Private Credit Lures $100 Billion Fund Seeing Sticky Inflation
- Pensions and wealth manager CFS sees price pressures lingering
- CIO Armitage sees better returns in asset class than property
A couple view the Sydney Opera House and city skyline in Sydney, Australia.
Photographer: Sergio Dionisio/Bloomberg
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Colonial First State, which manages A$151 billion ($100 billion) of Australian pension and wealth assets, plans to add billions in private credit deals as it sees interest rates staying elevated for longer.
CFS will boost its private credit allocation to an average of about 3% across its portfolio, Chief Investment Officer Jonathan Armitage said in an interview. The change will happen gradually over a couple of years and marks a shift from its historically low exposure of less than 1% to the asset class.