Private credit under fire | the advisory

Описание: Andrew Wilson from Pitcher Partners addresses concerns raised by ASIC over private credit funds in Australia, highlighting the findings of fee gouging, poor risk management, and lack of transparency within the sector. Wilson notes a broad spectrum of expertise among private credit fund managers, emphasising that some operators demonstrate robust governance and transparency, while others fail to meet ASIC's expectations. For Pitcher Partners, engagement is limited to a select few managers with established records and reliable processes, reducing the potential impact of regulatory critique.

On changes to superannuation, Wilson sees positive developments in reorienting tax proposals to focus on realised gains rather than unrealised capital gains. However, he remains cautious about the finer details, particularly definitions around realised earnings and the treatment of franking credits and losses. Examining current investment strategy, Wilson points to moderate economic growth in Australia, stable employment, and the Reserve Bank’s decision to leave rates on hold.

He advises a diversified portfolio that avoids over-reliance on interest rate movements, favouring assets with robust earnings and selective exposure in both equities and fixed income. In global markets, Wilson supports holdings like Alphabet ($GOOGL), Microsoft ($MSFT), Nvidia ($NVDA), ING ($ING), Eli Lilly ($LLY), and Visa ($V) while advocating for diversification into unlisted infrastructure and alternative assets.