SQM Research Sector Review 2015
- With Louis Christopher
SQM Research releases ratings on four Global Property Securities funds and four Infrastructure Securities funds as part of its annual sector review.
As part of its annual global infrastructure and property securities review, SQM Research has today released the individual ratings on four Global Property funds and four Infrastructure Securities funds.
Seven out of the eight funds reviewed were previously rated by SQM Research. As the table below demonstrates, one fund was upgraded, one was downgraded while the remaining six funds were unchanged from the last review.
SQM Research has advised, Fund managers across our sectors are clearly operating on the theory that we are coming closer to the point where global bond yields are going to rise. Subsequently many funds across the global property securities and infrastructure space have become defensively positioned; avoiding securities which they believe will underperform in such an event. And increasing their cash holdings.
This means for now that many managers are likely to underperform against their respective benchmarks in the short to medium term or until such time that there is a large market correction.
In other news SQM Research has been provisionally accepted as an approved ratings researcher for the Macquarie Wrap platform covering its existing asset classes.
It’s an exciting time for SQM Research, more and more advisor groups are accepting our independent research and property data and appear to be accepting our research from the new asset classes covered. Acceptance from Macquarie of our research is a testament to our diligence in these rating reports.
A full sector report will be released on global property and infrastructure by July.
Our next sector ratings release will be within two weeks; being our inaugural Fixed income review. Ratings have already being progressively released on this sector.
To read all reports included in our 2015 Sector Review, click here...
For further information:
Tel: (02) 9220 4666
Rob da Silva
Head of Research
Tel: (02) 9220 4606
Senior Investment Analyst
Tel: (02) 9220 4601
Tel: (02) 9220 4602
In general, the assessment approach adopted by SQM Research incorporates a combination of qualitative and quantitative research techniques to assess property investment products,
Information generated is passed through the SQM Research assessment model at the completion of the assessment process. The assessment model generates a product score, which correlates to a specific star rating (out of a maximum of five stars). Each star rating covers a scoring range, allowing products to be ranked within quarter star increments.
Following are descriptions for each of the star ratings, which have been developed as a guide for dealer group research teams and investment committees:
4.5 stars and above – Outstanding. Highly suitable for inclusion on APLs.
4 stars to 4.25 stars – Superior. Suitable for inclusion on most APLs.
3.75 stars – Favourable. Consider for APL inclusion.
3.5 stars – Acceptable. Consider for APL inclusion, subject to advice restrictions.
3.25 stars – Caution required. Not suitable for most APLs.
3 stars – Strong caution required. Not suitable for most APLs.
Below 3 stars – Avoid or redeem. Unapproved.
Hold – The rating is currently suspended until SQM Research receives further information. A rating is typically put on hold for a period of 2 days to 4 weeks.
Withdrawn – The rating is no longer applicable. Significant issues have arisen, and investors should avoid or redeem units in the fund.
About SQM Research
SQM Research Pty Ltd is an independent property advisory, ratings and forecasting research house which specialises in providing accurate property related advice, research and data to financial institutions, property developers and real estate investors.
For more information please visit www.sqmresearch.com.au