Ares Australia Management sets up its first alternative investment fund

By: Auther Bett
Auther Bett
Auther V. Bett, CPA started reporting in the finance and accounting space in 2016. His interests span stocks, bonds,… read more.
on May 13, 2020
  • Ares Australia Management has launched its first Australian product, the Ares Global Credit Income Fund.
  • The fund will offer its investors a flexible and dynamic investment plan meant to navigate shifting markets.
  • The firm is keen on investing in credit issuers with highly diversified portfolios and stable incomes.

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 owing to a growing demand for an investment approach that offers high-income generation while preserving capital especially during these uncertain times when many businesses continue to register low returns.

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Teiki Benveniste, Ares Australia Management Head indicated that in a low interest, uncertain and volatile environment as the one being experienced now, investors are keen on finding reliable sources of income without the risk of losing capital, while maintaining a well-balanced portfolio.

“In Australia, a lot of investors looking for higher levels of income have historically invested in Australian bank equity or hybrid securities. 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 a different way,” Benveniste noted.

The Fund, according to AAM, offers investors a dynamic and flexible investment strategy meant to navigate shifting markets.

For more than two decades now, Ares has provided risk-adjusted returns to its investors through multiple cycles, with stable performances during market disruptions. On average, the firm’s US and UK portfolio managers’ expertise spans more than 20 years, with a proven track record in managing and underwriting the Fund’s investable class of assets including securities (asset-backed), bank loans, and corporate loans.

The Ares Fund will have an annual target distribution rate of 3% to 4% issued monthly. With a keen eye on generating stable income, Ares is looking to invest in credit issuers with highly diversified portfolios.

Ares currently maintains at least 1,200 staff members worldwide with more than £120 billion worth of assets under management. The firm boasts of leading and an award-winning platform managing investments in the credit space as well as other alternative asset classes, according to Benveniste. David Sachs, Partner in Ares Management Corporation’s Strategy and Relationship Management Group indicated: “Our time-tested investment process with a focus on capital preservation has also delivered a low historical default rate. In corporate bonds and bank loans, Ares’ strategies have shown resilience in times of stress versus the broader market.”

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