PERPETUAL
CREDIT
INCOME
TRUST ARSN 626 053 496
ANNUAL FINANCIAL REPORT
30 JUNE 2019
Perpetual Credit Income Trust
Appendix 4E
For the period 22 May 2018 to 30 June 2019
Details of reporting period
Current: period 22 May 2018 to 30 June 2019
Previous corresponding*: N/A
The directors of Perpetual Trust Services Limited, the Responsible Entity of the Perpetual Credit Income Trust
(the Trust) announce the reviewed results of the Trust for the period 22 May 2018 to 30 June 2019 as follows:
* This is the first period of operations of the Trust and hence there are no prior period comparatives.
Results for announcement to the market
Extracted from financial statements for the period 22 May 2018 to 30 June 2019.
Revenue from ordinary activities
Profit/(loss) from the period
Total comprehensive income/(loss) for the period
Details of distributions
$'000
2,200
1,568
1,568
The distributions for the period from 22 May 2018 to 30 June 2019 is $341,696 (0.0854 cents per ordinary unit).
Subsequent to period end, on 25 July 2019, the directors declared a distribution of 0.3997 cents per ordinary unit
which amounted to $1,598,668 and was paid on 8 August 2019.
Details of distribution reinvestment plan
The Responsible Entity has established a Distribution Reinvestment Plan (DRP) on 24 June 2019 in relation to all
future distributions.
The Responsible Entity expects to make distributions on a monthly basis. For such distributions, it is expected
the record date will be the last ASX trading day of each month and the last day for electing into the DRP will be
5.00pm (Sydney time) on the first business day after the record date.
Units under the DRP are currently issued at the net asset value of a unit as determined in accordance with the
Trust's Constitution on the record date.
Net Tangible Assets
Total Net Tangible Assets attributable to unitholders ($'000)
Units on issue ('000)
Net Tangible Assets attributable to unit holders per unit (cents)
Control gained or lost over entities during the period
As at
30 June 2019
441,226
400,000
110.3
Name of entities
Perpetual Loan Fund
Date of gain of control
13 May 2019
Contribution to profit ($'000)
344
Details of associates and joint venture entities
The Trust did not have any interest in associates and joint venture entities during current period.
Independent audit report
Additional disclosure requirements can be found in the notes to the Perpetual Credit Income Trust financial
statements for the period 22 May 2018 to 30 June 2019.
This report is based on the financial report which has been audited.
Perpetual Credit Income Trust
ARSN 626 053 496
Financial Report
For the period 22 May 2018 to 30 June 2019
Contents
Investment manager's report
Directors' report
Corporate governance statement
Lead auditor's independence declaration
Statement of comprehensive income
Balance sheet
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the unitholders
ASX additional information
Page
2
3
6
10
11
12
13
14
15
36
37
41
-1-
Perpetual Credit Income Trust
Investment Manager’s Report
For the period 22 May 2018 to 30 June 2019
Investment Manager’s report
Dear Investors,
We are pleased to present the first Annual Financial Report for the Perpetual Credit Income Trust – ASX Code
PCI (‘the Trust’). The Trust commenced trading on the Australian Securities Exchange (ASX) on 14 May 2019.
Strong demand from investors saw the maximum A$440 million being raised through the issue of 400,000,000
units at a subscription price of A$1.10 per unit. As at 30 June 2019, the Trust had a market capitalisation of
A$448 million and a net asset value per unit of $1.103.
The Trust is designed to deliver sustainable monthly income with a target total return of the RBA Cash Rate
plus 3.25% per annum (net of fees) through the economic cycle.
To achieve this, the Trust’s portfolio will typically contain 50-100 domestic and global credit and fixed income
assets, diversified by asset type, credit quality, maturity, country and issuer through investment in corporate
bonds, floating rate notes, securitised assets and private debt (mainly corporate loans).
The Trust’s flexible investment strategy means the Manager can actively access a broad opportunity set to
address changing market conditions. Due to Perpetual Limited’s size and market position, the Trust can offer
investors access to credit and fixed income assets not typically available to individual investors.
The experienced Portfolio Manager for the Trust, Michael Korber, supported by the broader Credit and Fixed
Income team within Perpetual Investments, have been adopting a methodical and disciplined approach to
investing the cash holdings raised during the initial public offer period (IPO) of the Trust.
As noted in the Trust’s Product Disclosure Statement, dated 8 March 2019 (PDS), the time frame to achieve
target portfolio construction was three months from listing on the ASX. We are pleased to note this target has
now been achieved, with the assets of the Trust fully invested by late July 2019.
The Trust’s first distribution of 0.0854 cents per unit was announced for June 2019 with payment to investors
occurring on 9 July 2019.
Despite the short period between listing and 30 June 2019, unitholder return* has been 1.9%, exceeding the
RBA Cash Rate over this period by 1.7%.
The June 2019 Monthly Investment Report includes an update on global and domestic credit markets and
detail on how the Trust’s assets are being invested. We would encourage you to read the Monthly Investment
Reports, as they provide valuable information on the insights of the Manager. These are released to ASX and
are also available on the ASX Announcements page, found under the Investor tab, on the Trust’s website
www.perpetualincome.com.au.
A tax guide, to help you complete your annual tax return, has also been released to ASX and is available on the
Trust’s website.
We would like to take this opportunity to again thank all investors for your support and we look forward to
providing you with further updates on the progress of the Trust’s investments over the coming year.
Perpetual Investments
*Total unitholder return – ASX unit price performance with reinvestment of distributions has been calculated on
the growth of the ASX unit price and assumes reinvestment of distributions on the ex-date. Past performance is
not indicative of future performance. Since inception return is from listing on 14 May 2019, initial price used is
the subscription price of $1.10.
-2-
Perpetual Credit Income Trust
Directors' report
For the period 22 May 2018 to 30 June 2019
Directors' report
The directors of Perpetual Trust Services Limited (ACN 000 142 049, AFSL 236 648), the Responsible Entity of
the Perpetual Credit Income Trust (the Trust), present their report together with the financial statements of the
Trust for the period 22 May 2018 to 30 June 2019 and the auditor's report thereon.
Directors
The following persons held office as directors of Perpetual Trust Services Limited during the period and up to the
date of this report:
Glenn Foster
Michael Vainauskas
Andrew Mclver (Alternate Director for Michael Vainauskas)
Vicki Riggio
Christopher Green (resigned 17 October 2018)
Gillian Larkins (Alternate Director for Glenn Foster) (resigned 12 October 2018)
Phillip Blackmore (Alternate Director for Christopher Green and Vicki Riggio) (appointed 6 July 2018)
Phillip Blackmore (Alternate Director for Christopher Green) (resigned 17 October 2018)
Richard McCarthy (appointed 17 October 2018)
Directors were in office for this entire period except where stated otherwise.
Principal activities
The Trust is a registered managed investment scheme domiciled in Australia.
The Trust was constituted on 9 May 2018, registered on 22 May 2018, commenced operations on 8 May 2019
and its units commenced trading on the Australian Securities Exchange (ASX: PCI) on 14 May 2019.
The Trust's investment strategy is to provide investors with monthly income by investing in a diversified pool of
credit and fixed income assets. The Responsible Entity of the Trust is Perpetual Trust Services Limited (ACN 000
142 049, AFSL 236 648).
Perpetual Investment Management Limited (AFSL 234 426) has been appointed by the Responsible Entity to be
the Investment Manager of the Trust (Investment Manager).
The Trust did not have any employees during the period.
Units on issue
Units on issue in the Trust at the end of the period are set out below:
BLANK
Units on issue
Review and results of operations
As at
30 June 2019
Units ('000)
400,000
During the period, the Trust invested in accordance with the investment objective and guidelines as set out in the
governing documents of the Trust and in accordance with the provisions of the Trust's Constitution.
-3-
Perpetual Credit Income Trust
Directors' report
For the period 22 May 2018 to 30 June 2019
(continued)
Directors' report (continued)
Review and results of operations (continued)
The performance of the Trust, as represented by the results of its operations, was as follows:
Operating profit/(loss) ($'000)
Distributions paid and payable ($'000)
Distributions (cents per unit)
Interests in the Trust
For the
period
22 May
2018 to
30 June
2019
$'000
1,568
342
0.0854
The movement in units on issue in the Trust during the period is disclosed in note 7 to the financial statements.
The value of the Trust's assets and liabilities is disclosed on the balance sheet and derived using the basis set
out in note 2 to the financial statements.
Significant changes in state of affairs
The Trust was constituted on 9 May 2018, registered on 22 May 2018, commenced operations on 8 May 2019
and its units commenced trading on the Australian Securities Exchange (ASX: PCI) on 14 May 2019.
