Private credit as a core allocation: insights from Fraser Heard

Private credit as a core allocation: insights from Fraser Heard

In this video, Fraser, head of partners Private, heard his perspective on the growing role of private credit within customer portfolios. He outlines why private credit is on the rise as a core activist class in Australia, in particular because investors remove income and diversification from traditional sources. Fraser discusses how partners private private credit options evaluates, with a strong focus on management quality, transparency, risk discipline and the structural benefits that the activa class can offer.

Important points of discussion:

• The role of private credit: Increasingly considered a permanent and strategic part of diversified portfolios, in particular for customer -seeking customers.
• Market evolution: The private credit market of Australia is mature and shifts from real estate-heavy loans to broader business opportunities.
• Choose the right manager: Look for managers who have successfully dealt with investments through both good and heavy market periods, and who follow strict lending and risk monitoring to protect investors.
• Diversification approach: Importance of investing in different types of borrowers, industries, locations, loan sizes and assets that are used as security to reduce the chance of losses.
• Transparency standards: Full disclosure of portfolio details, arrears, assessments and all reimbursement structures is essential.
• Customer results: Advantages may be improved income, reduced volatility, non -correlated returns and suitable liquidity conditions, depending on the needs of the customer.

You can watch the full video here.

Indemnification

You must read the relevant explanation of product knowledge (PDS) or Information Memorandum (IM) before you decide to acquire investment products.   

Past performance is not an indicator of future performance. The return is not guaranteed and so the value of an investment can rise or fall.   

This information is provided by investments in Montgomery Management PTY LTD (ACN 139 161 701 | AFL 354564) (Montgomery) as an authorized distributor of the Aura Core Income Fund (ARSN 658 462 652) (Fund). As an authorized distributor, Montgomery has the right to earn distribution costs paid by the investment manager and the equity can be issued by the investment manager or entities related to the investment manager.   

The Aura Core Income Fund (ARSN 658 462 652) (Fund) is issued by One Managed Investment Funds Limited (ACN 117 400 987 | AFL 297042) (OMIFL) as responsible entity for the fund. Aura Credit Holdings PTY LTD (ACN 656 261 200) (ACH) is the investment manager of the fund and operates as a business -oriented representative (Car 1297296) of Aura Capital PTY LTD (ACN 143 700 887 | AFL 366230).    

You must obtain the product Disclosure Statement (PDS) and Doelmarkt determination (TMD) for the Aura Core Income Fund and carefully consider before you make a decision to acquire or continue to overcome or continue to overcome the fund. Applications for units in the fund can only be made via the online application form. The PDS, TMD, continuous disclosure messages and relevant application form can be obtained from www.oneinvestment.com.au/auracoreincomefund or from Montgomery.   

The Aura Private Credit Income Fund is a non -registered investment scheme only for wholesale customers and is issued under an Information Memorandum by Aura Funds Management PTY LTD (ABN 96 607 158 814, authorized representative no. 1233893 of ABA CAPITAAL NOODAAL NOODAAL ABNAAL PTY. 700 887).   

All given financial product advice is only of a general nature. The information was provided without taking into account the investment objectives, financial situation or needs of a certain investor. Therefore, before you are included in the information in this report, you must obtain professional advice and consider whether the information is suitable in the light of your objectives, financial situation and needs.     

Montgomery, ACH and Omifl do not guarantee the performance of the funds, the reimbursement of any capital or any return. Investing in every financial product is subject to investment risks, including possible loss. Past performance is not a reliable indicator of future performance. Information in this report may be based on information provided by third parties that may not have been verified.