Perpetual Limited · ASX:PPT
Perpetual — Perpetual Credit Income Trust — Investor Presentation (March 2020)
16 slides from Perpetual's investor presentation, Mar 17, 2020
Slide 1: Perpetual Credit Income Trust
PERPETUAL CREDIT INCOME TRUST 17 March 2020
Slide 2: Important Note
IMPORTANT NOTE This presentation has been prepared by Perpetual Investment Management Limited ABN 18 000 866 535 AFSL 234426 (PIML or Perpetual Investments) and issued by Perpetual Trust Services Limited ABN 48 000 142 049 AFSL 236648 (PTSL). PTSL is the responsible entity and issuer of the Perpetua
Slide 3: Portfolio Managers and Agenda
PORTFOLIO MANAGERS AGENDA │Portfolio Manager Update MICHAEL KORBER Head of Credit & Fixed Income Portfolio Manager: │Key Performance Data Perpetual Credit Income Trust Perpetual Pure Credit Alpha │Questions 37 years experience, 14 years at Perpetual ANNE MOAL Senior High Yield Analyst Portfolio Mana
Slide 4: Perpetual Credit Income Trust (ASX: PCI) Investment Objective and Guidelines
PERPETUAL CREDIT INCOME TRUST (ASX: PCI) Investment Objective • To provide investors with monthly income by investing in a diversified pool of credit and fixed income assets. Target Return • Total return of RBA Cash Rate plus 3.25% per annum (net of fees) through the economic cycle1. Investment guid
Slide 5: Elevated Market Volatility Due to Uncertainty of Coronavirus (COVID-19)
ELEVATED MARKET VOLATILITY DUE TO UNCERTAINTY OF CORONAVIRUS (COVID-19) PRIOR TO 29 FEBRUARY 2020, PCI WAS TRADING AT AN AVERAGE PREMIUM TO NET TANGIBLE ASSETS (NTA) OF 2.83% SINCE LISTING $1.20 NTA has remained relatively stable $1.15 $1.10 $1.05 $1.00 $0.95 $0.90 May 2019 Jun 2019 Jul 2019 Aug 201
Slide 6: Potential Risks of COVID-19 on the Portfolio
POTENTIAL RISKS OF COVID-19 ON THE PORTFOLIO Potential risks Portfolio management and position as at 13 March 2020 Market and economic risks: • Diversified portfolio of credit and fixed income securities across • Supply chain issues as people are not able to perform issuers, sectors, asset types. th
Slide 7: Potential Risks of COVID-19 on the Portfolio
POTENTIAL RISKS OF COVID-19 ON THE PORTFOLIO Potential Risks Portfolio management and position as at 13 March 2020 Interest rate risk • Aim to build a portfolio in which overall interest rate exposure is • In March, RBA cut rates to 0.50% continuing the “lower floating and duration is relatively sho
Slide 8: Portfolio Remains Conservatively Positioned
PORTFOLIO REMAINS CONSERVATIVELY POSITIONED SECTOR ALLOCATION Portfolio position as at 13 March 2020 • Portfolio includes 86 holdings across 64 issuers 1.9% 1.5% 1.5% 0.3% 2.6% • Issuance by corporations including: 4.8% o Investment grade and sub-investment grade / unrated corporate bonds and floati
Slide 9: Portfolio Remains Conservatively Positioned
PORTFOLIO REMAINS CONSERVATIVELY POSITIONED AS AT 29 FEBRUARY 2020 SENIORITY BREAKDOWN RATINGS BREAKDOWN 4.8% 2.6% 0.8% 9.8% 61.2% 34.0% Senior debt AA and above 32.0% A Subordinated debt BBB 45.7% BB+ and lower Deeply subordinated debt Unrated Cash 9.2% As at 13 March 2020, 58.8% of the portfolio w
Slide 10: Most of the Portfolio Is Australian Domiciled
MOST OF THE PORTFOLIO IS AUSTRALIAN DOMICILED AS AT 29 FEBRUARY 2020 CURRENCY BREAKDOWN GEOGRAPHIC BREAKDOWN 6.1% 4.0% 1.6% 6.4% Australian Dollar Australia US Dollar Europe (including UK) North America Asia 93.9% 88.0% Non-Australian dollar exposures are hedged to the Australian dollar. As at 13 Ma
Slide 11: Dynamic Investment Strategy and a Broad Mandate
DYNAMIC INVESTMENT STRATEGY AND A BROAD MANDATE DIVERSIFICATION ACROSS ASSET TYPE, CREDIT QUALITY, MATURITIES, COUNTRIES AND ISSUERS Issued by property trusts Issued by financial Corporate bonds and floating rate notes Issued by banks and infrastructure corporations groups Non-investment grade Inves
Slide 12: Typical Capital Structure of a Company
TYPICAL CAPITAL STRUCTURE OF A COMPANY Focus on assets that provide: • High coupons • Capital stability Over 60% of the portfolio is held in senior debt as at 13 March 2020. PCI has a diversified allocation to loans and bonds with high quality borrowers spread across sectors 12 Source: Perpetual Inv
Slide 13: Key Performance Data
KEY PERFORMANCE DATA AS AT 29 FEBRUARY 2020 DISTRIBUTIONS CPU • Excess returns over the RBA Cash rate since inception • Designed to provide monthly income to investors INVESTMENT PERFORMANCE • Distributions in line with the Trust’s target return1 objective of the RBA Cash Rate plus 3.25% p.a. (net o
Slide 14: Key Performance Data: Total Unitholder Return
KEY PERFORMANCE DATA AS AT 29 FEBRUARY 2020 TOTAL UNITHOLDER RETURN Total unitholder return reflects the movement in the unit price on the ASX and assumes reinvestment of distributions. The total unitholder return has fallen due to market volatility. 14 Source: PCI Monthly Report February 2020
Slide 15: Continuing to Keep Investors Informed
CONTINUING TO KEEP INVESTORS INFORMED AVAILABLE ON THE COMPANY WEBSITE Monthly View daily Latest insights investment NTA from reports announcements the Manager “The best way to make money? Don’t lose it” Michael Korber, Livewire Watch now www.perpetual.com.au/income 15
Slide 16: Thank You
NATHAN BOROUGHS THANK YOU NSW and ACT State Manager +61 466 775 961 nathan.boroughs@perpetual.com.au Contact your local Perpetual Investments TIM MCCALLUM State Manager WA State Manager +61 411 209 403 tim.mccallum@perpetual.com.au DANIEL MOORE VIC/SA/NT/TAS State Manager +61 400 032 819 daniel.moor
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