27th Sep 2019 11:47
(Alliance News) - CVC Credit Partners European Opportunities Ltd said Friday its net asset value in both sterling and the euro declined over the first half of 2019.
As at June 30, the investment company's net asset value per sterling share dipped to GBP1.0715, compared to GBP1.0762 at the end of December.
Meanwhile, CVC Credit's NAV per euro share at the end of June also dropped to EUR1.0278 from EUR1.0404, as at December 31.
The company attributed the net asset value dip to its investment focus on the senior, secured floating rate sector of high-yield markets, as opposed to high yield fixed income markets, which performed "exceptionally strongly" in the period.
For the six month period, CVC Credit's net asset value total return for the sterling class was 2.1% and 1.45 for the euro shares, both underperforming against the Credit Suisse Western European High Yield index, which returned 7.7%.
Portfolio-wise, the company's Core income segment - 55% of CVC Credit's portfolio - delivered a 2.1% gross return to the portfolio's performance, while the Credit Opportunities segment - which makes up 45% of the portfolio - made a 0.2% gross return.
Looking ahead, CVC Credit Partners said that the UK's upcoming departure from the EU would pose a "relatively low risk" to the company's performance, due to its low exposure to UK issuers, that will be the most affected.
CVC Credit Partners' sterling shares were marginally lower at 100.00 pence, while its euro share were untraded on Friday, last quoted at EUR0.98 in London.
By Dayo Laniyan; [email protected]
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