The Company aims to generate a regular and attractive level of income with low asset value volatility by investing in a diversified portfolio of public and private debt and debtlike instruments (‘Debt Instruments’), of which at least 70% will be investment grade. Over the longer term, it is expected that the Company will be mainly invested in private Debt Instruments, which are those instruments not traded on a stock exchange. The Company currently pays three quarterly dividends at an annual rate of SONIA + 3% on NAV per calendar year with a variable, fourth interim dividend to be determined after each year end, which will take into account the net income over the whole financial year and, if appropriate, any capital gains. The Company targets SONIA plus 4% over the longer term.

The Company has the ability to borrow up to 30% of net asset value although it is expected that it will primarily be managed without borrowing and typically any borrowings will not exceed 20% of net asset value. Any borrowings may magnify any gains or losses made by the Company.

The value of investments will fluctuate, which will cause share prices to fall as well as rise and you may not get back the original amount you invested. The Company operates a ‘zero discount’ policy which seeks to manage the discount or premium to NAV at which the Company’s Ordinary Shares trade. There is no guarantee that the Company’s Investment Objective will be achieved.

For more information about the M&G Credit Income Investment Trust, including meet the manager, our investment process, the types of assets we invest in, along with details about how the strategy might suit your investment needs, please click on the link below.

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