Credit and Fixed Income

Benefit from investments that can deliver capital stability, income and liquidity by investing with one of Australia’s leading credit and fixed income managers.

At Perpetual we offer a range of cash, credit and fixed income solutions and are specialists in investing in quality debt. We take a highly active approach to buying and selling credit and fixed income securities and invest extensively across industries, maturities and the capital structure.

We aim to create well-diversified and highly liquid portfolios that perform well across market cycles. We focus on generating income and seek to avoid losses so that portfolio returns are stable.

While some fixed income securities can move in the same direction as share markets, our prudent risk aware approach seeks to provide the defensive attributes investors expect from fixed income – such as high levels of capital security, consistent income, liquidity and a low correlation to shares.


Making sense of the fixed income landscape

Fixed income in a portfolio can provide liquidity, regular income and diversify away from equity risk. Essentially, fixed income assets should provide some certainty and predictability, which can be the defensive anchor of a portfolio.

Why invest in credit and fixed income?

  • Improve the predictability of your portfolio

  • ATTRACTIVE RISK-ADJUSTED RETURNS

  • Income

  • Low correlation to shares

Why Perpetual?

Predictable outcomes

We focus our portfolio on delivering predictable outcomes - capital stability, regular income, and liquidity. These are characteristics that investors generally seek from ‘defensive’ asset classes.

Risk Aware

We will only add risk to our portfolios when we expect it will be sufficiently rewarded. This ensures that the defensive qualities of our portfolios are not compromised.

Stable and experienced team

Perpetual’s experienced credit and fixed income team have delivered through different market cycles, with the senior portfolio managers working together for over a decade. Our current capability set has been built on a strong foundation, with Perpetual managing debt-like portfolios since 1966.

Active trading of quality assets

Perpetual’s approach is to actively manage good quality credit and fixed income assets. Quality assets tend to be more liquid, have lower transaction costs, are issued in greater volume, and are more likely to experience spread contraction as they approach maturity. An active risk aware approach can help to add value for investors across the less transparent fixed income markets.


Investment Philosophy and Approach

At Perpetual, we believe that within a diversified portfolio, credit and fixed income investments are typically used to provide defensive characteristics. This belief drives the key elements of our investment philosophy:

  • It is necessary to actively trade credit and fixed income securities to take advantage of the full range of investment opportunities and extract maximum value
  • Credit is a highly repeatable and sustainable way to add value in fixed income markets
  • Strategic duration setting is key, with tactical adjustments most effective at meaningful dislocations
  • Invest in quality and value securities
  • It is imperative to understand and price risks, and invest in opportunities where risk is best rewarded

What are the risks?

All investments carry risk. While it is not possible to identify every risk relevant to your investment, we have provided details of the risks that may affect your investment in the relevant product disclosure statement (PDS) or offer document.

You can find PDSs and other documents in our resources section. The relevant PDS, offer documents and forms can also be found in the sections below:


> Investments | > Superannuation | > Retirement

Credit and Fixed Income Investment Team

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