MA Credit Income Trust Delivers 8.56% Return and Raises $190.5 Million

Strong Financial Performance and Income Delivery

MA Credit Income Trust (ASX:MA1) has reported a standout financial year ended 30 June 2026, with total investment income soaring 342% to $43.5 million and operating profit up 343% to $42.7 million compared to the previous period. The Fund delivered a net return of 8.56% after fees and expenses, comfortably exceeding its benchmark target of the RBA Cash Rate plus 4.25% (8.36%). This performance underscores the Fund’s ability to generate consistent monthly income while preserving capital through its diversified private credit portfolio.

Capital Raising and Unit Issuance Bolster Scale

During the year, the Fund successfully completed a fully subscribed capital raise totalling $190.5 million via an Entitlement Offer and Shortfall Offer, issuing over 95 million new units at $2.00 each. This injection of capital expanded the Fund’s net assets attributable to unitholders to $559.3 million, up from $331.6 million a year earlier. The increased scale is expected to enhance portfolio diversification and improve liquidity for investors trading on the ASX.

Capital Management Through Buy-Backs

The Fund has actively managed its capital base through buy-back programs. An off-market buy-back completed in December 2025 saw 6.6 million units cancelled at $2.0004 per unit, returning $13.3 million to participating unitholders. Additionally, an on-market buy-back facility was approved in April 2026 as part of ongoing capital management, though no units had been purchased under this program as of 30 June 2026. These initiatives aim to optimise the Fund’s capital structure and provide liquidity options within the constraints of ASX listing rules.

Portfolio Composition and Risk Management

The Fund’s investment strategy focuses on private credit assets accessed primarily through the MA Credit Income Fund (Wholesale), which held $559.2 million at fair value as of 30 June 2026. The underlying portfolio is heavily weighted towards senior secured or structured secured credit exposures (approximately 97%), with about 88% of assets rated BB-equivalent or higher. This conservative positioning supports the Fund’s capital preservation mandate. Over the year, the underlying portfolio funded more than $2.7 billion in loans, diversified across asset backed lending, direct asset lending, and direct corporate lending segments.

Market Conditions and Forward-Looking Considerations

While private credit markets remained constructive, the Fund’s manager noted increasing selectivity amid a higher interest rate environment and ongoing geopolitical uncertainties. The portfolio’s floating-rate exposures benefit from rising benchmark rates, but pressure on some borrowers persists. Notably, subsequent to the reporting period, a temporary redemption limit of 1% per month was imposed on the MA Secured Loan Series, to which the Fund is indirectly exposed. The Responsible Entity has assessed this and does not currently expect any impact on the carrying value of the Fund’s investments. Investors should monitor developments around this restriction and the Fund’s capital management actions, including the recently announced voluntary off-market buy-back offer for up to 2.5% of units at NAV, which could influence liquidity and unit supply dynamics.