Author: lvc-admin

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Dividend Stocks

Blackstone Has Built Itself a Solid Reputation as a Go-To Firm in the Alternative Assets Segment

Business Strategy and Outlook

Blackstone has built a solid position in the alternative asset-management industry, utilizing its reputation, broad product portfolio, investment performance track record and cadre of dedicated professionals to not only raise massive amounts of capital but sustain the reputation it has built for itself as a “go-to firm” for institutional and high-net-worth investors looking for exposure to alternative assets. Unlike the more traditional asset managers, who have had to rely on investor inaction (driven by either good fund performance or investor inertia/uncertainty) to keep annual redemption rates low, the products offered by alternative asset managers can have lockup periods attached to them, which prevent investors from redeeming part or all of their investment for a prolonged period of time.

Financial Strength

Blackstone’s business model depends heavily on having fully functioning credit and equity markets that will allow its investment funds to not only arrange financing for leveraged buyouts and/or additional debt issuances for the companies it operates but cash out of them once they’ve run their course. The company entered 2021 with $5.7 billion in longer-term debt (on a principal basis) on its books, with 56% of that total coming due during 2030-50. The company also has a $2.25 billion revolving credit facility (which expires in November 2025) but had no outstanding balances at the end of June 2021.

Blackstone should enter 2022 with a debt/total capital ratio of 44%, debt/EBITDA (by our calculations) at 1.3 times, and interest coverage of more than 25 times. On the distribution front, share repurchases have been rare over the past decade, with the company repurchasing (net of issuances) less than $2 billion of stock (most of which was bought back in the past three calendar years). During the first half of 2021, Blackstone repurchased 3.2 million shares of common stock for $289 million. Dividend payments, meanwhile, exceeded $21 billion during 2011-20 and are expected to account for 85% of distributable earnings annually going forward.

Bulls Say’s

  • Blackstone, with $499 billion in fee-earning AUM at the end of June 2021, is a “go-to firm” for institutional and high-net-worth investors looking for exposure to alternative assets.
  • The company’s ever-increasing scale, diversified product offerings, long track record of investment performance and strong client relationships position the firm to perform well in a variety of market conditions.
  • Customer demand for alternatives has been increasing, with institutional investors in the category limiting the number of providers they use—both positives for Blackstone’s business model.

Company Profile 

Blackstone is one of the world’s largest alternative asset managers with $684 billion in total asset under management, including $499 billion in fee-earning asset under management, at the end of June 2021. The company has four core business segments: private equity (27% of fee-earning AUM, and 31% of base management fees, during 2020); real estate (32% and 39%); credit & insurance (25% and 15%); and hedge fund solutions (16% and 15%). While the firm primarily serves institutional investors (87% of AUM) it does serve clients in the high-net-worth channel (13%). Blackstone operates through 25 offices located in the Americas (8), Europe and the Middle East (9), and the Asia-Pacific region (8).

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

PGF Dividend Uplift Offers Attractive Yield

Young female explaining new idea to her colleague in creative office.

Last trade price of PM Capital is A$ 1.49. Their Outstanding shares is 390.11 Million. PGF’s provides Public Float which is 279.25 Million. PM Capital Global Earnings Per Share (EPS) is $0.415 while the Price Earning ratio is 3.59 percent. 

Currently, PM Capital’s Annual Yield is 5.03 percent while their Annual revenue TTM is $218.56 Million.

On 24th September 2021, Net Tangible Asset backing per ordinary share before tax accruals is $1.63 while NTA after tax is $1.47. Gross Dividend yield per annum is 9.6 percent.  

The Company also announced that due to its strong profits reserve position, it intends to maintain a minimum dividend of 5.0cps for both the interim and final dividend for FY22, representing a full year FY22 dividend of at least 10cps. As at 30 June 2021, the Company has 5 years dividend coverage at 10cps.

On 12 August 2021, PM Capital Global Opportunities Fund ((PGF)) announced a final dividend for FY21 of 5.0cps, fully franked, a 100% increase on the FY20 final dividend.

