Private credit is next big wager for pension funds


Different route: AustralianSuper chief executive officer Paul Schroder during an interview in New York. The Melbourne firm boosted its investment mandate with Churchill Asset and is now exploring other avenues such as private equity instead. — Bloomberg

SYDNEY: Australia’s biggest pension funds are losing their appetite for bonds as interest rates peak and are instead ramping up bets on a potentially riskier avenue of higher returns: private credit.

Cbus, which has A$90bil (US$59bil) in total assets, is planning to triple its global allocation to private credit over the next 18 months, while A$104bil Hostplus is looking to add to its already record holdings of the asset class.

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