MGCI Reports Interim Results Amid Market Volatility

M&G Credit Income Investment Trust plc (MGCI) has released its 2025 interim results for the six months ending 30 June. The company reported a NAV total return of +2.97%, which fell short of its SONIA +4% benchmark, yet outperformed certain high-yield indices.

The Investment Manager maintained a defensive portfolio stance, citing insufficient compensation for corporate risk amidst tight credit spreads. While market rallies followed temporary tariff suspension announcements, the company's brief gain opportunities did not significantly impact results.

Though demand enabled an increase in market capitalisation by £31 million, necessitating a new Prospectus to sustain share issuance, the company's policy aims to maintain shares closely aligned with NAV.

Despite uncertainty due to global tariffs, the firm remains cautiously optimistic, focusing on credit quality over yield. Prepared for potential market shifts, MGCI holds an undrawn £25 million credit facility and £39 million in high-quality ABS funds.