Fair Oaks generates small loss with no defaults in 2015

Fair Oaks Income Fund generated a total NAV return of -1.5% over the course of 2015 despite the weakness suffered by the market in the last quarter of 2015. The total return based on share price was 4.7% and the company’s ordinary shares ended the year trading at a 9.7% premium to NAV. The shares outperformed the US bank loan and high yield indices in the period.

Fair Oaks paid eleven monthly dividends of 0.7 US cents per ordinary shares and declared a final dividend of 2.226 US cents per ordinary share for December, or a total of 9.926 US cents per ordinary share for the year.

The Master Fund cumulative default rate as at 31 December 2015 was zero (0.03% as at the end of January 2016) vs. a lagging twelve-month issuer-weighted default rate for the US loan market of 1.19% as at end of December 2015 (1.50% as at end of January 2016). Exposure to energy and metals/mining issuers was limited to 2.1% and 0.6% of the portfolio respectively, as at 31 December 2015. The average bid price for loans in the Company’s portfolios was 95.33c significantly above the 91.43c average for the Credit Suisse leveraged loan index at the end of December.

FAIR : Fair Oaks generates small loss with no defaults in 2015