M&G Credit Income Investment Trust plc (MGCI) 
M&G Credit Income Investment Trust plc: Annual Financial Report 
28-Apr-2021 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 
(MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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M&G Credit Income Investment Trust plc 
 
Annual Report and audited Financial Statements for the year ended 31 December 2020 
 
The full Annual Report and Accounts will shortly be available via the Company's website at www.mandg.co.uk/ 
creditincomeinvestmenttrust or by contacting the Company Secretary at mandgcredit@linkgroup.co.uk. 
 
The Directors present the results of the Company for the year ended 31 December 2020. 
 
The third party research commissioned by the Company from Kepler, published on 26 March 2021, can be found at the 
following link: https://www.trustintelligence.co.uk/articles/fund-profile-m-g-credit-income-mar-2021 
Company summary 
M&G Credit Income Investment Trust plc (the "Company") was incorporated on 17 July 2018 as a public company limited by 
shares. Admission to the London Stock Exchange's (LSE) main market for listed securities and dealings in its Ordinary 
Shares commenced on 14 November 2018. The Company is an investment trust within the meaning of section 1158 of the 
Corporation Tax Act (CTA) 2010. 
Financial highlights 
Key data 
 
                                          As at       As at 
                                          31 December 31 December 
                                          2020        2019 
Net assets (GBP'000)                        146,628     132,232 
Net asset value (NAV) per Ordinary Share  101.40p     101.72p 
Ordinary Share price (mid-market)         92.00p      106.00p 
(Discount)/Premium to 
                                          (9.27)%     4.21% 
NAVa 
Ongoing charges figurea                   0.87%       0.93%b 
Returns and dividends per Ordinary Share 
 
                                          Year ended  Period b ended 
 
                                          31 December 31 December 
                                          2020        2019 
Capital return                            1.3p        2.7p 
Revenue return                            2.9p        2.6p 
NAV total returna                         3.7%        5.6% 
Share price total returna                 (9.7)%      8.2% 
First interim dividend                    0.85p       2.09p 
Second interim dividend                   0.77p       1.65pc 
Third interim dividend                    0.71p       - 
Fourth interim dividend                   1.95pc      - 
Total dividends declared                  4.28p       3.74p

a Alternative performance measure. Further information can be found on pages 108 to 109 of the full Annual Report and Accounts. b From the date of Initial Public Offering (IPO) 14 November 2018. c Paid after the year/period end. Please see note 7 for further information.

Chairman's Statement

Performance

I am delighted to report that your Company has exceeded the performance originally targeted at our Initial Public Offering (IPO). This target was to achieve an annualised dividend yield of LIBOR plus 2.5% (on the 100p issue price) from launch until 31 December 2019 and of LIBOR plus 4% (on the opening net asset value (NAV) per Ordinary Share) thereafter. Your Company's NAV at its launch on 14 November 2018, being the gross proceeds of the IPO less the IPO expenses, was 98.38p per Ordinary Share. The opening NAV on 1 January 2020 was 101.72p per Ordinary Share and the NAV on 31 December 2020 was 101.40p per Ordinary Share. Including dividends paid, the annualised NAV total return was 4.4% since launch although the NAV total return for the year to 31 December 2020 was 3.7%, reflecting the effects of the COVID-19 pandemic.

Your Company navigated the difficult conditions of 2020 with great success and with no material deterioration to the credit quality of its portfolio, showing our Investment Manager's skill in delivering on its objective of low asset value volatility while building our ability to pay a regular and attractive level of income. The results showed the Company's ability to produce high risk-adjusted returns from a predominately investment-grade portfolio.

Having begun the year with relatively benign economic conditions, 2020 will be remembered for the impact of the COVID-19 pandemic on economies and society. The first half of the year showed NAV per Ordinary Share falling to 93.69p on 31 March 2020 as a result of the indiscriminate market sell-off before recovering to finish at 97.23p on 30 June 2020. The Company had been defensively positioned going into the March sell-off which allowed our Investment Manager to benefit from the market weakness by purchasing attractively priced public corporate bonds and then realising gains as the market recovered.

