Morningstar is wrapping up new business for its managed accounts program at a fast pace. The fund is on a pace that will push the product over the line to profitability earlier than expected, according to industry sources.

The latest firms to add the service which is offered by Morningstar Investment Services were Jefferson Pilot Securities and Lara, Shull & May, Ltd., said Tom Florence, president of Morningstar Investment Services,

The Morningstar Managed Portfolios product is aimed at leveraging the Chicago fund trackers' brand with intermediaries and fund investors in the fee-based arena. The program offers all of the bells and whistles of managed accounts. It also market Morningstar's first foray into investment management.

Executives at firms considering the platform have told MutualFundWire.com that Morningstar is gathering impressive distribution for its new platform for a first time player in the investment industry. The Chicago-based firm needs some 6,000 advisors to use the service to reach break even and is well on the pace, says one source.

The key for Morningstar is the brand name it built as an independent provider of fund information. What will be interesting to watch is what happens as the service grows.  

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