MCP Master Income Trust Initial Public Offer

The MCP Master Income Trust Initial Public Offer will provide investors with direct exposure to the Australian corporate loan market, a market which is dominated by regulated banks and is largely inaccessible to non-bank investors.

Through investments in and alongside wholesale funds managed by Metrics Credit Partners (MCP), investors will gain access to monthly cash income, reduced capital volatility and portfolio diversification.

Target Return

The Trust’s target return is the RBA Cash Rate plus 3.25% p.a. net of fees through the cycle with distributions intended to be paid monthly. The RBA cash rate is currently 1.50% so the target return is 4.75% p.a. net of fees.

Why Invest?

//An experienced and active management team with a proven track record

MCP is a specialist Australian debt fund manager and its Investment Team have extensive direct lending experience. This experience encompasses all aspects of originating, structuring, negotiating, executing and distributing corporate loans and managing portfolio risk.

//Monthly cash income with reduced capital volatility

Corporate loans have floating interest rates with lender protections resulting in stability of capital value and low loss rates. By investing in the corporate loan market, the Trust will target a return of the RBA Cash Rate plus 3.25% p.a. net of fees and intends to pay cash distributions monthly. The target return is only a target and may not be achieved.

//Superior risk-adjusted returns from a diversified portfolio

Australia’s corporate loan market offers attractive returns but is largely inaccessible to non-bank investors. The Trust offers direct, diversified exposure to this market.

//Portfolio diversification from an investment in Australian corporate fixed income

Fixed income is an important component of a balanced investment portfolio offering stable cash yields with reduced capital volatility. However, investors currently have limited domestic fixed income investment opportunities, and negligible opportunities to access the attractive risk-adjusted returns offered by direct lending to Australian corporates.

//Competitive fee structure and corporate structure to support initial and after-market trading

The Trust aims to charge base management fees equivalent to fees paid by wholesale investors.

Who is the MCP Master Income Trust for?

Fixed income is an important component of a balanced portfolio, and is an increasingly attractive asset class for investors seeking capital stability and regular income, building a more defensive portfolio.

The MCP Master Income Trust is targeting investors looking for regular monthly income without exposure to the volatility of the equity markets and ensuing risk of capital loss.

Investment Manager

As the investment manager of the Trust, MCP is a specialist fund manager providing expertise to investors seeking opportunities in credit and fixed income markets.

Since launching its initial fund, the Metrics Credit Partners Diversified Australian Senior Loan Fund, in June 2013, and then the Metrics Credit Partners Secured Private Debt Fund in November 2015, MCP has steadily grown its assets under management to in excess of $2 billion.

The Investment Team

Investors will have the benefit of having their funds managed by an experienced team with extensive skills and backgrounds in the origination and management of corporate debt assets (loans, bonds and associated products).

ANDREW LOCKHART

Andrew has over 30 years’ experience in funds management, banking and finance. His areas of expertise include corporate debt origination, portfolio and risk management and corporate restructuring. Andrew previously specialised in leverage and acquisition finance as well as corporate and institutional lending.

GRAHAM MCNAMARA

With in excess of 37 years’ in funds management and commercial banking, Graham has considerable experience in corporate debt origination, portfolio management, loan syndications, agency management and corporate banking.

JUSTIN HYNES

Justin has more than 20 years’ experience in funds management, commercial and investment banking. This has included considerable corporate debt origination and portfolio management experience. Justin has also specialised in leveraged and acquisition finance as well as corporate finance.

ANDREW TREMAIN

Andrew has in excess of 30 years’ experience in funds management, commercial and investment banking. This has included extensive corporate debt origination and portfolio management experience. Andrew previously specialised in leveraged and acquisition finance as well as loan syndications.

Video series

Key Dates

Lodgment of the PDS with ASIC

26/07/17

Offer opens

10/08/17

Broker firm offer closes (closing date)

12/09/17

General offer closes

19/09/17

Settlement

25/09/17

Expected date of the allotment of Units (allotment date)

26/09/17

Expected date for dispatch of holding statements

02/10/17

Trading of Units commences on the ASX

09/10/17

Proposed ASX code

MXT

The timetable is indicative only. The Trust reserves the right to vary the dates and times set out in the timetable subject to the Corporations Act and other applicable law. The Trust reserves the right to close the Offer early, extend the closing date or accept late applications without notifying any recipients of this PDS or any applicant. Investors who wish to submit an application are encouraged to do so as soon as practicable after the Offer opens.

Investment Strategy

The Trust’s Investment Strategy is to create a diversified exposure to Australian corporate loans generally reflecting market activity diversified by borrower, industry and credit quality. Through active portfolio risk management, MCP will seek to preserve investor capital.

The MCP Master Income Trust will be:

Diversified by borrowers

Lending to public and private companies and projects (approximately 50 individual investments immediately, with a near-term anticipated target of 75-100).

Diversified by industries

-Lending across industry sectors. -It is not intended that the Trust will invest in the banking sector (i.e. regulated banks that otherwise issue public debt securities and hybrids or industries that conflict with MCP’s Environmental Social and Governance (ESG) policy).

Diversified by credit quality

Lending across the credit spectrum is reflective of activity in the Australian corporate loan market. Borrowers will be Australian domiciled (>80%) with investments in debt products that are typical in the Australian corporate loan market.

Distributions

It is intended that the first distribution will be paid to Unitholders following the quarter ending 31 December 2017 and then monthly thereafter. It is intended that the Responsible Entity will establish a Distribution Reinvestment Plan which will allow Unitholders to reinvest monthly income distributions.

Disclaimer and disclosure

This website is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of MCP Master Income Trust (the Trust). This website is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (MCP) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the current product disclosure statement (PDS) of the Trust and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor MCP guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor MCP gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of MCP as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

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