Our Credit Income portfolio
Our Credit Income sector invests globally in loans and bonds, including private credit. These investments can play an important role in helping support steady income and adding diversification to our portfolio.
What is private credit?
Private credit is simply another way of lending money – instead of banks or public market investors doing the lending, super funds, like Aware Super, and other investment managers lend directly to businesses, helping them access capital when traditional funding options may not be available.
For members this means:
Supporting businesses by providing funding directly to companies when banks can’t or won’t lend, helping them to grow, invest and create jobs, while delivering returns for members.
Since private credit is lending money directly to borrowers rather than investing as shareholders, members will earn regular interest income and benefit from greater downside protection when compared to investments in shares.
Access to a wide range of leading global businesses across sectors such as healthcare, software, industrials and consumer products, many of which are not accessible through listed shares, helping diversify members’ investments.
Investing in a type of debt, similar to bonds or other fixed income investments. It pays regular income and interest rates are typically variable rather than fixed. This can help protect returns when inflation and interest rates rise.
Some of our portfolio is managed by specialist external investment managers who invest in Australia and internationally. We also lend directly to businesses in Australia and New Zealand, and our team actively manages these investments.
See a list of the Investment Managers we partner with.
Where returns could come from
Returns from private credit typically come from:
- Regular interest payments made by businesses over the life of the loan
- The repayment of the original loan amount when the loan ends
Private credit investments aim to deliver stable, steady income, while also helping protect members’ capital. Because lenders are generally paid back before shareholders if a company runs into trouble, private credit is considered less risky than shares and is often described as a defensive investment.
Private market investments, like private credit, can help diversify a portfolio. They can provide stability and help smooth returns during periods when listed markets, like the share market, are more volatile.
Harris Farm Markets is a well-known, family-owned fresh fruit and grocery chain that’s been bringing fresh food to communities since 1971. With more than 30 stores in NSW, Queensland and the ACT, it sells a wide range of quality fruit and vegetables as well as cheese, bread, meat and everyday groceries.
Kinetic is the largest bus operator in Australasia and a leading multi-modal mass transit operator globally through its subsidiary Go-Ahead.
Across Australia and New Zealand, Kinetic keeps communities moving – from the bus services that local communities rely on every day, to operations across some of the region's busiest airports, to the iconic SkyBus Express that has been part of Melbourne's transport landscape for close to 50 years. With a strong focus on sustainability and innovation, Kinetic is leading the transition to electric buses, helping deliver cleaner, more efficient travel for the future.
NewCold is a global leader in automated cold storage and logistics, supporting major food producers around the world. Its highly automated, energy efficient warehouses provide reliable end-to-end cold chain solutions to help keep food fresh, safe and moving efficiently.
SCT Logistics runs rail and road freight services across Australia, connecting ports, cities, and regional hubs. Since 1974, SCT has helped keep goods moving across the country for businesses and communities nationwide.
AirTrunk is a leading hyperscale data centre platform across Asia-Pacific and the Middle East. It designs and builds the digital infrastructure that powers the modern world: large scale, energy efficient data centres that enable cloud, AI and enterprise systems that people and businesses rely on everyday.
The Entertainment and Education (TEEG) is the company behind some of Australia’s most popular family entertainment destinations including Timezone, Kingpin and Zone Bowling. With over 300 venues across Australia, New Zealand and Asia, TEEG is where millions of families go to bowl, play and spend time together.
Where to next?
Super is a long-term investment for your future. Understanding how investments work can help you make better investment choices.
You can switch your investment options at any time. There is no charge for switching investment options.
We can help you with questions about how to get the most out of your super. You can also pay for financial advice tailored to your specific needs.