Financial advice is changing

As demand for high quality, affordable financial advice grows and super funds begin to step away from offering comprehensive financial advice under their own licence, the role of the independent financial adviser has never been more important.

Investment Options Ratings

By ensuring your funds investment options are rated by Lonsec, you are equipping financial advisers with the necessary tools to enable them to fully understand your investment process, match your product to their clients’ needs, and fulfil their best interest duty.

Increase your funds exposure to financial advisers

Lonsec’s ratings and research are distributed to over 4,800 financial advisers via our research platform iRate®.

The iRate® platform also provides access to SuperRatings’ super fund research, which allows advisers to access the information they need to match your fund to their client’s needs.

The ratings process

How we engage with you: Our team of analysts work directly with you to determine your fund’s capabilities and ability to meet your investment objectives.

  • Engagement

    Initial engagement and operational check of super fund.

  • Agreement

    Execution of agreement and commencement of research process.

    Agreement

  • Data collection

    Quantitative information sourced from our data providers. Qualitative information sourced via questionnaire.

  • Onsite review

    Formal due diligence conducted with the super fund’s key personnel and at least two SuperRatings analysts.

    Onsite review

  • Follow up

    Follow-up questions and information via phone, video and further meetings as required.

  • Peer review

    Proposed ratings are debated with a quorum of senior analysts voting on the final ratings outcome.

    Peer review

  • Rating issued

    Report and financial product rating is published and made available to all Lonsec subscribers.

  • Recommendation

    Financial advisers can now view your investment product rating and include on their APLs and provide a recommendation to their clients.

    Recommendation

  • Distribution

    Fund ratings are updated and distributed daily through the Lonsec Bulletin to 4,500+ financial advisers.

Partner with Australia’s leading research house

Work with people who truly understand your product

Access Lonsec’s financial adviser channel

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.

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.

Research philosophy

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.

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.