New Issue: MCP Income Opportunities Trust

The MCP Income Opportunities Trust (MOT) is a listed investment trust (LIT) designed to provide investors with access and/or exposure to the Australian multi-asset private credit universe (Prospective ASX Code: MOT). Private credit is a broad asset class that includes investments spanning the entire capital structure, from senior secured loans through to equity-like investments. Private credit is a major pillar of the Australian corporate debt market but has historically been restricted to major global banks and institutional investors. For this reason, MOT offers a unique investment opportunity and exposure to the higher-yielding aspects of corporate credit that are otherwise not accessible for retail investors. Specialist expertise is required to operate in this market and the Metrics Credit Partners’ (Metrics) Investment Team is comprised of highly- skilled debt specialists with a strong history of originating, structuring, arranging and managing private debt to Australian companies alongside banks and institutional investors.

The investment objective of the Trust is to provide attractive risk-adjusted returns (including opportunistically delivering upside gains) while retaining a focus on capital stability, active risk management and downside capital preservation. The Trust is targeting a total net return of 8-10% p.a. (net of fees and expenses) with cash income distributions payable quarterly in arrears, with a target 7% p.a. quarterly cash yield. Similar to Metrics’ Master Income Trust (MXT)(which invests in three Metrics wholesale funds via the MCP Wholesale Investment Trust), the Trust will initially invest in the Metrics Wholesale Income Opportunities Trust which will in turn invest in four wholesale private debt funds managed by Metrics. The Trust is expected to list and commence trading on 29 April 2019 at an indicative Net Asset Value (NAV) of $2.00 (equal to the issue price of $2.00 per unit). The Trust Company (RE Services) Limited will serve as the Responsible Entity.

Summary details of the transaction are listed in the table below:

Product Type

Listed Investment Trust

Asset Class

Fixed Income / Alternatives

Issue Size*


Sub-Asset Class

Private Debt / Equity

Net Asset Value**


Investment Manager

Metrics Credit Partners Pty Ltd

Fixed / Floating

Fixed and Floating

Responsible Entity

The Trust Company (RE) Services Ltd

Payment Frequency



Perpetual Corporate Trust Ltd

Target Total Return***

8 - 10% p.a.

Administrator / Unit Registrar

Mainstream Fund Services Pty Ltd

Target Cash Return

7% p.a.

Offer Opens

12 March 2019

Franking Credits Inclusive


Offer Closes

12 April 2019

ASX Listed

Proposed (ASX: MOT)

Allotment Date

23 April 2019



Commences Trading on ASX

29 April 2019

GICS Sector

Investment Trust

First Payment Date****

After 30 June 2019


* Issue size subject to change.

** Pro-forma Net Asset Value per unit subject to change.

***First and ongoing distributions are targeted at 7% p.a. cash
return but may not be achieved.

**** First distribution date is targeted as post the quarter ending 30/06/2019.

Click here to access our Full Research Report.