News & Insights Archives - Page 6 of 39

Administration Landscape Insights

As we look to the future of service delivery in the administration space, we believe supporting funds to enhance their operational efficiencies and drive down costs, the ability to integrate with non-core administration systems, technological capability and adaptability, strong contact centre capabilities, where applicable, and capacity in a merger-heavy operating environment, are key elements impacting successful administration service delivery.

Scott Abercrombie, Head of Superannuation Consulting

Any advice that SuperRatings provides is of a general nature and does not take into account an individual’s financial situation, objectives or needs. Because the information that SuperRatings receives about superannuation and pension financial products is from a number of sources, it is not guaranteed to be completely accurate. Because of this, individuals should, before acting on the information, consider its appropriateness having regard to their own financial objectives, situation and needs and if appropriate, obtain personal financial advice on the matter from a financial adviser. Before making a decision regarding any financial product, individuals should obtain and consider a copy of the relevant Product Disclosure Statement from the financial product issue.

December 15, 2022/by Camille Schmidt

Lonsec Sustainability Perspectives, News & Insights, Video

ESG Research Q&A

We found that most funds follow an ESG integration style approach while low carbon and climate dominate funds’ sustainability themes. This isn’t too surprising given we are seeing a large member focus among funds taking climate action. Another point of interest was that despite almost all respondents considering ESG factors in their investments, only a quarter of funds link portfolio manager key performance indicators to responsible investment practices.

Joshua Lowen, Market Insights Analyst
Camille Schmidt, Market Insights Manager

Any advice that SuperRatings provides is of a general nature and does not take into account an individual’s financial situation, objectives or needs. Because the information that SuperRatings receives about superannuation and pension financial products is from a number of sources, it is not guaranteed to be completely accurate. Because of this, individuals should, before acting on the information, consider its appropriateness having regard to their own financial objectives, situation and needs and if appropriate, obtain personal financial advice on the matter from a financial adviser. Before making a decision regarding any financial product, individuals should obtain and consider a copy of the relevant Product Disclosure Statement from the financial product issue.

December 15, 2022/by Camille Schmidt

Managed Accounts, News & Insights

Why did Lonsec increase its Fixed Income allocation back to benchmark?

This year has seen the largest increase in global inflation since 1980 when the OPEC oil shocks in the late 1970s caused inflation to reach over 14% in the US and above 10% in Australia.

Inflation is generally regarded as damaging to holders of cash and cash equivalent securities such as fixed-income products because their value or income received usually does not keep pace with the increased cost of goods and services. As a result, central banks hike interest rates to curb inflation. In the early 1980s the US fed funds rate peaked at 20% whilst in Australia the RBA cash rate and the 90-day bank bill rate both reached 22%. In response to this year’s inflationary breakout, we have seen the swiftest and largest series of central bank interest rate increases that now surpass the 1994 central bank rate hikes. To put this into an Australian perspective, at the end of the September quarter of last year, the RBA cash rate stood at 0.10%. A year later, towards the end of September 2022 and the rates had moved dramatically higher to an RBA cash rate of 2.35% (currently 2.85%). As a result, we have seen absolute negative returns for many fixed-income indices and products for the first time since 2008.

During a period of rising interest rates fixed-income investments that pay a fixed rate of interest, such as bonds, are not helpful for two reasons: firstly, there is an inverse relationship between a bond’s price and its yield – as interest rates increase, bonds fall in value, so bondholders can face capital losses but only if the bonds are sold prior to maturity. Secondly, the income coupon stream from fixed-rate bonds remains the same until maturity so no increase in income which occurs with floating-rate securities.

In contrast, investments that pay a variable or floating rate of return are likely to be better off in an inflationary environment, as the interest rate they pay is adjusted periodically to reflect market rates. If interest rates rise, the interest paid by the investment should also increase. Investors in these types of securities and products do like interest rate hikes as they have very little interest rate duration risk. Therefore, Lonsec believes a diversified portfolio of fixed-income strategies with a time horizon over 3 to 5 years should include both fixed and floating-rate strategies to reduce the impact of market volatility over time. Because at different stages of the investment cycle you will require both fixed and floating debt securities and products.

