16th Aug 2018 11:52
LONDON (Alliance News) - NB Global Floating Rate Income Fund Ltd Thursday said it was "satisfied" with its first half performance despite mixed returns from its net asset value, as Chairman William Frewen announced he will step down.
London-listed NB Global Floating Rate invests about 85% of its portfolio in dollar denominated assets, with about 13% invested in euro denominated assets and about 2.5% in sterling denominated assets.
The company does not currently expect volatility in the foreign exchange markets to impact materially on its net asset value.
The FTSE 250-listed investment company's sterling share class net asset value decreased 13% to USD1.10 billion from USD1.27 billion at the end of the previous half but was broadly flat in dollar class at USD43.0 million from USD42.8 million. The company has far more sterling class shares than dollar class shares.
Net asset value per share decreased 1% in sterling class to GBP0.96 from GBP0.97 but, again, was flat in dollar class at USD0.99.
In the sterling class, the company's NAV per share total return was 1.1%, down from 2.6%, and in the dollar shares the total return was 1.5%, down from 3.6% in the previous half.
NB Global Floating Rate's total assets decreased in the half to USD1.35 billion from USD1.41 billion at the end of the last half.
The fund's net investment income dropped to USD23.68 billion in the first half of 2018 from USD44.46 billion in the second half of 2017.
NB Global swing to a large total net unrealised depreciation of USD123.01 billion from a USD13.32 billion appreciation in the immediately previous half.
The fund declared an interim dividend for the quarter ended June of GBP0.01 and USD0.01, and will be paid on August 24, up from GBP0.009 and USD0.008.
Chairman William Frewen will be stepping down from his role September 30 and will be replaced by Rupert Dorey.
Dorey has over 30 year experience in financial markets and joined the NB Global board in 2014. He worked at Credit Suisse First Boston for 17 years, establishing the investment bank's high yield debt distribution business in Europe and was head of UK credit & rates sales, according to NB Global Floating Rate.
Looking ahead, the investment company has a "positive" outlook for the loan market due to continued economic growth in the US and three or four interest rate hikes expected to be made by the US Federal Reserve in the next 12 months.
NB Global still believes that loans remain "compelling given the combination of attractive income, short duration and low volatility".
Sterling shares in NB Global Floating Rate were trading flat Thursday at 93.12 pence each.
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