Do you have a view on the MCP Master Income Trust and whether it has a place in a long term balanced portfolio?
A: Thanks for the question.
I would describe an investment in this style of Fund as being part of my “risky fixed interest allocation” and yes, it has a place in a balanced portfolio. Because it is higher risk/higher return – this means (potentially) a relatively small allocation.
In terms of the specific fund (MCP Masters Income Fund):
- Targeting a return of RBA cash rate plus 3.25%, paid monthly
- Material exposure to real estate and development loans
- Management fees are ok; and
- The Manager has a good track record.
As with any investment of this nature, please read the PDS thoroughly before making any commitment to invest.
Regards