Lonsec recently took advantage of the rise in interest rates and higher yields to increase exposure to Fixed Income from underweight back to a neutral position. This was at the expense of Global Equities and Infrastructure. The reason for this move was that fixed-income fund managers can now buy debt securities at much lower prices than last year which over time to maturity will see a greater capital gain potential (positive returns) as the yield to maturity is now significantly higher. In addition, the US Federal Reserve and the RBA have both indicated that the pace of rate hikes may now slow, as they are nearer to the end of the current rate hike cycle. The impact of this will be felt next year as economic growth slows and inflation subsides to once again allow long bond yields to rally lower again even if they keep the cash rate elevated for a period.

IMPORTANT NOTICE: This document is published by Lonsec Investment Solutions Pty Ltd ACN 608 837 583, a Corporate Authorised Representative (CAR 1236821) (LIS) of Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but LIS has not had any involvement in the investment research process for Lonsec Research. LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN 151 235 406. Please read the following before making any investment decision about any financial product mentioned in this document.

DISCLOSURE AT THE DATE OF PUBLICATION: Lonsec Research receives a fee from the relevant fund manager or product issuer(s) for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer(s) for subscribing to research content and other Lonsec Research services. LIS receives a fee for providing the model portfolios to financial services organisations and professionals. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS and Lonsec Research and their representatives and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the Lonsec Research analyst(s).

WARNINGS: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. If the financial advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

DISCLAIMER: No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. The information contained in this document is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

Copyright © 2022 Lonsec Investment Solutions Pty Ltd ACN 608 837 583 (LIS). This document may also contain third party supplied material that is subject to copyright. The same restrictions that apply to LIS copyrighted material, apply to such third-party content.

November 30, 2022/by Lukasz de Pourbaix

Managed Accounts, News & Insights

The resilience of advice

By: Brendan Tully, Managed Account Consultant

Recently, there has been much commentary on rising interest rates and inflation and the impacts on investment returns and your clients’ outcomes. There have been very few sectors which have produced positive returns in the last 12 months and so the impacts have been felt across the range of investor profiles. No one has escaped unscathed.

It can be challenging in these conditions to feel confident that your advice is delivering value to your clients. While we like to think that we, and our clients, make rational decisions when it comes to investments, this may not be the case due to information, cognitive and time limitations. Nobel prize winning political scientist Herbert Simon proposed the concept of ‘bounded rationality’-as humans we make partly irrational decisions due to cognitive, information and time limitations. There is an abundance of information and commentary, some of it consistent, some contrary and markets and the macro environment seem to move more quickly than ever. The speed of recent inflation increases, and corresponding interest rate movements, have caught many by surprise.

With this as the backdrop, it is important to consider the context of the advised client and the role that advisors play in a service that is now of more value than ever.

Below are some possible conversations that are occurring with your clients. How do you think through and respond to these rationally?

Do I move funds to cash or dilute my current risk tolerance?

It’s not rational that you can time the markets or grasp how much downside the market has already factored in. Are we at the bottom of the cycle? Can longer term compounding inflation impacts be met by changing to a more conservative asset allocation?

During the GFC in 2008, clients moving to cash locked in an average loss of 8.5%.[1] These loses were compounded as many of these clients stayed in cash and missed the corresponding market rebound. Vanguard’s research[2] indicated that in a US diversified portfolio of 50% equities and 50% bonds, not sold down, saw an average return of 7% between pre GFC peaks and the proceeding 11 years. Understanding the long term impact of investment decisions is one of the key values of advice.

Your advice value?

Clients invest for a purpose which your advice and strategy is designed to deliver. Your value in assisting clients stay true to that course and not falling into an irrational decision cycle should not be underestimated. Has the strategy changed, are the client’s goals still relevant? Has the clients risk appetite changed, if so, is this an elastic response driven by current state or a deeper permanent shift?

Like advisors, my GP is a professional that has my long-term interests in mind, in their case my health. I am not convinced they would call my decision to reduce my prescription by half or my decision to cease all medication for an extended period a rational choice. It would be a decision not without consequence for my long-term health.

The long game.

From a client and business risk perspective is it appropriate to move in and out of client strategy in the hope that we are finding market highs and lows? There will always be market troughs and peaks and many factors outside of your control. Is it rational to make tactical moves at every market shift? In the long game your controllable’s become the client, education, communication, engagement and reaffirmation of objectives and goals and your strategy.

The importance of clarity and context

How do we recognise and replace irrational decisions with rational ones?

One solution is a considered, clear, and articulated Investment philosophy. Your Investment Philosophy is a reference point that reminds you (and your clients) of your fundamental investment beliefs. These are rational beliefs that in times of stress can be replaced with irrational ones and provides clarity when you need it most.

