Research Insights
Why did ANZ buy Suncorp Bank?
Senior Equity Analyst for Banking, Nathan Zaia, on the ANZ-Suncorp deal.
Read more | 5 min read
Research Insights
Our view of mining shares
Mining analyst Jon Mills discusses his new report - Industry Pulse on Mining for Q2 2024.
Read more | 7 min read
Behavioural science
The Psychology of Retirement Income: From Saving to Spending

Are you lost in the retirement consumption puzzle?
Read more | 6 min read
ESG
Global Sustainable Fund Flows: Q2 2024 in Review
Recovery continues in Europe, but redemptions persist in other parts of the world.
Read more | 10 min read
Retirement
Why the Government will continue to target super and the pension

An aging population will drive policy decisions.
Read more | 6 min read
Reporting Season
‘Tis the season to avoid folly
Having been through over 50 earnings seasons, here are three ways I recommend long-term investors to cut through the noise and make the most of this bi-annual bedlam.
Read more
Investing Trends
VIDEO: Top opportunities in the Aussie tech and AI space
Morningstar's Michael Malseed interviews First Sentier's Dawn Kanelleas and Maple-Brown Abbott's Phil Hudak.
Read more | 7 min read
Housing & you
Australian housing is twice as expensive as the US
Here’s how Australia stacks up against seven other developed countries.
Read more | 7 min read
Investing basics
Invest in equities until you reach our sleeping point

Benjamin Graham wrote that everyone should hold between 25% and 75% in equities, with the rest in bonds. The right level is the point where you sleep easy.
Read more | 5 min read
Behavioural science
The psychological shift from saving to spending in retirement

Why do people have trouble shifting from a saving to spending mindset in retirement? Researchers have plenty of theories though can't identify an exact cause, nevertheless there are things that can enable the shift.
Read more | 5 min read
Investing basics
Using financials to find interesting stocks
Ideas and business investment opportunities often present themselves as numbers.
Read more | 5 min read
Investing Trends
Video: The bull market in commodities may be just starting
Read more | 8 min read
Research Insights
Video: Are Guzman's growth targets realistic?
Read more | 7 min read
Investing Trends
Stock markets can do well despite inflation
Stocks can do well in inflationary periods, particularly companies with strong pricing power and reasonable financial leverage.
Read more | 6 min read
The Big Picture
An investor's take on the Budget
Near-term economic outlook points to subtrend revenue growth.
Read more | 6 min read
The finance industry
Challenges confronting the mega funds
There’s been barely any questions asked about how the size of the super funds is essentially forcing them to diversify further into alternative and international assets, and the risks that this entails.
Read more | 6 min read
Investing Trends
Our top mining pick
Morningstar Analyst Jon Mills on his top pick.
Read more | 3 min read
Investing basicsInvesting Trends
Our view of Australian Banks
Our latest banking industry pulse explored the state of the industry.
Read more | 4 min read
Retirement
The challenges of retirement aren’t just financial
Moynes, a former educator and financial adviser, wrote the short book after his own struggles in retirement and subsequent interviews with other retirees. He believes that there’s a predictable and identifiable pattern to retirement, and it involves four phases:
Read more | 5 min read
The Big Picture
If the US economy sneezes, will Australia catch a cold?
At the start of 2024, a stronger-than-expected run of economic data has unsettled markets, with concerns inflation is proving stickier than expected.
Read more | 6 min read
Investing basics
Building portfolios using quantitative signals
James Gruber chats with Andrew Francis and David Walsh from RQI Investors.
Read more | 6 min read
Investing basics
Wisdom from a career in markets
Morningstar Head of Equity Research Peter Warnes reflects on a 61 year career.
Read more | 10 min read
Research Insights
Infrastructure boom or bust?

Growing population and wealth will create both demand for greater and improved infrastructure capacity.
Read more | 7 min read
Investing Trends
Why LICs may be close to bottoming
Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.
Read more | 6 min read
Investing basics
Boosting the magic of compounding—Berkshire has a way
We at Morningstar are indebted to the Berkshire dynamic duo, for the way we think about the sources of durable competitive advantages.
Read more | 8 min read
Reporting Season
Earnings season wrap: Challenges for retailers
Two retailers look expensive to our analysts.
Read more | 5 min read
Reporting Season
Earnings Season Wrap: Our view of CBA earnings
Results were strong but are they enough to make the shares attractive?
Read more | 4 min read
Investing Trends
4 Warren Buffett shares to buy after Berkshire Hathaway’s latest regulatory filing
Warren Buffett’s Berkshire Hathaway BRK.A has released its fourth-quarter 2023 13F. The report indicates that Berkshire wasn’t a big buyer of stocks last quarter.
Read more | 5 min read
The finance industry
Are markets broken?
If passive investors are crowding into the large cap stocks that dominate indices, and active investors are mimicking them to keep up with performance benchmarks, it’s logical that the reverse can happen too.
Read more | 6 min read
The Big Picture
The last mile could be more difficult, as the certainty shies at the final hurdle

The CPI report finally puts a nail in the coffin for a March cut and places in jeopardy a cut in May.
Read more | 7 min read
The Big Picture
Laying the cards on the table

Welcome to 2024. Like all other years it’s sure to be interesting, but perhaps even more so as we prepare for an over-hyped and rare soft landing.
Read more | 9 min read
Investing basics
UniSuper CIO John Pearce on why the 60/40 portfolio is far from dead
The $130 Billion SuperFund Manager also talks about how he sees risk, his recent investments, and why history isn’t a good guide to the future.
Read more | 7 min read
Investing Trends
Seeking opportunities in global emerging companies
Founder and CIO Ned Bell gives an insight into how the Morningstar medalist fund manager uncovers growing but sustainable businesses and shares some stocks picks in the portfolio.
Read more | 11 min read
The finance industry
Diversified Fund Managers Versus Boutique Large-Cap Australian Equity Managers A brief overview of the last 15 years.
In this paper we review those managers in our database that have offered a broad-based Australian equity fund for a minimum of 15 years.
Read more | 7 min read
Research Insights
2024 themes for investors