The increased dividend announcement represents a significant uplift in yield. Based on the share price at the close of 19 August 2021, the full year dividend declared for FY21 represented a dividend yield of 4.8%. The forecast FY22 dividend would represent a yield of 6.4%, fully franked, which is strong for a global equity focused LIC.

Company Profile 

PM Capital Global Opportunities Fund Ltd. engages in investing in a portfolio of listed securities across global securities markets. Its investment objective is to increase the value of its portfolio by providing long term capital growth. The company was founded on October 1, 2013 and is headquartered in Sydney, Australia.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
IPO Watch

Freshworks becomes a first Indian SaaS start-up to get listed at NASDAQ

This IPO was led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. Venture capital firm Accel Partners and New York-based technology investment giant Tiger Global Management were early investors in the company.

Freshworks Inc. made a stellar debut on NASDAQ exchange on 22 September, 2021, Wednesday. With this, the company becomes the first Indian ‘SaaS’ company and the first unicorn to be listed on the NASDAQ exchange.

The company was valued at $12.2 billion in its debut after shares opened 21% above the IPO issue price, indicating strong demand for firms that have thrived during the pandemic.

Freshworks boosted revenue about 40% last year after the coronavirus pandemic prompted businesses to go digital, and sales continued to grow in the first half of 2021 while its net loss declined. With 52,500 customers, the company witnessed its revenue growth in the first six months of year 2021 to $169 million, up from $110 million in the first half of 2020. Its net loss shrank to $9.8 million from $57 million which was a year ago, according to its filings.

The shareholding pattern of the company is as shown below:

The company provides a suite of products that helps businesses with customer management, such as a messaging platform and an artificial-intelligence powered chatbot for customer support. The technology offered by Freshworks is used by more than 50,000 companies, including high-profile names such as Delivery Hero SE, Swedish payments firm Klarna, Cisco Systems Inc. and General Electric Co.

About the company:

Freshworks Inc. provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. The Company offers multi-product support, a knowledge base, self-service portal, community forums, and tools to leverage mainstream social media for customer support. Freshworks serves customers worldwide. The company was founded by Mathrubootham and Shan Krishnasamy as Freshdesk in 2010 and was rebranded as Freshworks in 2017. Freshworks started from a 700 sq ft warehouse in Chennai and has gone on to disrupt the customer relationship management (CRM) market, where it competes with the likes of Salesforce.

(Source: bloomberg.com, economictimes.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Property

Vicinity Centres declared strong FY21 result; announced refinement to its strategy

Minature houses resting on pound coin stacks concept for property ladder, mortgage and real estate investment

Investment Thesis

  • Ex Covid-19, stock trades on an attractive gross dividend yield.
  • VCX is concerned that weak domestic economic data points around the consumer will necessitate adjusting cap rates and asset valuations.
  • Strong specialty growth across retail categories, especially Luxury stores (+30.2% over the 12 months to 31 December 2019)
  • High-quality property portfolio (high occupancy, stable rental growth, etc.) with repositioning to withstand a declining retail sales environment.
  • Good development pipeline to drive growth at a reasonable initial yield and IRR
  • The retail climate is challenging, and is anticipated to stay so for the next 12 months, as households continue to be hampered by high debt levels and a lack of wage growth, despite stable unemployment in the eastern states.

Key Risks

  • The Corona virus has an impact on consumer attitude and retail outlets, which has an impact on VCX tenants.
  • Interest rate hikes have a negative impact on the company’s cost of debt and consumer spending in the retail industry.
  • Increased unemployment leads to lower consumer retail spending, which has an impact on rental growth and property valuations. Inability to mitigate consequences that arise from weak retail environment.
  • Property fundamentals are weaker than projected.
  • Tenancy risk/retailer failures result in more vacancies across the asset portfolio (e.g., Dick Smith) and a negative impact on profitability.
  • Delays in the development timetable and project cost overruns.
  • Any drop in interest in bond-proxy stocks among investors.

FY21 Results Highlights

Despite the impact of Covid-19, Vicinity Centres (VCX) declared strong FY21 results.

