Vanguard partners with LIS to launch active-passive model portfolios

Vanguard Investments Australia has launched a suite of Core-Satellite Model Portfolios, partnering with Lonsec Investment Solutions (LIS), part of Evidentia Group.

Utilising LIS’ targeted manager selection, Vanguard has launched a suite of five multi-asset portfolios, delivering a range of conservative to all-growth strategies that offer diversified access to a variety of sectors, styles, and asset classes, including Australian and international shares and fixed income.

With a broadly diversified core, Vanguard said these solutions are designed for long-term outperformance, leveraging the firm’s strategic asset allocation approach, while providing exposure to Vanguard’s low-cost ETFs and actively managed satellites.

Vanguard said these portfolios will provide financial advisers with scaleable, professionally built active-passive solutions, intended to suit the investment needs of different clients.

The firm said: “The portfolios combine Vanguard’s 50 years of global index portfolio construction and best practices with LIS’ track record over more than 20 years of managing investments through various market cycles, resulting in a robust, evidence-based investment framework.”

The suite will be available to advisers as separately managed accounts on several platforms, including Netwealth, BT Panorama, and HUB24’s core and choice investment menus and later on HUB24’s Discover menu.

Speaking on the announcement, Vanguard head of financial adviser services, Rachel White, said this provides advisers with access to Vanguard’s longstanding approach to asset allocation, along with the alpha potential of LIS’ selected active managers, delivering the “best of both investment worlds”.

“In fact, they are purpose-built for advisers. They are aligned with how advisers think about core-satellite investing, designed for scalability, and enable streamlined client implementation. The broad range of portfolio options empowers advisers to confidently deliver active-passive solutions aligned to client preferences and risk profiles, while benefiting from the practice efficiencies of a separately managed account structure,” she said.

Nathan Lim, Evidentia Group chief investment strategist, added that the firm is pleased to be partnering with Vanguard on this venture.

“This unique collaboration combines Vanguard’s world-class capabilities with LIS’ trusted and research-backed approach, rigorous manager selection process and proven long-term performance. Together, we can deliver advisers and their clients seamless access to a new blend of portfolios, underpinned by strong governance, robust processes, and the innovation and personalisation our clients have come to expect,” Lim said.

This announcement marks the second partnership for Vanguard in as many months, following BT’s launch of a new low-cost investment menu, Focus, for its Panorama platform in partnership with Vanguard on 1 October.

Announced last month, the Focus menu offers four Vanguard passive diversified portfolios and four active single-sector managed funds. Meanwhile, the firm said at the time that the decision to launch the low-cost menu came off the back of strong adviser demand as they seek to serve a broader range of clients.

In a statement to Money Management last month, Annabelle Kline, chief product officer at BT, said: “We’re focused on delivering practical improvements that make a real difference to how advisers run their businesses. It’s about removing complexity, increasing transparency, and helping advisers deliver great outcomes for their clients.”