Advisor Workstation - Investment and Portfolio Planning

U.S.A.

Morningstar® Advisor Workstation
Modular investment research and portfolio analysis platform.


		Overview


		Clients & Portfolios Module


		Research Module


		Planning Module


		Hypotheticals Module


		Defined Contribution Module


		Real-Time Module


		Analyst Research Center


		Integration Capabilities


		Client Support Services

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Planning Module

The Planning Module in Morningstar® Advisor
Workstation

allows advisors to tailor investment strategies for each client and run simulations to forecast the results. An intuitive step-by-step process helps advisors generate FINRA-reviewed proposals based on each client’s goals, current holdings, and risk tolerance. An efficient frontier curve indicates maximum expected return for any level of risk. Illustrating possible outcomes, Monte Carlo simulations show clients how different strategies might succeed and why certain recommendations will get them closer to their goals.

What you can do:

Determine each client’s risk tolerance

	Assess a client’s investment approach with a risk questionnaire
	Establish an accurate risk profile for each client

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The Planning Module’s risk-tolerance questionnaire is the foundation that helps advisors construct suitable portfolios for each client. A client’s risk profile is automatically matched with an appropriate asset allocation model. Firms can modify the risk-tolerance questionnaire or Morningstar’s standard asset allocation models to meet their investment policies.

Set goals and asset allocations

	Plan for each client’s specific investment goals
	Evaluate the asset allocation of a client’s current portfolio
	Use risk tolerance results to determine a target allocation
	Select a strategy and asset allocation on the efficient frontier curve

After identifying a client’s attitudes about risk, advisors can create a customized plan that accounts for multiple investment goals. The Planning Module evaluates a client’s current portfolio, then applies the newly determined risk profile to propose a target allocation. Powered by Ibbotson’s mean-variance optimization methodology, the Planning Module helps advisors verify whether their proposed portfolios offer the maximum potential return for the risk involved. Advisors can select an appropriate strategy and asset allocation along the efficient frontier curve based on a client’s risk tolerance and goals.

Construct portfolios

	Choose a firm-defined model portfolio
	Create a custom portfolio by selecting investments

Once the appropriate asset allocation is set, the Planning Module offers several options for implementing a portfolio. Advisors can select an approved model portfolio, or they can build a custom portfolio from a list of the firm’s or their own preferred investments.

Forecast results

	Run Monte Carlo simulations
	Illustrate the probability of a portfolio’s success

Forecasting capabilities in the Planning Module allow advisors to test their investment ideas before recommending them to clients. Monte Carlo simulations, supported by Ibbotson’s capital market assumptions, also act as effective tools in communicating possible outcomes to clients.

Create client proposals

	Select the FINRA-reviewed reports to include
	Save proposals as PDF files

When it’s time to present recommendations to clients, advisors can quickly generate an Investment Policy Statement, Wealth Report, or Portfolio Comparison Report that captures and communicates the results of their planning. The reports distill complex information such as asset mixes, investment styles, and stock sector exposure into easy-to-understand summaries and side-by-side comparisons for investors.

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