Moelis Australia launches credit fund

moelis-Australia/fixed-income/fixed-income-fund/rating/recommended/Andrew-Martin/

24 May 2019
| By Oksana Patron |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 2 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

1 week 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND