Press Release – Foresight Analytics & Ratings Reaffirms ‘STRONG’ Investment Rating for the Tanggram Investment Fund.

Sydney, 09th July 2024 

We are pleased to share our latest press release with you below.

Foresight Analytics & Ratings has recently completed its ratings assessment of the Tanggram Investment Fund. The Investment Rating for the strategy has been reconfirmed as STRONG while the Foresight Complexity Indicator has been graded as COMPLEX.

A STRONG investment rating indicates a strong conviction that the Fund can deliver risk-adjusted returns in line with its investment objectives. The Fund provides funding to select Australian private credit funds (the ‘underlying funds’) through a fund-of-fund structure. The Fund contains two investment options: Tanggram Spark (‘Spark’) and Tanggram Seed (‘Seed’). At the date of this report, there are four underlying funds – La Trobe Australian Credit Fund, Trilogy Monthly Income Fund, Aura High Yield SME Fund and IJ Premium Income Fund. Additionally, up to 10% of the portfolio can be allocated to cash. Moving forward, the Manager may add additional underlying investment strategies to further diversify the portfolio. The investment objective of the Fund is to provide stable income with a high degree of capital preservation.

Currently, the target returns are 6.05% for Seed and 5.2% for Seed. Investment into the Fund is predominantly through an automatic saving/investment application, developed in house by Tanggram. This product offering and its distribution angle is unique in the Australian managed fund landscape where the underlying investments are a portfolio of private debt investment vehicles. The overriding philosophy of Tanggram is downside protection of capital, stable yield that provides an effective platform for wealth accumulation.

In our view, the current composition of the portfolio is very well suited to achieve this objective. All four underlying funds have successfully delivered on target returns and have a track record of limited arrears, defaults and losses. Foresight Analytics and Ratings has separately rated the Trilogy and Aura funds as ‘Very Strong’.

Designation as a COMPLEX product predominantly relates to the illiquidity pf the underlying private debt vehicles. That said, we note that the Fund provides monthly liquidity, and this provision is broadly in line with the liquidity structure of the underlying funds.

Read our disclaimer here. To access to PDF of this press release click here, to access the full ratings report please register here.


Unlock Premium Insights:

Register for F360 Investment Research Platform today!


 

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 riskadjusted 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. 

Picture-1 Press Release | Foresight Analytics & Ratings Reaffirms ‘STRONG’ Investment Rating for the Tanggram Investment Fund.

 

Media Contact – Foresight Analytics

Jay Kumar 

Suite 208, 33 Lexington Drive, Bella Vista, 2153, NSW  

Telephone: 0408266713

Email: jay@foresight-analytics.com

Web: www.foresight-analytics.com

About Foresight Analytics 

Foresight Analytics, an independent Sydney- based firm, provides investment ratings, data analytics, assurance 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 into the analyses of economies, markets, themes, investments products and portfolios. 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 Analytics & Ratings platform provides investment and operational due diligence ratings on both public and private market strategies. Foresight has built its diligence niche in complex alternative assets, including domestic and international private credit investments.

For more information on our capabilities, please visit our website on 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 on www.foresight-analytics.com and streaming channels YouTube and Podcast.