Vince Pezzullo

As it officially opens to investors, Perpetual Investments’ first listed investment company – the Perpetual Equity Investment Company Limited (ASX: PIC) – has received a ‘Recommended’ rating from research house Lonsec and ‘Recommended’ rating from Zenith.

Lonsec identified Perpetual’s “long-standing investment philosophy and process” as “one of the key strengths of this offering.” Similarly, Zenith stated that it “has a high level of confidence in Perpetual’s investment process and believes that PIC will generate excess returns for its investors over the medium to long-term.”

The Zenith report also commented that it “sees PIC as a LIC with solid potential as part of a diversified equities portfolio.”

PIC offers its own diversified portfolio through investment in Australian listed securities with typically a mid-cap focus, as well as up to 25% of the portfolio’s net asset value in opportunistic allocation to global listed securities. Its structure also offers the flexibility to manage potential equity market risk by moving up to 25% of the portfolio’s net asset value into cash and deposit products.

Lonsec highlighted that it, “considers the ability… to alter the asset allocation to global equities and cash to enhance the risk management practices of PIC.”

Designed to deliver regular income and long-term capital growth, Perpetual Investments Portfolio Manager, Vince Pezzullo, said these benefits would be attractive to the growing SMSF market.

“Diversification is important in SMSF portfolios, as is flexibility and liquidity. Through PIC we have the ability to increase or decrease our allocation to Australian equities, global equities and cash, based on market conditions,” Mr Pezzullo said.

“The allocation to global equities in particular offers investors access to the growth opportunities available through investing overseas.”

Zenith’s assessment also praised Perpetual’s “conceptually sound, rigorous and repeatable” investment process and its experienced investment team and stated: “PIC should suit investors seeking an Australian focussed equities exposure while Perpetual’s strong value bias should provide resilience in falling markets along with a steady dividend income.”

“PIC marries the best ideas from Perpetual’s time proven Australian and global equities strategies. Our internal investment team is a deep research engine, expert in bottom-up stock picking which avoids the biases of the ASX300,” Mr Pezzullo.

In its ratings report, Lonsec stated its “high regard for Perpetual’s quality-focused and valuation-driven research process.” It also shared its “favourable view of the investment skill and growing portfolio management track record of Vince Pezzullo as well as the depth and experience of the wider equities investment team.”

Further reinforcing the Perpetual Investment team’s capability and solid track record, last week the Wealth Focus Perpetual Industrial Share Fund, which is co-managed by Mr Pezzullo and Portfolio Manager, Nathan Parkin, won the Super Ratings Fund of the Year Awards for the Australian Shares category based on five-year returns.

PIC’s offer period is now open until 28 November 2014 with a minimum raising target of $150 million. The offer has been arranged through CBA Equities and Taylor Collison and is being jointly managed by Macquarie Capital, Morgan Stanley Australia and ANZ Securities. The co-lead managers are Baillieu Holst and Lonsec.

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Anton Tagliaferro

Investors Mutual’s listed investment company QV Equities (ASX: QVE) has gained strong interest from advisers and investors since its offer period opened on Monday 14 July. Some of Australia’s leading platforms including BT, Colonial First State, MLC and Macquarie have all announced QVE’s inclusion in their platform offerings.

The platform inclusions in many leading dealer groups’ approved product lists is quite unique for a listed investment company. It will improve access and allow SMSFs, HNW individuals and their advisers to incorporate QVE into their portfolios. Investors Mutual’s founder and Investment Director Anton Tagliaferro said QVE had been designed to help investors achieve a diversified portfolio outside of top 20.

“QVE provides investors with a prudent vehicle to diversify their portfolios, and there has been strong uptake since the offer period opened. It is a well known fact investors are over concentrated in top 20 blue chip stocks. They are now realising the breadth of opportunities and diverse entities the ex20 segment offers in terms of industry sectors,” Mr Tagliaferro said.

Research ratings reflect investor appeal – QVE ‘Highly Recommended’ by Lonsec, and ‘Recommended’ by Zenith

QVE has also been awarded a ‘Highly Recommended’ rating by Lonsec and ‘Recommended’ by Zenith, with both research houses commending Investors Mutual’s investment approach and experienced team.

