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LABASSA CAPITAL AUSTRALIAN REAL ESTATE CREDIT FUND RATED STRONG


 

Melbourne, 27 March 2020 – Labassa Capital Australian Real Estate Credit Fund rated STRONG

Australia Ratings Analytics (Australia Ratings) has assigned an investment rating of ‘STRONG’ to the Labassa Capital Australian Real Estate Credit Fund (the Fund). A Product Complexity Indicator of ‘YELLOW’ has also been assigned to designate the view that the Fund is a COMPLEX financial product, indicating that the underlying assets require specialist investment skills to acquire and to monitor. ‘In addition, investment in this Fund is effectively Illiquid and investors should have a good understanding of the term and characteristics of the distributions from this type of fund. This Fund is available to wholesale investors only.

A rating of STRONG indicates a strong level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives. The experience of the Fund’s management team supports this rating.

The Labassa Capital Australian Real Estate Credit Fund (the Fund) is managed by Labassa Capital Pty Ltd, a debt and equity investor focused on Australian real estate. The Fund is an open-ended Australian unit trust, which is expected to be fully invested in secured loans in the real estate financing sector; looking primarily for opportunities in major capital cities and east coast cities of Australia such as Newcastle, Wollongong, Gold Coast, and Geelong. The Fund is expected to invest in construction loans, land bank loans, and investment loans.

Though a new fund, with inception in August/September 2019, the Fund has produced relatively consistent returns above its target, with the FUM having grown steadily from $5m in September 2019 to approximately $21m in January 2020. In addition, there are further loans amounting to $102m contracted, awaiting satisfaction of conditions.

Australia Ratings’ analyst, Maggie Callinan, says “the rating reflects the experience of the Fund’s management team”. She added, “all key decision makers have personal investments in the Fund, which adds to the level of confidence in the investment process”.

The research report is available from www.australiaratings.com.

FOR MORE INFORMATION, CONTACT:

Maggie Callinan, Director
maggie.callinan@australiaratings.com 03 8080 6684

ABOUT AUSTRALIA RATINGS

Australia Ratings is a local, independent rating agency that provides research and ratings on debt securities, investment products, and Operational Capability Assessments. As an ASIC-licensed rating agency, we provide general advice to the broader investment community through our detailed reports. We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.

About Australia Ratings’ Investment Rating

Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term.The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks. Click here to find out more.

 

 

AURA HIGH YIELD SME FUND CONFIRMED AS 'VERY STRONG'


Melbourne, 27 February 2020 – Rating of Aura High Yield SME Fund confirmed as VERY STRONG

Australia Ratings Analytics (Australia Ratings) has reviewed its investment rating of the Aura High Yield SME Fund (the Fund) and confirmed its rating of VERY STRONG.

A rating of VERY STRONG is the second highest rating on the investment rating scale used by Australia Rating. A VERY STRONG investment rating indicates a very strong conviction that the fund can deliver a risk adjusted return in line with the fund’s investment objective. 

The Aura High Yield SME Fund is managed by Aura Funds Management Limited and invests in non-bank lenders specialising in providing finance to small and medium (SME) businesses in Australia. The Fund obtains this exposure through structured notes that are backed by secured and unsecured loans to SMEs that provide an attractive risk-adjusted return.

Australia Ratings’ analyst Maggie Callinan said “The manager of the AURA High Yield SME Fund has furthered their strategy of adding to platform diversification over the last year. The Investment Team is stable and performance has been maintained through periods of uncertainty in this sector. The Fund has become more diversified, reducing risk and enhancing the risk-return trade-off.” Ms Callinan also noted that “The Fund continues to offer an attractive investment on a risk-return basis that captures the higher interest rate premium of SME loans without the substantial cost overhead typical of a bank lender.”

The Aura High Yield SME Funds’ Portfolio Manager, Brett Craig, said “We are very happy that our Very Strong rating has been maintained for 2020. This is a validation of our robust management process to deliver strong risk-adjusted returns to our investors. Through continued diversification of the underlying loan assets, we aim to continue our strong performance in volatile markets.”

