Note: ELF is an open-ended fund managed by M&G which invests in leveraged loans issued by, generally, substantial private companies located in the UK and Continental Europe. ELF is not rated and the Investment Manager has determined an implied rating for this investment, utilising rating methodologies typically attributable to collateralised loan obligations. On this basis, 78% of the Company's investment in ELF has been ascribed as being investment grade, and 22% has been ascribed as being sub-investment grade. These percentages have been utilised on a consistent basis for the purposes of determination of the Company's adherence to its obligation to hold no more than 30% of its assets in below investment grade securities.
Top 20 holdings %
as at 30 June 2021
Open-ended fund managed by M&G that invests in leveraged loans issued by, generally,
M&G European Loan Fund substantial private companies located in the UK and Continental Europe. The fund's objective is
to create attractive levels of current income for investors while maintaining relatively low
12.16% volatility of NAV. (Private)
Sonovate Limited Var.
Rate 12 Apr 2022 Bilateral loan to a company providing companies in the recruitment industry with an integrated
service that incorporates placement management, invoicing and financing. (Private)
Atlas 2020 1 Trust Var. Floating-rate, senior tranche of a bilateral RMBS transaction backed by a pool of Australian
Rate 30 Sep 2050 equity release mortgages. (Private)
Westbourne 2016 1 WR
Senior Var. Rate 30 Sep Westbourne provides working capital finance to SMEs in the UK. The company is focused on small
2023 borrowers and has employed an advanced technology platform for the application, underwriting
and monitoring of loans. (Private)
Delamare Finance FRN
1.279% 19/02/2029 Floating-rate, senior tranche of a CMBS secured by the sale and leaseback of 33 Tesco
superstores and 2 distribution centres. (Public)
Finance for Residential High grade (AA/Aa3), fixed-rate bond backed by cash flows from housing association loans.
Social Housing 8.569% 4 (Public)
Hall & Woodhouse Var.
Rate 30 Dec 2023 Bilateral loan to a regional UK brewer that manages a portfolio of 219 freehold and leasehold
Signet Excipients Var. Fixed-rate loan secured against two large commercial premises in London, currently leased to 2
Rate 20 Oct 2025 FTSE listed UK corporations. (Private)
Funding 2017-1 FRN High grade ABS (AAA). UK Creditcard. Securitisation of a portfolio of designated consumer
0.8053% 15 Dec 2027 credit card, store card and instalment credit accounts initially originated or acquired by
NewDay Ltd in the UK. (Public)
Regenter Myatt Field PFI (Private Finance Initiative) floating-rate, amortising term loan relating to the already
North Var. Rate 31 Mar completed refurbishment and ongoing maintenance of residential dwellings and communal
2036 infrastructure in the London borough of Lambeth. (Private)
Hammond Var. Rate 28 Secured, bilateral real estate development loan backed by a combined portfolio of 2 office
Oct 2025 assets leased to an underlying roster of global corporate tenants. (Private)
Project Driver TL Var. Senior term loan to a provider of hire purchase financing on used domestic motor vehicles to
Rate consumers in the UK. (Private)
RIN II FRN 1.778% 10
Sep 2030 Mixed CLO (AAA). Consists primarily of senior secured infrastructure finance loans managed by
RREEF America L.L.C. (Public)
Dragon Finance FRN Floating-rate, subordinated tranche of a securitisation of the sale and leaseback of 10
1.3665% 13 Jul 2023 supermarket sites sponsored by J Sainsbury plc ('Sainsbury's'). (Public)
Finance for Residential
Social Housing 8.369% 4
Oct 2058 High grade (AA), fixed rate bond backed by cash flows from housing association loans. (Public)
Lewisham Var. Rate 12 Senior secured, fixed-rate term loan funding the costs of acquiring and developing a site in
Feb 2023 Lewisham to provide 758-bed purpose-built student accommodation and 67 affordable housing
NewRiver REIT 3.5% 7
Mar 2028 NewRiver REIT PLC operates as a real estate investment trust investing in retail properties
throughout the United Kingdom. Fixed, callable bond. Senior unsecured. (Public)
Marston's Issuer FRN Marston's PLC is a leading independent brewing and pub retailing business. Marston's Issuer PLC
1.7083% 15 Oct 2031 operates as a special purpose entity on behalf of Marstons PLC, formed for the purpose of
issuing debt securities to repay existing credit facilities, refinance indebtedness, and for
1.07% acquisition purposes. (Public)
Ripon Mortgages FRN High Grade ABS (AA+/Aaa). UK RMBS. The portfolio comprises buy-to-let loans originated by
1.2814% 20 Aug 2056 Bradford and Bingley and Mortgage Express, secured over residential properties located in
England and Wales. (Public)
Hammerson 6% 23 Feb Hammerson plc develops, builds, and manages commercial buildings, offices, and shopping centres
2026 mainly operating throughout the United Kingdom, but also with investment and development
activities in France and Germany Senior unsecured, bullet bond. (Public)
Interim management report and statement of directors' responsibilities
Interim management report
The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal factors that could impact the remaining six months of the financial period are set out in the Chairman's statement and the Investment Manager's report.
The principal risks faced by the Company during the remaining six months of the year can be divided into various areas as follows:
* Market risk;
* Credit risk;
* Investment management performance risk;
* Liquidity risk;
* Dividend policy risk;
* Operational risk;
* Regulatory, legal and statutory risk: changes in laws, government policy or regulations; and
* Sustainability risk.
These are consistent with the principal risks described in more detail in Company's Annual Report and Financial Statements for the year ended 31 December 2020, which can be found in the Strategic Report on pages 17 to 22 and in note 14 on pages 95 to 98 and which are available on the website at: www.mandg.co.uk/creditincomeinvestmenttrust The Board continues to review the societal and economic impacts of governmental responses to theCOVID-19 pandemic, as well as the operational risks that the pandemic poses to the Company and its service providers. The duration and ultimate impact of the pandemic remains difficult to predict and the Board will continue to monitor and report on material developments on an ongoing basis.
For further information on the impact of COVID-19 on the Company's principal risks and uncertainties, please refer to the Investment Manager's report.
The Investment Manager and the Company's other third-party service providers have implemented appropriate business continuity plans and remain fully operational whilst their staff continue to predominantly work from home. Notwithstanding the overarching impact of COVID-19, in the view of the Board, the principal risks facing the Company since the previous report remain unchanged and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.
Going concern In accordance with the latest guidance issued by the Financial Reporting Council, the Directors have undertaken and documented a rigorous assessment of whether the Company is a going concern. The Directors considered all available information when undertaking the assessment.
The Directors believe that the Company has appropriate financial resources to enable it to meet its day-to-day working capital requirements and the Directors believe that the Company is well placed to continue to manage its business risks.
In assessing the going concern basis of accounting, the Directors have also considered the COVID-19 pandemic and the impact this may have on the Company's investments and the Company's NAV.
The Directors consider that the Company has adequate resources to continue in operational existence for the next 12 months. For this reason they continue to adopt the going concern basis of accounting in preparing these condensed financial statements. Related party disclosure and transactions with the Investment Manager M&G Alternatives Investment Management Limited, as Investment Manager, is a related party to the Company. The management fee due to the Investment Manager for the period is disclosed in the condensed income statement and in note 3, and amounts outstanding at the period end are shown in note 8. The Company holds an investment in M&G European Loan Fund which is managed by M&G Investment Management Limited. At the period end this was valued at GBP17,458,741 and represented 12.16% of the Company's investment portfolio.
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