Disclaimer
BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.
What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
who holds an Australian Financial Services License
who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
that is a body regulated by APRA other than a trustee of:
(i) a superannuation fund;
(ii) an approved deposit fund;
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme.
within the meaning of the Superannuation Industry (Supervision) Act 1993that is a body registered under the Financial Corporations Act 1974.
that is a trustee of:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme
within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.that is a listed entity or a related body corporate of a listed entity
that is an exempt public authority
that is a body corporate, or an unincorporated body, that:
(i) carries on a business of investment in financial products, interests in land or other investments; and
(ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
Fixed income
Credit income
Credit income refers to the return generated from investing in credit instruments, such as corporate bonds, government bonds, and other fixed income securities. It typically comes from two main sources: coupon payments (interest paid by the issuer) and potential capital appreciation from price movements in the bonds.
Key Characteristics
Income generation: Credit income provides regular interest payments, making it a key component of income-focused investment strategies.
Variety of credit instruments: Investors can generate credit income through a broad range of fixed income securities, including investment grade bonds, high yield bonds, and hybrid instruments like CoCo bonds.
Risk-return balance: Credit income strategies can be tailored to match an investor's risk tolerance, from stable investment grade bonds to higher yield opportunities in lower-rated securities.
Credit income plays a vital role in diversified portfolios:
Steady cash flow: It provides a predictable income stream, especially valuable in low-interest-rate environments.
Portfolio stability: Bonds and other credit instruments can help stabilize portfolios by offsetting the volatility of equity markets.
Yield enhancement: By taking on appropriate levels of credit risk, investors can enhance their portfolio's yield.
A long history of innovation
Who Invests in credit income?
Credit income strategies are popular among income-focused investors, who prioritize regular cash flow and capital preservation. Active managers also seek opportunities in credit markets to capture additional yield and benefit from market inefficiencies.
