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Looking for an alternative source of income amid the turbulence? | Australian private debt is among the few asset classes that aim to offer both reduced capital volatility and regular income. It has a low correlation with growth assets such as equities and property, as well as other fixed income products such as bonds. In a rising interest rate environment, investors are looking for alternative sources of income that keeps pace with inflation and reduce capital volatility. Could private debt be the solution? |
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How Metrics private debt funds provide income to investors | | | | Investors purchase units in a fund: Funds raised from individual and institutional investors are lent to Australian companies across a wide range of industries and sectors. |
| | | | Companies borrow: Metrics lend directly to companies and projects in a similar manner to banks. |
| | | | Fund distributes income: The interest and fees received from borrowers on their loans becomes the source of income for investors, distributed monthly net of fees. |
| | Metrics Credit Partners offer a range of private debt investment funds for retail and wholesale investors. |
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Metrics Direct Income Fund | The Metrics Direct Income Fund (Fund) targets a return of 3.25% p.a. 1 (net of fees) above the RBA Cash Rate 2 (currently 7.35% p.a.). So, if interest rates rise, investment returns from the Fund also rise. | Features: | Diversified portfolio of ~300 corporate loans across a range of Australian industries Monthly income 3 generated from interest and fees charged to borrowers Experienced and active management team Monthly liquidity (where the Fund is liquid) 4 Management fee 0.58% p.a. of the Fund's NAV 5 Minimum initial investment $1,000 6 | | | Target return is a target only and may not be achieved. RBA Cash Rate currently 410bps p.a. Neither the Investment Manager or the Responsible Entity guarantees the performance of the Fund or the return of investor's capital. Income payments depend on the success of underlying investments and are at the responsible entity's discretion. Where the Fund is liquid, the Responsible Entity will typically accept redemption requests monthly, at the end of each month, with 10 business days prior written notice. In certain circumstances redemptions may be restricted. Please refer to the PDS for more information. Excluding impact of performance fees. Direct Investors only. Minimum investment via platform may vary, refer to IDPS operator requirements. |
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Key risks | | Credit risk is one of the risks within a portfolio of private loan assets. We address this risk by: | | Undertaking a detailed and thorough risk assessment of all borrowers we lend to and complete rigorous due diligence prior to committing capital. Ensuring there is a sufficient equity buffer within the loan agreements to absorb any decline in the financial performance and valuation of a company. Employing highly skilled investment professionals with experience in corporate restructuring that can act swiftly to preserve value for our investors should a workout or corporate restructure be required. |
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About Metrics Credit Partners | Metrics Credit Partners is Australia's leading specialist private debt manager with in excess of $15bn in AUM and a 10-year track record of performance and capital preservation 7. | 7 Past performance is not a reliable indicator of future performance |
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