Likely developments and expected results of operations
The Trust will continue to be managed in accordance with the investment objectives and guidelines as set out in
the governing documents of the Trust and in accordance with the provisions of the Trust's Constitution.
Matters subsequent to the end of the financial period
On 25 July 2019, the directors declared a distribution of 0.3997 cents per ordinary unit which amounted to
$1,598,668 and was paid on 8 August 2019.
No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may
significantly affect:
(i)
(ii)
(iii)
the operations of the Trust in future financial periods; or
the results of those operations in future financial periods; or
the state of affairs of the Trust in future financial periods.
Environmental regulation
The operations of the Trust are not subject to any particular or significant environmental regulations under a law
of the Commonwealth, or of a State or Territory.
Fees paid to and interests held in the Trust by the Responsible Entity or its associates
Fees paid to the Responsible Entity and its related parties out of Trust property during the period are disclosed in
note 14 to the financial statements.
-4-
Perpetual Credit Income Trust
Corporate Governance Statement
For the year ended 30 June 2019
Background
Perpetual Trust Services Limited ACN 000 142 049, AFS Licence No. 236648 (“Responsible Entity”) is the
responsible entity for the Perpetual Credit Income Trust (“Trust”), a registered managed investment scheme
that is listed on the Australian Securities Exchange (“ASX”).
The Responsible Entity is a wholly-owned subsidiary of Perpetual Limited (ASX:PPT) (“Perpetual”).
The Responsible Entity is reliant on Perpetual for access to adequate resources including directors,
management, staff, functional support (such as company secretarial, responsible managers, legal, compliance
and risk, finance) and financial resources. During the year and up to the date of this report, Perpetual has at all
times made such resources available to the Responsible Entity.
In operating the Trust the Responsible Entity’s overarching principle is to always act in good faith and in the
best interests of the Trust’s unitholders, in accordance with our fiduciary duty. The Responsible Entity’s duties
and obligations in relation to the Trust principally arise from: the Constitution of the Trust; the Compliance Plan
for the Trust; the Corporations Act 2001 (“Act”); the ASX Listing Rules; the Responsible Entity’s Australian
Financial Services License; relevant regulatory guidance; relevant contractual arrangements; and other
applicable laws and regulations.
Corporate Governance
At Perpetual, good corporate governance includes a genuine commitment to the ASX Corporate Governance
Council Principles and Recommendations (ASX Principles).
The Directors of the Responsible Entity are committed to implementing high standards of corporate governance
in operating the Trust and, to the extent applicable to registered schemes, are guided by the values and
principles set out in Perpetual’s Corporate Responsibility Statement and the ASX Corporate Governance
Council’s Corporate Governance Principles and Recommendations (“Principles”). The Responsible Entity
is pleased to advise that, to the extent the Principles are applicable to registered schemes; its practices are
largely consistent with the Principles.
As a leading independent responsible entity, the Responsible Entity operates a number of registered managed
investment schemes (“Schemes”). The Schemes include the Trust as well as other schemes that are listed
on the ASX. The Responsible Entity’s approach in relation to corporate governance in operating the Trust is
consistent with its approach in relation to the Schemes generally.
The Responsible Entity addresses each of the Principles that are applicable to externally managed listed
entities in relation to the Schemes, including the Trust, for the year ended 30 June 2019. This corporate
governance statement is current as at the date of the Trust’s financial report and has been approved by the
Responsible Entity Board.
Principle 1 – Lay solid foundations for management and oversight
The role of the Responsible Entity’s Board (“RE Board”) is generally to set objectives and goals for the
operation of the Responsible Entity and the Schemes, to oversee the Responsible Entity’s management,
to regularly review performance and to monitor the Responsible Entity’s affairs acting in the best interests
of the unitholders of each of the Schemes. The RE Board is accountable to the unitholders of each of the
Schemes, and is responsible for approving the Responsible Entity’s overall objectives and overseeing their
implementation in discharging their duties and obligations and operating the Schemes.
The role of the Responsible Entity’s management is to manage the business of the Responsible Entity in
operating the Schemes. The RE Board delegates to management all matters not reserved to the RE Board,
including the day-to-day management of the Responsible Entity and the operation of the Schemes. Directors,
management and staff are guided by Perpetual’s Code of Conduct which is designed to assist them in making
ethical business decisions.
-6-
Perpetual Credit Income Trust
Corporate Governance Statement
For the year ended 30 June 2019
(continued)
Principle 2 – Structure the board to add value
At present the RE Board consists of 4 executive directors and 2 alternate directors. The names of the current
Directors and year of appointment is provided below:
Richard McCarthy
Glenn Foster
Michael Vainauskas
Andrew McIver (Alternate)
Vicki Riggio
Phillip Blackmore (Alternate)
2018
2015
2015
2017
2018
2018
As the RE Board consists of only executive directors, a Compliance Committee is appointed in relation to each
of the Schemes (refer to Principle 7). The Committee has a majority of independent members and is chaired by
an independent member who is not the chair of the RE Board.
Principle 3 – Promote ethical and responsible decision-making
The Responsible Entity has a Code of Conduct and espoused Core Values and a further values framework
known as “The Way We Work” within which it carries on its business and deals with its stakeholders. These
apply to all directors and employees of Perpetual, and the Responsible Entity. The Code of Conduct and
Core Values, and supporting Risk framework supports all aspects of the way the Responsible Entity conducts
its business and is embedded into Perpetual’s performance management process. The Code of Conduct is
available on Perpetual’s website (www.perpetual.com.au).
Principle 4 – Safeguard integrity in financial reporting
The RE Board does not have an audit committee. Under delegation by the RE Board, the Responsible Entity
Services management and staff operate within a Compliance and Risk Management framework with specific
policies and procedures designed to ensure that the Trust’s
•
financial reports are true and fair and meet high standards of disclosure and audit integrity; and
• other reports released on ASX are materially accurate and balanced.
This includes policies relating to the preparation, review and sign off process required for the Trust’s financial
reports including the operation of an Internal Review Accounts Committee and RE Board approval process, the
engagement of the Trust independent auditors and the review and release of certain reports on the ASX.
The declarations under section 295A of the Corporations Act 2001 (the Act) provide formal statements to
the RE Board in relation to the Trust (refer to Principle 7). The declarations confirm the matters required by
the Act in connection with financial reporting. The Responsible Entity receives confirmations from the service
providers involved in financial reporting and management of the Trust, including the Investment Manager.
These confirmations together with the overarching Responsible Entity’s Risk and Compliance Framework which
includes the service provider oversight framework assist its staff in making the declarations provided under
section 295A of the Act.
The Responsible Entity manages the engagement and monitoring of independent ‘external’ auditors for the
Trust. The RE Board receives periodic reports from the external auditors in relation to financial reporting and
the compliance plan for the Trust.
-7-
Perpetual Credit Income Trust
Corporate Governance Statement
For the year ended 30 June 2019
(continued)
Principle 5 – Make timely and balanced disclosure
The Responsible Entity has a continuous disclosure policy to ensure compliance with the continuous
disclosure requirements of the Act and the ASX Listing Rules in relation to the Trust. The policy requires timely
disclosure of information to be reported to the Responsible Entity’s management and/or Directors to ensure
that, information that a reasonable person would expect to have a material effect on the unit price or would
influence an investment decision in relation to any of the Trust, is disclosed to the market. The Responsible
Entity’s employees assist management and/or the Directors in making disclosures to the ASX after appropriate
consultation. The Responsible Entity requires service providers, including the Investment Manager, to comply
with its policy in relation to continuous disclosure for the Trust.
Principle 6 – Respect the rights of unitholders
The Responsible Entity is committed to ensuring timely and accurate information about the Trust is available
to security holders via the Trust’s website. All ASX announcements are promptly posted on the Trust’s website:
https://www.perpetual.com.au/income/pci-investors/asx-announcements. The annual and half year results
financial statements and other communication materials are also published on the website.
In addition to the continuous disclosure obligations, the Responsible Entity receives and responds to formal
and informal communications from unitholders and convenes formal and informal meetings of unitholders as
requested or required. The Responsible Entity has an active program for effective communication with the
unitholders and other stakeholders in relation to Trust.
The Responsible Entity handles any complaints received from unitholders in accordance with Perpetual’s
Complaints Handling Policy. The Responsible Entity is a member of the Australian Financial Complaints
Authority (AFCA), an independent dispute resolution body, which is available to unitholders in the event that any
complaints cannot be satisfactorily resolved by the Responsible Entity.
Principle 7 – Recognise and manage risk
The RE values the importance of robust risk management systems and maintains a current risk register as
part of its formal risk management program. The RE has established a Compliance Committee, comprised of
Virginia Malley, Michelene Collopy (Chairperson) and Michael Vainauskas. The Compliance Committee meets
at least quarterly. In 2018/19 financial reporting period all five meetings were attended by all Compliance
Committee members.
