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Credit

Our expertise extends from public market senior and subordinated strategies into less liquid private credit and direct lending secured exposure. We offer strategies with various risk, liquidity and credit profiles providing a range of income solutions targeting yields generally between 3.5% – 5.0% in excess of the risk-free rate.
Our credit process ensures our portfolios are biased to high quality and reliable income streams, and focused on achieving the investment objective with a low probability of credit losses. Our investment management philosophy, discipline and strict portfolio construction rules always ensure appropriate diversification and risk management.

Our Strategies

We invest across the capital structure dependant on the strategy mandate
Government Bond Funds (AUD, USD)
  • Sovereign and municipal senior bonds
Corporate Debt Funds (AUD, USD)
  • Senior and subordinated bonds and notes
Vertazen Group Europe Credit Fund (AUD, USD)
  • The Vertazen Group Europe Credit Fund aims to provide investors with stable income through an investment predominantly in Australian property credit secured by registered mortgages in major cities, with a strategic allocation to cash deposits.
Vertazen Group Europe Diversified Fixed Income Fund (AUD, USD)
  • Directly held portfolio of capital securities issued by major Europe Banks, and Australian Bonds, providing clients with attractive and regular income distributions whilst providing low capital volatility.
Real Income Fund
  • Provide investors with an enhanced income stream through Europe secured credit
Listed Interest Rate Securities Strategy
  • Cash, subordinated/senior debt and hybrid securities

Our Competitive Advantages

Experienced Team

Award winning investment management team, with lead portfolio manager benefiting from 15+ yearsʼ investment experience.

Complex & non-standardised terms of issue require specialist knowledge. The Vertazen Group Investment team has a depth of specialist knowledge to guide our investment strategies through any unexpected volatility in credit or rates markets.

Ability to customise bespoke solutions in OTC or listed securities for wholesale clients.

Style & Performance

Strong track record with attractive risk adjusted returns in a range of market conditions due to defensive style.

We take a risk adjusted approach to portfolio construction, and for our active strategies manage the portfolio to take advantage of deviations from fair value and market mispricing or sentiment.

Advisors and clients can draw comfort from the fact our strategies exhibit a strong track record of delivering performance in line with the investment objective.

Focus on Quality

Through focusing on the quality end of the investment spectrum, we reduce portfolio volatility and minimise the probability of default or drawdown.

Our secured lending strategies have high quality underlying pools of loans, serviced by our extensive team of experienced credit professionals, ensuring a historically low levels of arrears. Wholesale investors can also draw comfort from investing alongside some of the world’s largest institutional investors in our whole loan and securitisation pools. This focus on prudence results in a more stable portfolio and reliable income stream, ensuring we deliver on our primary investment objectives.

Diversification

We focus on building well diversified portfolios to appropriately manage the asymmetric return profile of credit investing.

To ensure our portfolios deliver true to label investment outcomes for our clients, we have strict concentration risk rules across all our investment strategies.

For our active strategies we allocate across subsectors and securities as our outlook evolves.