CIP Asset Management enters retail funds management
December 2020
Leading alternative credit manager CIP Asset Management (CIPAM) has entered the retail fixed income funds management market, with the launch of a retail version of the CIPAM Credit Income Fund.
10 Dec 2020 – click here to view on AdviserVoice
CIPAM was formerly known as Challenger Investment Partners before rebranding earlier this year. Its 22-strong investment team has one of the longest Australian track records in institutional private lending strategies.
The CIPAM Credit Income Fund (Fund) is a floating rate, multi-sector credit strategy which invests mostly in investment grade opportunities. It is unique in the Australian marketplace as it invests in both public and private debt markets, while managing for monthly rather than daily liquidity.
The Fund aims to provide investors with capital stability and stable income generation, accompanied by lower levels of volatility than traditional fixed income strategies, which it achieves by avoiding interest rate or currency risk.
Rated ‘Recommended’ by Zenith, the Fund targets the Bloomberg AusBond Bank Bill Index +3% after fees, and aims to achieve superior absolute returns over the medium to long term.
CIPAM Fixed Income team’s Head of Investment Strategy, Pete Robinson said the credit manager was pleased to bring its sophisticated investment approach to Australian retail investors for the first time.
“We have been managing fixed income investments on behalf of some of Australia’s and the world’s most sophisticated institutional investors for more than 15 years, and we’re excited to offer that expertise and investment mindset to a broader range of investors”.
“Our investment team’s breadth of experience combined with our wide investment lens allows us to exploit market inefficiencies across all sectors in the global credit market”.
“We reduce sensitivity to market risk by building diversified portfolios with low cross-sectoral correlations and relatively short spread duration while seeking to identify attractively priced but hard to access opportunities in less liquid markets. This is not an off-the-shelf-credit fund, it is carefully designed to achieve the best possible returns without compromising on risk,” Mr Robinson said.
“At CIPAM we’re focused on product innovation, strong governance and building long term partnerships with our clients. We have one of the longest track records in Australian private lending markets and our team is uniquely positioned to exploit opportunities across both public and private lending markets. In addition, we offer investors a robust governance framework, including an independent credit risk management team within the Challenger Group. This governance framework is key in private lending markets, ensuring our clients have confidence that they are being appropriately compensated for the risks in their portfolios,” Mr Robinson said.
Unless otherwise specified, any information contained in this material is current as at date of publication and is provided by Challenger Investment Partners Limited (CIP Asset Management, CIPAM) (ABN 29 092 382 842, AFSL 234678), the investment manager of the CIPAM 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 CIPAM 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 CIPAM 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 CIPAM. 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.