Insights | Accessing a 6.7% yield without the volatility and uncertainty of equities

Accessing a 6.7% yield without the volatility and uncertainty of equities

June 2023

The following video was produced and published by Livewire on 27 June 2023.

Outperforming in fixed income markets often means not betting on the direction of interest rates.

There is a whole sect of the financial markets dedicated to guessing which way interest rates will go month-to-month. But at Challenger Investment Management, we believe that is not the best way to provide solid, recurring incomes to our investors. We believe the best way is to hand pick quality assets, issued by quality companies that we know and trust.

The Challenger IM Credit Income Fund now pays a healthy 6.7% yield to maturity, supported by a range of these high-quality public and private credit assets. 

In addition, the fund is backed by one of Australia’s most experienced buy-side firms. Our parent firm, Challenger, is an ASX-listed business with nearly $100 billion in assets under management.

In this Fund in Focus, I’ll take you through the Challenger Credit Income Fund and show you why private credit is a great diversification option for today’s income investor.

– Pete Robinson, Head of Investment Strategy, Fixed Income

TIMESTAMPS

  • 0:00 – Intro 
  • 0:16 – The macro backdrop 
  • 0:59 – An introduction to Challenger 
  • 2:06 – Introducing private credit 
  • 3:31 – About the Challenger IM Credit Income Fund 
  • 5:22 – The fund’s track record 
  • 5:48 – Composition of the portfolio

Unless otherwise specified, any information contained in this material is current as at date of publication and is provided by Challenger Investment Partners Limited (Challenger Investment Management or Challenger) (ABN 29 092 382 842, AFSL 234678), the investment manager of the Challenger IM Credit Income Fund ARSN 620 882 055 (Fund). Fidante Partners Limited ABN 94 002 835 592, AFSL 234668 (Fidante) is the responsible entity and issuer of interests in the Fund. Fidante and Challenger Investment Management are members of the Challenger Limited group of companies (Challenger Group). Information is intended to be general only and not financial product advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider whether the information is suitable to your circumstances. The Fund’s Target Market Determination and Product Disclosure Statement (PDS) available at www.fidante.com.au should be considered before making a decision about whether to buy or hold units in the Fund. Past performance is not a reliable indicator of future performance. Fidante and Challenger Investment Management are not authorised deposit-taking institutions (ADI) for the purpose of the Banking Act 1959 (Cth), and their 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 and Challenger Investment Management. Investments in the Fund 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.