Harnessing the $5 trillion income opportunity
Ares Australia Management
The following was published on Livewire Markets on 22 June 2021.
Many investors have climbed to new heights on the risk curve, seeking income opportunities in this environment of record-low interest rates and persistently low inflation.
Global bond yields have been depressed for at least the last decade. But the difficulty for local income investors was magnified further by COVID-19, as Australian bank dividends came under pressure.
With its roots in the credit investment space, Ares is a globally recognised alternative asset manager based in the US, where it was founded almost 25 years ago. Investing across the credit universe, the Ares Global Credit Income Fund (Fund) is a dynamic income strategy which we believe is ideally suited to shifting markets outside of Australia.
And with an emphasis on enhancing income, boosting diversification and providing downside protection, the Fund looks to access asset classes across global liquid credit. This strategy seeks to capture the best relative value not only between asset classes but also between industries. Being very nimble in seeking to capture those opportunities, we view this Fund as a pure-play on global credit opportunities.
Particularly for Australian investors who tend to hold highly concentrated portfolios, we believe this Fund opens up a $5 trillion opportunity set, which I expand on in our Fund in Focus below.