Lonsec’s ‘Highly Recommended’ research report stated “QVE offers investors access to a high quality Board of Directors and investment team with a ‘true to label’ value style and strong track record of performance across market cycles.”

Lonsec also noted its high conviction “in the calibre of Anton Tagliaferro and Simon Conn as value investors across the market capitalisation spectrum” with the “highly accountable performance driven investment culture and boutique structure” also being of note.

Zenith echoed the sentiments that “IML’s philosophy is ideally suited to a LIC, given the sector is strongly supported by the SMSF market, which seeks preservation of capital and income.

“Zenith sees QVE as a LIC with solid potential as part of a diversified equities portfolio, believing an ex20 exposure should complement an investors direct stock holdings or an exposure to the traditional LICs which focus on the top 20 stocks which are predominately financials and resource companies.”

QVE’s offer period is open from now to 8 August, 2014 with a raising target of between $100 to $200 million. The issue has been arranged through CBA Equities who are also one of the joint lead managers to the issue along with BBY, Patterson and Taylor Collison and co manager Lonsec Securities.

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Matthew McKinnon

Market Vectors ETFs (Market Vectors), the exchange traded fund (ETF) business of US-based investment manager Van Eck Global, today announced it has received an ‘Investment GradeIndex’ rating from research house, Lonsec, for its recently listed Market Vectors Australian Equal Weight ETF (ASX code: MVW).

Market Vectors Australian Equal Weight ETF is designed to track a purpose-built index, the Market Vectors Australia Equal Weight Index, which currently provides investors with equal exposure across 76 of the most liquid large and mid-cap ASX-listed securities.

Matthew McKinnon, Director, Institutions and Intermediaries at Market Vectors Australia, commented, “We are pleased to receive a positive review from Lonsec for Market Vectors Australian Equal Weight ETF – the first equal weight ETF available to Australian investors. Equal weight investing is well established in Europe and the United States, where it is used to build a diversified core portfolio.  The methodology is well suited to the Australian market, which is heavily concentrated with the top 10 stocks making up more than 50% of the top 200 listed companies by market capitalisation. Our research shows that MVW’s underlying equal weight index has outperformed the S&P/ASX 200 Index by 23% over the last 10 years.

“What sets our ETFs apart is the rigorously designed methodology and rules governing the construction of the underlying indices. Each of our ETFs is based on a Market Vectors’ purpose-built index which focuses on liquidity and diversification to design investable indices. Our ETFs therefore comprise portfolios of assets that are liquid and diversified, cost effective and easily accessible to investors via a single trade on the ASX.

“The index methodology for MVW reduces exposure to the large-capitalisation companies that typically dominate Australian benchmark indices and increases exposure to the most liquid Australian mid-caps, providing an alternative to ETFs based purely on market capitalisation indices.

“We are confident that MVW will attract a range of investors from direct and SMSF investors to intermediary and institutions seeking diversified balanced exposure to the Australian equity market,” Mr McKinnon said.

Market Vectors listed its Market Vectors Australian Equal Weight ETF on the ASX this month. The equal weight index has been especially developed by Market Vectors Index Solutions (MVIS), the independent index company of Van Eck Global based in Germany.

Lonsec review – Market Vectors Australian Equal Weight ETF (MVW) 

Lonsec has conviction that Market Vectors Australian Equal Weight ETF can achieve its objective. “The Market Vectors Australian Equal Weight ETF tracks an index that is new to the Australian market and is designed to provide a more diversified exposure than traditional market cap-weighted indices which, given the nature of the Australian economy, have a highly concentrated weighting to banks and miners,” Lonsec said.

“The Fund offers a simple and easy means of gaining a diversified exposure to the Australian share market via a single transaction. The Fund tracks the Market Vectors Australia Equal Weight Index, which provides greater diversification across industries versus traditional market cap-weighted indices,” the ratings report said.

Lonsec favourably noted the transparency of the index. “Lonsec considers the index rules to be very transparent and commends the Van Eck group of companies on making the full index methodology and index constituent selection and review processes readily available to investors.”

