Financial Services Guide
Financial Services Guide
AUSTRALIA RATINGS ANALYTICS PTY LTD
ABN 95 616 254 294
What is the purpose of this Financial Services Guide?
This Financial Services Guide (FSG) provides you with information about Australia Ratings Analytics Pty Ltd (Australia Ratings Analytics) to help you decide whether to use the services it offers.
- the services offered by Australia Ratings Analytics;
- how instructions may be provided to Australia Ratings Analytics;
- how Australia Ratings Analytics is remunerated; and
- the details of Australia Ratings' Analytics internal and external complaints handling procedures and how you can access them.
Australia Ratings Analytics acts for itself and has authorised the distribution of this FSG to you.
Who is Australia Ratings Analytics?
Australia Ratings AnalyticsPty Ltd (ABN 95 616 254 294) is a newly established specialised research house. It provides investment ratings on managed
funds and other investments services to fund managers and investment product sponsors. It also provides services to individual investors, self-managed
superannuation funds, financial planners and others who require its services to evaluate investment risks for various financial products (Services).
The value proposition of Australia Ratings Analytics is to provide understandable, timely and accessible service to assist professional investors gauge investment risk and complexity of products sold in the Australian investment market.
Australia Ratings Analytics’ Australian Financial Services (AFS) Licence number is 494552. Australia Ratings Analytics acts for itself when providing the services under the AFS licence.
What services can Australia Ratings Analytics provide?
Under its AFS Licence, Australia Ratings Analytics may only carry on a financial services business to provide general advice by issuing investment
ratings and research reports to retail and wholesale clients.
It intends to provide investment rating services in respect of the following products and entities:
- Australian equity funds;
- International equity funds;
- Credit and fixed income funds;
- Property and real estate investment trusts;
- Exchange traded funds (ETFs);
- Listed investment companies (LICs);
- alternative investments including hedge funds; and
- Structured notes.
Australia Ratings Analytics reviews managed funds and investment products requested either by fund managers or financial planners.
Australia Ratings Analytics undertakes research on fund managers that have demonstrated experience in an asset class and are expected to deliver
performance at least consistent with market returns and the stated investment objective of the fund or product.
Investment ratings and product complexity indicators are assigned by the Australia Ratings Analytics investment committee according to the published
methodology disclosed on www.australiaratings.com website.
Australia Ratings Analytics has researched funds since July 2017, Ratings of managed funds assigned by Australia Ratings will range from Superior
to Poor on its rating scale. It also expects that product complexity indicators will vary across the spectrum from simple to very complex products.
What are Investment Ratings and Product Complexity Indicators?
An investment rating reflects Australia Ratings Analytics’ current opinion of a fund’s or investment’s ability to achieve its stated investment
objectives in the medium term. The rating expresses a view on the expected consistency of the fund’s or investment’s performance within the
peer/style groups and the ability of the manager to produce superior performance amongst its peers in the medium term. The rating of the fund
or investment is intended to give an investor a general guide as to the appropriateness of an investment.
The objective of an investment rating from Australia Ratings Analytics is to identify funds and investment opportunities that are among “best in
class” on a forward-looking basis.
The product complexity indicator is a colour coded indicator that is designed to differentiate investment products which may have similar
investment objectives. It may help to explain complexity in the investment's features such as the use of leverage, derivatives or non-standard
indices that could create unanticipated variability or change in the investment's returns.
Details and explanation of the investment rating scale and the product complexity indicators can be found on our website.
A dedicated website, www.australiaratings.com, provides:
- an explanation of investment rating symbology;
- disclosure of investment rating methodologies;
- the listing of current investments ratings;
- timely distribution of research reports; and
- disclosure of up to date information relevant to the product.
Australia Ratings Analytics bases its research on information provided by the fund manager or product sponsor or obtained from sources considered
reliable. Australia Ratings Analytics does not perform an audit or conduct any form of due diligence in connection with any investment rating
and may rely upon unaudited information.
