13th Dec 2018 10:17
LONDON (Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Thursday posted a slight rise in its net asset value per share for the first half of its financial year.
The firm, which invests in economic infrastructure debt, said its net asset value per share stood at 101.86 pence on September 30, up marginally from 101.32p at the end of March.
During the six months to September 30, the firm paid dividends of 3p per share, resulting in a 3.5% total return and on track for its 6p payout target.
"This performance is predominantly the result of three factors: the portfolio consists of stable, cash generative assets which generate an annual return of over 8%; costs and expenses are moderate with an ongoing charges ratio of just over 1%; growing fee income resultant from originated investments; and positive market movements on many of the company's investments," the fund said.
Since its initial public offering in March 2015, the company's initial run rate - including dividends paid - was 6.4%, just short of its target of between 7% and 8%. This was attributed to "significant cash drag" in the first eight months of its life.
Sequoia Economic Infrastructure Chairman Robert Jennings said: "We remain confident in the investment adviser's ability to grow the diversified portfolio and source high quality, stable, cash generative economic infrastructure debt investment opportunities that will enable us to maintain portfolio yield at 8% or higher and an annual dividend of 6p per share."
Shares in Sequoia Economic Infrastructure were up 0.5% at 109.52 pence on Thursday.
Related Shares:
Sequoia Economic Infrastructure Fund