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Overview
Portfolio X-Ray is a powerful analysis tool from Morningstar that provides a comprehensive view of your investment portfolio. It evaluates your holdings across multiple dimensions such as asset allocation, sector exposure, geographic distribution, and investment style. This helps you identify concentration risks, hidden overlaps, and diversification gaps so you can make more informed investment decisions.
This type of analysis is particularly useful when portfolios contain multiple funds, ETFs, or a mix of securities, as it reveals the true underlying exposures beyond surface-level allocations.
Accessing Portfolio X-Ray
Select a client and hover over the Reports tab. Select Portfolio Analysis from the drop-down. This will open the X-Ray page.
From the top left corner users can access the View Holdings & Benchmarks button. This shows a list of Australian Shares and Managed Funds registered with Morningstar.
These can be viewed as:
Amount - The Dollar value of shares
Weight - The Percentage shares
Units - The Quantity of shares
Once this tab is expanded, there is also a Search option to search and add investments
A list of benchmarks can also be selected by searching or selecting from a drop-down menu beneath the Benchmark heading, which when selected, is applied to the portfolio tiles for current portfolio comparison:
Stock Sector
Stock Region
Stock Stats
Performance Graph
Trailing Returns
Generate Report button, on the top right of the page, generates the Portfolio X-Ray as a PDF file.
Selecting the Generate Report button will activate the options users want to show in the report. Users can choose the documents they want included, as well as set the Cover Page and Adviser and Practice details. All the fields are optional, and the cover page can be deselected to omit from the report.
📌Note
Portfolio X-ray pulls data from the Assets tab. Assets are assessed as a whole rather than on a transactional level.
📌Note
Only assets included in the Morningstar Fund report are assessed by Portfolio X-Ray. Specifically, only Managed Funds and Australian Shares are taken into consideration, as these are registered with Morningstar.
📌Note
The data from registered assets (Managed Funds & Australian Shares) flows into Asset Allocation, Stock Sectors, Stock Regions, Stock Stats, and Stock Style tiles.
Asset Allocation
Asset Allocation allows Portfolio X-Ray to scan all the assets available within the Assets tab (Australian Shares and Managed Funds), and registered with Morningstar. Based on this, the tile allocates an asset class to the portfolio.
Stock Sectors
Stock Sectors classifies the equity portion of the portfolio under three categories:
Cyclical - A cyclical stock is affected by macroeconomic or systematic changes in the overall economy. Cyclical stocks are known for following the cycles of an economy through expansion, peak, recession, and recovery. Example: Real estate, Financial services, etc.
Sensitive - Stocks that are not heavily impacted by changes in economy but do tend to move in line with them. Example: Communication, Energy, Technology, Manufacturing, etc.
Defensive - A defensive stock is one that provides consistent dividends and stable earnings regardless of the state of the overall stock market. There is a constant demand for their products and is immune to economic cycles. Example: Healthcare, Utilities, Food, etc.
Stock Regions
Stock Regions illustrates the presence of the portfolio across geographic regions and is depicted on the world map. It is controlled by a three tabs section on top of the Tile - Greater Asia, Greater Europe, and Americas.
This tile allows the advisors to gain a quick overview of the portfolio weight for a specific geographic region. An advisor uses this information to take meaningful client-centric decisions and prepare himself for the financial market fluctuations across different geographies. The benchmark field provides the stats of the benchmark as selected in “View Holdings and Benchmark” field and assist in comparing gaps between current and benchmark portfolios.
Stock Stats
The Stock Stats tile calculates ratios.
Price/Prospective Earnings - Relates a company's share price to its earnings per share.
Price/Book Ratio - Measures the market's valuation of a company relative to its book value.
Price/Sales Ratio - Compares a company’s stock price to its revenues.
Price/Cash Flow Ratio - Measures the value of a stock’s price relative to its operating cash flow per share.
Performance Graph
This tile shows the portfolio's performance over a period. The existing portfolio is assumed to be present in previous periods of the year to show portfolio performance. A performance graph can be seen for the past 1 year, 2 years, 3 years, 5 years, and 10 years by selecting these parameters from the drop-down.
Trailing Returns
A trailing return looks backward from a particular date for a fund's annualized return over a specific time period - usually ending on the last day of the month, quarter, or year.
This tile shows Trailing returns of the Portfolio for the last 1 Month, 3 Months, 6 Months, 1 Year, YTD, 3 Years Annualised, 5 Years Annualised and 10 Years Annualised.
Stock Style
Different investment styles often have different levels of risk, which lead to differences in returns. This tile is a crucial indicator for style exposure, allowing users to make calculated decisions about risk exposure.
For stock funds, the style box represents the portfolio's style, based on the value-growth orientation of the stock holdings as Value, Blend, and Growth, with funds classified as Large-cap, Mid-cap, or Small-cap based on the market capitalization of the fund’s stock holdings.
It creates a matrix of Portfolio Style and holding into nine possible combinations of these characteristics.
Fixed Income Style
The Fixed Income tile represents duration, interest-rate sensitivity, and credit quality for bonds. The Fixed income style box is displayed both in the case of a bond-based fund or balanced fund.
Style Box
Interest Rate Risk
Interest rate risk is the potential that a change in overall interest rates will reduce the value of a bond or other fixed-rate investment. It reflects average effective maturity, average effective duration and average credit quality.
Fixed income details for bond funds represent duration, or interest-rate sensitivity (short, medium, or long), and credit quality (high, mid, or low).
Credit Quality
Displays the Credit Quality of the Bonds in the portfolio, AAA being the highest rating, Below B being lowest and NR is Not recognized.
Fees and Expenses
Depicts the weighted average fee and management fees for portfolios.
Portfolio Holdings
Highlights the holding of the client’s portfolio. This is divided into two tabs
Top holdings - Shows the clients' top portfolio holdings.
Stock Overlap - A stock that is owned independently, as well as under a managed fund, or a custom product, or as a part of multiple funds, will appear here.
📌Note
Since transaction-level data is not used while screening of assets in Portfolio X-Ray, calculation of past performance and performance graph is based on a hypothetical performance illustrator. It assumes the same portfolio was available in the past as well.
Portfolio X-Ray will be provided as access management just like “Client Access”. As a product development feature, Portfolio X-Ray will by default be switched off for all the clients of the user.
Portfolio X-Ray offers visibility to the individual client portfolios as well multiple portfolios to help the adviser have a clear understanding of how all the individual portfolios are performing.