Incorporated on 17 July 2018, M&G Credit Income Investment Trust Plc is a UK-based closed-ended investment trust that aims to generate a regular and attractive level of income with low asset value volatility. The company focuses its investment in a diversified range of public and private debt and similar to debt instruments to achieve its investment objective. It is expected that the company will primarily invest in private debt instruments for longer term, which are those instrument not listed on a stock market. It invests mainly in debt instruments of UK, US, France, Australia, European Union, and other countries and its portfolio comprises minimum 50 investments. The company’s shares have a listing on the premium segment of the Official List of the FCA and trade on the Main Market Segment of the London Stock Exchange as LON: MGCI.
The company has appointed M&G Alternatives Investment Management Limited as its investment manager. The company operates an unconstrained investment approach and investments may include, but are not limited to commercial loan; Asset-backed securities, backed by a pool of loans secured on, amongst other things, , credit card receivables, corporate loans, residential and commercial mortgages, commercial loans, auto loans and student loans; leveraged loans to private equity owned companies; private placement debt securities issued by both public and private organizations; distressed debt opportunities to companies going through a balance sheet restructuring; structured credit, including bank regulatory capital trades; direct lending to small and mid-sized companies, including lease finance and receivables financing; public debt instruments issued by a corporate or sovereign entity which may be liquid or illiquid, and infrastructure-related debt assets. The company mainly invests in Sterling-denominated debt instruments. Where it invests in assets not denominated in Sterling, it is generally the case that these assets are hedged back to Sterling.
The company may invest in below investment grade Debt Instruments that are rated below BBB- by Fitch or S&P or Baa3 by Moody’s or, in the case of unrated Debt Instruments, which have an internal M&G rating below BBB-, up to 30% of Gross Assets. The company may invest in any one collective investment vehicle maximum 20% of Gross Assets and maximum 40% of Gross Assets in collective investment vehicles in aggregate. Up to 10% of Gross assets may be invested in other investment companies which are listed on the official list. The company may borrow maximum 30% of its Net Asset Value, but it is not typically expected to exceed 20% of its Net Asset Value. The company may also use derivative for effective portfolio management, including for currency hedging.
M&G CREDIT INCOME INVESTMENT TRUST PLC Beaufort House, 51 New North Road, Exeter, EX4 4EP, United Kingdom