Perpetual to IPO new Credit Income Trust

From

Michael Korber

Perpetual Limited (Perpetual) yesterday announced the opening of the initial public offering (the Offer) for the Perpetual Credit Income Trust3 (proposed ASX Code: PCI) (PCI). It is intended PCI will hold a diversified and actively managed portfolio of credit and fixed income assets.

The Offer has received strong initial support, with indicative bids already surpassing its minimum raise of $150 million, and there is expected to be solid ongoing demand.

PCI is intended to provide individual investors with access to credit and  fixed income assets they can’t typically source themselves. It has an accessible minimum application amount of $2,200.

It is intended PCI’s portfolio will typically contain between 50-100 domestic and global credit and fixed income assets, diversified by asset type, credit quality, loan maturity, country and issuer. Typical investments will include corporate bonds, floating rate notes, securitised assets and private debt (mainly corporate loans). The management cost is expected to be 0.88% per annum of the Net Tangible Assets (NTA) of PCI.

PCI is a registered managed investment scheme. The responsible entity of PCI will be Perpetual Trust Services Limited (Responsible Entity), and the investment manager of PCI will be Perpetual Investment Management Limited (Perpetual Investments).

PCI’s portfolio will be managed by Michael Korber, Perpetual Investments’ Head of Credit and Fixed Income. Michael has over 37 years’ experience, having been involved in credit markets since their development in Australia during the 1990s. He will be supported by Anne Moal, who brings 22 years of experience in credit and fixed income markets, along with a specialist credit and fixed income team that manages more than $7.1 billion in funds under management in credit and fixed income (as at 31 December 2018).

Portfolio Manager Michael Korber said: “The new Perpetual Credit Income Trust is coming at a time when Australia’s retirement age population is growing and looking to meet their income needs in ways diversified beyond their traditional sources of investment income like property and term deposits.

“On a global scale, Australians have one of the lowest allocations to fixed income assets in the OECD.4 Generally, individual investors may find it difficult to create a diversified portfolio of fixed income assets because some of them are typically issued into wholesale or institutional markets,” Mr Korber added.

Perpetual’s Chief Executive Officer and Managing Director, Rob Adams, said: “As a defensive asset class, credit and fixed income should form the bedrock of an investor’s portfolio.”

 

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