Morningstar’s 2024 Outlook report names three swing factors that may result in a wider range of outcomes.
Read more | 3 min read
The Big Picture
[Video] Central banks have won the war on inflation
Inflation will head back towards central bank targets of 2-3% in the US and Australia over the next 12 months, according to bond manager, Pimco.
Read more | 2 min read
Investing Trends
[Video] How are investors approaching the markets
nabtrade’s Gemma Dale provides a snapshot into how investors are positioning their portfolios in a challenged investment environment.
Read more | 2 min read
ESG
Carbon Offsets vs. Carbon Credits: What's the Difference?
Carbon offsets often get conflated with another instrument that shares a similar name: carbon credits. Both are the subject of increasing interest from investment firms.
Read more | 4 min read
Investing basics
Weighting for the opportunity
Know the index weightings of different markets around the world. It not only reveals the key sectoral influences on each market, but serves as a useful roadmap on where to look for desired industry exposure.
Read more | 5 min read
Inside Morningstar
Morningstar Medalist Rating Supplement - Phase 3
This article provides important detail for “Phase 3” of the Morningstar Medalist Rating rollout. Please refer to the updates on “Phases 1 and 2”.
Read more | 3 min read
The Big Picture
Rate cuts – Don’t hold your breath

Unless there is a significant black swan event, investors should factor in interest rates and bond yields sitting around the long-term averages.
Read more | 5 min read
The Big Picture
[Video] Australian Equity Market Outlook Webinar
Peter Warnes provides an Economic and Market Outlook, and Adrian Atkins discusses Market Valuations and Top Stock Picks.
Read more | 32 min read
Top stories
[Video] China's economic slowdown: Impact on commodity markets and investment opportunities
Morningstar's John Mills explores how China's economic slowdown is affecting commodity markets and discusses possible investment opportunities in this dynamic landscape.
Read more | 3 min read
The Big Picture
Dovish Fed speak eases some concerns, but term premia likely to remain elevated

While the market digested the jobs report, Fed speakers suggested recent surge in bond yields, tightening credit conditions may mean central bank less likely to hike.
Read more | 8 min read
Investing basics
Assessing Private-Market Opportunities
Using traditional fund assessment methods in private markets.
Read more | 6 min read
Research Insights
Do Good Things Come in Small-Cap Packages?
A look at small- and large-cap index returns in the Australian market.
Read more | 6 min read
Investing basics
[VIDEO] Company highlights and lowlights from reporting season
Morningstar analysts assess winners and losers from sectors including mining and energy.
Read more | 3 min read
Research Insights
Webinar: Key Ratings Changes and Insights in Global Equities
Read more | 45 min read
Research Insights
Superannuation Survey: June 2023
In this quarter's Morningstar Superannuation Survey, we looked at 291 options (including MySuper and Choice options, excluding Transition to Retirement options) across our superannuation categories.
Read more | 4 min read
ESG
Sustainable Investing Flows Landscape for Australasian Fund Investors Q2 2023
The Sustainable Investing Flows Landscape for Australasian (Australia and New Zealand) Fund Investors provides a high-level view of the trends in asset flows across the sustainable fund universe, and any corollaries to the rest of the Australasian fund universe.
Read more | 7 min read
Retirement
The when and why of four million Australian retirees
The many reports and reviews issued recently are giving greater understanding about retirement and attempting to improve the outcomes for Australians living on their savings.
Read more | 6 min read
The finance industry
Banking on value

Figure out what something is worth, then invest with a margin of safety. Keep this front of mind.
Read more | 5 min read
The Big Picture
What's next for the RBA?
With the first rate pause of the current hiking cycle here and the flagged departure of controversial Reserve Bank of Australia governor Phillip Lowe, it's been an historic month for the RBA. We sit down with Morningstar's Peter Warnes to discuss what's next for the nation's central bank.
Read more | 3 min read
Investing Trends
Video: What the 'mortgage cliff' might mean for The Big Four this reporting season
As thousands of Australians grapple with higher mortgage repayments, we sit down Morningstar's Nathan Zaia to discuss what it means for the nation's banking sector.
Read more | 6 min read
Inside Morningstar
Morningstar Manager Research Coverage: A Dynamic Approach
Morningstar's coverage universe is expanding. We've shared that from September, the Morningstar Medalist Ratings can be powered by an analyst, a machine-learning algorithm, or a combination of both. Our approach to analyst coverage is also evolving. We believe some strategies can be covered more dynamically to enable analysts to spend more time where warranted.
Read more | 2 min read
Investing Trends
Best Ideas beyond home bias spheres

Broadening one’s investment horizon and learning about the diverse companies listed overseas is an immensely stimulating exercise... and Morningstar’s Best Ideas are a good starting point.
Read more | 6 min read
Investing basics
Four investors walk into a bar … Part 2

And have a competition with Mr. Market.
Read more | 4 min read
The Big Picture
Forecast 2023–24: Climbing the wall of worry

Developed economies are still fighting a battle against inflation, particularly in the services sector.
Read more | 7 min read
Research Insights
[VIDEO] Key Ratings Changes and Insights in Global Equities
Watch this webinar to hear from members of Morningstar’s manager research team including, Annika Bradley, Michael Malseed and Steven Le, following their sector review of global equity strategies.
Read more | 45 min read
Investing Trends
[VIDEO] Are in-house teams held to account?
As super funds increasingly bring their investment teams in-house, what happens when funds underperform? Morningstar asks AustralianSuper.
Read more | 4 min read
Research Insights
3 Solid Diversified ETFs That Favour Tech Stocks

A new analyst report from Morningstar highlights three ETFs for investors hunting for tech exposure but cautions against "jumping on the bandwagon" too quickly.
Read more | 3 min read
Behavioural science
The Evolving Investing Landscape
New tools, enduring goals, and well-known pitfalls.
Read more | 6 min read
The Big Picture
The Fed pauses, but a hawkish dot plot suggests further rate hikes

