Victor Gugger, Director at Income Asset Management Group (ASX: IAM), outlines the company’s Managed Discretionary Account (MDA) for wholesale investors.
The portfolio allocates around 50% to investment grade corporate bonds and 50% to senior secured syndicated bank loans. Gugger says the structure balances liquidity and stability from bonds with higher yields from loans, with returns currently tracking about 7.5%.
The senior secured loans are originated by major banks and accessed through syndications, allowing IAM to participate alongside institutional lenders. Assets are held in custody, and investors can view their individual holdings.
The product has a $1 million minimum investment and is aimed at high net worth investors and organisations managing large cash balances. Fees include a 50 basis point management fee and a 10 basis point custody fee.
