Foresight Analytics has completed a ratings assessment of the Arrow Australian Emerging Opportunities Fund. The Fund has been assigned a STRONG rating and a Foresight Product Complexity Indicator of RELATIVELY SIMPLE. The Arrow Australian Emerging Opportunities Fund is an Unregistered Wholesale Unit Trust managed by Arrow Asset Management, a boutique, fundamental, long-only fund manager focusing on Australian microcap equities.
The investment rating of STRONG is the third highest rating on the scale used by Foresight Analytics and reflects a strong level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives. A Foresight Complexity Indicator of RELATIVELY SIMPLE has been assigned, indicating that the Fund invests predominantly in listed assets and has an absolute return objective.
The Fund’s investment strategy is style-agnostic and aims to invest in opportunities across three investment styles: value, growth and quality. The Fund is biased towards quality and micro caps. It seeks to avoid poor companies within the microcap universe as lower levels of liquidity or infrequent trading often results in large and sudden price movements following company news or events.
As an early-stage Fund of Arrow Asset Management, the team have started the strategy as a “minimum viable product” and aim to bootstrap their way to best practice over time. The Fund is likely to outperform its absolute return benchmark over a full investment cycle.
Foresight Analytics’ analyst, Dan Grioli, says “The Fund uses a well-considered investment strategy based on deep knowledge and experience of what works/doesn’t work in the microcap investment universe.” He added, “It is implemented in a disciplined manner by a team of highly-experienced investors with an enviable long-term track record of success.”
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.