NEWS


TWO TREES GLOBAL MACRO FUND ASSIGNED A 'STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS
Friday, December 22, 2017


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 daniel.liptak@australiaratings.com 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.


SMARTER MONEY HIGHER INCOME FUND ASSIGNED A 'SUPERIOR' INVESTMENT RATING BY AUSTRALIA RATINGS
Wednesday, December 06, 2017


Melbourne, 6 December 2017 –Australia Ratings has assigned a ‘SUPERIOR’ investment rating to Smarter Money Higher Income Fund (the Fund).

A ‘SUPERIOR’ investment rating indicates the highest level of confidence 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.

Australia Ratings’ analyst Maggie Callinan said “The Fund builds on the investment manager’s expertise in the Australian fixed interest market to deliver a strategy with the objective of generating absolute returns that have low to no correlation with equities, fixed rate bonds and property markets.”

The Fund is actively managed with the majority of its assets invested in low risk and liquid investments such as Australian denominated cash or cash equivalents; and investment-grade debt and hybrid securities. 

Launched in September 2014, the Smarter Money Higher Fund aims to generate a return of 1.5% to 3.0% p.a. above the RBA official cash rate. The Smarter Money Higher Income Fund is managed by Smarter Money Investments (SMI) and Coolabah Capital Investments (CCI).

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. The strategies used to outperform may include use of very liquid derivatives such as index futures contracts and/or thematic/sector overweight positions. While these funds are still expected to move fairly closely in line with mainstream markets, there may be periods where they outperform or underperform the benchmark index.

A full rating 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 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.


 

CYAN C3G FUND ASSIGNED A 'COMPETENT' INVESTMENT RATING BY AUSTRALIA RATINGS
Tuesday, December 05, 2017


Melbourne, 8 December 2017 – Australia Ratings has assigned a ‘COMPETENT’ investment rating to the Cyan C3G Fund (“the Fund”).

A COMPETENT investment rating indicates that the fund may deliver a return in line with the fund’s relevant benchmark; 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 Fund offers a diversified but select investment exposure to high-quality emerging ASX-listed companies. Cyan 3G Fund has been one of the strongest-performing small-cap funds in the Australian market, delivering returns to investors of more than 30% per annum since inception three years ago.

The Fund - managed by Cyan Investment Management - was established in July 2014 and had $28 million of funds under management as at 31 October 2017.Its objectives are to achieve a high real rate of return over the long term within defined risk parameters” and “to achieve a positive return over the long term regardless of overall market conditions”.

Australia Ratings’ analyst Daniel Liptak said “The investment rating reflects the two key portfolio managers’ deep experience in the investment industry, coupled with continuity in their professional relationships”.

Australia Ratings has also assigned its Product Complexity Indicator of ‘BLUE’ classifying the fund as a relatively simple financial product which indicates that the Investment Managers will seek to outperform its chosen mainstream market sector.

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

FOR MORE INFORMATION CONTACT:

Daniel Liptak, Director daniel.liptak@australiaratings.com 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.

SMARTER MONEY LONG-SHORT CREDIT FUND ASSIGNED A 'VERY STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS
Tuesday, December 05, 2017


Melbourne, 5 December 2017 – Australia Ratings has assigned a ‘VERY STRONG’ investment rating to Smarter Money Long-Short Credit Fund (the Fund).

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. 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 Smarter Money Long-Short Credit Fund, managed by Smarter Money Investments (SMI) and Coolabah Capital Investments (CCI), is an absolute return fixed-income strategy targeting relatively high single digit returns through actively exploiting mis-pricings in credit markets.

CCI generates alpha returns by taking a “long” and/or “short” positions in relation to assets which it considers are trading below or above fair value - using leverage to magnify the fund’s alpha, and actively managing the portfolio allocation between cash and credit.

Australia Ratings’ analyst Maggie Callinan said “The Fund builds on the investment manager’s expertise in the Australian fixed interest market to deliver a strategy with the objective of generating alpha returns that have low to no correlation with equities, fixed rate bonds and property markets.”

Launched in September 2017 with an internal seed capital of about A$15million, the Fund has since grown to approximately A$60 million under management.

Australia Ratings has also assigned its Product Complexity Indicator (PCI) of ‘ORANGE’ indicating the fund as a More Complex financial product where the manager seek to generate returns through a wide variety of non-standard investment strategies. Products of this type are often known as hedge funds.

The strategies used may include model-driven investment selection, exposure to underlying markets through both mainstream and complex derivatives and use of leverage. These types of funds are 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:

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


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

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.

SMARTER MONEY FUND ASSIGNED A 'SUPERIOR' INVESTMENT RATING BY AUSTRALIA RATINGS
Monday, December 04, 2017


Melbourne, 4 December 2017 –Australia Ratings has assigned a ‘SUPERIOR’ investment rating to Smarter Money Fund (the Fund).

A ‘SUPERIOR’ investment rating indicates the highest level of confidence 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.

Australia Ratings’ analyst Maggie Callinan said “The Fund builds on the investment manager’s expertise in the Australian fixed interest market to deliver a strategy with the objective of generating returns that have low to no correlation with equities, fixed rate bonds and property markets.”

The Smarter Money Fund (formerly the Smarter Money Active Cash Fund) is managed by Smarter Money Investments (SMI) and Coolabah Capital Investments (CCI).

Launched in February 2012, the Smarter Money Fund aims to generate returns that outperform RBA cash rate plus 1% to 2% p.a after fees and usual expenses.

The actively-managed Fund invests in Australian dollar denominated fixed income securities that carry minimal interest rate risk such as cash and floating-rate securities. 

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. The strategies used to outperform may include use of very liquid derivatives such as index futures contracts and/or thematic/sector overweight positions. While these funds are still expected to move fairly closely in line with mainstream markets, there may be periods where they outperform or underperform the benchmark index.

A full rating 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 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.


 


 

© Copyright 2017 Australia Ratings. All Rights Reserved
Site developed by manageWeb
This website is published by Australia Ratings Pty Ltd (ABN 90 141 393 375), holder of AFS licence 346138 and Australia Ratings Analytics Pty Ltd (ABN 95 616 254 294), holder of AFS licence 494552. The information contained in this website is of a general nature only, and does not take into account your objectives, financial situation and needs. You should consult your own professional advisers before making an investment decision.