Morningstar EnCorr For Pensions, Endowments, and Foundations

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

Related Products

Morningstar Direct

Morningstar Data for Funds and Stocks

Morningstar Ibbotson Conference

Ibbotson Associates

Morningstar EnCorr for Pensions, Endowments, and Foundations

Corporations with defined benefit plans, endowments, foundations, public plans, or Taft-Hartley plans, need to implement an investment strategy to meet their liability needs. The advanced optimization capabilities in Morningstar® EnCorr® include surplus optimization, also known as liability modeling, to help account for the risk and return of both the assets and liabilities of a portfolio. Pensions, endowments, and foundations without an in-house staff use EnCorr to better prepare for meetings with their investment consultants.

What you can do:

Build allocation strategies on sound 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 historical index data strengthen both inputs and forecasts. EnCorr builds and tests asset allocation strategies through extensive investment, index, and market data, including Ibbotson® SBBI® asset class data from 1926 to the present. Investors at pensions, endowments, and foundations can define their own capital market assumptions, built from their choice of trusted expected returns methodologies such as the Ibbotson building blocks and Black-Litterman models.

More about optimization and forecasting in EnCorr

Optimize asset allocation strategies for plans

	Identify the best balance of risk and return
	Run surplus optimizations to account for assets and liabilities
	Apply risk budgeting to tactical asset allocations
	Forecast whether a plan will be overfunded or underfunded

EnCorr’s advanced optimizer integrates a proprietary resampling methodology that helps investors at pensions, endowments, and foundations create more diversified portfolios than traditional mean-variance optimization (MVO). It also offers surplus optimization, or liability modeling. Surplus optimization in EnCorr allows investors to take into account both the asset and liability returns, where liabilities act as a fixed short position. For tactical asset allocation, a risk budgeting feature reveals the percent risk each asset contributes to the overall risk, represented in easy-to-interpret graphs.

More about the about the importance of resampling in EnCorr

Implement an asset allocation strategy

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

After developing an optimal asset allocation strategy, investors at pensions, endowments, and foundations use EnCorr to select investments and implement their recommendations. Pulling data from Morningstar’s extensive investment coverage of mutual funds, separate accounts, exchange-traded funds, and more, investors 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.

More about implementing portfolios with EnCorr

More about available data in EnCorr