CIP Asset Management

The CIP Asset Management Fixed Income team is a fundamentally driven, active investment manager that adopts a long-term focus. The team aims to provide diversified sources of income by seeking opportunities in both the public and private sectors, whilst maintaining capital stability.

About

CIP Asset Management (CIPAM) is part of Challenger Limited, which has been committed to providing investment solutions to clients for over 30 years. The Fixed Income business was established in 2005 to manage Challenger Life’s fixed income portfolio, and in 2010 received its first external institutional client mandate.

The Fixed Income team applies a multi-sector, relative value approach to investing which is designed for institutional investors with a long term investment horizon. Their clients benefit from the experience and market insights that the Fixed Income team has gained through the breadth and scale of its mandates.

The Fixed Income team has a long track record of delivering attractive and sustained risk-adjusted returns which can be attributed to a robust investment process centred on bottom-up fundamental credit analysis, with emphasis on structural protections to mitigate downside risk and avoiding defaults.

For more information, please visit www.cipam.com.au

Approach

The Fixed Income team’s investment philosophy is that taking a private approach to lending leads to better risk/return outcomes for clients across private and public markets. A private approach means underwriting credit risk as though you will own it – not trade it. It means actively sourcing new opportunities rather than waiting for a bank to call, and engaging with borrowers and arrangers directly to effect structural changes to transactions in order to mitigate downside risks and access better quality information. This approach involves having discipline in understanding and quantifying credit, liquidity, and complexity risk premia.

The Fixed income team takes a multi-strategy approach to credit investing, allowing for a broader opportunity set and avoiding sectors which are mispriced. The team adopts a relative value approach to investing such that cheapness and richness are considered in relative not absolute terms, both across sectors and for individual securities.

Fund

CIPAM Credit Income Fund

Strategy

The CIPAM Credit Income Fund (the Fund) maintains an investment grade credit risk profile, lending to a diverse mix of private and public borrowers. The Fund aims to provide clients with capital stability and income on a regular basis accompanied by lower levels of volatility than traditional fixed income strategies.

Suits Investors Seeking:

The Fund is suited to investors who:

Require an investment with consistent levels of income
Understand and are willing to accept a higher level of liquidity risk in order to generate higher returns than daily liquid fixed income products
Have an investment horizon greater than 3 years