Perpetual Credit Income Trust : PCI Monthly Investment Report - February 2022 amendment

6 April 2022

ASX Limited

ASX Market Announcements Office Exchange Centre

20 Bridge Street SYDNEY NSW 2000

Perpetual Credit Income Trust Correction to Monthly Investment Update

Perpetual Credit Income Trust (the Trust) (ASX: PCI) advises of a correction to the Monthly Investment Update (the Report) for the period ending February 2022 that was released on Monday, 21 March 2022. The total unitholder return since inception p.a. should be 1.1%, outperforming the benchmark by 0.7% instead of 0.7%, outperforming the benchmark by 0.4%. The distribution return should be 3.6% instead of 3.2%. An updated Report with the correct number is attached.

If shareholders or other interested parties have any queries regarding the Report, they can contact:

Karen Trau

Investor Relations, PCI P: 02 9229 3138

E:[e-mail]

Yours faithfully

Teresa Lee-Antonas Senior Client Manager (Authorising Officer)

AS AT 28 FEBRUARY 2022	AMOUNT
Number of holdings	118
Number of issuers	92
Running yield	4.4%
Portfolio weighted average life	33.0yyeeaarsrs
Interest rate duration	22 days

INVESTMENT UPDATE

February 2022

INVESTMENT OBJECTIVE

KEY TRUST INFORMATION 2

To provide investors with monthly income by investing in a diversified pool of credit and fixed income assets.

AS AT 28 FEBRUARY 2022

PORTFOLIO SNAPSHOT

ASX code: Structure: Listing date:

PCI

Listed Investment Trust 14 May 2019

AS AT 28 FEBRUARY 2022

AMOUNT

ASX unit price NTA per unit¹

$1.025 $1.103

Market capitalisation: Units on issue: Distributions: Management costs:

$411 million 400,684,921 Monthly 0.88% p.a.³

¹ Daily Net Tangible Asset (NTA) is available atwww.perpetualincome.com.au

Manager:

All figures are in Australian dollars (AUD), unless otherwise stated. All figures are unaudited and approximate. Past performance is not indicative of future performance. NTA figures are calculated as at the end of day on the last business day of the month.

Perpetual Investment Management Limited

Responsible Entity:

Perpetual Trust Services Limited

• 2 Perpetual Credit Income Trust ARSN 626 053 496.

• 3 Estimate inclusive of net effect of GST.

4

INVESTMENT PERFORMANCE

AS AT 28 FEBRUARY 2022

PCI Investment portfolio

Returns net of operating expenses

RBA Cash Rate

Excess returns Distribution return

1 MTH 0.0% 0.0% 0.0% 0.3%

3 MTHS 0.5% 0.0% 0.5% 1.0%

6 MTHS 1.1% 0.0% 1.0% 1.8%

1 YR

3 YRS P.A.

5 YRS P.A.

SINCE INCEP P.A.

3.3% - - 3.6%

0.0% - - 0.4%

3.2% - - 3.2%

3.8% - - 3.5%

4 Investment returns, net of management costs have been calculated on the growth of Net Tangible Assets (NTA) after taking into account all operating expenses (including management costs) and assuming reinvestment of distributions on the ex-date. Distribution return has been calculated based on the PCI investment portfolio return less the growth of NTA. Past performance is not indicative of future performance. Since inception return is from allotment on 8 May 2019. Investment return and index return may not sum to excess return due to rounding.

PORTFOLIO SUMMARY

RATINGS BREAKDOWN

Source: Standard & Poor's and Perpetual Asset Management Australia. Data is as at 28 February 2022. All figures are unaudited and approximate.

DISTRIBUTIONS CPU5

The table below shows the distribution in cents per unit for each distribution period in the respective financial year. The annual distribution return is 3.8%. This is in line with the Trust's target return of RBA Cash Rate +3.25% (net of fees) through the economic cycle. This is a target only and may not be achieved.

AS AT 28

AS AT 28 FEBRUARY 2022	1 MTH	3 MTHS	6 MTHS	1 YR	3 YRS P.A.	5 YRS P.A	SINCE INCEP P.A.
Total unitholder return	-3.4%	-3.2%	-4.2%	2.0%	-	-	1.1%
RBA Cash Rate	0.0%	0.0%	0.0%	0.0%	-	-	0.3%
Excess returns	-3.4%	-3.2%	-4.2%	2.0%	-	-	0.7%
Distribution return	0.3%	1.0%	1.8%	3.9%	-	-	3.6%

FEBRUARY	JUL	AUG	FYTD
2022
FY2020	0.40	0.40	0.39	0.37	0.36	0.37	0.37	0.35	0.33	0.30	0.31	0.30	4.26
FY2021	0.32	0.32	0.30	0.31	0.28	0.30	0.30	0.27	0.30	0.29	0.33	0.32	3.63
FY2022	0.32	0.32	0.31	0.32	0.31	0.35	0.35	0.36	-	-	-	-	2.63

TOTAL UNITHOLDER RETURN

6

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

5 Distributions are stated as cents per unit and have been rounded to two decimal places. Detailed distribution announcements are available on thePCI website and are stated in Australian dollars rather than cents per unit. Distribution return has been calculated based on the PCI investment portfolio return less the growth of NTA. Past performance is not indicative of future performance.

6 Total unitholder return - ASX unit price performance with reinvestment of distributions has been calculated on the growth of the ASX unit price and assumes reinvestment of distributions on the ex-date. Distribution return has been calculated based on the total unitholder return less the growth in the ASX unit price over the period. Past performance is not indicative of future performance. Since inception return is from listing on 14 May 2019, initial price used is the subscription price of $1.10. Unitholder return and index return may not sum to excess return due to rounding.

