Perpetual Credit Income Trust · ASX:PCI
Perpetual Credit Income Trust — Investor Presentation (July 2024)
22 slides from Perpetual Credit Income Trust's investor presentation, Jul 9, 2024
Slide 1: Capital raising: placement and unit purchase plan
ASX: PCI For personal use only Capital raising: placement and unit purchase plan July 2024
Slide 2: Important note
Important note This presentation has been prepared by Perpetual Investment Management Limited ABN 18 000 866 535 AFSL 234426 (PIML or the Manager) and authorised for release by Perpetual Trust Services Limited ABN 48 000 142 049 AFSL 236648 (PTSL or the Responsible Entity). PTSL is the responsible e
Slide 3: Important note cont.
Important note cont. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. This presentation is not for release or distribution in the United States. This presentation does not constitute an offer of securities in any oth
Slide 4: Important note cont.
Important note cont. This presentation may contain forward looking statements and comments about future events that are based on PIML’s beliefs, assumptions and expectations and on information currently available to PIML as at the date of this presentation. The words, ‘expect’, ‘anticipate’, ‘estima
Slide 5: Perpetual Credit Income Trust
Perpetual Credit Income Trust (ASX: PCI) Investment objective Investment guidelines Investment process & target return For personal use only Typically 50 – 100 assets • To provide investors with monthly income by investing in a diversified 30% - 100% Investment grade assets2 Top down market screenin
Slide 6: Key details of the Placement and Unit Purchase Plan (UPP)
Key details of the Placement and Unit Purchase Plan (UPP) • Placement to wholesale investors to raise up to approximately $66.2 million; and • Non-underwritten UPP to existing eligible unitholders in Australia or New Zealand to apply for up to $30,000 of fully paid For personal use only ordinary uni
Slide 7: Capital raising timetable
Capital raising timetable1 Event Date Record date for UPP 7:00pm Monday 8 July 2024 For personal use only Trading Halt Tuesday 9 July 2024 Announcement of Placement and UPP Tuesday 9 July 2024 Placement Bookbuild Tuesday 9 July 2024 - Wednesday 10 July 2024 Announcement of results of the Placement T
Slide 8: Benefits of the Placement and UPP
Benefits of the Placement and UPP We see an attractive pipeline of corporate loan and securitised asset deals which will complement Attractive the relative value opportunities identified in investment grade and high yield credit and fixed For personal use only pipeline income assets1. Additional cap
Slide 9: Portfolio Manager Update
Portfolio Manager Update For personal use only Michael Korber Portfolio Manager, Perpetual Credit Income Trust Michael Murphy Portfolio Manager, Perpetual Loan Fund
Slide 10: Why we think it's good to be in Australian credit now
Why we think it’s good to be in Australian credit now • Australian credit offering best yields in over a decade • For personal use only Australian credit more defensive than global peers, higher quality with strong regulatory oversight • We think Australian interest rates are likely to stay higher f
Slide 11: Perpetual Credit Income Trust
Perpetual Credit Income Trust • Flexible investment strategy provides diversification of credit risks and security types. For personal use only Designed to navigate different market environments: - 120 assets across 83 issuers in a range of industries/sectors1 - Each issuer exposure typically 1 – 2%
Slide 12: Our key principles of investing
Our key principles of investing Typical capital structure of a company • Well diversified across the full spectrum of credit and For personal use only First fixed income assets Senior secured debt Bank loans, first lien and bonds • Specialists in Australian corporate credit - while the Trust can inv
Slide 13: Opportunities we are seeing across credit markets
Opportunities we are seeing across credit markets For personal use only 1. Strong deal flow in securitisation markets offering ample selection of opportunities 2. A building pipeline of primary issuance of loans along with refinancing of existing loans: • Yields continue to look attractive • All loa
Slide 14: Income return of PCI assets has been the most significant contributor to return
Income return of PCI assets has consistently been the most significant contributor to PCI portfolio return PCI portfolio running yield v spread For personal use only % 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 PCI portfolio running yield Spread Source: Perpetual Investment Management Limited. As at 31
Slide 15: PCI investment portfolio performance
PCI investment portfolio performance For personal use only Since As at 31 May 2024 1 mth 3 mths 6 mths 1 yr 3 yrs p.a. 5 yrs p.a. incep p.a. PCI Investment Portfolio* 0.7% 2.4% 5.0% 10.2% 5.8% 5.1% 5.1% Returns net of operating expenses Target Return^ 0.6% 1.9% 3.9% 7.8% 5.8% 5.0% 5.0% Distribution
Slide 16: PCI has delivered 28.4% total return since its IPO in May 19
PCI has delivered 28.4% total return since its IPO in May 2019 Growth of $10,000 since inception based on PCI NTA* For personal use only $13,000 $12,500 $12,000 $11,500 $11,000 $10,500 $10,000 $9,500 *Source: Perpetual, StateStreet. As at 31 May 2024. Growth of $10,000 has been calculated on the gro
Slide 17: Spotlight on current holdings
Spotlight on current holdings Issuer Credit rating Sector Asset For personal use only Ampol Investment grade Oil and gas Floating rate note Perpetual Loan Fund Ausnet Investment grade Utilities Floating rate note • As at 31 May 2024, Perpetual Loan Fund IAG Investment grade Insurance Floating rate n
Slide 18: Portfolio composition
Portfolio composition As at 31 May 2024 Sector allocation Corporate sector diversification Independent credit ratings For personal use only 2.9% 2.2% 1.3% Casinos & Gaming, 2.7% Coal Operations, 2.0% 3.6% 3.5% Consumer Services, 2.5% 10.6% 3.2% Educational Services, 1.9% 3.6% Food & Beverage, 5.0% H
Slide 19: Portfolio composition
Portfolio composition As at 31 May 2024 7.2% For personal use only Breakdown 22.0% 20.0% Breakdown 19.4% by maturity 16.6% by seniority 14.0% (capital structure) Senior Subordinated 4.8% Deeply Subordinated 3.3% 0-1 1-2 2-3 3-4 4-5 5-7 7+ yrs 32.4% 60.3% yrs yrs yrs yrs yrs yrs 1.3% 3.6% 4.1% 3.6% 4
Slide 20: Thank you
For personal use only Thank you
Slide 21: Perpetual's specialist Credit and Fixed Income team
Perpetual’s specialist Credit and Fixed Income team Our highly regarded senior portfolio management team have been investing together for almost 20 years For personal use only MICHAEL KORBER Managing Director of Credit and Fixed Income Portfolio Manager - Pure Credit Alpha, Credit Income Trust 42 ye
Slide 22: Wholesale placement fees
Wholesale placement fees The Responsible Entity and Manager have engaged the following entities to act as joint lead managers (JLMS) to the For personal use only Placement: • Commonwealth Securities Limited ACN 067 254 399 • Morgans Financial Limited ACN 010 669 726 • Ord Minnett Limited ACN 002 733
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