20th Sep 2019 17:16
(Alliance News) - Blackstone/GSO Loan Financing Ltd on Friday said its net asset value total return rose in the first half of 2019 through a combination of dividend income and positive portfolio movement.
For the six months ended June 30, its NAV total return per ordinary share was 15%, well above the 1.0% return the year before. This consisted of 5.6% of dividend income plus 9.7% of positive net portfolio movement.
The company invests in floating rate senior secured loans and bonds and its NAV per share as at June 30 was EUR0.8798, up from EUR0.8065 on December 31 but below the EUR0.8970 NAV the year before.
For its C shares, which did not exist in 2018, the NAV total return per C share was 5.4% for the period, standing at EUR0.5738 on June 30. This included 6.0% of dividend income and a negative portfolio movement of 0.7%.
The interim dividend per share per ordinary share was maintained at EUR0.050, while a maiden C share dividend of EUR0.05642 per share was also declared.
Chair Charlotte Valeur said: "Looking ahead to the remainder of 2019, there continues to be a myriad of factors including weakening global macro data, escalating trade war tensions and the impact of Brexit that may affect investor sentiment within the global credit markets. Central banks in the US, Europe, Japan, China and elsewhere are preparing to flood the markets with liquidity again. With a potential new round of quantitative easing on the horizon, investors can again expect asset buy-backs to create liquidity allowing portfolios in receipt of new cash to rebalance.
"The board remains constructive on credit in 2019 and continue to believe that floating rate senior loans offer a compelling risk-reward opportunity. This is further supported by our view that the seniority of loans in the corporate structure offers defensive positioning unique to the asset class and that loans remain a well suited component of portfolios in a late cycle environment," Valeur added.
Ordinary Blackstone/GSO shares closed up 1.7% at 73.50 pence in London on Friday. C shares closed down 1.0% at EUR0.50.
Related Shares:
Blackstone Loan