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Occam Logic if possible could you educate me as to why MCP give...

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18/10/17

15:20

Post #: 28002357
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Originally posted by Occam Logic ↑

Personally, I like the idea. This is for those obviously seeking a fixed income style investment. Where it differs from traditional FI investments (bonds, notes etc), is that it doesn't have the same level of duration risk when rates rise. Rather, because the fund is involved in direct lending, you are subject to interest rate movements without the link to bond values.

The other aspect I like is that although it's dealing with relatively illiquid assets, being ASX listed gives investors a liquidity mechanism. So you won't have the same issues mortgage funds had in the GFC freezing redemptions. The trade off is obviously being able to trade away from NAV.

The other positive is that NAV will be the same as the IPO price at listing. Fees to brokers and other set up costs are basically being paid by the manager. So no dilution of the SP on day 1.

If I was looking at a fixed interest style investment for my portfolio in the current environment, I'd give this serious consideration.

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Occam Logic if possible could you educate me as to why MCP give a daily fund update. MCP is a fixed interest investment and at the issue price of $2.00 are paying 4.75%. Whats the point of giving a daily fund update?
Yes I'm a struggling newbie trying to further my education.
Thanks in advance.
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