M&G Credit Income Investment Trust will invest in private and illiquid fixed income debt assets, aiming to deliver a dividend yield of LIBOR plus 4% per annum over the long term. The trust will offer retail investors access to the illiquid and private debt markets which are usually the preserve of institutional investors, and which offer attractive yields for taking extra liquidity and complexity risk. The trust will be managed by Jeremy Richards, for 25 years manager of the fixed income allocation of the Prudential Life Fund, who will be able to draw on the expertise and analysis of a vast team of analysts at M&G working in highly specialised sectors of the fixed income universe. M&G’s resources and scale are such that they are often the originators of innovative structures in which this trust will be able to participate, benefitting from the extra yield that typically comes with an immature asset class. The board will have authority to buy back shares to protect the discount, while there will also be a liquidity window held every five years allowing investors to redeem part of their investment at NAV. M&G is aiming to raise up to £250m, and Prudential will seed the trust with up to £80m or 25% of the trust. A placing programme is envisaged, which will allow the trust to grow further during the first year.