The Fund offers monthly income, targeting returns at 10-12% p.a. (net of management fees) with low level of capital loss from diversified pools of loans in each tranche of its investments.

Australia Ratings has also assigned its Product Complexity Indicator of ‘YELLOW’ indicating the fund as a Complex financial product. Aura’s key capability, which is complex given the underlying due diligence and monitoring required, is the ability to identify and validate superior loan underwriting and servicing standards of non-bank lenders with experience in the SME sector.

The research report is available from www.australiaratings.com.

FOR MORE INFORMATION, CONTACT:

Maggie Callinan, Director
maggie.callinan@australiaratings.com 03 8080 6684

ABOUT AUSTRALIA RATINGS

Australia Ratings is a local, independent rating agency that provides research and ratings on debt securities, investment products, and Operational Capability Assessments. As an ASIC-licensed rating agency, we provide general advice to the broader investment community through our detailed reports. We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.

About Australia Ratings’ Investment Rating

Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term.The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks. Click here to find out more.

 

LA TROBE FINANCIAL ASSET MANAGEMENT LTD’S OPERATIONAL CAPABILITY RANKING UPGRADED TO ‘SUPERIOR’


Melbourne, 3 December 2019 – LA TROBE FINANCIAL ASSET MANAGEMENT LTD’S OPERATIONAL CAPABILITY RANKING UPGRADED TO ‘SUPERIOR’.

Australia Ratings has upgraded its Operation Capability Assessment of La Trobe Financial Asset Management Limited (La Trobe Financial), in its role as the Responsible Entity for the La Trobe Australian Credit Fund (the Fund), to ‘SUPERIOR’. This upgrade reflects the superior capacity of La Trobe Financial to perform its operational role. The Superior assessment is underpinned by La Trobe Financial’s continued focus to prudently manage the Fund and foster its growth and performance, while preserving investor capital.

Australia Ratings analyst, Natasha Hall, said, “the upgrade to the ‘Superior’ ranking reflects La Trobe Financial’s ongoing investment in its human resources and risk and compliance practices and the strengthened financial backing from the Blackstone Group.” Ms Hall added, “the ‘Superior’ assessment is also underpinned by La Trobe Financial’s continued focus to prudently manage the Fund and foster its growth and performance to current levels, whilst preserving investor capital.” Chris Andrews, Chief Investment Officer at La Trobe Financial stated "we are delighted to receive this upgraded ranking from Australia Ratings. We know that independent Research Houses, like our investors, value rigorous investment processes and management. The performance of our $4.5 billion Credit Fund is a testament to the enduring value that an experienced well-resourced team can deliver.”

La Trobe Financial Asset Management Ltd – the Responsible Entity for The La Trobe Australian Credit Fund – is wholly owned by La Trobe Financial Pty Limited and forms part of the La Trobe Financial Group of companies. The La Trobe Financial Group’s key business as a credit specialist is to originate mortgages and offer investors (institutional and retail) an opportunity to invest in mortgages and other credit assets, including mortgage-backed securities via the Fund.

The full report is available at www.australiaratings.com, or by clicking here.
Find out more about Australia Ratings’ Operational Capability Assessments by clicking here.

FOR MORE INFORMATION CONTACT:

Daniel Antman, Director Business Development
daniel.antman@australiaratings.com
0418 230 494

Natasha Hall
natasha.hall@australiaratings.com
03 8080 6684

TRILOGY TRUSTS ASSIGNED 'STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 21 November 2019 – Australia Ratings announces STRONG rating for both Trilogy Monthly Income Trust and Trilogy Enhanced Cash

Australia Ratings Analytics (Australia Ratings) has reviewed two Trilogy Funds; the Trilogy Monthly Income Trust and the Trilogy Enhanced Cash (Trust). Both funds have been rated as STRONG. A rating of STRONG indicates a strong conviction that the Fund can deliver a risk-adjusted return in line with the Fund’s investment objective.

