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26 September 2018
M&G Investments, Europe’s largest investor in private debt*, today announces its intention to launch a premium listed, closed-ended investment trust, named M&G Credit Income Investment Trust plc (the “Company”), to invest across all areas of the public and private credit markets.
The Company will have an unconstrained investment approach and a significant proportion of the portfolio will be invested in private, alternative and illiquid credit assets with a minimum of 70% allocation to investment grade assets. Its remit will include investing in assets such as asset-backed securities, commercial mortgages, direct lending to small and mid-sized companies, infrastructure-related debt assets, leveraged loans to private equity owned companies, as well as public debt instruments issued by corporates or sovereign entities.
William Nicoll, Co-Head of Alternative Credit, M&G Investments, says: “The great financial crisis ten years ago has significantly changed Europe’s financing landscape. Due to regulatory and other pressures, banks are no longer as dominant in some financing markets and new sources of private capital are now available to British businesses. By lending to businesses, projects and institutions, the Company has been designed with the aim of generating a regular and attractive level of income to investors through a diverse range of credit opportunities, most of which are sourced via our extensive in-house private credit teams.”
Jonathan Willcocks, Global Head of Distribution, M&G Investments, says: “We are excited to be offering M&G’s expertise in private credit markets to all investors for the first time. Our pension fund and institutional clients have looked to the private markets as they hunt for yield and security within the fixed income universe and now other investors will have the same opportunity.”
David Simpson, Chair of the M&G Credit Income Investment Trust, says: “M&G is one of the most experienced and established managers in the private credit arena with a history of investing in these markets for over 20 years. The private credit markets can provide investors with assets that have strong covenants, lower volatility compared to corporate bonds and, in some cases, there is a premium when investing in assets with reduced liquidity. Many of these private credit assets are suited to the closed-ended structure.”
The offer for subscription and placing for the M&G Credit Income Investment Trust opened on 26 September 2018 and closes on 7 November 2018 and the Placing closes on 8 November 2018. M&G is aiming to raise in excess of £250 million, with Prudential subscribing for 25% of the shares to be issued in the IPO, up to £80 million. Winterflood Securities Limited is acting as sole sponsor, financial adviser, bookrunner and Intermediaries Offer Adviser in connection with the IPO.
*According to the Private Debt Investor rankings 2017
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Notes to Editors
The lead fund manager of the Company’s portfolio of investments will be Jeremy Richards. Jeremy joined Prudential Portfolio Managers in 1983 as a member of the actuarial department. He joined the fixed income team in 1985, and has been responsible since 1993 for managing the fixed income team in respect of Prudential’s Life and Annuity funds. Prior to this, Jeremy worked on bond research, going on to manage the UK and European fixed income portfolios for insurance and pensions clients. He was also a specialist in index-linked gilts and fixed income derivatives. Jeremy graduated from the University of Manchester with a degree in Economics and is a Fellow of the Institute of Actuaries.
M&G is a leading international asset manager with a long-term, active approach to investing. The firm has been helping people to prosper by putting their money to work for more than 85 years. M&G’s customers include private investors, members of pension schemes and life insurance policyholders. Responding to the ever changing financial landscape, the firm has developed a wide range of investment solutions, across equities, fixed income, real estate, multi asset and infrastructure. At 30 June 2018 M&G manages £285.8 billion in assets for its customers.
Headquartered in London, M&G employs over 2,000 people worldwide in 16 countries, managing assets in Europe, Asia and the US. M&G is the asset management arm of Prudential Plc in the UK and Europe.
As a steward of clients’ assets M&G recognises the importance of responsible investing with the analysis of environmental, social and governance (ESG) factors core to the business. M&G is a signatory to the United
Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Program, which is dedicated to achieving the long-term goal of building climate resilient economies. M&G’s £27 billion real estate business arm has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of its funds.
M&G Investments is a business name of M&G Alternatives Investment Management Limited and is used by other companies within the Prudential Group. For the purposes of AIFMD, M&G Alternatives Investment Management Limited acts as Alternative Investment Fund Manager of any EU domiciled Institutional Fixed Income fund(s) cited in this document. M&G Alternatives Investment Management Limited is registered in England and Wales under number 2059989. The registered office is Laurence Pountney Hill, London, EC4R 0HH and the firm is authorised and regulated by the Financial Conduct Authority.
This press release reflects the authors’ present opinions reflecting current market conditions which are subject to change without notice and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents. M&G does not offer investment advice or make recommendations regarding investments. Opinions are subject to change without notice. M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.