  •  Funds from operations (FFO) increased to $558.8 million, or 12.28 cents per share, from $520.3 million, or 13.66 cents per share, in FY20, mainly to considerable Net Property Income (NPI) growth of +8.7% to $743.4 million.
  • Cash collections over FY21 improved, with 4Q21 gross rental billing of 93% vs 74% in 1Q21 74%. This indicates trading conditions will and do improve as restrictions are eased.
  • Final DPS of 6.6cps was declared for 2H21.
  • VCX’s balance sheet remained robust, with low gearing of 23.8 percent, investment grade credit ratings of A/stable (S&P) and A2/stable (Moody’s), $2.4 billion in liquidity, and no debt maturing until FY23. Based on drawn debt, VCX’s weighted average debt maturity is 4.4 years and 5.8 years.

Management Note: VCX made a modification to their strategy, announcing the creation of “new revenue streams in the following three areas: 1. Adjacent products and services, which use core assets and capabilities to create new products and services; 2. Mixed-use developments, which bring new users to our retail assets and new forms of rental income; and 3. Third-party capital, which creates strategic partnerships with aligned capital partners and a funds management business to drive fee income.”But management’s caution on the Delta variant of Covid-19, VCX’s trading multiples and valuation appear attractive.

Company Profile

Vicinity Centres Ltd (VCX) is a ASX listed REIT holding a quality retail portfolio and fully integrated asset management platform. VCX owns ~A$15.7 billion of retail assets. Some notable retail assets that Vicinity Centres owns or has an interest in: Chatswood Chase (NSW), Chadstone Shopping Centre (VIC), DFO South Wharf (VIC), QueensPlaza (QLD), Emporium Melbourne (VIC) and DFO Homebush (NSW). VCX is the result of the merger between Federation Centres and Novion Property Group.

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Shares Small Cap

Baby Bunting FY21 results show group revenue surged by 15.6%

Stock exchange market concept, stock broker looking at graph working and analyzing with display screen, pointing on the data presented and deal on a exchange, Businessman trading stocks online.

Investment Thesis

  • Mandatory product safety standards for baby goods in Australia limit supply sources and provide barriers to entry to international competitors.
  • BBN has the largest presence in Australia amongst specialty baby goods retailers.
  • Low risk that online sales threaten high service business model of brick-and- mortar stores to showcase goods and in-store advice.
  • Solid growth story via new store openings (targeting 100+ stores network).
  • Strong market shares (currently sits at 30% in a highly fragmented market).

Key Risks

  • Retail environment and general economic conditions in addressable markets may deteriorate.
  • Competition may intensify especially from online retailers such as Amazon, specialty retailers, department stores, and discounted department stores.
  • Customer buying habits/trends may change. Rapid changes in customer buying habits and preferences may make it difficult for the Company to keep up with and respond to customer demands.
  • Higher operating and occupancy costs. Any increase in operating costs especially labour costs will affect the Company’s profitability.
  • Poor inventory control and product sourcing may be disrupted.
  • Management performance risks such as poor execution of store rollout especially into ex-metro areas.

FY21 Results Highlights 

  • Sales of $468.4m were up +15.6%, with same-store comparable sales up +11.3%. Online sales grew by +54.2% and now make up 19.4% of total sales (vs 14.5% in pcp).
  • Gross profit of $173.7m was up +18.3% on pcp, with GP margin up +83bps to 37.1%. Cost of doing business (CODB) as a percentage of sales improved 14bps to 27.8%, aided by store expense leverage and warehouse volume leverage (cost fractionalization).
  • Operating earnings (EBITDA) were up +29.2% to $43.5m (with EBITDA margin up +100bps to 9.3%) and NPAT was up +34.8% to $26.0m.
  • Operating cash flow was weaker versus previous corresponding period (pcp), driven by higher working capital – driven by an increase in inventories and also cycling particularly low levels in the pcp.
  • The Company declared a final dividend of 8.3cps, taking the full year dividend to 14.1cps (up +34.1% on pcp). The Board continues to target a payout ratio in the range of 70-100% pro forma NPAT.
  • Private label sales were up +31.1% vs pcp and now make up 41.4% of group sales (vs 36.5% in FY20). The Company remains on target to achieve 50% of sales from private sales.

