Solaris Investment Management has received a 'highly recommended' rating from Lonsec for its Core Australian Equity Fund and the High Alpha Australian Equity Fund.
This is the second consecutive year the fund's Core strategy has received Lonsec's highest rating while the High Alpha strategy also received a Highly Recommended rating after the researcher's initial review.
"Although the team at Solaris was officially established in 2008, we have worked together for many years previously and it was gratifying that Lonsec notes our well-established, high-calibre team to be a key strength," said Denis Donohue, Solaris' managing director.
In its review, Lonsec noted that Solaris' remuneration structure boasts a high alignment of interests. For example, 75 per cent of an analysts' variable remuneration is directly linked to individual performance targets and relative peer group comparisons.
"Pleasingly, no bonuses are paid if the funds underperform the benchmark," it added.
"A 'Highly Recommended' rating reflects our high conviction that the Solaris Funds will achieve their objective and outperform their peers over an appropriate investment timeframe."
The fund manages over $4.5 billion on behalf of retail and institutional investors.