Investors should make their own inquiries. Information obtained subsequent to the investment rating being assigned may cause the rating to be changed
or withdrawn at any time. Investors should refer to our website for the most recent rating report.
Will you provide me with advice which is suitable to my needs and financial circumstances?
The provision of the investment rating services will entail the provision of general advice only. That is, the issuing of an investment rating
will not take into account a client’s personal circumstances, financial situation or needs.
Before deciding whether to invest in a fund or a financial product rated by Australia Ratings Analytics, you must assess whether the information or general advice is appropriate to your particular needs, objectives and financial circumstances. If you would like assistance with this, you should consult an appropriately authorised financial advisor or broker before making any investment decision.
How do I give information to Australia Ratings Analytics?
You can give us information by telephone, post or email, using the details provided in this Guide. Where required, we may request you to provide
us with your personal information to enable us to identify you and to provide our services to you.
How will I pay for the Services?
Australia Ratings will post current investment ratings and rating reports to its website. There is no charge to access the site or this information.
Individuals may subscribe to Australia Ratings Analytics’ research service which requires an annual subscription fee in order to receive research
How does Australia Ratings Analytics get paid?
Australia Ratings Analytics generates revenue from engagement by fund managers and product sponsors to have managed investment schemes rated. A
rating fee plus incidentals will be charged for a rating and a surveillance fee will be charged on each anniversary of the initial rating engagement.
The fees generated may ultimately benefit the employees, directors or other associates of Australia Ratings Analytics. The remuneration of
Australia Ratings Analytics’ personnel is not related to the performance of any rated funds or investment products.
What fee does the person who referred me receive?
We do not pay any fee or commission to any person who refers you to use our Services.
Disclosure of Interest
Australia Ratings Analytics does not have any relationships or associations which might reasonably be expected to be capable of influencing the
way we provide our Services to you.
Australia Ratings Analytics is covered by a professional indemnity insurance in place that complies with section 912B of the Corporations Act and
ASIC Regulatory Guide 126.
Who can I complain to if I have a complaint about the Services provided to me?
If you have a complaint about the Services provided to you, you should take the following steps:
- Contact us and tell us about your complaint.
- Alternatively, you can put your complaint in writing and forward it to:
The Complaints Manager
Australia Ratings Analytics Pty Ltd
Level 2, 420 Collins Street
Melbourne Victoria 3000
- We will endeavour to investigate and resolve your complaint and communicate our decision to you within 45 days. If you still do not get a satisfactory outcome, or if we fail to resolve your complaint within 45 days, you may be able to lodge a complaint with the Financial Ombudsman Service (FOS). You can write to FOS at Financial Ombudsman Service Limited, GPO Box 3, Melbourne VIC 3001 or call them on 1800 367 287 or visit www.fos.org.au.
When using the website of Australia Ratings Analytics or any of our Services, you may be providing us with your personal information. During the course of your relationship with us, we will also gather information about products and services provided to you.
Your personal information will be treated strictly in accordance with National Privacy Principles in the Australian Privacy Act. At any time, upon request, you may gain access to the information Australia Ratings holds about you in accordance with the National Privacy Principles.
We have requested the information to manage and administer the Services provided to you and to keep you updated whilst you are a user of our Services and possibly other activities of Australia Ratings Analytics.
We may also be required to provide your personal information to the Australian Securities & Investments Commission, AUSTRAC, ATO and other regulatory and government bodies from time to time.
We may also disclose your personal information to:
- our agents, employees and representatives;
- financial institutions and other similar organisations in connection with its corporate activities or that are nominated by you;
- external service providers and professional advisers that provide services to us;
- any organisation which you request us to or any persons acting on your behalf, including your financial adviser, broker, solicitor or accountant.
Australia Ratings Analytics takes all reasonable steps to protect your personal information from misuse, loss, unauthorised access, modification or disclosure.
Date Issued: 1 February 2018
Australia Ratings Analytics Pty Ltd (ABN 95 616 254 294)
AFS License number: 494552.
Level 2, 420 Collins Street
MELBOURNE VIC 3000
Tel: (03) 8080 6684