HIGH INCOME FUND
The objective of the Barwon Global High Income Fund is to generate a high level of current income (8% p.a.) with the potential for long-term capital growth (1-2% p.a.). The Fund’s trailing 12 month underlying distribution yield is 9.0%.
The Fund provides exposure to an actively managed portfolio of publicly traded private debt funds. The Fund’s core investments are funds that make direct, hold-to-maturity loans to middle-market businesses, infrastructure projects, commercial properties or more specialist niche sectors such as venture capital. This exposure to private debt is predominately achieved through investments in:
- US listed Business Development Companies (BDCs).
- Commercial Mortgage Real Estate Investment Trusts.
- Specialist closed-end credit funds.
The Fund typically invests in 15-25 securities at any one time, seeking the best opportunities from the investment universe while ensuring a strong current distribution yield.
The Fund offers exposure to an alternate source of income and is diversified by geography, industry and underlying credit.
Launched in 2014, the Fund has returned 9.9% per annum since inception (to August 31, 2019).
Key Fund Facts
- Access to a liquid, global portfolio of private debt funds offering an attractive high yield.
- Diversified sources of income.
- Quarterly income distributions.
- Open-ended Australian domiciled unit trust. Soon to launch UCITS fund.
Compared to traditional yielding investments such as high yield bonds, REITs and utilities, private debt typically offers higher income with lower levels of correlation.
Barwon has recently published (September 2019) a research paper on the Investment Case for Global Listed Private Debt. If you would like to download a copy of the report, please click here.