Morningstar EnCorr For Consultants and Wealth Managers

U.S.A.

Morningstar® EnCorr®
Capital markets research and asset allocation modeling.


		Overview


		Who Uses EnCorr


		Asset Allocation


		Portfolio Implementation


		Resampling Benefits


		Charts and Reports


		Data Sets and Investment Types

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Morningstar EnCorr for Consultants and Wealth Managers

Investment consultants and wealth managers working at family offices, pension plans, or in trust departments develop and implement asset allocation strategies for clients with Morningstar® EnCorr®. After identifying a client’s needs, they use EnCorr to develop an investment policy that meets these goals while considering liabilities and constraints. Advanced optimization capabilities and opportunities to test various scenarios help consultants and wealth managers make sure they’ve selected the best strategy for preserving and growing their clients’ assets.

What you can do:

Start with appropriate inputs

	Tap into extensive index, capital markets, and investment data
	Develop and test capital market assumptions
	Choose from multiple expected returns models

Timely investment and index data strengthen both inputs and forecasts. Consultants and wealth managers can define their own capital market assumptions, built from their choice of expected returns methodologies including the Ibbotson building blocks and Black-Litterman models. Research teams have the option to distribute rights-protected versions of their capital market assumptions to colleagues.

More about optimization and forecasting in EnCorr

Optimize asset allocation strategies for clients

	Identify the best balance of risk and return
	Run surplus optimizations to account for assets and liabilities
	Simulate wealth forecasts and market changes

EnCorr’s advanced optimizer integrates a proprietary resampling methodology that helps consultants and wealth managers create more diversified portfolios than traditional mean-variance optimization (MVO). It also offers surplus optimization, or liability modeling, used to consider the risk and return of portfolios with a built-in liability, such as a pension plan. Wealth forecasting and “what if” scenario testing help consultants and wealth managers validate their plans. Users can apply log-stable distribution assumptions to wealth forecasting calculations or returns forecast histograms for more realistic projections.

More about the importance of resampled optimizations in EnCorr

Implement asset allocation strategies

	Conduct performance, peer, and style analysis
	Designate the optimal manager mix while minimizing tracking error
	Tap into Morningstar’s extensive investment database
	Generate charts and graphs to present to clients

After developing an optimal asset allocation strategy, consultants and wealth managers use EnCorr to select investments and implement their recommendations. Pulling data from Morningstar’s extensive investment coverage, users can analyze an investment’s style and performance, either by itself or as compared to a peer group. An allocator tool searches for an optimal manager mix to match an asset allocation while minimizing tracking error. When presenting their recommendations to clients, consultants and wealth managers use EnCorr’s pre-formatted or custom reports, which seamlessly integrate with Microsoft® PowerPoint®, Excel®, and Word®.

More about implementing portfolios with EnCorr

More about reporting options

Learn how Morningstar EnCorr is helping consultants and wealth managers