- The MA Credit Income Trust (“Fund”, “MA1”) will be MA Financial’s first listed investment trust (ASX: MA1)
- Expands investors’ access to fast-growing asset backed lending space locally and globally
- The Fund targets a risk-adjusted return of the RBA Cash Rate + 4.25% p.a. over a rolling 12-month period (pre-tax, net of management fees and costs)
- MA Financial has $9.9bn assets under management1, with $4.6bn of that invested in private credit.2
Sydney, 20 January 2025 – Global alternative asset manager MA Financial Group (ASX: MAF) has announced the launch of the MA Credit Income Trust (ASX: MA1), its first listed investment trust (LIT).
MA Financial has secured $171m in cornerstone commitments and today will formally lodge with the Australian Securities and Investments Commission the Product Disclosure Statement (PDS) for MA1, ahead of a pre-listing offer period to commence on Tuesday 28 January 2025. The Fund is expected to list on the ASX on Wednesday 5 March 2025.
The Fund offers investors access to a large, diversified portfolio of MA Financial’s flagship private credit strategies which have delivered consistent returns and outperformed traditional benchmarks for fixed income investments since inception3.
Aiming to provide investors with consistent monthly distributions with a focus on capital preservation, the Fund targets a return of the RBA Cash Rate + 4.25% per annum over a rolling 12-month period (pre-tax, net of management fees and costs) via exposure to a diversified portfolio of Australian, New Zealand and global credit investments.
Investors in the Fund benefit from exposure to an underlying $3.7bn portfolio of 165 private credit investments, diversified across lending strategies in which MA Financial has a proven track record and specialist capabilities: direct asset lending, asset backed lending and direct corporate lending.
Chris Wyke, MA Financial’s Joint Chief Executive Officer said: “The launch of the MA Credit Income Trust marks an important step for MA Financial, as we continue to broaden our offering to clients and build our presence as a leading private credit asset manager.
We’ve seen enthusiastic initial demand from the market, with the commitment of $171m in cornerstone capital on the way to our $300m target for the impending offer period from 28 January to 10 February 2025.
At the core of our culture is alignment of interests with our investors. Investors will join MA Financial and our staff who have co-invested over $190m in all MA Financial private credit funds, including $160m in the underlying private credit funds from which MA1 obtains its investment exposure."
Frank Danieli, Managing Director and Head of Credit Investments and Lending at MA Financial said: “MA Financial’s private credit investment philosophy is based around avoiding losers, not picking winners. This mindset informs our approach to selecting and structuring investments, constructing our portfolios, monitoring positions and managing risk.
In developing this Fund in consultation with our key investors and industry stakeholders, we’ve prioritised two key aspects critical to them, being transparency and liquidity. These are fundamental to the investment proposition.
The Fund introduces asset backed lending as what we suggest is a critical component of the investment mix, providing a missing piece for Australian investors, and also what we believe to be the next frontier of private credit globally.”
Visit the MA1 webpage for more information.
- As at September 2024.
- As at June 2024.
- Refer to MA1’s PDS for information on the underlying portfolios and the respective performance of the strategies. Past performance is not an indicator of future performance.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the MA Credit Income Trust ARSN 681 002 531 ("the Fund"). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).
This webpage has been prepared by MA Investment Management Pty Ltd (“MA”) as a representative of MAAM RE Ltd AFSL 335783 (“MAAM RE”) to provide you with general information only. In preparing this webpage, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Because of that, before making an investment decision you should consider the appropriateness of this information having regard to those objectives, situation and needs. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither MA, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement (“PDS”) available at mafinancial.com/invest/private-credit/ma-credit-income-trust/ and Target Market Determination (“TMD”) available at www.eqt.com.au/insto/ and consider both the PDS and TMD before making a decision about whether to invest in this product.
Neither the Responsible Entity nor any MA Financial group entity guarantees repayment of capital or any particular rate of return from the Fund. All opinions and estimates included in this document constitute judgments of MA as at the date of this webpage and are subject to change without notice. Statements contained in this webpage that are not historical facts are based on expectations, estimates, projections, opinions and beliefs of MA as at the date of this webpage. Such statements involve known and unknown risks, uncertainties and other factors, and should not be relied upon in making an investment decision. Any references in this webpage to targeted or projected returns of the Fund are targets only and may not be achieved. Investment in the Fund is subject to risk including possible delays in payment or loss of income and principal invested. This information is intended for recipients in Australia only.
The address and telephone details for MA and MAAM RE are Level 27, Brookfield Place, 10 Carrington Street, Sydney NSW 2000 and +61 2 8288 5594. The Responsible Entity’s address and telephone details are Level 1, 575 Bourke Street, Melbourne VIC 3000 and +61 3 8623 5000. MA's directors and employees and associates of each may receive remuneration in respect of advice and other financial services provided by the Responsible Entity in relation to the Fund. The Responsible Entity has entered into various arrangements with MA in connection with the management of the Fund. In connection with these arrangements MA may receive remuneration or other benefits in respect of the financial services it provides, including a management fee of 0.90% per annum of the portfolio value of the Fund attributable to direct credit investments. MA Financial group entities also receive management and performance fees of up to 1.35% per annum from managing the underlying investment vehicles indirectly invested into by the Fund.
This document is issued by the Responsible Entity on a confidential basis and no part of this material may be reproduced or disclosed, in whole or in part without the prior written consent of the Responsible Entity.
