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Morningstar, Inc. To Acquire Trx Investment Portfolio Rebalancing Platform For Advisors

The following excerpt is from the company's SEC filing.

CHICAGO, Oct. 8, 2015Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has entered into a definitive agreement to acquire Total Rebalance Expert (tRx), an automated, tax-efficient investment portfolio rebalancing platform for financial advisors, from FNA, LLC. Morningstar expects to complete the transaction in November 2015. Terms were not disclosed.

Sheryl Rowling, CEO of FNA and principal of independent advisory firm Rowling & Associates, created tRx in 2008 when she couldnt find an affordable, tax-efficient, easy-to-use rebalancing system for her own practice. Tod ay, more than 500 financial advisors from 175 firms rely on tRx to rebalance more than $20 billion in client assets. tRx streamlines the rebalancing process for advisors and automates the complexities involved in rebalancing and managing portfolios. Advisors can use the software to more easily minimize taxes, harvest losses, and rebalance at the account or household level. They can also use the tool to show clients, in dollars and cents, how much they saved them in taxes.

Tricia Rothschild, head of global advisor solutions for Morningstar, said, For 25 years, Morningstar has worked alongside independent advisors to help them build portfolios for investors and bring efficiency to their practices. Were excited to acquire tRx because it adds a key capabilitytax-aware rebalancingto our suite of offerings. Advisors choose Morningstar because we support virtually all of the jobs they do, including client acquisition and profiling, building and analyzing portfolios across all of their clients assets through our ByAllAccounts aggregation service, and communicating performance. With tRx, well integrate an increasingly important part of the advisor workflow: seamless and automated portfolio rebalancing.

In June 2015, Morningstar announced it was integrating the tRx rebalancing capabilities into Morningstar Office

, the companys practice and portfolio management system used by more than 4,000 independent financial advisors.

As we began to work together, both firms liked what we saw and realized that it made sense for Morningstar to acquire tRx, Rowling said. Morningstar has the resources to take tRx to the next...


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