Company Profile 

Baby Bunting Group Limited (BBN) is Australia’s largest nursery retailer and one-stop-baby shop with 42 stores across Australia. The company is aspecialist retailer catering to parents with children from newborn to 3 years of age. Products include Prams, Car Seats, Carriers, Furniture, Nursery, Safety, Babywear, Manchester, Changing, Toys, Feedingand others.

(Source: Banyantree)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Property

Goodman Group reports strong FY21 results with high operating EPS

Mortgage, investment, real estate and property concept. Dollar money and house keys

Investment Thesis:

  • GMG’s high-quality investment portfolio which is globally diversified and gives exposure to developed and emerging markets
  • Strong property fundamentals enabling valuation uplifts 
  • With more than 50% of earnings derived offshore GMG is expected to benefit from FX translation and a prolonged period of lower rates
  • Transitioning to longer and larger projects in development
  • Strong performances in Partnerships such as with Cornerstone
  • GMG’s solid balance sheet provide firepower and access to expertise to move on opportunities in key gateway cities with demand for logistics space (and supply constraints) and diversify risk by partnering (i.e. growth in funding its development pipeline) or co-investment in its funds and or make accretive acquisition opportunities
  • Expectations of continual and prolonged lower interest rate environment globally (albeit potential rate hikes in the US) should benefit GMG’s three key segments in Investments, Development and Management

Key Risks:

  • Any negative changes to cap rates, net property income
  • Any changes to interest rates/credit markets
  • Any development issues such as delays
  • Adverse movements in multiple currencies for GMG such as BRL, USD, EUR, JPY, NZD, HKD and GBP
  • Any downward revaluations
  • Poor execution of M&A or development pipeline
  • Key man risk in CEO Greg Goodman

Key highlights:

  • GMG delivered operating profit $1,219.4m, up +15.0% over the pcp, and operating EPS of 65.6 cents, up +14.1%. DPS of 30.0cps was in line with expectations.
  • Management provided solid FY22 earnings guidance stating: “FY22 forecast operating EPS is 72.2cps, up +10% on FY21. Forecast full year distribution for the coming year is 30cps”.
  • The Group is well positioned to maintain WIP of around $10bn throughout FY22, with multi-storey developments remaining a meaningful contributor.
  • Customer demand in our markets is also translating into high occupancy, rental growth and strong investment returns which should see AUM grow to in excess $65bn and support the performance of our management business.
  • GMG saw strong uplift in revaluations of $5.8bn driving growth in total AUM to $57.9bn (up +12%). GMG expects development WIP will organically grow AUM (which management expects to exceed $65bn in FY22).
  • GMG’s portfolio had high occupancy at 98.1%, weighted average lease expiry of 4.5 years, and like-for-like NPI growth at 3.2%. 3.9m sqm of leasing equated to $517.1m of annual rental property income. 

Company Description: 

Goodman Group Ltd (GMG) own, manage, develop industrial, warehouse and business park property in Australia, Europe, Asia and Americas. GMG actively seeks to recycle capital with development properties providing stock for ownership by either the trust or third-party managed funds, with fees generated at each stage of the process.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Shares Technology Stocks

Netflix faces increase in competition in the U.S and around the world

Netflix has morphed into a pioneer in subscription video on demand and the largest online video provider in the U.S. and likely the world. Our economic moat rating of narrow is based on intangibles resulting from the use of Big Data stemming from the firm’s massive worldwide subscriber base. Already the largest provider in the U.S., Netflix expanded rapidly into markets abroad as the service now has more subscribers outside of the U.S. than inside. 

The firm has used its scale to construct a massive data set that tracks every customer interaction. It then leverages this customer data to better purchase content as well as finance and produce original material such as “Stranger Things.” Media firms will continue to reap the benefits of both an additional window for existing content and another platform for new content. Larger firms like Disney+ and WarnerMedia have launched their own SVOD platforms to compete against Netflix. 