During the second half of the year credit markets recovered steadily and our Investment Manager was able to take advantage of a reopened flow of attractively priced private debt opportunities. By 31 December 2020 the amount of private debt instruments in your Company's portfolio, including irrevocable commitments, had increased to 49.25% (versus 27.41% at 31 December 2019) with an additional investment of some 10% in illiquid public assets which are intended to be held to maturity. These are largely higher-yielding assets which will support the payment of the regular quarterly dividend increase already announced in respect of the 2021 financial year.

The Board is of the view that the portfolio is now appropriately positioned with regard to its dividend target set at launch. In accordance with the agreement previously notified to Shareholders, the management fee paid by the Company to the Investment Manager will increase with effect from 1 April 2021 from 0.5% to 0.7% per annum of the Company's net asset value.

Share issuance and discount management

Your Directors believe that it is in the interests of shareholders for the Company to increase its assets under management over time as this should reduce its ongoing charges figure and provide greater market liquidity and diversification for holders. On 4 June 2020, given the favourable opportunities arising from the market dislocation due to the COVID-19 pandemic and the reopening of the private debt markets, the Company announced that it had issued and placed 14,745,770 Ordinary Shares at a price of 97.0p per Ordinary Share, raising GBP14.2 million net of expenses. This represented a premium to the then last published NAV (adjusted for the payment of the first quarter dividend) of 1.98%.

Subsequently, the Company's Ordinary Shares began to trade at a discount to NAV. Your Directors believe that this is not in the best interest of shareholders, both because the Company is unable to issue new shares and because existing shareholders are unable to value their holdings at or near to NAV. Accordingly, the Company announced on 18 November 2020 that it had given instructions to Winterflood Securities Limited to purchase the Company's Ordinary Shares, subject to certain pre-determined parameters and in accordance with the Company's discount management policy. As at 31 December 2020, 140,000 shares had been purchased and were held in treasury.

On 31 December 2020 the Ordinary Share price was 92.00p, representing a 9.27% discount to NAV as at that date.

Your Board is continuing to work with the Investment Manager in regard to the share price discount. To this end, the Company has commissioned third party research from Kepler Trust Intelligence which can be viewed at https:// wwwtrustintelligence.co.uk/investor/articles/fund-researchinvestor-m-g-credit-income-retail-mar-2021. In addition, the Investment Manager has held many meetings with existing and potential investors to increase demand for the Company's shares. The most recent investor presentation can be viewed on the Company's website at www.mandg.co.uk/investor/funds/ credit-income-investment-trust/gb00bfyyl325/. We have confidence that Winterflood will continue to purchase the Company's Ordinary Shares when it is effective to do so and the Board continues to consider other options available to it.

Dividends

Your Board is pleased that the Company paid dividends in respect of the year ended 31 December 2020 in accordance with the target set at launch. The Company paid quarterly dividends totalling 4.28p per Ordinary Share in respect of the year as a whole. This represented a dividend yield of LIBOR plus 4% on the opening NAV as at 1 January 2020, adjusted for the last dividend paid on 26 February 2021; and a dividend yield of 4.7% on the Ordinary Share price on 31 December 2020. Total dividends paid since launch have been fully covered by earnings derived from income and capital g ains.

Your Board believes that it should pay dividends from income and prior capital gains (including accumulated capital gains from previous years). It therefore proposes to continue hereafter with three, level quarterly interim dividends in respect of each financial year plus a variable, fourth interim dividend to be determined after each year end, which will take into account the net income over the whole financial year and, if appropriate, any capital gains.

The Company proposes to increase the first three interim quarterly dividends to be paid in respect of the 2021 financial year to an annual rate of LIBOR plus 3%, calculated by reference to the opening NAV as at 1 January 2021, adjusted for the payment of the last dividend in respect of the prior year.

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