What is Morningstar’s investment approach?


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.



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