4th Mar 2020 13:03
(Alliance News) - Tufton Oceanic Assets Ltd said Wednesday its investment manager is pleased with the company's portfolio despite the share price movements of shipping companies.
"The investment manager is pleased that its strategy of portfolio diversification and strong charter coverage has insulated SHIP from the recent market volatility caused primarily by covid-19," the maritime investor said.
As of February 29, Tufton Oceanic's NAV per share stood at USD0.976, versus USD0.992 at December 31, a 1.6% decrease.
Tufton said: "Year to date, fair value losses in containerships and bulkers have been largely offset by fair value gains in tankers. The fair value decrease in the portfolio of USD0.020 per share was more than offset by operating profit of USD0.021 per share over the period.
SHIP's dividend for the fourth quarter of USD0.0175 per share was paid out on February 21 resulting in a small estimated decrease in NAV."
The fund noted its average charter length of its portfolio is three years - in line with its investment objective - which Tufton said minimises its spot market exposure and portfolio volatility.
"Vessels which have charters expiring in the next six months represent only c14% of NAV," Tufton said.
The fund continued: "Including the newly acquired product tanker, the investment manager recently fixed two tankers in the portfolio on time charters for a minimum of three years to a major commodity trading company at mid-teen yields. The investment manager also recently extended the employment of one containership (Kale) for 7 to 12 months, albeit at a lower yield than previously, without any void period between charters despite the vessel being positioned in Asia."
Tufton said its investment manager continues to monitor the situation, but is "confident" its strategy will "continue to result in low volatility of cash flow and NAV".
Shares in Tufton Oceanic Assets were untraded in London on Wednesday but last closed at USD1.05 each.
By Paul McGowan; [email protected]
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