M&G Credit Income Investment Trust Reports Q3 Performance

M&G Credit Income Investment Trust reported a 1.85% NAV total return for Q3, slightly underperforming the benchmark's 2.05%. The trust maintained a defensive portfolio stance, waiting for favorable conditions to add risk. Global financial markets showed resilience, spurred by easing trade tensions and strong corporate earnings, despite inflation and fiscal concerns.

The trust increased its market capitalization by £10.7m and invested in M&G's Investment Grade ABS fund, favoring high credit quality. New issues, such as bonds from Ford and Oma Saastopankki, were selected for their appealing spreads amidst expensive credit markets. Private market investments totaled £4.2m, focusing on secure loans and regulatory capital deals.

Outlook remains challenging due to geopolitical risks and tight credit spreads. The trust plans to maintain its cautious posture, prioritizing credit fundamentals over yield, in anticipation of potential market corrections.