NTA PER UNIT VS ASX UNIT PRICE PERFORMANCE

SENIORITY BREAKDOWN

SECTOR ALLOCATION

Source: Bloomberg and Perpetual Asset Management Australia. Data is as at 28 February 2022. All figures are unaudited and approximate.

Source: Bloomberg and Perpetual Asset Management Australia. Data is as at 28 February 2022. All figures are unaudited and approximate.

PORTFOLIO UPDATE

The Trust's portfolio performance was flat in February, in line with the Reserve Bank of Australia (RBA) Cash Rate (benchmark). Over the 12 months to 28 February 2022, the Trust's portfolio returned 3.3%, outperforming the benchmark by 3.2%.

Income return was the most significant contributor to performance during February. The Trust's income was predominantly generated by coupon payments and interest income from portfolio exposure to non-financial corporate bonds and residential mortgage-backed securities (RMBS). Non-bank financials, domestic banks and property also contributed to income return. Throughout the recent volatility in financial markets, the Trust's robust income has more than offset the impact of credit spread widening. The portfolio's running yield was 3.8% at month end.

Widening credit spreads detracted from performance over the month. Spreads were impacted by Russia's invasion of Ukraine alongside expectations of accelerated monetary policy tightening. During February, domestic credit spreads were more resilient than offshore peers with US Dollar and, in particular, Euro denominated credit spreads widening sharply. The Trust's small exposure of 9.5% to foreign denominated credit detracted from performance during the month. While 84.5% of the portfolio is in Australian denominated assets and 6.0% cash as at 28 February 2022, the Manager retains the flexibility to invest in foreign denominated bonds which significantly broadens the investable universe and offer increased access to liquidity during stressed environments. All foreign denominated credit positions in the Trust have their currency exposure hedged. Financials - led by regional and offshore banks - were the most significant detractors from credit spread return during the month. Corporate spreads outperformed financials over the month which benefitted the Trust. The Trust remains heavily weighted towards corporate debt which is seen by the Manager as the sector offering the most attractive relative value and growth outlook.

Sector and risk allocations were broadly maintained over February. The Trust remains defensively positioned reflecting our cautious view of markets. This positioning has performed well recently, mitigating the effect of geopolitical and monetary policy uncertainty.

The Manager believes that the Trust is well positioned to weather increased volatility as a result of central bank tightening and geopolitical instability moving forward. The Manager believes that the outlook for credit spreads has cooled over recent months and is now slightly negative. Perpetual's proprietary credit outlook score examines valuation, macroeconomic factors, supply and demand alongside technical indicators to quantitatively assess the outlook for credit spreads. Slowing economic growth expectations and moderating demand for credit have contributed to the reduction in outlook over recent months.

It is important to recognise that while the outlook for credit spreads may not be as robust as prior periods, the Trust's running income remains the most substantial and predictable component of return. It is also worth reiterating that while the central bank tightening cycle may weigh on the outlook for credit spreads, the Trust's floating rate structure will benefit from rising interest rates as the running income increases. The Manager also expects the continued structural widening of spreads to present attractive entry points in the future and is well positioned to deploy capital as relative value opportunities are presented.

Issuer Profile - Omni Bridgeway Limited

The Manager continues to look for issuers offering competitive yields with a resilience to geopolitical, inflationary and central bank policy pressures. One such issuer which has been a part of the Trust's portfolio for a number of years is the ASX listed Omni Bridgeway corporation (OBL:ASX). Omni Bridgeway is a global market leader in providing litigation funding to insolvency and legal practitioners. The Manager has a longstanding relationship with the company and has supported their growth multiple rounds of debt financing.

The company has a strong balance sheet with its outstanding long-term debt almost fully covered by its cash position. The strength of the balance sheet gives the Manager confidence in the company's ability to meet its obligations throughout the life of its financial debt. As an unrated issuer, their debt offers what the Manager believes is competitive income for the level of risk. Navigating the universe of high yield and unrated debt can be difficult but the Manager relies on their rigorous due diligence and valuation processes to manage risk and identify attractive opportunities such as this.

HOW WE INVEST

The Table below illustrates the competitive yield offered by an Omni Bridgeway bond held in the Trust relative to common fixed income benchmark yields.

Yield %

Omni Bridgeway Limited 5.65% 08-JAN-2026

Bloomberg AusBond Composite (0+Y)

Australia Benchmark Bond - 10 Year

Australia Target Cash Rate

5.21 1.88 2.13 0.10

Source: Factset

Omni Bridgeway reported half yearly earnings during February and the Manager believes they are on track to continue to grow earnings from fund management and the realisation of a number of settlements. During the month, the credit spread on Omni Bridgeway's debt tightened marginally, in contrast to the broader credit market. This increased the value of the Trust's position and marginally contributed to performance.

This investment is emblematic of the kind of opportunities the Manager looks for; market leading companies with strong balance sheets, offering attractive yields and using their invested capital to grow efficiently. The Manager will continue to evaluate issues and opportunities in the high yield and unrated space in order to enhance the Trust's running yield while managing credit risk.

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INVESTOR COMMUNICATIONS

ThePCI website hosts a range of information including Monthly Investment Updates, Portfolio Manager insights, dividend history and educational resources. Themy investments section of the website also includes details for the Automic Investor portal, where you can elect to receive regular communications, periodic statements and updates electronically.