Lonsec’s research process follows a structured framework of assessing a range of qualitative and quantitative factors and scoring these attributes relative to other financial products within the same sector. Lonsec does not believe there is a single ‘best’ way to manage money, meaning the research process we apply accommodates a range of investment approaches and styles.
We believe that investment research should be forward-looking and qualitatively skewed. Accordingly, qualitative factors generally account for 80% of the rating for most mainstream asset classes, with Lonsec’s assessment of people and process having the greatest impact on the research outcome.
Within the quantitative component, generally contributing 20% of the research outcome, there is an emphasis on the quantum and consistency of returns, the degree of ‘activeness’ to deliver alpha, the volatility of returns and the defensiveness of the financial product over three years and beyond.
Our team of investment analysts work directly with you to determine your fund’s capabilities and ability to meet your investment objectives.
Initial engagement and operational check of fund.
Execution of agreement and commencement of research process.
Quantitative information sourced from our data providers. Qualitative information sourced via questionnaire.
Formal due diligence conducted with the fund’s key personnel and at least two Lonsec analysts.
Follow-up questions and information via phone, video and further meetings as required.
Proposed ratings are debated with a quorum of senior analysts voting on the final ratings outcome.
Report and financial product rating is published and made available to all Lonsec subscribers.
Learn more about how our investment research team can work with you to ensure your investment product becomes a member of the Lonsec rated universe.
Call us on 1300 826 395 or email info@lonsec.com.au.
Peer Review Committees are held following the review of each sector or financial product and are open to all analysts within the Lonsec Research team. Utilising the Lonsec ratings model all financial products and the proposed ratings are tabled at these meetings. The model forms the basis of all ratings discussions in order to leverage the knowledge and experience of Lonsec’s senior people.
Our investment product reviews and ratings represent an objective assessment of a product’s ability to meet its stated objectives, allowing you to compare products across a wide range of qualitative and quantitative factors.
Engage our investment consultants to take your investment product strategy to the next level. Leverage our expansive financial product knowledge and research to enhance your asset allocation, manager selection and governance structures.
Important information: Any express or implied rating or advice is limited to general advice, it doesn’t consider any personal needs, goals or objectives. Before making any decision about financial products, consider whether it is personally appropriate for you in light of your personal circumstances. Obtain and consider the Product Disclosure Statement for each financial product and seek professional personal advice before making any decisions regarding a financial product.