During the six month period ended 30 June 2015 Carador Income Fund generated a total net asset value return of 4.58% including distributions. The Company started the year with a NAV per US Dollar share of US$0.8993 and ended the first half at US$0.8891, a -1.13% decline in the NAV per share, although the Company also paid a total of US$0.0500 per share in dividends over the period.
The Company’s shares closed the first half of 2015 at US$0.8700, a -2.15% discount to the NAV at 30 June 2015.
In January 2015, based on market conditions, the Board reiterated a target dividend of US$0.10 per US Dollar share distributed evenly in four quarterly payments.
They say the cashflows received by the Company increased throughout the first half of the year since many of the post-crisis Income Note investments commenced distributions. The dividends were covered 1.3x by cashflows.
Carador Income Fund added 7 investments to the portfolio for a total market value of US$66.7 million and sold 9 investments for a total market value of US$59.4 million. The Investment Manager believes that the portfolio rotation from pre-financial crisis CLOs to post-financial crisis deals is almost complete. As at 30 June 2015, the portfolio NAV consisted of 65.67% of Income Notes of which 10.55% were in pre-financial crisis deals.
CIFU: Carador’s portfolio now mostly CLOs from after the crisis