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Independent ratings house, SQM Research (SQM) has awarded a Four-star ‘Superior’ investment grade rating to the Zagga Investments Lending Trust, managed by Zagga Investments Pty Limited (Zagga).
This rating means that the Zagga Feeder Fund is considered to be of a High Investment Grade – Suitable for inclusion on most APLs.
In SQM’s view, the Zagga Investments Lending Trust has an appreciable potential to outperform over the medium-to-long term. Furthermore:
- historical performance has tended to be meaningful.
- PDS compliance processes are strong
- there are very little to no corporate governance concerns
management is of a high calibre
- SQM considers that the good spread of loans by size “mitigates the risk of loss that would otherwise arise from a smaller number of large defaults”.
SQM notes that Zagga has “a well experienced management team that have cross functional expertise in business management and credit lending assessment.”
Zagga Investments Lending Trust targets net return in excess of those typically achieved from traditional commingled fixed interest, term deposits, enhanced cash or credit managed funds.
The SQM Report additionally lists the following as strengths of the Zagga Investments Lending Trust:
- the rate of return to investors on each loan is published in advance. Investors receive income as it is earned on the loan interest repayments, with real time reporting of the performance of the loan book to which the investor is exposed
- each investor is secured by the mortgage and therefore secured for their fractional interest in the security
- management fees are only charged on successful receipt of principal and interest on each loan, not on invested FUM.
Financial Advisers, and those who satisfy the criteria of wholesale client as defined under the Corporations Act (2001) (Cth), may request a copy of the full report by via Zagga’s webpage.
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Disclaimer: The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.