Share your views on funds of the future

Understanding your clients is crucial to a successful relationship – and it's the same for IOOF. That's why we're inviting you to answer our survey on possible new solutions to meet the diverse needs of your client base. Your response will have an important say in how our products evolve and the new products we offer. 

Click the link to take part in our two minute survey on enhanced-passive funds.

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Since the GFC, client driven pressure on fees, FoFA regulations and the move to more 'naked' rate cards has prompted an industry focus on lower costs. Some fund managers have responded with new products and investment strategies, including smart-beta, most of which are offered as low-cost solutions to advisers.

The rise of 'smart-beta'

Smart-beta are hybrid active/passive strategies – based on indexes, but with an actively managed component. Unlike traditional indexes however, smart-beta strategies use an eclectic range of alternative measures such as momentum or volatility, breaking the link with the stock's price (market cap) as the criteria for investment. This allows a fund to deliver above market returns to benchmark indices, but thanks to the passive, rules-based methodology, at lower costs than a pure active fund.

IOOF and MySuper

In Australia, the introduction of MySuper has accelerated the trend for fund managers to incorporate smart-beta strategies into their funds. 

And it's a trend IOOF has successfully adapted to, with a range of new strategies incorporated into the IOOF MySuper product – 'IOOF Balanced Investor Trust' – providing returns of 16.61 per cent1 for the 12 months to 15 February 2015.

Danny Dalton, IOOF National Sales Manager - Investments, said the success in the corporate super environment has been one of the catalysts in exploring possibilities for the retail market.

"We're looking at the current needs of advisers to see how they use active and passive funds and ensure our product development meets their needs," Danny said.

Let us know what you think.

IOOF is committed to engaging with advisers to ensure we meet your needs - click the link to take part in our survey.

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1. Performance is based on the actual underlying investment. Performance is net of investment management costs and expenses but gross of platform administration fees and tax.

The information contained in this newsletter is provided on behalf of the IOOF group of companies and is intended for financial adviser use only. It is given in good faith and has been prepared based on information that is believed to be accurate and reliable at the time of publication. Any examples are for illustration purposes only and are based on the continuance of present laws and our interpretation of them at the time.