M&G Credit Income Investment Trust plc Quarterly Review

M&G CREDIT INCOME INVESTMENT TRUST PLC

(the “Company”)

LEI: 549300E9W63X1E5A3N24

Quarterly Review

The Company announces that its quarterly review as at 30 June 2026 is now available, a summary of which is provided below. The full quarterly review is available on the Company’s website at:

https://www.mandg.com/dam/investments/common/gb/en/documents/funds-literature/credit-income-investment-trust/mandg_credit-income-investment-trust_quarterly-review_gb_eng.pdf

Market Review

The second quarter was shaped by shifting monetary policy expectations, geopolitical developments and continued investor appetite for risk assets, particularly where earnings resilience and AI-related investment themes supported sentiment. Fixed income markets remained volatile, although risk appetite improved from the weakness seen in March as investors looked through near-term geopolitical noise and refocused on corporate fundamentals.

Developments in the Middle East remained the main influence on markets. A dramatic spike in oil prices reignited concerns about supply-driven inflation before sentiment improved as immediate disruption risks eased following a negotiated pause in military operations. Regional conditions were mixed: the US economy remained comparatively resilient, supported by firm labour market data and corporate earnings, while Europe and the UK faced weaker growth and uneven inflation pressures. UK politics also remained in focus, with headline noise ahead of the Prime Minister’s resignation in June adding to bond market sensitivity around fiscal discipline and defence funding pressures. The ECB raised its deposit rate by 25bps to 2.25%, becoming the first major developed market central bank to step away from the recent easing cycle.

Credit markets remained resilient despite the unsettled macroeconomic backdrop. Spreads tightened as investor demand stayed strong and primary supply was well absorbed. High yield performed well, supported by improving sentiment and lower oil prices later in the period, while sterling investment grade issuance also picked up. However, valuations remained historically tight, offering limited compensation for the macroeconomic, geopolitical and policy risks still present.

Manager Commentary

During the second quarter of 2026, the Company delivered a NAV total return of +1.95%, compared with +1.88% for the benchmark. Outperformance was supported by income generation, trading gains and the positive impact of credit spread tightening across parts of the portfolio.

Portfolio activity remained disciplined in a market where public credit spreads still appear expensive in aggregate. We continued to identify selective relative value opportunities, particularly in new issues and areas where fundamental credit analysis suggested risk was being mispriced, but remained cautious about adding broad market exposure at current spread levels.

Public market purchases focused on high yield and investment grade opportunities where compensation appeared attractive relative to the underlying credit risk. This included small positions totalling approximately £1.9 million across high yield issues from TDC, SoftBank Corp, Ineos Finance, AMS-Osram and the Co-operative Group. We also purchased £2 million of a lower mezzanine tranche in a public commercial mortgage-backed security (CMBS) issued by SAGE, an affordable and social housing provider, rated A by S&P and returning SONIA +275bps, which we believe offered compelling relative value.

Private market deployment was also meaningful, reflecting the Company’s ability to access differentiated opportunities across M&G’s broader private credit platform. In total, we deployed just over £9 million across a diverse range of private credit sectors and asset types, including a secondary market purchase of debt linked to one of Europe’s largest independent bulk-terminal operators; investments in first loss and mezzanine tranches of two regulatory capital transactions, referencing corporate and commercial real estate loan portfolios in one case and SME loan portfolios in the other; a senior real estate loan refinancing a prime London office asset; and debt secured against future receivables linked to an Italian road project.

Funding for new private and public market acquisitions was largely sourced from the sale of public investment grade corporate bonds. This enabled the Company to realise gains on positions that had benefited from significant spread tightening since purchase, including holdings in BP, HSBC, Barclays, Svenska, Swedbank, Logicor, AA and others.

Outlook

Although markets recovered during the quarter, the macroeconomic backdrop remains finely balanced. The fragile interim peace framework agreed between the US and Iran has already been broken, adding upward pressure on energy prices and renewing concerns about a potential re-acceleration in inflation. Global growth appears resilient but is moderating, leaving policymakers to balance price stability against the risk of placing further pressure on already fragile economies, particularly in the UK and Europe.

Credit markets have absorbed recent volatility well, but valuations remain tight by historical standards. Strong technical conditions, including healthy investor demand and oversubscribed primary markets, should not be confused with an improved underlying risk-reward trade-off. At current spread levels, we do not believe investors are being fully compensated for potential outcomes over the coming quarters, including weaker growth, persistent inflation or a re-escalation of geopolitical risks.

Against this backdrop, we believe a disciplined, relative-value-focused approach remains appropriate. In public markets, we are prepared to participate selectively where we identify attractive compensation for credit risk, but do not believe this is an environment in which investors should add risk indiscriminately. Instead, we continue to prioritise assets offering resilient income and more defensible cash flows. With public credit spreads historically tight, we favour increasing exposure to private assets where relative valuations remain more compelling and the illiquidity premium provides additional compensation versus comparable public credit opportunities.

The Company remains well positioned in this environment, in our view. The portfolio continues to benefit from a diversified allocation across public and private credit, the flexibility to adjust exposure across these areas of the market as relative value changes, and access to M&G’s broad credit research and origination platform. We remain patient in deploying capital while continuing to identify opportunities that can support the Company’s income objective without compromising credit discipline. Should volatility increase and spreads widen more meaningfully, we believe the Company is well placed to add risk at more attractive entry points.

MUFG Corporate Governance Limited

Company Secretary

4 August 2026

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The content of the Company’s web-pages and the content of any website or pages which may be accessed through hyperlinks on the Company’s web-pages, other than the content of the Update referred to above, is neither incorporated into nor forms part of the above announcement.

For further information in relation to the Company please visit: https://www.mandg.com/investments/private-investor/en-gb/investing-with-mandg/investment-options/mandg-credit-income-investment-trust