Financial Strength 

Netflix’s financial health is poor due to its weak free cash flow generation, large number of content investments that require outside funding (primarily debt), and content obligations. Debt has been taken on to fund additional content investments and international expansion. The net cash burn was over $2 billion in 2017, over $3 billion in 2018, and $3.5 billion in 2019. As of June 2021, Netflix has $14.9 billion in senior unsecured notes that do not have borrowing restrictions, but a relatively small amount due in the near term ($500 million due 2021, $700 million due 2022, $400 million due 2024, and $800 million due 2025), as the firm generally issues debt with a 10-year maturity. Netflix also has a material quantity of noncurrent content liabilities ($2.7 billion recognized on the balance sheet and over $15 billion not yet reflected on the balance sheet).

Bulls Say’s 

  • Netflix’s internal recommendation software and large subscriber base give the company an edge when deciding which content to acquire in future years.
  • Netflix has built a substantial content library that will benefit the firm over the long term.
  • International expansion offers attractive markets for adding subscribers.

Company Profile 

Netflix’s primary business is a streaming video on demand service now available in almost every country worldwide except China. Netflix delivers original and third-party digital video content to PCs, Internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Fixed Income Fixed Income

Fidelity Government Income Fund: An appealing Government-focused offering

A blended benchmark of the Bloomberg U.S Government Bond Index (75% weighting) and the Bloomberg U.S Mortgage Backed Securities Index (25%), sticks primarily to government-backed fare (Outside of an occasional in the student loan-backed debt that carries a federal guarantee for atleast 97% of principal and interest) and doesn’t make big interest-rate bets. It plays to its strength in the mortgage portion of the portfolio, which typically accounts for 40% to 60% of assets, drawing on significant investments in proprietary analytics to identify mortgages with more attractive cash flow projections than their prices suggest. As of June 2021, the strategy’s market exposure stood roughly 107% of net assets.

Portfolio

The high-quality, government-focused portfolio tends to hold an overweighting in mortgages relative to its blended benchmark (75% Bloomberg U.S Government Bond Index and 25% Bloomberg U.S Mortgage backed Securities Index), with the team actively adjusting this mix based on valuations. Meanwhile, its allocation to U.S Treasuries accounted for 67% of assets in June 2021, up from 50% at the beginning of 2020. Here, the team favors 30-year fixed rate mortgage with repayment-resistant characteristics. The team has found agency collateralized mortgage obligations to be less attractive recently, trimming its stake to 9% of assets as of June 2021 from 14% at the start of 2020. These securities can be volatile and suffer from bouts of illiquidity, although they typically account for 3% or less of the portfolio and stood at less than 1% as of June 2021.

People

This strategy benefits from experienced leadership and a well-resourced securitized team, supporting a people pillar rating of above average. Sean Corcoran was named as a comanger when lrving left the team. Corcoran, a 19 – year fidelity veteran, previously analyzed commercial MBS and other non-agency fare as an analyst. Corcoran and castagliuolo draw on considerable resources, including eight dedicated structured-products analysts and five macro analysts. Five traders across agency, non-agency and rates markets support the team. In mid-2020, the team hired John Torregrossa, an experienced agency MBS trader with over 15 years experience, to replace veteran trader Steve Langan, who retired in late 2020.

Performance 

Well time adjustments have aided recent performance. In 2019, an increase in its Treasuries allocation helped it to a 6.5% return which bested 75% of category peers. In 2020, the team increased its exposure to mortgages amid the first quarter sell-off, helping the strategy to a 6.9% return, which bested over two thirds of peers.

FGOVX Performance.png

About the Fund

Fidelity Government Income Benefits from a well-resourced team and risk-conscious approach backed by the firms’s deep mortgage analytics. Fidelity’s significant investment in analytics, including a proprietary mortgage model that allows the team to quickly model changes in assumptions regarding borrower repayment behavior to identify mispricings in the mortgage market. 

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Global stocks Shares

Incitec Pivot’s Fiscal Second Half Enjoys Surge in Fertiliser Price AUD 3.00 FVE Unchanged

Business Strategy and Outlook

Incitec Pivot aims to expand its business around its strong global market share in explosives. This provides an increasingly stable earnings stream relative to volatile earnings from its fertiliser business. Competitive advantages include a duopoly Australian explosives business and global explosives operations. Incitec Pivot is also a dominant player in the Australian domestic fertilizer market and enjoys a degree of domestic fertiliser pricing power from its dominant market share in eastern states, but it is too small to influence global prices.

