What You Get With a Morningstar Premium Subscription


Welcome to the Homepage of Morningstar.co.uk.
This is the four tutorial video which focuses on additional features offered exclusively
to premium members. The key benefits of a premium subscription are sophisticated portfolio
analysis tools such as X-Ray and Portfolio Monitor Report, access to our analysts’
opinions on stocks, funds investment trusts and ETFs and a deeper level of equity data
such as live share prices broker forecasts and director dealings. Let’s get started and
show you some of these great features. I’m going to go to the Portfolio button. This
portfolio contains a range of stocks and funds from different regions and sectors, but how
can I check if this portfolio is truly diversified. As a Premium member, you can click on the
X-Ray icon where in seconds your portfolio will be analysed, revealing the true asset
allocation and areas of potential weakness. Let’s first take a look at the geographical
spread of this portfolio. As you can see the allocation of my assets across the three key
regions is fairly balanced, but looking in more detail I can see that I only have 7.5%
exposure to Western Europe, meaning I’ll largely miss out on any investment gains in that region.
X-Ray identifies where I have investment gaps so I can choose to address them. So, now let’s
take a look at the sector spread of my portfolio. I can already see that 10% of my portfolio
is invested in companies that fall into the defensive sector, now everyone has their own
investment style, but I’m a more risk-averse investor, so I should potentially be allocating
more of my money to defensive companies an X-Ray tool has made me aware of that. If we
look closely, we can see that I only have 1% of my assets invested in utilities. So,
this is an area I might look to build up on in the future. Now you can test the impact
of your asset allocation of buying or selling an investment by adding a transaction to your
portfolio and then x-raying again to compare the results. X-Ray also collates the characteristics
of individual stock holdings, analyses your investment style and highlight any stock overlap
within funds. So, if I want to find investments that will help me balance my portfolio I want
to ensure I’m invested in the best investments in each area. As a Premium member, I’ve got
Morningstar’s entire stock and fund research team helping me out. Let’s take a quick look
at some examples of our analyst research available to premium members only. Here’s a look at
Morningstar Equity Research. We have here the page for Centrica the company that owns
British Gas. Let’s have a look at Morningstar opinion of this company. Go ahead and click
on the Morningstar research tab. I can see the Morningstar analyst long-term view on
the stock, including their investment thesis, an assessment of whether Centrica has a sustainable
competitive advantage known as economic moats, their valuation, potential risks, and management
overview. For stocks we compare analyst fair value estimate to the current market price
to allocate a star rating. One star would mean the stock is currently very expensive
in our view and five stars would indicate that it’s very cheap, while three stars shows
the market pricing is about right. So as you can see if Centrica, we have a four-star rating
here, meaning that we think it’s currently undervalued by the market. Now let’s take
a look at Morningstar Fund Research. Here is the Old Mutual U.K. Equity Fund it has
a three-star rating which is a risk adjusted measure of its performance over the past three
years. Three star implies the fund has achieved return broadly in line with category peers.
The fund also has bronze medal rating from our analyst. On a range of negative through
neutral to bronze, silver and gold, an analyst rating of bronze is a good rating and implies
we believe it will outperform peers in the long-term. Our analysts have even more conviction
in silver and gold rated funds. Let’s take a look at the research. Morningstar analysts
assess the company, the management team, investment process, past performance and price, when
setting a medal rating. Let’s head back to the portfolio page, so I can show you another
premium feature. Now what if I want to read analyst reports on my investments, track the
performance of my portfolio, understand how my asset allocation has changed and predict
the future value of my investments on a regular basis. This is where our premium portfolio
more to report comes in handy. It combines all this into a monthly print friendly PDF
document that is automatically emailed to you. To set this up simply click on the Portfolio
Monitor report button on the portfolio page. Select the portfolio, you’d like to receive
reports on, and then click on save. As the pop-up box mentions you will receive your
PDF report within the first week of every month. For now here’s an example of the Portfolio
Monitor report. As you can see the report contains the top five gainers and top five
losers within the portfolio and also projects how much a portfolio could be worth in 10,
20 and 30 years’ time and performs also an x-ray on your asset allocation. You’ll also
notice that the Portfolio Monitor report includes our analyst report for each stock and fund
you hold under our coverage. So, these are just some of the benefits of a premium subscription.
To find out more, go to the premium membership button on the Morningstar.co.uk Homepage.
You can get instant access to all the premium features when you take a free 14-day trial.
In the next video we’re going to look at Morningstar’s research a bit more closely, including analyst
opinions and how to understand Morningstar star and medal ratings.

1 comment

I am from Canada, had lot of expectations from Morningstar , but found it is not practical. What if I dont have a portfolio ! There is no help with any tutorial, as to how I can find Gold , Silver or bronze rated stocks or MF's. If I am a brand new investor, how do you expect me to have a portfolio.

Morningstar Canada needs to take some initiative in making the premium subscription have value !

eg sharpe ratio, instead of showing what is Sharpe ratio, there is a simple explanation "this is sharperatio" well, everyone knows that ! another one is beta , same….

Wake up Morningstar Canada……………

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