“It is Lonsec’s belief that not all index providers are as forthcoming with this information. Furthermore, Lonsec believes that access to transparent, straight forward information on index products, their underlying indices and how they are constructed is crucial to investors’ understanding and ability to gauge suitability,” the report said.

“By equal weighting the index constituents, the underlying index has a significantly higher weighting to mid-cap stocks, and is more diversified by sector and individual security weightings than the S&P/ASX 200 Index,” Lonsec said

Analysis by MVIS reveals that its equal-weight index has outperformed the S&P/ASX 200 in nine out of the last 12 years. Overall, the Market Vectors Australia Equal Weight Index has outperformed the S&P/ASX 200 since 2002 to March 2014 by 23 per cent, according to MVIS

The Market Vectors Australian Equal Weight ETF joins four existing Market Vectors sector-based ETFs which were listed on the ASX in October last year. They are the Market Vectors Australian Banks ETF (MVB), Market Vectors Australian Property ETF (MVA), Market Vectors Australian Resources ETF (MVR) and Market Vectors Australian Emerging Resources ETF (MVE).

Market Vectors Australia is planning to launch more ETFs on the ASX later this year as it continues to gain market share in the Australian ETF market.

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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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Bond market returns over time have less to do with capital gains or losses, they are largely driven by income.

Despite predictions that the end of the bond market is nigh, Lonsec’s income sector has expanded considerably over the past few years.

This growth has been driven by increased demand for financial products that pay regular distributions, the launch of the bond ETF market and an evolution of absolute return focused strategies that tend to have more flexibility to adjust duration and therefore sensitivity to rising bond yields and capital losses.

Lonsec Senior Investment Analyst, Libby Newman, said, “One of the most frequently asked financial adviser questions of the past few years has been ‘should I be getting out of fixed interest?’”

“As yields plummeted, driven by the extraordinary monetary policies adopted by global central banks, the number of articles calling the end of the bond market rose”.

Unlike equities, bonds provide some certainty in terms of their returns – a regular coupon and return of principal at maturity, assuming there is no default.  However, it is still possible for income funds to provide negative returns due to market value fluctuations.

For example, an investor may experience a loss if they are forced to sell when:

• Interest rates (and expectations of future interest rates) go up sharply – and the prices on bonds commensurately fall
• Credit spreads deteriorate (widen).

“However, it is important to remember that bond market returns over time have less to do with capital gains or losses, they are largely driven by income – regular interest payments and reinvestment income earned when cash flows are put back to work in the market,” said Newman.

“Indeed many periods of negative or soft returns are followed by strong years because the coupon interest and bond maturities can now be invested at higher rates.”

“The yield on an Australian Commonwealth Government 10 year bond has risen about 1.0% compared to this time last year, and the capital loss (if yields rise the price of the bond falls) pretty much cancels out the income earned over the year.”

However, there is much more to the debt securities market than Australian and US government 10 year bonds. Over the same period, credit spreads (the premium for investing in a company rather than with a government), have narrowed, so corporate bonds have been able to deliver a positive return, even with the headwind of rising yields.  Then there are floating rate bonds, which are also less impacted by rising yields than their fixed rate counterparts.

“So you can see that Funds that can tap in to the full spectrum can still deliver positive returns and an income stream,” said Newman.

So, should you get out of bonds?

“Well, you’d expect me to say no. Australians own fewer bonds than investors in other parts of the world and want steady income in retirement, so I am pleased to see Commonwealth Government Bonds increasingly visible and available for retail investors to trade. But you definitely need to understand what your bond fund can do before you invest in this type of financial product. ”

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Through initiating coverage of the separately managed account (SMA) portfolios with these positive ratings, Lonsec is indicating its “strong conviction the products can generate risk-adjusted returns in-line with relevant objectives”.

Head of MPPM, Trevor Fisher, said the ratings reflect the experience, capabilities and robust investment process MPPM has built since it began offering managed accounts in 1999.