Lonsec has a clear investment philosophy, and every decision is made with these principles in mind. It is the guiding reference that helps provide stability, particularly in times of market upheaval. We have stayed true to these principles because it is what our clients expect, and we know it is the correct approach when playing the long game. As Roy E. Disney said, “when your values are clear to you, making decisions becomes easier.”

Be clear on your value and remind clients of this value in every conversation and decision made. Be clear in your investment philosophy, be great at revisiting goals, be good at assisting your clients in staying the course and have confidence in the resilience of your advice. Effective strategic advice creates immediate and long-lasting client value. Its positive impact will linger long after the market cycle has shifted.

[1] ‘Should you switch to cash when markets are volatile?’ Aware Super October 2019

[2] ‘The global financial crisis: Behind us but far from over’ Vanguard September 2018

Disclaimer:

Brendan Tully is a Managed Account Consultant with Lonsec Group. This information is for personal, non-commercial purposes only and is not intended to be financial product advice.

IMPORTANT NOTICE: This document is published by Lonsec Investment Solutions Pty Ltd ACN 608 837 583, a Corporate Authorised Representative (CAR 1236821) (LIS) of Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but LIS has not had any involvement in the investment research process for Lonsec Research. LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN 151 235 406. Please read the following before making any investment decision about any financial product mentioned in this document.

DISCLOSURE AT THE DATE OF PUBLICATION: Lonsec Research receives a fee from the relevant fund manager or product issuer(s) for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer(s) for subscribing to research content and other Lonsec Research services. LIS receives a fee for providing the model portfolios to financial services organisations and professionals. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS and Lonsec Research and their representatives and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the Lonsec Research analyst(s).

WARNINGS: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. If the financial advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

DISCLAIMER: No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. The information contained in this document is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

Copyright © 2022 Lonsec Investment Solutions Pty Ltd ACN 608 837 583 (LIS). This document may also contain third party supplied material that is subject to copyright. The same restrictions that apply to LIS copyrighted material, apply to such third-party content.

November 22, 2022/by Brendan Tully

Managed Accounts - Multi-Asset, News & Insights, Video

Lonsec Multi-Asset Managed Portfolios – Q3 2022

Late in the quarter, we removed our long-stranding underweight position in Australian Fixed Income back to neutral given the significant rises we have already seen in bond yields over the course of the year. While further volatility can be expected, Australian fixed-income securities are now offering better value than they have in several years and are once again able to play that defensive role in multi-asset portfolios.

Deanne Baker explains how the Multi-Asset portfolios performed over the September quarter and how they are positioned to navigate through the current volatility.

The information in this video is prepared by Lonsec Investment Solutions Pty Ltd ABN 95 608 837 583 (LIS, we, us, our), a Corporate Authorised Representative (CAR) No. 1236821 of Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL No. 421445 (Lonsec Research). Any express or implied rating or advice presented in this video is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision you must consider your financial circumstances or seek personal financial advice on its appropriateness. Read the Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product.

Past performance is not a reliable indicator of future performance. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this video, which is drawn from information not verified by LIS. This video may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material.

The information contained in this video is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. This video is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. This video is not to be distributed without the consent of LIS. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this video or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Copyright © 2022 Lonsec Investment Solutions Pty Ltd.

You may not reproduce, transmit, disseminate, sell or publish this video without our written consent.

November 10, 2022/by Lonsec

Managed Accounts - Sustainable, News & Insights, Video

Lonsec Sustainable Managed Portfolios – Q3 2022

The Lonsec Sustainable portfolios outperformed the peer group benchmark and the internal benchmark over the September quarter. Dynamic asset allocation added value thanks mostly to the underweight position in fixed income. Rising interest rates saw real assets bear the brunt of the volatility in Q3, with the exposure to REITs and listed infrastructure detracting from peer relative performance.

While energy was again the top-performing sector, information technology and healthcare were not too far behind. As fears of recession grow, investors have turned towards defensive sectors including healthcare, which benefited the portfolios given that many companies in the sector can contribute positively towards the United Nations Sustainable Development Goals, particularly through SDG3 Good health and well-being. The outperformance of the highest carbon-emitting sectors (such as energy and resources) since the start of the year does, however, remain the key driver of portfolio underperformance over the 12 months to September.

