Saxo Bank joins forces with Morningstar to launch new value strategy

Danish Saxo Bank has joined forces with Morningstar in order to launch a new SaxoSelect strategy, offering investors access to a concentrated portfolio of value stocks.

The new strategy will invest in a portfolio of 30 stocks based on Morningstar’s Economic Moat Rating methodology, which aims to identify stocks undervalued by the market. The portfolio also aims to combine wide and narrow moats.

Wide moats are being defined by Morningstar as companies are in a good position to fend off competitors and earn high returns on capital for at least 20 years while companies with narrow moats hold this position for at least 10 years.

Initially invested with equal weighting, the portfolio will be reviewed by Morningstar Investment Management and rebalanced by Saxo Bank if necessary at the end of each quarter.

Simon Ewan, managing director at Morningstar Investment Management Europe, comments: “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.”

The collaboration with Morningstar provides an extension of Saxo Bank’s existing SaxoSelect strategy, which also offers balanced portfolios based on iShares ETFs and Active Trading Strategies aimed at experienced investors.

The Saxo Morningstar MOAT portfolio will initially be available to SaxoSelect clients in the Nordic countries, the Netherlands, Italy and across Central and Eastern Europe.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

Read more from Mona Dohle

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