Do not invest more money than you can afford to lose.
Saxo Bank, a Danish bank specialized in providing online trading services, said on Tuesday it has partnered with investment research provider Morningstar Investment Management to include value-based stocks to its strategies offering available at the SaxoSelect investment portfolio solution. Initially, the new portfolio will be available to clients in the Nordic countries, the Netherlands, Italy and across Central and Eastern Europe.
The portfolio is named Saxo Morningstar MOAT Portfolio and offers a smart and cost-effective way to invest in a portfolio of stocks based on Morningstar’s Economic MoatTM Rating methodology and valuation research. Only stocks trading at a large discount to certain estimates are included in the portfolio.
“Our SaxoSelect offering is underpinned by the belief that technology will profoundly change the asset management industry, a sector particularly ripe for disruption. Access to technology, demand for transparency, and focus on performance will change the way individuals manage their savings,” CEO and co-founder of Saxo Bank Kim Fournais said.
Stocks included in the portfolio are taken from 33 exchanges and are selected using Morningstar’s criteria. The companies added are rated either Wide Moat, meaning they have earned high returns on capital for at least 20 years, or Narrow Moat (for at least 10 years). This is the first such portfolio in Europe to offer access to Wide and Narrow MOAT rated companies, as classified by Morningstar.
“Technological development continues to transform the investment landscape, helping firms develop scale by combining the complementary strengths of different participants. Our collaboration with Saxo Bank combines our equity research into an effective and efficient portfolio offering that is available to a wide audience,” said Simon Ewan, managing director at Morningstar Investment Management Europe.
Although the portfolio will be reviewed by Morningstar Investment Management, if necessary it will be rebalanced by Saxo Bank at the end of each quarter. Overall, stocks will be replaced from the portfolio only if there is an alternative which offers a 25% improvement in its price to fair value.
SaxoSelect, released in early 2016, is an online automated trading and investment service for long-term investors. Investment strategies three different risk levels – defensive, moderate, aggressive. SaxoSelect is available on SaxoTraderGO, the mobile in-house trading platform of Saxo Bank.
Saxo Bank holds a banking license from Denmark’s Financial Supervisory Authority (FSA) and acts as a brokerage firm and a market maker, offering trading in more than 30,000 instruments, including forex, binary options, contracts for difference (CFDs), stocks, futures, and bonds. It also offers traditional banking services through its unit Saxo Privatbank. The group works with retail and institutional clients alike via 25 offices and has subsidiary companies across Europe, Asia and the Middle East, Australia, South America, and South Africa.
