morningstar directsm cloud for wealth management release...

Morningstar DirectSM Cloud for Wealth Management January 29, 2019 1© 2019 Morningstar. All Rights Reserved.

Morningstar DirectSM Cloud for Wealth Management Release Notes January 29, 2019

OverviewThis document describes the new features and enhancements in the Morningstar DirectSM Cloud for Wealth Management, as follows:

gHow can I add a platform fee to a client account or proposal? (page 1)gHow can I see portfolio fees for a client account or proposal? (page 2)gWhat does the Historical Drawdown component show me? (page 2)gHow can I use the Historical Drawdown component? (page 3)gHow can I identify Canadian Asset Allocations? (page 6)gWhat’s new in the Morningstar Global Risk Model? (page 6)gHow can I install the latest version of the stand-alone Presentation Studio?

(page 7)g In the stand-alone Presentation Studio, how can I display GICS sector data in a

portfolio report? (page 8)g In the stand-alone Presentation Studio, what new capabilities are available in

Morningstar Global Risk Model data? (page 12)g In the stand-alone Presentation Studio, how can I display the Alternative Style

Box? (page 15)

How can I add a platform fee to a client account or proposal?

You can now add a platform fee to a client account or proposal. This fee (along with the holding fee) is then included in the total portfolio fee calculation.

A platform fee is an annual ongoing charge at the portfolio level displayed in the Holdings Analysis component and Portfolio Editor window. See How can I see portfolio fees for a client account or proposal? on page 2.

To learn how to create a platform fee, please read Working with Client Accounts.

http://advisor.morningstar.com/AWSOE/Training/WMCloud/ClientAccountsGuide.pdf#M3.8.newlink.platform

Morningstar DirectSM Cloud for Wealth Management Release Notes January 29, 2019 How can I see portfolio fees for a client account or proposal?


How can I see portfolio fees for a client account or proposal?

You can display portfolio fees in the following areas:

g the Holdings Analysis component, andg the Portfolio Editor window.

In a Client Accounts workbook, the new column set, Portfolio Fees, is available in the Holdings Analysis component. It displays the following data points:

g Total Portfolio Fee %gPlatform Fee %, andgHoldings Fee %.

This column set is also available for a client account or proposal in the Portfolio Editor window.

To learn more, read the following in Working with Client Accounts:

gDisplay portfolio fees in the Holdings Analysis component, andgDisplay portfolio fees in the Portfolio Editor window.

What does the Historical Drawdown component show me?

In an Investment Analysis workbook, the new Historical Drawdown component can help you analyze downside risk. By examining the drawdown line, you can understand the following occurrences over a selected time period:

g the number of drawdownsg the duration of each drawdown, and g the depth of each drawdown.

When working with the Historical Drawdown component, keep the following in mind:

gAt this time, it can be used only for stocks and funds with historical return data. It does not apply to portfolio objects.

g The default start date is ten years ago and the default end date is the last month end, and

gA value of 0 indicates no losses during that time.

http://advisor.morningstar.com/AWSOE/Training/WMCloud/ClientAccountsGuide.pdf#M3.8.newlink.fees-HA-cmpn

http://advisor.morningstar.com/AWSOE/Training/WMCloud/ClientAccountsGuide.pdf#M3.8.newlink.fees-EdHold

Morningstar DirectSM Cloud for Wealth Management Release Notes January 29, 2019 How can I use the Historical Drawdown component?


How can I use the Historical Drawdown component?

The Historical Drawdown component does not appear by default on any existing worksheet in any workbook.

To use the Historical Drawdown component, do the following:

1. In an Investment Analysis workbook, create a new worksheet. An untitled worksheet opens and the Component Library opens.

2. From the Component Library, drag the Grid component into the worksheet.

3. In the Component Library, scroll down to the Risk Model section. Drag the Historical Drawdown component into the worksheet to the right of the Grid.

4. At the top of the Component Library, click Done.

Click here to create a worksheet.

Drag this…

…to here.

Drag this…

…to this area.



5. On the Untitled 1 tab, click the down arrow and from the Edit Worksheet menu, select Rename.

6. Name the worksheet and click Save.

7. Select an investment with historical return values.

8. Click the Component Settings icon. The Component Settings menu opens.

Note the highlighted selections.

Initially, the component displays data for the selected investment and its benchmark.




The selections on the Component Settings menu are described in the following table:

9. After making your selections, click away from the Component Settings menu to close it.

10. To save the workbook with the worksheet you created, at the top of the window, click the workbook name and from the Workbook menu, select Save As.

11. Name the workbook and click Save.

Selection Default Submenu Options

Time Period 10 years ago to last month end

Start Date and End Date (These selections are reflected in the x-axis.)

Frequency Monthly Daily

Monthly

Benchmark By Relevancy > Best Fit

By Relevancy > Best Fit, Morningstar Category Average, and so on

User Created > Custom Benchmarks, Model Portfolios, and Policy

No Benchmark

Comparisons 0 Selected Search securities (You can select up to 8 comparisons (9, if no benchmark is selected.))

Currency US Dollar All Morningstar-supported currencies

(This selection is reflected in the y-axis.)

Return Type Default Default

Note: Some investment types map to specific return types (Default). For example, open-end funds use total returns; stocks, closed-end funds, and ETFs use market returns; and separate accounts use net returns.

Total

Market

Gross

Data View Chart Chart

Table


Morningstar DirectSM Cloud for Wealth Management Release Notes January 29, 2019 How can I identify Canadian Asset Allocations?


How can I identify Canadian Asset Allocations?

In the Allocation and Historical Allocation components, you can now change the grouping to Asset Allocation - Canada. This option is available for funds only.

What’s new in the Morningstar Global Risk Model?