While the trend is certainly encouraging, the core reading is still too high and remains well above the Fed’s desired level.
Read more | 7 min read
In Practice
Adviser-to-client template: Current conversations with clients
For financial advisers to use with clients. Feel free to copy, paste, then edit as desired.
Read more | 5 min read
Investing basics
How to find the right active manager
Johanna Englundh talks to Morningstar's Jose Garcia-Zarate on how to identify managers that can help you on your investing journey.
Read more | 5 min read
The finance industry
Can you trust the valuation of super funds?
AustralianSuper CIO Mark Delaney says it's in the best interest of industry super funds to ensure private asset valuations are up to date.
Read more | 2 min read
Research Insights
4 investors walk into a bar...
Four investors walk into a bar and start having an active discussion about the state of the global economy and markets. The debates were almost as noisy as the group playing a game of darts next to them.
Read more | 5 min read
Investing basics
A capital gains tax discount is legitimate but how much?
With negative gearing, where costs of owning a rental property exceed revenues, the ‘loss’ can be charged against other personal income. Some people seem to think the loss itself is a good thing because it reduces their tax, but the tax savings only reduces the loss: it is still a loss.
Read more | 4 min read
ESG
Australian Companies Are Not on Track to Reach Net Zero by 2050
Despite many companies pledging to decarbonise their businesses and achieve net zero emissions by 2050, current data reveals that we are not projected to make this milestone.
Read more | 7 min read
Investing basics
What investors should look for in a fund manager

We outline what we believe investors should look for in a fund manager and examine the differing funds management models in Australia.
Read more | 6 min read
Research Insights
[VIDEO] Analyst insights: What to know about the world's largest gold miner

Morningstar's Jon Mills on the outlook for gold, and why the world's largest gold miner wants to buy ASX-listed Newcrest.
Read more | 4 min read
Research Insights
[VIDEO] Analyst insights: Bank earnings have "peaked" but dividends could still rise

The key takeaways from the Big Four Bank results, and why dividends could see some growth in the second half - even if earnings are weaker.
Read more | 4 min read
Investing basics
The Ambitious World of Absolute Return Bonds
Are absolute return managers exhibiting the skill to consistently deliver on all their objectives, and are these strategies worth the additional cost for investors? Should absolute return bond managers be expected to protect the downside as well as meeting absolute return objectives?
Read more | 7 min read
The finance industry
Silicon valley lessons from silly con game reflections

Borrowing short, lending long" and having capricious depositors sank SVB, but there are parallels in equity markets investors can take advantage of.
Read more | 6 min read
ESG
Sustainable Investing Flows Landscape for Australian Fund Investors Q1 2023
The Australasian (Australia and New Zealand) sustainable funds universe inflows plummeted this quarter, down 91.97% in the previous quarter, or 78.30% adjusted.
Read more | 8 min read
The finance industry
Is your industry super fund too illiquid?

We take a look at the liquidity profile of five large superannuation funds.
Read more | 7 min read
Retirement
What the Federal Budget means for retirees

The budget includes cost-of-living support for retirees yet indicates the Government won't change the way it calculates the new super tax.
Read more | 4 min read
Top stories
Australia facing a testing period with headwinds possibly strengthening

Given the retreat in goods inflation, getting wages growth under control is now critical in getting inflation back within the longer-term target range.
Read more | 6 min read
The Big Picture
[VIDEO] Webinar: AU & NZ Equity Market Outlook - Q2 2023
Watch this exciting webinar to hear Morningstar’s Peter Warnes, Head of Equities Research, and Adrian Atkins, Senior Equities Analyst, present the equity market outlook for Australia and New Zealand.
Read more | 38 min read
Research Insights
[VIDEO] Analyst Insights: A check in on the retail sector
Morningstar's Johannes Faul says this food retailer continues to be a growth story despite disappointing first-half earnings.
Read more | 3 min read
Retirement
Should you give your children their inheritance before you die?

The issue is likely to be aired more often as Baby Boomers in Australia get older, die richer and leave behind larger bequests.
Read more | 5 min read
Investing basics
What do cheese and hybrids have in common?

Losing the confidence of your funders, whether retail or institutional, has fast and far-reaching implications.
Read more | 7 min read
Investing Trends
2 great ETFs for navigating a global recession

These dividend and consumer defensive-focused ETFs can help investors weather an economic downturn.
Read more | 2 min read
The finance industry
In an uncertain world, how defensive are bonds?

The failure of Silicon Valley Bank is a timely wake up call; the causes are several, though with some more important than others.
Read more | 5 min read
The Big Picture
A pause for now, but the inflation tiger remains uncaged
Despite the distraction of a storm in a teacup, where some say the prosecutors may have sipped too much Jack Daniels, this week was a data fest, along with the Reserve Bank’s April Monetary Policy Decision.
Read more | 8 min read
The finance industry
The weird end of Credit Suisse: Do stocks outrank hybrids now?
Holders of low-ranking Credit Suisse debt are getting wiped out, but its shareholders aren't. Does this change everything?
Read more | 5 min read
Investing Trends
Are banks prepared for the fixed rate mortgage cliff?
Around 800,000 mortgages will roll onto a sharply higher interest rate this year as their fixed term ends. Here's what it means for the banks.
Read more | 2 min read
Investing Trends
Morningstar ETFInvestor Year End Review 2022
Exchange-traded funds’ growing popularity among retail investors continued to drive growth in this sector, albeit at a slower pace in 2022. Net new flows declined compared with 2021 as investors remained cautious amid volatile global markets. Asset growth was, however, supported by multiple successful new launches in 2022.
Read more | 6 min read
Investing Trends
3 top picks to celebrate International Women’s Day
To celebrate International Women's Day we showcase three funds with Morningstar Analyst Ratings that are among our top picks.
Read more | 3 min read
Research Insights
The SuperWars Revisited: Vanguard vs. AustralianSuper

