Metrics funds assigned Superior ratings by Australia Ratings

Australia Ratings Analytics (Australia Ratings) has assigned a ‘SUPERIOR’ investment rating to two Trusts managed by Metrics Credit Partners Pty Ltd (Metrics). Both, the MCP Master Income Trust (MXT) and the Metrics Direct Income Fund have been assigned a ‘SUPERIOR’ Investment Rating.

A rating of SUPERIOR is the highest rating on the investment rating scale used by Australia Rating. A SUPERIOR investment rating indicates the highest level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives.

The Trusts have also been allocated a Product Complexity Indicator of ‘BLUE’, which indicates a ‘Relatively Simple’ financial product. This Product Complexity Indicator denotes a belief that the strategies used to outperform, while requiring a depth of market experience and due diligence, are completely compatible with normal market practice.

The Metrics Direct Income Fund is a newly released retail Fund that, like the listed MCP Master Income Trust (MXT, ASX), invests in the Australian corporate loan market through investment in Metrics’ wholesale funds. The characteristics of the investments are very low capital volatility, regular monthly income flow, and a significant return margin compared with cash and short-term cash securities.

Australia Ratings’ analyst Maggie Callinan said, “the Metrics team is very experienced and well-resourced, with a solid track record”. She added “These two Trusts are an attractive investment on a risk-return basis, offering well diversified investment in a sub-asset class that would otherwise be difficult to access for non-bank investors”. Although the listed vehicle, MXT, was subject to some market volatility at the end of the March quarter, the returns from the underlying wholesale funds have remained stable throughout the recent covid-19 related market volatility.

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A copy of the full Australia Ratings report for the newly launched Metrics Direct Income Fund and the MCP Master Income Trust are now available.

Australia Ratings – 9 July 2020