The Compliance Committee Charter sets out its role and responsibilities, which is available on request. The
Compliance Committee is responsible for compliance matters regarding the RE’s Compliance Plan and
Constitution and the Corporations Act.
Perpetual’s Audit, Risk and Compliance Committee is responsible for oversight of the Perpetual’s risk
management and internal control systems. The Audit, Risk and Compliance Committee is comprised of Ian
Hammond, Philip Bullock, Nancy Fox and P Craig Ueland. The Audit, Risk and Compliance Committee terms
of reference sets out its role and responsibilities. This can be obtained on the Perpetual website. The majority
of the Compliance Committee and the Audit, Risk and Compliance Committee members are external members.
They are chaired by external members.
1. The RE manages the engagement and monitoring of independent external auditors for the Trust. The RE
board receives periodic reports in relation to financial reporting and the compliance plan audit outcomes for
the Trust.
Perpetual has a risk management framework in place which is reviewed annually. The declarations under
section 295A of the Act provide assurance regarding sound system of risk management and internal control
and that the system is operating effectively in all material respects in relation to financial reporting risks. The
RE also receives appropriate declarations from the service providers involved in financial reporting.
-8-
Perpetual Credit Income Trust
Corporate Governance Statement
For the year ended 30 June 2019
(continued)
Perpetual has an Internal Audit function which reports functionally to Perpetual Limited Audit Risk &
Compliance Committee (ARCC), and for administrative purposes, through the General Manager – Risk &
Internal Audit, and is independent from the external auditor. Perpetual Internal Audit establishes a risk based
audit plan each year that is approved formally by the ARCC, and executes internal audits of Perpetual Business
Units in accordance with the plan. The plan is re-assessed quarterly and reviewed to ensure that it is dynamic
and continues to address the key risks faced by the Group. Progress against the plan, changes to the plan, and
the results of audit activity are reported quarterly to the ARCC.
The Investment Manager incorporates ESG matters into its investment analysis and decision-making practices.
The Investment Manager‘s approach is to seek the best risk-adjusted investment returns over specified time
periods. This obligation is satisfied by focusing on both the quality and value of
possible investments. This investment philosophy recognises that while traditional financial measures are
an important consideration, extra-financial factors such as ESG matters can also influence investment
performance. Consistent with this philosophy, to the extent that information is available, the Investment
Manager takes into account ESG issues in investment analysis and decision making.
At this stage, the Investment Manager considers ESG matters primarily from a risk perspective. Analysis may
include:
• What ESG issues (risks) the investment is exposed to
• How material the ESG issues are, taking into account industry and individual issuer exposures
• What impact material ESG issues are likely to have on the value, earnings and future prospects of the
investment, and
• How well ESG issues are being managed, and therefore how likely the possible impacts are to occur.
Considering ESG factors in investment decision-making can have three possible outcomes:
1. The risks are too high compared to the likely reward and so the investment is not made or is fully or partly
sold.
2. The risks are significant, but the likely reward is sufficient compensation for the risk and so an investment is
made or is held.
3. The risks are low and so ESG factors are not a major consideration in making the investment decision.
Principle 8 – Remunerate fairly and responsibly
The fees and expenses which the RE is permitted to pay out of the assets of the Trust are set out in the Trust
constitution. The Trust financial statements provide details of all fees and expenses paid by the Trust during the
financial period.
-9-
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Perpetual Credit Income Trust
I declare that, to the best of my knowledge and belief, in relation to the audit of Perpetual Credit
Income Trust for the financial period ended 30 June 2019 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
KPM_INI_01
KPMG
Jessica Davis
Partner
Sydney
22 August 2019
- 10 -
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
Perpetual Credit Income Trust
Statement of comprehensive income
For the period 22 May 2018 to 30 June 2019
Statement of comprehensive income
Investment income
Distribution income
Interest income
Net gains/(losses) on financial instruments at fair value through profit or loss
Net foreign exchange gains/(losses)
Total net investment income/(loss)
Expenses
Responsible Entity's fees
Investment manager's fees
Other operating expenses
Total expenses
Profit/(loss)
Other comprehensive income
Total comprehensive income/(loss) for the period
Earnings per unit
Basic and diluted earnings per unit - cents per unit
Notes
3
4
5, 14
5
5
For the
period
22 May
2018 to
30 June
2019
$'000
519
1,203
487
(9)
2,200
20
469
143
632
1,568
-
1,568
8
0.39
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
-11-
Balance sheet
Assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Receivables
Total assets
Liabilities
Financial liabilities at fair value through profit or loss
Distributions payable
Payables for securities purchased
Payables
Total liabilities
Net assets attributable to unitholders - equity
Perpetual Credit Income Trust
Balance sheet
As at 30 June 2019
30 June
2019
$'000
149,358
297,029
839
447,226
692
342
4,526
440
6,000
441,226
Notes
13(b)
9
11
10
6
12
7
The above balance sheet should be read in conjunction with the accompanying notes.
-12-
Statement of changes in equity
Total equity at the beginning of the period
Comprehensive income for the period
Profit/(loss)
Total comprehensive income for the period
Transactions with unitholders
Capital raising from the Initial Public Offering (IPO)
Distributions to unitholders
Total transactions with unitholders
Total equity at the end of the period
Perpetual Credit Income Trust
Statement of changes in equity
For the period 22 May 2018 to 30 June 2019
Notes
7
For the
period
22 May
2018 to
30 June
2019
$'000
-
-
-
1,568
1,568
-
7
6, 7
7
440,000
(342)
439,658
-
-
441,226
The above statement of changes in equity should be read in conjunction with the accompanying notes.
-13-
Statement of cash flows
Cash flows from operating activities
Interest received
Investment manager's fees paid
Other operating expenses paid
Net cash inflow/(outflow) from operating activities
Cash flows from investing activities
Proceeds from sale of investments
Payments for purchase of investments
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Proceeds from the Initial Public Offering (IPO)
Net cash inflow/(outflow) from financing activities
Net increase/(decrease) in cash and cash equivalents
Perpetual Credit Income Trust
Statement of cash flows
For the period 22 May 2018 to 30 June 2019
Notes
13(a)
For the
period
22 May
2018 to
30 June
2019
$'000
927
(224)
(12)
691
4,269
(295,602)
(291,333)
440,000
440,000
149,358
Cash and cash equivalents at the end of the period
13(b)
149,358
The above statement of cash flows should be read in conjunction with the accompanying notes.
-14-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
1 General Information
The financial statements cover the Perpetual Credit Income Trust (the Trust) as an individual entity. The Trust
was constituted on 9 May 2018, registered with the Australian Securities and Investments Commission on 22
May 2018, commenced operations on 8 May 2019 and its units commenced trading on the Australian Securities
Exchange (ASX: PCI) on 14 May 2019. The Trust is domiciled in Australia and is a for-profit entity.
The Responsible Entity of the Trust is Perpetual Trust Services Limited (ACN 000 142 049, AFSL 236 648) (the
Responsible Entity). The Responsible Entity's registered office is Level 18, Angel Place, 123 Pitt Street, Sydney,
NSW 2000.
The Investment Manager of the Trust is Perpetual Investment Management Limited (AFSL 234 426).
The Trust's investment strategy is to provide investors with monthly income by investing in a diversified pool of
credit and fixed income assets.
The financial statements were authorised for issue by the directors on 22 August 2019. The directors of the
Responsible Entity have the power to amend and reissue the financial statements.
2 Summary of significant accounting policies
The principal accounting policies applied in the preparation of this financial report are set out below. These
policies have been consistently applied during the reporting period presented, unless otherwise stated.
(a) Basis of preparation
The financial report is a general purpose financial report which has been prepared in accordance with the
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001 in Australia.
The financial report is prepared on the basis of fair value measurement of assets and liabilities except where
otherwise stated.
Compliance with International Financial Reporting Standards
The financial report of the Trust also complies with International Financial Reporting Standards and
Interpretations issued by the International Accounting Standards Board.
Functional and presentation currency
The financial report is presented in Australian dollars, which is the Trust's functional currency.
Use of estimates
Management makes estimates and assumptions that affect the reported amounts in the financial statements.
These estimates and associated assumptions are continuously evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
For the majority of the Trust's financial instruments, quoted market prices are readily available. However, when
certain financial instruments are fairly valued using valuation techniques (for example, pricing models) observable
data is used to the extent practicable. Management may be required to make estimates which may be based on
assumptions and any changes in assumptions would affect the reported fair value of financial instruments.
AASB 9 requires the use of an expected credit loss (ECL) impairment model, which does not materially impact
the Trust (refer to note 2(f)).
