Models & Managed Portfolios – Researching & Recommending

<p><strong>MM Intro</strong>: Hello, I am Mark McPhee. I am the Customer Success Manager dedicated for users of Morningstar&rsquo;s Adviser Research Centre.</p> <p><strong>DG Intro</strong>: And I am Deborah Graham, a Customer Success Manager supporting our users in getting more out of AdviserLogic.</p> <p><strong>MM Intro of run through</strong>: Increasingly, advisers and licensees are turning to models and managed accounts to elevate investment solutions and investment outcomes for clients. As we heard in the previous session, being armed with the right tools and expertise to build, monitor and report on models &amp; managed accounts is crucial. In this session, we&rsquo;ll take the next step, walking through some of the research and tools available to you to support investment due diligence, assessing best interests and ultimately to deliver your advice.</p> <p><strong>DG intro of run through</strong>: We will then move through to the implementation of applying model portfolios and Managed Portfolios into your advice recommendations through AdviserLogic. We will then look at how if you have a Morningstar research subscription you can download the research profiles along with the advice document.</p> <p><strong>MM</strong>: (<em>on screen</em>) Morningstar has now started to collate key data points across managed portfolios that Advisers can access on Adviser Research Centre.<br />You can start selecting for what managed portfolio you are looking for. Or start searching for different asset classes or strategy. You can then look through each of the tabs to compare key data information. Like fossil fuel involvement, recent performance or long-term performance, stock and bonds style and even risk metrics and volatility. Like all our screeners, you can export your selected investment options into a spreadsheet.</p> <p><strong>DG</strong>: Whether you are recommending a Managed Portfolio or have used Morningstar research to help build your own model portfolios, you can set these up for easy implementation into your advice strategy.</p> <p>(<em>On screen</em>)</p> <p>(<em>demo model creation &ndash; high level and SOA production recommending model in the platform</em>)</p> <p>In this example in AdviserLogic, I am creating an advice document to recommend a rollover to a new platform whilst investing in a managed portfolio.</p> <p>You can see that once I select the relevant platform, I simply select the managed portfolio I have setup in the system earlier to pull it through to the recommendation.</p> <p><br />As the advice document produces it is going to pull through the platform fees and management costs associated with the managed portfolio.</p> <p><strong>MM</strong>: (<em>in person</em>) Every decision we make at Morningstar is taken with the Investor at front of mind. Particularly with our research, where we are proud of our independence by not charging or accepting payment or commissions from fund managers or any other product issuers in relation to the services that we provide to you, nor for the production of our research generally.</p> <p>(<em>on screen</em>) In this scenario, you have been asked to provide a summary of options to invest in global equity funds. In the fund screener, you can select all the relevant Morningstar categories titled as Equity World. You can then select Research Flagship Fund to filter the list to ensure they are rated by Morningstar. This also removes any duplicated platform funds. You decide that you want to start with the Gold-rated funds that are classified as best of breed and are expected to deliver stand-out returns relative to their peers. This key Morningstar Analyst rating is our forward-looking qualitative rating. You may also want to consider a Morningstar star rating to look at the past performance of these funds against their peers. This is purely quantitative that measures the risk-adjusted returns over the last 3 years.</p> <p>You can present your fund selections and demonstrate your best interests principles with our Fund Compare tool. Here you can get all the important data metrics and present a comparison of up to 5 funds all on one page. Many advisers are using this as engagement tool that can help explain the investment options. This can also be saved as a PDF for compliance purposes or emailed to your client.</p> <p>Portfolio x-ray tool is going to help you present your overall portfolio to your clients. All the comprehensive data available across Morningstar can demonstrate all the assets across the portfolio. Make comparisons against your benchmarks and provide powerful insights into the portfolio. This is one of our most popular tools that is becoming a critical piece on delivering holistic advice to your clients.</p> <p><strong>DG</strong>: Whether you are in the Adviser Research centre or AdviserLogic you can access the portfolio x-ray tool to talk through what is inside your clients&rsquo; portfolio.</p> <p>(Demo download of SOA including research reports) Now that we have created our advice document we can proceed to download and if we have a morningstar research subscription we can opt to download our research profiles all from the one screen.</p> <p>*hit download button, and have research profiles ready to go.</p> <p>Conclusion:</p> <p><strong>MM</strong>: Whether through our Independent research, comprehensive investment data, financial planning software and user-friendly tools. Morningstar is here to partner with advisers to empower investor success.</p>