Key Takeaways
- • ASIC imposed a 21-day interim stop order on Class A units of the Ares Global Credit Income Fund, distributed by Fidante Partners, according to Bloomberg.
- • The regulator questioned the fund's suitability for capital-preservation investors and provisions allowing individuals to allocate up to 50% of investable assets to the product.
- • The Ares fund reported AUD799.9m in assets under management as of 30 June 2026, invested across global bonds, syndicated loans, asset-backed securities and CLOs.
- • The action follows restrictions the prior week on three mortgage funds managed by Australian Secure Capital Fund, collectively overseeing roughly AUD250m.
- • ASIC is widening surveillance of private credit, including fees, margins and conflicts of interest, as scrutiny grows after Metrics Credit Partners suspended withdrawals from some funds.
Summary
The Australian Securities and Investments Commission (ASIC) has issued a temporary 21-day interim stop order barring Fidante Partners from offering units in the Ares Global Credit Income Fund, according to a report by Bloomberg. The order covers Class A units and was issued over concerns about how the fund's target investors were identified and whether the product is suitable for retail clients.
The regulator specifically questioned the fund's suitability for investors seeking capital preservation, as well as provisions permitting individuals to allocate up to 50% of their investable assets to the product. The fund had AUD799.9m in assets under management as of 30 June 2026 and invests across global bonds, syndicated loans, asset-backed securities and collateralised loan obligations.
The intervention follows similar restrictions imposed the previous week on three mortgage investment funds managed by Australian Secure Capital Fund, which collectively oversee approximately AUD250m. Those orders cited inadequate disclosure of underlying loan portfolios, diversification and the costs investors could face when exiting the funds.
ASIC said the action forms part of a broader surveillance program on private credit, with particular focus on the distribution of investment products to retail investors. The regulator is also examining fees, profit margins and potential conflicts of interest across the sector, amid growing concerns over transparency, liquidity and investor protection.
The scrutiny comes as Australia's private credit market faces questions over asset valuations and liquidity management, following recent difficulties at major lenders including Metrics Credit Partners, which temporarily suspended withdrawals from some funds over valuation concerns.
The regulator specifically questioned the fund's suitability for investors seeking capital preservation, as well as provisions permitting individuals to allocate up to 50% of their investable assets to the product. The fund had AUD799.9m in assets under management as of 30 June 2026 and invests across global bonds, syndicated loans, asset-backed securities and collateralised loan obligations.
The intervention follows similar restrictions imposed the previous week on three mortgage investment funds managed by Australian Secure Capital Fund, which collectively oversee approximately AUD250m. Those orders cited inadequate disclosure of underlying loan portfolios, diversification and the costs investors could face when exiting the funds.
ASIC said the action forms part of a broader surveillance program on private credit, with particular focus on the distribution of investment products to retail investors. The regulator is also examining fees, profit margins and potential conflicts of interest across the sector, amid growing concerns over transparency, liquidity and investor protection.
The scrutiny comes as Australia's private credit market faces questions over asset valuations and liquidity management, following recent difficulties at major lenders including Metrics Credit Partners, which temporarily suspended withdrawals from some funds over valuation concerns.
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