Morningstar Investment Services LLC (Chicago)

Name: Morningstar Investment Services LLC
Address: 22 West Washington Street, Chicago, IL, 60602 1605
Telephone: 312-696-6000

Morningstar Investment Services LLC is a large advisory firm based in Chicago. It manages $10.6 billion of regulatory assets for 71,406 client accounts. It has been registered with the SEC as an adviser since 2016 and has operated in the jurisdictions of Alabama, Alaska, Arizona, and 49 other states.

Morningstar Investment Services provides portfolio management for individuals and small businesses, portfolio management for businesses and institutional clients, and selection of other advisers. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

Morningstar Investment Services: assets under management

The assets under management (AUM) of Morningstar Investment Services LLC is $10.6 billion, all of which is managed in discretionary accounts. The firm's AUM has grown by 56% since the beginning of its operation, and $1.13 million of the total AUM is attributable to clients outside of the United States.

The firm manages $10.6 billion in discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $148.41 thousand each.

Morningstar Investment Services has custody of $210.95 million in cash and securities for 878 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in investment and business development companies the most. They account for 69% of the total AUM. The second-largest asset type is exchange traded securities, which make up 27% of the firm’s portfolio. Investments in cash and cash equivalents form 4% of the total invested assets.

Fees & Commissions

The advisory firm has a single stream of revenue. Clients pay Morningstar Investment Services LLC for their services and products based on a percentage of assets under management. Compensation based on assets under management promotes a long-term relationship between a client and the adviser and helps align mutual interests. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Daniel Needham serves?

The firm provides services to individuals, charitable organizations, high net worth individuals, corporations or other businesses, and pension and profit sharing plans. The largest group of clients of Daniel Needham is individuals with 56,045 clients and $9.22 billion of assets under management. Among the 11 most similar advisory firms, Morningstar Investment Services has the highest percentage of individuals out of all clients.

The amount of regulatory assets under management is $10.59 billion for 57,176 clients that can include trusts, estates, and 401(k) plans and IRAs of individuals and their family members. None of the firm’s clients are foreign persons or businesses.

Morningstar Investment Services doesn't advise any private funds.

Careers at Morningstar Investment Services LLC

The company employs 31 people that are either part- or full-time employees. No employees work as investment advisers or researchers. 19 employees are registered as investment adviser representatives with the state securities authorities.

There are 10 people with the role of looking for and bringing in new clients on behalf of the firm. The firm compensates employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Daniel Needham has been acting as President since 1 Apr 2015. Lori Ann Loftus joined the executive team most recently as the Chief Compliance Officer, Secretary.

Direct owners and executive officers

Name	Entity	Date acquired	Ownership	Employer ID
Donald Scott Schilling	Chief compliance officer/finop/secretary	1 Dec 2000	Other	2659998
Peter John Dugery	Vice president	1 Apr 2015	Other	2740986
Daniel Needham	President	1 Apr 2015	Other	6462438
Matthew Joseph Radgowski	Executive vice president and treasurer	1 Apr 2015	Other	2510172
Scott Allen Wentsel	Vice president	1 Apr 2015	Other	1667497
Morningstar Investment Management Llc	Sole member	1 Dec 2015	75% - 100%	108031
Lori Ann Loftus	Chief compliance officer, secretary	1 Nov 2018	Other	4649994

Indirect Owners

The SEC currently registers 2 indirect owners.

Name	Entity	Date acquired	Ownership	Employer ID
Joseph Daniel Mansueto	Shareholder	1 Apr 1984	50% - 75%	4470721
Inc. Morningstar	Sole member	1 Dec 2015	75% - 100%	36-3297908

Based in Chicago

The principal office where Morningstar Investment Services LLC performs its advisory services is located at 22 West Washington Street, Chicago, IL 60602 1605, which is also the mailing address of the firm. An additional office of the firm is in Haverford, PA. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 312-696-6000 or by fax 312-696-6630. The normal business hours are 8:00am - 6:00pm on Monday - Friday. You can find more information about the New York firm at mis.morningstar.com.