Vanguard's recently launched superannuation offering allows it to go head-to-head with the large superannuation funds, but will it really be able to compete?
Read more | 7 min read
ESG
Is Greenwashing Scrutiny Leading to the Rise in Greenhushing?
When engaging with asset managers, Morningstar has recently seen a softening of language around green claims. An unintended consequence of the focus on greenwashing has likely contributed to the rise of greenhushing, which is the antithesis of greenwashing.
Read more | 5 min read
Retirement
How the new super tax will hit large balances
Although holders of large super balances will be hit by the higher tax, the fears of a hard cap forcing the removal of money from super, or the imposition of tax at the top personal marginal rate, have not been realised. The delay until after the next election also gives time for consultation and modification.
Read more | 5 min read
Inside Morningstar
Power your financial advice business with AdviserLogic and Sharesight
Morningstar AdviserLogic and Sharesight have joined force to help financial advisers power their business with comprehensive tax and performance reporting, research tools, CRM and much more. Connected via the AdviserLogic API, Morningstar AdviserLogic and Sharesight have come together to create a great solution for advisers who want to save time, automate their practice, and build better relationships with their clients. Keep reading to learn more about how your practice could benefit from connecting Morningstar AdviserLogic and Sharesight.      
Read more | 5 min read
Research Insights
[Video] Buying opportunities in a slowing economy
Read more | 4 min read
Research Insights
Morningstar Australia Prospects - February 2023
In our February 2023 edition, we present a list of 22 strategies that we believe are worth investors' consideration. Since our last edition, we have added one strategy and have seen two strategies graduate into full coverage for our 2023 review cycle.
Read more | 9 min read
ESG
Sustainable Investing Landscape for Australian Fund Investors Q4 2022
Sustainable funds have faced a challenging 12 months, with only 35% outperforming their respective category peers over the calendar year. Yet despite these performance headwinds, Australian investors have continued to support sustainable investing with fourth-quarter inflows up 311% over the previous quarter.
Read more | 8 min read
Investing basics
The 60/40 Portfolio Is Dead. Long Live the 60/40 Portfolio!
Much has been written in 2022 about the death of the so-called 60/40 portfolio. Many suggest it isn’t an appropriate solution for future portfolio construction. This paper will explore these concerns and also explore whether the 60/40 portfolio may now be even better placed for the future.
Read more | 6 min read
The Big Picture
Lessons from "Madoff: The Monster of Wall Street"

The Netflix series serves as an opportunity to reflect on the immense responsibility placed on the Australian superannuation industry to protect investors.
Read more | 4 min read
Investing Trends
What to do with a market no longer cheap, but not expensive either?

If a meaningful downturn happens and investors can be both picky on quality and price, now is the time to do the work.
Read more | 5 min read
Inside Morningstar
Celebrating 3 years of Morningstar AdviserLogic
Read more | 2 min read
Investing Trends
[VIDEO] Are dividend stocks a good investment today?
This episode of Dividend-Stock Deep Dive explores how dividend stocks have performed in 2022’s bear market and their prospects in a recession.
Read more
Research Insights
[WEBINAR] Industry Pulse: Outlook for Australian banks
Read more | 35 min read
In Practice
Three reasons to adopt a client portal in 2023 [VIDEO]
Client portals are a huge opportunity for advisers to engage clients and better protect their security. In less than three minutes, find out how client portals can help advisers from Morningstar Australia's Head of Business Development and Strategy, Peter Bryant.
Read more | 2.38 min read
Investing Trends
Drive to survive
Drive to Survive, the gripping and successful Netflix series on Formula 1 racing, is also a very fitting motto for investment management, as it captures the fierce and innovative competition for survival of the fittest. The parallels are clear, with storied histories, narratives, and defining brands, teams both large and boutique, strong leaders, and never-ending battles for success. The Formula 1 teams and fund managers are both trying to achieve a singular objective: win.
Read more | 7 min read
Research Insights
Income Isn't Fixed
The momentous rise in government-bond yields since the second half of 2021 has had one unexpected effect: shrinking income distributions. This may be particularly surprising given bond managers have been able to reinvest at progressively higher yields, and presumably they are able to distribute more income.
Read more | 5 min read
ESG
Australian Investors Focus on Portfolio Decarbonisations Rather Than Investing in Climate Solutions
When it comes to sustainable investing, climate change has never been higher on the agenda. This work is critical, but the scale of capital needed for the transition is significant. According to the COP27 agreement, a global transformation to a low-carbon economy is expected to require an investment of at least USD 4-6 trillion per year.
Read more | 7 min read
Investing basics
Stock ideas for a likely unsettled 2023; more central bank musings
2023 should be more settled, but uncertainty will remain the investor’s constant companion. It could be a year where markets finish near starting points.
Read more | 6 min read
The Big Picture
Brianstorm: Four fearless predictions for 2023
We decided to beat the crowd this year and present our own fearless predictions for 2023… in November! Some may appear improbable, but that is why they are “fearless” rather than “timid” predictions.
Read more | 6 min read
Investing Trends
[VIDEO] Medibank selloff was an overreaction
Equity Analyst Nathan Zaia on what the Medibank selloff means for investors
Read more | 3 min read
Investing Trends
[VIDEO] Focus on cashflow not income in retirement
Graham Hand in conversation with Jody Fitzgerald, Head of Institutional Portfolio Management and Solutions, Morningstar Investment Management
Read more | 5 min read
ESG
Sustainable Investing Landscape for Australian Fund Investors (Q3 2022)
Sustainable funds have faced a challenging 12 months, with only 33% outperforming their peers within their respective categories. The longer-term picture remains more positive, with 52% of sustainable investments with five-year track records outperforming peers within their respective Morningstar Categories. This quarterly paper highlights recent trends within sustainable retail investments in Australia.
Read more | 8 min read
Research Insights
Managers Face the Recession Risk Conundrum
Over the second half of October, we reached out to some of the asset managers under our qualitative coverage to collect their views on the current market environment and recent changes to their positioning.
Read more | 8 min read
Investing basics
Fighting the last war
Investors often overweight new events or information without looking into the objective probabilities of those events occurring in the long run.
Read more | 5 min read
Research Insights
It's All About the Style—Value, Growth, and Blend
Investment style is a key beacon in assisting investors to  apportion expectations around the risk and performance prospects of a strategy.
Read more | 6 min read
The Big Picture
This time it could be different

