WAM Alternative Assets portfolio manager Nick Kelly is positioning for economic volatility by emphasizing water infrastructure and private credit as core defensive holdings.
Kelly, who manages the Sydney-based firm’s $6 billion portfolio, argues that water assets offer a compelling bet for investors concerned about broader economic instability.
The commentary comes as WAM Alternative Assets’ listed investment company (LIC) trades at a discount to its net asset value.
Kelly’s focus on tangible, essential infrastructure reflects a broader shift among Australian asset managers toward sectors with predictable cash flows and inflation-linked returns.
Water utilities, in particular, are viewed as resilient given their monopoly-like characteristics and inelastic demand.
Private credit remains another pillar of Kelly’s strategy.