M&G Credit Income Investment Trust Plc Reports Annual Financial Results for 2023

M&G Credit Income Investment Trust plc (M&G CIIT) has disclosed its annual financial outcomes for the year ending 31 December 2023. The Trust achieved its target of delivering an annualised dividend yield of SONIA plus 4%, coupled with an increase in its net asset value (NAV). It was also awarded the title of Best Debt Income Investment Trust for 2023 by UK Investor Magazine.

The company reported a NAV per ordinary share rise from 92.56p at the start of 2023 to 94.07p by the year's end, adjusted for dividends. This indicates a total NAV return of 10.4% for the year, surpassing the benchmark return of 9.0%. This outperformance is attributed to tighter credit spreads, capital growth, and robust income returns from higher yielding private assets. Despite challenges, the portfolio's strategic use of interest rate hedges effectively shielded it from interest rate hikes and rate-driven volatility.

The Trust's portfolio was 54% invested in private assets, with an additional 10% in illiquid publicly listed assets intended for maturity hold. It bought back 1,613,783 shares to maintain share price proximity to NAV, reflecting a 4.2% discount to NAV as of 31 December 2023. Amendments to the Articles of Association have deferred the liquidity opportunity to 2028, providing an extended window for capitalizing on volatile market opportunities. Throughout 2023, the Trust disbursed four quarterly interim dividends, maintaining a yield of 8.6% as of the year's end.

The outlook for fixed income markets remains positive, with all-in bond yields favorably compared to other asset classes. Despite some challenges in deploying capital, the Trust’s management strategy focuses on active management to find value in credit markets.