Morningstar adds style box to Aust equities
Morningstarhas added its style box tool to Australian equities funds rated by the group as part of an ongoing rollout of the tool in the local market.
The style box is a graphical tool which shows a fund’s investment style and market capitalisation and provides insight to fund analysis, selection, and portfolio construction according to chief executive Scott Cooley.
The style box was originally trialled across a number ofAustralian Skandiashare funds and is based on a nine-square grid which plots the fund’s investment style and market capitalisation to reveal the biases towards both that the fund holds.
The tool is being pitched at advisers and was first flagged earlier this year with a version covering international funds set for rollout in the coming months.
Further tools including a graphical feature plotting each stock in the fund's portfolio inside the style box will also be launched in the second half of this year.
"The new analysis process will allow us to compare the size and scale of stock holdings across funds and ensure a type of 'truth in advertising' regarding where they stand. It can then be used by financial planners to better construct portfolios with complementary holdings," Cooley says.
The style box tool will be available through the group’s Adviser Workstation research software and will be recalculated and republished on a quarterly basis.
The evaluations will also be linked to overall fund research, resulting in the ability to create portfolios based on underlying stock holdings.
AUTHOR
Jason Spits
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