The Trilogy Monthly Income Trust has been also assigned a Product Complexity Indicator of YELLOW to designate the view that the Fund is a COMPLEX financial product. This is an indication that the underlying assets require specialist investment skills to acquire and to monitor. In addition, investment in this Fund requires careful management of investor redemption requests as the core assets have limited liquidity. Investors should have a good understanding of the term and characteristics of the distributions from this type of fund.

The Trilogy Monthly Income Trust is a pooled mortgage trust which was established in February 2007. The underlying investments are loans secured by first mortgages over property development, construction, and refinancing of completed stock. Since inception in 2007, the Trilogy Monthly Income Fund has paid a distribution every month, has honoured all withdrawal requests, and has maintained a stable unit price of $1.00. Five year performance to 30 September 2019, was 7.88% p.a net of fees.

Trilogy Enhanced Cash has been assigned a Product Complexity Indicator of BLUE to designate the view that the Fund is a RELATIVELY SIMPLE financial product. This is an indication that, while the fund is expected to move fairly closely in line with mainstream markets, there may be periods where it outperforms or underperforms.

Trilogy Enhanced Cash is an open-ended registered investment scheme, which was established in November 2016. The underlying investments are targeted at 70% for cash and cash-style products, including underlying enhanced cash funds and mandates, and 30% investment in the Trilogy Monthly Income Trust. Trilogy aims to hold the unit price of Trilogy Enhanced cash at $1.00, by calculating, allocating and distributing interest and other income at the end of each month. Performance since inception to September 2019 has been 4.13% p.a net of fees.

Trilogy Funds Management Limited had its origins in 1998 when a Brisbane law firm, of which Philip Ryan was a partner, commenced an investment company managing mortgages and property assets. This company was acquired in 2004 by interests associated with the present management when Rodger Bacon and John Barry left their positions at Challenger Financial, where they were Executive Directors of either Challenger or its subsidiaries.

Australia Ratings’ analyst, Maggie Callinan, said “the rating reflects the experience and track record of Trilogy Funds Management and their expertise in managing CRE lending.” She added “the rating also indicates the high level of confidence Australia Ratings has that the Fund will continue to deliver a strong risk-adjusted return”.

The research report is available from www.australiaratings.com.

FOR MORE INFORMATION, CONTACT:

Maggie Callinan, Director
maggie.callinan@australiaratings.com 03 8080 6684

ABOUT AUSTRALIA RATINGS

Australia Ratings is a local, independent rating agency that provides research and ratings on debt securities, investment products, and Operational Capability Assessments. As an ASIC-licensed rating agency, we provide general advice to the broader investment community through our detailed reports. We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.

About Australia Ratings’ Investment Rating

Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term.The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks. Click here to find out more.

MAXCAP FIRST MORTGAGE CONSTRUCTION FUND ASSIGNED 'VERY STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 11 November 2019 – MaxCap First Mortgage Construction Fund – rated VERY STRONG.

Australia Ratings Analytics (Australia Ratings) has assigned an investment rating of ‘VERY STRONG’ to the MaxCap First Mortgage Construction Fund (the Fund). A Product Complexity Indicator of ‘YELLOW’ has also been assigned to designate the view that the Fund is a COMPLEX financial product, indicating that the underlying assets require specialist investment skills to acquire and to monitor. In addition, investment in this Fund has restrictions on the ability to redeem due to the relatively illiquid nature of the underlying loans. Investors should have a good understanding of the term and characteristics of the distributions from this type of fund. This Fund is available to wholesale investors only.

A rating of VERY STRONG is the second highest rating on the investment rating scale used by Australia Ratings. A VERY STRONG investment rating indicates a very strong conviction that the Fund can deliver a risk-adjusted return in line with the Fund’s investment objective.

The MaxCap First Mortgage Construction Fund (MFMC) is managed by MaxCap Investment Management P/L, a subsidiary of MaxCap Group P/L, a Melbourne-based specialist commercial real estate (CRE) investment manager. MFMC invests in Australian and New Zealand CRE construction loans, targeting relatively short-term, medium-sized loans of AUD30m to AUD50m. All loans are senior, first mortgage loans with a maximum Loan to (completed) Value of 65%. While this sector has typically been the domain of the major banks, regulatory pressure has meant that experienced non-bank participants are now seeing excellent deal flows and strong risk adjusted returns.

