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

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

Challenger Investment Management

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.



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

Access to income and capital stability

The Challenger IM Credit Income Fund aims to provide clients with capital stability and income on a regular basis accompanied by lower levels of volatility than traditional fixed income strategies.

Managed Fund
Challenger IM Credit Income Fund
Australian Fixed Income
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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 and the Challenger IM Multi-Sector Private Lending Fund ( the Funds). 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. Any projections are based on assumptions which we believe are reasonable, but are subject to change and should not be relied upon. The Fund generally pays distributions quarterly; however, there may be periods in which reduced or no distributions are paid and we do not guarantee any level of distributions Livewire gives readers access to information and educational content provided by financial services professionals and companies (“Livewire Contributors”). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 fund mentioned

Pete Robinson
Head of Investment Strategy
Challenger Investment Management

Pete is Head of Investment Strategy for Challenger Investment Management’s Fixed Income division. He is a portfolio manager for the Challenger Investment Management Credit Income Fund and the Challenger Investment Management Multi-Sector Private...

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