Perpetual Credit Income Trust (ASX:PCI)

Defensive. Diversified. Dynamic.

A diversified exposure to domestic and global credit and fixed income assets.

The Perpetual Credit Income Trust (ASX: PCI) offers investors a monthly income solution that is expected to be attractive and reliable through its target return of RBA Cash Rate + 3.25% p.a. (net of fees) through the economic cycle.

PCI invests in a portfolio of credit and fixed income assets diversified by country, asset type, credit quality, loan maturity and issuer. PCI typically holds a portfolio of approximately 50 to 100 assets.

Why invest in Perpetual Credit Income?

Monthly income.	The Trust targets a total return equal to the RBA Cash Rate plus 3.25% pa (net of fees).* The Trust intends to pay income monthly.
Benefit from Perpetual Asset Management.	Perpetual Asset Management is the Trust's investment manager. Perpetual Asset Management's Credit and Fixed Income Team has extensive experience and a consistent track record of performance. The senior portfolio managers have been investing together for over almost 20 years.
Diversification.	The Trust’s broad investment universe provides diversification and flexibility which means the portfolio manager can actively move within a broad range of assets to adapt to changing market conditions and select the best assets to deliver returns.
Access to defensive assets.	By investing in the Trust, you gain access to fixed income and credit assets – a defensive asset class which typically has a track record of low capital volatility.
Dynamic investment strategy.	Perpetual Asset Management's investment process seeks to preserve capital and deliver repeatable returns. Its active investment strategy allows it to position the portfolio to address changing market and economic conditions.
ASX listed - Liquidity	The Trust is available via the ASX. You can invest and trade just like any share.
Floating rate exposure.	The Trust is designed to have floating rate exposure which means prospect for rising income and distributions is more promising as underlying interest rates rise.
Specialists in Australian corporate credit.	While the Trust can invest around the world, it typically focuses on Australian issuers given our local presence, ability to meet borrowers and manage credit risk for the portfolio.
Institutional grade portfolio.	Perpetual Asset Management is one of Australia’s leading active credit fund managers. Due to its size and market position, the Trust can offer investors access to quality credit and fixed income assets not typically available to individual investors.

Key Facts


Trust name	Perpetual Credit Income Trust
ASX code	PCI
Investment manager	Perpetual Investment Management Limited
Responsible entity	Perpetual Trust Services Limited
Portfolio manager	Michael Korber
Investment objective	To provide investors with monthly income by investing in a diversified pool of credit and fixed income assets.
Number of holdings	Typically 50-100
Target return*	To target a total return of RBA Cash Rate plus 3.25% p.a. (net of fees) through the economic cycle.
Distributions	Aims to provide monthly distributions
Estimated management costs^	0.88%
Performance fee	None
Establish costs	Paid in full by Perpetual Investment Management Limited

^{* This is a target only and may not be achieved.}

^{^ This amount comprises the Management Fee, estimated Responsible Entity Fee, the estimated reasonable expenses and estimated indirect costs. For full details, please refer to the PDS.}

Management Team

Michael Korber

Managing Director, Credit & Fixed Income

BEc

Michael Murphy

Senior High Yield Analyst, Portfolio Manager, Perpetual Loan Fund

BEng, BEc, MPhil (Econ)

Karen Trau

Investor Relations (ASX:PIC) (ASX:PCI)

What are the risks?

All investments carry risks. The value of your investment may fall for a number of reasons, which means that you may receive back less than your original investment or you may not receive income over a given timeframe.

The level of income distributed can also vary from month to month or no distribution may be made.

The value of PCI’s units may decline significantly if PCI’s business, financial conditions or operations are negatively impacted and its units may in turn trade below NTA on the ASX. In these circumstances you could lose all or part of your investment in PCI.

While it’s not possible to identify every risk relevant to investing in PCI, the following sets out some of the risks that may affect your investment. For other key risks, please read the risks outlined in section 7 of the PDS. You should consider with a financial adviser whether the information about PCI is suitable for your objectives, financial situation or needs.

ASX liquidity risk	Units in PCI are listed on the ASX. Although liquidity is generally expected to exist in this secondary market, there are no guarantees that is an active secondary trading market at the time of selling Units. As a listed investment trust, there is no regular redemption facility for Units.
Investment risk	All investments are subject to risk which means the value of your investment may rise or fall and the level of income distributed may vary from month to month. The Units may also trade on the ASX at a discount to PTA per Unit for short or long periods of time.
Credit risk or default risk	Credit risk is the risk that a borrower or counterparty does not meet its principal and/or interest payment obligations as they fall due. If the credit risk increases for a borrower, for example due to a deterioration in its financial position, the value of the debt instruments of the borrower may fall. There may be a number of reasons why a borrower’s credit worthiness declines such as business or specific sector issues, or general economic conditions deteriorating.
Credit margin risk	Credit margin risk is the risk of a change in the value of an asset due to a change in credit margins. Longer term assets are generally more impacted by credit margin risk than short term assets.
Investment Strategy risk	PCI may be exposed to the risks that are specific to the credit and fixed income assets it invests in. This may include operational, distribution, valuation, liquidity and tax risks that are specific to credit and fixed income assets.
Related party risk	The operation and success of PCI will involve a number of transactions and ongoing arrangements between the Responsible Entity and its related parties. Related party transactions may give rise to conflicts of interest that need to be carefully managed to ensure that priority is given to the interests of Unit holders.
Legal and regulatory risk	Changes in legislation and differences between rules (including interpretation of the law) in domestic and foreign markets, including those dealing with taxation, accounting, investments and the ASX, may adversely impact your investment.

General enquiries

For queries relating to your holding in PCI, please contact Link Market Services.

pci@linkmarketservices.com.au

(+61) 1300 912 776

Postal Address:

Link Market Services, Locked Bag A14, Sydney South NSW 1235

Office open hours are between 8am and 8pm (Sydney time) Monday to Friday.

The information on this website has been prepared by Perpetual Investment Management Limited ABN 18 000 866 535, AFSL 234426 (PIML) and issued by Perpetual Trust Services Limited ABN 48 000 142 049, AFSL 236648 (PTSL), which is also the responsible entity and the proposed issuer of units in the Perpetual Credit Income Trust (the Trust).

The information contained in this website is general information only, is not financial advice, and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement of the Trust dated 8 March 2019 prior to making any investment decisions in relation to the Trust. If you require financial advice that takes into account your personal objectives, financial situation or needs you should consult your licensed or authorised financial adviser.

Neither PIML nor PTSL guarantees the repayment of capital or any particular rate of return from the Trust. Neither PIML nor PTSL gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained on this website. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Past performance is not a reliable indicator of future performance.

Australia and New Zealand

The information on this website is intended for Australian residents or citizens who are currently located in Australia, or where expressly indicated, New Zealand residents or citizens who are currently located in New Zealand only, and should not be relied on by residents or citizens of any other jurisdiction. By clicking the “Proceed” button below, you are agreeing to the Terms & Conditions of use.

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