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Our research team constantly monitor a global fund universe, collecting relevant and current data and meeting with fund managers over 750 times a year to create a list of high conviction, high quality investment products. Employing a thorough, rigorous and multi-dimensional research process enables us to do so in a comprehensive manner, ensuring advisers have access to a best-of-breed list for consideration.  The process also enables us to identify new products that might be lesser known than mainstream names, offering advisers an unbiased and continually refreshed list of investment opportunities. Within our fund universe are unlisted managed funds, ETFs and LICs.

Our investment research process

Our investment research process is fundamentally forward-looking and relies on both qualitative and quantitative input from analysts. The methodology is divided into two key steps:

  1. Sector universe and preliminary screening:
    - We maintain proprietary in-house data on investment products which form the basis of our investment universe. The data is collected from fund managers and product issuers each month and forms the basis of our quantitative analysis process.
    - Screening is undertaken on a sector basis so funds are typically categorised along asset class and regional lines. This process filters out sub-investment grade products so that we only invite quality products into the research phase. Relevant peer groups in our coverage universe are available here.
    - Once a product has been confirmed as passing the preliminary screening process, the product issuer is invited to participate in the formal review process. Once our Research Agreement is executed, product issuers are contractually committed to the research process and will be issued a Research Rating regardless of the ultimate outcome. Once a rating is issued it will remain available for viewing on the Zenith Mosaic website until it’s updated, replaced or withdrawn.

  2. Full due diligence review and ratings: this involves a formal face-to-face meeting with the investment management team and other key management personnel, which typically takes several hours and examines all aspects of the product’s objectives, structure and operation. It’s at this stage where we probe deeply to understand all the nuances of the investment manager, from its overall philosophy and process to the quality, experience and track record of the investment team. We also undertake a thorough review of all investment documentation (not including advertising and promotional material), and take an in-depth look ‘under the covers’ of the investment portfolio and management systems.

  • View detailed investment research process 

  • View detailed index fund investment research process 

  • View sector review calendar 

Frequently asked questions

How does Zenith's investment research process work?
Zenith's research process combines quantitative screening with in-depth qualitative assessment. Each fund under review is assessed across multiple dimensions including: investment team, philosophy, process, performance and risk management. Zenith's research team conducts a detailed review including document analysis and an in-depth meeting with their investment team. The Zenith team assesses the fund via a multi-step process that combines fundamental and quantitative considerations before assigning a rating. Zenith seeks to identify strong investment propositions, offered across multiple access points, therefore catering to the needs of a wide range of investors.
How many fund manager meetings does Zenith conduct each year?
Zenith conducts more than 1,000 fund manager meetings per year. This level of direct engagement with investment teams is central to the qualitative depth of Zenith's research and distinguishes it from rating methodologies that rely primarily on quantitative data alone.
What is the difference between quantitative and qualitative fund research?
Quantitative research focuses on measurable data - performance history, risk metrics, fees and factor exposures. Qualitative research assesses the people, philosophy, process and organisation behind a fund, which quantitative data cannot fully capture. Zenith's ratings combine both, with qualitative assessment playing a central role in distinguishing funds with similar quantitative profiles.
How are funds selected for Zenith's coverage universe?
Zenith's coverage universe is determined by a combination of factors which filter out sub-investment grade products so that we only invite quality products into the research phase. Whilst the first stage of the investment process focuses on the manager’s risk-adjusted and absolute performance, the second stage incorporates an important qualitative overlay. We consider the strength of the manager’s investment proposition, adviser demand, market relevance and the fund manager's willingness to participate in the full review process. The goal is to provide advisers with research across the investment products most relevant to Australian advice practices.
What happens if a fund fails Zenith's screening process?
If a fund does not meet Zenith's minimum criteria during the initial screening phase, it will not proceed to a full rating review. Where a previously rated fund deteriorates against Zenith's standards due to team changes, process concerns or sustained underperformance, its rating may be downgraded or withdrawn. Advisers are notified promptly through Zenith Mosaic. Information on funds which fail the screening process remain visible in Mosaic, along with the timing of historical ratings changes.