The Portfolio Comparison Tool
This tool can be used to compare and contrast the details of a current portfolio with those of a
suggested portfolio containing recommended changes and improvements and generate a PDF
report.
Getting Started
Select the portfolios you are looking to compare using the tick boxes then the compare Icon, the
order the portfolios appear will be dependent on which portfolio is checked first.
The comparison tool covers:
Asset Allocation – breaks down the portfolio by general asset class such as equities, bonds, cash and
other. Not classified represents the portion of the portfolio that cannot be classified due to missing
or unavailable date. We display the Net, Long and Short Positions.
World Regions – shows the allocation of the portfolio positions across world regions.
Stock Sectors – Morningstar divide the stock universe into three super sectors:
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Cyclical – industries that do well in market upturns but tend to suffer in downturns
Sensitive – stocks that although not immune to a bad economy, are less likely to impacted than
cyclicals
Defensive – industries that are relatively safe and are not impacted by the markets.
Investment Style
Equity Style Box – graphical representation of the portfolio’s overall investment style, based on the
individual securities held both directly and indirectly within the portfolio. It is created by classifying
these securities according to market capitalisation on the vertical axis and growth and value factors
on the horizontal axis. A well-diversified portfolio will include exposure in all four corners of the
Equity Style Box.
Fixed Income Style Box – displays the overall interest rate sensitivity and the credit quality of the
bonds and bond funds in a portfolio The horizontal axis is based on a fund’s interest rate sensitivity
as measured by the average duration of all the bonds in the portfolio. The vertical axis represents
the credit quality.
In general, larger percentages in the left hand portion of the style box represent a cautious fixedincome exposure for the portfolio, with bonds of investment-grade credit quality and short to
medium term bond maturity. Conversely, larger portions in the lower right-hand represents a riskier
fixed income allocation, although one that may produce higher yields.
Underlying Holdings
These are broken down into the top 10 holdings of the portfolio, including cost and portfolio weight
and the top 10 underlying investments, broken down by asset class, sector, country and portfolio
weight.