Melbourne, 15 May 2017– Australia Ratings has upgraded its credit rating of ‘A’ to ‘A+’ to Sandhurst Strategic Income Fund’s Class A and Class B units (“the Fund”).
The one notch upgrade reflects the strong level of creditworthiness of the Fund; the historical performance of the Fund; and the solid performance of the investment management team in managing the Fund.
Australia Ratings analyst Renee Corcoran said “Investors in the Fund benefit from a high quality diversified portfolio of term deposits and fixed income securities with low volatility risk in asset value changes due to changes in interest rates. Over the last 12 months, greater emphasis has been placed on shorter term, more liquid securities.”
Ms Corcoran added “The consistent strengthening of the underlying credit quality of the portfolio has been a main driver for the Fund’s rating upgrade. The portfolio management team has also continued to actively and conservatively manage the portfolio.”
A rating of ‘A+’ represents that the Fund has a strong degree of protection against loss from credit risk on the rating scale used by Australia Ratings for fixed income funds. The rating primarily reflects the credit quality of the Fund’s investments and the experience and skill of Sandhurst Trustees Limited’s Fund Management team.
Sandhurst Strategic Income Fund was launched in July 2011 and is part of the Bendigo Wealth division and a wholly-owned subsidiary of Bendigo and Adelaide Bank Group.
The units provide investors with a quarterly distribution of income and a return of principal via a redemption request. Australia Ratings has also confirmed its Product Complexity Indicator of ‘BLUE” to the Fund’s units to indicate that an investment in the units represents a relatively simple type of fixed interest investment. The BLUE indicator highlights that in certain exceptional circumstances the Fund may defer redemption requests to manage its liquidity.
A full rating report is available from www.australiaratings.com/rating-reports.
For more information contact:
Renee Corcoran, Director, Australia Ratings
Phone: 03 8080 6684
About Australia Ratings
Australia Ratings is Australia’s local credit rating agency with over 55 years of experience in assessing and rating credit risk. Australia Ratings was formed in 2010 following regulatory reforms to the operation of credit rating agencies in Australia. Australia Ratings Pty Limited holds Australia Financial Services License No. 346138.
Rating opinions of Australia Ratings are determined by its analytical team in accordance with its rating methodology. The Board of Australia Ratings, whose members include Jarrod Brown, Chris Dalton and Mike Dontschuk, oversee the application of Australia Ratings rating methodology and the integrity of the rating process.