AWS Support Resources

We’re quickly approaching “silly time” as I’ve heard some people refer to it – that time of year when Christmas lunches, Christmas drinks and snowy weather all start to take priority over the day-to-day of the business. It’s tough scheduling meetings, coordinating schedules and keeping on task when nobody is around to answer your calls or emails! So if you have some downtime this holiday season and you want to start preparing for the rush of the new year – or if you’re really ambitious, for ISA season – here are some things you can do in Morningstar to make your life easier come 2011.

A few months ago I helped an Adviser Workstation user setup about 20 custom fund searches that he now uses to review his fund panels. Global fixed income, emerging markets, north american equity, UK gilts, etc, etc. He can now access all funds within these various sectors with the click of one button. And with one more click he can view the top performers, the highest rated, the highest yielding or the cheapest ones in each sector. If you do your own research and you have not done this yet, call me, I will do it for you!

We have recently added a whole raft of new import templates so if you use any of the following platforms or wraps you can import all your clients’ portfolios into Morningstar in one go:

• Transact
• Nucleus
• Raymond James
• Ascentric
• Novia
• Fidelity Funds Network
• Cofunds

Once imported you will have immediate access to analytical reports and charting functions that you can use to illustrate the makeup of a client’s investments. If you use another platform, let us know and we can build a template for you – you’ll just need an Excel download from the platform. For a quick demo video of the import process, click here.

Another new feature to the system allows you to create report templates and schedule their automatic generation for a group, or all, of your clients. This allows you to produce, for example, an X Ray report for every single client, automatically, as often as you want. The setup of this takes between 5 and 10 minutes and can save literally hours in report generation. Just login once the scheduled reports have been generated and you will find all the reports in their own folder within the Reports tab.

For clients that prefer communication via email (this number is growing) you can now setup clients with access to the Morningstar web portal. Take 30 minutes and enter the email address of each of these clients in the web portal setup area. Click here for a video demo. Then when your reports are automatically generated you can simply post them to the web portal for instant delivery to the client. The client then receives and email and link to login and securely view their report online. This is not only a huge time saver but something that can add real value to a service proposition.

I hope you find these tips useful and I hope they save you time in the new year. Now go get some mulled wine and mince pie before they’re all gone! Happy Holidays!

Posted in: Morningstar,

Morningstar and BrightTalk are teaming up for another online investor summit – this time the topic is Emerging Markets. Morningstar’s Robin Johnson, CFA and Senior Investment Consultant, will be discussing the diversification attributes of emerging market debt. Several other leaders in asset management will also weigh in on their areas of expertise – from emerging market property investing to opportunities the future may bring for the sector. For more information or to register for one of the various discussions click here.

Posted in: Events, IFA News and Commentary, Morningstar,

Morningstar.co.uk today announced the results of our first exchange-traded funds survey. We spent six months quizzing professional and individual investors about their attitude towards, understanding of and experience in ETFs, and will be asking the same questions at six-month intervals to build up a picture of how this relatively new asset class is being used and viewed by UK investors over time.

Over 1,000 investors responded to our first survey, 15% of which were professional and 85% individuals, and we were surprised to see few surprises in the results.

Exchange-traded funds are known for their low costs but trading too often can quickly turn this low cost into a high one—something we had feared some investors may have been unsuspectingly tempted into. Instead, it seems that current ETF investors are not using them for fast-trading, risky bets, but instead as longer-term allocations to overweight a specific sector, country, or inflation protection.

Overall, the number of individual investors and advisers across Europe who use ETFs is still extremely low, and of those who remain wary of this asset class our survey revealed more education is in high demand.

Of professional investors who are unsure whether they want to invest in ETFs, 67% cited a lack of information about exchange-traded funds as the primary reason for their caution. Among individual investors, it was an incredible 77%.

Having trawled through the data and analysed the results, Morningstar’s associate director of European ETF research, Bradley Kay, commented that there is a stark split between respondents who are in need of more information about ETFs and those already familiar and the product’s key features. “Even among active investors, we found ETFs are being used in quite a passive way, for example to overweight in a particular asset class and with infrequent trading thereafter.”

We’re certainly encouraged to see that investors are already putting ETFs to sensible use in their portfolios, but— as expected — there’s an ongoing need for further information and education…something Morningstar is only too happy to accommodate!

If you’d like to know more, you can download the synopsis of our first ETF survey results here, and participate in the second ETF survey here.

Posted in: IFA News and Commentary, Morningstar, Research,

One of the inspirations for this blog came from the many conversations I have with advisers everyday and the challenges advisers face in operating a profitable business, finding enough time in the day, and staying within regulatory guidelines that seem to always be changing.

We have been able to help many clients overcome these challenges so this blog is a way of sharing those ideas and solutions with others.

