Sydney, 6th February 2023 – Foresight Analytics’ rates RMBL Mortgage Income Investment Scheme as ‘Very Strong’
Foresight Analytics has recently completed a rating assessment of the RMBL Mortgage Income Investments Scheme. The fund rating has been assigned as VERY STRONG, indicating a strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives. This rating primarily reflects the Scheme’s historical performance and the investment manager’s expertise.
The Foresight Product Complexity Indicator (PCI) for the RMBL Mortgage Income Investments Scheme is MORE COMPLEX. This primarily reflects the diversification risk of investing in individual loans and the illiquidity of the funds.
The RMBL Mortgage Income Investment Scheme is managed by RMBL Investments Limited (RMBL), which is also the Responsible Entity, Custodian and Administrator of the Scheme. It is a contributory mortgage trust that invests in specific loans (secured by first registered mortgages). It aims to return competitive interest rates (variable or fixed) for a fixed term. It is available to retail and wholesale investors and may include individuals, trusts, companies, super funds or other entities.
In 2000, RMBL established the RMBL Mortgage Income Investment Scheme in accordance with the Managed Investment Act. On 15 October 2002, RMBL was issued with an Australian Financial Services License allowing it to operate the Scheme in accordance with the consequential amendments (Financial Services Reform Act) made to the Corporations Act and Regulations, which came into full effect on 11 March 2004.
RMBL currently lends upwards of AU$80 million with a loan book exceeding AU$1.6 billion. RMBL has built a reputation for delivering excellent and friendly service, with investors directly benefiting from over 60 years of property experience. This arrangement provides investors with a wider skill base experienced in originating loans, assessing risk and providing investment management services for various real estate investment products.
Foresight Analytics’ analyst, Adam Taxakis, commented that “the review performed related specifically to the capability of the Investment Manager of the Scheme across all loans rather than any individual loan. Since its inception, the Scheme has consistently delivered such returns to its investors while maintaining minimal levels of defaults or arrears, across all loans as a whole.”
He further noted that “the investment manager’s investment process is robust, conservative, specialised, technical and highly analytical and benefits from its experienced management team.”
To access the PDF press release, click here.
About Foresight Analytics’ Investment Due Diligence (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 Product Complexity Indicator (PCI)
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.
Media Contact – Foresight Analytics
Adam Taxakis, Analyst
Suite 208, 33 Lexington Drive, Bella Vista, 2153, NSW
Telephone: 0435 610 293/ 02 8883 1369
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.
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 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.