MCP Income Opportunities Trust

28 Feb 2019

Gamma Advisory

This information is general in nature and is not to be construed as advice.

Gamma Wealth Group is offering clients the opportunity to invest in a fixed income trust from a quality investment manager.

MCP (Metrics Credit Partners) is a leading Australian based non-bank corporate lender that currently manages over $3.4bn in funds under management.  They are offering investors the opportunity to invest in a newly listed trust that will gain exposure to a portfolio of mainly private credit investments and commercial property.  This a sector where more recently the banks have withdrawn some of their lending.

Key features of the investment:

  • Quality management team who have on average over 30 years’ experience, supported by a team of professionals involved in the origination and management of private credit
  • Flexibility to invest across the capital structure, including debt instruments with equity-style enhancements and direct minority equity stakes
  • The investment will provide quarterly income (7.00% per annum) with a medium risk profile for debt markets
  • The total targeted return is 8-10% per annum (includes the 7% per annum income)
  • Issue size: Up to $300m
  • Subscription price: $2.00 per unit
  • Expected ASX Code: MOT
  • Expected Listing Date: Friday, 26th April 2019
  • Bids Close: Friday, 22nd March 2019
  • Offer Closes: Friday, 5th April 2019

Outlined below is a diagram that illustrates where this investment lies in the corporate debt market.

Lonsec has also produced a report recommending this investment (click on the link below)

https://gammawealthgroup.box.com/s/xwslmcnkyo67ljze30jaqz1j8wk8shy1

Please click on the link below to access the PDS (Product Discloser Statement)

https://gammawealthgroup.box.com/s/bomqpx1k0c0ft5mjg3pdbx6hkixehn49

This investment may be suitable for those clients requiring higher income returns, with generally lower volatility and medium risk in the corporate debt market.  An exposure to this asset class could be part of a diversified investment portfolio.

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