The information in this video is prepared by Lonsec Investment Solutions Pty Ltd ABN 95 608 837 583 (LIS, we, us, our), a Corporate Authorised Representative (CAR) No. 1236821 of Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL No. 421445 (Lonsec Research). Any express or implied rating or advice presented in this video is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision you must consider your financial circumstances or seek personal financial advice on its appropriateness. Read the Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product.

Past performance is not a reliable indicator of future performance. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this video, which is drawn from information not verified by LIS. This video may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material.

The information contained in this video is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. This video is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. This video is not to be distributed without the consent of LIS. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this video or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Copyright © 2022 Lonsec Investment Solutions Pty Ltd.

You may not reproduce, transmit, disseminate, sell or publish this video without our written consent.

November 10, 2022/by Lonsec

Managed Accounts - Retirement, News & Insights, Video

Lonsec Retirement Managed Portfolios – Q3 2022

It has been another challenging quarter for multi-asset investors with both equity and bond markets for the most part continuing their declines. High inflation prints, aggressive central bank policy tightening, and fears of recession are driving extreme market volatility. However, the Retirement portfolios have weathered the storm relatively well. Whilst we haven’t been able to protect investors from all the losses, the portfolios managed to outperform the peer group benchmark and internal benchmark and remain well ahead on a relative basis over the 12 months to 30 September 2022.

While the portfolios’ capital component of returns has been volatile, the yield component has continued to deliver a level of stability for retirees. From an income perspective, the portfolio has delivered in excess of the 4% income target through the cycle (3-5 years). Pleasingly, income was sourced from a wide range of strategies and asset classes, from equities to infrastructure, emerging market debt, and option premia.

The information in this video is prepared by Lonsec Investment Solutions Pty Ltd ABN 95 608 837 583 (LIS, we, us, our), a Corporate Authorised Representative (CAR) No. 1236821 of Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL No. 421445 (Lonsec Research). Any express or implied rating or advice presented in this video is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision you must consider your financial circumstances or seek personal financial advice on its appropriateness. Read the Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product.

Past performance is not a reliable indicator of future performance. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this video, which is drawn from information not verified by LIS. This video may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material.

The information contained in this video is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. This video is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. This video is not to be distributed without the consent of LIS. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this video or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Copyright © 2022 Lonsec Investment Solutions Pty Ltd.

You may not reproduce, transmit, disseminate, sell or publish this video without our written consent.

November 10, 2022/by Lonsec

Managed Accounts, News & Insights

A time to reset back to ‘normal’

For the past 10 years investors have become accustomed to double digit returns from equities and low market volatility. As interest rates normalise we are heading into a different market environment characterised by higher volatility and greater dispersion in returns between stocks. For some investors the last 10 years’ market environment is all they have known, while for others what markets were like prior the global financial crisis of 2008 is a distant memory.

We would argue that the past 10 years which was characterised by record low interest rates and ample liquidity, was not a normal market environment. In fact, it was an anomaly resulting from extreme unconventional monetary policy settings aimed at avoiding a deep recession or a global depression following the breakdown in financial systems in 2008. As central banks sailed down the path of quantitative easing (QE), at the back of their minds they were scratching their heads as to what will be their exit strategy from QE. Roll forward to today and inflation has given central banks their exit strategy, with key central banks raising interest rates and tapering their respective QE programs in order to stem demand and dampen inflation.

The move towards higher interest rates is a rest for the global economy and markets. Debt has become more expensive and companies which existed due to readily available cheap debt are disappearing or at a minimum being repriced aggressively. In this environment we are likely to see the strong get stronger and an increase in merger and acquisition activity as cashed up companies look for opportunities to grow their market share by acquiring companies with weaker balance sheets.

From a portfolio perspective, in this period of transition the traditional 60/40 portfolio has suffered as both equities and bonds have repriced as interest rates and bond yields have risen. So, does this mean that the traditional ‘balanced’ portfolio is dead? Our view is that the transition to higher interest rates will be painful however that as we reset to a more ‘normal’ market environment a ‘balanced’ style portfolio made up of equities, bonds and other assets such as alternatives will come back into vogue. In recent years a strategy of simply having an overweight to equities has been a winning strategy. However, we expect greater market volatility will make investing in equities less clear-cut and investors will need to be more discerning as to the companies they hold. Furthermore, the ‘unsexy’ world of bonds will become more interesting as bond yields rise and the relative attractiveness of bonds to equities increases.