Since its inception, the Fund has focused on investing in a diverse mix of CRE loans, with the portfolio currently tracking at a net internal rate of return of 11.85% as at 30 September 2019.

Australia Ratings’ analyst, Maggie Callinan, says “the rating reflects the experience and track record of MaxCap Investment Management and their expertise in managing CRE lending”. She added, “the rating also indicates the high level of confidence Australia Ratings has that the Fund will continue to deliver a strong risk-adjusted return”.

The research report is available from www.australiaratings.com.

FOR MORE INFORMATION, CONTACT:

Maggie Callinan, Director
maggie.callinan@australiaratings.com 03 8080 6684

ABOUT AUSTRALIA RATINGS

Australia Ratings is a local, independent rating agency that provides research and ratings on debt securities, investment products, and Operational Capability Assessments. As an ASIC-licensed rating agency, we provide general advice to the broader investment community through our detailed reports. We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.

About Australia Ratings’ Investment Rating

Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term.The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks. Click here to find out more.

INFRASTRUCTURE PARTNERS INVESTMENT FUND ASSIGNED 'VERY STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 28 October 2019 – Infrastructure Partners Investment Fund – Core rated VERY STRONG

Australia Ratings Analytics (Australia Ratings) has assigned an investment rating of ‘VERY STRONG’ to the Infrastructure Partners Investment Fund – Core (the Fund). A Product Complexity Indicator of ‘YELLOW’ has also been assigned to designate the view that the Fund is a COMPLEX financial product indicating that the Fund has an absolute return objective and that the underlying assets/funds are unlisted and illiquid.

A rating of VERY STRONG is the second highest rating on the investment rating scale used by Australia Rating. A VERY STRONG investment rating indicates a very strong conviction that the Fund can deliver a risk-adjusted return in line with the Fund’s investment objective.

The Infrastructure Partners Investment Fund – Core is managed by IPIF Management Pty Limited, founded by Nicole Connolly in 2014. The Fund is a unique offering providing investors exposure - through a Fund of Fund (FoF) structure - to a well-diversified portfolio of unlisted infrastructure assets featuring Australia’s major airports (including Perth, Melbourne, Adelaide, Brisbane, etc.), TransGrid, South East Water and the Sydney Desalination Plant among other investments. Due to their size, such assets are typically only accessible to large institutional investors such as pooled superannuation funds.

Since its inception, the Fund has focused on investing in well-established unlisted infrastructure funds and building an exposure to mature, cash-generating assets with a balanced mix of regulated and inflation linked investments.

Australia Ratings’ analyst, Dragana Timotijevic, said “The rating reflects the quality of the underlying assets and IPIF Management Limited’s expertise in managing unlisted infrastructure investments.” She added “the rating also indicates the high level of confidence Australia Ratings has that the Fund will continue to deliver a stable and uncorrelated return relative to equity markets”.

The Fund makes semi-annual distributions, targeting net of fees returns of 3.5% over the 10 Year Government Bond Rate. As at August 31 2019, the Fund had around $133mn funds under management.

An abridged version of the research report is available from www.australiaratings.com. For a copy of the full report please contact Daniel Antman at daniel.antman@australiaratings.com or Jonathan van Rooyen at jonathan@ipif.com.au.

FOR MORE INFORMATION, CONTACT: 

Dragana Timotijevic, Director, at dragana.timotijevic@australiaratings.com or 03 8080 6684

ABOUT AUSTRALIA RATINGS 

Australia Ratings is a local, independent rating agency that provides research and ratings on debt securities, investment products, and Operational Capability Assessments. As an ASIC-licensed rating agency, we provide general advice to the broader investment community through our detailed reports. We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.

About Australia Ratings’ Investment Rating

Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term.The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks. Click here to find out more.

