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


Maggie Callinan, Director 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

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.



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