Adapting to the New World of Financial Advice
Lonsec provides financial advisers with new tailored advice capability
Lonsec has introduced a new capability in its leading iRate platform that enables users to assess and target exposure to specific investment objectives. Integrating with iRate’s portfolio construction tool, this feature represents the next evolutionary step in financial product research, allowing users to tailor their research and investment solutions based on specific investment goals and criteria.
With the constant growth in financial products and the rising demand from investors for tailored solutions, the ability of investment professionals to cater to individual objectives is becoming a real challenge. Given the pressure placed on traditional financial advice models, financial advisers and other industry professionals need to be equipped with the right tools to enable them to adapt to the new world.
“Currently there is a mismatch between the financial advice industry’s focus on investment objectives and the ability of current research tools to provide a tailored solution,” said Lonsec Research CEO Matt Olsen. “Individual investors can have multiple objectives that go beyond simply generating income or reducing volatility. They may want to invest ethically, reduce their portfolio’s complexity, or manage different types of risk. Building solutions around these objectives can be a daunting process. That’s why we have introduced these new capabilities.”
Matching the pace of evolution
Taking a holistic approach to financial product ratings is nothing new. Along with its overall financial product rating, Lonsec also provides ratings across a range of different factors that may impact the suitability of the financial product for individual investors. Known as BIOmetrics, these ratings cover the various risks, costs and features of a financial product that can be used in providing tailored investment advice.
However, what is new is the ability to utilise BIOmetrics ratings when building or assessing portfolios or Approved Product Lists (APLs). This new functionality integrates with Lonsec’s iRate platform, allowing users to navigate Lonsec’s entire rated financial product universe to find financial products that best match your client’s investment objectives. Used in conjunction with Lonsec’s traditional fund ratings, users can create a more personalised advice experience while meeting the industry’s best interest requirements.
Using BIOmetrics in Lonsec’s iRate platform
iRate users can now utilise Lonsec’s BIOmetrics ratings when constructing and evaluating portfolios. This new feature integrates with iRate’s portfolio construction tool, allowing you to navigate Lonsec’s rated financial product universe to find financial products that best match your client’s investment objectives. This new functionality allows you to:
Search for financial products based on their rating outcomes across a range of BIOmetrics factors
Scan an existing portfolio or APL to assess its performance in selected BIOmetrics categories
Receive suggestions for similar financial products that better align with your chosen BIOmetrics factors.
Lonsec’s BIOmetrics ratings are based on a rigorous analysis of the features and characteristics of each financial product, backed by Lonsec’s extensive peer review process. By utilising the new BIOmetrics feature in iRate, users can have confidence that their investment solution or product list is backed by Lonsec’s leading research capability.
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IMPORTANT NOTICE: This document is published by Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL 421 445 (Lonsec).
Please read the following before making any investment decision about any financial product mentioned in this document.
Warnings: Lonsec reserves the right to withdraw this document at any time and assumes no obligation to update this document after the date of publication. Past performance is not a reliable indicator of future performance. Any express or implied recommendation, rating, or advice presented in this document is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or limited to “general advice” (as defined in the Corporations Act (C'th)) and based solely on consideration of data or the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person.
Warnings and Disclosure in relation to particular financial products: If our general advice relates to the acquisition or possible acquisition or disposal or possible disposal of particular classes of assets or financial product(s), before making any decision the reader should obtain and consider more information, including the Investment Statement or Product Disclosure Statement and, where relevant, refer to Lonsec’s full research report for each financial product, including the disclosure notice. The reader must also consider whether it is personally appropriate in light of his or her financial circumstances or should seek further advice on its appropriateness. It is not a “personalised service” (as defined in the Financial Advisers Act 2008 (NZ)) and does not constitute a recommendation to purchase, hold, redeem or sell any financial product(s), and the reader should seek independent financial advice before investing in any financial product. Lonsec may receive a fee from Fund Manager or Product Issuer (s) for reviewing and rating individual financial product(s), using comprehensive and objective criteria. Lonsec may also receive fees from the Fund Manager or Financial Product Issuer (s) for subscribing to investment research content and services provided by Lonsec.
Disclaimer: This document is for the exclusive use of the person to whom it is provided by Lonsec and must not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by Lonsec. Conclusions, ratings and advice are reasonably held at the time of completion but subject to change without notice. Lonsec assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error, inaccuracy, misstatement or omission, or any loss suffered through relying on the information.