Current Unit Price: (20 min. delayed price) ASX:MXT $2.01 0.50%
NAV as at COB: 23.02.20 $2.0086
Current Unit Price: (20 min. delayed price) ASX:MOT $2.04 0.49%
NAV as at COB: 23.02.20 $2.0211

LATEST NEWS

Debt funds put listings on ice amid LIT review

More global debt funds are deferring planned listings on the Australian Securities Exchange after fixed income giant PIMCO cited the Treasury’s review into stamping fees for delaying its much-awaited offering.

The $2.6 billion global fixed income giant had planned an initial public offering of a corporate debt fund but confirmed it would wait for clarity after Treasury announced a review into stamping fees.

The stamping fees review followed reports and commentary by The Australian Financial Review that questioned “conflicted remuneration” in the sector.

Other international managers that intended to undertake offerings are now also reconsidering the timing of their fund raisings.

Among global corporate debt managers that had pre-marketed raisings is CVC Credit Partners.

CVC’s private debt fund had planned to invest in European and US direct loans and intended to launch the offer in the first half of 2020.

But sources involved in the CVC offer said the manager was “closely watching” developments after the government’s consultation was announced.

CVC Credit Partners, which has $US23.9 billion ($34.6 billion) invested in sub-investment grade corporate credit markets in Europe and North America and is run out of London and New York.

The fund’s portfolio managers have made several visits to Australia since November 2018 and have met with brokers, financial advisers, superannuation funds and asset consultants ahead of a planned deal.

Los-Angeles based Guggenheim, which has $270 billion of assets under management is also understood to be planning a debt fund offering.

Listed investment company (LIC) and listed investment trust (LIT) raisings have boomed in the last three years as the size of the market has doubled.

This, according to some observers, is because brokers and advisers are exploiting a regulatory loophole that allows them to earn a commission from selling a listed fund.

Brokers involved in the majority of listed fund offers said commissions seldom exceeded 1.5 per cent.

In recent months, the fund raisings has been dominated by fixed income or corporate debt funds.

Already this year, global asset manager Neuberger Berman and Australian loan manager Metrics Credit Partners have conducted follow-on raisings to existing deals.

The recent wave of debt funds pay target distributions to investors and have tended to trade at premiums to the net asset value.
Critics say the offers are risky and complex and that advisers and brokers are only allocating to these investments because of the commissions, while backers say the products are of a high quality and are meeting a growing need among investors for yield.

Financial Review | February 03, 2020

Current Unit Price: (20 min. delayed price) ASX:MXT $2.01 0.50%
NAV as at COB: 23.02.20 $2.0086
Current Unit Price: (20 min. delayed price) ASX:MOT $2.04 0.49%
NAV as at COB: 23.02.20 $2.0211

talk to us

Sign up for Metrics news and updates

Metrics - Australian Non-Bank Corporate Lender

Metrics. A new measure.

Disclaimer and disclosure

All website content in respect of the MCP Master Income Trust ARSN 620 465 090 (the Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust and is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current product disclosure statement (PDS) of the Trust and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au/, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

Cororate Governance
Personal Trading in Non-Perpetual Securities | RE Services Personal Trading in Non-Perpetual Securities | Unitholders Communications Policy | Continuous Disclosure Policy

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned May/2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Disclaimer and disclosure

All website content in respect of the MCP Income Opportunities Trust ARSN 631 320 628 (the Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust and is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current product disclosure statement (PDS) of the Trust, and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

Cororate Governance
Personal Trading in Non-Perpetual Securities | RE Services Personal Trading in Non-Perpetual Securities | Unitholders Communications Policy | Continuous Disclosure Policy

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned May/2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

© Copyright Metrics Credit Partners Pty Ltd 2019 | Privacy Policy | Terms of Use | Collection Notice | Award T&Cs