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  • All of Morningstar Next portfolios are built holistically using our unique investing approach.

    Each Morningstar portfolio is constructed using a multi-stage process. This means each portfolio draws on our deep global expertise in asset allocation, investment research and portfolio construction.

    We focus on three key activities:

    1. Smarter, active asset allocation

    We actively manage your money. This means we only invest in an asset class, industry or company if it makes sense to do so considering the risk and rewards on offer. We believe this helps you to achieve better long-term returns than wholly passive alternatives like exchange-traded funds (ETFs) or Index funds.

    2. Cost effective and holistic implementation

    We pick smart and cost-effective ways to implement our insights. We use a combination of direct holdings (stocks), exchange traded funds (ETFs), and specialist fund managers to build the best possible portfolio.

    3. Aligned with people, not markets

    We ignore market noise. We don’t get hung up about keeping pace with an index. Instead, we strive to focus on what matters to investors-preserving and growing their savings. We design each portfolio to keep pace with inflation – the yearly rise in the cost of living – plus an additional target based on the risk you’re willing to bear.


  • Yes. The portfolios have been running since 30 June 2012 and each has an excellent track record.

    The Cautious portfolio has returned average annual returns of 4.89% per year since inception until May 2018.

    The Balanced portfolio has returned average annual returns of 6.83% per year since inception until May 2018.

    The Growth portfolio has returned average annual returns of 8.50% per year since inception until May 2018.

    Remember though, that past performance isn’t a reliable indicator of future performance.

    Model performance displayed is calculated after ongoing fees (ad hoc or event specific fees, are excluded) and before tax. Investment performance assumes all income received is reinvested. An individual’s performance will differ from the modelled performance depending on factors such as transaction timing, actual management fees, whether income is reinvested and any divergence from model portfolio weighting.


  • Confident, time-rich investors could build, manage and construct a portfolio themselves, and they’d likely avoid some of the fees associated with investing with Morningstar Next.

    For many people though, the hassle and stress of selecting, managing and monitoring their investments isn’t worth the small saving. Instead, these investors prefer to invest their time elsewhere. Other investors simply don’t possess an interest in or aptitude for managing an investment portfolio themselves.

    By choosing Morningstar Next investors are able to partner with Morningstar’s experienced and talented investment team, enabling them to invest on their behalf.


  • We offer three portfolio options to give investors enough choice to meet a variety of needs without being overwhelming.

    We may add more portfolios over time. We welcome feedback. Please contact Client Support on support@morningstar.com.au or call 1800 316 544.


  • The three portfolios have different objectives, provide different potential returns and best suit different timeframes and goals.

    The Cautious portfolio is the least risky, being most focused on cash and bonds (which make up around 70% of the portfolio), whereas the Growth portfolio is more focused on achieving higher long-term returns by investing in more shares and property (which make up around 70% of the portfolio), which brings with it a higher level of risk. The Balanced portfolio sits between the two offering a mix of both more growth-focused assets such as shares and property and lower risk assets such as cash and bonds.

    Explore the Our Portfolios page to learn more, and if you still have questions please get in touch with Client Support at support@morningstar.com.au or 1800 316 544.


  • A range of assets, including cash, direct shares, exchange traded funds (ETFs), in-house managed funds and specialist funds from around the world.

    You can see a complete list of recent holdings for each portfolio on the Our Portfolios page under ‘What’s in this portfolio?’


  • Each portfolio is diversified, offering a mix of Australian and international shares, bonds, and exchange-traded funds (ETFs) as well as cash, infrastructure, and property. See the Our Portfolios page for the complete list of recent holdings of each portfolio.


  • Yes, Morningstar Next could help you build wealth over time to use in retirement. Review our model portfolios and select the one that resonates with you and your goals.

     


  • As a general rule we recommend paying down expensive consumer debt (such as credit cards and personal loans) and saving an emergency fund (of approximately 3-6 months worth of regular expenses) before considering an investment product such as Morningstar Next. However, each person’s circumstances will vary, so please consider you own circumstances before investing.


  • Significantly. Each of our portfolios is designed with a different of combination of growth and defensive assets so that you can pick the one that suits your situation best. You can read through the ‘What are the risks?’ section of Our Portfolios for more information.


  • No. These portfolios are ready-made by our investment team.


  • Morningstar Next allows you to simply and easily invest in a diversified investment portfolio that suits your risk profile and time horizon. This can typically be done online.

    Morningstar Next’s portfolios are managed by Morningstar’s investment team, which monitors and adjusts each portfolio as we find opportunities.


