Press Release: Ares Global Credit Income Fund achieves performance and rating milestones in first year
13 May 2021 – The Ares Global Credit Income Fund (the “Fund”) has capped its first year of availability to Australian investors with 12.13%* returns net of fees and an initial ‘Recommended’ rating from investment research provider Zenith Investment Partners.
The Fund is the first managed by Ares Australia Management, thestrategic joint venture between Ares Management Corporation (Ares), a leading global alternative investment manager, and the Australian-based Fidante Partners, a global investment management and distribution business.
The Fund aims to provide stable monthly income with a focus on downside protection across market cycles by investing in a diversified portfolio of carefully selected corporate and structured credit assets, including U.S. and European corporate bonds, bank loans and alternative credit markets. The Fund seeks to avoid riskier asset classes, such as equities, and to minimise exposure to the more stressed segments of the credit market. In its first year to 3 May 2021 the Fund returned 12.13%* net of fees with total income for the period reaching 10.59%*.
Head of Ares Australia Management, Teiki Benveniste said, “This rating underscores our belief that the ‘sweet spot of credit’, characterised by high-levels of current income and low interest rate duration risk, can offer a solution to Australian investors in search of higher income and diversification.”
Zenith commenced coverage with a Recommended rating as a result of the Fund’s high-quality and well-resourced investment team, structured investment approach, and demonstrated ability to identify relative value opportunities across credit asset classes allowing the Fund to outperform through a broad range of credit markets. The Fund has been included in the International Fixed Interest High Income sector due to the Fund’s investment universe and its higher income focus.
“The Fund’s strategy of investing in high-quality credit instruments is geared toward capital preservation through fundamental credit selection and a flexible approach to capitalise on the most attractive relative value opportunities,” said Samantha Milner, Partner, Portfolio Manager and Head of U.S. Liquid Credit Research in the Ares Credit Group. “We believe that this approach offers greater opportunities for current income and yield versus traditional fixed income and passive strategies, while reducing volatility and default risk through downside protection offered by senior, and often secured, positions in corporate bonds, loans and asset backed securities.”
*As at 3 May 2021. Past performance is not a reliable indicator of future performance.
About Ares Australia Management
Ares Australia Management is an alternative investment manager formed through a strategic joint venture between Ares Management Corporation and Fidante Partners to coordinate marketing and investment management of retail and institutional investor capital from Australia and New Zealand for Ares’ various credit, private equity and real estate strategies. Ares Australia Management aims to provide local investors with access to expertise in credit and other alternative investments to deliver high-quality diversified returns for investors’ portfolios.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, Ares Management’s global platform had approximately $207 billion of assets under management with more than 1,450 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
About Fidante Partners
Fidante Partners forms long term alliances with talented investment teams to support and grow specialist investment management businesses. Through these strategic partnerships, Fidante is able to provide investors with some of the world’s most compelling investment strategies.
Fidante Partners is a global investment management business with approximately A$78.8 billion under management as at 31 March 2021, and is part of the Challenger Limited Group, an ASX-listed investment management firm.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (United States of America), which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission (United States). None of Ares, Ares Australia Management, Challenger Limited or Fidante Partners undertakes any duty to update any forward-looking statements made herein.
Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares, Ares Australia Management, Challenger Limited, Fidante Partners, or an investment fund managed by Ares, Ares Australia Management, Fidante Partners or their respective affiliates.
This media release is provided by Ares Australia Management Pty Limited ABN 51 636 490 732 the investment manager of the Fund and Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 the responsible entity of and issuer of interests in the Ares Diversified Credit Fund. AAM is an Authorised Representative No. 001280423 of Fidante Partners. This media release has been prepared without taking into account any person’s objectives, financial situation, needs or residency. Any person receiving the information in this media release should consider the appropriateness of the information, in light of their own objectives, financial situation or needs before acting on the information. The Fund is only intended for wholesale investors in Australia and is not intended for U.S. persons and is not being offered in the United States or to U.S. persons. Persons receiving this information should obtain and read the Information Memorandum relating to the Fund before making any decision about whether to acquire the Fund. The Information Memorandum can be obtained from the Fidante Partners’ Investor Services team on 13 51 53.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned March 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines.
Ares Australia Management:
Jeremy Kirk
FCR
0466 871 520
j.kirk@fcr.com.au
Ares Management Corporation:
Media:
Mendel Communications
Bill Mendel, 212-397-1030
bill@mendelcommunications.com
Ares Management Corporation
Priscila Roney, 212-808-1185
proney@aresmgmt.com
Brittany Cash, 212-301-0347
bcash@aresmgmt.com
Investors:
Ares Management Corporation
Carl Drake, (888) 818-5298
cdrake@aresmgmt.com
Challenger Limited:
Jane Keeley, +61 4 0266 3522
jkeeley@challenger.com.au
