30th Aug 2018 16:50
LONDON (Alliance News) - Third Point Offshore Investors Ltd on Thursday reported a mixed performance in the first-half between its US dollar and sterling share classes.
In the six months ended June, net asset value of Third Point's US shares fell to USD19.58 from USD20.25 at the end of 2017, while net asset value of its sterling shares decreased to GBP18.42 from GDP19.21.
NAV total return for sterling class shares came in negative 0.1% while NAV total return for dollar shares was positive 0.7%.
The company said its NAV total return includes dividends paid in the period ending June 30. Which was USD0.81 and GBP0.77, paid in February.
The investment trust said the "drift" between the share class performance was "largely attributable" to the cost of foreign exchange hedging in the sterling share class.
Third Point said its performance in the first-half was "slightly positive" created by a "somewhat volatile path".
The company saw equities gains in its core positions of healthcare and technology, media & telecommunications - partially offset by losses in consumer and its hedge portfolio.
The company expects these losses to turn around in the second half of the year.
The investment trust has elected to stop dividend payments, following a final dividend payment in February, and "adopt a more traditional share repurchase and cancellation practice".
Third Point said Director Keith Dorrian will not seek re-election at the company's next annual general meeting in 2019. The company said it is due to requirements of its recent premium listing.
Looking ahead, Third Point sees several positive characteristics in the broader global economic environment and believe the risk of a recession in the near-term is low.
As a result, the company plans to remain "actively engaged" with its core equity investments and "anticipates positive portfolio developments" in the coming months.
The company believes equity markets will continue to appreciate but at a slower pace than in 2017.
Chairman Marc Antoine Autheman said: "The board and investment manager have been focused on the persistent discount of the share price to net asset value. As a result, we have announced a series of actions intended to better reflect the strong risk-adjusted performance of the master fund in the share price of the company. The board believes that these steps and Third Point's transfer to a premium listing will serve to improve liquidity for all shareholders and moderate the discount. We are fully committed to ensuring that the company is best-positioned to deliver long-term value for all shareholders."
Shares in Third Point Offshore Investors closed down 0.8% Thursday at 1,220.00 pence each. Its US dollar shares closed down 0.7% on the London Stock Exchange at USD15.77 each.
Related Shares:
Third Poi. $