2010 10-K: Part I 38 On the surveillance side, Realpoint has one of the industry’s largest  databases of commercial mortgage-backed securities, including  ratings and analysis on more than 10,000 CMBS securities and the  loans and properties securing them. Realpoint publishes DealView  credit reports on more than 600 CMBS transactions and updates  its analysis and forecasts monthly. Key competitors for the Morningstar Indexes include BarCap Bond, Dow Jones, Markit, MSCI, Russell Investments, and Standard  & Poor’s. In late 2010, Realpoint began the process of building a team of  market experts to develop a presence in residential mortgage-backed  securities (RMBS)—an area with significantly higher underlying  collateral than the CMBS market. This team has built the foundation  for modeling expected loss for RMBS, and we expect to bring a  surveillance product to the RMBS market in 2011. Realpoint competes with several other firms, including DBRS, Fitch,  Moody’s, and Standard & Poor’s. Realpoint primarily charges license-based fees for CMBS surveil- lance ratings and analysis, which are paid for by the user. For new- issue ratings, it charges asset-based fees that are paid by the issuer  on the rated balance of the transaction. We offer an extensive set of investment indexes that can be used  to benchmark the market and create investment products. Our index  family includes a series of U.S. equity indexes that track the U.S.  market by capitalization, sector, and investment style; a dividend  index; a focused stock index capturing performance of “wide moat”  stocks with the most attractive valuations; a series of bond indexes  that track the U.S. market by sector and term structure; global bond  and equity indexes; commodity indexes; and asset allocation indexes.  Investment firms can license the Morningstar Indexes to create  investment vehicles, including mutual funds, ETFs, and derivative  securities. We charge licensing fees for the Morningstar Indexes,  with fees consisting of an annual licensing fee as well as fees linked  to assets under management. We currently license the Morningstar Indexes to several institutions  that offer exchange-traded funds or exchange-traded notes based  on the indexes, including BlackRock, First Trust, HSBC, Merrill Lynch  (a subsidiary of Bank of America), and Scottrade. In 2010, we introduced new indexes focusing on futures, com- modities, sector and industry groups, and master limited partnerships.  We believe we’re the only index provider that offers indexes span- ning all asset categories, which allows us to develop indexes that  blend various asset classes. For Morningstar Managed Portfolios, our target audience consists  of home offices of insurance companies, broker-dealers, and regis- tered investment advisors, as well as independent financial advisors. Many of our largest customers are insurance companies, including  variable annuity providers, followed by mutual fund companies and  other asset management firms, retirement plan sponsors and provid- ers, broker-dealers, and banks. We plan to develop additional dis- tribution channels to reach other client types, including foundations  and endowments, defined contribution plans, defined benefit plans,  and wealth management firms. We also expect to continue expand- ing our Investment Management business outside the United States. About 14.2% of Investment Management segment revenue was  from outside the United States in 2010. Our client base in this segment includes banks, brokerage firms,  insurance companies, mutual fund companies, and retirement plan  sponsors and providers. We currently offer investment management  services in the United States, Europe, Asia, and Australia. Our license  agreements in the Investment Management segment have an aver- age contract term of approximately three years, although some of  our agreements allow for early termination. The largest products and services in this segment based on revenue  are Investment Consulting, which focuses on investment monitoring  and asset allocation for funds of funds, including mutual funds and  variable annuities; Retirement Advice, including the Morningstar  Retirement Manager and Advice by Ibbotson platforms; and  Morningstar Managed Portfolios, a fee-based discretionary asset  management service that includes a series of mutual fund, exchange- traded fund, and stock portfolios tailored to meet a range of invest- ment time horizons and risk levels that financial advisors can use  for their clients’ taxable and tax-deferred accounts. Investment Management Segment Morningstar Indexes