Close

At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products. 

Discover more
Investment strategies
Insights
Close

Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

Discover more
Investment strategies
Insights
Close

Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

Discover more

Investment strategies

Insights

Close

formerly Realindex Investments

Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

Discover more
Investment strategies
Insights
Close

At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.

Discover more
Investment strategies
Insights
Website experience: Australia Institutional au Contact us Invest with us
Contact us
Invest with us

Sustainable Debt

Sustainable Debt

Here and now: The opportunity in high quality sustainable private debt

We invest in the debt that positively contributes to environmental and social objectives. These loans provide a stream of capital to companies funding sustainable activities, the climate transition and various social objectives.

From renewable energy generation, hydrogen, battery and smart meter innovation, to the development of waste management strategies for a circular economy, through to social objectives such as safe and affordable aged care services – the opportunities in sustainable private debt are significant and varied.

While both public and private sustainable debt markets are growing quickly, private debt can offer opportunities that are not always available in public markets. These can include:

  • Loans are floating rate in nature and move with interest rates, providing better protection against inflation.

  • First ranking security over cash flows and assets.

  • Contractual benefits including restrictions on asset sales, asset purchases, equity distributions etc

  • Access to sectors where access might be limited like renewable and government projects.

The transition to net zero

The International Energy Agency estimates that around US$4.5 trillion in clean energy investment will be required to reach net zero by 2050* – that is a lot of funding that will be in high demand over the coming years.

* September 2023

A lender

There are many benefits to being a lender of debt capital including, but not limited to: cash flow superiority, relatively low cost to access and the large market demand for debt funding.

An experienced team

We have over 20 years of investing experience in the debt space. Due to their longstanding commercial relationships and assets under management, our team are able to gain access to these assets, which are typically difficult to source.

Responsible investment

Our corporate responsble investment strategy is based upon three strategic pillars of quality, stewardship and engagement.

Our Sustainable private debt capability targets debt investment opportunities that contribute to an environmental or social objective.

The Environmental, Social and Governance (ESG) assessment is an important part of the credit research process and influences the internal credit rating (ICR) generated by our credit research analysts. We also apply portfolio restrictions that ensure all investment meet minimum ESG standards.

We believe in a transition to a net zero world; the full cost of carbon is not appropriately reflected in capital market pricing.

Craig Morabito

Senior Portfolio Manager

Funding the assets to shape our future

We invest in assets that positively contribute to the achievement of a variety of environmental and social objectives, all while following good governance practices.

Wind farms

Green buildings

Solar

Smart meters

Why do these assets appeal to investors?

Sustainable private debt assets can help future-proof portfolio objectives in order to manage unsustainable risks, while also taking advantage of the transition to a sustainable global economy and meaningful returns.

Diversification

Provide investors with the opportunity to access assets that are typically not unavailable in public markets, increasing diversification potential.

Returns

Higher risk-adjusted returns due to the liquidity premium paid to the investor, often with lower volatility.

Inflation protection

The floating rate nature of the loans means the interest paid changes in line with interest rates, providing better protection against inflation.

Predictability

Predictable cash flows that can be supported by long-term contractual revenue.

Meet the investment team

Tony Togher

Head of Fixed Income, Short Term Investments and Global Credit

Craig Morabito

Senior Portfolio Manager

Ben Samuel

Portfolio Manager

Ky Van Tang

Co-Lead, Credit Research

Want to know more?

Contact your Relationship Manager

Our capabilities

Performance and documents

Responsible investment

Insights

Who we are

Contact us

Media releases

Sitemap

Important information

Complaints procedure

Supplier Code of Conduct

Privacy notice

Whistleblower

Cookies policy

Financial Services Guide

Statement of Commitment to the FX Global Code

 

First Sentier Investors became a Certified B Corporation in November 2022 with a score = 107.2, noting that the passing score is 80. Please visit the B Corp Directory to view our report and for additional information regarding the assessment process.

Material on this website is intended to provide general information only. This material has been prepared and issued by First Sentier Investors (Australia) IM Ltd (ABN 89 114 194 311, AFSL 289017) (FSI AIM).

This material does not take into account your objectives, financial situation or needs. Before making an investment decision, you should consider the information on this website and the Product Disclosure Statement (PDS) for the relevant fund, issued by either Colonial First State Investments Limited (ABN 98 002 348 352, AFSL 232468) (CFSIL) or The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235150) (Perpetual) and assess whether the fund is appropriate given your objectives, financial situations or needs.

Any opinions expressed in videos are the opinions of the individual participant and are subject to change without notice. Such opinions are: (i) not a recommendation to hold, purchase or sell a particular financial product; (ii) may not include all of the information required to make such a decision in relation to such financial product; and (iii) may substantially differ from other individuals within First Sentier Investors.

Copyright © First Sentier Investors (Australia) Services Pty Ltd 2024, (part of First Sentier Investors, a global asset management business. First Sentier Investors is ultimately owned by Mitsubishi UFJ Financial Group, Inc MUFG).

Loading Contents