Morningstarwill offer its proprietary Select Equity research on US stocks in the Australian market, allowing funds managers to test their in-house stock rankings and advisers to access analyst reports for due diligence on US stocks in client portfolios.
The research combines assessments of a stock’s business and management profile with industry and competitor analysis, and proprietary stock profitability, growth, business risk, and financial health ratings.
The launch of the product in Australia was prompted by domestic demand for the availability of US stock research. Select Equity includes financial data on 7000 US stocks, written reports for 1000 companies and discounted cashflow models for the 500 companies generating the most market interest.
The research will be available in different packages for financial advisers and fund managers, with the detailed discounted cashflow models useful for managers to do comparisons with their own models, according to Morningstar Australia chief executive Scott Cooley, while the adviser package includes easily accessible summaries that can be distributed to clients.
“The good thing about Select Equity research is that you can change underlying assumptions and model scenarios for what will happen in the future and that will automatically update the fair value estimate,” Cooley says.
“I think it’s helpful to provide the historical assumptions and projections and then you can tweak it to provide updated information.”
