Melbourne, 4 November 2016 – Australia Ratings has affirmed its credit rating of ‘A’ to the units issued by the Smarter Money Fund, formerly the Smarter Money Active Cash Fund, (the Fund). The ‘A’ credit rating represents a high degree of creditworthiness on the rating scale used by Australia Ratings to assess the credit profile of a managed fund. The rating primarily reflects the credit quality of the Fund’s investments as well as the experience and skill of the investment manager, Smarter Money Investments.
Australia Ratings analyst Renee Corcoran said “the Smarter Money Fund has continued to pursue its investment objective through actively managing a liquid portfolio of fixed income securities that have a high degree of credit quality.” Ms. Corcoran also noted “investors in the Fund have a low exposure to volatility arising from changes in interest rates and the credit risk of the portfolio is restricted to investment grade securities.”
Smarter Money Fund (formerly the Smarter Money Active Cash Fund) was launched in February 2012 and aims to generate a return of 1.0% to 2.0% above the cash rate by investing 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 3.8% 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