CVC Credit Partners reports an increase in its NAVs from €1.0247 to €1.0257 for its Euro share class and 102.87p to 103.52p for its Sterling share class over the course of 2015. The share prices of the two share classes fell by 2.9% and 4.0% respectively. Dividends totalling 5 cents / 5p were also paid.
The statement says returns on the Euro and Sterling share classes for the year were +5.1% and +5.6% respectively, deriving from a combination of yield flow from the core portion of the portfolio and good performance from the credit opportunities assets. Limited exposure to US high yield (approximately 8% of the Investment Vehicle portfolio at the year-end) and lack of exposure to energy sector names meant that recent sharp falls in the market prices of many energy credits, particularly in the US, had no material effect on the portfolio, which continues to be focussed on European credits.
They also say they are closely watching macro-economic developments, but as yet have seen no deterioration in the overall credit quality of the portfolio, which continues to perform strongly. They see the current market price weakness in high yield markets as presenting an opportunity to acquire chosen assets at attractive prices nad have the cash to do so (cash was 16% of NAV at the year end).
CCPE / CCPG : CVC Credit Partners not seeing deterioration of credit quality