Acencia Debt Strategies says its net asset value, adjusted for dividends, increased by 4.9% over the course of 2014 and its share price grew by 8.0%. They are paying a dividend of 1.95p for the period.
Notable investments include the Lehman estate (which is gradually working its way through liquidation) – they say the process is slow and litigious (three court dates are planned for 2015) but the position generated a good return in 2014. They also have exposure to Argentine debt where they held out against the attempts at restructuring these bonds in 2005 and 2010 – they are hoping that the forthcoming election in Argentina might result in a government more sympathetic to their cause. The Indiana Toll Road Concession Company went bankrupt in June last year – they are optimistic of a “very positive outcome” for creditors.
New opportunities include the bankruptcy of Caesars Entertainment Corporation, Puerto Rican municipal bonds and positions in Italian and Greek corporate debt. Changes to CLO rules seem to be triggering sales of these assets below normal valuations. The collapse in the oil price is creating new opportunities in distressed bonds in the energy sector. M&A activity picked up in 2014 and this helped improve returns from Event Driven strategies.
ACD : Acencia says managers seeing many attractive opportunities