RATING OF AURA HIGH YIELD SME FUND UPGRADED TO VERY STRONG


Melbourne, 12 March 2019 – Rating of Aura High Yield SME Fund upgraded to VERY STRONG 

Australia Ratings Analytics (Australia Ratings) has upgraded its investment rating of the Aura High Yield SME Fund (the Fund) to VERY STRONG from STRONG.

A rating of VERY STRONG is the second highest rating on the investment rating scale used by Australia Rating. A VERY STRONG investment rating indicates a very strong conviction that the fund can deliver a risk adjusted return in line with the fund’s investment objective.

The Aura High Yield SME Fund is managed by Aura Funds Management Limited and invests in non-bank lenders specialising in providing finance to small and medium (SME) businesses in Australia. The Fund obtains this exposure through structured notes that are backed by secured and unsecured loans to SMEs that provide an attractive risk adjusted return.

Australia Ratings’ analyst Maggie Callinan said “The upgrade of the rating reflects increased confidence in the ability of the Manager to identify robust non-bank lending platforms to gain exposure to the SME sector”. She added “the upgrade also reflects an increasing degree of diversification in the fund as it now finances two SME lending platforms”. Ms Callinan also noted that “the Fund continues to offer an attractive investment on a risk-return basis that captures the higher interest rate premium of SME loans without the substantial cost overhead typical of a bank lender’.

The Fund offers monthly income, targeting returns at 10 - 12% p.a. (net of management fees) with low level of capital loss from diversified pools of loans in each tranche of its investments. As at March 2019, the Fund had $18.5 million assets under management.

Australia Ratings has also assigned its Product Complexity Indicator of ‘YELLOW’ indicating the fund as a Complex financial product. Aura’s key capability, which is complex given the relatively new upsurge in this sector, is the ability to identify and validate superior loan underwriting and servicing standards of non-bank lenders with experience in the SME sector.

A full rating report is available from www.australiaratings.com

FOR MORE INFORMATION CONTACT:

Maggie Callinan, Director
maggie.callinan@australiaratings.com
03 8080 6684

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks. Click here to find out more.

LA TROBE FINANCIAL ASSET MANAGEMENT LTD’S OPERATIONAL CAPABILITY RANKING AFFIRMED AT ‘VERY STRONG’


Melbourne, 11 February 2019 – Australia Ratings has affirmed La Trobe Financial Asset Management’s (LFAM) Operational Capability Assessment (OCA) at ‘Very Strong’.

LFAM’s ‘Very Strong’ ranking reflects its sound governance, risk management, and compliance frameworks, and its experienced and focussed staff. The confirmation also reflects LFAM’s continuing prudent management of the business and mortgage assets to protect investor capital and interest as well as the strategic support of Blackstone Group L.P., the majority shareholder in of the La Trobe Financial Group of Companies.

Australia Ratings analyst Natasha Hall said, “the confirmation of the ‘Very Strong’ ranking reflects LFAM’s continued focus to prudently originate and manage mortgage assets in the La Trobe Australian Credit Fund and to manage its growth and performance in a softening housing market to preserve investor capital.” Ms Hall added, “whilst arrears management will remain a key focus, LFAM’s policy and practice of managing asset quality and performance has led to arrears levels that remain comparable to industry performance for near-prime mortgages.”

LFAM – the Responsible Entity for The La Trobe Australian Credit Fund – is wholly owned by La Trobe Financial Pty Limited and forms part of the La Trobe Financial Group of companies. The La Trobe Financial Group’s key business as a credit specialist is to originate mortgages and offer investors (institutional and retail) an opportunity to invest in mortgages and other credit assets, including mortgage-backed securities via the Fund.

A full rating report is available from www.australiaratings.com.
Find out more about Australia Ratings’ Operational Capability Assessments by visiting www.australiaratings.com

FOR MORE INFORMATION, CONTACT:
Chris Dalton, Managing Director
chris.dalton@australiaratings.com
03 8080 6684 

Natasha Hall
natasha.hall@australiaratings.com
03 8080 6684


 

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