VERY STRONG indicates a very strong conviction that the management team can deliver a risk-adjusted return in line with its investment objectives.
Sydney, 22 March 2023 – Foresight Analytics & Ratings reaffirms Aura High Yield SME Fund as ‘VERY STRONG’
This press release was written solely by Foresight Analytics and published on 22nd March. The following is an excerpt. Read the full press release here.
Foresight Analytics & Ratings has recently completed its’ ratings assessment of the Aura High Yield SME (AHYSME) Fund. The Fund rating has been reaffirmed as VERY STRONG, indicating a very strong conviction that the management team can deliver a risk-adjusted return in line with its investment objectives at this stage of the growth of online lending in Australia.
A Foresight Product Complexity Indicator (PCI) for the AHYSME Fund has also been designated as COMPLEX, partly reflecting the inherent complexity of multiple underlying warehouse vehicles and the multiplicity of parameters that relate to each warehouse. It also partly reflects the multiplicity of SME lending verticals, with each vertical having different key performance parameters. However, this complexity provides several distinct benefits to investors, including significant portfolio diversification by loans, originators and economic sub-segment.
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The full research report is available on the Foresight 360 Digital platform. The platform can be accessed via www.foresight–analytics.com.
The objective of Foresight Analytics’ Investment Due Diligence Rating (IDD Rating) is to identify the best funds and opportunities for future investment. We assess the fund’s historical risk-adjusted performance – compared to its peers – to form a holistic view of the manager’s ability to deliver future returns. The IDD rating indicates the quality of the investment option within the context of a diversified portfolio and full investment cycle. Foresight’s analysts use a 5-point scale to determine how the fund will perform against a range of risk factors.
SUPERIOR indicates the highest level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is highly suitable for inclusion on APLs.
VERY STRONG indicates a very strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
STRONG indicates a strong likelihood that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
COMPETENT indicates the fund may deliver a risk-adjusted return in line with its relevant benchmark and that it may be suitable for APLs.
WEAK indicates the fund is unlikely to deliver a risk-adjusted return in line with its investment objective and that it is not suitable for most APLs.
A ‘Hold’ designation is applied to a fund’s rating if a material change impacts the fund manager, and we need to review the rating. A ‘Sell’ designation indicates the Foresight Investment Ratings Committee considers risk factors to be elevated enough that maintaining an investment in the fund as part of their diversified portfolio is questionable.
A Foresight Product Complexity Indicator (PCI) highlights the complexity of an investment product based on a range of indicators. These typically include its terms and conditions, performance-based fees, liquidity structure, financial leverage, use of derivatives, rare and niche asset class/opportunity set, currency exposure and the level of transparency offered for investors. Foresight believes these factors can disproportionately affect risk-adjusted return outcomes for investors even if a manager is very skilled. Investors can use FCI as a guide to portfolio position sizing within a diversified portfolio context.
Foresight Analytics, an independent Sydney-based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
Foresight’s fiduciary solutions include Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.
For more information on our capabilities, please visit our website at www.foresight-analytics.com and our social media platforms via LinkedIn, Facebook, or Twitter. For additional analyst insights, thematic research, and market commentaries, please visit our website at www.foresight-analytics.com and streaming channels YouTube and Podcast.
Important Information
This report is provided to accredited, qualified, institutional, wholesale and sophisticated investors for information purposes only by Aura Funds Management Pty Ltd (ABN 96 607 158 814, Authorised Representative No. 1233893 of Aura Capital Pty Ltd AFSL No. 366 230, ABN 48 143 700 887). Aura Funds Management Pty Ltd is the Trustee of all the Funds mentioned and a subsidiary of Aura Group Pty Ltd.
Any financial product advice given in this report is of a general nature only. The information has been provided without taking into account the investment objectives, financial situation or needs of any particular investor. Therefore, before acting on the information contained in this report you should seek professional advice and consider whether the information is appropriate in light of your objectives, financial situation and needs. Aura does not guarantee the performance of its funds, the repayment of any capital or any rate of return. Investing in any financial product is subject to investment risk including possible loss. Past performance is not a reliable indicator of future performance. Information in this report is based on the information provided to Aura by third parties that may not have been verified. Aura believes that the information is reliable but does not guarantee its accuracy or completeness. Aura is not able to give tax advice and accordingly investors should obtain independent advice from an accountant and/or lawyer before making any decision based on the tax treatment of its investors. You must read the Fund Fact Sheet or Information Memorandum and seek professional advice before making a decision to invest in any of the funds. View Privacy Policy here
'Very Strong' indicates a strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives.
The Aura High Yield SME Fund has maintained it’s “Very Strong – Complex Product” rating from Australia Ratings.
We are pleased to announce that the Aura High Yield SME Fund has received a Recommended rating from Atchison Consultants.