Ausbiz – How to tap into one of the fastest growing asset classes
In yesterday’s interview with Ausbiz, we discussed the rising importance of private credit as a key asset class, with projections indicating it could double by 2028 to nearly $2.8 trillion. I explained that traditional 60/40 portfolios are becoming less effective due to the increased correlation between bonds and equities. By reallocating part of the fixed income exposure to private credit, investors can achieve higher returns and fewer losing years. A portfolio mix of 40 per cent equities, 30 per cent fixed income, and 30 per cent private credit not only enhances performance but also reduces volatility, providing greater portfolio stability without compromising equity exposure.
You can watch the full interview here: Ausbiz – How to tap into one of the fastest growing asset classes
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.
