We have developed a rigorous system of ratings analysis, providing financial advisers with the insights they need to support their clients’ investment objectives. Our ratings are underpinned by our peer review process, which draws on the full expertise of our investment research team.
Managed fund ratings
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.
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
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
The Fund Watch rating indicates that no new investment into this financial product is recommended. A significant change has occurred with the financial product and a detailed assessment of the change is needed and/or series of rectifying actions required prior to this rating being changed.
The Redeem rating indicates the financial product is no longer considered worthy of investment for any time period and investors should immediately redeem units from the financial product, subject to seeking financial advice.
The Screened Out rating indicates that Lonsec currently does not have conviction that the financial product can generate risk adjusted returns in line with relevant objectives. The financial product currently has insufficient competitive advantages relative to its review peer group (if applicable).
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Direct equity ratings
The Approved rating indicates that Lonsec believes the financial product can generate risk adjusted returns in line with relevant objectives. If applicable, the financial product provides an adequate means for investors to gain exposure to the underlying assets
The Not Approved rating indicates that Lonsec believes the financial product cannot generate risk adjusted returns in line with relevant objectives. If applicable, the financial product does not provide an adequate means
for investors to gain exposure to the underlying assets.
Funds withdrawn from the research process
The following are statuses, not ratings. They articulate the circumstances under which a fund was withdrawn from Lonsec’s researched universe.
The Ceased Coverage status is applied to financial products where fund managers withdraw from the Lonsec research process after the research process has been completed.
The Discontinued Review status is applied where a manager that has approached Lonsec and agreed to tender a fund for assessment, subsequently elects to discontinue participating in the Review prior to its completion for any reason, other than the fund being closed or unavailable to retail investors. The Discontinued Review status will be published on the Lonsec website.
The Closed/Wind Up rating is applied to a financial product when the fund manager advises Lonsec that the financial product is being wound up and the capital is to be returned to investors.
Disclosure: This document is published by Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL No. 421445 (Lonsec).
Lonsec receives fees from fund managers and product issuers for rating financial products using comprehensive and objective criteria and may receive fees from fund managers or product issuers for services, including research subscriptions.
Lonsec’s fee and analyst remuneration are not linked to the rating outcome. Lonsec, its representatives and their associates may hold the financial product(s) rated.
Warning: Past performance is not a reliable indicator of future performance. Ratings are General Advice or a ‘class service’ and are based on the merits of the product(s) without considering any person’s particular financial circumstances.
Seek advice before making an investment decision, or consider its appropriateness given particular financial circumstances. Before making an investment decision, the reader must consider its appropriateness given his/her financial circumstances or seek advice from a financial services professional.
Disclaimer: Except for Lonsec ratings, Lonsec gives no warranty of accuracy or completeness of information in this document, which is compiled from information from public and third party sources. Opinions and ratings are reasonably held by Lonsec at compilation. Lonsec assumes no obligation to update this document after 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 document or any information.