25th Sep 2018 12:33
LONDON (Alliance News) - Livermore Investments Group Ltd said Tuesday its net asset value increased in the first half of the year due to a strong performance from its portfolio of collateralized loan obligations.
Livermore invests primarily in fixed income instruments, and in particular collateralized loan obligations, or CLOs. It recorded a net asset value per share of USD1.00 on June 30, up from USD0.96 the year before, as the value of its CLO income note assets increased to USD108.5 million from USD94.2 million.
Overall, the company's total assets increased to USD181.4 million from USD171.5 million.
Livermore's interest and distribution income increased to USD15.7 million from USD12.3 million, but this was offset by a USD7.7 million loss on investments compared to a USD2.6 million loss the year before. Overall pretax profit dropped to USD6.4 million from USD8.4 million.
The investor paid a USD0.04576 per share interim dividend in February and said its 2018 dividend policy is yet to be decided, but will be based upon "profitability, liquidity requirements, portfolio performance, market conditions, and the share price of the company relative to its net asset value".
In terms of outlook, Livermore was cautious, noting increased tension in the US and in Europe.
"Although management maintains a positive view on the CLO portfolio, mid-long term performance may be negatively impacted by a strong pull back in the US or European economy or geopolitical events that could result in a spike in defaults," said the company.
"Despite positive developments in the overall health of the US economy, we acknowledge the continued below trend growth globally as well as headwinds relating to the political turmoil, trade tensions, monetary tightening in advanced economies, and geopolitical risks," Livermore added.
Shares in Livermore were untraded at 42.50 pence on Tuesday.
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