Bulls and bears look for indicators to justify their hypotheses, that the good times will continue, or the bad times have further to run.
Read more | 6 min read
The finance industry
[VIDEO] Banks to emerge as the rate hike winners: Morningstar
Read more | 4 min read
Investing Trends
[VIDEO] Lazard Asset Management: 3 undervalued global equities
Read more | 4 min read
Investing Trends
Australian oil and gas: Value still here despite higher share prices

Market underestimating earnings resilience coming via growth projects and earnings stability from domestic gas.
Read more | 10 min read
Investing Trends
Finding the upside in bear markets

Morningstar's latest quarterly market outlook test times ahead including on the economic front, but we have uncovered opportunities for investors.
Read more | 4 min read
Retirement
What to Pay for Future Income
Magellan is the latest provider to unsuccessfully attempt to solve one of finance’s perpetual challenges: income in retirement.
Read more | 6 min read
The Big Picture
Whipsawing markets not for the faint hearted

Volatility is in full swing and it will be some time before any semblance of certainty prevails.
Read more | 7 min read
Research Insights
The Super Wars: Vanguard vs AustralianSuper

Morningstar manager research delves into the intricacies of Vanguard and AustralianSuper.
Read more | 5 min read
The Big Picture
Editor's Note: Quality of Advice Review
If adopted, Quality of Advice Review - Consultation Paper - Proposals for Reform will have a profound impact on financial advice.
Read more | 4 min read
Investing basics
Morningstar talks asset allocation and where to begin
Morningstar's Tim Murphy talks asset allocation and where to begin
Read more | 8 min read
Research Insights
Morningstar Australia Prospects - August 2022
Welcome to Morningstar Australia Prospects, a list of promising investment strategies that we believe may be worthy of greater investor attention but which are not yet covered by Morningstar Manager Research.
Read more | 10 min read
Research Insights
Australia and New Zealand Best Stock Ideas - September 2022
This month we have 14 companies in our Best Stock Ideas list, we have removed G8 Education.
Read more | 8 min read
ESG
3 newly rated funds for ESG portfolios
We've recently added three new funds to our coverage to provide some additional options for advisers constructing ESG portfolios for clients. We've provided detail on the investment merits of the strategy and also noted the Morningstar ESG Commitment Level, or ECL, for asset managers.
Read more | 6 min read
The finance industry
Can you trust industry super fund valuations?
The Australian Prudential Regulation Authority's recent commitment to update SPG531 – Valuation cannot come soon enough. The financial year-end performance data has been met with suspicion from investors, advisers, and even between superannuation funds. The reality is the industry has come a long way in recent years.
Read more | 4 min read
Investing basics
5 Things to Do in a Bear Market
Rebalancing, tax-loss selling, and buying on the dip are among the productive moves to consider. (8 mins)
Read more | 8 min read
Inside Morningstar
Morningstar CFS FirstChoice Managed Accounts Quarterly Update
Director of manager selection Aman Ramrakha and director of research products Rick Di Cristoforo provide the quarterly update. (35 mins)
Read more | 35 min read
ESG
Sustainable Investing Landscape for Australian Fund Investors Q2 2022
Sustainable funds have faced a challenging six months, with only 31% outperforming their peers within their respective categories. The longer-term picture remains more positive, with 55% of sustainable investments with five-year track records outperforming peers within their respective Morningstar Categories.
Read more | 10 min read
Research Insights
Australia and New Zealand Best Stock Ideas - August 2022
Morningstar's monthly Best Stock Ideas highlights high-quality Australian and New Zealand companies, which are currently trading at discounts to our assessed fair values. The ideas, chosen from our coverage of nearly 200 companies, are intended to have broad application in a variety of equity strategies, but individuals should consider their personal investment goals and positioning before investing.
Read more | 8 min read
Retirement
Should you personalise your withdrawal rate in retirement?
No single Australian’s retirement is the same—the notion of the “average” client simply doesn’t exist. But advisers know that. After all, the advice industry has been providing personalised strategies for years and helping retirees answer the big question: How much should I spend each year? But if personalisation is the way forward, is it time to consider the role of minimum drawdown rates in superannuation?
Read more | 5 min read
The finance industry
Australia's Finance Industry Again Demonstrates the Failings of Its Portfolio Holdings Disclosures to Fund Investors
At a time when the Australian Prudential Regulation Authority is calling on Australian super fund trustees to improve the frequency and methodology used in unlisted asset valuations, perhaps we should also remind ourselves how abysmal Australia's portfolio holdings disclosure requirements are when compared with other countries'.
Read more | 4 min read
The Big Picture
Hope has no place in an investment strategy
“Fingers Crossed” read the headline of The Australian Financial Review last weekend. Two words investors should never rely on. Appeals to hope should be a wake-up call in the current environment. They should shake up the complacent and reinforce the need for capital preservation. Luck is not a sustainable investment strategy. There is likely to be much more economic pain ahead before greener pastures emerge.
Read more | 5 min read
Investing Trends
Adviser Webinar: Hybrids—Year in Review and our expectation for 2022 and beyond
Video: BondAdviser-Morningstar Adviser Webinar (33 mins)
Read more | 33 min read
Investing Trends
What happened to Australian equity outperformance?
Video: Growth jitters and the possibility of reduced iron ore demand in China have swiped the heavyweight banking and resources sectors. (6 mins)
Read more | 6 min read
The finance industry
Crimson Tide: How Are Bond Managers Handling Rising Interest Rates?
Consensus has shifted overwhelmingly towards expecting higher interest rates to address burgeoning inflationary pressures—it wasn't too long ago that the Reserve Bank of Australia was maintaining a yield-curve-control policy and projecting to keep interest rates on hold until 2024. Changes in the shape of the Australian yield curve over this period tell the story—it's risen and steepened significantly, particularly at the front end and intermediate maturities.
Read more | 5 min read
Investing Trends
Market Selloff Is Creating Opportunities for Long-Term Investors
In the past year, inflation has risen to high levels in many Western countries including Australia, driving interest rate expectations up and bond and equity markets down. Cost-of-living concerns and fears of recession are growing, but Australian equity investors shouldn't panic.
Read more | 10 min read
Retirement
Allocating to Private Markets in the Post-Retirement Phase
Many Australian investors, including the large superannuation funds, are allocating assets to private markets such as private equity, unlisted infrastructure and private debt. In the right  structure, private markets have positively contributed to portfolio return outcomes. However, financial advisers often cite liquidity and transparency of the underlying investments as the biggest challenge to allocating more to private markets. But is it the Australian retail platform infrastructure that constrains advisers from allocating private assets to client portfolios? Or is liquidity more crucial for investor needs when constructing portfolios for the retirement income phase?
Read more | 4 min read
Research Insights
Global Equities Style and Manager Performance in Sell-off. Leaving the Goldilocks Zone
Market conditions have shifted dramatically in 2022, driven by an outbreak of global inflation to the level not seen in four decades. The easy monetary policy era appears to be over, and markets are adjusting to the reality that central banks may not be prepared, or able, to step in and support asset values with stimulatory settings. Against this backdrop, the selloff in global equities has been sharp, but it is noteworthy that there has been a large dispersion in manager performance particularly when differentiated by style.
Read more | 6 min read
The Big Picture
Forecast 2022–23: A difficult path ahead to avoid a hard landing
Bringing inflation under control will probably require a meaningful contraction in economic activity. The nightmare scenario would be stagflation, where central banks do not kill growth, but inflation escapes unscathed.
Read more | 10 min read
Investing basics
Long-term rates have soared, but is fixed or floating best?
The threat of higher interest rates, slower economic growth, rising inflation and deteriorating credit is making investing scary at the moment, especially in equity markets.
Read more | 5 min read
Research Insights
Time for investors to consider sinking their FAANGS into moat-rated tech bellwethers
Market expectations for the tech sector are fading fast as rate rise fears mount. It's time for investors to consider sinking their FAANGS into moat-rated tech bellwethers
Read more | 6 min read
The finance industry
Can you still bank on the banks?
Last week the future for banks looked bright. Rising interest rates would nourish emaciated margins. A red-hot economy would keep new borrowers coming through the door and credit growth strong. The $200 billion Australians had squirreled away in savings and offset accounts would ward off defaults or an economic slowdown.
Read more | 5 min read
Investing Trends
Uncertainty abounds. Be greedy when others are fearful

