ASX-listed Australian Bond Exchange Holdings Limited and the Boston Global Group have created a new fund — the Australian Credit Opportunities Fund.
In a statement, ABE said it is a new wholesale, unregistered, and open-ended pooled investment unit trust formed to provide wholesale and sophisticated investors with exposure to fixed-income securities and credit opportunities.
The Investment Manager will acquire fixed-income securities including corporate bonds, inflation-linked securities, mortgage-backed securities, and other money market (non-government) instruments as it seeks to deliver a benchmark performance hurdle rate of RBA + 3.5%.
The Fund intends to directly acquire fixed-income securities from Australian issuers and provide indirect exposure to fixed-income securities from non-Australian issuers.
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ABE said that foreign exchange exposure will be managed using deferred purchase agreements (DPAs) and/or credit instruments issued by financial institutions that pay Australian dollar-denominated returns equivalent to those that would have been payable had the specified debt securities been directly acquired.
ABE said that the Investment Manager will begin acquiring fixed-income products once the fund raises its first AUD$5 million.
