Managed Funds have historically been a relatively small part of the investment landscape for SMSFs, with ASX listed assets such as shares being the dominant asset class.
However, with the launch of the ASX’s mFund platform (which has been steadily growing in use and acceptance), this has started to change as it becomes much simpler for SMSF trustees and other DIY investors to invest in managed funds. This opens up many investment markets and strategies that are just simply better accessed via a managed fund vehicle.
Our managed funds research universe covers and rates over 1100 managed funds, enabling SMSF investors to quickly find the product that suits their needs and objectives.
For members, our research table provides the ability to filter for the type of managed fund an investor is looking for, with a range of options including asset class, ratings and performance. Product Profile reports and Viewpoint reports can also be downloaded that cover the fund’s rating, performance, and Lonsec’s research opinion. Viewpoint reports are available on the vast majority of (but not all) managed funds.
With the largest qualitative research team in the Australian market, Lonsec provides its members with a high quality, relevant and diverse universe of researched managed funds.
Our coverage reaches across both traditional asset classes (Australian and international equities, fixed interest and property securities) and alternative and emerging asset classes (hedge funds and infrastructure) and draw on a robust research process.
The specialist managed funds research team at Lonsec is second to none in our in-depth, incisive and penetrating style of financial product analysis and have experience spanning the financial services industry, with backgrounds across well-regarded funds management, banking and investment research houses.
Our research process is premised on the belief that managing money is a combination of ‘art’ and ‘science’ and that there is more than one way to manage money; there are, however, a number of critical ingredients that combine to produce a quality financial product.
Lonsec believes that investment research should be forward-looking and qualitatively skewed. Accordingly, qualitative factors generally account for 80 percent 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 percent 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.
Lonsec’s research process follows a structured framework of assessing a range of qualitative and quantitative factors and then scoring these attributes relative to other financial products within the same sector. Lonsec does not believe there is a single ‘best’ way to manage money and the research process we apply accommodates a range of investment approaches and styles.
When having a financial product researched by Lonsec, a financial product provider is assured of a transparent and consistent research methodology, and a collaborative process of engagement throughout the review process. The research process is dynamic and we continue to monitor and engage with each financial product we rate throughout the year, not just at the annual review.
Having a large research team enables Lonsec to provide in-depth investigative research across a broad range of sectors and sub-sectors.
This is an important part of our value proposition to dealer groups and their financial advisers; research breadth is critical to ensure that when creating APLs and model portfolios, there are sufficient high quality investment options available across all investment sectors and sub-sectors.
Since the beginning of 2022, we have been outlining to our members how the big picture conditions that investors were faci...Read article