DJ 2026 Interim Results
M&G Credit Income Investment Trust plc (MGCI) 2026 Interim Results 18-Sep-2026 / 07:05 GMT/BST =---------------------------------------------------------------------------------------------------------------------- LEI: 549300E9W63X1E5A3N24 M&G Credit Income Investment Trust plc Half Year Report and unaudited Condensed Financial Statements for the six months ended 30 June 2026 M&G Credit Income Investment Trust plc (the 'Company') announces its unaudited half yearly results for the six months ended 30 June 2026. Highlights for the six months ended 30 June 2026 -- The dividend yield on a trailing 12-month basis on the Ordinary Shares as at 30 June 2026 was 7.95%. -- Dividends of 1.73p and 1.75p per Ordinary Share were paid for the quarters ended 31 March 2026 and 30 June 2026, respectively, of which a total of 1.05p derived from a return of capital. -- NAV total return of 2.36% for the six months to 30 June 2026, compared with the benchmark return of 3.82%. -- The Company's Ordinary Share price traded at an average premium to NAV of 0.3% during the period ended 30 June 2026. -- On 30 June 2026, the Ordinary Share price was 93.10p, representing a 1.8% premium to NAV as at that date. -- A net 5.6 million Ordinary Shares were issued during the period, reflecting continued demand for the Company's shares. -- Since the period end, a further 4.2 million Ordinary Shares have been issued. -- On 18 September 2026, the Company announced a proposed placing and a retail offer of further Ordinary Shares. -- The funded private asset portion of the portfolio increased to 52.44%, from 46.42% at 31 December 2025. -- Approximately GBP15 million was invested into private credit opportunities during the period. Chairman's comment David Simpson, Chairman of M&G Credit Income Investment Trust plc, commented: 'The Company delivered a positive NAV total return during the first half of 2026, while maintaining a clear and transparent policy of paying attractive quarterly dividends. The portfolio remained defensively positioned against a backdrop of tight credit spreads and heightened geopolitical uncertainty, and the Investment Manager continued to identify selective opportunities across public and private credit markets. Your Company's portfolio has limited interest rate sensitivity compared to traditional fixed-rate bonds, helping it to protect value if rates rise while capturing rising income.' Outlook The Board believes the Company remains well positioned to continue delivering attractive income, supported by a diversified portfolio, disciplined credit selection and the flexibility to deploy capital when market conditions present more compelling opportunities. Contact details: AIFM and Investment Manager M&G Alternatives Investment Management Limited 10 Fenchurch Avenue, London EC3M 5AG Website: mandg.com/investments/private-investor/en-gb Telephone: +44 (0) 800 390 390 Company Secretary MUFG Corporate Governance Limited Central Square, 29 Wellington Street, Leeds LS1 4DL Telephone: 0333 300 1932 Broker Winterflood Securities Limited Riverbank House, 2 Swan Lane, London EC4R 3GA The full Half Year Report is available on the Company's website at mandg.com/creditincomeinvestmenttrust Chairman's statement High demand has enabled your Company to issue 9.8 million Ordinary Shares between 1 January 2026 and 17 September 2026. We have today announced a proposed placing and retail offer of further Ordinary Shares. Your Company's portfolio offers considerable protection from rising interest rates while providing attractive income. Performance Your Company delivered a NAV total return of 2.36% for the six months to 30 June 2026, compared to the benchmark of SONIA +4% which returned 3.82%. The Company outperformed investment grade fixed income indices such as the ICE BofA Sterling Corporate and Collateralised Index and the ICE BofA 1-3 Year BBB Sterling Corporate and Collateralised Index, which returned +0.96% and +1.69%, respectively. The Company's NAV total return also compared favourably with high yield markets, with the ICE BofA European Currency Non-Financial High Yield 2% Constrained Index returning +2.00%. The Investment Manager continued to position the portfolio defensively as credit spreads remained close to historically tight levels which, in its opinion, did not adequately compensate investors for the range of macroeconomic, geopolitical and policy risks still present. Market conditions changed significantly over the half year. The first quarter was characterised by heightened volatility following the escalation of tensions involving Iran, an artificial intelligence-related sell off in software companies and adverse news about private credit in the US. This resulted in wider credit spreads and weaker market sentiment. However, as concerns over immediate energy supply disruption eased and investors refocused on resilient corporate fundamentals, credit