Current Unit Price: (20 min. delayed price) ASX:MXT $1.99 -0.75%
NAV as at COB: 22.10.20 $2.0076
Current Unit Price: (20 min. delayed price) ASX:MOT $1.94 0.78%
NAV as at COB: 22.10.20 $2.0266

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Local corporate credit fund rating boosted

1 April 2020

Among global concerns about credit quality as a result of COVID-19 and the economic downturn, one Australian corporate credit fund has had its rating increased to the much sought-after A tier.

S&P Global Ratings has announced that it has increased its rating on Metrics Credit Partners Diversified Australian Senior Loan Fund (DASLF) from BBB+ to A-, with a stable outlook.

S&P also reaffirmed its short-term issuer credit rating of DASLF at A-2 due to the funds’ “very strong risk-adjusted leverage and low under-lying credit risk profile relative to peers and solid franchise among its target investor segment,”

The rating house said despite the current market dislocation, “we expect that DASLF will continue to grow and diversify across both the number of underlying investments and the number of investors”.

Andrew Lockhart, Managing Partner of Metrics Credit Partners (Metrics), welcomed the increased rating.

“It is testament both to the quality of the Australian corporate credit market and to the stringent borrower assessment process Metrics carries out,” he said.

Mr Lockhart said Metrics continued to enjoy a strong pipeline of lending opportunities, as well as offering a source of regular and consistent income for investors in its unlisted and listed funds.

He cited S&P, which reported: “While continuing to grow in absolute terms and diversify both its investment and investor base, DASLF has posted strong net returns since inception, averaging 310 basis points over the Reserve Bank of Australia cash rate, up from 303 bps one year earlier.”

S&P said: “We consider that DASLF’s exposure to credit risk is low, relative to most of its rated peers. Since inception in June 2013, the fund has not experienced any material impairments in its portfolio, demonstrating sound underwriting across a portfolio that has lower underlying credit risk than its rated peers.”

The research house noted Metrics’ combination of bottom-up and top-down analysis and its strategy of investing in a diversified portfolio of corporate loans to public and private companies with no current exposure to derivatives.

“In our view, DASLF holds a unique position as the only fund in the market offering investors the ability to invest in Australian corporate debt across the credit spectrum, and further provides a distinctive investment option for those seeking higher yields. It would take a competitor several years to establish a fund that could compete directly with DASLF.

“Metrics originates assets directly with target corporate borrowers, via the syndicated loan market or via the secondary loan market. DASLF does not use brokers. It typically completes primary transactions itself,” S&P reported.

Mr Lockhart noted that 60% of investor capital invested in the ASX-listed MXT Fund (ASX:MXT) is also invested into DASLF.

“In addition to our suite of wholesale unlisted funds, in recent years we have also focused on providing retail investors with greater access to the corporate loan market,” he said.

“This strong rating of DASLF by S&P indicates the quality of the underlying loans within MXT, which we believe is currently offering retail investors good value.”

Current Unit Price: (20 min. delayed price) ASX:MXT $1.99 -0.75%
NAV as at COB: 22.10.20 $2.0076
Current Unit Price: (20 min. delayed price) ASX:MOT $1.94 0.78%
NAV as at COB: 22.10.20 $2.0266

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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.

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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

Disclaimer and disclosure

All website content in respect of the Metrics Direct Income Fund ARSN 641 620 331 (the Fund) is issued by Evolution Trustees Limited ACN 611 839 519 AFSL 486 217 (Evolution) as responsible entity of the Fund. Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) is the investment manager of the Fund.

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 Fund, you should consider the current product disclosure statement (PDS) of the Fund which is available at www.metrics.com.au, and assess whether the Fund 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 Evolution nor Metrics guarantees repayment of capital or any particular rate of return from the Fund. Neither Evolution 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.

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