SaxoSelect Equity Portfolios

Turn Insights into
Investments

Invest in a global portfolio of 30 quality stocks actively managed and rebalanced by Saxo Bank in collaboration with Morningstar.

In collaboration with
Morningstar

Get Started with SaxoSelect Equity Portfolios

Combining Research and Technology

We have collaborated with Morningstar, Inc. to transform its trusted independent research into actionable investment opportunities through our leading trading technology.

SaxoSelect Equity Portfolios enables you to conveniently acquire a diversified portfolio of 30 quality stocks based on Morningstar’s research and proven value investing methodology.

Explore the Benefits

Expertise

Benefit from the expertise of two leading financial institutions and gain access to an actively managed stock portfolio built on the principles of value investing.

Diversification

Spread your risk across sectors and countries through this portfolio of 30 quality stocks specifically selected by Morningstar.

Ownership

Achieve full visibility and control over each of the stocks in your portfolio anytime from your SaxoTraderGO account.

Convenience

Save time by selecting this actively managed global equity portfolio that has been built in collaboration with Morningstar.

Additional Information

Estimating Fair Value

Discover how Morningstar determines the intrinsic value of a stock over the long term. Watch video


Identifying Competitive Advantages

Learn how Morningstar identifies companies capable of delivering long-term returns. Watch video


Product Fact Sheet

Gain a deeper understanding of how SaxoSelect Equity Portfolios works. Download pdf


Equity Research Methodology

Read a comprehensive overview of the process Morningstar uses to evaluate stocks. Download white paper


What makes a Moat

Learn how Morningstar calculates its Morningstar® Economic MoatTM Ratings. Download white paper


Benefits of Diversification

Learn about diversification’s favourable effect on risk and returns. Download white paper

FAQ

Learn more about this product and our collaboration​ with Morningstar.​

What is SaxoSelect​?

SaxoSelect is a fully digital and automated investment service that enables clients to invest in a wide variety of investment and trading strategies directly from their trading platform.

When you open a SaxoSelect investment, it is automatically established in a new account in the currency of the portfolio and the investment amount is transferred from your default account. SaxoSelect follows an account managed by an expert trader or fund manager and automatically copies trades on the managed account to your SaxoSelect account with minimum latency.

SaxoSelect offers three types of strategies:

Trading Strategies​
Trading Strategies ​follow the accounts of accomplished traders with a proven trading records and offer high risk/rewards on aggressive trading strategies. The strategies typically follow a theme such as Commodity Focus and Charts & Patterns - following technical trade signals, but are also discretionary following the instincts of the expert trader.

Equity Portfolios
Equity Portfolios contain stocks and are managed by portfolio managers. The Saxo Morningstar MOAT® portfolio is built on Morningstar MOAT®​ methodology and is managed and implemented by Saxo Bank.

Balanced Portfolios
Balanced Portfoliosfor the long term investors containing portfolio of Stock and Bond ETFs built on BlackRock research. These portfolios offer attractive investment opportunities and are also ideal as repositories of funds used for margin trading, where a percentage of the value of the portfolio’s investments can be used as collateral for trading margin products such as FX, CFDs and futures.​

How are stocks selected for the portfolio?

Morningstar Investment Management Europe provides a model global portfolio of 30 equities which Saxo Bank manages through the Saxo Morningstar MOAT® Portfolio.

Stocks in the portfolio are selected from 33 exchanges which qualify for inclusion using the Morningstar Economic Moat®​ methodology. Only companies which Morningstar believes have a sustainable competitive advantage will be included.  These companies are in a good position to fend off competitors and potentially earn high returns on capital for at least 20 years (Wide Moat) or 10 years (Narrow Moat).  Stocks are then evaluated using fundamental analysis to arrive at fair value estimates and only those trading at a large discount to these estimates are included in the portfolio.

How is the portfolio rebalanced?

At the end of each quarter, the portfolio will be reviewed by Morningstar Investment Mangement Europe and rebalanced by Saxo Bank if necessary. To reduce the number of stocks replaced and the associated trading costs, the portfolio only replaces stocks if an alternative can be found which offers a 25% improvement in its price to fair-value. The rebalancing to target weights is also subject to a buffer to minimize transaction costs.

All rebalancing will automatically be ​reflected in your portfolio. ​

What is Morningstar Economic Moat®?

Economic moats represent sustainable competitive advantages that allow companies to protect their value and lead to excess returns over a long-term investing horizon.