spreads retraced much of their earlier widening during the second quarter. In a tight credit spread environment, deploying capital in line with the Company's long-term return target can be challenging. However, during the period, the Investment Manager was able to benefit from the macroeconomic backdrop, using its flexibility to invest across asset classes, to rotate meaningfully out of public credit and into private credit, realising capital gains and improving the portfolio yield. The Board continues to support the Investment Manager's approach, which seeks to balance near-term income generation with capital preservation and the flexibility to deploy capital when market conditions provide more compelling opportunities. Share issuance, discount management and proposed fundraising Demand for the Company's shares remained positive during the period, with a net 5.6 million Ordinary Shares issued. Following significant issuance in January and February, March's heightened market volatility saw the Ordinary Share price move briefly to a discount to NAV. In accordance with the Company's Zero Discount Policy, the Company recommenced share repurchases and bought back Ordinary Shares into Treasury. Encouragingly, the share price subsequently returned to a premium to NAV as market sentiment improved. The Company's Ordinary Share price traded at an average premium to NAV of 0.3% during the period ended 30 June 2026. On 30 June 2026, the Ordinary Share price was 93.10p, representing a 1.8% premium to NAV as at that date. Since the period end, a further 4,175,000 Ordinary Shares have been issued. Your Board remains committed to the Zero Discount Policy, which seeks to ensure that Ordinary Shares trade close to NAV in normal market conditions and supports liquidity for shareholders. In light of current demand, we have today announced a proposed placing and retail offer of Ordinary Shares. Dividends Your board understands that regular income is a key consideration of many investors. Since inception, we have maintained a clear and transparent policy of paying attractive quarterly dividends. Your Company is currently paying four quarterly interim dividends at an annual rate of SONIA +4%, calculated by reference to the adjusted opening NAV as at 1 January 2026. The Company paid dividends of 1.73p and 1.75p per Ordinary Share for the quarters to 31 March 2026 and 30 June 2026, respectively. The Investment Manager continues to believe that an annual total return, and ultimately a dividend yield, of SONIA +4% remains achievable over the long term, although there can be no guarantee that this will be achieved in any individual year. Outlook The outlook for credit markets remains finely balanced. While global economic activity has proved resilient and financial markets have recovered from the volatility experienced earlier in the year, geopolitical risks remain elevated. The Middle East remains very unstable and energy markets are correspondingly volatile. Policymakers are trying to balance price stability against the risk of placing additional pressure on slowing economies, particularly in the UK and Europe. Despite this backdrop, credit markets have demonstrated resilience. Following the spread widening seen during the first quarter, risk appetite recovered strongly and corporate credit spreads ended the period once again close to historically tight levels. This has been underpinned by supportive technical factors, including strong investor demand and well-supported primary issuance markets. In this environment, the Investment Manager intends to maintain a disciplined and selective approach to capital allocation, prioritising assets that offer resilient income and more defensible cash flows. This positioning is not intended simply to reduce risk, but to preserve flexibility and enable the Company to deploy capital into more attractive opportunities when periods of volatility create improved entry points and more compelling prospective returns. The Company remains well positioned for a range of market outcomes with a diversified portfolio, predominantly investment grade credit quality and access to M&G's extensive public and private credit capabilities. It has access to a fully undrawn GBP40 million revolving credit facility and there is approximately GBP40 million invested in high credit quality ABS funds, which can be redeployed efficiently should market dislocations occur. Your Company's predominantly floating-rate portfolio and low duration offer considerable protection against interest rate rises compared to traditional fixed-income strategies. If interest rates stay higher for longer, shareholders also benefit from the higher income which is generated. The Board believes that the Company is well placed to continue delivering attractive income while remaining ready to capitalise on opportunities as they emerge.
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