Melbourne, 20 April 2018 – Australia Ratings has assigned a ‘VERY STRONG’ investment rating to the Australian Eagle Trust (“the Fund”).
A VERY STRONG rating indicates a very strong conviction that the Fund can deliver a risk adjusted return in line with the Fund’s investment objective.
This is based on an investment rating scale used by Australia Ratings to indicate how well we believe a fund will perform against a range of risks.
The Australian Eagle Trust - managed by Alleron Investment Management Pty Ltd - is a long-short strategy that draws on Alleron’s demonstrated expertise
in constructing Australian share portfolios.
The Fund aims to provide capital growth over the longer term through a leveraged long-short Australian shares strategy. In the year to 31 March 2018, the
Fund has outperformed the S&P/ASX 100 Acc Index by 15.83%.
Australia Ratings’ analyst Maggie Callinan said “The Fund is managed by a stable, experienced and well-credentialed investment management team that implements
a robust and disciplined investment process.” Ms Callinan adds, "The investment philosophy, investment strategy, investment process and risk management
elements of the company’s activities are well established and embedded within Alleron."
Australia Ratings believe that an investment in the fund can provide an exposure to Australian equities with potential to outperform the underlying market
and a form of downside protection.An investment in the fund should be considered as a long-term one.
Australia Ratings has also assigned its Product Complexity Indicator (PCI) of ‘YELLOW’ indicating the fund as a Complex financial product, with investment
managers seeking to outperform their chosen mainstream market sector - the Australian equities market, by including a leveraged short-selling component
to its strategy.
A full rating report is available from www.australiaratings.com/.
FOR MORE INFORMATION CONTACT:
Maggie Callinan, Director
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.