We believe that we are heading back to markets of old where investors should expect single digit equity returns over the long term and higher levels of market volatility. In terms of total portfolio returns, we expect that diversification will become more critical and bonds will play a greater role in contributing to portfolio returns in the future.

IMPORTANT NOTICE: This document is published by Lonsec Investment Solutions Pty Ltd ACN 608 837 583, a Corporate Authorised Representative (CAR 1236821) (LIS) of Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but LIS has not had any involvement in the investment research process for Lonsec Research. LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN 151 235 406. Please read the following before making any investment decision about any financial product mentioned in this document.

DISCLOSURE AT THE DATE OF PUBLICATION: Lonsec Research receives a fee from the relevant fund manager or product issuer(s) for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer(s) for subscribing to research content and other Lonsec Research services. LIS receives a fee for providing the model portfolios to financial services organisations and professionals. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS and Lonsec Research and their representatives and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the Lonsec Research analyst(s).

WARNINGS: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. If the financial advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

DISCLAIMER: No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. The information contained in this document is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

Copyright © 2022 Lonsec Investment Solutions Pty Ltd ACN 608 837 583 (LIS). This document may also contain third party supplied material that is subject to copyright. The same restrictions that apply to LIS copyrighted material, apply to such third-party content.

November 2, 2022/by Lukasz de Pourbaix

News & Insights

Media release: Perpetual Asset Management and Hostplus named major award winners

Lonsec and SuperRatings announced the winners of this year’s Fund of the Year Awards at an awards ceremony in Melbourne on Wednesday night.

The Lonsec Manager of the Year was awarded to Perpetual Asset Management in recognition of its well-established investment philosophy and process, as well as a long standing and strong investment culture.

“Perpetual Asset Management has been committed to its investment style and maintained its approach through multiple investment cycles. It has also broadened its exposure across asset classes and built out its focus on ESG,” said Lonsec Research Executive Director, Lorraine Robinson.

Amanda Gillespie, Perpetual Asset Management Australia Group Executive, said “It’s a tremendous honour to be awarded both the Lonsec Fund Manager of the Year and the Lonsec Multi Asset Fund of the Year, being recognised for our true-to-label approach, broadened investment management capabilities and ESG credentials.”

In a new category introduced this year, the Lonsec Sustainable Fund of the Year was awarded to the Martin Currie Ethical Income Fund. ‘The Martin Currie fund excels at both ESG and Sustainability and has delivered consistent excess returns over the last few years so is a worthy winner of this award,’ continues Lorraine Robinson.

To celebrate the great innovation and development taking place within the industry, Lonsec also recognised the T. Rowe Price Global Impact Equity Fund with the Innovation Award. ‘T. Rowe Price is leading the way in mainstreaming ESG investment strategies and offers a glimpse into the next leg of evolution to dark green products.”

“It was wonderful to be able to celebrate in person this year. Congratulations to Perpetual Asset Management and all the other winners and nominees in this year’s awards.”

The SuperRatings Fund of the Year went to Hostplus, recognising the fund’s strong results across our key assessment areas.

“Each year we examine funds’ end to end offerings across MySuper, Member Choice and Pension offerings to choose the Fund of the Year. Hostplus was competitive across the key metrics of net benefit, member servicing and engagement, as well as providing a broad offering from low cost investing right through to a tailored retirement proposition,” said SuperRatings Executive Director, Kirby Rappell.

Hostplus also received the MyChoice Super of the Year Award for its continued uplift across digital services, whilst executing strategic initiatives to make it easier for advisers to engage with the fund.

David Elia, Hostplus Chief Executive Officer, said “We are honoured to be recognised and awarded SuperRatings’ 2023 Fund of the Year. At Hostplus our members’ best financial interests are at the core of our decision making and the net benefit we provide to them at retirement.”

SuperRatings also announced its MySuper of the Year Award, with CareSuper winning this category. CareSuper also received the Smooth Ride Award, reflecting its focus on risk management and strong outcomes on a risk-adjusted basis. “CareSuper continues to generate strong net benefit outcomes, while also providing a competitive default insurance offering and is a worthy recipient of the MySuper of the Year Award.” said Kirby Rappell

TelstraSuper was awarded Pension of the Year. “TelstraSuper was selected based on the strength of the tailoring within its retirement solution, focus on innovation and digital capabilities, coupled with its strong advice and support services,” said Kirby Rappell.

“It is an honour to continue to recognise the best in the superannuation sector and award those funds which, in the last year, have helped their members to navigate an increasingly volatile landscape.”