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Morningstar, Inc.
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==== ''Workplace/retirement'' ==== In the U.S., 401(k) retirement plans and other types of defined-contribution (DC) plans, such as 403(b) plans and the Thrift Savings Plan, are the dominant retirement plan offered by employers. According to the Investment Company Institute, there were $10.4 trillion in assets in DC plans at end of the third quarter of 2021, compared to $3.7 trillion in private-sector defined benefit (DB) plans and $7.6 trillion in government DB plans. Although DC plans help millions of workers in the U.S. save for retirement, the industry continues to struggle to boost employee savings rates, to make it easier for companies to offer retirement plans, and to increase access to high-quality investment line-ups. Morningstar believes that a significant market exists for offerings, such as its managed retirement accounts offering, that are designed to address these shortcomings by providing personalized advice that helps individuals build assets for retirement and beyond. Currently, Morningstar's focus is the U.S. market, because it continues to demonstrate healthy growth. In addition, many of its offerings are not easily adapted to foreign markets due to significant differences in regulatory frameworks that govern retirement saving and investing. Morningstar's core retirement products (managed retirement accounts, fiduciary services, and custom models) primarily reach individual investors through employers (plan sponsors) that offer DC plans for their employees. As of December 31, 2021, Morningstar served 71 retirement service providers and registered investment advisors (RIAs), representing about 297,000 retirement plans. The company can work directly with plan sponsors to help them design a suitable retirement program, but more typically, Morningstar distributes its retirement services through retirement plan providers that package its advice and investment line-ups with administrative and recordkeeping services. Over the past two years, Morningstar has expanded its distribution network to include retirement plan advisors and asset managers and currently offer three advisor-focused services. The first, Morningstar Plan Advantage, is a practice-management platform that helps advisors to build and manage their retirement plans. That service is currently used by two large broker dealers and has data integrations with 25 recordkeepers. The second service, advisor managed accounts (AMA), enables advisors and asset managers to offer a version of managed accounts that incorporates their firmβs investment allocation philosophies and branding. Morningstar also can now offer managed accounts that sit within an IRA product offered by the RIA or recordkeeper. It currently has 10 recordkeepers signed onto the AMA platform with 15 RIAs and one asset management firm offering it. The third is a service that enables asset managers to offer personalized target-date funds using our methodologies, technology, and recordkeeper data connections. These personal target-date funds enable employees in a retirement plan to receive a blended target-date fund based on several data points, including age, salary, savings rate, and account balance.
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