-15-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
2 Summary of significant accounting policies (continued)
(b) New accounting standards and interpretations
New and amended accounting standards adopted by the Trust
The following Australian Accounting Standards have been adopted by the Trust for reporting period beginning 22
May 2018.
(i) AASB 9 Financial Instruments
AASB 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities.
It replaces the multiple classification and measurement models in AASB 139 with a new model that classifies
financial instruments based on the business model within which the financial instruments are managed, and
whether the contractual cash flows under the instrument solely represent the payment of principal and interest. It
also introduces revised rules around hedge accounting and impairment.
Under AASB 9, financial instruments are classified as:
• Amortised cost if the objective of the business model is to hold the financial instruments to collect contractual
cash flows only and the contractual cash flows under the instrument represent solely payments of principal and
interest (SPPI);
• Fair value through other comprehensive income if the objective of the business model is to hold the financial
instruments both to collect contractual cash flows from SPPI and for the purpose of sale; or
• All other financial instruments must be recognised at fair value through profit or loss. An entity may however, at
initial recognition, irrevocably designate a financial instrument as measured at fair value through profit or loss if
doing so eliminates or significantly reduces a measurement or recognition inconsistency.
Derivative and equity instruments are measured at fair value through profit or loss unless, for equity instruments
not held for trading, an irrevocable option is taken to measure at fair value through other comprehensive income.
A debt instrument is measured at amortised cost if the objective of the business model is to hold the financial
asset for the collection of the contractual cash flows and the contractual cash flows under the instrument
represent solely payments of principal and interest (SPPI). A debt instrument is measured at fair value through
other comprehensive income if the objective of the business model is to hold the financial asset both to collect
contractual cash flows from SPPI and to sell.
All other debt instruments must be recognised at fair value through profit or loss. An entity may however, at initial
recognition, irrevocably designate a financial asset as measured at fair value through profit or loss if doing so
eliminates or significantly reduces a measurement or recognition inconsistency.
(ii) AASB 15 Revenue from Contracts with Customers
AASB 15 establishes a single revenue recognition framework using a five-step model based on the transfer of
goods and services and the consideration expected to be received in return for that transfer. The standard was
applicable to the Trust from 22 May 2018.
The Trust’s main source of income is investment income, in the form of gains on financial instruments held at fair
value as well as interest and distributions income. All of these income types are outside the scope of the
standard. Accordingly, the new revenue recognition rules do not have a significant impact on the Trust's
accounting policies or the amounts recognised in the financial statements.
-16-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
2 Summary of significant accounting policies (continued)
(b) New accounting standards and interpretations (continued)
New accounting standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2019. Management has made an assessment and concluded that none of these are
expected to have a material impact on the financial statements.
(c) Financial instruments
(i) Classification
The Trust classifies its investments based on its business model for managing those financial assets and their
contractual cash flow characteristics. The Trust’s portfolio of financial assets is managed and its performance is
evaluated on a fair value basis in accordance with the Trust’s documented investment strategy. The Trust
evaluates the information about its investments on a fair value basis together with other related financial
information.
Derivatives and unlisted unit trusts are measured at fair value through profit or loss.
For debt securities, the contractual cash flows are solely payments of principal and interest, however, they are
neither held for collecting contractual cash flows nor held for collecting contractual cash flows and for sale. The
collection of contractual cash flows is only incidental to achieving the Trust’s business model’s objective.
Consequently, the debt securities are measured at fair value through profit or loss.
The Trust holds debt securities, unlisted unit trusts and derivatives, these securities are mandatorily classified as
fair value through profit or loss.
Derivative contracts that have a negative fair value are presented as financial liabilities at fair value through profit
or loss.
(ii) Recognition/derecognition
The Trust recognises financial assets and liabilities on the date it becomes party to the purchase contractual
agreement (trade date) and recognises changes in fair value of the financial assets or financial liabilities from this
date.
Investments are derecognised on the date the Trust becomes party to the sale contractual agreement (trade
date).
(iii) Measurement
At initial recognition, a financial asset or liability is measured at fair value. Transaction costs are expensed in
profit or loss as incurred. Subsequently all financial assets and liabilities are measured at fair value without any
deduction for estimated future selling cost. Gains and losses arising from changes in the fair value measurement
are included in profit or loss in the period in which they arise.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Further details of fair value measurement are disclosed in
note 16(d).
-17-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
2 Summary of significant accounting policies (continued)
(c) Financial instruments (continued)
(iv) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or
realise the asset and settle the liability simultaneously.
(d) Net assets attributable to unitholders
During the period, applications were received for the initial subscription offer.
The Trust is a closed-end vehicle and accordingly there are no redemptions by investors. Instead, while the Trust
is listed, unitholders who wish to exit their investment will be able to do so via the ASX.
Units in the Trust are listed on the ASX and traded by unitholders. The units can be traded on the ASX at any
time for cash based on the listed price. While the Trust is listed and liquidity is generally expected to exist in the
secondary market (ASX), there are no guarantees that an active trading market with sufficient liquidity will be
available.
The units issued by the Trust have been classified as equity as the Trust satisfies all criteria for the classification
of puttable financial instruments as equity under AASB 132 Financial Instruments: Presentation.
(e) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash at bank,
margin accounts, other short term and highly liquid financial assets with a maturity period of three months or less
from the date of acquisition that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Margin accounts comprise cash held as collateral for derivative transactions. The cash is held by the broker and
is only available to meet margin calls.
(f) Receivables
Receivables include accrued income and receivables for securities sold. Amounts are generally received within
30 days of being accrued for.
These amounts are recognised initially at fair value and subsequently measured at amortised cost. At each
reporting date, the Trust shall measure the loss allowance on receivables at an amount equal to the lifetime
expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date,
the credit risk has not increased significantly since initial recognition, the Trust shall measure the loss allowance
at an amount equal to 12-month expected credit losses. Significant financial difficulties of the counterparty,
probability that the counterparty will enter bankruptcy or financial reorganisation, and default in payments are all
considered indicators that a loss allowance may be required. If the credit risk increases to the point that it is
considered to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted
for the loss allowance.
The amount of the impairment loss is recognised in profit or loss within other operating expenses. When a trade
receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent
period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off
are credited against other operating expenses in profit or loss.
-18-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
2 Summary of significant accounting policies (continued)
(g) Payables
Payables include accrued expenses owing by the Trust which are unpaid at the end of the reporting date.
Amounts are generally paid within 30 days of being accrued for.
(h) Investment income
Interest income from financial assets at amortised cost is recognised using the effective interest method and
includes interest from cash and cash equivalents.
Interest from financial assets at fair value through profit or loss is determined based on the contractual coupon
interest rate and includes interest from debt securities. Other changes in fair value for such instruments are
recorded in accordance with the accounting policies described in note 2(c).
Distribution income from financial assets at fair value through profit or loss is recognised in profit or loss when the
Trust's right to receive payment is established.
(i) Expenses
All expenses, including Responsible Entity's fees, are recognised in profit or loss on an accruals basis.
(j)
Income tax
The Trust is not subject to income tax provided the taxable income of the Trust is attributed in full to its
unitholders each financial year either by way of cash or reinvestment. Unitholders are subject to income tax at
their own marginal tax rates on amounts attributable to them.
The benefits of foreign tax paid are passed on to unitholders, providing certain conditions are met.
(k) Distributions
Distributions are payable as set out in the Trust's Constitution. Such distributions are recognised as payable
when they are determined by the Responsible Entity of the Trust.
(l) Goods and Services Tax
The Goods and Services Tax (GST) is incurred on the cost of various services provided to the Trust by third
parties. The Trust qualifies for Reduced Input Tax Credit; hence expenses such as Responsible Entity's fees
have been recognised in profit or loss net of the amount of GST recoverable from the Australian Taxation Office.
Payables are stated with the amount of GST included. The net amount of GST recoverable is included in
receivables in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis.
(m) Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translations at year end exchange rates of monetary assets and liabilities denominated
in foreign currencies are recognised in profit or loss.
-19-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
2 Summary of significant accounting policies (continued)
(m) Foreign currency translation (continued)
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates
at the date when fair value was determined. Translation differences on assets and liabilities carried at fair value
are reported in profit or loss on a net basis within net gains/(losses) on financial instruments at fair value through
profit or loss.
(n) Comparatives
This is the first period of operations of the Trust and hence there are no prior period comparatives. There were no
transactions between the date of constitution and date of registration.
