VPC Speciality Lending declared cumulative dividends of 4.79 pence per ordinary share and 1.07 pence per C share, and generated a total NAV per share return of 5.80% over the period from its incorporation on 12 January 2015, through its launch on 17 March 2015 and ending on 31 December 2015 on its ordinary shares and 1.78% on the C shares.
The ordinary shares gradually traded to a premium, reaching a peak of 104.5 pence by the end of July 2015. Despite the credit performance of the underlying loans continuing to meet expectations, both the ordinary shares and C shares traded down during the latter part of the trading period, in part they say, owing to greater market volatility combined with some negative sentiment regarding the sector. Following the C share conversion in March, the trading performance of the ordinary shares has improved to some extent. The Board will continue to monitor the situation closely and will consider the potential for introducing share buy-backs if the company’s share price rating does not improve materially further in the near term.
The company’s investments are diversified across 21 Platforms originating consumer and small business loans. Furthermore, these Platforms have divergent lending strategies and are spread across the globe, including the US, UK, Europe and Australia. Existing Platform investments made by the Investment Manager enabled the company to substantially invest the initial proceeds within four months of the IPO. The Investment Manager added new Platforms during the period, which has helped the company invest 76% of the subsequent C share issue as at 31 December 2015. The company has equity exposure to 14 Platforms through equity securities or convertible notes, which the Investment Manager believes has the potential to generate significant capital growth for shareholders. The company continues to expand new Platform opportunities, to develop further portfolio diversification by type and geography and thereby strengthen the company’s strategic objectives.
VSL : VPC Speciality Lending would consider share buy backs