NEWS


AUSTRALIA RATINGS EXPANDS TO INVESTMENT RATING & RESEARCH SERVICES
Friday, March 02, 2018


Melbourne, 2 March 2018 – Australia Ratings has announced its recent expansion into rating of funds and other investment products.The new investment rating and research service focuses on compelling investment strategies and quality fund managers to help investors identify investment opportunities that are among “best in class”.

Australia Ratings’ Managing Director, Chris Dalton said “Since releasing our first investment ratings in the last quarter of 2017, we’ve seen a growing demand from independent advisors and the wealth management groups for quality, reliable research on managed funds that offer distinct and attractive opportunities.”

Mr Dalton added, “We aim to cover a broad range of funds.We will seek to build on our strong capabilities in equity, credit and alternative assets for those investors seeking to diversify with specialist funds. Our focus will be to work with financial advisors, wealth managers, informed investors and family offices who are looking for fresh investment ideas and quality fund managers.”

Based on qualitative and quantitative analysis, Australia Ratings’ investment rating reflects a forward looking opinion to help investors gauge a fund's or investment’s performance against a benchmark index.

A five-point scale is used to differentiate Australia Ratings’ opinion on how well a fund will perform against a range of risks. From the highest ‘Superior” rating – indicating a highest level of confidence to the lowest ‘Weak’ rating – indicating that the Fund is unlikely to deliver a return in line with its objectives.A colour-coded product complexity indicator (PCI) attached to the rating will also highlight to investors an investment product’s complexity level.

The launch of Australia Ratings’ investment rating and research services is a natural progression for the local rating agency which currently provides credit ratings on ASX listed debt and hybrid securities and private analytical work.

The investment ratings team is led by Chris Dalton and consists of fund analysts with deep knowledge in risk analysis, fund selection and financial journalism including Daniel Liptak, Maggie Callinan and Simon Ibbetson.

Australia Ratings is the first and only local rating agency to hold a retail Australian Financial Services Licence (AFSL).

Find out more about Australia Ratings new investment rating and research service www.australiaratings.com/investment-ratings

For more information contact:

Chris Dalton, Managing Director
03 8080 6684
0403 584 600

Bonnie Hill, Client Relations Director
03 8080 6684
0417 142 817

Download Media Release (pdf)

About Australia RatingsAustralia 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.


SANDHURST STRATEGIC INCOME FUND ASSIGNED A 'SUPERIOR' INVESTMENT RATING BY AUSTRALIA RATINGS
Friday, February 23, 2018


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
Friday, February 09, 2018


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
Wednesday, February 07, 2018


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.


KARARA MARKET NEUTRAL FUND ASSIGNED A 'STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS
Monday, January 22, 2018


Melbourne, 22 January 2018 – Australia Ratings has assigned a ‘STRONG’ investment rating to Karara Market Neutral Fund (“the Fund”).

A STRONG investment rating indicates a strong conviction that the fund 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 Fund is an Australian equity market-neutral fund; investing in products across large cap, small cap, mid cap and long only REIT and market neutral. The fund predominantly trades liquid Australian listed equity, property and infrastructure with moderate leverage.

Karara Market Neutral Fund is managed by Karara Capital and is currently open to wholesale investors. The fund was established in August 2016 and its aim is to outperform the RBA cash rate (after fees) over rolling five-year periods. The target is high single-digit/low double-digit returns per annum net of fees.

Australia Ratings’ analyst Daniel Liptak said “The Strong investment rating reflects the investment team’s solid experience.” Mr Liptak continued, “Performance history is relatively short and at this stage there is relatively low FUM-based revenue. While this would usually be highly concerning, that is not the case in this instance given the involvement and commitment of the Karara research and investment team members.”

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.

DAINTREE CORE INCOME TRUST ASSIGNED A 'STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS
Saturday, January 20, 2018


 

Melbourne, 20 January 2018 – Australia Ratings has assigned a ‘STRONG’ investment rating to Daintree Core Income Trust (“the Trust””).

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.

Daintree Core Income Trust is managed by Daintree Capital Management. The Trust invests in a diversified portfolio of fixed income securities and cash to provide returns that exceeds the RBA cash rate by 1.5% - 2% p.a. after fees and usual expenses, over a rolling 12-month period. The Trust had $20.85 million in funds under management as at 31 December 2017.

Australia Ratings’ analyst Daniel Liptak said “The Strong investment rating reflects the investment team’s and portfolio managers’ deep experience.” Mr Liptak adds “we believe that investors will benefit from the strength of experience within the team, the flexibility of the investment process and ability to find global opportunities.”

Australia Ratings has also assigned its Product Complexity Indicator of ‘YELLOW’ indicating the fund as a Complex financial product. Monies invested in the Fund are pooled and used to purchase eligible assets on behalf of all investors in the Fund. The Manager is able to use derivatives (unleveraged) to move portfolio to reflect changes to global market conditions. The Fund will make a distribution to investors at the end of each month based on the distributable income of the Fund.

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.


 

LA TROBE FINANCIAL ASSET MANAGEMENT LTD’S ‘VERY STRONG’ OPERATIONAL CAPABILITY RANKING AFFIRMED
Friday, January 19, 2018


Melbourne, 19 January 2018 – Australia Ratings has affirmed La Trobe Financial Asset Management’s (LFAM’s) ‘Very Strong’ operational capability assessment (OCA).

LFAM’s ‘Very Strong’ ranking reflects its sound governance, risk management and compliance frameworks, and its experienced and focussed staff. The affirmation also points to LFAM’s prudent management to protect investor capital and interest, and the continued solid support from its parent and related entities within the La Trobe Financial Group including the Blackstone Group, following its recent acquisition of an 80% in La Trobe Financial.

Australia Ratings analyst, Natasha Hall said “the affirmation is underpinned by LFAM’s continued focus to prudently manage the Fund and foster its growth and performance to current levels, whilst preserving investor capital. Whilst arrears on loans remains a key risk, LFAM’s policy and practice of managing asset quality and performance has led to arrear levels that are comparable to industry performance”.

Ms Hall added “global company Blackstone Group’s recent acquisition of an 80% stake in La Trobe Financial Group adds further support to the Fund’s ‘Very Strong’ ranking”.

LFAM is the Responsible Entity for The La Trobe Australian Credit Fund; is wholly owned by La Trobe Financial Pty Limited and forms part of the La Trobe Financial Group of companies. The La Trobe Financial Group’s key business as a credit specialist is to originate mortgages and offer investors (institutional and retail) an opportunity to invest in mortgages and other credit assets, including mortgage-backed securities. In December 2017 the US$400 billion Blackstone Group acquired a majority interest in the La Trobe Financial Group.

Australia Ratings’ assessment of ‘Very Strong’ reflects the very strong capacity of an operating party to perform its operational role and assist the issuer or fund to meet financial obligations in a timely manner.

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

Find out more about Australia Ratings’ Operational Capability Assessments by visiting www.australiaratings.com/analytical-services

For more information contact:

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

Natasha Hall, Analyst
natasha_hall@australiaratings.com
03 8080 6684

About Australia Ratings

Australia Ratings is Australia’s local credit rating agency with over 60 years’ 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. 

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.

What an Australia Ratings Operational Capability Assessment (OCA) means

An Operational Capability Assessment is Australia Ratings’ opinion on anoperating party’s capacity in effectively managing the operational risks associated with a pool of financial assets. It focuses on the operating party’s (an operating entity, special-purpose vehicle, or asset) ability to perform its role adequately and limit exposure to loss arising from operational risk.

Find out more about Operational Capability Assessment - visit www.australiaratings.com/analytical-services

 

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.


 

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