Explosives earnings are leveraged to mining volumes as much as price and should benefit from long-term global growth in demand for minerals and metals. Additionally, mining strip ratios are expected to increase over time, with more explosives required to mine the same amount of ore. Incitec Pivot is consequently focused on ensuring all new projects meet strict financial criteria. There will likely be an oversupply of ammonium nitrate in Western Australia to 2020 and in Eastern Australia to 2021. 

Financial Strength

IncitecPivot raised AUD 645 million in new equity at AUD 2.00 per share in the second half of fiscal 2020. In conjunction with positive free cash flows, net debt fell to AUD 1.3 billion at end September, down 45% from AUD 1.9 billion at end March 2020. As at end March 2021, net debt worsened slightly to AUD 1.48 billion, for comparatively modest leverage ND/(ND+E) of 22%, but somewhat elevated net debt/EBITDA just over 2.0. It is pleasing therefore that management has expressed an investment bias to capital-light and faster cash returning projects aligned to the strategy.The equity capital raised in fiscal 2020 increased the company’s liquidity and supports a continued investment-grade credit rating.

Our fiscal 2021 EPS forecast is little changed at AUD 0.10 with full-year results to be released on Nov. 15. The global explosives provider deliberately brought down its Waggaman ammonia plant in late August 2021 in anticipation of Hurricane Ida, with an NPAT impact of USD 21 million. Post-hurricane inspections did not identify any material damage to the Waggaman plant. Incitec Pivot ended March 2021 with net debt of AUD 1.48 billion, for comparatively modest leverage ND/(ND+E) of 22%, but somewhat elevated net debt/EBITDA just over 2.0.

Bulls Say’s

  • Investors enjoy bumper dividends at peak cycle times.
  • Continued growth of the explosives business will reduce earnings volatility.
  • Over the longer term, explosives earnings are favourably leveraged to mining volumes rather than prices, and mine strip ratios are expected to increase over time.

Company Profile 

Incitec Pivot is a leading global explosives company with operations in Australia, Asia, and the Americas. We estimate its share of the global commercial explosives market at about 15%. Explosives contributes 80% of EBIT. Incitec Pivot is also a major Australian fertiliser producer and distributor and is the only Australian manufacturer of ammonium phosphates and urea. Ammonium phosphates are sold in the domestic market and exported.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

Metrics Income Seeks to Raise up to $152m through Institutional Placement and Unit Purchase Plan

Currently, their Annual Yield is 6.98 percent and their dividend amount is 0.009. Metrics Income’s P/E Ratio is 13.8 percent. 

Metrics Income Opportunities Trust’s Revenue is 30.70 million till June 2021. Their last traded price is $2.05. The trust targets a cash yield of 7 percent p.a. which is intended to be paid monthly with a total target return of 8 percent p.a to 10 percent p.a in each case net of fees and expenses.

Their Net Asset Value is $407,156,629. Metrics Income Opportunities Trust ((MOT)) announced on August 26, 2021, that they intend to raise $52.86 million by issuing 26.04 million new fully paid ordinary MOT units to wholesale investors at a price of $2.03 per unit. 

Furthermore, the Trust announced a Unit Purchase Plan (UPP) for existing eligible unit holders to purchase up to $30,000 in new units at a price of $2.03. The Trust hopes to raise up to $100 million through the UPP. Excessive applications may be scaled back on a pro rata basis. The UPP is set to open on September 6, 2021, and close on September 30, 2021.

The offer price of $2.03 corresponds to the NAV at the time of the announcement, with the UPP allowing unit holders to acquire units at a 1.9 percent discount to the unit price at the close of the trading day preceding the announcement (25 August 2021).

The proceeds from the institutional placement and the UPP will be invested in accordance with MOT’s investment mandate and target return.

Company Profile 

Metrics Income Opportunities Trust seeks to provide investors exposure to a portfolio of private credit investments. The Investment Objective of the Trust is to provide monthly cash income, preserve investor capital and manage investment risks, while seeking to provide potential for upside gains through investments in private credit and other assets such as Warrants, Options, Preference Shares and Equity.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.