3 Interest income
Cash and cash equivalents
Debt securities
Total
For the
period
22 May
2018 to
30 June
2019
$'000
567
636
1,203
4 Net gains/(losses) on financial instruments at fair value through profit or loss
Net gains/(losses) arising from changes in the fair value measurement comprise:
For the
period
22 May
2018 to
30 June
2019
$'000
864
(377)
487
Net unrealised gains/(losses) on financial instruments at fair value through profit or loss
Net realised gains/(losses) on financial instruments at fair value through profit or loss
Net gains/(losses) on financial instruments at fair value through profit or loss
-20-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
5 Expenses
All expenses are recognised, net of the amount of Goods and Services Tax (GST) recoverable from the taxation
authority, in profit or loss on an accruals basis.
(a) Responsible Entity's fees
The Responsible Entity, Perpetual Trust Services Limited, is entitled to receive 0.03% - 0.05% per annum (net
RITC) of the Net Asset Value of the Trust and is also entitled to be paid remuneration for Additional Fund
Administration services in the manner and at the time as set out in Investment Management Agreement. The
Responsible Entity’s fees are calculated and accrued daily and paid monthly in arrears. Further details of the
Responsible Entity’s fees are disclosed in note 14.
(b) Investment manager's fees
The Investment Manager, Perpetual Investment Management Limited, receives management fees of 0.72% per
annum (net RITC) of the Net Asset Value of the Trust. In accordance with the PDS dated 8 March 2019, the Net
Asset Value of the trust means deducting from the total value of assets of the trust all liabilities, which includes
declared but unpaid distributions, calculated in accordance with the Responsible Entity’s Unit pricing and
Valuation Policy and Australian Accounting Standards (AAS). The management fees are calculated and accrued
daily and paid monthly in arrears.
Investment manager's fees
For the
period
22 May
2018 to
30 June
2019
$'000
469
The Manager is appointed for an initial term of ten years unless terminated earlier (Initial Term). The
management agreement will be automatically extended for a further five year term on the expiry of the Initial
Term (Extended Term) unless terminated earlier in accordance with its terms.
If the Management Agreement is terminated during the term, then in certain circumstances the Manager will be
entitled to a termination payment equal to the Management fee rate multiplied by the number of years in the Initial
Term or Extended Term and the value of the total Portfolio as at the termination date, reduced by one one
hundred and twentieth (1/120) for Initial Term or one sixtieth (1/60) for Extended Term for each whole calendar
month that has elapsed between the commencement date or the commencement of the Extended Term and the
termination date.
In addition, the Manager agreed to pay all of the costs incurred in raising capital under the Offer in accordance
with the PDS dated 8 March 2019. If the Management agreement is terminated during the Initial Term, then in
certain circumstances the Manager will be entitled to be reimbursed for these costs, reduced by one one hundred
and twentieth (1/120) for each whole calendar month that has elapsed between the commencement date and the
termination date.
-21-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
For the
period
22 May
2018 to
30 June
2019
$'000
32
51
33
12
15
143
For the
period
22 May
2018 to
30 June
2019
$
30,000
2,500
32,500
For the
period
22 May
2018 to
30 June
2019
$'000
For the
period
22 May
2018 to
30 June
2019
CPU
342
342
0.0854
0.09
5 Expenses (continued)
(c) Other operating expenses
Auditors’ remuneration
ASX fees
Registry services
Custody administration fees
Other expenses
Total other operating expenses
(d) Auditor's remuneration
Audit and review of financial report - KPMG
Audit and review of compliance plan - PwC
Total auditor's remuneration
Audit fees were paid or payable by the Trust.
6 Distributions to unitholders
The distributions for the period were as follows:
Distributions payable - June
-22-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
7 Net assets attributable to unitholders
Movements in the number of units and net assets attributable to unitholders during the period were as follows:
Net assets attributable to unitholders
Opening balance
Capital raising from the Initial Public Offering (IPO)
Distributions to unitholders
Profit/(loss)
Closing balance
For the
period
22 May
2018 to
30 June
2019
Units '000
For the
period
22 May
2018 to
30 June
2019
$'000
-
400,000
-
-
400,000
-
440,000
(342)
1,568
441,226
As stipulated within the Trust's Constitution, each unit represents a right to an individual unit in the Trust and
does not extend to a right to the underlying assets of the Trust. There are no separate classes of units and each
unit has the same right attaching to it as all other units of the Trust.
Capital risk management
The Trust considers its net assets attributable to unitholders as capital.
8 Earnings per unit
blank
blank
blank
Basic and diluted earnings per unit - cents per unit
blank
Weighted average number of units on issue used in the
calculation of basic and diluted earnings per unit
blank
blank
Earnings used in the calculation of basic and diluted earnings per unit
For the
period
22 May
2018 to
30 June
2019
blank
0.39
400,000,000
$'000
1,568
Basic and diluted earnings per unit is calculated by dividing the profit attributable to unitholders of the Trust by the
weighted average number of units on issue during the period.
-23-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
9 Financial assets at fair value through profit or loss
Mandatorily at fair value through profit or loss
Debt securities
Unlisted unit trusts
Total financial assets at fair value through profit or loss
10 Financial liabilities at fair value through profit or loss
Mandatorily at fair value through profit or loss
Futures
Swaps
Total financial liabilities at fair value through profit or loss
11 Receivables
Distributions receivable
Interest receivable
Other receivables
Total receivables
30 June
2019
$'000
247,317
49,712
297,029
30 June
2019
$'000
236
456
692
30 June
2019
$'000
519
276
44
839
-24-
12 Payables
Responsible Entity's fees payable
Investment manager's fees payable
Other operating expenses payable
Total payables
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
30 June
2019
$'000
21
280
139
440
13 Reconciliation of profit/(loss) to net cash inflow/(outflow) from operating activities
(a)Reconciliation of operating profit/(loss) to net
For the
period
22 May
2018 to
30 June
2019
$'000
1,568
(519)
(276)
(44)
440
(487)
9
691
148,263
1,095
149,358
(a) Reconciliation of profit/(loss) to net cash inflow/(outflow) from
operating activities
Profit/(loss)
(Increase)/decrease in distributions receivable
(Increase)/decrease in interest receivable
(Increase)/decrease in other receivables
Increase/(decrease) in payables
Net (gains)/losses on financial instruments at fair value through profit or loss
Net foreign exchange (gains)/losses
Net cash inflow/(outflow) from operating activities
(b)Components of cash and cash equivalents
(b) Components of cash and cash equivalents
Cash at the end of the period as shown in the statement of cash flows is reconciled to
the balance sheet as follows:
Cash at bank
Margin accounts
Total cash and cash equivalents
(c)Non-cash financing activities
-25-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
14 Related party transactions
Responsible Entity
The Responsible Entity of Perpetual Credit Income Trust is Perpetual Trust Services Limited (ACN 000 142 049,
AFSL 236 648), a wholly owned subsidiary of Perpetual Limited (ACN 000 431 827).
The Trust does not employ personnel in its own right. However, it is required to have an incorporated
Responsible Entity to manage the activities of the Trust and this is considered the key management personnel.
Key management personnel
(a) Directors
The following persons held office as directors of Perpetual Trust Services Limited during the period and up to the
date of this report:
Glenn Foster
Michael Vainauskas
Andrew Mclver (Alternate Director for Michael Vainauskas)
Vicki Riggio
Christopher Green (resigned 17 October 2018)
Gillian Larkins (Alternate Director for Glenn Foster) (resigned 12 October 2018)
Phillip Blackmore (Alternate Director for Christopher Green and Vicki Riggio) (appointed 6 July 2018)
Phillip Blackmore (Alternate Director for Christopher Green) (resigned 17 October 2018)
Richard McCarthy (appointed 17 October 2018)
Directors were in office for this entire period except where stated otherwise.
(b) Other key management personnel
There were no other persons with responsibility for planning, directing and controlling the activities of the Trust,
directly or indirectly, during or since the end of the financial period.
Key management personnel unitholdings
No key management personnel of the Responsible Entity held units in the Trust as at 30 June 2019.
Transactions with key management personnel
Key management personnel services are provided by Perpetual Trust Services Limited and included in the
Responsible Entity's fees. There is no separate charge for these services. There was no compensation paid
directly by the Trust to any of the key management personnel during the period.
The Trust has not made, guaranteed or secured, directly or indirectly, any loans to the key management
personnel or their personally related entities at any time during the reporting period.
Investment manager
The Investment Manager, Perpetual Investment Management Limited, is a related party to the Trust. In
accordance with AASB124 a member of the same group as the Responsible Entity who provides key
management personnel services is a related party.
-26-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
14 Related party transactions (continued)
Investment manager (continued)
Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive
investment manager's fees calculated by reference to the net asset value of the Trust. Further details of the
investment manager's fees are disclosed in note 5.
Responsible Entity's fees and other transactions
Under the terms of the Trust's Constitution, the Responsible Entity is entitled to receive Responsible Entity's fees
calculated by reference to the net asset value of the Trust.
