Press Release – Foresight Analytics Reassigns SUPERIOR Rating to
Two Coolabah Capital Investments Funds
Sydney, 9th September 2025
Foresight Analytics & Ratings has recently completed ratings assessment of two Coolabah managed investment funds – the Coolabah Long Short Opportunities Fund & the exchange quoted Coolabah Global Floating-Rate High Yield Fund (YLDX). Both funds have been reassigned a SUPERIOR investment rating, reflecting Foresight Analytics’ highest level of confidence that the funds are likely to deliver a risk-adjusted return in line with its investment objectives.
The Foresight Product Complexity Indicator (PCI), which considers the complexity of an investment product based on 10 factors, was assigned as MORE COMPLEX for the Coolabah Long Short Opportunities Fund and COMPLEX for the Coolabah Global Floating-Rate High Yield Fund. The strategies may include the use of very liquid derivatives such as index futures.
Both funds rated by Foresight Analytics & Ratings are managed by Australia-based Coolabah Capital Investments Pty Ltd, an active credit alpha manager responsible for managing numerous wealth and institutional mandates. The firm is 62% owned by its investment team and 38% owned by the Pinnacle Investment Management Group Limited (ASX: PNI), an Australia-based multi-affiliate investment firm.
Coolabah Capital Investments was established in 2011 and launched its first fund in February 2012. It has continued to grow strongly in all facets. It currently manages 32 institutional mandates and 19 public offer funds, with a combined FUM of approximately AU$15.5BN (as at July 2025). This includes one of the fastest-growing ETMFs in Australia, Betashare’s Active Australian Hybrids Fund (ASX: HBRD), which has over AU$2.5BN in FUM. Coolabah Capital Investments is a fixed-income, quant-driven, relative-value house, as opposed to a traditional fundamental-driven credit house, and has a singular focus on floating-rate instruments for the Fund.
The Coolabah Global Floating-Rate High Yield Fund is an open-ended Australian unit trust and CBOE Listed exchange traded fund (YLDX) with exposure to a portfolio of investment-grade senior and Tier-2 bonds and cash securities issued in G10 currencies by global banks and insurers. It has the capacity to invest in government bonds, corporate bonds and hybrid securities. Leverage is applied up to a maximum of 400% of total gross exposure.
The Coolabah Long Short Opportunities Fund is an absolute-return, alternative fixed-income strategy. The investment manager aims to generate returns by taking a long or short position on mispriced fixed-income securities. The Fund primarily invests in senior and subordinated debt securities (including government, semi-government, supranational, sovereign and agency bonds), hybrids and derivatives issued by Australian entities. It also invests in similar security types issued by overseas entities. The Fund aims to hold the majority of its portfolio in global investment-grade debt and hybrid securities.
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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.
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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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