In 2010, Ibbotson Associates launched a lifetime financial advice solution that combines annuities as part of investors’ portfolios over time for a new client in Hong Kong; expanded its target-maturity portfolio construction services to additional large-plan sponsors; incorporated an analysis of statistically unlikely (aka “fat tail”) events in its risk tolerance questionnaire; further developed global tactical asset allocation methodologies for a select number of clients; and introduced a new alternative investment strategy ETF. 

To help retirement plan sponsors meet their fiduciary duties, Ibbotson developed a website specifically for its plan sponsor consulting services. The site helps plan sponsors gather the data and informa- tion they need to meet their fiduciary responsibilities. 

We expanded our Investment Consulting business outside the United States with two acquisitions in 2010: Old Broad Street Research Ltd. in the United Kingdom and Seeds Group in France. In 2009, we acquired Intech Pty Ltd, a leading provider of multimanager and investment portfolio solutions in Sydney, Australia. We rebranded Intech under the Ibbotson name in February 2010. 

Our Investment Consulting business competes primarily with Mercer, Mesirow Financial, Russell Investments, Watson Wyatt, and Wilshire Associates, as well as some smaller firms in the retire- ment consulting business and various in-house providers of invest- ment advisory services. 

Pricing for the consulting services we provide through Morningstar Associates and Ibbotson Associates is based on the scope of work and the level of service required. In the majority of our contracts, we receive asset-based fees, reflecting our work as a portfolio construc- tion manager or subadvisor for a mutual fund or variable annuity. 

Investment Consulting was our second-largest product based on revenue in 2010 and accounted for 13.1%, 13.1%, and 15.2% of our consolidated revenue in 2010, 2009, and 2008, respectively. 

## Retirement Advice 

We have two Retirement Advice offerings that help retirement plan participants plan and invest for retirement: Morningstar Retirement Manager (offered by Morningstar Associates) and Advice by Ibbotson (offered by Ibbotson Associates). We plan to combine some of their capabilities during 2011to simplify our product lineup and offer clients the best combination of products and solutions to meet their needs. 

Morningstar Retirement Manager is designed to help retirement plan participants determine how much to invest and which invest- ments are most appropriate for their portfolios. It gives guidance explaining whether participants’ suggested plans are on target to meet their retirement goals. As part of this service, we deliver per- sonalized recommendations for a target savings goal, a recom- mended contribution rate to help achieve that goal, a portfolio mix based on risk tolerance, and specific fund recommendations. Morningstar Retirement Manager includes a managed account service designed for plan participants who choose to delegate man- agement of their portfolios to Morningstar’s investment profession- als. We offer these services both through retirement plan providers (typically third-party asset management companies that offer pro- prietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). 

In 2010, we enhanced the Retirement Manager interface to make it easier for participants to enter information. We also expanded Retirement Manager to provide advisory services to individuals who are in retirement and redesigned our personalized retirement strat- egy report to make it more engaging to participants. 

As of December 31, 2010, approximately 13.4 million plan participants had access to Morningstar Retirement Manager through approxi- mately 82,000 plan sponsors and 16 plan providers. Pricing for Morningstar Retirement Manager depends on the number of par- ticipants, as well as the level of service we provide. 

Advice by Ibbotson offers a set of services and proprietary software to give retirement plan participants access to investment education, self-service advice, and managed retirement accounts. We offer these services both through retirement plan providers and directly to plan sponsors. The platform includes installed software advice solutions that can be co-branded by retirement plan sponsors and providers. Advice by Ibbotson combines asset allocation and pat- ented human capital methodologies that help participants determine how to prepare for retirement based on their financial assets as well as their future earnings and savings power. Advice by Ibbotson’s customized software can be integrated with existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. 

