Standard & Poor's Fund Services (S&P) has removed the on-hold rating for 18 funds that were affected by the ban on short-selling.
The ratings agency said it was comfortable the funds were able to continue to execute their mandates.
"These funds have all reduced exposure and are holding strong cash positions, ready to take advantage of new opportunities that have presented themselves, after the recent volatility in global markets," S&P said.
The on-hold classification means a fund's rating is suspended, because issues have emerged that could affect the management of that fund.
On September 22, the agency suspended the ratings of 57 funds, after ASIC introduced a ban on short-selling. The funds involved all used short-selling as part of their strategy to achieve their targeted performance.
Of the 57 funds, 40 have now had their ratings reinstated.
The remaining 17 funds consist of quantitative long/short funds, and some Australian long/short funds.
Their situation will be reviewed on a case-by-case basis, as information emerges on their portfolio positioning and ability to perform their investment mandates, given the ban in place.