“During the past few years, we have seen a marked increase in interest from dealer groups and financial advisers as they recognise how managed accounts can deliver direct equities in a risk-managed and scaleable fashion,” Mr Fisher said.

“Managed account products can provide investors with a sense of control over their financial outcomes and offer transparency over their investments, performance and fee models.

“In step with the increased interest in managed accounts is the rising desire from investors for actively managed portfolios that generate consistent risk-adjusted performance.”

For example, the MPPM Growth portfolio outperformed the benchmark S&P/ASX200 accumulation index by 5.7% per annum, over the five years to June 2013, ahead of its expected 3% per annum outperformance target. In addition to the strong returns, Lonsec noted “its standard deviation was in-line with, or lower than, the benchmark’s over these periods. Further information and performance data on all three MPPM models, is contained within the Lonsec product reviews.

In its report, Lonsec said it has initiated coverage of these model portfolios with ‘Recommended^SMA’ ratings as it believes the highly experienced manager offers a very disciplined and tax-aware approach to Australian equities investment.

It noted that, “Pleasingly, the manager displays many of the attributes Lonsec looks for in boutique managers, including a performance-driven culture and a good alignment of interests between staff, investors and the firm.

“Lonsec believes this approach [manager’s stock research process] provides a disciplined and highly repeatable process which allows the manager to efficiently score companies based on various metrics.

“The manager has a good appreciation of the specific risks of running an SMA model portfolio. By offering an in-house solution, the manager reduces some of the risks faced by competitors who must communicate portfolio changes to third party SMA platforms.”

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Lonsec Fiscal (Lonsec), a leading provider of financial services research and investment execution,  announced the expansion of its existing Sydney-based institutional broking division with the appointment of three senior resources specialists.

The new appointments, Rod Clarkson, Tim Gerrard and Colin McLelland, were formerly the nucleus of the Investec Equities team based in Sydney.

Lonsec Fiscal’s group Managing Director, Jason Clarke, commented, “We are thrilled that Rod, Tim and Colin have chosen to join Lonsec where we have been diligently expanding our capacity and enhancing the quality of outcomes for clients and customers across the group. They are a very highly regarded team and the appointment reaffirms our commitment to our institutional clients. We wish them well as they expand the Lonsec offering in resource sector research and in Equity Capital Market capabilities.”

David Wylie, CEO of Lonsec Stockbroking, said the collective knowledge and experience of the new team would allow Lonsec to further build its reputation in research, Equity Capital Markets, dealing and execution services.

“This experienced team makes a fantastic and highly complementary addition to our existing institutional broking division,” Mr Wylie said.

“At a time when many industry participants are reducing their dealings with the mining sector, we believe this represents the perfect opportunity for Lonsec to further enhance our broking capabilities. Lonsec is committed to this highly relevant and extremely important sector of the Australian economy.”

While Lonsec has established institutional relationships, this latest move will allow the business to take a greatly enhanced view into the resources sector. The new team will provide a range of services for institutions and corporate clients:

• Institutional Research on resources companies, ranging from large caps to select small and mid-caps
• Equity Capital Market raisings for mining companies through broad networks of domestic and international clients
• Dealing and execution services

Rod Clarkson is a 35 year veteran within the securities industry, bringing experience from his time as the head of sales desk for James Capel, Prudential Bache and BNP Paribas in London. Most recently Mr Clarkson was Managing Director of Investec Securities where he was responsible for specialist resource broking.

Former Investec director Tim Gerrard has been in the equities market since 1984 researching the Australian resources market including gold, metals and diversified sectors. He has a Bachelor of Mineral Technology Degree (Otago) and BCom (Otago) and prior to joining the broking industry worked for BP Oil Exploration and Hamersley Iron.

Colin McLelland brings experience as a senior consultant for a top tier operational consulting firm as well as over 4 years working as an equities analyst at Investec. He has been active in the equity markets since 2006 with broad resource coverage including coal, iron ore, copper, gold and specialty metals.

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Matthew McKinnon

Market Vectors ETFs (Market Vectors), the exchange traded fund (ETF) business of US-based investment manager Van Eck Global, yesterday announced it has received ‘Investment GradeIndex’ ratings from research house, Lonsec, for all four of its new Australian ETFs.

