7th Apr 2015 10:40
LONDON (Alliance News) - London-listed feeder fund Fair Oaks Income Fund Ltd, which invests in US and European collaterised loan obligations, Tuesday said it expects its FOIF LP master fund's portfolio composition to be informed by a superior outlook for the US than for Europe.
"The board expects the master fund?s portfolio to continue to be biased towards US bank loan issuers based on the stronger fundamental outlook in the US versus Europe and the more attractive returns it expects from US CLOs," Chairman Claudio Albanese said in a statement.
Albanese said that Fair Oaks Income Fund GP LP, the general partner of the master fund, will continue to "actively explore opportunities" to act as an originator for European transactions, but doesn't expect the terms of the deals available at present to support a "a significant allocation" to those investments.
According to investment adviser Fair Oaks Capital Ltd, US CLO new issue volume reached an "all-time high" of USD124 billion in 2014, 40% more than in 2007, while European CLO new issue volume was EUR14 billion, 55% below that of 2007. It expects new issuance in the US to fall in 2015 to USD80 billion to USD100 billion, citing "accelerated activity" in 2014.
Fair Oaks reported a net asset value total return of 4.2% between March 7, 2014 and the end of 2014, equivalent to 7.7% on an annual basis.
The fund was admitted to trading on the London Stock Exchange's Specialist Fund Market in June 2014.
Fair Oaks shares were down 0.2% at USD1.04 on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Fair Oaks Inc21