Video: Harnessing the $5 trillion income opportunity
The following was published on Livewire Markets on 22 June 2021.
Many investors have climbed to new heights on the risk curve, seeking income opportunities in this environment of record-low interest rates and persistently low inflation.
Global bond yields have been depressed for at least the last decade. But the difficulty for local income investors was magnified further by COVID-19, as Australian bank dividends came under pressure.
With its roots in the credit investment space, Ares is a globally recognised alternative asset manager based in the US, where it was founded almost 25 years ago. Investing across the credit universe, the Ares Global Credit Income Fund (Fund) is a dynamic income strategy which we believe is ideally suited to shifting markets outside of Australia.
And with an emphasis on enhancing income, boosting diversification and providing downside protection, the Fund looks to access asset classes across global liquid credit. This strategy seeks to capture the best relative value not only between asset classes but also between industries. Being very nimble in seeking to capture those opportunities, we view this Fund as a pure-play on global credit opportunities.
Particularly for Australian investors who tend to hold highly concentrated portfolios, we believe this Fund opens up a $5 trillion opportunity set, which I expand on in our Fund in Focus below.
Disclaimer – Fidante Partners
Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante) has entered into arrangements with Ares and Ares Australia Management Pty has entered into arrangements with Ares and Ares Australia Management Pty Ltd ABN 51 636 490 732 (AAM), in connection with the distribution and administration of financial products managed by Ares or AAM. In connection with those arrangements, Fidante or AAM may receive remuneration or other benefits. Neither Fidante nor AAM nor any of their associates are responsible for the information in this material, including any statements of opinion and accept no liability whatsoever in relation to it. AAM is an Authorised Representative No. 001280423 of Fidante and is in the process of seeking its own Australian Financial Services Licence. Ares is exempt from the requirement to hold an Australian Financial Services Licence. Ares is subject to regulation by the Securities & Exchange Commission of the United States of America under US laws, which differ from Australian laws. This publication is only made available to ‘wholesale clients’ or ‘sophisticated investors’ under the Corporations Act 2001 (Cth) in Australia. Fidante is not an authorised deposit-taking institution (ADI) for the purpose of the Banking Act 1959 (Cth), and its obligations do not represent deposits or liabilities of an ADI in the Challenger Group (Challenger ADI) and no Challenger ADI provides a guarantee or otherwise provides assurance in respect of the obligations of Fidante. Investments in the Fund(s) are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Accordingly, the performance, the repayment of capital or any particular rate of return on your investments are not guaranteed by any member of the Challenger Group.