NEWS


SMARTER MONEY INVESTMENTS FUNDS REVIEWED AND AFFIRMED

Melbourne, 23 April 2020 – Smarter Money Investments Funds Reviewed and Affirmed

Australia Ratings Analytics (Australia Ratings) has completed a review of Smarter Money Investments Pty Ltd’s three funds; the Smarter Money Higher Income Fund, the Smarter Money Fund, and the Smarter Money Long Short Credit Fund (the Funds). All three Funds have been affirmed at their ratings of 'SUPERIOR', 'SUPERIOR', and 'VERY STRONG', respectively.

The Smarter Money Higher Income Fund and the Smarter Money Fund have been assigned a ‘SUPERIOR’ investment rating. A Product Complexity Indicator of ‘BLUE’ has also been assigned to reflect the view that the Funds are considered ‘RELATIVELY SIMPLE’ financial products, indicating that the investment manager will seek to outperform their chosen mainstream market sector.

The Smarter Money Long Short Credit Fund has been assigned a ‘VERY STRONG’ investment rating. A Product Complexity Indicator of ‘ORANGE’ has also been assigned, designating the Fund as a ‘MORE COMPLEX’ financial product. This indicates that the Fund generates returns through a variety of non-standard investment strategies; these strategies may include the use of leverage, the ability to go long and short, investment in sub-investment grade securities, and the use of over-the-counter credit derivatives.

Ratings of 'SUPERIOR' and 'VERY STRONG' are the two highest ratings on the investment rating scale used by Australia Ratings. These ratings denote a very high level of confidence that the Fund can deliver a risk-adjusted return in line with the Fund’s investment objective.

All three of the Funds are managed by Coolabah Capital Institutional Investments Pty Ltd (CCI) via a sub-investment management agreement with Smarter Money Investments Pty Ltd. CCI are a boutique fixed interest specialty manager based in Sydney, NSW.

Australia Ratings’ analyst, Dragana Timotijevic, says “the ratings assigned to these Funds reflects Australia Ratings’ confidence in CCI’s investment strategy”. She added, “we believe CCI are in a relatively strong position to weather the challenges raised by the current COVID-19 situation due to their nimble strategy and the quality and liquidity of their portfolio”.

The research report is available from www.australiaratings.com.

 

FOR MORE INFORMATION, CONTACT:

Dragana Timotijevic, Director

dragana.timotijevic@australiaratings.com 03 8080 6684

 

ABOUT AUSTRALIA RATINGS

Australia Ratings is a local, independent rating agency that provides research and ratings on debt securities, investment products, and Operational Capability Assessments. As an ASIC-licensed rating agency, we provide general advice to the broader investment community through our detailed reports. 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.

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. Click here to find out more.

 


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