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.”
Recommended for you
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
With GCQ Funds Management and Lakehouse Capital making their recent ETF debuts, the two fund managers unpack why financial advisers are essential to their respective launches.
ETF provider Global X is set to launch its latest ETF, focused on artificial intelligence infrastructure.
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.