The transactions during the period and amounts payable at the reporting date between the Trust and the
Responsible Entity were as follows:
Responsible Entity's fees paid and payable directly by the Trust
Fees payable to the Responsible Entity
Investments
For the
period
22 May
2018 to
30 June
2019
$
19,558
20,989
The Trust held investments in the following scheme which is also managed by the Responsible Entity or its
related parties:
For the period
22 May 2018 to
30 June 2019
Investments
Number of
units held
'000
Fair value
of
investments
$'000
Interest
held
%
Number of
units
acquired
'000
Number of
units
disposed
'000
Distributions
received/
receivable
$'000
Perpetual Loan Fund
47,854
49,712
49.8
47,854
-
519
15 Structured entities
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor
in deciding control and the relevant activities are directed by means of contractual arrangements.
The Trust considers all investments in unlisted unit trusts to be structured entities. The Trust invests in unlisted
unit trusts for the purpose of capital appreciation and earning investment income.
-27-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
15 Structured entities (continued)
The unlisted unit trusts are invested in accordance with the investment strategy by their respective investment
managers. The return of the unlisted unit trusts is exposed to the variability of the performance of their
investments. The unlisted unit trusts finance their operations by issuing redeemable units which are puttable at
the holder's option and entitle the holder to a proportional stake in the respective trusts' net assets and
distributions.
The Trust's exposure to structured entities at 30 June 2019 was $49,711,697.
The fair value of these entities is included in financial assets at fair value through profit or loss in the balance
sheet.
The Trust's maximum exposure to loss from its interests in the structured entities is equal to the total fair value of
its investments in these entities as there are no off balance sheet exposures relating to them. The Trust's
exposure to any risk from the structured entities will cease when these investments are disposed of.
The Trust does not have current commitments or intentions and contractual obligations to provide financial or
other support to the structured entities. There are no loans or advances currently made to these entities.
There are no significant restrictions on the ability of the structured entities to transfer funds to the Trust in the
form of cash distributions.
Unconsolidated subsidiaries
The Trust applies the investment entity exception to consolidation available under AASB 10 Consolidated
Financial Statements and measures its subsidiaries at fair value through profit or loss.
The following unconsolidated structured entities are considered to be the Trust's subsidiaries at the reporting
date:
Perpetual Loan Fund
16 Financial risk management
Fair value
30 June
2019
$'000
Ownership
interest
30 June
2019
%
49,712
49.8
The Trust's activities expose it to a variety of financial risks. The management of these risks is undertaken by the
Trust's Investment Manager who has been appointed by the Responsible Entity under an Investment
Management Agreement to manage the Trust's assets in accordance with the Investment Objective and Strategy.
The Responsible Entity has in place a framework which includes:
• The Investment Manager providing the Responsible Entity with regular reports on their compliance with the
Investment Management Agreement;
• Completion of regular reviews on the Service Provider which may include a review of the investment managers
risk management framework to manage the financial risks of the Trust; and
• Regular reporting on the liquidity of the Trust in accordance with the Trust's Liquidity Risk Management
Statement.
-28-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
16 Financial risk management (continued)
The Trust's Investment Manager has in place a framework to identify and manage the financial risks in
accordance with the investment objective and strategy. This includes an investment due diligence process and
on-going monitoring of the investments in the Trust. Specific controls the Investment Manager applies to manage
the financial risks are detailed under each risk specified below.
(a) Market risk
(i) Currency risk
Currency risk arises as the fair value or future cash flows of monetary securities denominated in foreign currency
will fluctuate due to changes in exchange rates. The currency risk relating to non-monetary assets and liabilities
is a component of price risk not currency risk. However, management monitors the exposures on all foreign
currency denominated assets and liabilities.
The Trust did not have any significant direct exposure to currency risk at the reporting date.
(ii)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Trust is exposed to cash flow interest rate risk on financial instruments
with floating interest rates. Financial instruments with fixed interest rates expose the Trust to fair value interest
rate risk.
The following table summarises the Trust’s exposure to interest rate risk:
30 June 2019
Financial assets
Cash and cash equivalents
Debt securities
Financial liabilities
Derivatives
Floating
interest
rate
$'000
Fixed
interest
rate
$'000
Non-interest
bearing
$'000
Total
$'000
149,358
137,963
-
109,354
-
(692)
-
-
-
149,358
247,317
(692)
The table presented in note 16(a)(iv) summarises sensitivity analysis to interest rate risk. This analysis assumes
that all other variables, in particular foreign currency exchange rates remain constant.
(iii) Price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices (other than those arising from interest rate risk or currency risk).
The Trust predominantly invests in debt securities. As a result, the price risk arising from the Trust's investments
is impacted by movements in interest rates and is reflected in note 16(a)(ii).
The fair value of the Trust's investments exposed to price risk was as follows:
Blank
Units in fixed income trust
a
-29-
30 June
2019
$'000
49,712
49,712
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
16 Financial risk management (continued)
(a) Market risk (continued)
(iii) Price risk (continued)
The table presented in note 16(a)(iv) summarises sensitivity analysis to price risk. This analysis assumes that all
other variables remain constant.
(iv) Sensitivity analysis
The following table summarises the sensitivity of the operating profit and net assets attributable to unitholders to
price risk. The reasonably possible movements in the risk variables have been determined based on
management’s best estimate, having regard to a number of factors, including historical correlation of the Trust's
investments with the relevant benchmark and market volatility. However, actual movements in the risk variables
may be greater or less than anticipated due to a number of factors, including unusually large market movements
resulting from changes in the performance of and/or correlation between the performance of the economies,
markets and securities in which the Trust invests. As a result, historic variations in risk variables should not be
used to predict future variations in the risk variables.
Sensitivity rates
+0.5%
-0.5%
+5%
-5%
blank
Interest rate risk
blank
Price risk
Units in fixed income trust
(b) Credit risk
Impact on operating
profit/net
assets attributable to
unitholders
30 June
2019
$'000
1,436
(1,436)
2,486
(2,486)
Credit risk is the risk that a counterparty will be unable to pay amounts when they fall due. The main
concentration of counterparty credit risk, to which the Trust is exposed to, arises predominantly from the Trust's
investments in debt securities. The Trust is also exposed to counterparty credit risk on derivative financial
instruments, cash and cash equivalents, and receivables for securities sold. The maximum exposure to credit risk
at the reporting date is the carrying amount of the financial assets. None of these assets are impaired nor past
due but not impaired as at the balance sheet date.
The Trust determines credit risk and measures expected credit losses for financial assets measured at amortised
cost using probability of default, exposure at default and loss given default. Management considers relevant,
historical analysis and forward looking information in determining any expected credit loss. At the reporting date,
all receivables and cash and cash equivalents are held with approved counterparties and are either callable on
demand or due within 30 days. Management consider the probability of default to be low, as a result, no loss
allowance has been recognised based on 12-month expected credit losses as any such impairment would be
wholly insignificant to the Trust.
(i) Debt securities
Investment management processes include the consideration of counterparty risk. The investment manager may
refer to the credit ratings issued by rating agencies to assess the creditworthiness of counterparties. The
investment manager consider (among other things) branding, stability and security marketability of counterparties
and consistently monitor exposure through electronic systems.
-30-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
16 Financial risk management (continued)
(b) Credit risk (continued)
(i) Debt securities (continued)
The Trust monitors the credit ratings of debt securities on a regular basis.
The table below sets out the analysis of debt securities by credit ratings as issued by Standard & Poor's:
30 June 2019
Debt securities
AAA to
AA-
$'000
A+ to
A-
$'000
19,962
19,962
31,094
31,094
BBB+ to
BBB-
$'000
105,322
105,322
BB+ to
B-
$'000
NON-
RATED
$'000
Total
$'000
10,054
10,054
80,885
80,885
247,317
247,317
Debt securities that are not rated by Standard & Poor's may be rated by other rating agencies.
(ii) Derivative financial instruments
The risk of counterparty default in a derivative transaction is minimised by predominantly using exchange traded
derivatives (except for currency hedging, contracts for differences, and occasionally other approved over the
counter instruments). The exchange traded derivatives are only executed and cleared through approved
members of the exchanges. For over the counter derivatives, minimum credit ratings apply for counterparties at
the time of entering into a contract and ISDA agreements are put in place with counterparties.
(iii) Cash and cash equivalents
The exposure to credit risk for cash and cash equivalents is low as all counterparties have a rating of A or higher
(as determined by Standard & Poor's).
(iv) Receivables for securities sold
All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of default is
considered low, as delivery of securities sold is only made once the broker has received payment from the
counterparty. Payments on securities acquired are only made after the broker has received the securities. The
trade will fail if either party fails to meet its obligations.
