Perpetual Credit Income Trust

Offer of Units in the Perpetual Credit Income Trust  – Coming Soon

Westpac Online Investing is pleased to advise of the upcoming opportunity to invest in the Offer of units in the Perpetual Credit Income Trust ARSN 626 053 496 (“Trust”). The Offer is expected to open on 25 March 2019 and close at 5pm (Sydney time) on 18 April 2019, however Westpac Online Investing may close its Broker Firm allocation early.

About Perpetual Credit Income Trust

Perpetual Trust Services Limited ACN 000 142 049 AFSL 236648 (“Responsible Entity”) has lodged a Product Disclosure Statement (“PDS”) dated 8 March 2019 in relation to the Trust with the Australian Securities & Investments Commission (“ASIC”).

The Perpetual Credit Income Trust is a unit trust which has been registered as a managed investment scheme under the Corporations Act. The Responsible Entity will apply for the Trust to be admitted to the official list of the ASX as an investment entity.

The objective of the Trust is to provide investors with monthly income by investing in a diversified pool of credit and fixed income assets.

The Responsible Entity has appointed Perpetual Investment Management Limited as the Manager of the Trust under the Investment Management Agreement (IMA). The Manager and the Responsible Entity are part of the Perpetual Group.

The Offer

Proposed ASX Code

PCI

Subscription Price per Unit and Pro forma Net Tangible Assets (NTA) backing per Unit

$1.10

Minimum gross proceeds from the Offer

$150 million

Gross proceeds from the Offer based on the Maximum Subscription being raised (before any acceptance of Oversubscriptions1)

$400 million

Gross proceeds from the Offer based on Maximum Subscription being received and all Oversubscriptions being accepted1

$440 million

1 The Responsible Entity reserves the right to accept applications by way of Oversubscriptions under the offer to raise up to a further $40 million.

About the Trust

The Trust will hold a diversified and actively managed portfolio of credit and fixed income assets. The strategy allows for a combination of domestic and global credit and fixed income assets. The Trust will diversify exposure and will have maximum exposure limits to issuers.

The Offer provides investors with an opportunity to invest in an ASX listed investment trust which aims to provide investors with:

  • Sustainable regular income, targeting a total return of the RBA Cash rate plus 3.25% per annum (net of fees) and intends to pay cash distributions monthly
  • Exposure to a dynamic credit and fixed income investment strategy with a strong focus on capital preservation
  • Access to a defensive asset class which typically has a track record of low capital volatility
  • Exposure to a portfolio of typically 50 - 100 credit and fixed income assets diversified by asset type, credit quality, maturities, countries and issuers
  • Access to a highly skilled and stable Credit and Fixed Income Team with a proven track record of active management and delivering superior risk adjusted returns
  • Security of a proven active and risk aware investment process founded on delivering predictable and repeatable returns while preserving capital
  • Access to the investment experience and expertise of Perpetual Investments
  • Perpetual Investments will fund all Establishment Costs, meaning the full amount raised will be available for investment.

Risks

Before making an investment decision, it is important you understand the risks that can affect the value of your investment. Some of the key risks in relation to an investment in the Trust are summarised below. Please refer to section 7 of the PDS for a more comprehensive summary of the potential risks.

ASX Liquidity Risk - The ability of an Investor to sell their Units on the ASX will depend on the turnover or liquidity of the Units at the time of sale.

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.

Credit Risk or Default Risk - Credit risk is the risk that a borrower or counterparty does not meet its payment obligations as they fall due. In times of challenging economic and market conditions, sub-investment grade credit instruments carry with them a greater default risk due to the corporate issuer’s impaired ability to service interest and repay the principal as and when due.

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.

Investment Strategy Risk - The Trust’s success and profitability is reliant upon the Manager’s ability to devise and maintain an investment portfolio consistent with the Trust’s Investment Objective, strategies, guidelines and permitted investments set out in the PDS.

Related Party/Conflict of Interest Risk - The Trust’s business model assumes a number of ongoing related party arrangements between the Responsible Entity and the Manager both under the Investment Management Agreement and in relation to the Trust’s investment in the Perpetual Loan Fund. The conflicts of interest involved need to be carefully managed to ensure that all relevant parties are acting in the best interests of Unitholders in the Trust.

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.

Risk of Loss of Principal - All investing involves risk including the loss of principal. By making an investment in the Trust, an investor is putting their capital at risk, which may result in the loss of principal.

Leverage Risk - Leverage may magnify the gains and losses achieved by the Trust. Borrowing (or gearing) does not form part of the Trust’s Investment Strategy, however, derivatives may result in leverage (with a maximum leverage limit of 15%).

To find out more about the Offer, simply click on the banner below to enter our IPO Centre.

Perpetual Credit Income Trust - Find out more

Important Information

Securities trading through Westpac Online Investing is a service provided through Westpac Securities Limited (ABN 39 087 924 221 AFSL 233723) by Australian Investment Exchange Limited (ABN 71 076 515 930, AFSL 241400) (“the Participant”), a Participant of the ASX Group and Chi-X Australia. The Participant is not authorised to carry on business in any jurisdiction other than Australia. Accordingly, the information contained in this communication is directed to and available for Australian residents only.

Westpac Securities Limited is a wholly owned subsidiary of Westpac Banking Corporation (ABN 33 007 457 141 AFSL 233714) (“Westpac”).

Westpac Securities Limited through the Particpant has secured a Broker Firm Offer for Westpac Online Investing customers and may receive a fee from the issuer in respect of applications received from retail investors as detailed in the Australian Investment Exchange Limited / Westpac Securities Limited Financial Services Guide. 

The information contained in this website has been prepared using the PDS issued by the Responsible Entity dated 8 March 2019. Neither Westpac Securities Limited nor the Participant makes any representation or warranty as to the accuracy or completeness of the information in the PDS. Capitalised terms have the same meaning as given to those terms in the Prospectus unless the context requires otherwise.

Nothing in this website should be construed as financial product advice or as a solicitation, an offer to buy or sell, or a recommendation to buy Units in the Trust. The information above is general information only and does not take into account your own investment objectives, personal circumstances, financial situation or needs.  Full details of the Offer by the Responsible Entity are contained in the PDS.  Investors will need to read and consider the PDS in deciding whether to acquire any Units in the Trust and anyone who would like to apply for Units in the Trust must complete the Application Form that will be in, or will accompany the PDS.