Ares Australia launches its first Aussie fund
Ares Australia Management, the joint venture between credit and alternative managers Ares Management Corporation and Fidante Partners, has announced the launch of its first Australian product, the Ares Global Credit Income fund.
The fund represented the first of several products that AAM planned to launch in the country over the next two years as the company sought to become a leading credit and alternative asset manager in Australia.
The new fund, which would offer Australian investors access to the actively-managed strategy focused on capital preservation while lowering concentration risks and additional diversification from traditional investment in their portfolios, would have a target distribution of 3% to 4% per annum paid monthly.
“In Australia, a lot of investors looking for higher levels of income have historically invested in Australian bank equity or hybrid securities. Fixed income investments also have significant exposure to banks and structured products backed by local mortgages. The Ares Global Credit Income fund seeks to meet this need for higher income and diversification in a different way,” AAM head Teiki Benveniste said.
“The joint venture with Ares is designed to bring Australian investors access to one of the world’s leading alternative credit managers. With the disruption seen globally from COVID-19, there is no more important time for the depth and skill of Ares who invest across the credit universe, an asset class that will continue to grow in importance for investors in Australia,” Challenger funds management chief executive Nick Hamilton added.
“The disruption across markets today is bringing the Ares investment team opportunities and the launch of the Ares Global Credit Income fund is ideally timed.”
AUTHOR
Oksana Patron
Recommended for you
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
Regal chief investment officer Philip King will step down from listed investment company VGI Partners Global Investments after the LIC reported a loss of $17.6 million for FY25.
Real asset commentators have shared what advisers should be considering when conducting their due diligence on the assets and how they can mitigate illiquidity for retail clients.
