Frequently Asked Questions

Upper Quartile is a research business that analyses the declared performance of about 1,200 widely used managed investment funds (retail and wholesale) every month and then publishes a comparative report on more than 500 of the most widely used funds.

Using a highly sophisticated set of formulae, the performance of each fund is fed into the database for each of ten time frames (30, 60, 90, 120 and 150 days, 6 months and then 1, 2, 3 and 5 years). Each fund is then determined to be either In or Out of the Upper Quartile, on a rolling 12-month basis and the report generates a numerical ranking within the peer review group for the past twelve months.

The twelve month rolling rate of return of each fund is measured against the Upper Quartile Factor within the peer group and the differential (whether more or less) is included within the report.

The report tracks whether the fund has moved in or out of the Upper Quartile in the past twelve months and presents that tracking data for each of the five previous months and the current report month, to ensure any major change in appreciation or loss of performance is highlighted. The ranking of the fund is its rating, by performance, against all the funds in its type or group in the total database and is used to check on a month by month basis to see if the fund position changes, relative to its peers

The actual return for each fund for the previous three and six months is included in the report.

Every fund has an identifying APIR® Code which guarantees the performance results are attributed to the correct managed fund. Because funds often change their names, it is an auditing factor used to ensure the integrity of the report. Once an APIR® is allocated to a managed fund, it is retained through the life of fund, regardless of changes in name or management.

Performance data is, in the main, derived from Morningstar by direct website download and it is an auditing factor used to ensure the integrity of the report. This guarantees the performance results are attributed to the correct managed fund.

Yes. Upper Quartile Time Saving Funds Analysis sets out the data by grouping products into fifteen separate styles of fund, so that direct comparison can be made between those funds investing in the same type of market, in the same time frames. This allows a much fairer identification of whether the fund of your choice compares well with its competitors.

No. Upper Quartile Time Saving Funds Analysis publishes the performance of the selected funds in nine different time frames (on a rolling basis) and two time frames on an actual basis, so that total returns can be compared between funds, over short, medium and long-term investment periods.

Upper Quartile publishes performance figures for managed funds that are based on the Rolling Rate of Return for 12 months, 3yrs and 5 years. A detailed explanation of how the Rolling Rate of Return is calculated is available on the Website, under Other Reports.

Yes. When delivered on line, the Analysis can be searched on-screen in a number of different ways. This includes searching for specific funds; specific performance results; individual ranking numbers or to identify any fund within the report which has been rated as M-3 (out of the upper quartile for three months in a row) and needs to be considered for review. Users quickly develop their favourite search processes, including checking any changes in performance since the last report, which are highlighted in colour, on screen.

The report uses fifteen major asset classes of funds, with several smaller specific assets classes for further analysis.

The Upper Quartile factor is reported over 1 year, 3years and 5 years on a rolling basis, for each fund type. The Upper Quartile ranking is reported on a 1 year rolling basis, for each fund within its fund type, from the total database of 15 asset classes. The database for various asset classes ranges from as few as seven funds and as many as 203, depending on the type of managed funds being reviewed.

The funds included in the Upper Quartile analysis are those funds (both retail and wholesale) which are commonly used in Master Trusts as well as Skandia One Funds. Because of the high use of Master Trusts and mandated, unitised funds such as Skandia by Financial Planners and Self-Managed Superannuation Fund Trustees as an effective administration service, these are the funds most likely to be used by the professionals using the Upper Quartile subscription service.

The benefit to the Financial Planner is the regular delivery of up-to-date market analysis in an electronic format that makes it quick and easy to accurately check the performance of a client's investment portfolio, based on reliable data. This saves time; assists with the legal responsibility under Policy Statements 146 and 175 to 'know your client' and to 'know your product'; adds confidence to the Financial Planner's recommendations and gives more time to develop relationships with clients.

The benefit to Self Managed Superannuation Fund Trustees and Advisers is the certainty of knowing they have access to good investment research to assist in constructing, reviewing and maintaining investment portfolios that will meet their legal responsibilities to comply with the sole purpose test. All Self-Managed Superannuation Fund Trustees have a responsibility to 'know their products'.

