Amid rising interest rates and increased market volatility ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
The opportunity in private debt amid rising interest rates and increased market volatility | Stock market volatility has been elevated as mounting macroeconomic headwinds have added to uncertainty about the economic outlook. Meanwhile, rising official interest rates have eroded the value of traditional fixed income investments. Fortunately, there is an asset class that may provide investors with reduced capital volatility and higher investment income in a rising rate environment – Private Debt. |
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Metrics Direct Income Fund | The Metrics Direct Income Fund (Fund) is a private debt fund that has a low correlation with public market securities. It targets a return of 3.25% p.a.1 (net of fees) above the RBA Cash Rate2 (currently 6.85% p.a.). So, if interest rates rise, investment returns from the Fund also rise. | Features: | Diversified portfolio of in excess of 300 corporate loans across a range of Australian industries Monthly income3 generated from interest and fees charged to borrowers Experienced and active management team Monthly liquidity (where the Fund is liquid)4 Management fee 0.58% p.a. of the Funds NAV5 Minimum initial investment $1,0006 | | | Target return is a target only and may not be achieved. RBA Cash Rate currently 360bps p.a. Neither the Investment Manager or the Responsible Entity guarantees the performance of the Fund or the return of investor's capital. Income payments depend on the success of underlying investments and are at the responsible entity's discretion. Where the Fund is liquid, the Responsible Entity will typically accept redemption requests monthly, at the end of each month, with 10 business days prior written notice. In certain circumstances redemptions may be restricted. Please refer to the PDS for more information. Excluding impact of performance fees. Direct Investors only. Minimum investment via platform may vary, refer to IDPS operator requirements. | |
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| Key Risks | | Credit risk is one of the risks within a portfolio of private loan assets. We address this risk by: | | Undertaking a detailed and thorough risk assessment of all borrowers we lend to and complete rigorous due diligence prior to committing capital. Ensuring there is a sufficient equity buffer within the loan agreements to absorb any decline in the financial performance and valuation of a company. Employing highly skilled investment professionals with experience in corporate restructuring that can act swiftly to preserve value for our investors should a workout or corporate restructure be required. | | Refer to the PDS for more detail on the risks associated with investing in the Fund. | |
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