SQM Research cuts Blue Sky funds ratings
SQM Research has revised down the ratings of two funds managed by subsidiaries of Blue Sky Alternative Investments: the Alternatives Access Fund (BAF) and the Alliance Fund – Dynamic Macro Portfolio (APIR).
SQM’s revision resulted in BAF being downgraded from 4.00 stars to 3.25 stars while APIR saw the rating to go down from 4.00 stars to 3.5 stars.
According to SQM, BAF’s performance was significantly under-benchmark and peers, there were corporate governance concerns, while the management was described to have operated “in an average manner”.
“There is a greater than average risk of underperformance over the medium term. There is a risk of the fund not operating to mandate or to its PDS,” the research house said in a press release.
At the same time, APIR saw “some degree of additional risk” attached due to the fund’s performance, however, its management was identified as “generally experienced and capable”.
“The fund may periodically underperform its peers and benchmark or it has not been fully tested and there may be some additional concentration risk,” SQM said.
According to the research house, there might be corporate governance issues of a mid-level or concerns regarding the responsible entities/parent entities’ financial position or performance.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.