One example of this was Peter A. Sudlow, Principal of Sapienter Wealth Management who came to us wanting to streamline his bi-annual review process. It normally took him the better part of a month to gather all the statements, do all the calculations and produce the client reports.

We managed to help Peter import his clients’ past transactions from the platform into the Adviser Workstation. Once imported, he had the full suite of analytical and performance reporting tools at his disposal. Some quick construction of performance report templates in the system and he’s able to produce better quality reports in less than half the time.

His next time bi-annual review period is likely to be even quicker as he works out the best way to implement this new process. So with a little investment in time our client has been able to add significant value for his clients in terms of the quality of reports provided and he has freed up more of his time to spend with those clients or perhaps potential clients.

If you are in need of a more efficient process or a way to justify fees to clients it may take an investment of time to learn something new. Many advisers I speak with just can’t spare the time. But the ones that have found an hour here or an hour there to learn something new or to implement a new process, they have quickly seen the return on their investment.

Over the next 5 weeks I will be sharing more examples like the one above. Hopefully you can benefit from them. Hopefully they spark some of your own ideas. If you have any to share, please do. If you’re looking for help, please let us know!

Posted in: IFA News and Commentary, Morningstar,

How rigorous is your client reporting? Do clients value the work you and your staff put into reports? Do they help justify your fees?

One ironic thing I have learned is there is no standard for client reporting amongst IFAs. Some firms produce beautiful output for clients. Some firms simply do not. Why the disparity?

Based on the conversations I’ve had, it depends on the resources available to the adviser, the process that’s in place and the clients who will end up reading (hopefully) the reports. A good combination of the first two may allow a business to service clients that otherwise would not be profitable.

I’ve heard a lot of talk of RDR pushing people towards the banks because normal folks won’t be able to afford an independent adviser. But if an adviser has an efficient process in place that provides automatic report generation and cheaper operating costs, suddenly a lot more people become potential clients.

So is the level of reporting you provide a chore, or an opportunity to demonstrate value to clients?

Client segmentation has been another popular issue. For some clients a simple, compliant report does the job. But for more discerning clients, the value is in the attention to detail. If clients are to pay fees, the quality of information their adviser provides surely plays into the value of those fees.

If your current reporting process is setting you apart from the competition, you are ahead of the curve. If you, or your back office staff, are toiling over spreadsheets and collating documents from 8 different places, it doesn’t have to be that difficult. Consider a process that anyone can follow and make it consistent so clients become familiar with your review process. Consider each client and provide an appropriate level of detail – which will lead to easier segmentation of your client base. And consider the educational value of the reports for your clients because an educated client (usually) makes better decisions.

Producing high quality reports and analysis for clients can be a huge opportunity to add value and distinguish your service. If you’re in need of improving this aspect of your business Morningstar can help. If you’re proud of your client service please feel free to share in the comments below.

Posted in: IFA News and Commentary, Morningstar,

In addition to security data and quantitative analysis, Adviser Workstation provides access to Morningstar and OBSR Qualitative fund ratings and reports. To access qualitative fund ratings and analystreports, follow the steps in this short video.

Posted in: Morningstar, Training Videos,

We are very pleased to announce that Jackie Beard, former director of UK fund research, will now head-up Morningstar’s investment trust research in the UK.

If you have attended an Adviser User Forum in the past you’ll remember Jackie and her razor sharp wit when discussing fund ratings and analysis.

Leaning on her 12 years of experience in the UK fund management industry, Jackie’s goal is to increase advisers’ awareness and understanding of investment trusts through a research-focused effort. We see a huge need for more independent investment trust research, especially considering many advisers will need knowledge of the “whole-of-market” come 2013.

Jackie and her team will be joining us at future Adviser User Forums to discuss their research initiatives and how investment trusts might fit into client portfolios. I would highly recommend attending if you are able to make one of these events. For further information, please find a copy of the press release in entirety here.

Posted in: Morningstar, Press Releases,

With summer in full swing I’m wondering if advisers are taking this time to get out and see more clients and prospects or are you re-evaluating any processes to see if you can improve the way you do things or add value to your service?

It would seem to me that this isn’t the busiest time of year, at least not for our clients, so how do you approach a slower period? If you’re in the office reading this it means you’re not in Spain, Italy or the South of France. Are you catching up or re-tooling?

I have had some clients in for training recently who are keen to start automating more processes in their offices and they’re looking to Adviser Workstation to help them. Importing client portfolios from wraps has been a very hot topic.

I have helped our clients import portfolios from Transact, Nucleus and Advent and we will be adding additional platform templates in September to make it easier for more advisers to import portfolios into Adviser Workstation. If you’re not using the import facility yet, why not? What can we do to help?

