A Product Complexity Indicator of ‘Yellow’ has also been assigned to designate the view that the Fund is a complex financial product, indicating that the underlying assets require specialist investment skills to acquire and to monitor. This Trust is available to wholesale investors only.

A rating of Superior is the highest rating on the investment rating scale used by Australia Ratings. A Superior investment rating indicates the highest level of confidence that the Trust can deliver a risk-adjusted return in line with its investment objectives.

The Australian Eagle Trust is managed by Australian Eagle Asset Management P/L, a Sydney-based investment management business, whose structure enables equity participation for team members. The investment philosophy, investment strategy, investment process, and risk management elements of the company’s activities are well established.

Since its inception in 2016 (launched as a retail fund in April 2019), the Trust has focused on investment in Australian equity using a combination of long-short, high alpha: growth, bottom-up, medium capitalisation, and high-conviction investment styles.

Australia Ratings’ analyst, Maggie Callinan, says “the rating reflects the experience and credentials of Australian Eagle’s stable investment team, and confidence in their ability to effectively implement a robust and disciplined investment process”. She added “the rating also indicates the confidence of Australia Ratings that the Trust will continue to deliver a strong risk-adjusted return”. Sean Sequeira, Chief Investment Officer of Australian Eagle, commented “we appreciate the confidence Australia Ratings have shown in our investment team and process, and we look forward to continuing to implement it for the benefit of our clients in the future.”

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A Product Complexity Indicator of ‘YELLOW’ has also been assigned to designate the view that the Fund is a COMPLEX financial product, indicating that the underlying assets require specialist investment skills to acquire and to monitor. ‘In addition, investment in this Fund is effectively Illiquid and investors should have a good understanding of the term and characteristics of the distributions from this type of fund. This Fund is available to wholesale investors only.

A rating of STRONG indicates a strong level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives. The experience of the Fund’s management team supports this rating.

The Labassa Capital Australian Real Estate Credit Fund (the Fund) is managed by Labassa Capital Pty Ltd, a debt and equity investor focused on Australian real estate. The Fund is an open-ended Australian unit trust, which is expected to be fully invested in secured loans in the real estate financing sector; looking primarily for opportunities in major capital cities and east coast cities of Australia such as Newcastle, Wollongong, Gold Coast, and Geelong. The Fund is expected to invest in construction loans, land bank loans, and investment loans.

Though a new fund, with inception in August/September 2019, the Fund has produced relatively consistent returns above its target, with the FUM having grown steadily from $5m in September 2019 to approximately $21m in January 2020. In addition, there are further loans amounting to $102m contracted, awaiting satisfaction of conditions.

Australia Ratings’ analyst, Maggie Callinan, says “the rating reflects the experience of the Fund’s management team”. She added, “all key decision makers have personal investments in the Fund, which adds to the level of confidence in the investment process”.

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The Trilogy Monthly Income Trust has been also assigned a Product Complexity Indicator of YELLOW to designate the view that the Fund is a COMPLEX financial product. This is an indication that the underlying assets require specialist investment skills to acquire and to monitor. In addition, investment in this Fund requires careful management of investor redemption requests as the core assets have limited liquidity. Investors should have a good understanding of the term and characteristics of the distributions from this type of fund.

The Trilogy Monthly Income Trust is a pooled mortgage trust which was established in February 2007. The underlying investments are loans secured by first mortgages over property development, construction, and refinancing of completed stock. Since inception in 2007, the Trilogy Monthly Income Fund has paid a distribution every month, has honoured all withdrawal requests, and has maintained a stable unit price of $1.00. Five year performance to 30 September 2019, was 7.88% p.a net of fees.

Trilogy Enhanced Cash has been assigned a Product Complexity Indicator of BLUE to designate the view that the Fund is a RELATIVELY SIMPLE financial product. This is an indication that, while the fund is expected to move fairly closely in line with mainstream markets, there may be periods where it outperforms or underperforms.

Trilogy Enhanced Cash is an open-ended registered investment scheme, which was established in November 2016. The underlying investments are targeted at 70% for cash and cash-style products, including underlying enhanced cash funds and mandates, and 30% investment in the Trilogy Monthly Income Trust. Trilogy aims to hold the unit price of Trilogy Enhanced cash at $1.00, by calculating, allocating and distributing interest and other income at the end of each month. Performance since inception to September 2019 has been 4.13% p.a net of fees.

Trilogy Funds Management Limited had its origins in 1998 when a Brisbane law firm, of which Philip Ryan was a partner, commenced an investment company managing mortgages and property assets. This company was acquired in 2004 by interests associated with the present management when Rodger Bacon and John Barry left their positions at Challenger Financial, where they were Executive Directors of either Challenger or its subsidiaries.

Australia Ratings’ analyst, Maggie Callinan, said “the rating reflects the experience and track record of Trilogy Funds Management and their expertise in managing CRE lending.” She added “the rating also indicates the high level of confidence Australia Ratings has that the Fund will continue to deliver a strong risk-adjusted return”.

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