content_image/272191.jpg content_image/272192.jpg
Total assets under advisement for Investment Consulting as of December 31, 2009 declined approximately 7.3% compared with December 31, 2008, as assets under advisement from Morningstar Associates declined 27.4%, which was partially offset by assets under advisement from Ibbotson Associates, which increased about 9.0%. The majority of the asset decline in 2009 reflects the loss of one of the contracts discussed above, partially offset by positive market performance, and, to a lesser extent, from net inflows and new client wins in assets under advisement. 

We cannot separately quantify cash inflows and outflows for these portfolios because we do not have custody of the assets in the majority of our investment management business. The information we receive from our clients does not separately identify the impact of cash inflows and outflows on asset balances for each period. We also cannot precisely quantify the impact of market appreciation or depreciation because the majority of our clients have discretionary authority to implement their own portfolio allocations. 

## Assets under Management for Managed Retirement Accounts 

<img src='content_image/272191.jpg'>

Assets under management for Retirement Advice increased to $19.6 billion as of December 31, 2010, compared with $15.7 billion as of December 31, 2009 and $11.0 billion as of December 31, 2008. 

We cannot separately quantify the factors affecting assets under management for our managed retirement accounts. These factors primarily consist of employer and employee contributions, plan administrative fees, market movements, and participant loans and hardship withdrawals. We cannot quantify the impact of these other factors because the information we receive from the plan providers does not separately identify these transactions or the changes in balances due to market movement. 

The tables below show the breakdown of retirement plan participants who had access to the services offered through Morningstar Retirement Manager and Advice by Ibbotson, as well as the number of plan sponsors and plan providers that provide this access. 

<img src='content_image/272192.jpg'>

## Morningstar Managed Portfolios 

Morningstar Managed Portfolios also contributed to the segment’s revenue increase in 2010, although to a lesser extent than Retirement Advice. The higher revenue mainly reflects higher average asset levels during 2010 compared with 2009. Assets under management for Morningstar Managed Portfolios were $2.7 billion as of December 31, 2010 compared with $2.1 billion as of December 31, 2009 and $1.6 billion as of December 31, 2008, reflecting positive equity mar- ket returns and net inflows. 

## Operating Income 

In 2010, operating income for the Investment Management segment increased $3.9 million, or 7.4%, as revenue increased more than operating expense. In contrast, 2009 operating income declined $7.5 million, or 12.4%, as reductions in operating expense were not sufficient enough to outweigh the revenue decline. 

In 2010, operating expense in this segment rose $14.1 million, or 35.8%, after declining $11.9 million, or 23.2%, in 2009. Approximately 40% of the segment’s operating expense increase reflects recent acquisitions. Higher salaries and incentive compensation, including 