Evaluating a current investment process also seems to be something many of our clients are doing this summer. Is the current process compliant? Is it consistent? Does it produce results?

I know we have had these discussions this summer so we’re hoping there are some good ideas being considered and some self assessment taking place.

It is pretty easy to get caught up in the hum of business as usual during the year so a little reflexion and re-assessment can go a long way.

If you have time this summer to re-evaluate some aspects of your business, give us a call or send us an email – we would be happy to help. I guarantee there are things the system can do to help you add value, save time and mitigate risk.

Posted in: IFA News and Commentary, Morningstar,

When it’s actually an equities fund.

This may seem rather obvious; however, it does address a common misconception that we at Morningstar have come across when discussing our approach to fund research with IFAs.

As many advisers have begun to add commodities exposure to their clients’ portfolios, a number have turned to the BlackRock Gold and General fund to provide the commodities piece of their asset allocation puzzle. The only problem is it’s not invested in commodities – it’s certainly not a gold fund – it’s not even a precious metals fund – and this is where the misconception lies.

An analysis of the complete holdings of the BlackRock Gold and General fund shows a portfolio full of shares in mining operations and companies whose business is the procurement of precious metals and natural resources.

No where in the holdings will you find actual gold bullion, silver bars, or sacks of diamonds. You won’t even find derivatives of these physical assets which artificially replicate the market prices of commodities.

The fund’s own objective even states an aim “to achieve long-term capital growth by investing in gold, mining and precious metal related shares.” The key here being “related shares.”

Commodities and equities are two different asset classes. They perform differently in various market conditions and they are subject to their own unique risks. And we at Morningstar think this is a critical piece of information for IFAs and investors.

So why the misconception? Why do some IFAs and investors consider this fund a play on physical commodities when it is actually an equities fund.

Surely, nobody is arguing with the fund’s impressive returns to investors – Morningstar included. Our analysts have given this fund an “Elite” rating, and looking at the Morningstar Qualitative Report for the BlackRock Gold and General Fund, there is plenty for investors to like.

In response to a client query, I recently discussed this report with Jackie Beard, now Morningstar’s Director of Investment Trust Research, and author of the report.

She noted several references to the fund’s rigorous approach to company analysis, the importance of good management at those companies and the type of companies in which the fund invests. She also added the fact that the fund even falls within the “Equity Sector Precious Metals” Morningstar Category for open-end funds.

But many IFAs see this as “a gold fund” or a way of diversifying a client’s portfolio with commodities. I have had several conversations with our Adviser Workstation clients who question our analysis of this fund and expect to see it as the commodities component in a portfolio.

Along the same line, I have also had this conversation about property funds and the difference between a fund that owns actual property and a fund that invests in the shares of real estate companies.

Both types of investments – owning physical assets and owning shares in the companies with exposure to those assets – have their own merit in a portfolio, but it’s important for investors to understand the difference.

Jackie’s comments were in response to an IFA who wanted some clarification of Morningstar’s classification of this fund as equities rather than commodities. She went to considerable length to provide a comprehensive answer to this question because it illustrates such a common misconception and is at the core of Morningstar’s value proposition to IFAs in terms of fund research.

Jackie also reached out to Malcolm Smith, Product Specialist for the BlackRock Gold and General Fund, to get BlackRock’s take on the question of commodities vs. equities and where their fund sits.

Mr. Smith, who was kind enough to provide a very prompt response, had this to say: “You have to remember it’s a gold equities fund with exposure to gold. We believe in the superior fundamentals that equities will outperform the gold price. Morningstar is right to have it in the equities category as that’s precisely what it holds.”

We relish these kinds of questions because it shows our clients are digging deeper and trying to fully understand the investments they recommend.

It illustrates the need for transparency and how access to quality data and analysis helps advisers make better investing decisions. Morningstar has grown on this principle and we feel there is much we can do in the UK to foster better understanding and further the interests of investors.

We always welcome a healthy debate and I look forward to similar conversations with our clients in the future.

Posted in: Morningstar, Research,

While David Cameron and Nick Clegg ironed out the details of their coalition government, Morningstar held its annual investment conference across the Thames from the Houses of Parliament at the Park Plaza Riverbank Hotel. This year marked the 4th annual conference and we again welcomed several thought provoking presenters and healthy debate from delegates. Morningstar’s own Holly Cook (from morningstar.co.uk fame) took the liberty of blogging throughout each of the presentations. If you were able to attend, I hope the event was informative and stimulating. If you weren’t able to attend and you would like to see what all the buzz is about, please see Holly’s posts for day 1 and day 2 of the conference below:

Day 1 and  Day 2.

Next year’s conference is likely to be the same time of year so please contact Morningstar if you would like to attend. Further details of next year’s conference should be available later in 2010.

Posted in: Events, Morningstar,