30th Aug 2018 18:04
LONDON (Alliance News) - Carador Income Fund PLC on Thursday said its net asset value per share declined in the first half of 2018.
In the six months ended June, Carador's NAV per share was USD0.72, down 4.2% from USD0.75 at the end of 2017.
The company said it paid 2017 final dividend of USD0.037 per share in the period, which partially explains the drop.
The investment fund's net asset value decreased in the period to USD286.7 million from USD299.3 million as at the end of 2017 - leading to a total return of 0.7%.
Carador's US dollar shares stood at USD0.67 at the end of the period, representing a 6.5% discount to the net asset value. Shares on the day Thursday closed down 1.1% at USD0.66 each.
The company declared an interim dividend of USD0.033, down from USD0.045 the previous year.
The collateralised loan obligations market - which make up Carador's portfolio - was robust in the first-half with US issuance reaching USD69.1 billion, up from USD52.5 billion the year before.
Collateralised loan obligations are debt securities backed by a diversified pool of underlying assets.
Looking ahead, Carador believes the company's portfolio is well placed to benefit from "varying credit cycles and environments".
The company expects central banks to "unwind" their quantitative easing programmes.
And, as the low rate environment draws to a close, collateralised loan obligations will provide investors a "unique opportunity to obtain yield in a low-yielding world while at the same time position them to take advantage of inevitable rate rises in the future".
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