U.S.A.
Morningstar Office
All-inclusive advisor portfolio management software.
Overview
Practice Management
Portfolio Management and Performance Reporting
Client Management
Investment Planning
Investment Research
Reporting and Document Management
Back Office Services
Integration Capabilities
Morningstar for Advisors iPad App
Investment Planning
The investment planning feature of Morningstar Office offers an easy and effective way to develop appropriate portfolios and present them to clients. Combining Ibbotson’s capital market assumptions with Morningstar’s easy-to-use interface, this integrated system helps identify and test target allocations, present recommendations, and implement portfolio changes. Its straightforward step-by-step process supported by robust methodologies presents a clearer picture of a client’s potential wealth. Before and after scenarios, expressed through customizable reports, make a compelling case for investment recommendations.
What you can do:
Assess a client’s current situation and risk tolerance
Define a client’s risk tolerance through the Morningstar Risk Questionnaire
Determine a client’s current asset allocation
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Client information and accounts are accessible through Morningstar Office—there’s no need to re-enter data. A client’s current portfolio becomes the starting point for assessment. The planning module quickly identifies the actual asset allocation for this portfolio based on the underlying securities held in its managed accounts. Clients complete a simple questionnaire that helps advisors determine their risk tolerance.
Create an efficient frontier graph
Identify the optimal portfolio diversification for any given risk level
Use the default Ibbotson assumptions or incorporate new assumptions
Include custom asset classes
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Using the Ibbotson market assumptions or an advisor’s custom assumptions, the planning feature creates an efficient frontier graph. This graph clearly indicates a client’s current portfolio allocation and where it could have a more optimal diversification. The client’s risk tolerance is also displayed on the curve to help advisors build the optimal target portfolio. Advisors can create a custom glide path for their clients by selecting target allocations that adjust risk tolerance at different points in the client’s life.
Compare current and target portfolio allocations
Select a target asset mix
View and assess beside a current portfolio
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After calculating the most efficient allocation for a client’s risk tolerance, advisors can assemble a side-by-side comparison of the current, selected, and target portfolios, making it easy to see the benefits of asset allocation.
Run Monte Carlo simulations
Test target allocations with Monte Carlo simulations
Base inputs on default or custom assumptions
Forecast a portfolio’s expected returns
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Before presenting recommendations to clients, advisors can test target allocations with Monte Carlo simulations to illustrate a target portfolio’s potential for growth compared to a current portfolio. Advanced Monte Carlo capabilities produce simulations that forecast expected wealth for a particular allocation based on a client’s specific cash flows, tax burden, and time horizon. Running multiple scenarios helps advisors refine their plans by adjusting factors such as inflation, taxes, ongoing savings rate, and retirement needs. Scenarios can include inputs based on default or custom assumptions for asset class performance.
Optimize a client’s portfolio
Create a portfolio using a select list of securities
Use the auto-allocate feature to apply this list of securities to the target portfolio
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Advisors can import a list of securities from a saved list of favorites and then use the auto-allocate feature to create a new portfolio. The new portfolio will closely reflect the target allocation and will be optimized by minimizing the tracking error. Advisors may also specify the proposed portfolio by selecting a model portfolio or by directly entering weights for each security. The allocation process may be run individually for each client account or at an aggregated level.
Create an action plan
Produce customizable PDF reports
Present easy-to-understand plans to clients
Implement the target portfolio
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Advisors can make a compelling case by presenting their plan as "before and after" scenarios with client-ready reports. These reports show the current and proposed allocations along with recommendations of which holdings to buy or sell. The customizable Investment Policy Statement explains the proposed changes and the assumptions used to forecast wealth in a PDF document. When a client agrees to a plan, advisors can implement the portfolio changes and manage the account using the portfolio accounting system.
Take Action
Schedule a Sales Appointment
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See It Work
Watch a Product Demonstration
Sample Reports
Product Tutorials
Proof
Client Stories
Learn More
Product Fact Sheets
Brochures
Methodology Documents
Video Overview
Customer Support
Technical Requirements
Training
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