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.