Moelis Australia has launched its new Fixed Income Fund featuring a capital buffer and announced that the fund has been awarded a recommended plus rating from the Independent Investment Research (IIR).
The fund, which was open to wholesale investors only, was designed around a material co-investment, equivalent to 10 per cent of the fund’s capital, which would offer investors a capital buffer and help absorb any realised loses, the firm said.
It would aim to deliver regular returns equivalent to the Reserve Bank of Australia (RBA) cash rate plus four per cent per annum and pay distribution every month while offering exposure to consumer, accounts receivable and commercial credit product.
Moelis Australia’s head of asset management, Andrew Martin, said the fund was in line with the firm’s strategy to expand its credit offering, which was helped by obtaining an Australian credit licence last year.
“We have been building our credit expertise in the firm rapidly over the last few years, particularly as market conditions have driven increasing demand for credit beyond authorised deposit-taking institutions,” he said.
IRR praised the fund for its ability to deliver on “outsized returns relative to risk and to preserve a capital”
Martin added the firm had seen “increasing interest” in lower risk, annuity style products following the equity market volatility and uncertainty around franking credits.
Moelis Australia currently manages credit investments on behalf of high net worth and institutional investor in excess of $600m, it said.