Private credit offers investors with an opportunity to earn steady monthly income, a simple way to diversify your portfolio – whilst providing protection against inflation and performance through the economic cycle.
Recently, we’ve been speaking with investors and advisers on the features and benefits of Private Credit Funds, specifically the Aura High Yield SME Fund and the Aura Core Income Fund. Both Funds invest in portfolios of Australian small to medium-sized enterprise business loans, originated by non-bank lenders.
What we discovered is that people think about investing in private credit funds ‘tactically’, waiting for a recession or some sort of economic setback before proceeding.
Some advisers also believe there will be an economic slowdown and conclude credit margins won’t be high enough to compensate for that risk.
In this whitepaper I identify why thinking about private credit strategically rather than tactically may produce a more desirable long-term outcome for investors.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
