Matt Olsen

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

• 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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