An investment trust from the fixed income experts
The M&G Credit Income Investment Trust seeks to generate a regular and attractive level of income from a diversified credit portfolio, with low net asset value (NAV) volatility.
The trust has the flexibility to invest in both public and private debt, which can allow investors to access potential opportunities normally only available to large institutions.
By investing in these specialised areas of fixed income, we typically seek to construct an investment grade-quality portfolio with the potential to produce superior income to traditional bond portfolios without compromising on credit quality.
This is also thanks to our position as one of Europe’s largest private debt fundraisers and our decades of experience in these markets, which can enable us to source deals generally unavailable to other asset managers.
Through the trust’s closed-ended structure, we can benefit from holding these private assets to their maturity, while investors retain access to their capital via the trust’s publicly listed shares.
Why consider to invest in the trust?
Aim to pay annualised dividend of 4% +
cash rate (SONIA), which typically moves in line with interest rates and can help to protect against inflation
Aim for regular, attractive level income
sourced primarily from both private and public credit, with 70%+ of the portfolio invested in investment grade-quality assets
Stable capital value
of private assets, which are typically held to maturity, compared to other investments that can offer similar income, such as equities and high yield bonds
Potential for higher income
than traditional bond portfolios thanks to the possibility to also invest into private credit opportunities
Investment trust structure
allows investors to buy and sell the trust’s shares to suit their circumstances without affecting the underlying portfolio
Zero discount policy
designed to enable investors to buy and sell shares at close to Net Asset Value (NAV)
- Key facts
- Performance
Key facts
| Company name | M&G Credit Income Investment Trust plc |
|---|---|
| Listing | Premium segment of the Official List and Main Market of the London Stock Exchange (Ticker MGCI.LN) |
| Investment objective | Aims to generate a regular and attractive level of income with low asset value volatility |
| Investment policy | Investing in a diversified portfolio of public and private debt and debt-like instruments |
| Target long-term dividend |
4.0% pa + Sterling Overnight Index Average (SONIA) |
| Dividend policy | Paid quarterly |
| Gearing policy | Used for tactical investment purposes and liquidity management (limit of 30% NAV [net asset value], typically not expected to exceed 20% NAV) |
| Discount control | Liquidity window every five years and standard share buy-back authority (≤14.99% annually) |
| Board | Chairman and three other non-executive directors |
| Ongoing Fees | 1.29 % p.a. of the NAV |
| Management fee | 0.7% pa of the prevailing NAV |
Please note that NOT all costs are disclosed here. Please refer to the Company’s Prospectus for detailed information.
Please find below the monthly performance for the M&G Credit Income Investment Trust since inception.
Risks associated with the strategy
M&G Credit Income Investment Trust
Investment policy
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 debt-like 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 quoted on a stock exchange.
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 will magnify any gains or losses made by the Company.
It is expected that the Company will typically invest directly, but it may also invest indirectly through collective investment vehicles which are expected to be managed or advised by an M&G Entity.
The Company has an objective of an annualised dividend yield of SONIA plus 4% for each year. Where SONIA ceases to be available, a suitable replacement shall be determined and Shareholders will be notified accordingly.
Risks associated with 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. There is no guarantee that the Company’s Investment Objective will be achieved.
- The Company may be exposed to the possibility that a debtor will not meet its repayment obligations.
- Changes in interest rates may adversely affect the market value of some of the Company’s investments.
- Debt instruments may be repaid by issuers at short notice: as a result it may be difficult for the Company to reinvest capital at an attractive price or at all, which may affect it adversely.
- A variety of factors, such as market conditions, liquidity concerns or Company performance may lead to a reduction in trading volume or shares trading at a discount to their net asset value. Shareholders may also be unable to realise their investment at quoted prices or at all.
Please note this is not an exhaustive list, please refer to the risk section in the Prospectus for further details
Meet the manager
Adam English, Fund Manager
Adam joined M&G Investments in 1999 and is a fund manager for Prudential’s Life and Annuity Funds and the M&G Credit Income Investment Trust. Adam manages investment grade and high yield portfolios across both public and private markets.
Before joining M&G, Adam worked for the United Bank of Kuwait. Whilst there, he worked within the credit and high yield departments, with representation on the bank’s Credit Committee. Prior to this, he worked for Price Waterhouse, gaining membership of the Institute of Chartered Accountants in England and Wales.
Adam graduated from Christ Church, Oxford University with a degree in Physics and is a CFA charter-holder.
Investment process
Fixed income
We are one of Europe’s leading fixed income investors, across fixed income assets globally.
The views expressed in this webpage should not be taken as a recommendation, advice or forecast.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.