Press Release – Foresight Analytics Assigns VERY STRONG Rating to the Rixon Income Fund
Sydney, 14th October 2025
Foresight Analytics & Ratings has recently completed ratings assessment of the Rixon Income Fund. The fund has been assigned a VERY STRONG investment rating, reflecting a very strong level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives over the relevant investment horizon.
The Foresight Product Complexity Indicator (PCI), which considers the complexity of an investment product based on 10 risk factors, was assigned as COMPLEX for the Rixon Income Fund. This reflects a diversified lending approach with multiple underlying wholesale vehicles and variety of parameters that relate to each Special Purpose Vehicle (‘SPV’). It also reflects the broadness of SME lending mandates (direct bilateral lending, wholesale peer-to-peer lending) that requires a specialist credit manager to manage the pool of assets for the fund.
The Rixon Income Fund was launched in November 2022 and is managed by Sydney-based Rixon Capital Pty. Ltd. The Fund provides asset-backed, senior secured lending to Australian SMEs seeking non-dilutionary debt funding. It operates as a direct lender, targeting the underbanked $2M-$20M SME lending segment. The Fund lends on a first-ranking senior secured basis, with all loans requiring real asset security. The firm takes a thorough underwriting and valuation process including where borrowers are required to service their interest expense monthly in cash.
In line with its focus on capital preservation and delivering investors an attractive monthly cash yield, Rixon aims to generate a return in excess of its performance benchmark – the RBA Cash Rate + 6.0% p.a. Since its inception, the Fund has recorded an annualised non-compounded return of 11.82 % p.a. with monthly net cash returns ranging from 0.92% to 1.00%.
The Rixon Income Fund’s wholesale peer-to-peer (‘P2P’) lending strategy that is secured against receivables (currently 50% exposure) operates within Australia’s marketplace lending sector. The Fund deploys capital through established P2P platforms that match businesses seeking immediate liquidity from their outstanding invoices with institutional investors in secure, transparent environments. This strategy enables the Fund to access diversified SME lending opportunities while maintaining its disciplined focus on asset-backed transactions.
Foresight analyst Divya Balasubramanian commented on the Rixon Income Fund, saying that ‘The Fund delivers bespoke credit solutions to Australian SMEs. Rixon’s strategy is focused on capital preservation – an outcome of its strong underwriting discipline, and delivering consistent, attractive monthly cash yield. While the track record of this strategy is less than a full economic cycle (7 years), the firm has delivered on its target since inception.’
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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
Divya Balasubramanian
Senior Manager – Research & Strategy
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Email: divya@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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