Back in April 2010 OBSR, which stands for Old Broad Street Research, was acquired by American firm Morningstar through its UK subsidiary.
From today OBSR has also formally retired its AAA, AA and A rating scale and adopted the Morningstar Analyst Rating scale, iconography and naming convention, as previously announced.
The scale has three positive ratings – gold, silver or bronze – in addition to neutral and negative ratings.
Richard Romer-Lee, co-founder of OBSR and recently-appointed MD of Morningstar’s European investment consulting business, said: "Independence has always been a hallmark of both OBSR and Morningstar fund ratings. Under the new brand the combined UK research team continues to base its fund ratings and reports on our analysts’ conviction of a fund’s ability to meet its objectives and outperform on a risk-adjusted basis, over the long term. Our independent business model and commitment to high-quality fund research is as strong as ever."
In a speech to clients at an unveiling event for the new brand in St Paul’s Cathedral last night, Romer-Lee said some had questioned the motive and wisdom behind OBSR merging with Morningstar a couple of years ago.
He explained that without such a move OBSR would have had limited ability to expand its operations and that through the partnership with Morningstar each firm had benefited from the other’s strengths.
Geoff Balzano, CEO of Morningstar UK, said: "Morningstar OBSR draws on the broader resources of Morningstar in the areas of strategic allocation, investment planning, technology and high-quality data.
"In turn our UK business is now stronger because of OBSR’s fund research and consultancy. Together we have the ability to support the needs of clients across the entire investment process."
Romer-Lee and his co-founder Nigel Whittingham committed to staying on at the merged company for a minimum of three years after the acquisition. They are now two years into that period.
The logo for the new brand reads Morningstar/OBSR, but analysts have reportedly been briefed that it is a "silent forward slash" to avoid confusion.
