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Apollo Asset Backed Credit Trust (AUD)

A globally diversified asset backed credit strategy for income seeking investors.

OverviewFund HighlightsFund at a GlanceSubscribe to Insights

Introducing Apollo Asset Backed Credit Trust (AUD)

Apollo Asset Backed Credit Trust (AUD) (‘the Fund’) is an open-ended, semi-liquid investment solution designed to provide indirect access to high quality asset backed instruments across diverse sectors. With a focus on gaining exposure to directly originated, investment-grade assets, the Fund aims to deliver superior risk-adjusted returns compared to publicly traded credit of similar quality.

The Fund intends to provide Australian and New Zealand eligible investors with indirect access to a diversified portfolio of asset backed credit investments within a single strategy. The Fund intends to gain exposure to a portfolio that is diversified across asset type, geographies, vintages, maturities and capital structures, seeking a balanced and resilient approach to credit investing.

The Fund invests substantially all of its assets into Apollo Asset Backed Credit Company LLC ('the Underlying Company'). The Underlying Company is managed by Apollo Manager, LLC, ('the Underlying Company Manager'), which is a subsidiary of Apollo Asset Management, Inc. (together with its subsidiaries, 'Apollo').

Apollo's "Asset Backed Finance" platform leverages over two decades of proprietary origination expertise to source high quality, investment grade assets across diverse sectors. Utilising a flexible mandate and multiple origination channels, Apollo prioritises relative value across asset backed finance asset classes and themes. Channel Capital serves as the Fund's appointed distributor.

The Next Evolution in Global Private Credit

Asset backed finance is a critical tool for financing day-to-day activities for millions of businesses and consumers globally.

Asset backed finance encompasses a broad set of credit types that touches everyday life from residential mortgages, credit cards and student loans, to planes, trains, automobiles, sports and entertainment royalties, and more, collectively making up a US$20 trillion-plus market today*.

The evolution of credit markets since the Global Financial Crisis has seen asset allocators significantly increase their exposure to private credit, predominantly in corporate debt. However, the expanding asset backed finance market is gaining attention as a natural complement to corporate credit allocations.

Asset backed finance offers a differentiated risk/return profile compared to other credit assets. With loans secured by tangible assets, asset backed finance can potentially provide enhanced security, making it an appealing option for risk-averse investors seeking higher yield with lower volatility.

*Source: SIFMA, JP Morgan, Citi, Apollo Analysts, Financial Stability Board report on total private financial assets originated and held by non-banks, as of December 2023.

The Underlying Company's strategy is to be exposed to the asset backed ecosystem, prioritising credit quality and diversification.

Fund Highlights

Attractive Income Profile

Seeks to generate a stable and consistent net distribution, targeting quarterly income, backed by high quality assets with stable, contractual cashflows.

Downside Protection^

Aims to be a resilient investment and designed to endure challenging market conditions, supported by structural protections, reduced refinancing risks, and diversity of collateral.

Efficient Access

Access to Apollo’s specialised origination platform through an open-end structure, with monthly applications and redemptions* and quarterly distributions**

Deep Expertise & Sourcing Engine

Apollo’s proprietary sourcing engine generates attractive investment opportunities, supported by the broader Apollo ecosystem for underwriting, structuring, portfolio construction, and risk management.

^ References to "downside protection" does not guarantee against loss of value, including the loss of the entire principal amount invested. The value of any investment could decline and/or become worthless.
* Processed monthly, subject to liquidity. Redemption requests must be received 10 Business Days prior to the Redemption Date.
**Quarterly when applicable or available from the Underlying Company or as otherwise determined by Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’).

Fund at a Glance

Fund Name and APIR
Apollo Asset Backed Credit Trust (AUD) - Class A (APIR: CHN5250AU)
Responsible Entity
Channel Investment Management Limited ACN 163 234 240 AFSL 439007
Underlying Company
Apollo Asset Backed Credit Company LLC
Underlying Company Manager
Apollo Manager, LLC, a subsidiary of Apollo Asset Management, Inc.
Underlying Company's
Investment Objective1
The Underlying Company seeks to invest in asset backed finance assets that provide high current income, backed by stable, contractual cashflows, with a focus on principal protection and understanding the many structural nuances that drive the underlying cash flows including liquidation value, credit enhancements, structural protections and security/collateral packages.
Underlying Company's Investments

Authorised investments of the Underlying Company include asset backed finance credit opportunities of various asset types, vintages, maturities and capital structure priorities.

