NEWS


ARTESIAN CORPORATE BOND FUND ‘A-‘ CREDIT RATING AFFIRMED


Melbourne, Tuesday, 23 May 2017 – Australia Ratings affirmed its ‘A-‘ credit rating to the Artesian Corporate Bond Fund (the Fund) Class A and B units, following several changes to the Fund’s terms and administrative arrangements.

Australia Ratings also confirmed its product complexity indicator of ‘BLUE’ to the Fund’s units, indicating that an investment in the Fund represents a relatively simple financial investment.

An investment in the Fund represents a purchase of units in a registered managed investment scheme. The Fund’s objective is to earn a return above the RBA Cash Rate plus 2.75% (net of the ordinary costs of the Fund as apportioned to the two classes of units).

The ‘A-‘ rating reflects the Fund’s strong degree of protection against loss from credit risk. The Fund’s assets are of a credit quality that supports its ability to meet redemption requests. The ‘A-‘ rating also reflects the planned direction of the credit quality of the portfolio as funds under management grow and the Fund reaches its critical threshold.

The credit rating reflects the following key strengths of Artesian Corporate Bond Fund:

  • focuses on investment grade fixed and floating securities issued by Australian companies or registered foreign companies.;
  • at least 90% of the funds will be invested in investment grade securities rated BBB- or higher;
  • a conservative risk appetite focusing on large floating rate exposure to manage interest rate risk.

The credit rating also reflects the following key risks to the Artesian Corporate Bond Fund:

  • future adverse credit market conditions could affect the unit value and credit quality of the portfolio
  • the Fund currently has a concentrated portfolio and small investor base
  • the rating reflects analysis based on the Fund’s Investment Management Agreement which permits certain exceptions while the funds under management reaches a critical threshold

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

For more information contact:
Chris Dalton, Managing Director
0403 584 600
03 8080 6684

 

About Australia Ratings Australia Ratings is Australia’s local credit rating agency with over 55 years of experience in assessing and rating credit risk. Australia Ratings was formed in 2010 following regulatory reforms to the operation of credit rating agencies in Australia. Australia Ratings Pty Limited holds Australia Financial Services License No. 346138. 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.

SANDHURST STRATEGIC INCOME FUND’S RATING UPGRADED TO ‘A+’


 

Melbourne, 15 May 2017– Australia Ratings has upgraded its credit rating of ‘A’ to ‘A+’ to Sandhurst Strategic Income Fund’s Class A and Class B units (“the Fund”).

The one notch upgrade reflects the strong level of creditworthiness of the Fund; the historical performance of the Fund; and the solid performance of the investment management team in managing the Fund.

Australia Ratings analyst Renee Corcoran said “Investors in the Fund benefit from a high quality diversified portfolio of term deposits and fixed income securities with low volatility risk in asset value changes due to changes in interest rates. Over the last 12 months, greater emphasis has been placed on shorter term, more liquid securities.”

Ms Corcoran added “The consistent strengthening of the underlying credit quality of the portfolio has been a main driver for the Fund’s rating upgrade. The portfolio management team has also continued to actively and conservatively manage the portfolio.”

A rating of ‘A+’ represents that the Fund has a strong degree of protection against loss from credit risk on the rating scale used by Australia Ratings for fixed income funds. The rating primarily reflects the credit quality of the Fund’s investments and the experience and skill of Sandhurst Trustees Limited’s Fund Management team.

Sandhurst Strategic Income Fund was launched in July 2011 and is part of the Bendigo Wealth division and a wholly-owned subsidiary of Bendigo and Adelaide Bank Group.

The units provide investors with a quarterly distribution of income and a return of principal via a redemption request. Australia Ratings has also confirmed its Product Complexity Indicator of ‘BLUE” to the Fund’s units to indicate that an investment in the units represents a relatively simple type of fixed interest investment. The BLUE indicator highlights that in certain exceptional circumstances the Fund may defer redemption requests to manage its liquidity.

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

For more information contact:

Renee Corcoran, Director, Australia Ratings
Phone: 03 8080 6684

 

About Australia Ratings

Australia Ratings is Australia’s local credit rating agency with over 55 years of experience in assessing and rating credit risk. Australia Ratings was formed in 2010 following regulatory reforms to the operation of credit rating agencies in Australia. Australia Ratings Pty Limited holds Australia Financial Services License No. 346138.

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.

 

MASON STEVENS CREDIT FUND’s ‘BBB’ CREDIT RATING WITHDRAWN


Melbourne, 5 May 2017 – Australia Ratings has withdrawn its credit rating of ‘BBB’ to the Fund’s units. A ‘BBB’ rating indicates a fixed income portfolio has a moderate level of protection against loss arising from credit risk.

Australia Ratings has also withdrawn its Product Complexity Indicator (PCI) of ‘YELLOW” which indicates that the terms and conditions of an investment represents a complex type of investment. The rating and PCI have been withdrawn at the request of the manager of the Mason Stevens Credit Fund.

Mason Stevens Credit Fund was launched in 2013 and aims to generate a return of 3.5% above the Cash Rate by investing in securities that generate both income and yield. The units provide investors with a quarterly distribution of income and a return of principal via a redemption request.

 

For more information contact:

Chris Dalton, Managing Director
chris.dalton@australiaratings.com
0403 584 600
03 8080 6684

 

About Australia Ratings

Australia Ratings is Australia’s local credit rating agency with over 55 years of experience in assessing and rating credit risk. Australia Ratings was formed in 2010 following regulatory reforms to the operation of credit rating agencies in Australia. Australia Ratings Pty Limited holds Australia Financial Services License No. 346138.

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.


 

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