  • Successful investing is incredibly tough. Morningstar’s investment approach is bold, effective and trusted by millions of investors with over $260bn in assets under advisement and management worldwide as of 31 December 2016.

    Our unique and powerful guiding principles drive every investment decision we make:

    • We put investors first
      • Firms that put investors first win in the long term because their investors win. Putting investors’ interests above all else is the foundation of Morningstar. We align our interests with investors, and remain committed to helping them achieve better outcomes.
    • We’re independent-minded
      • To deliver results it’s necessary to invest with conviction, even when it means standing apart from the crowd. Our research shows that making decisions based on fundamental analysis, rather than short-term factors helps deliver better long-term investment results. We’re not afraid to take a contrarian view when our research supports it.
    • We invest for the long term
      • Taking a patient, long-term view helps us ride out the market’s ups and downs and take advantage of opportunities when they arise. While returns may fluctuate widely from year to year, holding assets for longer periods of time helps reduce risk significantly.
    • We’re valuation-driven investors
      • Anchoring decisions to an investment’s fair value–or what it’s worth–leads to greater potential for returns. Our valuation-driven approach is designed to help investors get more than what they’re paying for. In selecting an investment, we seek to apply a ‘margin of safety’–knowing what we think an investment is worth and getting it for a discounted price.
    • We take a fundamental approach
      • Powerful research is behind each view we hold, and we understand what drives every investment we make. It’s important to understand the fundamental drivers of all investments owned. An investment’s price may tell you little about its fair value. Instead, we focus on research into the cash flows and other potential benefits of ownership to drive investment decisions.
    • We strive to minimise costs
      • Controlling costs helps investors build wealth by keeping more of what they earn. Investment returns are uncertain, but costs are not. Lower costs allow investors to keep more of their returns. Fees, transaction costs and taxes reduce the compounding benefits of investing, and it’s important to minimise them whenever possible.
    • We build portfolios holistically
      • To help manage risk and deliver better returns, truly diversified portfolios combine investments with different underlying drivers. Portfolios should be more than the sum of their parts. True diversification can have a powerful impact on a portfolio’s risk-adjusted returns–but simply holding more investments isn’t the same as true diversification. That’s why we recognise the importance of taking a holistic approach to building portfolios. We look at the fundamentals of each underlying investment to determine what’s driving their cash flows and to assess how each might interact under varying market conditions.

     

    This smarter approach has helped each of Morningstar Next’s portfolios outperform their return targets since inception. Remember though, that past performance isn’t a reliable indicator of future performance.


  • The portfolios are managed by Morningstar’s investment management team led by Andrew Lill, Chief Investment Officer, Asia Pacific. Andrew brings 22 years of global experience to his role. He’s passionate about our value-based investing approach. Andrew ensures that decisions about each portfolio are driven not by sentiment, but by deep independent research.

    Our local investment management team of 22 brings together over 225 collective years of investing experience. We partner with our global colleagues in Chicago and London to deliver a truly global perspective to managing and selecting investments.


  • No. All investments come with risks and you can potentially lose money. We have designed a tool utilising Morningstar’s Wealth Forecasting engine that helps you better understand your potential forecast returns after taking into account fees, tax and inflation, see Our Portfolios page. Remember though, forecast returns are not a prediction.


  • Every investment has risks, and Morningstar Next is no different. Each portfolio offers a varying level of risk to suit your situation.

    The Cautious portfolio, for example, offers the lowest risk of our three options, containing 70% defensive assets such as bonds and cash. The Balanced portfolio offers an even mix of defensive assets (like cash and bonds) and growth assets like shares. The Growth portfolio is the most aggressive of our three selections, containing around 30% defensive assets such as cash and bonds and is therefore has the highest level of risk of the three portfolios.

    Learn more about each portfolio here.


  • Risk management is a key part of our investment management process.

    We mitigate risk and deliver returns by designing our portfolios holistically for the long term. This means we assess how each inclusion in the portfolio impacts the existing portfolio. We focus on aiming to deliver the best returns for a given level of risk.

    To understand the complete list of risks associated with investing in Morningstar Next please see the Product Disclosure Statement.


  • No. Rather than focus on just one asset class, each portfolio is designed holistically and invested across multiple asset classes.


  • Once we’ve selected where to invest each portfolio we pick the most appropriate investment vehicle. This may mean buying direct shares, investing in a fund or using exchange traded funds (ETFs).

    For our international exposure we often use ETFs as they offer low costs and are available through the separately managed account (SMA) structure. The portfolios also may invest in international equities via Morningstar’s own international-focused managed fund.


  • To build the best possible portfolios, where relevant, we use select in-house funds to get exposure to assets and opportunities not available through the ASX.

