Independent ratings house Lonsec Research has rated five of IOOF WealthBuilder’s investment options ‘Highly Recommended’ and ‘Highly Recommended (Index)’, the highest possible rating. This ‘Highly Recommended’ rating indicates that Lonsec has very strong conviction that investment bonds, and more particularly IOOF WealthBuilder can generate risk adjusted returns in line with relevant objectives.The ‘Highly Recommended’ rating was given to three of IOOF WealthBuilder’s equity portfolio options:
- Fidelity – Australian Shares Core
- Perpetual – Australian Shares Long Short
- Magellan – International Shares
and ‘Highly Recommended (Index)’ to two of IOOF WealthBuilder’s equity portfolio options:
- Vanguard – Australian Shares Index
- Vanguard – International Shares Index
Renato Mota, IOOF Group General Manager Wealth Management said that the coveted ‘Highly Recommended’ rating from Lonsec is a tick of approval for the investment bond structure and for IOOF WealthBuilder.
“Investment bonds offer a great tax-effective investment structure outside of superannuation, so it’s not surprising that an increasing number of investors and financial advisers are choosing them.”
A key benefit to investment bonds is that they enable you to save for a specific event, but they can also be used effectively to increase options in retirement and for estate planning.
IOOF successfully launched an enhanced investment menu for IOOF WealthBuilder in December 2015, driven by demand from advisers for more choice.
“We now offer investment options across all the major asset classes, including cash and fixed interest as well as domestic and global equities, all managed by a range of active and index-based professional investment managers.
“There are 16 new investment options to select from with a range of profiles to meet investor risk appetite, including 12 sector specific options to tailor individual portfolios. Off the back of the successful launch, all of the funds on the investment menu are now rated by Lonsec”, Mr Mota explained.
In conclusion, Mr Mota said that he expects demand for investment bonds to continue to increase, particularly in an environment where there are frequent changes in the superannuation space.
“IOOF has been the leading provider of quality investment bonds since 1981, so we are really pleased to receive these ratings from Lonsec. It means that we are living up to our promise of offering our investors a tax-effective and flexible structure,” he said.
In addition to the five ‘Highly Recommended’ ratings, Lonsec also rated ten of IOOF WealthBuilder’s investment options ‘Recommended’. To develop a rating, Lonsec reviews the manager’s investment process, people and resources, liquidity, fees, performance, and the risks associated with each fund.
