22nd Sep 2016 13:45
LONDON (Alliance News) - Debt investment company CVC Credit Partners European Opps Ltd said Thursday that its first half returns were hit by difficult trading conditions at the beginning of the year and a Brexit influence downturn.
CVC Credit Partners reported a total return on net asset value of 1.9% on its Euro shares and 2.2% on its sterling shares. The Credit Suisse European HY Index returned 3.48% and the Credit Suisse European Leveraged Loan Index returned 2.28% during the same period.
CVC's net asset value per share stood at EUR1.02 and GBP1.03 at June 30, down from EUR1.03 and GBP1.04 at the end of December 2015.
The investment company said it saw negative mark-to-market movement in its sterling denominated assets after Brexit, although it said the losses had been recouped after the end of the period.
CVC, which specialises in sub-investment grade debt instruments, said it has looked to balance its portfolio between consistent yield investments and allocating funds to its Credit Opportunities portfolio where it searches for excess yield.
CVC said that it intends to commence payment of dividends to shareholders on a quarterly basis from the end of the third quarter, although this will not affect the annual dividend yield of around 5%.
"Going into H2 2016, the Investment Vehicle Manager continues to focus on maintaining a low NAV volatility in challenging markets, while seeking to maintain asset allocations in the Credit Opportunities and Special Situations segment of the portfolio" said CVC.
Shares in CVC Credit Partners were down 0.5% at 101.01p Thursday.
By Adam Clark; [email protected]
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