Lonsec enters venture with Milliman
Research house Lonsec has entered into a partnership with actuarial and consulting firm Milliman aimed at delivering a new service to financial advisers, superannuation funds and institutions around meeting the needs of retirees .
The two companies said they would be combining Lonsec's portfolio construction processes and established relationships with financial advisers with Milliman's expertise to provide retirement advice to institutions.
The companies said they would "provide extensive insight, as well as a solution-set that is closely aligned to the challenges facing Australian advisers in a post-Future of Financial Advice environment and which also meets the needs of superannuation funds and institutions".
The announcement referred to the fact that they had last year jointly authored a white paper which had contended that the current financial advice model serving retirement is sub-optimal.
It said that white paper, entitled ‘Boomers, Herding, Denial and Zeitgeist: Who will be First to Grasp the Post-Retirement Advice Opportunity?' had challenged "some commonly used approaches to managing post-retirement portfolios".
"It also provides insight into the direction Lonsec and Milliman believe the advice process and the portfolio construction approach should be heading," the announcement said.
The announcement said the two companies believed that future success in funds management and financial advice would hinge on genuinely responding to the needs of retirees".
By leveraging their respective skill sets and strengths, Lonsec and Milliman believe their partnership will achieve this goal. Further initiatives are planned to address specific post-retirement investment issues in detail, offering progress towards timely solutions.
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