Exchange traded products such as Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs) have experienced an enormous increase in growth in the past several years.
Lonsec Research is one of the few providers of investment research that has the breadth and depth of research capability to provide extensive research coverage on these ASX listed managed products.
We provide research tables on the universe of ETFs & LICs that provide the ability to search and filter based on ratings (Highly Recommended, Recommended etc), asset class, and performance.
Research viewpoint reports are also provided on many (but not all) ETFs & LICs. These are a two-page summary research report, covering a range of criteria such as rating, performance data, and research opinion. Click on one of the free samples below for more detail.
For Exchange Traded Funds (ETFs), our Viewpoint research report includes information of what the fund is, performance tables, how to use the fund in a portfolio, the “rating” of the fund, Lonsec’s overall opinion of the fund, fund manager profile, Lonsec’s suggested risk profile suitability, and it’s strengths and weaknesses.
For Listed Investment Companies (LIC’s), this includes information of what the investment company is, performance tables, how to use the company in a portfolio, the company’s risk characteristics, the “rating” of the company, Lonsec’s overall opinion of the company, Lonsec’s suggested risk profile suitability, and the company’s strengths and weaknesses.
Viewpoint reports are available on many (but not all) ETFs & LICs/LITs.
Lonsec’s core research approach for all ASX listed managed products has been to use its wider managed funds methodology as the building block for the research process. This has then been specifically tailored for the research nuances for each type of product.
For LICs and LITs, this involves a recognition that such products are listed and trade at either a premium or discount to their net asset value over time. It also includes a recognition that LICs are companies which requires a separate assessment of their Board of Directors and governance framework.
Conversely, Lonsec notes that ETFs have the benefit of a market-making mechanism which means that an assessment of the efficacy of this is critical.
For all products, we also look at the suitability of a particular strategy for each. There is an instant recognition for LICs that the liquidity of the underlying strategy, reliance on trading gains for funding dividends, track record of the Board of Directors in capital management and size / liquidity of the ‘head stock’ are predictors in the likely trading profile for each LIC.
For ETFs, there is a recognition that the efficacy of market-making is not uniform across all underlying asset classes or strategies. We believe that encapsulating this in our research process is a direct source of value add for investors.
Lonsec has deep asset class expertise across equities, fixed income, hard assets, multi-assets and alternatives and collaborate extensively with direct and specialist asset class teams on the review of these products including joint product meetings (where appropriate), peer review and report generation.
In this video, Dan Moradi, Portfolio Manager for Listed Products, provides an update on the Australian equity market foll...Read article