Harbour Asset Management has rolled out a second portfolio investment entity (PIE) fund under the Hunter banner in a strategy plying the Australasian private credit markets.
The launch of the Hunter Private Credit Fund comes amid growing demand – and competition – in the asset class both globally and in NZ.
In a statement, Harbour says: “NZ investors have typically found it difficult to access private markets, but we are seeing some positive developments across the market which are starting to provide investors with more options. We are happy to be part of that change.”
The Hunter private credit fund release comes, too, amid moves afoot to ease access to the asset class for KiwiSaver investors.
Simon Pannett, Harbour senior credit analyst, serves as portfolio manager for the new Hunter vehicle, building on his seven-year experience running a private debt allocation within the firm’s broader income strategy.
Pannett and senior portfolio specialist, Tony Hildyard, “have been engaging with investors for the past year to ensure we are building a fund which meets the needs of a wide range of investors in terms of risk profile, diversification and liquidity”, the statement says.
“The Hunter Private Credit PIE will provide investors with exposure to a mix of directly originated lending and lending via third-party specialist managers, providing investors with a diversified exposure to Australasian private credit opportunities.”
Harbour says the new Hunter strategy “is designed to provide access to private credit opportunities with an attractive return profile, and take advantage of the relatively under-developed nature of the Australasian market when compared to global private credit markets”. “The Fund contains predominantly floating rate and secured investments, and provides an avenue for investors to diversify into sectors not usually available in local bond markets.”
Targeting gross annual returns of 4 per cent above the NZ official cash rate over a rolling three-year period, the new fund will tap into “bilateral lending to small-to-medium sized enterprises, leveraged loans, asset-backed lending and business equipment receivables” mostly in Australia and NZ.
However, the investment brief could extend into “international private credit and Australasian public bond markets” under “favourable” circumstances.
According to the product disclosure statement, the strategy clocks in at a 2 on the regulatory standard risk scale that tops out at 7 – implying a relatively low-risk approach.
Priced at 0.83 per cent, the new Hunter fund offers monthly redemptions while targeting quarterly distributions.
Guardian Trust is supervisor and custodian (delegating global custody to JP Morgan) with Apex providing administration. The Hunter private credit fund officially opens to investors on February 28.
Hunter – a brand Harbour acquired in a 2021 deal with Implemented Investment Solutions (now part of Apex) and co-founder, Hildyard – previously offered only a global fixed income PIE managed by the world’s largest active bond manager, PIMCO.
Harbour now includes the former BNZ Investment business following the creation of the FirstCape conglomerate last year in a joint venture comprising National Australia Bank, Pacific Equity Partners and Jarden.
FirstCape combines the NZ wealth management brands of Jarden and JBWere and the Harbour investment arm.