Press Release – Foresight Analytics & Ratings Reassigns a ‘VERY STRONG’ Rating to Remara Cash Management Fund
Sydney, 29th May 2025
Foresight Analytics & Ratings has recently completed ratings assessment of the Remara Cash Management Fund, a fund launched in June 2024. The Investment Rating for the strategy has been graded as VERY STRONG while the Foresight Complexity Indicator has been designated as COMPLEX.
A VERY STRONG rating indicates a very high level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives. The Fund is well designed from a liquidity management perspective, including the less liquid private warehouse component. There is 48 hours of liquidity in the Fund in a worst-case scenario. The fixed and variable option is a distinct point of difference in the market for this type of product. The investment manager’s support for this strategy is experienced and well-resourced.
Designation as a COMPLEX product predominantly relates to the multiplicity of warehouse structures and, in turn, the multiplicity of lending verticals. As noted above, however, at the heart of this complexity is what, in our view, provides various risk-return attractions for investors.
The fund is managed by Remara Investment Management Pty. Ltd., a part of the Remara Group (Remara).
The fund invests in short-term notes linked to a pool of public and unlisted floating-rate Australian credit instruments, all of which are investment-grade rated (either externally or through shadow-rated instruments). These include public floating-rate notes with AAA or AA ratings and investment-grade securitised public and private RMBS/ABS/MBS instruments. Private securitised ABS investments are implemented via a Remara warehouse that comprises several secured SME lending verticals. The investment is in the senior notes of the tranched structure. The fund aims to provide a stable monthly income from a diversified portfolio of debt securities.
The fund has been well designed to address the 2 key risks in cash-enhanced term products: being paid less than the ‘promised’ amount (performance risk); and not being paid on time (liquidity risk). It delivers attractive risk-adjusted returns relative to comparable products, and on an absolute basis.
The fund is a new offering from Remara, however the key team members running the fund have considerable prior experience, in corporate trading, treasury functions and product structuring.
Rob da Silva, the Head of Research at Foresight Analytics, says, “The fund offers several attractive features compared to other enhanced cash products. The underlying portfolio is high quality and consists of senior tranche investments instead of whole-of-loan exposures. It has well-structured liquidity, multiple layers of provision, and offers fixed and variable return options. In our view, the Fund is a strong relative risk-adjusted returns proposition.”
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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.
Media Contact – Foresight Analytics
Rob da Silva
Head of Research
Suite 208, 33 Lexington Drive, Bella Vista, 2153, NSW
Telephone: 0468368239 / 02 8883 1369
Email: rob@foresight-analytics.com
Web: www.foresight-analytics.com
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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