Investors need better returns from FI

9 July 2020
| By Oksana Patron |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 3 months ago
Kevin Gorman

Super director remuneration ...

1 year 3 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 3 months ago

Shadow treasurer Angus Taylor has vowed to slash red tape and introduce a suite of financial services reforms aimed at transforming Australia into a leading financial hub...

1 hour ago

Deglobalisation is emerging as a major driver of infrastructure debt opportunities as regions onshore vital industries, a superannuation fund-owned manager has said....

1 hour ago

Australian superannuation funds are grappling with heightened global instability, as US policy shifts create a volatile backdrop for investment strategies....

1 hour ago

TOP PERFORMING FUNDS