Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Morningstar runs the numbers

Lex Hall  |  09 Sep 2019Text size  Decrease  Increase  |  
Email to Friend

We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended 6 September.

8 to 12

The number of stocks in the new Magellan High Conviction Strategy. Holdings include Microsoft, Apple, Berkshire Hathaway, Visa, HCA Healthcare, Alphabet, LVMH and Starbucks. Unlike Magellan’s flagship fund, this strategy doesn’t have hard limits on aggregate portfolio risk but instead manages drawdown risk by allowing up to 50 per cent to be held in cash. The manager’s track record on this strategy since its inception is strong, but it hasn’t been tested in a bear market.


Morningstar’s fair value estimate for Afterpay Touch Group.The buy now, pay later company has gone from to $2.95 when it first listed in June 2017 to more than $33 today. Yet Morningstar analyst Chanaka Gunasekera says it’s overvalued. High operating leverage, business risks and increasing competition are among the reasons Gunasekera assigns the company a no-moat, high-uncertainty rating.

4 per cent

That’s the amount of the companies on the ASX 200 that are both undervalued and carry an “exemplary” stewardship, according to a Morningstar survey. Stewardship boils down to how a company’s managers behave on behalf of shareholders, writes Lex Hall. In short, how they use the money/capital they have at their disposal to create value for shareholders. The four names that are undervalued and carry an exemplary stewardship rating are Ansell, Domino’s Pizza, Challenger and Iluka Resources.


The special dividend paid by wide-moat company ASX, writes Emma Rapaport. Morningstar's wide moat stocks didn't shoot the lights out this earnings season, but they at least did well enough to defy global volatility and roundly meet expectations. A substantial jump in retail spending helped Auckland International Airport offset slowing growth in international traffic, while Wesfarmers was rescued by its powerhouse hardware chain Bunnings. The ASX dividend followed the sale of its IRESS shareholding.

82 per cent

Morningstar's Australian Fund Equity Mid/Small Blend category has outperformed its benchmark over 82 per cent of rolling 3-year periods going back to 1993, notes Morningstar’s Michael Malseed. His preference among global small-cap managers leans towards those with large global teams with multiple local presences, like silver-rated Lazard Global Small Companies, or systematic approaches that look to extract the small-cap premium while diversifying away stock-specific risks, such as silver-rated Dimensional Global Small Companies Trust.

Most popular articles

Top videos


Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass


is senior editor for Morningstar Australia

© 2022 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

Email To Friend