Melbourne, 22 December 2017 – Australia Ratings has assigned a ‘STRONG’ investment rating to Two Trees Global Macro Fund (“the Fund”).
A STRONG investment rating indicates a strong conviction that the trust can deliver a risk
adjusted return in line with its investment objective; 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 Two Trees Global Macro Fund is systematic using value and momentum risk factors to build a portfolio that targets absolute returns throughout the market
cycle. These returns are expected to have a very low correlation to mainstream equity markets. The Fund’s objective is to produce return of 8 – 10%
over cash over a market cycle.
The Fund is managed by Two Trees Investment Management and backed by Pinnacle Fund Services, which provides significant capital, bank and middle office
support to the investment team.
Australia Ratings’ analyst Daniel Liptak said “The Strong investment rating reflects the investment team’s experience and Pinnacle’s support.” Mr Liptak
adds “with its expansion and resources globally we believe that there will be wide appeal for the Two Trees’ strategy.”
ince its inception in November 2017, the fund has currently no performance history and at this stage has relatively low funds under management based revenue.
Australia Ratings has also assigned its Product Complexity Indicator of ‘ORANGE’ indicating
the fund as a more complexfinancial product. This indicates that the fund generates returns through a variety of non-standard investment strategies.
Products of this type are often known as Hedge Funds. The strategies used include model-driven investment selection, return generation using derivatives,
and a performance profile that does not track mainstream markets. This type of fund is typically used to diversify portfolio risk or to provide superior
returns to the underlying market.
A full rating report is available from www.australiaratings.com/.
FOR MORE INFORMATION CONTACT:
Daniel Liptak, Director firstname.lastname@example.org 03
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.