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
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
