Fair Oaks Income has announced results for the period ended 31 December 2014. The company listed in June 2014. Over the period from launch to the end of the year, the NAV return was 4.2% and the share price return 4.3%. They paid a first dividend of 4.25 cents per share and have switched since to paying monthly dividends of 0.7 cents for 11 months of the year plus a final dividend yet to be announced.
As at 31 December 2014, the Company had invested in nine investments managed by six different loan managers and decided to redeem all of the notes of T2 CLO, generating an expected annualised total return from its investment of 19.0%.
Returns were well ahead of the CS USD Loan Index and CS US High Yield Index, both of which generated negative returns for shareholders over the period as investors took money out of US high yield loans.
Fair Oaks generates positive returns despite poor backdrop