Ares Australia Management has launched its first Australian product, the Ares Global Credit Income Fund.
The fund will provide investors with a flexible and dynamic investment plan that will allow them to adapt to changing markets.
The company is keen to invest in credit issuers with highly diversified portfolios and stable income.
Ares Australia Management (“AAM”), a joint venture between Fidante Partners and Ares Management Corporation (NYSE: ARES), has launched its first product in Australia, the Ares Global Credit Income Fund.
AAM developed the fund in response to a growing demand for an investment approach that provides high income generation while preserving capital, particularly in these uncertain times when many companies continue to report low returns.
Teiki Benveniste, Chief Executive Officer of Ares Australia, pointed out that in the low interest, uncertain and volatile environment we are currently experiencing, investors are looking to find reliable sources of income without the risk of losing capital while maintaining a balanced portfolio.
“In Australia, many investors seeking higher income levels have invested in Australian bank capital or hybrid securities in the past. Fixed income investments also have significant exposure to banks and structured products backed by local mortgages. The Ares Global Credit Income Fund seeks to meet this need for higher income and diversification in other ways,” Benveniste noted.
According to AAM, the fund offers investors a dynamic and flexible investment strategy that allows them to adapt to changing markets.
For more than two decades, Ares has offered investors risk-adjusted returns over multiple cycles with stable performance in the event of market disruptions. The Company’s portfolio managers in the United States and the United Kingdom have an average of more than 20 years experience in managing and underwriting the fund’s investable asset class, including securities (asset-backed), bank loans and corporate loans.
The Ares Fund will have an annual target distribution ratio of 3% to 4%, to be issued monthly. With a keen eye on generating stable returns, Ares seeks to invest in credit issuers with highly diversified portfolios.
Ares currently employs at least 1,200 people worldwide with over £120 billion of assets under management. According to Benveniste, the company boasts a leading and award-winning platform that manages investments in credit and other alternative asset classes. David Sachs, a partner in the Strategy and Relationship Management Group at Ares Management Corporation, said: “Our proven investment process with a focus on capital preservation has also delivered a historically low default rate. In corporate bonds and bank debt, Ares’ strategies have proven resilient to the wider market during periods of stress”.