M&G Credit Income Investment Trust increased its exposure to private assets during the first half of 2026, as tight public credit spreads prompted the manager to look for more opportunities in private credit.

The investment trust deployed approximately £15m into private credit opportunities during the six months to 30 June, while its funded private asset allocation rose to 52.44 per cent from 46.42 per cent at the end of 2025.

M&G said the investment manager had “rotated meaningfully out of public credit and into private credit” during the period, realising capital gains while improving the portfolio yield.

The manager said public credit spreads remained close to historically tight levels and did not adequately compensate for prevailing macroeconomic, geopolitical and policy risks.

M&G Credit Income delivered a net asset value total return of 2.36 per cent over the six months, compared with a 3.82 per cent return from its SONIA plus 4 per cent benchmark.

“The portfolio remained defensively positioned against a backdrop of tight credit spreads and heightened geopolitical uncertainty, and the Investment Manager continued to identify selective opportunities across public and private credit markets,” said chairman David Simpson.

The trust said it intends to maintain a selective approach to capital deployment, focusing on investments offering resilient income and defensible cash flows.

It added that access to M&G’s public and private credit capabilities, alongside an undrawn £40m revolving credit facility and around £40m held in high-quality asset-backed securities funds, gives it capacity to take advantage of future market dislocations.

Read more: Moody’s: Insurers set to boost private credit allocations