In the Morningstar Global Risk Model, Ownership Risk and Ownership Popularity calculations now include data going back to 2003.

To learn more about the Morningstar Global Risk Model, read the following documents:

gMethodology: Morningstar Global Risk Model, and gMethodology: Morningstar Global Risk Model Factor Exposures.


In the Asset Allocation - Canada grouping, the column set consists of Portfolio, Benchmark, and +/-.


How can I install the latest version of the stand-alone Presentation Studio?


How can I install the latest version of the stand-alone Presentation Studio?

To access the new features in the stand-alone Presentation Studio, you need to first download and install the latest version. Do the following:

1. In the upper-left corner of your Morningstar Direct Cloud window, hover the cursor over the Menu and select Presentation Studio. The Presentation Studio page opens.

2. On the right side of the page, click the Download icon.

Click here.

Click here.


In the stand-alone Presentation Studio, how can I display GICS sector data in a portfolio report?


3. If you are prompted to save the morningstarpresentationstudiosetup.exe file, navigate to a location on your system and click Save.

4. The action required in this step depends on your browser settings. Do one of the following:

g If the file name is displayed in the download area at the bottom of the browser, click the file name and from the menu, select Open. The Install Wizard opens.

g If the file name is not displayed in the download area of the browser, navigate to the location where you saved the morningstarpresentationstudiosetup.exe file. Double-click the file to launch the Install Wizard.

5. Follow the on-screen instructions in the Install Wizard.

6. Launch the stand-alone Presentation Studio.


In a portfolio report, you can display GICS sector data in the following components:

gpie chart, and g sector exposure bar chart.

The components can display long, net, short, or long rescaled data types. The new options are available for the following portfolio objects:

gmodel portfoliosg custom benchmarks, andg client accounts.

Note: A Donut Chart cannot be displayed for a negative number or multiple portfolios.

Do not change the file name.




To see GICS data in a pie chart or sector exposure bar chart, do the following:

1. Create a report based the portfolio template (or use an existing one).

2. Select an empty cell.

3. On the Home tab, select Chart > Asset Exposure, then drag the Pie Chart or Multiple Investment Sector Exposure Chart icon into the empty cell.

In the following screenshot, both charts are shown in side-by-side cells.





4. Select the Pie Chart or Multiple Investment Sector Exposure Chart. A blue border around a component indicates it is selected.

5. At the bottom of the Presentation Studio window, click Chart Settings. The Chart Settings window opens.

Click here to open the Chart Settings window.




6. In the Chart Settings window, do the following:

g From the Data Set menu, select GICS Sector.

g (Optional) From the Position Type menu, select Net, Long, or Short.

7. In the upper-right corner of the Chart Settings window, click the X to close the window.




In the stand-alone Presentation Studio, what new capabilities are available in Morningstar Global Risk Model data?



The following new Global Risk Model components are available in the stand-alone Presentation Studio portfolio template:

gHoldings Risk Factor table, and gRisk Factor Attribution table.

Note: These components support only a single investment.

Funds eligible for the Morningstar Global Risk Model must meet the following criteria:

g The Global Fund Category is Equity.g The portfolio report date falls in the last six months, andg The fund is not a fund-of-funds.

The Holdings Risk Factor table shows a specified number of holdings and breaks down the risk factors by Portfolio Weight, Valuation, Economic Moat, and each risk factor. Initially, the table displays the 12 risk factors in the Style group.

You can display numerous risk factors. From each column heading (except Column A), select a different risk factor to display, as shown in the following example:

Here you see the default risk factors.

Click here to access Column C’s menu.

At this time, Global Equity Market is the only available Risk Model.

When you select a risk factor group from this menu…

…these options change.




The Risk Factor Attribution table shows which risk factor groups are contributing to the overall risk, and the strength or weakness of each of the following risk factor groups:

gStylegSectorgRegion, andgCurrency.

You can also display all four groups at once.

To create a Risk Factor Attribution table, do the following:

1. Create a report based the portfolio, workbook, or factsheet template (or use an existing one).

2. Select an empty cell. A blue outline around the cell indicates it’s selected.

3. On the Home tab, select Table > Risk Model, then drag the Risk Factor Attribution icon into the empty cell.





4. With the Risk Factor Attribution table selected, at the bottom of the Presentation Studio window, click Table Settings. The Table Settings window opens.

5. (Optional) In the Table Settings window, from the Display Group menu, select an alternate grouping.

Click here to open the Table Settings window.



In the stand-alone Presentation Studio, how can I display the Alternative Style Box?


6. In the upper-right corner of the Chart Settings window, click the X to close the window.

In the following example, you see that holdings in Developed Asia Pacific have the highest Active Exposure.


In a Presentation Studio report on a managed alternative fund or funds, you can now display the Alternative Style Box. The following data displays in the Alternative Style Box:

gAlternative Style Factor Correlation (the y-axis)gAlternative Style Factor Relative Volatility (the x-axis), andgAlternative Style Box Index.

The Alternative Style Box is available in only Factsheet or Workbook reports.

To display the Alternative Style Box, do the following:

1. Create a report based on a Workbook or Factsheet template (or use an existing one).

2. Select an empty cell. A blue outline around the cell indicates it’s selected.

3. On the Home tab, select Chart > Style Analysis, then drag the Morningstar Style Box icon into the empty cell.

Note the highlighted selection.






4. With the Morningstar Style Box selected, at the bottom of the window, click Chart Settings. The Chart Settings window opens.

5. From the Data menu, select Alternative Overall Style.

The blue outline indicates the component is selected.

Click here to open the Chart Settings window.





6. In the upper-right corner of the Chart Settings window, click the X to close it.

The Style Box reflects the data shown here.

Alternative Style Factor Relative Volatility

Alternative Style Factor Correlation

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