The rating indicates that Lonsec has conviction that the ETFs can achieve their objectives and the report makes particularly favourable mention of the ETFs’ transparency and targeted exposure to their specific Australian economic sectors.

Market Vectors Australian Banks ETF (ASX code: MVB), Market Vectors Australian Emerging Resources ETF (ASX code: MVE), Market Vectors Australian Property ETF (ASX code: MVA) and Market Vectors Australian Resources ETF (ASX code: MVR) were launched on the Australian Securities Exchange (ASX) last week.

Matthew McKinnon, Director, Institutions and Intermediaries at Market Vectors Australia said he was pleased to receive such positive feedback from Lonsec, one of Australia’s top research houses, which confirms Market Vectors ETFs’ first offerings to the Australian market as quality investments for Australian investors.

“Our ETFs offer something different to other ETFs listed in Australia because they aim to track pure-play investable indices which are purpose-built for ETFs by Market Vectors Index Solutions,” McKinnon said.

“To qualify for inclusion in the underlying index, companies must generate at least 50% of their revenue or assets from a particular sector. This is what is defined as ‘pure-play’. Strict liquidity screens are then applied to determine individual components, then individual weightings are determined subject to caps. The result is targeted exposure with real diversification to all underlying securities.

“Our index methodology reduces exposure to the large cap companies that dominate many Australian indices, and increases exposure to the most liquid Australian mid and small caps,” McKinnon said.

Lonsec confirmed the Van Eck Global investment team, “has a track record in minimising tracking error with sector-focused ETFs and more broad-based ETFs,” and “has proven its ability to manage cash flows from dividends.”

The research house also praises the group’s transparent approach; “Lonsec commends the Van Eck Global group of companies on making the full index methodology and index constituent selection and review processes readily available to investors.”

According to Lonsec, Market Vectors Australian Banks ETF (MVB) offers a “simple and easy means of gaining exposure to the Australian banking and finance sector, via a single transaction.”

Lonsec’s report confirms: “The Fund tracks the Market Vectors Australian Banks Index, which provides a cap-weighted exposure to Australian banks, removing the large capitalisation biases found in traditional market capitalisation weighted indices. The Fund’s MER fees are lower than other financial sector based ETFs assessed by Lonsec.” MVB caps an individual component’s weight at 20%.

The research house believes Market Vectors Australian Property ETF (MVA) offers a simple way of gaining exposure to the Australian Real Estate Investment Trust (A-REIT) sector. Lonsec said: “The Fund tracks the Market Vectors A-REIT Index, which provides cap-weighted exposure to A-REITs, providing greater diversification and reducing large capitalisation biases to Westfield Group and Westfield Retail found in traditional market capitalisation weighted indices”. MVA caps an individual component’s weight at 10%.

Lonsec also found Market Vectors Australian Resources ETF (MVR) provides greater diversification and is priced lower than other Resource sector based ETFs assessed by Lonsec.

The report says: “The Fund tracks the Market Vectors Australia Energy and Mining Index, which provides a cap-weighted exposure to this sector, providing greater diversification and reducing the large capitalisation biases to BHP and Rio Tinto found in traditional market capitalisation weighted indices.” MVR caps an individual component’s weight at 8%.

Market Vectors Australian Emerging Resources ETF (MVE) also received a positive review, “The Fund offers a simple and easy means of gaining exposure to the Australian Junior Energy and Mining sector, via a single transaction,” Lonsec outlines. MVE also caps an individual component’s weight at 8%.

Lonsec noted, “The Market Vectors Australian Sector ETFs provide a more targeted exposure to certain economic sectors, unlike most other market capitalisations weighted indices.”

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Dalton Nicol Reid received a “Recommended SMA ”rating from Lonsec.

Independent Australian investment management company Dalton Nicol Reid today announced that its Australian Equities High Conviction Portfolio has received a “Recommended ^SMA ”rating from investment research house Lonsec. The rating is an upgrade from the previous ‘Investment Grade’ rating received in March 2013.   Additionally, Praemium has included the Australian Equities High Conviction model portfolio on its SMA platform offering.