    Where we use our own funds, we provide them at cost to investors. That is, we do not charge fees twice.

    If you require a broader range of models or funds, we recommend you see a financial adviser.


  • Each Morningstar portfolio is constructed using a multi-stage process. Each portfolio draws on our deep global expertise in asset allocation, investment research and portfolio construction.

    We focus on three key activities:

    1. Smarter, active asset allocation

    We actively manage your money. This means we only invest in an asset class, industry or company if it makes sense to do so considering the risk and rewards on offer. We believe this helps you to achieve better long-term returns than wholly passive alternatives like exchange-traded funds (ETFs) or Index funds.

    2. Cost-effective and holistic implementation

    We pick smart and cost-effective ways to implement our insights. We use a combination of direct holdings (stocks), exchange traded funds (ETFs), and specialist fund managers to build the best possible portfolio.

    3. Aligned with people, not markets

    We ignore market noise. We don’t get hung up about keeping pace with an index. Instead, we strive to focus on what matters to investors–preserving and growing their savings. We design each portfolio to keep pace with inflation–the yearly rise in the cost of living–plus an additional target based on the risk you’re willing to bear.


  • Morningstar was founded in 1984 to give everyone the same investing insights that were previously reserved for finance professionals. We have a proud history of advocating for investors’ rights. Our intent has always been to help people like you find a brighter future.

    We have a 33-year track record, over 5000 staff and offices in 27 countries–including Australia since 1999. We are trusted by millions of investors with $260bn in assets under advisement and management worldwide as at 31 December 2016.


  • Yes, Morningstar Investment Management Australia Ltd operates under AFS Licence No. 228986 to provide a range of investment products and financial advice. Our affiliate, Morningstar Australasia Pty Ltd also operates AFS Licence No. 240892 to provide investment research and general financial advice.


  • Yes. If you’d like to stay up to date with financial markets and dive deeper into specific investments you can visit morningstar.com.au to read our independent research, available via subscription (4 week free trial of the service is available).


  • No, we do not currently offer a superannuation product.


  • Yes. Morningstar Next, Morningstar and the product issuer and responsible entity, Praemium Australia Ltd are required to comply with regulation that is administered and enforced by the Australian Securities and Investments Commission (ASIC).


  • In the unlikely event that Morningstar ceases operations all of your investments would be held in your custodial account and be readily accessible to you.


  • You can sign up to by clicking the Invest Now button at the top of this page.


  • All you need to get started is some basic personal details and the BSB and account number of an Australian bank account.


  • It only takes a few minutes to sign up and for most people can be done completely online here.


  • By law we have to verify your identity to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.


  • If we have been unable to verify your ID online please email Client Support on support@morningstar.com.au and we will assist you in making other arrangements to verify your identification.


  • Your bank account details are required to make your initial investment (unless you choose to invest via BPAY) and withdraw your monthly contributions, if you choose to make them. The same bank account is used to pay you any income from your investment and to return your funds when you divest.


  • We’ve made investing easy. After you sign up, and make your initial investment, your account is invested and we’ll manage it for you. No further action is required. Each year you will receive a tax statement which can be used when you fill out your tax return.

    We will occasionally get in touch with interesting information, but you can always opt out if you’d prefer. Even if you opt out, we may still get in touch with important information such as legal or operational updates.


  • You can withdraw your money at any time.

    A 14-day cooling off period is also available. During this time you can contact us at support@morningstar.com.au or call 1800 316 544 to request a refund. The 14-day period begins either at the time your investment is confirmed by us or on the 5th business day after your account is activated, whichever is earliest. Irrespective of whether you choose to be paid in cash or by having the individual investments returned to you, the value of your investment is likely to have changed over the period due to market movements. For this reason, depending upon the circumstances, the amount returned to you may be greater or less than the amount you initially invested.


  • Yes, Morningstar Next is available for all types of SMSFs. All applications can be started online. For further information, please contact Client Support at support@morningstar.com.au or 1800 316 544.


  • No, Morningstar receives no compensation from our partners. Details of how we are paid can be found in our Financial Services Guide.


  • We’ve partnered with industry leaders to help deliver a great product, including:

    • Praemium Australia Limited (Praemium)
      • We’ve partnered with Praemium to administer your account. Praemium are the issuer and responsible entity of the product. Praemium are a market-leading provider of investment platforms, servicing over 300,000 accounts and representing over $95 billion in funds. Read more here.
    • Vix Verify
      • Vix Verify is a top provider of electronic identity verification. Through their greenID service, they were the first private organisation to access the Australian Federal Government Document Verification Service. Read more here.

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