NEWS


MCP MASTER INCOME TRUST (MXT) ASSIGNED A 'SUPERIOR' INVESTMENT RATING
Friday, February 09, 2018


Melbourne, 9 February 2018 – Australia Ratings has assigned a ‘SUPERIOR’ investment rating to MCP Master Income Trust (MXT) (the Trust).

A SUPERIOR indicates the highest level of confidence that the Trust can deliver a risk adjusted return in line with the Trust’s investment objective. This is the highest investment rating that can be assigned by Australia Ratings based on our investment rating scale to indicate how well we believe a fund will perform against a range of risks.

The MCP Master Income Trust (MXT), managed by Metrics Credit Partners Pty Ltd, is an ASX listed investment trust investing in the Australian direct corporate loan market, a sector which is dominated by bank investment.The Trust was launched in October 2017 with a market capitalisation of $537 million as at end December 2017.

The Trust offers investors monthly targeted rate of 3.25%p.a. above the RBA cash rate with a low risk of capital loss by investing in a well-diversified and actively managed portfolio of Australian corporate loans.

Australia Ratings’ analyst Maggie Callinan said “MXT’s Superior rating reflects the investment manager’s deep experience, resources and solid track record.” Ms Callinan adds, “the Trust offers investors an attractive investment on a risk-return basis offering well managed, well diversified investment in a sub-asset class that would otherwise be difficult to access for non-bank investors.”

Australia Ratings has also assigned its Product Complexity Indicator (PCI) of ‘BLUE’ indicating the trust as a Relatively Simple financial product, with investment managers seeking to outperform their chosen mainstream market sector - the Australian corporate loan market.

The investment, equity funded corporate loans, currently has no core leverage.The strategies used to outperform, while requiring a depth of market experience and due diligence, are completely compatible with normal market practice.This includes the potential conversion of debt to equity in a restructuring, where the strategy is designed to limit capital loss.

A full rating report is available from www.australiaratings.com/.

FOR MORE INFORMATION CONTACT:

Maggie Callinan, Director maggie.callinan@australiaratings.com 03 8080 6684

ABOUT AUSTRALIA RATINGS

Australia Ratings is a local, independent rating agency that provides timely and credible ratings information and research to the broader investment community.As an ASIC-licensed rating agency, we provide general advice by issuing credit ratings on debt securities and companies; and fund ratings on Australian managed funds.We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.

Rating opinions of Australia Ratings are determined by its analytical team in accordance with its rating methodology. The Board of Australia Ratings whose members include Jarrod Brown, Chris Dalton and Mike Dontschuk oversee the application of Australia ratings rating methodology and the integrity of the rating process.

About Australia Ratings’ Investment Rating

Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term. The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.

A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks.

 

 

About the Product Complexity Indicator

Our proprietary colour-coded product complexity indicator (PCI) highlights the complexity level of an investment by its terms and conditions’ structure and transparency that may affect an investor’s return.


 


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