Lonsec’s investment research driven approach to portfolio construction
is underpinned by four key beliefs:
A dynamic approach to portfolio management to achieve investment objectives while managing downside risk.
Investing in high quality investments underpinned by Lonsec’s extensive research.
A strong risk management culture supported by a rigorous governance process.
A diversified approach to portfolio construction.
Smoothing out returns by forgoing some potential upside, whilst limiting the downside, will result in superior long-term performance. Philosophically aligned to this belief, our portfolios are designed to keep pace with market returns while outperforming the market during a downturn.
Lonsec’s investment process combines a dynamic approach to asset allocation
with active investment selection.
A key part of our portfolio construction process is to establish an asset allocation based
on the objectives set for the portfolios. Lonsec applies a dynamic approach to asset allocation designed to manage portfolio risk as well as enhance portfolio returns over the medium term. Lonsec’s dynamic asset allocation process focuses on three key factors:
Lonsec utilises a range of valuation metrics to assess whether asset classes are expensive or offer value over the long term.
Lonsec analyses whether the business cycle is in an expansionary or contractionary phase by assessing a range of macro-economic indicators.
Lonsec observes a range of indicators to determine short term market sentiment.
Lonsec believes that a strong governance framework is critical in making effective portfolio decisions. Having an investment committee process governed by an investment committee charter and comprised of experienced investment professionals with diverse areas of expertise, reflects best practice in portfolio construction decision making.
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.