Get your fund rated
Benefit from a Lonsec rating
Lonsec has been in the ratings game for over 30 years, rating everything from equity funds to LIT/LICs and Super options and our direct equities research in the ASX200. In recent times we have expanded our coverage to include Private Markets and products issued under Information Memorandum. We now cover over 1700 products and that number continues to grow very strongly.
We understand the power of trusted and objective investment insight and how it can drive better outcomes for end investors. A rating from us can give financial advisers the confidence that a product meets its objectives and may be suitable for their clients. And a rating from Lonsec is often the first step in the process of getting funds into model portfolios and onto approved product lists and platforms.
The Lonsec approach to research and ratings
Over the past 30 years, we have developed a tried and tested methodology to evaluate funds that looks at everything from the investment team to the sustainability of the business, fees and performance to give a holistic, qualitative assessment of the fund.
We believe that investment research should be forward-looking and qualitatively skewed. As such, 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.
Our rigorous research process is skewed towards qualitative factors
High-level sector review
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Key Inputs
PDS & Additional manager material
Lonsec corporate FSC questionnaire
Face-to-face meetings
Performance data & Lonsec’s rating model
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80%
20%
Qualitative assessment
People & resources
Investment philosophy (style)
Research process
Portfolio construction
Risk management
Lonsec financial product review
Quantitative assessment
Historical performance data
Risk & return metrics
Consistency of performance
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Peer review
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Ratings & report published
A key component of the research process is our robust scoring models that have been developed over time and are reviewed on an ongoing basis by senior members of the Lonsec Research team. These scoring models are dependent upon by both data collected as part of the review process and the expertise of the analyst team in assessing the information gathered.
It’s important to note that these models are not a replacement for the human intellectual capital of our researchers but are to ensure that we consistently apply the Lonsec ‘house views’ to each and every fund that we rate.
Trusted by financial advisers
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.
Find out more
To find out more, get in touch with Tom Akay.