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SQM Research Ratings Update - Tuesday April 26, 2016
Property Valuations
Research Reports
Discounted/Distressed Properties
Funds Research
Ratings Table

To see the entire table of SQM Research's fund ratings, click HERE

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SQM Ratings Update


SQM Research today released two rating reports as part of its 2015 equities review. 

The Capital Group New Perspective strategy is a global stock portfolio that focuses on earnings and sales growth, global trade patterns and secular trends without any geographical constraints. The Fund specifically targets blue-chip companies with significant assets or revenue generated from outside their home country. The underlying premise is that such firms can potentially develop into leading multinationals. Those that are already multinationals must display ability extend their growth from areas of potential in the global marketplace outside of home base. The stock selection approach for the New Perspective Strategy is driven by pure fundamental, bottom-up research.

The Fund has achieved a rating of 4½ (4.50) stars, as described below:
Star Rating                    4½ stars
Description                   Outstanding
Definition                       Highly suitable for                                                                                       inclusion on all APLs
Investment Grading     High Investment Grade Rating

The CFM Institutional Systematic Diversified Trust (“the Fund”) targets long-term capital appreciation through a return profile that strives to be uncorrelated with traditional asset classes. The Fund uses sophisticated quantitative methods to invest equal weights in three underlying multi-strategy portfolios: trend following, equity market neutral, and risk premia. The investment process seeks to deliver controlled volatility and attractive risk-adjusted returns, more specifically: a volatility target of 6% p.a. and a Sharpe ratio exceeding 0.80 over a multi-year horizon.
The Fund’s underlying investment philosophy is that while capital markets are mostly efficient, certain anomalies exist that are statistically persistent and can be exploited by using leading edge quantitative technology and implementation expertise.

The Fund has achieved a rating of 4¼ (4.25) stars , as described below:
Star Rating                 4¼ stars
Description                 Superior
Definition                    Suitable for inclusion on                                                                            most APLs
Investment Grading  High Investment Grade                                                                              Rating

To access ratings reports, please click HERE.
About SQM Research
SQM Research Pty Ltd is an independent investment ratings and forecasting research house covering all asset classes. SQM Research also supplies residential property data and property related reports and guidance to financial institutions, property developers and real estate investors.
For more information please visit

Research Methodology

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.

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