A flexible approach to income without interest rate risk

In a market where duration and volatility often dominate headlines, Pete Robinson says the Challenger IM Credit Income Fund is designed to do something simple; deliver high, stable income without exposing investors to interest rate or currency risk.

“We’re aiming for cash plus 3% after fees, and we want to do it consistently,” says Robinson.

The strategy blends public and private credit investments, giving the team flexibility to adapt across market cycles. While private markets tend to offer a long-term illiquidity premium, Robinson notes that the best opportunities often arise when volatility hits public markets.

The fund’s edge, he argues, lies in this flexibility, and in keeping the loans short.

“We call it the KISS principle – keep it short. Loans are generally repaid in about three years, which limits our market risk.”

Another distinguishing feature is liquidity. While private credit is often locked up for years, Challenger IM offers monthly redemptions, with a 10% fund-level gate to manage inflows and outflows smoothly.

With more than 40 investment professionals supporting the strategy, Robinson says the fund is well-resourced to originate, structure and monitor deals with discipline. For income-focused investors looking for capital stability and downside protection, he believes the combination of short duration and credit flexibility makes a compelling case.

Consistent income through cycles

Robinson isn’t interested in timing markets. He’s focused on something far more dependable: delivering stable, high income through credit, without taking unnecessary risk.

The Challenger IM Credit Income Fund aims to return the RBA cash rate plus 3% per annum after fees, with minimal sensitivity to interest rate moves or currency swings.

“This is a floating-rate portfolio. So, we’re not exposed to duration, and we’re not trying to be macro forecasters,” Robinson explains.

Instead, the strategy focuses on short-dated credit, including both public and private loans, with a typical duration of around three years or less. This gives the team the ability to rotate capital quickly, reduce credit risk, and take advantage of changing market conditions.

Short-term credit, long-term discipline

The portfolio blends exposure to asset-backed finance, direct corporate lending, and real estate credit. There’s a common thread, though: predictable returns and capital stability.

“We charge a higher interest rate, so borrowers have a strong incentive to refinance early,” Robinson says. 

“That naturally shortens our exposure and gives us regular reinvestment opportunities.”

This short-term structure means the fund isn’t locked into positions when credit spreads widen or macro conditions shift. In fact, Robinson views volatility in public markets as an opportunity.

“You can wait for the right moments. Often the best trades come when markets dislocate. That’s when we lean into public credit,” he says.

The liquidity edge: private markets with access

One of the standout features of the fund is its liquidity. While many private credit funds require lockups of five or even seven years, Challenger IM’s fund offers monthly liquidity, with a 10% fund-level gate to manage redemptions.

“We’re not using leverage. And the liquidity is real – it’s backed by a portfolio that’s designed to turn over quickly,” Robinson explains.

This gives income-focused investors the ability to participate in private market returns without sacrificing all flexibility. It also provides a level of transparency and access that many direct lending strategies lack.

Built for income, not yield chasing

Robinson is clear that this isn’t a high-yield strategy in the traditional sense. The focus is on consistent, risk-adjusted income, not just finding the highest-paying opportunities.

“We want investors to understand what they’re getting, and to be confident that we’re doing the hard work behind the scenes to preserve their capital.”

That hard work involves extensive due diligence, structuring, and monitoring. The fund is supported by a team of more than 40 investment professionals with deep experience across the Australian and global credit markets, covering origination, risk management, legal, and servicing.

Why now?

Credit spreads have normalised, and interest rates are no longer at historic lows. That, Robinson argues, is a more attractive setup for credit investors, especially those looking for income without duration risk.

“We’ve moved back to a market where fundamentals matter,” he says. “If you’ve got a disciplined process, and you’re selective, you can build a very attractive income stream.”

For investors seeking income with liquidity, downside protection, and access to private-market opportunities, the Challenger IM Credit Income Fund offers a differentiated approach. In a market still grappling with uncertainty, it’s a strategy built on short-term loans, long-term thinking, and consistent results.

Managed Fund

Challenger IM Credit Income Fund

Australian Fixed Income

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