14th Mar 2019 11:04
LONDON (Alliance News) - SQN Secured Income Fund PLC on Thursday reported a decline in net asset value in the first half of its financial year, a period regarded as "challenging" for equities.
As at December 31, net asset value was GBP51.5 million, or 97.64 pence per share, down from GBP51.9 million or 98.45p per share on the same date the year before.
The fund's share price at the end of December was 92.25p, reflecting a discount to net asset value of 5.5%, widened from 4.9% the prior year.
Shares in the investment company were broadly flat on Thursday at 92.20 pence, having dipped marginally further since the end of the first half.
SQN Secured said despite the net asset value decline, the fund's performance remained steady in a backdrop of volatility, as many leading equity indices fell despite continued positive growth in developed markets.
This was attributed to what SQN described as the "uncorrelated" nature of the assets targeted by it, and the security associated with loans underwritten keeping a strong foundation.
For the first half period, SQN Secured Income declared a dividend of 3.50 pence per share, up from 3.15p the year before.
"The company is now at a pivotal time in its history, having experienced a turbulent start, it has been refocused, de-risked and now warrants a reassessment of its potential for investors as an attractive component of a balanced portfolio in need of regular income and uncorrelated returns," said Chair Ken Hillen.
"I look forward to seeing the discount to NAV narrow to a point where we are able to implement a capital raising, to allow the Manager to deploy more money into this underserved sector of the market," Hillen added.
Related Shares:
SSIF.L