Value appearing in technology and healthcare as markets ditch the once-favoured sectors.
Read more | 5 min read
The Big Picture
Rising rates have finally killed TINA. Good riddance!

The 50-basis point increase in the official cash rate shows the hawks are finally ruling the roost at the RBA.
Read more | 5 min read
In Practice
User Guide: Model Portfolio downloads from Morningstar Direct into Morningstar Portfolio X-ray tool.
The following user guide is for Morningstar Direct users to be able to download their model portfolios that can be easily imported into Morningstar’s Portfolio X-ray tool on Adviser Research Centre and AdviserLogic.
Read more | 3 min read
Investing Trends
Sustainable Investing Landscape for Australian Fund Investors - Q1 2022
Asset Flows to Australian Sustainable Investments Slow in First Quarter 2022
Read more | 6 min read
The finance industry
Slowing growth in China and a brewing supply chain crisis in Eastern Europe will give inflation-rattled markets more to worry about
Oil and gas, and to a lesser extent wheat, have dominated the headlines and financial markets since the invasion in February.
Read more | 8 min read
Retirement
4 dangerous assumptions that could ruin your retirement
By the time retirement savers realise the error of their ways, it may be too late
Read more | 6 min read
The finance industry
Another one bites the dust: Lowe joins the hawks in a rush
As central banks move to wrangle inflation, market fears shift to risk of a growth slowdown.
Read more | 8 min read
The finance industry
Fixed Income Advisory and Research | Monthly Review: March 2022
The first quarter of calendar year 2022 represented the worst quarter on record for the AusBond Composite Index, returning -5.88%. It was also the worst month on record, returning -3.75%. Commodities continued to benefit from de-globalisation, while interest rate expectations hammered fixed-rate investors.
Read more | 15 min read
Research Insights
Aged Care to Survive, Ryman to Thrive
Shares in Ryman Healthcare are 40% below our NZD 15.20 fair value estimate, with shareholders penalised for transient issues, or industry problems not shared by Ryman. Rivals struggle with old facilities and declining occupancy, and one third of Australia's care homes lose money. The industry is consolidating and Australian providers exiting, despite demographic tailwinds. Meanwhile, Ryman's demand is underpinned by the ageing population, its brand, and track record of care.
Read more | 8 min read
Investing basics
How to Think About Managing Style Within a Portfolio
In our recent article, "Australian Equity Performance: What’s Driving Markets," we looked at return drivers in the domestic market that had begun to soften following a strong pandemic-rebound period. We decided to see how variability in return profiles between styles and sectors can be managed within a portfolio’s Australian equity allocation. One key observation lately has been the variance in fortunes between value and growth investment styles driven by divergent sector performance.
Read more | 4 min read
The Big Picture
The one time it might pay to be a lemming
Should a meaningful economic contraction ensue, what tools are at the ECB’s disposal to launch effective stimulatory action with the official interest rate at zero?
Read more | 5 min read
Investing Trends
5 charts on crypto’s past and future
Over the past seven years, cryptocurrencies have rocketed from about $5.2 billion in market capitalization for the top 100 coins to nearly $1.7 trillion as of January 2022. Cryptocurrencies now represent the fourth-most popular type of investment among investors, behind only stocks, mutual funds, and bonds. Bitcoin alone has a market cap that would rank in the top 10 largest companies in the S&P 500.
Read more | 6 min read
The Big Picture
Cost-of-living payments could come back to bite if they add to inflation
The 2022/23 federal budget has delivered the third round of significant fiscal stimulus in as many years. While most of the stimulus was necessary, at some point the piper must be paid. Would the budget have been any different if it wasn’t an election year?
Read more | 5 min read
The finance industry
Balancing the Performance Test Guidelines With Best Interest Duty
Your Future, Your Super and its performance test is set to be applied from July 2022 to some multisector choice products. Some of these choice products are available on retail super platforms, and there will almost certainly be a barrage of questions when the next round of “underperforming” letters reaches members. There will also be implications for the advice sector. Advisors need to prepare themselves and work out how to balance best interest duty with the guidance from the regulator.
Read more | 4 min read
Research Insights
Picking Fund Managers: Focus on the Data, Ignore the Noise
The recent stock market sell-off sees the shares of all of the listed ANZ asset managers we cover trading at substantial discounts. With such fertile hunting ground, we think the market is underestimating the key investment strategies of these asset managers, and their ability to deliver positive alpha and attract money. We think the outlook for asset managers is better than what's currently being priced in. Recent market declines suggest future investment returns will likely improve. Their strong fundamentals, such as having solid operating cash flows and relatively low capital intensity support our conviction.
Read more | 10 min read
The finance industry
Wall of worry grows as Fed finally hikes rates

