Press Release

Foresight Analytics has completed a ratings assessment of Coolabah Capital Investments (Retail) Pty Limited’s fund, the Coolabah Active Composite Bond Fund (Hedge Fund). The Fund has been assigned a ‘SUPERIOR’ rating, and a Foresight Complexity Indicator of ‘MORE COMPLEX’. The Fund is classified as a Hedge Fund according to SIC guidelines.

A SUPERIOR Foresight Rating denotes the highest level of confidence that the Fund can deliver a risk-adjusted return in line with the Fund’s investment objective. A ‘MORE COMPLEX’ Foresight Indicator reflects the view that the Investment Manager will employ leverage, short selling, and extensive use of derivatives.

The Fund strategy is very active and opportunistic. It is designed to create alpha by exploiting idiosyncratic bond mispricing rather than relying on interest rate beta or duration calls, exposure to credit or illiquidity beta. Typically, the Fund has an overall credit risk level of Investment Grade, a weighted average portfolio MSCI ESG rating of ‘AA’ and high levels of liquidity. The strategy is duration neutral and results in low tracking error to the underlying benchmark.

The Fund is managed by Coolabah Capital Investments (Retail) Pty Limited (CCIR) – previously known as Smarter Money Investments Pty Ltd. CCIR are a fixed-interest specialty manager with offices in Melbourne, Sydney, and London. CCIR was established to offer investors fixed income products characterised by a low volatility risk profile; their investment philosophy and the dominant strategy employed through the Coolabah Active Composite Bond Fund support this intention through a research-driven approach in selecting and managing securities that looks to exploit bond valuation mispricing.

Foresight Analytics’ analyst, Maggie Callinan, says “the superior rating assigned to the Funds reflects Foresight’s confidence in CCIR’s investment strategy that is backed by disciplined process, deep resources and experienced team”. She added, “This Fund offers retail investors an active, highly liquid fixed income strategy that has demonstrated the delivery of healthy capital gains in addition to underlying interest income”.

The research report is available from Foresight Adviser Knowledge Centre

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 services 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 includes Diligence Services (ESG Diligence, Risk Diligence), Data Analytics and Portfolio Allocation Advice. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.

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