Foresight Analytics has recently completed a rating assessment of the Payton Select Investment Fund (PSIF) and the Payton Pooled Investment Fund (PPIF).
Both funds have been assigned a STRONG rating reflecting Foresight Analytics’ strong level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives. Since its inception in 2018, the PSIF has delivered a weighted average return across its portfolio of 11%, with returns remaining relatively stable over the period. In the first 12 months of trading, the PPIF has successfully delivered its returns targets as well.
The Foresight Product Complexity Indicator for both funds is COMPLEX, which indicates the underlying assets require specialist investment skills to acquire and manage. This type of investment is suitable for investors who understand the illiquid characteristics of these types of investments.
The PSIF and the PPIF are managed by Melbourne-based Payton Capital Ltd. Payton specialises in the provision of wholesale debt to businesses and real estate developers, and investment products for wholesale investors, SMSFs, family offices and institutional investors. The manager has funded over $1.5BN of loans since inception and currently has $839M in assets under management.
PSIF is an unlisted managed investment scheme structured as a unit trust. Investors select their investment options, which are linked to loans and, accordingly, classes of units. The investment products are Capital Secure, Capital Stable, Balanced, Growth and High Yield. The fund invests in a diversified portfolio of loans that earn a fixed rate of return over a fixed term. The loans are secured by first, second and subsequent mortgages on Australian commercial real estate, predominantly residential, metropolitan properties. The fund may also invest, to a lesser extent, in loans secured by commercial, industrial or rural properties.
PPIF is an unlisted MIS structured as a Unit Trust. It invests in a diversified portfolio of commercial loans, secured by first and second mortgages on Australian real estate assets. Under the strategy, investors’ funds are ‘pooled’ and invested collectively through a unit trust. Investments are assigned between 3 investment options, each linked to a different pool of investments: ‘Cash Plus’, ‘Core’ and ‘Opportunity’.
Foresight Analytics’ analyst Natasha Quirk says, ‘Payton successfully applies an investment strategy designed to deliver competitive returns and actively manages risk to preserve investor capital. Payton’s investment team comprises an experienced group of ex-bankers with significant credit expertise and a deep understanding of real-estate debt structuring. Payton’s Board of Directors, Investment Committee and senior management bring together in excess of 200 years of relevant experience in funds management, property development, banking, law, valuation, and commercial mortgage lending.’
She adds, ‘Over the last 4 years, significant investment has been made to strengthen the foundation of the business, including expanding the investment team, IT infrastructure, and new office premises in Sydney. Further investment is budgeted for resources, further geographical expansion and marketing to support loan diversification.’
To read the full press release in pdf version, please click here
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.
Foresight’s fiduciary solutions include Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.