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SQM Research Ratings Update - Thursday 16th October 2014
Property Valuations
Research Reports
Discounted/Distressed Properties
Funds Research
Ratings Table

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

(Please note: In order to view individual ratings reports you must be subscribed to SQM Research Ratings research. To subscribe, click HERE)

SQM Research Media Release

SQM Research has today released its Domestic Property Securities Review
SQM Research has today released the individual ratings of the 11 funds participating in its Domestic Property Securities Funds Review. Eight of the participating funds received a rating of four stars or higher, demonstrating the high calibre of funds in this year’s Domestic Property Securities Sector Review.
All of the funds participating in the review had been previously rated by SQM Research. However, the Principal Property Securities Fund and the Folkestone Maxim A-REIT Securities Fund were last reviewed in August 2012. As demonstrated in the table below, four Funds were upgraded, one was downgraded and the remaining six Funds were unchanged from the last review.
The upgrades are representative of active managers delivering ongoing outperformance compared to benchmark and their unrated and screened peers.  

* last rated in August 2012

Louis Christopher, Managing Director of SQM Research stated, “Contrary to a recent report from another research house, we see positive things in the A-REIT market. Firstly, there are quite a few active managers who are consistently outperforming the local A-REIT index and second, the local A-REIT market is not as overvalued as what our competitors will have you believe.
“We still see opportunities for A-REITs over the next 12 months.  Those generalist research houses that put equities based analysts in charge of real estate research should be careful in putting forward uninformed opinions.”
For further information:
Managing Director
SQM Research
Tel: (02) 9220 4666
Aakriti Chona
Senior Investment Analyst
SQM Research
Tel: (02) 9220 4601
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
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 – Good. Consider for APL inclusion.
3.5 stars – Average. 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. Not suitable for APL inclusion.
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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