PRIVATE INCOME – INFRASTRUCTURE, PRIVATE CREDIT, INCOME OPPORTUNITIES
KEY PORTFOLIO FIGURES
as of June 30, 2021
targeted annual investment pace
FY22 target asset allocation
The Private Income strategy invests in a broad range of strategies covering infrastructure, other private real asset investments (such as timber and hard asset leasing), private credit, opportunistic / distressed credit and other private market investments that provided income generation to the Fund. We target assets and strategies that provide a combination of principal protection, current income (e.g. interest payments or dividends), inflation mitigation and equity upside. We target an absolute return in excess of CPI + 4%, but evaluate each opportunity on the expected return, relative to the risks we are taking.
Private Credit investments are often assetbacked and generate high current income.
The APFC invests through funds into a portfolio of assets that is diversified by strategy, industry and geography. These strategies include: direct lending, mezzanine lending, distressed/opportunistic credit, asset-based lending, and other strategies. While the portfolio is currently focused primarily in the U.S., we evaluate opportunities globally.
The performance target for the Private Income portfolio is a real return of CPI + 4.0%. The life-cycle of Private Infrastructure and Income Opportunities investing, which can be similar in structure to private equity, will in many circumstances contribute to an uneven return profile or J-Curve phenomena for investments early in their respective life-cycle.