Eligible stocks for the portfolio are further rated using Morningstar Economic Moat® methodology to qualify their competitive advantage based on 5 principles:

  • Switching Costs – companies whose customers are locked in due to high costs of switching to a competitor;
  • Network Effect - companies with goods or services where the value of the product increases with the number of users using the goods or service;
  • Intangible Assets – patents, government licenses and valued brands associated with a company that give it an advantage over its competitors;
  • Cost Advantage – companies which can produce goods or services cheaper than their competitors allowing them to undercut their competitors or achieve higher profitability;
  • Efficient Scale – benefits companies in markets that support only few competitors.​

Stocks included in the Saxo Morningstar MOAT® Portfolio must have a ‘Wide’ or ‘Narrow’ Moat, demonstrating a sustainable competitive advantage being expected to fend off competitors and earn high returns on capital for at least 20 years (Wide Moat) or 10 years (Narrow Moat). ​

What are the costs?

Low Trade Commission

Saxo charges a low trade fee of 0.06% of the value of each trade, subject to a minimum of 2 EUR or the approximate currency equivalent with no custody fee.

Low Service Fee

Saxo charges a service fee of 0.75% p.a. (incl. VAT), calculated on the closing value of your portfolio at the end of each day and charged at the end of each quarter.  ​

Conversion costs

The Saxo Morningstar MOAT® Portfolio is subject to a special low conversion fee of 0.2% which is applied to the value of trades in currencies other than the portfolio currency (EUR).

Transfers to and from the Saxo Morningstar MOAT® Portfolio investment account in currencies other than the portfolio currency (EUR) are subject to Saxo Bank’s standard conversion fee of 0.5%.

Who manages the portfolio?

Saxo Bank manages the Saxo Morningstar Moat®​ Portfolio based on a portfolio of 30 global stocks selected by Morningstar Investment Management Europe Ltd.  Selection is made from the universe of stocks that have been awarded a Wide or Narrow Moat Rating by Morningstar equity analysts.​
​​

How do I invest in Saxo Morningstar MOAT®​ Portfolio?

You can directly invest in any SaxoSelect portfolio through the SaxoTraderGO or the SaxoTrader trading platforms. The available SaxoSelect portfolios are shown in the SaxoSelect tab in the platform which gives a full description, the performance and statistics and an overview of the investments in the portfolio.

To open an investment in the trading platform:​

  1. Click the INVEST button on the strategy you want to invest in.
  2. If necessary, you will be led through a short suitability test:
    Note: you are only allowed to invest in portfolios where you are deemed to have the necessary knowledge, assets, experience and risk awareness for the portfolio.
  3. The Investment module allows you to select the size of your investment.

When you have completed the investment process, SaxoSelect creates a dedicated account for the portfolio and places the individual investments in this account within seconds (if the market is open), opening your portfolio very quickly. ​

Where do I monitor and manage my portfolio?

Portfolio management
Active portfolios are monitored in the Portfolios List which allows you to monitor returns, adjust the size of your investment or stop the portfolio.​

Your portfolio performance
You can monitor the performance of your portfolios in the Account Overview page in SaxoTraderGO. This page includes: .​​

  • details of your account
  • a chart of the development of your account value
  • a chart of the time-weighted performance
  • a monthly profit overview
  • statistics on the performance of you investment since it was opened

Individual investments
Individual investments can also be monitored under positions – note that you can’t manage or adjust individual positions in a portfolio independently.​.​

How do I stop my investment?

To stop a portfolio, click the Stop​ button on the portfolio in the Portfolio list in your SaxoTraderGO or SaxoTrader platform.​

You will be given the choice of closing the positions (default) or keeping your existing positions.

NOTE: if you decide to keep the positions it becomes your own responsibility to manage and close them manually.

Can I restart my investment after I have stopped?

Yes you can re-start your investment in the trading platforms from the Portfolio list using the Restart button​. You must reconfirm that your financial situation has not materially changed since you last invested and you will need sufficient funds available to cover the minimum investment required.

Can I invest more into an existing portfolio?

You can invest additional funds in a portfolio by clicking the Manage > Deposit Funds​ buttons on the strategy in the Portfolio list in your SaxoTraderGO or SaxoTrader platform.

You can add a minimum of 5,000 in the base currency of the strategy. The strategy will allocate your additional funds as best it can, but be aware that it may not be a precise allocation if the amount is not precisely devisable amongst the individual investments.

How do I withdraw funds?

To withdraw funds for the portfolio, you must first Stop the portfolio. It is not possible to withdraw funds that are part of an active portfolio.

You can withdraw free funds from the SaxoSelect account to one of your other trading accounts by clicking the Manage > Withdraw Funds ​buttons.

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