As investors contend with record low rates and significant cuts to shareholder dividends, savvy managers are creating investment solutions that meet the dual investor needs of income and capital stability. One emerging alternative that seeks to meet both these requirements is private credit, where the manager originates and lends directly to Australian corporates, with interest and fees paid by borrowers delivering the returns for investors.
With over 30 years’ market experience in direct lending and in excess of $5 billion under management, Metrics Credit Partners is a leader in this sector and has just launched the Metrics Direct Income Fund. This fund, available to retail investors, is an unlisted equivalent of the successful MCP Master Income Trust (MXT) and is underpinned by the hallmarks of Metrics’ investment process: direct origination of lending transactions with a clear focus on credit risk management.
The Metrics Direct Income Fund seeks to generate monthly cash income, with reduced capital volatility, through its investment in well diversified portfolios of loans to Australian companies. It targets a minimum return of 3.25% above the RBA cash rate and has already obtained ratings of Highly Recommended from Zenith and Superior from Australian Ratings.
To find out more about this attractive investment alternative visit https://metrics.com.au/funding-solutions/metrics-direct-income-fund/ and download a copy of the PDS to determine if it’s the right opportunity for you.