Investment Product Ratings
Lonsec’s financial 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.
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.
Our super fund ratings
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.
Silver
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.