Morningstar offers US stock research in Australia
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.”
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
