ETF model portfolios lend a helping hand to financial advisers


Lonsec’s new ETF portfolio offering targets accumulator clients

Lonsec Stockbroking (Lonsec) has launched a set of strategic exchange traded funds (ETF) model portfolios designed to provide financial advisers and their clients access to a low cost, diversified portfolio solution through a range of passive ETFs across traditional asset classes.

Lonsec’s ETF Strategic Portfolios taps into the growing appeal of ETFs, creating a low-cost, fully diversified and highly liquid investment strategy to end investors that Lonsec predicts will be especially appealing for self-managed superannuation funds.

The Australian ETF market has doubled in the past two years, reaching $10 billion in funds under management at the end of 20131.

Catering for investors across the risk spectrum, Lonsec has created five portfolios across five different risk profiles from defensive through to high growth. The portfolios provide investors access to a balanced portfolio covering Australian equities, international equities, property securities, fixed interest and cash.

Lonsec Stockbroking’s Investment Advisor Geoff Beeston said the portfolios address the increasing demand for ETFs, particularly for accumulator clients looking to grow their wealth to realise investment objectives.

“Lonsec’s ETF model portfolios provide low-balance investors with an opportunity to address their asset allocation needs and balance their risk profiles,” Mr Beeston said. “It is particularly appealing for accumulators as it presents a low cost way to achieve direct exposure to asset classes, as opposed to the traditional investment model using managed funds.”

“There is rising interest from financial advisers as they realise how ETFs can be used to help their clients gain access to major asset classes. Typical ETF investors hold financial products for over 18 months, meaning these portfolios are relatively easy to manage, reducing administration time for financial advisers and enabling them to focus more time on achieving their clients’ investment objectives,” Mr Beeston said.

Lonsec’s ETF Strategic Portfolios is backed by Lonsec’s market-leading research, with strict selection criteria and Lonsec Research ratings considered to ensure only quality ETFs are listed. Each portfolio is reviewed and rebalanced on a biannual basis to make certain the offering remains adaptive and hence achieve best results for investors.

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