Key Highlights

  • Perpetual Credit Income Trust paid about 0.623 cents per unit on 9 November for October.
  • The October amount was up from 0.60 cents for September.
  • The reinvestment plan priced new units at net asset value with no discount.
  • The distribution was unfranked.

Perpetual Credit Income Trust (ASX:PCI) paid an October distribution of about 0.623 cents per unit on 9 November 2026, up from 0.60 cents for September, and its monthly schedule keeps it on the ASX Dividend calendar every few weeks. The trust lodged its initial Appendix 3A.1 on 26 October and confirmed the actual amount of AUD 0.00622792 per unit on 4 November. Units went ex-distribution on 29 October with a Record Date of 30 October. The trust's distribution reinvestment plan applied, with reinvested units priced at net asset value on the record date and no discount.

October Distribution Dates and Amount

The updated Appendix 3A.1 of 4 November 2026 was lodged to update the distribution to its actual amount. It covers a one-month period ending 31 October 2026, with an ex date of 29 October, a record date of 30 October and a payment date of 9 November 2026. The distribution is ordinary and 100 per cent unfranked.

The October amount of 0.622792 cents compares with 0.60 cents for September and 0.62 cents for each of July and August, according to the trust's September 2026 monthly Investment report. That report put FY27 distributions to the end of September at 1.84 cents per unit. Adding October takes the financial year to date to about 2.46 cents. For FY26 as a whole, the trust paid 7.93 cents per unit.

How the Reinvestment Plan Is Priced

The notice confirms the full distribution reinvestment plan applied to the October payment, with an election deadline of 5pm on Monday 2 November 2026. The discount rate was 0 per cent, and new units are issued ranking equally with existing units from their issue date.

The reinvestment price is based on the unit's net asset value on the record date, determined under the trust's constitution. That is a different method from plans that use an average of on-market trading prices over several days. Pricing at net asset value means participants reinvest at the value of the underlying portfolio rather than at the listed price on a given day. The default option for holders who have not made an election is a cash payment. Because new units are issued rather than bought on market, the plan adds to the number of units on issue over time, and new units issued by the trust are reported to the ASX through applications for Quotation of securities.

The Trust's Objective and Portfolio

The trust aims to provide monthly income by investing in a diversified pool of credit and fixed income assets. Its target return is the RBA cash rate plus 3.25 per cent a year, net of fees, through the economic cycle, although it notes the target may not be achieved. Management costs are 0.88 per cent a year.

At the end of September, the trust had 731,615,185 units on issue and a net Tangible Asset value of $1.095 per unit. It held 215 investments across 122 issuers. Its liquid core of investment grade securities and cash made up 48.8 per cent of net asset value. The portfolio's weighted average life was 3.8 years and its Interest Rate duration only 13 days, reflecting a heavy weighting to floating rate instruments.

The investment strategy allows 30 to 100 per cent in investment grade Assets and up to 70 per cent in unrated or sub-investment grade assets, including exposure through the Perpetual Loan Fund. Up to 30 per cent can be held in foreign currency assets, typically hedged back to Australian dollars. Typical holdings include corporate bonds, floating rate notes, securitised assets and private Debt such as corporate loans.

Why Rates Feed Into Monthly Payments

The trust's short interest rate duration means coupon income adjusts quickly when the cash rate changes. The monthly report noted that the Reserve Bank raised the cash rate by 0.25 percentage points to 4.60 per cent at its 29 September 2026 meeting, a unanimous decision, pointing to higher energy prices and Inflation risks. The Reserve Bank then lifted the cash rate to 4.85 per cent on 3 November 2026. The manager said higher base rates lift the income the trust can distribute as coupons reset.

The increase from 0.60 cents in September to about 0.623 cents in October is consistent with that mechanism, although monthly amounts also depend on portfolio activity and the timing of income. The September report also referred to rising Global Bond yields, a US Federal Reserve rate increase to a range of 3.75 to 4.00 per cent and modest widening in Australian credit spreads.

Manager Positioning and Risks

The trust is managed by Perpetual Investment Management Limited, with Perpetual Trust Services Limited as responsible entity. The Portfolio Management team includes Greg Stock, head of credit research and senior portfolio manager, Thomas Choi, deputy portfolio manager, and Michael Murphy, portfolio manager of the Perpetual Loan Fund.

In September the manager said it added mezzanine and subordinated tranches of securitised deals and increased exposure to telecommunications hybrids, during a record month of securitised issuance. Its proprietary credit outlook score remained negative, weighed down by Supply and Demand indicators, and the team described itself as cautious. It flagged leveraged borrowers as most exposed to rising yields on government bonds.

For income investors, that combination of higher floating-rate income and a more cautious credit view is the central trade-off. Higher rates can increase distributions, but they also put pressure on borrowers' ability to service debt.

Key Takeaways

Perpetual Credit Income Trust paid about 0.623 cents per unit on 9 November 2026 for October, after an ex date of 29 October and a record date of 30 October. The distribution was unfranked, and the reinvestment plan priced new units at net asset value with no discount. October's amount was above September's 0.60 cents, in line with floating-rate income resetting after the Reserve Bank's September increase. For investors tracking the ASX dividend calendar, the next item is the November distribution notice, which on the October pattern would be expected late in the month ahead of a month-end record date.