New Risk Model components have been added to Morningstar Office Cloud. This premium and exposure data will help users understand various factors that drive investment risks and returns to enable them to make better investment decisions.
The following table describes each risk model component:
Risk Model Component
Risk Exposure Snapshot
This component allows users to break down the risk embedded in a portfolio according to the selected risk model.
By tracking the underlying economic exposure to risk model factors, this chart shows how investments or portfolios behave in a variety of market conditions.
Use the Risk Exposure Snapshot component to identify strategy changes related to multiple factors and the associated risk premiums (the returns attributed to the specific factor).
Holdings Risk Factor
This table displays risk factor data points within the selected risk model, such as Economic Moat, Financial Health, and Ownership Risk. This applies to holdings of a portfolio only (this does not apply to individual investment analysis).
Use this table to discover and evaluate the underlying company-level risk factors in your portfolio.
Multiple Risk Premiums
These charts reflect information about the returns associated with the factors within the selected Risk Model, and serve as a point of reference for investment analysis. They are not associated with investments in a list, screen, account or model.
These charts and tables are available within the Risk Factors and Risk Premium pre-built tabs within the following analytical views:
Clients & Accounts
The Risk Premium tab is a great place to start an analysis of understanding which factors have been in or out of favor in the market.The Risk Factors tab breaks down a fund and its holdings into the distribution to different factors in the selected Risk Model.
Or, use the Edit panel to access these components in a new or customized tab.
Use the Edit or New Tab buttons to create custom tabs with these components.