The ASX will soon have another income-focused fund available for investors to trade when Metrics Credit Partners (MCP) lists its MCP Master Income Trust (ASX code: MXT). MXT is targeting a minimum yield equal to the RBA cash rate plus 3.25% per annum which is currently around 4.75%, net of fees and costs. Distributions will be paid monthly.
The initial public offering (IPO) opens on 10 August 2017 and it is seeking to raise up to $500 million from investors in Australia and New Zealand at a unit price of $2.00. The offer is expected to close on 19 September 2017 and the units are scheduled to list on the ASX on 9 October 2017.
The Trust will be the first ASX-listed investment trust offering exposure to corporate lending. It will provide investors with exposure to a portfolio which reflects activity in the Australian corporate loan market, diversified by borrower, industry and credit quality. The trust initially will have exposure to over 50 individual investments with a near-term target of 75-100 individual investments.
MXT initially will be a “fund of funds”. It will obtain its exposure via a series of wholesale funds managed by the Metrics Credit Partners team. The funds and their initial exposures will be as follows:
- MCP Diversified Australian Senior Loans Fund 60-70%
- MCP Secured Private Debt Fund II 20-30%
- MCP Real Estate Debt Fund 10-20%