RateSetter receives investment grade rating from SQM research

Independent investment product rating agency SQM Research has upgraded its rating of the RateSetter Lending Platform to a ‘Favourable’ rating in its latest grading of investment products for financial advisers and brokers.

SQM has also designated the product ‘Approved investment grade’ (just one step below SQM’s highest grading of ‘High investment grade’). In granting its rating, SQM specifically noted the level of returns delivered to investors (relative to benchmarks) and that no investor has suffered a loss of either principal or interest investing via the RateSetter Lending Platform.

Other factors noted by SQM in determining its rating include (amongst other things) that:

  1. RateSetter is well resourced, with expertise stemming from its related company’s operations in the United Kingdom
  2. RateSetter’s highly qualified, experienced and disciplined investment and business development team aimed at growing the borrower/lender marketplace. SQM noted also the addition of Vaughn Richtor, former CEO of ING Direct (Australia) to the board of RateSetter Australia Pty Limited in late 2016
  3. RateSetter’s Provision Fund is designed to limit the risk to investors and to date has ensured that no investor has lost any principal or interest using the RLP
  4. The growth of RateSetter’s borrower base, which has increased the number and value of loans and diversified borrower risk
  5. RateSetter’s risk management process has an explicit focus on diversification

Daniel Foggo our CEO had this to say about the rating:

“We are delighted to receive an upgraded rating from SQM Research. Their Favourable rating demonstrates our progress in providing investors with a simpler, safer way to access the attractive asset class of consumer and business credit. We look forward to further increases in ratings as we continue to deliver stable, attractive risk-adjusted returns to investors.”

A full copy of the report is available for financial advisers. Email advisors at ratesetter.com.au to request a copy.

Investing in the RateSetter Lending Platform is not without risk and you should read our Product Disclosure Statement before you invest. RateSetter is not a bank and an investment in the RateSetter Lending Platform is not covered by the Financial Claims Scheme.

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.