Melbourne, 4 November 2016 – Australia Ratings has affirmed its credit rating of ‘A-’ to the units issued by the Smarter Money Higher Income Fund. The ‘A-’ credit rating represents a high degree of creditworthiness on the rating scale used by Australia Ratings to assess a managed fund’s credit profile. The rating primarily reflects the credit quality of the Fund’s investments and the experience and skill of the investment manager, Smarter Money Investments.
Australia Ratings analyst Renee Corcoran said, “Investors in the Fund have low exposure to volatility arising from interest rates changes through a portfolio of fixed income securities with a high degree of credit quality.” Ms. Corcoran added, “The Fund’s credit risk exposure is actively managed with the majority of its assets in investment grade securities such as Australian denominated cash or cash equivalents and Australian denominated floating rate bonds, including RMBS, ABS and hybrid securities.”
The Smarter Money Higher Fund was launched in September 2014 and aims to generate a return of 1.5% to 3.0% p.a. above the RBA official cash rate. The Fund invests in Australian dollar fixed income securities that carry minimal interest rate risk such as cash and floating-rate securities. During the past year to 30 September 2016, the Fund’s return was 4.1% after all fund fees to investors.
While the rating primarily reflects the credit quality of the assets of the Fund, Australia Ratings noted the stability of the investment team and the demonstrated track record of exceeding the investment objective of the Fund.
The units provide investors with a periodic distribution of income and a return of principal via a redemption request. Australia Ratings has also affirmed its Product Complexity Indicator of ‘BLUE” to the Fund’s units to indicate that an investment in the units represents a relatively straightforward type of fixed interest investment.
A full rating report is available from www.australiaratings.com.
For more information contact:
Chris Dalton, Managing Director
03 8080 6684
Renee Corcoran, Director
03 8080 6684