POWERED BY MOMENTUM MEDIA
Investors need better returns from FI
Investors in cash and Australian government bonds who are worried to lose money due to successive rate cuts should consider investment exposures to corporate loans as it had more attractive risk-adjusted returns, according to Metrics Credit Partners.
According to Metrics’ Andrew Lockhart, the Australian corporate loan market still offered attractive returns which similarly to all fixed income provided additional portfolio diversification which was particularly important for retirees who need to generate regular income while protecting their capital base at the same time.
Lockhart stressed that many equity investors had recently experienced income cuts as companies were reducing their dividend payments, forcing them to seek an alternative source of income.
At the same time, investing in directly originated private loans to Australian companies gained recognition among some investors.
“In a low-rate and low-yield environment, the Metrics Direct Income Fund provides a potential investment option for investors – such as retirees and self-managed super funds – to replace their declining dividend and interest returns with an alternative source of income,” Lockhart said.
Recommended for you
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
Fund managers remain hopeful for a Chinese revival story despite the “disappointing” stimulus package announced this week.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