The benefit to the client is the knowledge that their investments are being reviewed regularly by their financial planner, to ensure consistency of performance and continued investment in the best funds on a comparative basis. It means the Financial Planner has more time to spend with the client, understanding their needs and goals.

The licensee has the certainty of an efficient, timely delivery to each of their subscribing Authorised Representatives of accurate market research, in a user-friendly format that can immediately be applied to day-to-day financial planning activities. The Licensee meets some of their legal responsibilities under Policy Statements 146 and 175, in a cost effective manner. The report is delivered directly to each of their subscribing Representatives by email and is an efficient out-sourcing of a major licensing requirement.

It is used to identify which funds in the different asset classes consistently provide returns in or close to the top 25% of the market. This means when a new portfolio is being constructed, the Financial Planner or Self-Managed Superannuation Fund Trustee can be assured that their choice of funds is taken from a menu of well-researched products. Portfolio reviews can be accurately and quickly undertaken, by checking the existing funds against their peers, to ensure the client's investments continue to be of top quality.

The report is published monthly, on or about the 20th of the month for the month just past. The report is delivered on-line, direct to your preferred email address in Adobe PDF format which can be viewed and searched on screen as well as printed. The report is delivered automatically, once our payment gateway has confirmed your payment has been approved. Bulk subscriptions through Holders of an Australian Financial Services License are available and the report is delivered direct to each Representative. This ensures a high quality service.

No, subscriptions to Upper Quartile are not available to direct investors. Only qualified financial planners, qualified accountants and Australian Financial Services License (ASFSL) Holders may subscribe to Upper Quartile.

We expect Upper Quartile subscriptions will be tax deductible. Subscribers must get independent tax advice about their personal circumstances, because we cannot give tax advice.

When subscribing, registration is all done online. Upon registration, you will not need to provide details of the Bank account that you intend to use. Individual subscribers are billed quarterly in arrears and corporate subscribers are billed monthly. Please refer to our pricing policy.

The information comes from highly reliable, widely used industry sources and regularly submitted to the fund managers for corroboration. Morningstar supplies the research. It is then randomly cross checked with the fund managers, who provide the publishers with information on a direct basis and who are often provided with a copy of the report before it is published.

Our historical data has been collated in great detail since December 1999. It shows that when a managed fund's performance falls out of the Upper Quartile for at least three consecutive months, it generally continues to decline (when measured against its peers in the same time frame and the same market.)

The activity of the fund in the previous 6 months, 150, 120, 90, 60 and 30 days provides the Financial Planner and Self-Managed Superannuation Fund Trustee even more up-to-date information from which likely trendlines for the individual funds may be identified.

At the present time, we believe that the 500+ funds included in the report provides a wide range of data against which the performance of any other fund can be checked and rated, by the individual Financial Planner.

Our research shows that most Master Trusts use a base investment portfolio drawn from these 500+ funds and may have a few additional 'manufactured' funds for its own use, whose performance is not generally published in the standard research tables. The user of the Master Trust can easily check those funds (who have their internal performance tables available for their selected users) against their asset class peers, on an individual basis.

In May 2006, the Upper Quartile report highlighted the correction in some of the highly geared and resource based funds, allowing strategic repositioning and profit taking for clients, by their advisers.

In March 2003, graphing of the Upper Quartile factor identified a major change in market trends and foreshadowed the beginning of the strong increase in performance of equities which has continued well into mid 2006. This allowed subscribing advisers to correctly position their clients’ portfolio to generate very high levels of “alpha” or excess returns.

By running sample portfolios to test modelling theories alongside real investment portfolios, Upper Quartile Time Saving Funds Analysis has provided an estimated out-performance factor of 3-3.5% per year, (over and above the base performance of the selected fund managers) over four years in real portfolios, from Jan 2000 to December 2003. This is attributable directly to the disciplined methodology used when applying Upper Quartile Time Saving Funds Analysis and maintaining an agreed, defined asset allocation model through the whole investment period. See graph 1 * on the Benefits page of the Website.

Upper Quartile acknowledges that some or all of the data used to generate its reports may have been sourced from FPI Ltd and/or Morningstar.
Please refer to the Conditions of Use statements in this website regarding the use of this data.