“Lonsec believes the manager (Dalton Nicol Reid) offers a robust and highly repeatable investment process that has been a proven outperformer across the investment cycle.”  In the three years to June 2013, the Model Portfolio has outperformed the Lonsec benchmark by 3.97% per annum before fees. Shorter-term performance has also been strong with the Model Portfolio outperforming the Lonsec benchmark by 5.38% for the year ended June 2013.

According to Lonsec, “Dalton Nicol Reid has many of the attributes it looks for in boutique managers, including a performance-driven culture and a strong alignment of interests between staff, investors and the firm”.

Lonsec also described Chief Investment Officer Jamie Nicol as an “astute and experienced investment professional” while his key Portfolio Manager Scott Bender is credited as being “a quality investment professional who has built a successful track record working alongside Nicol.”

Commenting on the rating, Dalton Nicol Reid CEO Harley Dalton said, “We are pleased to have received this rating, which reflects the team’s considerable experience in the SMA space and clear focus on consistently outperforming the market.”

The release of the Lonsec “Recommended ^SMA ” rating comes shortly after Praemium included the Dalton Nicol Reid Australian Equities High Conviction model portfolio on its SMA platform. Praemium Commercial Director Andrew Varlamos said Praemium has an open architecture business model and encourages the addition of quality boutique managers to its offering.

“Dalton Nicol Reid has been a pioneer in the SMA sector and has built a considerable following amongst advisers seeking to give their clients transparent portfolios.  We are very pleased to add Dalton Nicol Reid models to our platform,” Mr Varlamos said.

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Lonsec and Milliman launch new retirement website.

Investment research house Lonsec Research (Lonsec), in partnership with global actuarial and consulting firm Milliman, yesterday unveiled a retirement website designed to provide practical and implementable solutions for financial advisers providing advice to retiree clients.

As Australia’s population ages, the funding of retiree pensions represents one of the greatest challenges facing the industry. In response, Lonsec and Milliman have developed a centralised online solution for objectives-based retirement portfolio construction innovation and thought leadership, giving financial advisers the tools and strategies to provide better retirement solutions for their clients.

Lukasz de Pourbaix, General Manager – Lonsec Investment Consulting, said despite increased awareness of the investment issue relating to retirement; there were no real practical adviser solutions in the market.

“We hear about it everywhere – an increasing number of Australians facing retirement and with that brings new investment strategy and investment challenges. However, no one has been working to provide a practical solution for financial advisers to deal with some of these challenges. We have developed an end-to-end solution to help to support advisers faced with the need to provide advice to the ever-growing group of Australian retirees,” said Mr de Pourbaix.

Lonsec Retire (www.lonsecretire.com.au) offers an extensive service to subscribers across three advice modules – Research, Solutions and Industry Panel.

The Research module provides thought leadership, such as white papers and detailed research on topics such as longevity risk, the politics of pensions and sequencing risk. It is aimed at assisting financial advisers in their discussions with clients. This module is home to the second jointly authored white paper from Lonsec and Milliman launched today, entitled: ‘Smiles, Handshakes & Farewells…..Then What? – The changing dynamics of wealth, risk and needs in retirement’. 

“For individuals, as retirement approaches, investment decisions and attitudes to risk naturally change. Building on our initial discussions, this paper looks to provide practical support to financial advisers in offering strategic advice and actively managing changing behavioural factors to produce better outcomes for clients,” said Mr Wade Matterson, Practice Leader, Milliman. 

According to Mr de Pourbaix, despite the growing number of retirement financial products in the market, there continues to be a lack of guidance around constructing objective based portfolios, hence the development of the Solutions module.

The Solutions module has three components focused on providing practical portfolio solutions for financial advisers.

“The first component is a retirement portfolio construction guide, which details the financial planning process and provides a practical guide for constructing an implementable objectives-based portfolio. The second is an approved product list that spans a broad range of quality financial products researched by Lonsec, linking directly to Lonsec’s in-depth research reports.

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