Michael Korber
The Perpetual Pure Credit Alpha Fund (Fund) has received a ratings upgrade to ‘Recommended’[1] from Zenith Investment Partners (Zenith) in recognition of its strong strategy and experienced team[2],[3].
Zenith’s confidence is underpinned by the team’s expertise and strong leadership under Perpetual Investment’s Head of Credit & Fixed Income, Michael Korber. Zenith considers Mr Korber to be one of the more experienced fund managers in the credit space.
As at 31 April 2017, the Perpetual Pure Credit Alpha Fund returned 7.52% p.a. (after fees) exceeding the RBA Cash Rate benchmark of 2.46% p.a. since inception[4]. The fund aims to outperform the Cash Rate by 3% p.a. to 5% p.a. over rolling three-year periods.
The Fund leverages Perpetual’s 20 years of success in active asset allocation, and is managed by a six-person investment team with an average of 20 years’ industry experience.
“Credit continues to play a key role in an investment portfolio regardless of the market environment, but particularly for those investors seeking diversification and income generation,” Mr Korber said.
The Fund utilises a flexible barbell approach combining investment grade credit with high yielding securities, allowing the team to use a number of strategies in response to market changes and capitalise on opportunities in the physical and synthetic markets.
“Our unique Core/Plus strategy for the Pure Credit Alpha Fund allows investors to access higher returns with managed risk.”
“The inclusion of high yield products in the portfolio, including leveraged loans, sub-investment grade bonds and asset backed securities, drives returns through the market cycle. At the same time, the Core assets underpin the Fund’s capital stability.”
“In a low return environment, using a pure credit alpha approach provides the income investors are looking for while focusing on capital preservation,” Mr Korber said.