NEWS


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.

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.