enough money for
a comfortable retirement or achieving other goals
resting almost entirely on individuals' shoulders,
people today need more tools, individualized
guidance, and support. Otherwise, they won't be
equipped to make smart investing decisions,
weather the market's ups and downs, and attain
financial freedom. That's where the values
financial advisors provide come in.

decisions on their behalf through our Managed
Portfolios. We're launching our Best Interest
Scorecard to aid in rollover decisions.
The past several years have seen the rise
of goals-based investing, which is a total wealth
approach that evaluates all of an investor's
goals-beyond just retirement.
We work side by side with advisors to help
them help their clients prioritize their financial
goals and determine the ideal plan to fund
them. This approach helps reduce complexity by
linking investing to things people want in
their daily lives. As you've read in these pages,
David Blanchett, Morningstar's head of retirement
research, has conducted research that highlights the tremendous value advisors provide
through financial planning. But that advice must
be in investors' best interests.
We're glad to see a fundamental global shift
toward doing what's in the best interests
of investors. Interestingly, regulations outside the
United States are ahead of U.S. efforts,
with Europe, Canada, and Australia leading the
way. In the United States, the Department

We bring simplicity to complexity, realizing that
people don't just need information-
they need it in a format that is easy for them
to understand and act on.

Our investor-focused mission is one we share
with advisors. Over time, we've evolved our
research and improved how we support advisors
to help them better serve their clients. We
started with research on individual securities and
today help advisors link investment planning
with financial planning, enabling a more holistic
experience for their clients. We help advisors
conduct portfolio analysis and make investment

a comment letter detailing our views.) While
it's difficult to anticipate the outcome, it's clear
to us that the trend of acting in the best
interests of investors is here to stay, and we're
committed to helping advisors and their
clients understand regulatory change and what
it means for the work they do every day.
Driving Change

It's humbling and gratifying to see how much
the industry has grown since 1984 and how
Morningstar has grown alongside it, responding
to and driving changes for investors, but always
guided by our mission.
Over the past 10 years, Morningstar magazine has
told the story of the things we do to put
investors first. We'll keep on making
recommendations to the industry and regulators,
creating metrics to evaluate the investor's
experience, conducting leading-edge work in
behavioral science, publishing no-holdsbarred research, helping you improve your
workflows, and encouraging others in the industry
to follow practices that are fair for investors.
In the coming years, we'll stay true to our mission
and work with you to do everything we can
to help investors create brighter futures. Thank you
for reading, and here's to the next 10 years. K
Kunal Kapoor, CFA, is the CEO of Morningstar.

of Labor last year introduced the fiduciary
rule, which urges firms to offer fee-based instead
of commission-based advice, puts additional
focus on mutual fund expenses, and encourages
firms to use financial technology to create
innovative advice solutions. The DOL is now
conducting a new examination of the fiduciary
rule in response to President Donald Trump's
February memorandum. (Morningstar submitted

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Table of Contents for the Digital Edition of Morningstar Magazine - June/July 2017
