“This work aims to combine Lonsec’s strong portfolio construction processes and established relationships with financial advisers with Milliman’s global expertise and actuarial rigour in providing retirement advice to institutions globally,” said Mr Lukasz de Pourbaix, Head of Investment Consulting, Lonsec.

“Together, Lonsec and Milliman will provide extensive insight, as well as a solution-set that is closely aligned to the challenges facing Australian advisers in a post Future of Financial Advice environment and which also meets the needs of superannuation funds and institutions,” said Mr Wade Matterson, leader of Milliman’s Australian Financial Risk Management practice.

The announcement follows the 2012 release of a jointly authored white paper contending that the current financial advice model serving retirees is suboptimal. The white paper, entitled ‘Boomers, Herding, Denial and Zeitgeist: Who will be First to Grasp the Post-Retirement Advice Opportunity?’ challenges some commonly used approaches to managing post-retirement portfolios. It also provides insight into the direction Lonsec and Milliman believe the advice process and the portfolio construction approach should be heading.

“Lonsec’s expertise in generating investment insight and advice solutions makes it the logical choice and a valuable research partner,” said Mr Matterson.

“Lonsec has one of the most experienced and well-resourced research and investment consulting teams in the Australian market. It offers in-depth and implementable investment research and advice, across a broad product range and has a long history of providing investment research and investment consulting services to financial adviser groups. It has been our experience that Lonsec’s experienced analysts and consultants have a sound understanding of the advice processes and financial products used in both the accumulation and retirement phases of the investor lifecycle,” he said.

“As an institutional retirement specialist, and one of the world’s largest actuarial and consulting firms, Milliman brings more than 60 years of thought-leadership in the insurance and wealth management industries to the table,” said Mr de Pourbaix.

“Its Australian practice combines that extensive base of knowledge with a deep understanding of the specific challenges, and emerging issues, of retirement incomes policy and trends in the local market,” he said.

Lonsec and Milliman believe that future success in funds management and financial advice will hinge on genuinely responding to the needs of retirees. By leveraging their respective skill sets and strengths, Lonsec and Milliman believe their partnership will achieve this goal. Further initiatives are planned to address specific post-retirement investment issues in detail, offering progress towards timely solutions.

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