Monetary policy tightening needs to tread lightly amid rising inflation, a stock market moving into bear territory and war in Eastern Europe.
Read more | 6 min read
ESG
ESG in Australian fixed interest - Easy to say, hard to do

Government bonds present tricky questions for fund managers to address when applying ESG principles.
Read more | 5 min read
Investing Trends
What's driving Aussie equity market performance today?
Uncertainty, inflation expectations, interest-rate forecasts, geopolitical risks, and the global pandemic are all presenting investment considerations.
Read more | 5 min read
Top stories
Ukraine-Russia Conflict Update: Compendium of Research
Compilation of published notes of implications across sectors and companies under our coverage regarding the conflict in Ukraine.
Read more | 7 min read
Investing Trends
Annual Asset Class Returns - Calendar Year
Annual Asset Class Returns - Calendar Year
Read more | 2 min read
ESG
Most Sustainable Funds Sidestepped the Meta Plunge
But funds from Magellan, Vanguard, and Dimensional were some big exceptions.
Read more | 6 min read
Top stories
Magellan Leads Managed Funds in Feeling the Meta Stock Pain
We looked at the funds that had significant exposure to Meta within their portfolios, and those whose positions held the highest market value. Below is a list of actively managed funds where managers have opted to hold a hefty stake in the social-media company.
Read more | 5 min read
Top stories
“Dose of reality”: Interest rates tipped to rise as inflation picks up
Australian investors need to brace for higher rates after consumer prices soared past market forecasts to hit their highest level in eight years, ratcheting up pressure on the Reserve Bank to begin winding back its pandemic-era easy-money policies.
Read more | 5 min read
The finance industry
Market volatility is nothing new
Despite some extreme stock market moves, recent market performance hasn't been that far outside the norm, says Morningstar's Amy Arnott.
Read more | 5 min read
Investing Trends
Market fall reveals your risk tolerance and loss aversion
You need to find the balance between risk tolerance and a good night's sleep.
Read more | 5 min read
Investing Trends
Long-term Asset Class Returns - 31 December 2021
Long-term returns across key asset classes over a 30-year horizon up till 31 December 2021.
Read more | 5 min read
Investing Trends
SMSFs and cryptocurrency: A guide
While still representing a tiny portion of all SMSFs assets invested, crypto’s rise in portfolios highlights growing interest.
Read more | 5 min read
Investing Trends
4 things to keep in mind about sustainable investing in 2022
If you are one of the many individual investors or financial advisors considering adding a sustainability lens to your investments in 2022, here are four things to keep in mind about sustainable investing.
Read more | 6 min read
Research Insights
10 charts to farewell 2021: Charts of the year
Today’s ten charts bring new twists to some of the year’s biggest stories, from the impact of age on inflation to covid’s effect on influenza.
Read more | 8 min read
Retirement
10 little-known pension traps prove the value of advice
The age pension is a major source of income for the majority of Australian retirees. But the system is complex, and many people find it hard to work their way through the labyrinth of regulations. As a result, they may fail to qualify for a pension, lose their pension, or receive less than they would if they took advice.
Read more | 7 min read
Investing Trends
11 Australian stock ideas for 2022
Here are some of Morningstar analysts' best ideas across eleven sectors for 2022. Around 45 stocks (or 25%) under coverage screen as 'undervalued' rated four or five stars, with standout sectors including energy, financials, and industrials.
Read more | 7 min read
The Big Picture
Fossil fuels, ESG and investing opportunities post COP26
In the wake of the United Nations-sponsored Conference of the Parties (COP26)—now you know what it stands for—in Glasgow it is time to air some thoughtful disagreement again. Today the discussion revolves around environmental, social, and governance (ESG), green energy, decarbonisation and fossil fuels. You may ask, why go there? Because I sniff an opportunity.
Read more | 5 min read
Top stories
Steady as she goes despite exit of Magellan CEO
Dr Brett Cairn’s sudden resignation from Magellan Financial Group is expected to have a limited impact on the investment manager's earnings outlook, says Morningstar.
Read more | 5 min read
Investing basics
Your year-end portfolio review - In six easy steps
As 2021 winds down, investors can look back on yet another excellent year. While investors have had plenty to worry about - especially inflation and the delta and omicron variants of the coronavirus - that hasn't stopped US stocks from posting a tremendous rally. Australian stocks are poised to end the year with respectable gains.
Read more | 6 min read
Investing Trends
Asset Class Investment Growth
Asset Class Investment Growth of $1 from July 1989 to November 2021
Read more | 1 min read
Research Insights
9 high quality dividend ideas for 2022
A slew of asset managers and Australia’s oldest company are among the nine stocks Morningstar analysts forecast to deliver dividend yields above 5% this financial year.
Read more | 6 min read
The Big Picture
High US inflation is proving sticky, but not here to stay: Morningstar view
Inflation numbers are looking bad, but Morningstar believes the situation still looks temporary.
Read more | 4 min read
Retirement
The good news about retirement income
When it comes to in-retirement income—and specifically the amount you can safely withdraw from your portfolio without running out—Christine Benz has got good news and bad news.
Read more | 5 min read
The finance industry
Australian Listed Managed Investment Landscape. Exploring an evolving market.
Of the roughly 100 LICs currently listed on the Australian Security Exchange, a small handful have seen a half century or more of market activity, with the five oldest companies boasting an inception date prior to 1972.
Read more | 7 min read
Retirement
Why Advisers Should Understand the Insourcing Trend of Large Superannuation Funds
Large superannuation funds are increasingly insourcing investment management responsibilities. And many of these funds now feature on many advisers’ approved product lists.
Read more | 7 min read
Top stories
Australia Blows Opportunity to Improve Portfolio Holdings Disclosures to Retail Fund Investors
As an otherwise sophisticated market, it is remarkable that Australia has consistently ranked bottom of all major global markets for managed funds disclosures. This has been a consistent finding from Morningstar’s Global Investor Experience studies, which assess the retail investor experience across 26 markets.
Read more | 4 min read
Investing Trends
Stock market selloffs present opportunities to buy
The selloff in Facebook stock and other big technology companies earlier this month highlights an important lesson for investors – prices are volatile, and the ups and downs are all part of the investment journey. Selloffs represent an opportunity to buy shares at lower prices, but caution is warranted.
Read more | 4 min read
Housing & you
House prices surge but falls are common and coming
Residential house prices have surged well above pre-covid levels, despite lockdowns, high levels of underemployment, a dramatic reduction in migrant arrivals and jobs uncertainty.
Read more | 5 min read
The Big Picture
100 Aussies: five charts on who earns, pays and owns
Each year, the Australian Taxation Office (ATO) publishes a snapshot of the 14.7 million individuals who lodge tax returns. Many returns are not lodged on time, so the latest data is for FY2019, but it reveals some surprises. The ATO also summarises some of the demographics of taxpayers (and non-taxpayers).
Read more | 5 min read
Investing basics
3 investment mistakes to avoid
This is not the first time that I have written about these three investment blunders. Fortunately, they are becoming less common. But, until they disappear altogether, admonitions are still warranted.
Read more | 5 min read
CFS Managed Accounts
Morningstar CFS FC Managed Funds Portfolio August 2021

