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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| M&g Credit Income Investment Trust Plc | MGCI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 1.00 | 1.04% | 97.40 | 12:44:51 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 97.40 | 97.40 | 97.40 | 97.40 | 96.40 |
| Industry Sector |
|---|
| EQUITY INVESTMENT INSTRUMENTS |
| Top Posts |
|---|
Posted at 30/9/2020 09:44 by yieldsearch CC2014 yes fully agree:They have changed the investment policy, i guess the board is in the hand of M&G. It is another case of a sleepy board, and an investment manager in the driving seat. They are stating that they are prudent, i actually disagree with that: 47% of the portfolio is rated BBB+/BBB/BBB-. Any downgrade to non investment grade would significant reduce the price of these exposure (shifting from Investment Grade to Non Investement Grade, different investor type etc). I dont call this portfolio split prudent, it has major cliff hedge risk if the rating agencies suddenly downgrade bonds. Particularly at this time in the credit cycle. If they want yield, probably safer to leverage high investment grade bonds AAA/AA to get the return. The largest exposure is "M&G European Loan Fund (Prvt)", almost 10%. No information on that. And why investing in that European Loan Fund? Is it performing better than any others in the market? or is it a way for M&G to place it? the manager has a duty to invest the shareholders fund, not to syndicate M&G funds reporting is poor. having a pretty smiling face on the first page of the factsheet is really not reporting material. just some strats and portfolio composition, no real comments. Only comment relevant in the quarterly is we bought /sold this, the rest is just macro view likely copied pasted from some research.. what about benchmark portfolio vs sector index? portfolio vs IG Main and Crossover? This has been trading at a premium in the past (go figure), now at a small discount of 5%. Really no point buying this, they changed the investment policy, and really it should trade at a much wider discount. There are plenty of trust providing higher yield and trading at a larger discount. |
Posted at 24/11/2018 15:01 by jonwig Thanks for starting this thread.I'm interested, but watching only. Here's David Stevenson in the FT: There is now an investment trust listed on the main London market which offers something close to my ideal. M&G’s Credit Income Investment Trust now trades under the ticker MGCI, having raised £100m. Managed by Jeremy Richards, the fund has a management fee of 0.7 per cent per annum, with an introductory rate of 0.5 per cent until the end of next year. The company has a long-term target dividend of Libor plus 4 per cent. Although still a relatively small fund, and one that operates in a complicated, esoteric market of lending directly to businesses, I am attracted by the fact that it is managed by a world-class institution like M&G. Initially, the fund is likely to have a decent weight in commercial real estate loans, among other types, but it also has the capacity for direct lending, and can invest in leveraged loans, bonds, private placements, structured credit and infrastructure debt. For more adventurous investors looking for an income, I’d be sorely tempted to ditch some of the more esoteric lending funds and focus on a generalist David Stevenson As an investment house, fund manager M&G is well known for its bond market expertise (check out its Bond Vigilantes blog) meaning management are less likely to miss the really big trends in fixed income. The other big positive is the target yield of Libor plus 4 per cent. This feels about right in these increasingly tough markets. Many fund managers operating in private credit markets have much more ambitious yield targets, but these inevitably involve much more risk. Investing in illiquid debt looks attractive from an income point of view until the wider economy suffers, in which case that illiquidity becomes a real problem — you can’t shift the damned loan off your books. So far, the M&G fund is focusing on what are termed investment grade assets (with a rating of at least BBB- or comparable internal rating). This means the yield might be lower but, I would hope, more sustainable in the long term. Many of the loans in its portfolio have some form of floating rate structure built in, which means that if interest rates carry on rising, investors will get a higher return. For more adventurous investors looking for an income, I’d be sorely tempted to ditch some of the more esoteric lending funds and focus on a generalist. Let’s just hope that the fund managers can grow assets beyond the initial £100m before the next downturn comes along and pushes up defaults. [I see you've linked to an earlier article of his.] |
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