All transactions in unlisted unit trusts are settled/unitised when unit prices are issued. The risk of default is
considered low except when trading in a suspended unlisted unit trust.
(c) Liquidity risk
Liquidity risk is the risk that the Trust will not be able to meet its financial obligations as they fall due.
The Trust is a closed end vehicle and not exposed to any cash redemptions.
-31-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
16 Financial risk management (continued)
(c) Liquidity risk (continued)
The following table summarises the contractual maturities of financial liabilities, including interest payments
where applicable:
30 June 2019
Non-derivative financial liabilities
Distributions payable to unitholders
Payables for securities purchased
Payables
Total
Derivative financial liabilities
Futures
Swaps
Outflow
Inflow
Total
(d) Fair value measurement
Carrying
amount
$'000
At call
$'000
Contractual cash flows
less
than 6
months
$'000
6 - 12
months
$'000
more
than 12
months
$'000
342
4,526
440
5,308
236
456
-
-
692
-
-
-
-
-
-
-
-
-
342
4,526
440
5,308
-
-
-
-
-
-
-
-
-
-
443
(316)
127
-
-
7,211
(7,557)
(346)
-
-
10,789
(10,974)
(185)
The Trust classifies fair value measurement of its financial assets and liabilities using a fair value hierarchy model
that reflects the subjectivity of the inputs used in making the measurements. The fair value hierarchy has the
following levels:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
•
•
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
(level 3).
(i) Fair value in an active market (level 1)
The fair value of financial assets and liabilities traded in active markets is based on quoted market prices at the
end of the reporting period without any deduction for estimated future selling costs. For the majority of exchange
traded financial assets and liabilities, information provided by the independent pricing services is relied upon for
valuation.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices
represent actual and regularly occurring market transactions on an arm's length basis. An active market is a
market in which transactions for the financial asset or liability take place with sufficient frequency and volume to
provide pricing information on an ongoing basis. Exchange traded derivatives are valued at the last traded price.
-32-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
16 Financial risk management (continued)
(d) Fair value measurement (continued)
(ii) Fair value in an inactive or unquoted market (level 2 and level 3)
The fair value of financial assets and liabilities that are not traded in an active market is determined by using
valuation techniques. These include the use of recent arm's length transactions, reference to current fair value of
a substantially similar other instrument, discounted cash flow techniques, option pricing models or any other
valuation techniques that provide a reliable estimate of prices obtained in actual market transactions.
Some of the inputs to a valuation model may not be market observable and are therefore estimated based on
assumptions. The output of a model is always an estimate or approximation of a value that cannot be determined
with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions held.
Where discounted cash flow techniques are used, estimated future cash flows are based on management's best
estimates and the discount rate used is a market rate at the end of the reporting period applicable for an
instrument with similar terms and conditions. For other pricing models, inputs are based on market data at the
end of the reporting period. Quoted market prices or dealer quotes for similar instruments are used for debt
securities held.
The fair value of derivatives that are not exchange traded is estimated at the amount that would be received or
paid to terminate the contract at the end of the reporting period taking into account current market conditions
(volatility and appropriate yield curve) and the current creditworthiness of the counterparties.
Investments in unlisted unit trusts are recorded at the redemption value per unit as reported by the investment
managers of such trusts.
The Scheme's level 3 asset include Perpetual Loan Fund. This asset is valued at the price provided by the
investment manager without any adjustment.
The following tables present the Trust's financial assets and liabilities (by class) measured at fair value according
to the fair value hierarchy:
30 June 2019
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Financial assets mandatorily at fair value
through profit or loss
Debt securities
Unlisted unit trusts
Total
Financial liabilities mandatorily at fair value
through profit or loss
Derivatives
Futures
Swap
Total
2,305
-
2,305
245,012
-
245,012
-
49,712
49,712
247,317
49,712
297,029
236
-
236
-
456
456
-
-
-
236
456
692
-33-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
16 Financial risk management (continued)
(d) Fair value measurement (continued)
Transfers between levels
The Trust's policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the
reporting period.
There were no transfers between levels for the period ended 30 June 2019.
Fair value measurements using significant unobservable inputs (level 3)
The following table presents the movement in level 3 instruments, by class of financial instruments, for the period
ended 30 June 2019:
For the period
22 May 2018 to
30 June 2019
Opening balance
Purchases
Gains/(losses) recognised in profit or loss
Closing balance
Total unrealised gains/(losses) for the period included in the statement of
comprehensive income for financial assets and liabilities held at the end of the
period
Unlisted
unit trusts
$'000
Total
$'000
-
49,887
(175)
49,712
-
49,887
(175)
49,712
(175)
(175)
17 Derivative financial instruments
A derivative is a financial instrument or other contract which is settled at a future date and whose value changes
in response to the change in a specified interest rate, financial instrument price, commodity price, foreign
currency exchange rates, index of prices or rates, credit rating or credit index or other variables.
Derivative financial instruments require no initial net investment or an initial net investment that is smaller than
would be required for other types of contracts that would be expected to have a similar response to changes in
market factors.
Derivative transactions include many different instruments such as foreign exchange forward contracts, futures
and options. Derivatives are considered to be part of the investment process and the use of derivatives is an
essential part of the Trust's portfolio management. Derivatives are not managed in isolation. Consequently, the
use of derivatives is multifaceted and includes:
•
•
•
hedging to protect an asset or liability of the Trust against a fluctuation in market values or to reduce
volatility;
a substitution for trading of physical securities; and
adjusting asset exposures within the parameters set in the investment strategy, and adjusting the duration of
fixed interest portfolios or the weighted average maturity of cash portfolios.
While derivatives are used for trading purposes, they are not used to gear (leverage) a portfolio. Gearing a
portfolio would occur if the level of exposure to the markets exceeds the underlying value of the Trust.
-34-
Perpetual Credit Income Trust
Notes to the financial statements
For the period 22 May 2018 to 30 June 2019
(continued)
17 Derivative financial instruments (continued)
The Trust held the following derivative instruments during the period:
(a) Futures
Futures are contractual obligations to buy or sell financial instruments on a future date at a specified price
established in an organised market. The futures contracts are collateralised by cash or marketable securities.
Changes in futures contracts' values are usually settled net daily with the exchange.
(b) Swaps
Swaps are derivative instruments in which two counterparties agree to exchange one stream of cash flow against
another stream.
Cross currency swaps are valued at fair value which is based on the estimated amount the Trust would pay or
receive to terminate the currency derivatives at the balance sheet date, taking into account current interest rates,
foreign exchange rates, volatility and the current creditworthiness of the currency derivatives counterparties.
Cross currency swaps are used to hedge the Trust’s interest rate and foreign currency exposure. However,
hedge accounting has not been applied.
Risk exposures and fair value measurements
Information about the Trust's exposure to financial risks and the methods and assumptions used in determining
fair values is provided in note 16. The maximum exposure to credit risk at the end of the reporting period is the
carrying amount of the derivative financial instruments.
18 Segment information
The Trust is organised into one main operating segment with only one key function, being the investment of funds
predominantly in Australia together with opportunistic investments globally in accordance with its investment
objective and guidelines.
19 Events occurring after the reporting period
On 25 July 2019, the directors declared a distribution of 0.3997 cents per ordinary unit which amounted to
$1,598,668 and was paid on 8 August 2019.
No other events have occurred since the reporting date which would have impact on the financial position of the
Trust disclosed in the balance sheet as at 30 June 2019 or on the results and cash flows of the Trust for the
period ended on that date.
20 Contingent assets, liabilities and commitments
There were no outstanding contingent assets, liabilities or commitments as at 30 June 2019.
-35-
Independent Auditor’s Report
To the unitholders of Perpetual Credit Income Trust
Opinion
We have audited the Financial Report of
Perpetual Credit Income Trust (the Trust).
The Financial Report comprises:
• Balance sheet as at 30 June 2019
• Statement of comprehensive income, Statement of
changes in equity, and Statement of cash flows for
the period, being 22 May 2018 to 30 June 2019
• Notes including a summary of significant accounting
policies
• Directors’ Declaration.
In our opinion, the accompanying Financial
Report of the Trust is in accordance with
the Corporations Act 2001, including:
• giving a true and fair view of the
Trust’s financial position as at 30 June
2019 and of its financial performance
for the period, being 22 May 2018 to
30 June 2019; and
•
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Trust in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in
Australia. We have fulfilled our other ethical responsibilities in accordance with the Code.
- 37 -
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
This matter was addressed in the context of our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on this matter.
Valuation and existence of financial assets ($297m) and financial liabilities ($0.7m) at fair value
through profit or loss
Refer to Notes 9 and 10 to the Financial Report
The key audit matter
How the matter was addressed in our audit
Financial assets and liabilities at fair value
through profit or loss (FVTPL) are comprised of
investments in:
• Unlisted unit trusts (Perpetual Loan Fund);
• Debt securities, including corporate bonds,
international bonds and fixed rate notes;
and
• Derivative liabilities, including futures and
swaps.