Download the Morningstar CFS FC Managed Funds August 2021 portfolio.
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Investing basics
The power of compound interest
Albert Einstein is reputed to have said: “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” As an investor, making your money work for you is the best way to increase your wealth. And the wealth you will accumulate is the result of 2 things: how long you invest and the rate of return on your investment.
Read more | 3 min read
Housing & you
10 reasons wealthy homeowners shouldn't receive welfare

Thousands of age pensioners are now wealthy beyond their wildest dreams; they did one brilliant thing that set them up for life and retirement.
Read more | 7 min read
Investing basics
Three all-time best tables for every adviser and investor
I have read countless books on investing, met an enormous number of financial experts and fund managers, and made pretty much every investing mistake possible! If I could distil my learnings into one statement, it would be this: the short term is unknowable, but the long term is inevitable. Let me share my three all-time favourite tables from 30 years of investing.
Read more | 5 min read
Investing Trends
Best global equity ETFs for Australian investors
International equity is one of the most popular categories for ETF investors as they seek global opportunities and diversification. As of 31 July 2021, almost $60 billion is invested in ETFs tracking global shares, up from $28 billion a year before.
Read more | 6 min read
Research Insights
10 franked income-stock ideas for Australian investors
We've identified 10 franked income stock ideas from our Australian and New Zealand coverage list of 189 stocks. The additional income from franking credits highlights several companies with 3-star ratings which appear more valuable when the value of franking credits is incorporated into our analysis.
Read more | 9 min read
Retirement
Retirement income promise relies on spending capital
Everyone needs to rethink what income means in retirement. That's the message from the Government, and it will soon impose obligations on all super funds, including SMSFs, to provide a plan to maximise this form of income.
Read more | 7 min read
Investing Trends
Investors hit jackpot as companies ride turnaround
Financial heavyweights, utilities and Telstra have delivered record shareholder returns as earnings rebound
Read more | 5 min read
Investing Trends
6 charts on rising US tech stocks
Markets have been hitting record highs. But over the past few months, the value stocks that led the US equity market since late 2020 have been losing steam. Here’s a look at the monthly returns of the Morningstar US Growth and Value indexes, which helps to visualize the trend.
Read more | 6 min read
CFS Managed Accounts
Investment Philosophy

The Morningstar CFS FirstChoice Managed Accounts are built using the skill and knowledge of our Manager Research and Research Advisory teams.
Read more | 10 min read
Research Insights
Forecast 2021-22: Brace for volatility as tightening cycle looms
After 2020-21’s V-year including virus, variants, V-shaped recovery, vaccine, vaccination, and volatility, 2021-22 is set to wrestle with an almost adjacent letter of the alphabet, the T.
Read more | 10 min read