Melbourne, 3 May 2018 – Australia Ratings has assigned a ‘VERY STRONG’ investment rating to Acorn Capital Investment Fund Limited (“the Fund”).
The 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 based on our investment rating scale to indicate how well we believe a fund will perform against a range of risks.
Acorn Capital Investment Fund Limited, managed by Acorn Capital Limited, is an ASX listed investment company that invests in listed and unlisted microcap companies.
The Fund aims to create a diversified portfolio of microcaps and invest opportunistically in unlisted entities that offer better value to their listed counterparts.This provides investors access to companies differentiated by their smaller size and development stage - via a diversified portfolio.As at March 2018, the Fund’s investment split was 70%, 28% and 2% listed companies, unlisted companies and cash respectively.
Australia Ratings’ analyst Daniel Liptak said “The Very Strong investment rating reflects our view as to the competence, capability and market standing of key portfolio managers and staff running the fund, coupled with anticipated future fund investment manager’s deep experience, resources and solid track record.”
The Fund’s investment philosophy, investment strategy, investment process and risk management are well established and tried and tested. This view is based on the collective experience of the Acorn Capital executives and the fundamental research and investment expertise they exploit to the Fund’s portfolio’s advantage.
Australia Ratings has also assigned its Product Complexity Indicator (PCI) of ‘BLUE’ indicating the fund as a Relatively Simple financial product, with investment managers seeking to outperform their chosen mainstream market sector.
FOR MORE INFORMATION CONTACT:
Daniel Liptak, Director
03 8080 6684
ABOUT AUSTRALIA RATINGS
Australia Ratings is a local, independent rating agency that provides timely and credible ratings information and research to the broader investment community.As an ASIC-licensed rating agency, we provide general advice by issuing credit ratings on debt securities and companies; and fund ratings on Australian managed funds.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.
Rating opinions of Australia Ratings are determined by its analytical team in accordance with its rating methodology. The Board of Australia Ratings whose members include Jarrod Brown, Chris Dalton and Mike Dontschuk oversee the application of Australia ratings rating methodology and the integrity of the rating process.
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.
About the Product Complexity Indicator
Our proprietary colour-coded product complexity indicator (PCI) highlights the complexity level of an investment by its terms and conditions’ structure and transparency that may affect an investor’s return.