In 2010, Ibbotson Associates expanded its target-maturity portfolio  construction service with several additional plan sponsors. Ibbotson  also integrated its Lifetime Advice Methodology into a new advisory  wrap program for advisors and institutions. The program offers fund  selection, asset allocation, and product allocation advice (including  life insurance, immediate payout annuities, and tax-deferred annu- ities with guaranteed minimum withdrawal benefits). In addition, Ibbotson added new capabilities to the Ibbotson Wealth  Forecasting Engine and the Advice by Ibbotson program to quanti- tatively determine the best investment choice among pre-tax  deferred accounts, post-tax deferred accounts, and taxable accounts.  For example, Ibbotson can now advise an investor to invest in a  Roth 401(k) account versus a pre-tax 401(k) account. It also enhanced  the Ibbotson Wealth Forecasting Engine to accommodate the local  United Kingdom tax code, pension rules, mortality expectations,  and regulatory rules. As of December 31, 2010, approximately 10.1million plan participants  had access to Advice by Ibbotson through approximately 68,000  plan sponsors and seven plan providers. Pricing for Advice by  Ibbotson depends on the number of participants, as well as the level  of service we provide. In the retirement advice market, we compete primarily with Financial  Engines, Guided Choice, and ProManage. The Morningstar Managed Portfolios program is offered through  Morningstar Investment Services, Inc., a registered investment advi- sor, registered broker-dealer, member of the Financial Industry  Regulatory Authority, Inc. (FINRA), and wholly owned subsidiary of  Morningstar, Inc. Morningstar Managed Portfolios is a fee-based discretionary asset  management service that includes a series of mutual fund, ETF, and  stock portfolios tailored to meet specific investment time horizons and risk levels. This program is only available through financial  advisors. Our team of investment professionals uses a disciplined  process for asset allocation, fund selection, and portfolio construc- tion. They actively monitor the portfolios and make adjustments as needed. We complement these asset management services with online client-management functions such as risk profiling and access to client statements, transaction capabilities, and performance reports. We promote our print, software, web-based products and services,  and consulting services with a staff of sales and marketing profes- sionals, as well as an in-house public relations team. Our marketing  staff includes both product specialists and a corporate marketing  group that manages company initiatives. Our sales team includes  several strategic account managers who oversee all aspects of our  largest institutional client relationships. We also have a sales  operations staff, which focuses on tracking and forecasting sales  and other tasks to support our sales team. Across our business, we  emphasize high levels of product support to help our customers use  our products effectively and provide our product managers with  feedback from customers. We had approximately 520 sales and  marketing professionals on staff as of December 31, 2010. For Morningstar Managed Portfolios, our primary competitors are  Brinker Capital, Envestnet PMC, FundQuest, SEI Investments, and  Symmetry Partners. In 2010, Morningstar Investment Services introduced a new Strategist  Series portfolio designed to track the Morningstar Wide Moat Focus  Index. The portfolio invests in the 20 most undervalued “wide moat”  stocks in Morningstar’s coverage universe. Morningstar Investment  Services also added a Client Review Packet feature, a Roth IRA  Conversion Calculator, and re-engineered its client risk-profiling  questionnaire and recommendations engine. We had approximately $2.7 billion in assets under management  with about 2,100 financial advisors using the service as of December  31, 2010. We charge asset-based fees for Morningstar Managed  Portfolios. The management fee is based on a tiered schedule that  depends on the client’s average daily portfolio balance. Fees for our  mutual fund and exchange-traded fund portfolios generally range  from 30 to 40 basis points. We charge 55 basis points for the Select  Stock Baskets, which are a managed account service consisting of  individually customized stock portfolios based on Morningstar’s  proprietary indexes and independent equity research. Marketing and Sales Morningstar Managed Portfolios Morningstar, Inc. 2010 Annual Report 41