Private credit is often valued for its income potential, but Perpetual’s Michael Murphy says risk discipline matters just as much as return.

In this video podcast, Michael explains why the team avoids direct property and development lending, instead focusing on senior secured debt from large, established Australian corporates.

He shares why understanding a borrower’s quality, sector risks and downside protection is critical in private credit, and why knowing what not to own can play a key role in preserving capital.

Here's an excerpt from the podcast:

“We're very mindful that investors typically have significant exposure to Australian property already, either through direct investment or exposure to Australian banks.

“So we really see value in providing diversification to large corporates rather than to property developer lending, which we don't do.

"And within that, we want to be really diversified across a number of sectors and not have a real concentration to anyone sector or risk factor.

"We think that's really important."

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Find out more about Perpetual's credit and fixed income strategies

Find out more at Perpetual.com.au

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This podcast has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535 AFSL 234426.
 
It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.
 
The product disclosure statement (PDS) for the relevant Perpetual Credit & Fixed Income Fund (Fund), issued by PIML, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The relevant PDS and Target Market Determination can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au.
 
References to securities in this video are for illustrative purposes only and are not recommendations, and the securities may or may not be currently held by the Fund. Past performance is not indicative of future performance.
 
This podcast may contain forward looking statements or projections. Any such statements are based on PIML’s current expectations and assumptions about future events. They may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. Actual results may differ materially from these projections. Forward looking statements are not representations about future performance and should not be relied upon as such.
 
This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PIML does not warrant the accuracy or completeness of any information provided by a third party.
 
To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. All investing involves risk including the possible loss of principal. Past performance is not indicative of future performance.

Private credit is often valued for its income potential, but Perpetual&rsquo;s Michael Murphy says risk discipline matters just as much as return.
In this video podcast, Michael explains why the team avoids direct property and development lending, instead focusing on senior secured debt from large, established Australian corporates.
He shares why understanding a borrower&rsquo;s quality, sector risks and downside protection is critical in private credit, and why knowing what not to own can play a key role in preserving capital.
Here's an excerpt from the podcast:
&ldquo;We're very mindful that investors typically have significant exposure to Australian property already, either through direct investment or exposure to Australian banks.
&ldquo;So we really see value in providing diversification to large corporates rather than to property developer lending, which we don't do.
"And within that, we want to be really diversified across a number of sectors and not have a real concentration to anyone sector or risk factor.
"We think that's really important."
--//-- Find out more about Perpetual's <a href="https://www.perpetual.com.au/asset-management/credit-and-fixed-income/">credit and fixed income strategies</a>
Find out more at <a href="https://www.perpetual.com.au/">Perpetual.com.au</a>
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This podcast has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535 AFSL 234426. &nbsp; It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice. &nbsp; The product disclosure statement (PDS) for the relevant Perpetual Credit &amp; Fixed Income Fund (Fund), issued by PIML, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The relevant PDS and Target Market Determination can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au. &nbsp; References to securities in this video are for illustrative purposes only and are not recommendations, and the securities may or may not be currently held by the Fund. Past performance is not indicative of future performance. &nbsp; This podcast may contain forward looking statements or projections. Any such statements are based on PIML&rsquo;s current expectations and assumptions about future events. They may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. Actual results may differ materially from these projections. Forward looking statements are not representations about future performance and should not be relied upon as such. &nbsp; This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PIML does not warrant the accuracy or completeness of any information provided by a third party. &nbsp; To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor&rsquo;s capital. All investing involves risk including the possible loss of principal. Past performance is not indicative of future performance.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.