While past performance is not a guarantee of future results, Direct Lending’s growth in popularity among institutional and high net worth investors can, in large part, be attributed to its history of delivering attractive risk-adjusted returns across various market cycles.
Historical Risk/Return Since 2005*
*Data time period: December 31, 2005 through June 30, 2023. Past performance is not a guarantee of future results. There can be no assurance that historical trends will continue during the life of any fund. Sources: Bloomberg; Cliffwater Direct Lending Index (“CDLI”). Benchmarks: Cliffwater Direct Lending Index, S&P/LSTA Leveraged Loan Index, Bloomberg Barclays US Aggregate Bond Index, Bloomberg Barclays U.S. Municipal Index, Bloomberg Barclays U.S. Corporate Bond Index, Bloomberg Barclays US Corporate High Yield Index,. Risk measured as standard deviation of quarterly returns. Indices are not actively managed and investors cannot invest directly in the indices. Please see the important information page for Indices definitions.
A 10% allocation to direct lending can increase annual portfolio income by nearly 25%
Traditional 60/40 Portfolio | ||
---|---|---|
Allocation | Current Yield | |
Equity | 60% | 1.6% |
Fixed Income | 40% | 4.8% |
Weighted Average Yield | 2.9% |
Reallocation with 10% Direct Lending | ||
---|---|---|
Allocation | Current Yield | |
Equity | 55% | 1.6% |
Fixed Income | 35% | 4.8% |
Direct Lending | 10% | 11.6% |
Weighted Average Yield | 3.7% |
Data as of June 30, 2023. Past performance is not indicative of future results. There can be no assurance that historical trends will continue during the life of any fund. 1. Weighted Average Yield represents the yield generated by each hypothetical portfolio, accounting for the portion of each portfolio allocated to each asset. Equity is represented by the S&P 500 Total Return Index, Source: Bloomberg; Fixed Income is represented by the Bloomberg Barclays US Aggregate Total Return Index, Source: Bloomberg; Direct Lending is represented by the Cliffwater Direct Lending Index, Source: Cliffwater.
Cliffwater Direct Lending Index Performance
As of 12/31/22. Past performance is not a guarantee of future results. There can be no assurance that historical trends will continue during the life of any fund. There can be no assurance that historical trends will continue during the life of any fund. The performance shown is index performance and is not representative of any investment’s performance. Investors cannot invest directly in an index. Direct lending is represented by the Cliffwater Direct Lending (“CDLI”) Index. OCIC’s asset mix will differ than that of the CDLI. Investors should not expect the same performance when investing in OCIC.
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Individual investors should consult their financial advisor to learn more.
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An investment in Blue Owl Credit Income Corp. (“OCIC”) is speculative and involves a high degree of risk, including the risk of a substantial loss of investment, as well as substantial fees and costs, all of which can impact an investor’s return. The following are some of the risks involved in an investment in OCIC’s common shares; however, an investor should carefully consider the fees and expenses and information found in the “Risk Factors” section of the OCIC prospectus before deciding to invest: