SQN Asset Finance Income has published its first set of figures since listing in the middle of last year. by the end of December 2014 the fund had invested about half the £150m it raised in July 2014 in 22 investments. The net asset value at the end of the year was 98.92p and the company had paid a dividend of 0.4p. Since the end of December, the fund has invested more money – a further £13m in January, and has declared a second interim dividend of 0.92p and its first monthly dividend ( the pattern from hereon in) of 0.3p.
They say that it has taken longer to invest the cash than they originally envisaged – in part because they had more of it having raised the maximum target in their IPO and in part because some of the investments they have made to date are drawing down finance slowly they say they are compensated for this by higher returns on these assets.
SQN say they don’t foresee any negative impact from falling oil prices on the portfolio primarily because all of the underlying assets and equipment are on fixed contracts and lower energy costs generally contribute to better operating margins for the end-users.
The portfolio is pretty diversified with first lien financings of unleveraged marine vessels (four Jumbo Class Multipurpose Vessels and two Supramax Dry Bulk Carriers) , a senior interest in a eight helicopters (leased to three US public companies, four of the helicopters are sub-leased to the US navy), ground support equipment (de-icers, pallet loaders, tow tractors, refuelers, and aircraft air conditioning and heating units let to established enterprises in the U.S. and throughout Europe), manufacturing equipment ranging from machine tools and automotive manufacturing equipment to large scale industrial presses used to puncture steel, modular accommodations designed as portable hotel bedroom units used for major events and festivals across the U.K., Ireland, and the Isle of Man, industrial farming equipment, and investments in anaerobic digestion plants and facilities at farms throughout the U.K. they say they think these latter assets are amongst their best investments.
SQN passes half way mark on investing IPO proceeds