New Perpetual credit income trust
Perpetual has announced the opening of the initial public offering (IPO) for its new Credit Income Trust (PCI) which would typically offer exposure to 50-100 credit and fixed income assets.
PCI would aim to provide investors with a total return of the RBA Cash Rate plus 3.25 per cent per annum and with the intention to provide monthly cash distributions to unitholders. It would have a minimum application amount of $2,200.
The responsible entity (RE), Perpetual Trust Services Limited, said that it would seek to raise between $150 to $400 million with the right to accept oversubscriptions up to a further $40 million.
According to RE, the offer already received a strong support with indicative bids surpassing its minimum raise of $150 million.
The management cost for PCI, which would hold between 50-100 domestic and global credit and fixed income assets, would be expected to be 0.88 per cent per annum of the net tangible assets (NTA).
The investments would include corporate bonds, floating rate notes as well as securities assets and private debt, mainly corporate loans, it said.
PCI’s portfolio would be managed by Michael Korber, Perpetual’s head of credit and fixed income.
“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 diversifies beyond their traditional sources of investment income like property and term deposits,” he said.
“On a global scale, Australians have one of the lowest allocations to fixed income assets in the OECD [Organisation for Economic Co-operation and Development].
“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.”
AUTHOR
Oksana Patron
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