The Underlying Company seeks to invest in assets it believes will provide excess return at every point along the risk-reward spectrum across five key pillars: (1) consumer finance, (2) residential mortgage loans, (3) commercial real estate, (4) hard assets and (5) financial assets.

Minimum Investment Amount
A$100,000 with lower minimums via approved platforms
Valuations
Monthly
Applications
Monthly
Redemptions
Monthly2
Distributions
Quarterly3
Management Fee4
1.15% p.a. of the net asset value of the Fund
Indirect Performance Fee
The Fund does not charge a performance fee. However, the Underlying Company is entitled to charge a performance fee of 10% on returns exceeding a 5% hurdle rate5
Currency
AUD
Minimum Suggested Timeframe
Five years plus

1. The Fund invests substantially all of its assets into the Underlying Company. Please refer to the Fund's Product Disclosure Statement for more information.

2. Processed monthly, subject to liquidity. Channel Investment Management Limited retains discretion to accept or reject redemption requests.

3. When applicable or available from the Underlying Company, or otherwise as determined by Channel Investment Management Limited.

4. Includes the Underlying Company’s management fee of 1.00% p.a. and excludes the Underlying Company's estimated expenses of 0.75% p.a.

5. Refer to the Fund's Product Disclosure Statement for more information on performance fees.

Portfolio Positioning and Suitability

The Fund can form part of a wider private credit portfolio within an alternative’s allocation. It may suit investors who:

  • have a medium-to long term investment timeframe
  • are looking for potentially consistent and stable income
  • are comfortable with the lock-up nature of private credit
  • seek an additional source of diversification* via an uncorrelated return profile
  • seek downside protection** and a hedge against inflation.

* Diversification does not ensure profit or protect against loss.
**References to "downside protection" does not guarantee against loss of value, including the loss of the entire principal amount invested. The value of any investment could decline and/or become worthless.

What are the Risks?

Several specific risks are associated with investing in the Fund. This can include, but is not limited to:

  • Market risk
  • Interest rate risk
  • Underlying Company risk
  • Liquidity risk
  • Withdrawal risk
  • Valuation risk
  • Foreign currency risk
  • Foreign investment risk
  • Availability of investment opportunities risk

Refer to the Fund's Product Disclosure Statement and Target Market Determination for more information about the Risks of investing in the Fund.

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This information has been prepared for use only by wholesale clients (as defined under the Corporations Act 2001 (Cth)).

Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’) is the responsible entity for the Apollo Asset Backed Credit Trust (AUD) ARSN 684 032 291 (the ‘Fund’). Neither CIML, the Underlying Company (Apollo Asset Backed Credit Company LLC, (the 'Underlying Company', or together with its affiliates "Apollo")), Apollo, their affiliates, its officers, or employees make any representations or warranties, express or implied as to the accuracy, reliability or completeness of the information contained on this website and nothing contained on this website is or shall be relied upon as a promise or representation, whether as to the past or the future. Apollo and its affiliates have not been involved, except as otherwise stated, in the preparation of this website. In addition, Apollo and its affiliates are not involved in the investment recommendation or decision-making process for the Fund. Past performance is not indicative of future performance. This information is given in summary form and does not purport to be complete. Information on this website should not be considered advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling units in the Fund and does not take into account an investor’s particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. For further information and before investing, please read the Fund's Product Disclosure Statement and Target Market Determination available from www.channel-apollo.com.au.

Any interests expressed is taken as an indicative intention only and is not binding on the investor or CIML.

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by CIML or Apollo or its affiliates to buy, sell, or hold any security. Views and opinions are current as of publishing and may be subject to change, they should not be construed as investment advice. This material on the Underlying Company is provided for educational purposes, in the context of the distribution of the Fund only and should not be construed as investment advice or an offer or solicitation to participate in the Underlying Company.

This website has been prepared, and all information regarding the Fund is provided, by CIML for use only by wholesale clients. To the extent any information provided by Apollo involves the provision of financial services in Australia under the Corporations Act 2001 (Cth), such information is provided by Apollo Management Singapore Pte. Ltd., and the following disclosure applies: Apollo Management Singapore Pte. Ltd. is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) for financial services provided to wholesale clients. It does not hold such a licence and is regulated by the Monetary Authority of Singapore under Singaporean laws, which differ from Australian laws.

Certain information contained herein may be “forward-looking” in nature. Due to various risks and uncertainties, actual events or results or the actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking information. As such, undue reliance should not be placed on such information. Forward-looking statements may be identified by the use of terminology including, but not limited to, “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology.

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