Valuation and existence of financial assets and
financial liabilities at FVTPL is a key audit matter
due to the:
• size of the Trust’s investments which are
significant to its financial position. The
investment in Perpetual Loan Fund and the
investments in debt securities comprise
11% and 55%, respectively, of the Trust’s
total assets at year end;
• Trust outsources certain financial reporting
processes and controls in relation to the
valuation and existence of these assets and
liabilities to external service organisations.
These service organisations include the
custodian, the fund administrator, which
provide administrative support to the Trust,
and the investment manager. This requires
us to understand processes, assess
controls and the flow of information
between these service organisations,
relevant to the Trust’s financial reporting;
and
•
importance of the performance of Perpetual
Our procedures included:
• We assessed the appropriateness of the
accounting policies applied by the Trust,
including those relevant to the fair value
hierarchy of investments against the
requirements of the accounting standards.
• We obtained and read the Trust’s custodian’s
and fund administrator’s GS007 (Guidance
Statement 007 Audit Implications of the Use
of Service Organisations for Investment
Management Services) assurance reports to
understand the custodian’s and fund
administrator’s processes and controls to
record and value the Trust’s financial assets
and liabilities.
• We obtained and read the Trust’s investment
manager’s GS007 assurance report to
understand the investment manager’s
processes and controls to maintain and
provide transactional information to the Trust’s
custodian.
• We assessed the reputation, professional
competence and independence of the auditors
of the GS007 assurance reports.
• We checked the valuation of the unit holdings
in Perpetual Loan Fund, as recorded in the
Trust’s Financial Report, to the audited
financial report of Perpetual Loan Fund.
• With the involvement of our valuation
specialists, we reperformed the valuation of
the underlying assets of Perpetual Loan Fund
using independently sourced market data for
- 38 -
Loan Fund and debt securities in driving the
Trust’s investment income and capital
performance, as reported in the Financial
Report.
observable inputs, such as, published credit
spreads and margins. We compared these
valuations to the fair value of the underlying
assets.
As a result, this was the area with greatest
effect on our overall audit strategy and
allocation of senior resources in planning and
performing our audit.
In assessing this Key Audit Matter, we involved
our valuation specialists, who understand the
Trust’s investment profile and business and the
economic environment it operates in.
• We assessed the valuation of the unit price of
Perpetual Loan Fund against the net assets
per unit held of the Perpetual Loan Fund.
• With the involvement of our valuation
specialists, we assessed the fair value of debt
securities by re-performing the valuation by
comparing observable inputs, including broker-
quoted prices to independently sourced
market data providers.
• With the involvement of our valuation
specialists, we independently recalculated the
valuation of derivative liabilities using
independently sourced market data for
observable inputs, such as interest rates and
foreign exchange rates. We compared this
valuation to the fair value of derivative
liabilities recognised by the Trust.
• We checked the ownership and quantity of
investments to external custody reports as at
30 June 2019.
• We assessed quantitative and qualitative
disclosures, including those relevant to the fair
value hierarchy of investments, against the
requirements of the accounting standards.
Other Information
Other Information is financial and non-financial information in Perpetual Credit Income Trust’s annual
reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors
of Perpetual Trust Services Limited (the Responsible Entity) are responsible for the Other
Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we consider whether the Other Information is materially inconsistent with
the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
- 39 -
Responsibilities of the Directors for the Financial Report
The Directors of Perpetual Trust Services Limited (the Responsible Entity) are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001
•
•
implementing necessary internal control to enable the preparation of a Financial Report that gives
a true and fair view and is free from material misstatement, whether due to fraud or error
assessing the Trust’s ability to continue as a going concern and whether the use of the going
concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to
liquidate the Trust or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf This description forms part of our Auditor’s
Report.
KPMG
Jessica Davis
Partner
Sydney
22 August 2019
- 40 -
Perpetual Credit Income Trust
ARSN 626 053 496
ASX additional information
Additional information required by the Australian Stock Exchange Limited Listing Rules and not disclosed
elsewhere in this report is as follows. The information is current as at 31 July 2019 unless otherwise indicated.
A. Distribution of units
Analysis of numbers of unitholders by size of holding:
Size of holding
BLANK
1 - 1000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Number
of holders
Total units
Percentage
38
581
856
5,933
569
7,977
20,294
1,977,517
7,273,905
226,047,431
164,689,828
400,008,975
0.01%
0.49%
1.82%
56.51%
41.17%
100.00%
Blank
The number of unitholders holding less than a marketable parcel is 14 and they hold 1,285 units.
B. Twenty largest unitholders
The names of the twenty largest holders of quoted units are listed below:
Unitholder
BLANK
HSBC Custody Nominees (Australia) Limited
123
Navigator Australia Ltd
123
Sargon Ct Pty Ltd
BLANK
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd DRP
1
B Plus Enterprises Pty Ltd
1
Netwealth Investments Limited
1
Beluga Blue Pty Ltd
1
The Corporation of The Trustees of The Order of The Sisters of Mercy
In QLD
1
Geat Incorporated
1
Asgard Capital Management Ltd <3522261 Johnson Fam S/F A/C>
1
The Art Gallery Board
1
Asgard Capital Management Ltd <3549820 Jean Haynes A/C>
123
Milpera Pty Ltd
1
The Law Society of SA Legal Practitioners Fidelity Fund
1
The Corp of The Trustees of The Order of The Sisters of The
Perpetual Adoration of The Blessed Sacrament
1
Aurisch Investments Pty Ltd
1
1
-41-
Number of units
Percentage
16,731,136
7,768,481
4,200,000
4,097,560
2,000,000
1,668,952
1,363,636
1,363,636
1,359,372
1,273,000
1,090,909
954,500
909,091
909,090
909,090
909,090
4.18%
1.94%
1.05%
1.02%
0.50%
0.42%
0.34%
0.34%
0.34%
0.32%
0.27%
0.24%
0.23%
0.23%
0.23%
0.23%
(b) Twenty largest unitholders (continued)
Unitholder
BLANK
Mr John William Downer
1
Karang Pty Ltd
1
James O'Neil Mayne Estate
1
Stewartville Pty Ltd
1
Asgard Capital Management Ltd <1134494 Edvir King S/F A/C>
1
Netwealth Investments Limited
1
Don Kyatt Spare Parts (West Melb) Pty Ltd< Frank Hutchinson Fam
A/C>
1
The Corporation Of The Trustees Of The Order Of The Sisters Of
Mercy In Queensland
1
Avmit Superannuation Fund Pty Ltd
C. Substantial unitholders
There are no substantial unitholders.
D. Voting rights
Number of units
Percentage
900,000
900,000
900,000
868,707
754,500
717,006
681,820
681,818
642,610
0.23%
0.23%
0.23%
0.22%
0.19%
0.18%
0.17%
0.17%
0.16%
Voting rights which may attach to or be imposed on any unit or class of units is as follows:
(a) on a show of hands each unitholder has one vote; and
(b) on a poll, each unitholder has one vote for each dollar of the value of the total interests they have in Trust.
E.
Investment transactions
The total number of contract notes that were issued for transactions in investments during the financial period
was 139. Each investment transaction may involve multiple contract notes. The total brokerage paid on these
contract notes was $5,064.
F. Stock exchange listing
The Trust's units are listed on the Australian Securities Exchange and are traded under the code PCI.
G. Unquoted units
There are no unquoted units on issue.
H. Voluntary escrow
There are no restricted units in the Trust or units subject to voluntary escrow.
I. On-market buy back
There is no current on-market buy back.
J. Registered office of the Responsible Entity
Perpetual Trust Services Limited
Level 18, Angel Place
123 Pitt Street
Sydney NSW 2000
-42-
K. Unit registry
Automic Pty Limited
Level 5
126 Phillip Street
Sydney NSW 2000
L. Responsible Entity companies secretaries
Eleanor Padman
Sylvie Majella Dimarco
Gananatha Nayanajith Minithantri
-43-
DIRECTORY
RESPONSIBLE ENTITY
Perpetual Trust Services Limited
Level 18, Angel Place
123 Pitt Street
Sydney NSW 2000
MANAGER
Perpetual Investment Management Limited
Level 18, Angel Place
123 Pitt Street
Sydney NSW 2000
UNIT REGISTRY
Automic Pty Limited
Level 5
126 Phillip Street
Sydney NSW 2000
Phone: 1300 778 468
WEBSITE
www.perpetualincome.com.au
AUSTRALIAN SECURITIES EXCHANGE CODE
ASX:PCI
9
1
8
0
_
8
6
9
2