Leading alternative credit manager CIP Asset Management (CIPAM) has had the rating of its Credit Income Fund – Class A upgraded to Highly Recommended by Lonsec.
The CIPAM Credit Income Fund (Fund) is a floating rate, multi-sector credit strategy which invests mostly in investment grade opportunities. It is unique in the Australian marketplace as it invests in both public and private debt markets, while managing for monthly rather than daily liquidity.
The Fund aims to provide investors with capital stability and stable income generation without speculating on more volatile interest rate or currency risks. It aims to outperform the Bloomberg AusBond Bank Bill Index by 3% per annum after fees, over the medium to long term.
In its latest product review Lonsec highlighted CIPAM’s favourable heritage in public and private credit markets and the manner in which it is able to use its established platform and scale to source domestic investment opportunities for investors.
Lonsec noted the breadth and depth of resources at CIPAM, calling out the dual-track process between the investment team and separate credit risk function who separately review investments. They cited how the separate credit risk team strengthens the offering, providing, “extra rigour into research, deal structuring and oversight” and differentiates CIPAM relative to many peers.
Lonsec also called out that the evidence of ESG integration within the investment process for the Fund was significant relative to peers in the sector. They stated CIPAM had a “well structured approach to the collection and use of ESG specific data.”
CIPAM Fixed Income team’s Head of Investment Strategy, Pete Robinson, who is also the Fund’s Portfolio Manager said they were delighted with Lonsec’s assessment of the value of its credit strategy and the robustness of its processes.
“This is not an off-the-shelf-credit fund, it is carefully designed to achieve the best possible returns without compromising on risk. The opportunities targeted by the Credit Income Fund have historically been the domain of institutional investors and it’s great we can make them available to retail investors, especially when quality income is so hard to find. The Highly Recommended rating from Lonsec will help us continue the journey of educating a broader universe of investors on the attractive opportunities in less liquid credit markets.”
“We have one of the longest track records in Australian private lending markets and our team is uniquely positioned to exploit opportunities across both public and private lending markets,” Mr Robinson said.