28th Feb 2020 11:40
(Alliance News) - Tetragon Financial Group Ltd on Friday reported a rise in net assets, with growth seen across its portfolio.
At December 31, the closed-ended investment company's net asset value per share stood at USD25.88 compared to USD23.70 at the same point the year prior, which represents a 9.2% rise.
Tetragon's fully diluted NAV per share saw a 10% rise in 2019 to USD24.76 compared to USD22.48 at the end of 2018.
The company's net assets increased 9.1% in the same period to USD2.39 billion from USD2.19 billion.
Tetragon declared a final dividend of USD0.1875, taking its total dividend for 2019 to USD0.74 - which is 2.8% higher than the USD0.72 distributed in 2018.
The investment firm's NAV total return in 2019 was 13.6%. Tetragon noted the MSCI ACWII Index added 27.3% and the FTSE All-Share Total Return was 19.1% in the same period.
In a statement, Tetragon said: "All of the portfolio's asset classes and investment strategies produced performance gains for the year with the exception of the 'other equities' allocation. Over 40% of the portfolio's gains were generated within TFG Asset Management, driven primarily by Equitix.
"The company's allocation to private equity and venture capital also delivered strong returns, generating over 30% of the company's gains. Remaining gains were broadbased with returns generated across the portfolio's investments in event-driven equities, convertible bonds, bank loans and real estate."
Looking ahead, Tetragon said financial markets appear to be fully priced, but still sees opportunity.
"Although markets may be fair to fully priced relative to 'cheap' money, we believe that most capital has been deployed passively into the most liquid assets and that there are still high levels of dispersion in less-liquid names. These investments appear less expensive than normal and can provide opportunities for Tetragon's investment manager," Tetragon said.
Shares in Tetragon Financial were down 1.4% in London on Friday morning at 902.00 pence each.
By Paul McGowan; [email protected]
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