NEWS


SANDHURST STRATEGIC INCOME FUND ASSIGNED A 'SUPERIOR' INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 23 February 2018 –Australia Ratings has assigned a ‘SUPERIOR’ investment rating to the Sandhurst Strategic 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 “Since inception, the Sandhurst Strategic Income Fund has delivered to its objective providing returns of 0.80% over the benchmark of a 5 year basis, while maintaining a high level of capital stability and liquidity.“

Ms Callinan added, “the rating also reflects the investment manager’s experience. The investment process applied is robust and the investment approach is conservative, technical and highly analytical.”

The Sandhurst Strategic Income Fund’s objective is to provide enhanced cash investment targeting a return above the benchmark Bloomberg AusBond Bill Index. The Fund invests primarily in Australian dollar denominated cash, money market securities and asset backed securities. The portfolio is actively managed to minimise capital loss and provide consistent income over time.

Sandhurst Trustees Ltd – a wholly-owned subsidiary of the Bendigo and Adelaide Bank - is the investment manager and responsible entity of the Fund. Sandhurst has Bendigo and Adelaide Bank’s support for the strategy and employs a well-defined and rigorous process.

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 are well documented and do not include the use of leverage or derivatives for trading purposes. While this fund is expected to move fairly closely in line with mainstream markets, there may be periods where it outperforms or underperforms 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.


MCP MASTER INCOME TRUST (MXT) ASSIGNED A 'SUPERIOR' INVESTMENT RATING


Melbourne, 9 February 2018 – Australia Ratings has assigned a ‘SUPERIOR’ investment rating to MCP Master Income Trust (MXT) (the Trust).

A SUPERIOR indicates the highest level of confidence that the Trust can deliver a risk adjusted return in line with the Trust’s investment objective. This is the highest investment rating that can be assigned by Australia Ratings based on our investment rating scale to indicate how well we believe a fund will perform against a range of risks.

The MCP Master Income Trust (MXT), managed by Metrics Credit Partners Pty Ltd, is an ASX listed investment trust investing in the Australian direct corporate loan market, a sector which is dominated by bank investment.The Trust was launched in October 2017 with a market capitalisation of $537 million as at end December 2017.

The Trust offers investors monthly targeted rate of 3.25%p.a. above the RBA cash rate with a low risk of capital loss by investing in a well-diversified and actively managed portfolio of Australian corporate loans.

Australia Ratings’ analyst Maggie Callinan said “MXT’s Superior rating reflects the investment manager’s deep experience, resources and solid track record.” Ms Callinan adds, “the Trust offers investors an attractive investment on a risk-return basis offering well managed, well diversified investment in a sub-asset class that would otherwise be difficult to access for non-bank investors.”

Australia Ratings has also assigned its Product Complexity Indicator (PCI) of ‘BLUE’ indicating the trust as a Relatively Simple financial product, with investment managers seeking to outperform their chosen mainstream market sector - the Australian corporate loan market.

The investment, equity funded corporate loans, currently has no core leverage.The strategies used to outperform, while requiring a depth of market experience and due diligence, are completely compatible with normal market practice.This includes the potential conversion of debt to equity in a restructuring, where the strategy is designed to limit capital loss.

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.


 

AURA HIGH YIELD SME FUND ASSIGNED A 'STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 7 February 2018 – Australia Ratings has assigned a ‘STRONG’ investment rating to Aura High Yield SME Fund (“the Fund”).

A STRONG investment rating indicates a strong conviction that the fund can deliver a risk adjusted return in line with the fund’s 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 Aura High Yield SME Fund - managed by Aura Funds Management Limited – invests in non-bank lenders specialising in providing finance to small to medium (SME) businesses in Australia. The Fund obtains this exposure through structured notes that are backed by secured and unsecured loans to SMEs that provide an attractive risk adjusted return.

The Fund offers monthly income, targeting returns at 12% p.a. (net of management fees) with low level of capital loss from a diversified portfolio of debt securities, principally issued by lenders to SME businesses. As at 31 December 2017, the Fund had $6 million assets under management since its inception in August 2017.

Australia Ratings’ analyst Daniel Liptak said “The Fund offers an attractive investment on a risk-return basis that captures the higher interest rate premium of SME loans without the substantial cost overhead typical of a bank lender. “ Mr Liptak adds “the Strong investment rating reflects the investment managers’ deep industry experience and the investment team’s long history in FinTech and AltFi Fintech financing.”

Australia Ratings has also assigned its Product Complexity Indicator of ‘YELLOW’ indicating the fund as a Complex financial product. This indicates that the investment manager will seek to outperform their chosen specialist market secto - the Australian SME loan market. A key risk is the ability of Aura to identify and validate superior loan underwriting and servicing standards of non-bank lenders with experience in the SME 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.



 

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