Press Release – Foresight Analytics & Ratings Reassigns a ‘Superior’ Rating to Remara Credit Income Fund
Sydney, 3rd June 2025
Foresight Analytics & Ratings has recently completed a ratings assessment of Remara Credit Income Fund. The Analyst Rating for the strategy was retained as SUPERIOR.The Foresight Complexity Indicator is maintained as COMPLEX.
A SUPERIOR rating indicates the highest level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives, given the current growth of SME and real estate lending in Australia.The investment manager’s support for this strategy is experienced and well-resourced.
Designation as a COMPLEX product primarily relates to the use of multiple warehouse structures and lending verticals.This complexity provides various risk-return attractions for investors.The vertical integration of the origination process adds an additional level of complexity but also serves to mitigate margin compression risk for investors over the foreseeable future.
The Remara Credit Income Fund is an open-ended, unlisted fund that invests in a diversified pool of loans to consumers and small-to-medium businesses (SMEs) in Australia. It is managed by Remara Investment Management Pty. Ltd.,a part of the Remara Group.
The fund targets stable monthly income with a high degree of capital preservation. It is targeting a return of 6% (net of fees) above the RBA Cash Rate, currently equating to a target return of 9.85% per annum (net of management fees).The Manager has materially exceeded this target since its inception.
It provides exposure to the SME and real estate finance sectors. Unique in its sector, the Remara Group (‘Remara’) pursues a vertical integration model with respect to loan origination parties.
Remara has ownership stakes in 5 originators, Dynamoney Ltd. (SME lending), Soda Capital Pty. Ltd. (floorplan finance), First Nations Finance Pty. Ltd. (middle market lending), Marble Money Pty. Ltd. (consumer credit) and Remara Credit Pty. Ltd. (real estate finance). An investment in the fund is implemented by way of securitised warehouse notes. Investor money is allocated to particular tranche notes in particular warehouses. Across all warehouses, investor capital is supported by a 5% first-loss equity buffer in addition to the retention of the net interest margin earned by the 5 originators. Given that Remara has material interests in the originators, this structure creates an especially strong alignment of interest between the Manager and investors in the fund.
Rob da Silva, the Head of Research at Foresight Analytics, says, “The fund is structurally complex, but at the heart of this design lie elements that, in our view, provide various risk-return attractions for investors. Vertically integrating loan origination helps the fund ‘future-proof’ its investors against potential margin compression in the Australian warehouse SME lending sector, where the availability of strong originators is finite”.
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About Foresight Analytics’ Investment Due Diligence Rating (IDD Rating)
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.
Foresight Analytics Foresight Complexity Indicator
A Foresight Complexity Indicator (FCI) 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.
Media Contact – Foresight Analytics
Rob da Silva
Head of Research
Suite 208, 33 Lexington Drive, Bella Vista, 2153, NSW
Telephone: 0468368239 / 02 8883 1369
Email: rob@foresight-analytics.com
Web: www.foresight-analytics.com
About Foresight Analytics
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.
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