M&G Credit Income Investment Trust Annual Report Highlights

M&G Credit Income Investment Trust plc has released its annual financial report for the year ending 31 December 2024. The company's net asset value (NAV) total return was 8.08%, slightly under its benchmark of 9.50%. The portfolio's defensive positioning resulted in underperformance compared to the ICE BofA European Currency Non-Financial High Yield 2% Constrained Index, but outperformed investment-grade indices. The year witnessed write-downs due to specific credit distress.

At year-end, 52% of the portfolio was invested in private assets, complementing a strategy aimed at risk-adjusted returns. The issuance of new shares occurred, with shares trading at a 1.6% premium to NAV on 31 December 2024. Dividends based on SONIA plus 4% were paid, equating to a yield of 8.8%.

Looking ahead, the company adopts a cautious investment strategy in light of geopolitical risks. The flexibility to invest across public and private sectors remains pivotal for pursuing attractive returns. M&G emphasizes focusing on credit quality over yield.