Andrew Lockhart on protecting your portfolio with private debt
At the Pinnacle Investment Summit 2022, Metrics Managing Partner, Andrew Lockhart presented a compelling case on private debt and explained how short-dated loans with floating interest rates, paid by borrowers, impacts an investors’ risk and the returns of the asset class. Andrew also outlined why such features are particularly appealing in an environment of rising interest rates and inflation and how investors can access the investment opportunity.
You can watch the full presentation by clicking on the video player below.
0.18 – Introduction
0:59 – Structural protections for private debt in Australia
3:23 – The role of financial contracts
4:19 – Capital stability in changing market conditions
6:25 – Growing income from rising rates
7:51 – The importance of good relationships with borrowers
9:44 – The advantages of scale, diversification and experience
11:01 – Public market volatility versus private market stability
14:00 – Metrics range of funds for wholesale and retail clients
This document has been prepared by Metrics Credit Partners AFSL 416146 (Metrics) on a confidential basis for distribution only to professional and sophisticated investors in Australia whose ordinary business is to buy or sell investments of the type described in this document in circumstances where disclosure is not required to be made to investors under the Corporations Act 2001 (Cth) (“Corporations Act”). All content in respect of the Metrics Direct Income Fund (MDIF) (ARSN 641 620 331) is issued by Equity Trustees Limited ACN 004 031 298; AFSL 240975 (EQT). All content in respect of the Metrics Master Income Trust (MXT) (ARSN 620 465 090) and the Metrics Income Opportunities Trust (MOT) (ARSN 631 320 628) is issued by The Trust Company (RE Services) Limited (ABN 45 003 278 831) (AFSL 235 150) as the responsible entity of MXT or MOT as applicable. It is not intended for, and should not be distributed to, any other person and it must not be distributed to any person who is a retail client for the purpose of the Corporations Act or to any person outside of Australia. This document is not a Product Disclosure Statement or Prospectus required to be lodged with the Australian Securities and Investments Commission in accordance with the Corporations Act and it does not contain all of the information that such a Product Disclosure Statement or Prospectus is required to contain or that an offer document for the products described herein would contain. It is not an offer of interests in respect of any financial product.
An investment in a Fund is subject to investment risk. It is not a deposit with, nor does it represent a liability of the trustee or responsible entity of such Fund (the “Trustee”), Metrics or any other person. None of the Trustee of a Fund, Metrics, its related bodies corporate or any other person guarantees the capital value or performance of the investment of any Fund or guarantees any particular return from a Fund, increase in the value of any amount invested in a Fund or repayment of any amount invested in a Fund.
Andrew Lockhart, Managing Partner at Metrics Credit Partners, provided insights into the opportunity and outlook for Australian private debt in…