Sydney, 23 November 2022 – Foresight Analystics Rates the Sandhurst Strategic Income Fund (SSIF) as SUPERIOR
Foresight Analytics has recently completed a rating assessment of the Sandhurst Strategic Income Fund (SSIF). The Fund has been assigned a SUPERIOR rating and a Foresight Product Complexity Indicator of RELATIVELY SIMPLE. The Sandhurst Strategic Income Fund (SSIF or “the Fund”) is managed by Sandhurst Trustees Ltd. (“Sandhurst”), a fully owned subsidiary of Bendigo and Adelaide Bank. Sandhurst Trustees Ltd. is additionally the Responsible Entity, Custodian, and Administrator of the Fund.
An investment rating of SUPERIOR has been assigned to the Sandhurst Strategic Income Fund, indicating our highest confidence that it can deliver a risk-adjusted return in line with its investment objectives. The Investment Manager is supported by Bendigo and Adelaide Bank and employs a well-defined and rigorous process. Designation as a RELATIVELY SIMPLE PRODUCT indicates that the Investment Manager will seek to outperform their chosen mainstream market sector. The strategies used are well documented and do not include the use of leverage or derivatives for trading purposes. While this fund is expected to move closely in line with mainstream markets, there may be periods where it outperforms or underperforms the benchmark index.
The Sandhurst Strategic Income Fund seeks to provide an enhanced cash investment that targets a return above the benchmark − _the Bloomberg AusBond Bank Bill Index − _over any 2-year period. The Fund invests primarily in Australian-dollar-denominated cash, money market, and asset-backed securities. The portfolio is actively managed to minimise capital loss and to provide consistent income over time.
The Fund provides quarterly income and is available directly or through an investment platform. Since its inception, the Fund has achieved its objective, providing returns of 0.68% p.a. over the benchmark while maintaining high capital stability and liquidity levels.
Foresight Analytics’ Analyst, Adam Taxakis, says “The investment management team is experienced, and their processes are robust.” He added, “the investment approach is conservative, technical and highly analytical.”
To access the PDF of this press release, click here.
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 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.
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.