Key facts about NB Global Corporate Income Trust (ASX: $NBI) and its recent announcement

NB Global Corporate Income Trust (ASX: $NBI) has announced monthly distributions for February 2024. The Fund made a distribution for the month of January 2024 and has announced the details of its distribution for the month of February 2024. The January 2024 monthly distribution had a record date of 2 February 2024 and a payment date of 14 February 2024, with an amount distributed of 1.2179 cents per unit. The February 2024 monthly distribution will have a record date of 4 March 2024 and a payment date of 14 March 2024, with the Fund intending to distribute 1.2179 cents per unit. Additionally, the Fund is set to transition to an unlisted open-ended unit trust effective 15 May 2024, with the introduction of a 'Transition Fee' for withdrawals within the first 12 months after delisting, allowing for daily liquidity subject to gating restrictions. The Fund's Investment Manager, investment objective, and strategy will remain unchanged, with no alteration in the fee rates payable to the Responsible Entity or the Investment Manager.

Executive commentary on the recent announcement

The Fund's performance for the half-year ended 31 December 2023 was 6.71% (net of fees), with the ICE BofAML Global High Yield Index returning 6.65% for the same period. The Directors announced an increase in the Fund's monthly distribution to 1.2179 cents per unit, effective 1 March 2023, resulting in an annualized distribution rate of approximately 10.22% of the Fund's ASX unit price and 8.85% of its net tangible assets ('NTA') per unit, as at 1 March 2023. The higher distribution rate is expected to continue until 30 June 2024, at which point the distribution rate will be reviewed and may be revised. The Fund's delisting from the Official List of the ASX under Listing Rule 17.11, effective 15 May 2024, will mark its transition to an unlisted open-ended unit trust, accompanied by the introduction of a 'Transition Fee' for withdrawals within the first 12 months after delisting, allowing for daily liquidity subject to gating restrictions. The Fund's Investment Manager, investment objective, and strategy will remain unchanged, with no alteration in the fee rates payable to the Responsible Entity or the Investment Manager.

Summary of the recent announcement and outlook

NB Global Corporate Income Trust (ASX: $NBI) has announced monthly distributions for February 2024, with plans to transition to an unlisted open-ended unit trust effective 15 May 2024, accompanied by the introduction of a 'Transition Fee' for withdrawals within the first 12 months after delisting, allowing for daily liquidity subject to gating restrictions. The Fund's Investment Manager, investment objective, and strategy will remain unchanged, with no alteration in the fee rates payable to the Responsible Entity or the Investment Manager. The Fund's performance for the half-year ended 31 December 2023 was 6.71% (net of fees), with the Directors expecting the higher distribution rate to continue until 30 June 2024, at which point the distribution rate will be reviewed and may be revised.