Ratings Update January 2016
About SQM Research SQM Research has released the ratings for five Alternative funds as part of its 2015 Alternatives Sector Review.
The five rated funds that are discussed in this report are:
The Capital Fund obtained a “Superior” 4.00-star. This rating reflects Capital Group’s status as one of the world’s largest fund managers and a pioneer in emerging markets investing. Adding to this was the extensive investment experience and stability present in its long-standing portfolio manager team, holding an average of 28 years of investment experience. The vast resources and large research staff were also contributing factors to the final rating.
The Invesco Fund achieved a “Superior” 4.25-stars rating. The rating is on the back of Invesco’s successful reputation as a large, well-resourced global fund manager. This is supplemented by its strong returns (over a modest lifespan to date) with moderation of the downside extremes. Further, its focus on medium-term investment ideas (two-three year time-frame) that are under-researched by the market allows for strong alpha-generating potential. Amidst these elements, the highly experienced, tight-knit team of global macro specialists operating the fund also influenced the 4.25-stars rating.
The Ironbark Fund was allocated a “Superior” 4.00-star rating. The rating reflects the Fund manager’s (K2 Advisors) long and successful history of alternatives investing, in a fund-of-funds format. Complementing this is a sophisticated quantitative process blended with qualitative assessments underlying the manager selection process. Additionally, the fund is supported by comprehensive Risk management and manager monitoring with a focus on mitigating downside risk. The attributes listed above, support the given rating.
Pengana Fund was designated a “Favourable” 4.00-stars rating. The rating reflects strong risk-adjusted historical returns over a 6.75-year lifespan, along with the portfolio manager demonstrating a long and successful history of event-driven investing in the Asian markets, drawing on experience gained both in the equity and credit markets.
The William Blair Fund was endorsed with a “Superior” 4.25-stars rating. The rating was influenced by the strong experience of the tightly knit portfolio management team, who have worked together for 15 years and are specialists in the area of Global macro Strategy. The utilisation of game theory to enhance its risk management processes and relative return-to-risk evaluation of markets was also a distinguishing factor in allocating the 4.25-stars rating.
- Capital Emerging Markets Total Opportunities Fund (Capital Fund)
- Invesco Wholesale Global Targeted Returns Fund (Invesco Fund)
- Ironbark Global Diversified Alternatives Fund (Ironbark Fund)
- Pengana Absolute Return Asia Pacific Fund (Pengana Fund)
- William Blair Dynamic Diversified Allocation Fund (William Blair Fund)
Please login to our Ratings Research Website and read our latest fund ratings HERE -
An Afternoon of Property
Every year, SQM Research holds an "An Afternoon of Property" - an event in which we collaborate some of the best Fund Managers in each sector within property including REITs, infrastructure, commercial property, mortgage trusts and of course, residential property, to examine scrutinize the current market as well as discussing what's in store for the future.
This enlightening afternoon is open to Financial Planners/Advisers, Fund Managers, Property Developers, Real Estate Agents and Professional Investors who wish to gain specific, up to date insight on a variety of property related sectors.
Louis Christopher will lead the industry experts to share their insights in the various sectors within property. This is a must attend event. Delegate fees have been kept at the 2014 rate of $150 per ticket (this includes the cocktail party) and Financial Planner fees are sponsored.
Don't miss out on our Guest Speaker line up:
This year the event will be held in the Heritage Ballroom, at the Westin Hotel, Sydney, on Wednesday the 16th of March 2016.
- Guest Economist - TBA
- Winston Sammut - Folkestone
- Marco Colantonio - Resolution
- Chris Andrews - La Trobe Financial
- Gerald Stack - Magellan
- Chris Smith - Australian Unity
To register for the event or book a table for your company, please click HERE.
There are opportunities for companies to sponsor SQM Research’s Afternoon of Property, which has allowed individual, unique exposure to this specific audience.
For further information on this event, or if you are a company interested in sponsoring this event, Please contact Natalie Keech via email - email@example.com or go to our Afternoon of Property website.
"This is probably your best opportunity to hear from the very best real estate Fund Managers in Australia. The format is going to be expressly a Q&A where I am going to ask the direct questions from the start. Importantly we are going to get an insight into the minds of these managers in terms of how they are going to handle what is looking like a particular challenging year on the markets. Of course we will finish the day with our housing outlook for 2016 followed by drinks. This is a half day event that in the past has received considerable CPD points and I believe that will be the case this year. It is going to be a fantastic venue in the Heritage Ballroom, at the Westin Hotel, Sydney. And of course, best of all, it is free for advisers and their clients. So please register and register soon for I think this one will be booked out shortly..."
Louis Christopher, Managing Director of 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 www.sqmresearch.com.au
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.