Zagga Retains Superior Rating By SQM Research
Independent ratings house, SQM Research awards a 4-star ‘Superior’ investment grade rating
to the Zagga Investments Lending Trust for the fifth consecutive year.
April 2025
Zagga Investments Lending Trust (ZILT) awarded 4-star, SUPERIOR rating for the fifth consecutive year by SQM Research
According to SQM, the Trust has outperformed the reference index over three years, and since its inception, and has displayed strong performance across all periods when compared with peers.
"SQM Research believes the practice of constant communication and the broad-based inclusion of team members in decision-making is a vital ingredient to the success of the process."
The strengths of the Trust
The loan originations have shown a steady and material increase over time since their inception.
The majority of loans include capitalised interest and, either up-front or per tranche, servicing. Interest arrears are generally rare.
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.
Management fees are only charged on successful receipt of principal and interest on each loan, not on invested FUM.
The management team are well-experienced with cross-functional expertise in business management and credit lending assessment.
The team maintain a close working relationship with the originator and Borrower of the loans.
The Trustee’s Compliance Committee is composed of eight members, three of whom are independent. The Chair is independent. SQM Research views independence in a RE oversight body such as the Compliance Committee as a strong and favourable factor in Fund governance.
Zagga’s sophisticated software platform enables fractionation of investment risk and the customisation of a return profile for individual investors, according to the investor’s investment requirements and asset allocation preferences.
ZILT is not a commingled fund where all investors have exposure to identical holdings in a portfolio at a particular point in time. Portfolio holdings are unique for each investor, which reflects the investor’s personal investment.
Exposure to smaller loans reduces the risk inherent in larger-sized failures. Zagga’s loans are typically, shorter-term loans, with terms from six months up to 24 months.
As a result of intensive due diligence processes, the transaction-specific interest rates recognise the individual risk inherent in each loan.
None of Zagga’s loans have been exposed to the insolvency of third-party building companies, and overall, all construction projects are active, albeit delayed for the respective reasons.
"SQM Research observes that the levels of investment experience and company tenure are strong across the investment team."
Since last year's review
Zagga has launched a Zagga Real Estate Credit Fund (ZRECF), a Variable Capital Company (‘VCC’) sub-fund domiciled in Singapore, of which JAR is the owner of the umbrella VCC and Apex is the fund administrator. Tim Walter (JAR) and Alan Greenstein are directors of ZRECF. ZCREF invests in ZILT 9 (a new lending trust), which invests in any Zagga Fund, predominantly ZILT.
How to invest?
The SQM Report recognises the key ways an investor can invest via the Zagga Investment Lending Trust:
Invest via a Fund
Earn regular income and portfolio diversification opportunities without the need to personally scrutinise each and every individual loan opportunity.
Invest directly
Create a more balanced investment portfolio and predictable returns by investing in individual loans that meet your risk and return preferences.