Investment product ratings

Our rigorous ratings system provides financial advisers with the insights they need to support their clients’ investment objectives. Our ratings are underpinned by our peer review process, which draws on the full expertise of our investment research team.

Lonsec ratings definitions

The rating system designates financial products under the categories of Highly Recommended, Recommended, Investment Grade, Fund Watch, Redeem and Screened Out. These ratings reflect Lonsec’s degree of conviction in the financial products’ ability to generate risk adjusted returns in line with relevant objectives.

Our managed fund ratings

Highly Recommended

The Highly Recommended rating indicates that Lonsec has very strong conviction the financial product can generate risk adjusted returns in line with relevant objectives. The financial product is considered a preferred entry point to this asset class or strategy.

Recommended

The Recommended rating indicates that Lonsec has strong conviction the financial product can generate risk adjusted returns in line with relevant objectives. The financial product is considered an appropriate entry point to this asset class or strategy.

Investment Grade

The Investment Grade rating indicates that Lonsec has conviction the financial product can generate risk adjusted returns in line with relevant objectives. However, if applicable, Lonsec believes the financial product has fewer competitive advantages than its peers.

Screened Out

The Screened Out rating indicates that Lonsec currently does not have conviction that the financial product can generate risk adjusted returns in line with relevant objectives. The financial product currently has insufficient competitive advantages relative to its review peer group (if applicable).

Fund Watch

The Fund Watch rating indicates that no new investment into this financial product is recommended. A significant change has occurred with the financial product and a detailed assessment of the change is needed and / or series of rectifying actions required prior to this rating being changed.

Redeem

The Redeem rating indicates the financial product is no longer considered worthy of investment for any time period and investors should immediately redeem units from the financial product, subject to seeking financial advice.

Our direct equity ratings

Approved

The Approved rating indicates that Lonsec believes the financial product can generate risk adjusted returns in line with relevant objectives. If applicable, the financial product provides an adequate means for investors to gain exposure to the underlying assets.

Not Approved

The Not Approved rating indicates that Lonsec believes the financial product cannot generate risk adjusted returns in line with relevant objectives. If applicable, the financial product does not provide an adequate means for investors to gain exposure to the underlying assets.

Super fund ratings definitions

Platinum

A best value for money superannuation fund that is well balanced across all key assessment criteria – investments, fees and charges, insurance, member servicing and administration in a robust, secure and proven governance / risk framework. These funds provide features that should assist most individuals meet their retirement goals.

Gold

A good value for money superannuation fund that is strong in nearly all assessment areas but with average features and / or performance in one or more of our assessment criteria.

Sliver

A reasonable value for money superannuation fund that is performing well in a number of assessment areas but with average or below average features and / or performance in a number of other areas of our assessment.

Other

An Other rated fund usually has average or below average features and / or performance across a number of assessment areas. These funds frequently have many competitors that offer superior performance and structures in a more efficient environment.

Previous winners

Listed Fund Award

Awarded to the fund most committed to addressing its environmental and ethical responsibilities.

View previous winners

2018 MCP Master Income Trust

Rising Star Award

Awarded to the fund with the best value for money offering for engaged members.

View previous winners

2018 Lennox Capital Partners Pty Ltd

Disruptor Award

Awarded to the fund that adds the most value to members through innovative products and services.

View previous winners

2018 BetaShares Australia 200 ETF

Innovation Award

Awarded to the fund with the best value end-to-end product offering.

View previous winners

2018 Magellan Global Trust

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.